| Provision | House Budget
Reconciliation Bill
H.R. 2015
Note: In the House, the Ways and Means Committee and the Education and the Workforce Committee share jurisdiction for welfare-to-work programs. Each Committee's version of the $3 billion welfare-to-work program was contained in the House Budget reconciliation bill.)
(Passed in the House, 6/25/97)
| Senate Budget Reconciliation Bill
S. 947
(Passed in the Senate, 6/25/97)
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| I. $3 billion Welfare-to-Work Block Grant
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| | House Ways and Means Recommendations
| House Education and the Workforce Recommendations
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| Availability of funds | Entitlement funds available are $.75 billion for FY98, $1.25 billion for FY99, and $1.0 billion for FY2000. One percent is reserved for grants to Indian tribes each fiscal year. Competitive grants are awarded in FY98 and FY2000, although approved projects can receive funds from the Secretary every year and have 3 years to spend obligated funds. Funds not expended within 3 years must be remitted to the Secretary. The Secretary determines the amount of the competitive grant.
| Entitlement funds available are $.75 billion for FY98, $1.25 billion for FY99, and $1.0 billion for FY2000. One percent is reserved for grants to Indian tribes each fiscal year. Obligated funds must be spent within three years. Funds not expended within 3 years must be remitted to the Secretary.
| Entitlement funds available are $.75 billion for FY98, $1.25 billion for FY99, and $1.0 billion for FY2000. Competitive grants are awarded in FY98 and FY2000. One percent is reserved for grants to Indian tribes each fiscal year. Obligated funds must be spent within three years.
$100 million set-aside from FY99 allocation to add to High Performance Bonus fund in FY2002 to be awarded to states most successful in increasing participant earnings.
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| Grant allotment and distribution of funds (Authorized for fiscal years 1998, 1999 and 2000)
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- 50 percent of the annual allocation distributed to states through a formula based on poverty, unemployment and number of TANF recipients. 85 percent of the state allocation is passed on to Private Industry Councils (PICs) through a formula heavily weighted toward areas with a poverty rate above 5 percent. 15 percent may be distributed by Governors to projects designed to help long-term recipients enter the workforce. Any amounts designated to PICs which total less than $100,000 in a fiscal year will be rolled back into the governor's discretionary fund.
- 50 percent of the annual allocation distributed on a competitive basis to PICs or political subdivisions. 65 percent of the allocation targeted to the top 100 cities with the highest poverty populations; 25 percent to rural areas; 10 percent discretionary.
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- 95 percent of the annual allocation distributed to states through a formula based on poverty and number of TANF recipients. 85 percent of the state allocation is distributed to PICs through a formula heavily weighted toward areas with a poverty rate above 5 percent. 15 percent may be distributed by Governors to projects designed to help long-term recipients enter the workforce. Any amounts designated to PICs which total less than $100,000 in a fiscal year can be rolled back into the governor's discretionary fund.
- 5 percent of the annual allocation distributed to PICs and political subdivisions for demonstration projects.
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- 75 percent of the annual allocation distributed to states through a formula based on poverty, unemployment, and TANF recipients. Assures a minimum allotment of .5 percent of the funding for any given fiscal year to an individual state. 85 percent of the allocation must be distributed through a formula heavily weighted toward areas with a poverty rate above 5 percent to political subdivisions in which the poverty and unemployment rates are above the state average. 15 percent may be distributed by Governors to projects designed to help long-term recipients enter the workforce. Any amounts designated for political subdivisions which total less than $100,000 in a fiscal year will be rolled back into the governor's discretionary fund.
- 25 percent of the annual allocation distributed on a competitive basis to political subdivisions (CDAs, CDCs or other non-profits) in FY 1998 and 2000. At least 30 percent of these funds will be awarded to rural areas.
Does not require use of PICs.
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| Federal administering agency | Department of Labor
| Department of Labor | Department of Health and Human Services
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| State administering agency | State agency administering or supervising the administration of TANF or another state agency designated by the Governor.
| State agency administering or supervising the administration of TANF or another state agency designated by the Governor.
| State agency administering or supervising the administration of TANF.
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| Appropriation authority | The welfare-to-work block grant falls under Subtitle A of the TANF block grant. Therefore, Sec. 901 of P.L. 104-193 ("Brown amendment") applies. Welfare-to-work funds are subject to appropriation by the state legislature.
| The welfare-to-work block grant falls under Subtitle A of the TANF block grant. Therefore, Sec. 901 of P.L. 104-193 ("Brown amendment") applies. Welfare-to-work funds are subject to appropriation by the state legislature.
| The welfare-to-work block grant falls under Subtitle A of the TANF block grant. Therefore, Sec. 901 of P.L. 104-193 ("Brown amendment") applies. Welfare-to-work funds are subject to appropriation by the state legislature.
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| Authority to Distribute Funds | Requires TANF agency approval for all state formula plans and competitive grant proposals. PICs must expend funds pursuant to an agreement with the TANF agency. Failure of a PIC or TANF agency to honor agreement will result in forfeiture of funds. PICs cannot directly provide services using funds.
| PICs, in coordination with chief elected officials of service delivery areas (SDAs), have sole authority to distribute funds. PICs cannot directly provide services using funds.
| Requires TANF agency approval for all state formula plans and competitive grant proposals. Failure of grant recipient or TANF agency to honor agreement will result in forfeiture of funds.
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| Allowable Activities |
- Job creation through wage subsidies
- On-the-job training
- Job readiness, job placement and post-employment services through contracts with providers
- Job vouchers for placement, readiness and post-employment services
- Job support services excluding child care
- Individual Development Accounts
- 15 percent administrative cap
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- Job creation through wage subsidies
- On-the-job training
- Job placement
- Job vouchers
- Job retention or support services
- Individual Development Accounts
- 15 percent administrative cap
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- Job creation through wage subsidies
- On-the-job training
- Job readiness, job placement and post-employment services through contracts with providers
- Job vouchers for placement, readiness and post-employment services
- Job support services excluding child care
- Individual Development Accounts
- 15 percent administrative cap
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| State Maintenance of Effort | States must meet an 80 percent state maintenance of effort (MOE) under TANF to receive the formula funds.
| No comparable provision. | States must meet the 80 percent TANF state maintenance of effort (MOE), which is reduced to 75 percent if states meet the work requirement, in order to receive the formula funds.
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| State Match | States must provide a 33 percent match of federal funds to be eligible for grants.
| States must provide a 33 percent match of federal funds to be eligible for grants.
| States must provide a 33 percent match of federal funds to be eligible for grants.
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| Eligible Recipients | States are required to spend at least 90 percent of grant funds on individuals with at least two of the following characteristics: (1) needs substance abuse treatment; (2) has a poor work history; or (3) has not completed high school. Additionally, recipients must have been on welfare for at least 30 months or become ineligible for assistance within 12 months because of a time limit. Noncustodial parents with child support obligations are also eligible.
| States are required to spend at least 90 percent of grant funds to benefit long-term welfare recipients who have been receiving welfare for at least 30 months or will lose benefits within 12 months because of a time limit or two of the following apply: (1) has not completed high school; (2) needs substance abuse treatment; or (3) has a poor work history.
| States are required to spend at least 90 percent of grant funds to benefit long-term welfare recipients who have been receiving welfare for at least 30 months or will lose benefits within 12 months because of a time limit or two of the following apply: (1) has not completed high school; (2) needs substance abuse treatment; or (3) has a poor work history.
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| Evaluation | The Secretary of HHS is provided funds (.5 percent) to evaluate welfare-to-work projects. The Secretary must submit an interim report to Congress in 1999 and a final report in 2001.
| The Secretary of HHS is provided funds (.5 percent) to evaluate welfare-to-work projects.
| The Secretary of HHS is provided funds (.5 percent) to evaluate welfare-to-work projects. The Secretary must submit an interim report to Congress in 1999 and a final report in 2001.
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| Relationship to Federal Time Limit on Assistance
| The months that an individual receives assistance under the welfare-to-work grant will not count against the 60-month time limit for federal funds provided under TANF.
| The months that an individual receives assistance under the welfare-to-work grant will not count against the 60-month time limit for federal funds provided under TANF.
| The months that an individual receives assistance under the welfare-to-work grant will not count against the 60-month time limit for federal funds provided under TANF.
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| II. Worker Protections
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| Grant applicability | Applicable to TANF funds as well as welfare-to-work program.
| Applicable to welfare-to-work program only.
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| Nondisplacement | Reaffirms the TANF worker displacement provisions that prohibit assignment of a TANF recipient to a work activity to fill the position of someone who has been laid off or terminated (with the intent of filling the vacancy with a TANF recipient). Work activities cannot violate existing contracts for services or collective bargaining agreements.
| More extensive language around the prohibition of impairment of contracts. Prohibits partial displacement such as a reduction in hours or nonovertime work, wages or employment benefits, or placement in a work activity that will infringe upon the promotional opportunities of employed individuals.
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| Health and Safety | Requires that federal and state health and safety standards otherwise applicable to the working conditions of employees be equally applied to the working conditions of TANF recipients in a work activity.
| Same provision as House. Further states that workers' compensation (to the extent a state workers' compensation law applies) shall be provided to TANF participants on the same basis it is provided to other individuals in similar employment.
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| Nondiscrimination | An individual may not be discriminated against with respect to participation in work activities by reason of gender.
| No comparable provisions. |
| Grievance procedure | Requires the establishment of a procedure for handling grievances or complaints for violations of the above protections brought by employees or participants. The procedure must include an opportunity for a hearing and remedies. Provides an illustrative list of remedies.
| Allows grievances to be brought by participants as well as "other interested or affected parties" and requires that a hearing be held within 60 days. Provides for investigations by the Secretary of Labor if a decision is not reached within 60 days or if the party adversely affected by the decision appeals to the Secretary. Remedies are limited to suspension or termination of payments, prohibition of placements to the employer, reinstatement and payment of lost wages and where appropriate, other equitable relief.
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| III. Title XX Transferability
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| | States can directly transfer up to 10% of the state TANF block grant into the social services block grant (Title XX). Removes the current requirement that states must first transfer $2 into the Child Care Block Grant for every $1 transferred into Social Services.
| No comparable provision. |
| IV. Vocational Education Cap
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| | 30 percent of those counting toward work can be in vocational education training (when calculating the work participation rate). Teens who are required to be in school to receive assistance are exempt from this calculation.
| 20 percent of those counting toward work can be in vocational education training (when calculating the work participation rate). Teens who are required to be in school to receive assistance are included in the 20 percent.
| 20 percent of a state's TANF caseload can be in vocational education training (when calculating the work participation rate). Teens who are required to be in school to receive assistance are exempt from this calculation.
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| V. Minimum Wage/FLSA Requirements
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| | States may choose (1) to apply the Fair Labor Standards Act (FLSA) to work experience or community service programs or (2) to establish or operate work experience or community work programs under the provisions outlined below. (States that have or establish work experience programs which meet the trainee exemption under FLSA would not be required to pay recipients the minimum wage.)
Under the second scenario, work experience and community service programs in the public and non-profit sector are limited to projects which serve a useful public purpose in fields such as health, social service, environmental protection, or education, as identified by the state. The maximum number of hours that a state may require recipients to participate in work experience and community service programs is the sum of the family's TANF benefit and the value of the monthly food stamp benefit divided by the greater of the federal or state minimum wage. Before making the calculation, states must subtract any child support collected and retained by the state. If an individual participates in work experience or community service for the maximum allowable hours and has not met the hourly TANF work participation requirement, then the individual may participate in any other work activity to reach the required hours. It is unclear whether vocational education activities are included. States may not require participation beyond 40 hours per week.
Individuals engaged in work experience or community service programs are not receiving compensation for work and are not employees. Therefore, these individuals would not be subject to labor laws such as FLSA, FICA, unemployment insurance, etc.
Provisions in the bill do not apply to work experience or community service in the private sector. Such placements remain subject to FLSA and potentially other work laws as outlined in DOL guidance.
| When a family's benefits are reduced due to sanctions, the state does not have to deduct this amount when calculating the benefits/minimum wage package for determining allowable hours of participation.
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| VI. New Penalties
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| | Requires the Secretary of HHS to apply a penalty of one to five percent of the annual TANF block grant against states that do not reduce recipients' TANF assistance pro rata for failure to work as required by current welfare reform law.
| Requires the Secretary to impose the maximum penalty for a state's failure to meet the work participation rate but with some waiver authority for natural disasters or regional recessions.
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| VII. SSI State Supplement
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| | Repeals mandatory state SSI supplemental payment.
| No comparable provision. |
| VIII. Domestic Violence Victims
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| | No comparable provision.
| States have the flexibility to grant temporary good cause waivers under the TANF program to domestic violence victims. Temporarily exempts victims of domestic violence from the TANF work requirements and time limits and removes these individuals from the work participation rate calculation.
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| IX. Technical Corrections
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| | The House passed a stand-alone technical corrections bill, H.R. 1048, on April 29, 1997. The House reconciliation bill does not incorporate these provisions.
| Incorporates H.R. 1048 with amendments. Significant changes from H.R. 1048 include the addition of the teen parent exemption from the vocational education cap (see section on vocational education cap) and language on domestic violence victims (see section on domestic violence victims). Most SSI provisions of H.R. 1048 were removed due to Byrd rule violations for nongermaneness [Sec. 211-215 in H.R. 1048, pertaining to (1) technical amendments relating to drug addicts and alcoholics; (2) extension of disability insurance program demonstration project authority; (3) perfecting amendments related to withholding from Social Security benefits; (4) treatment of prisoners; and (5) Social Security Advisory Board personnel.].
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| X. Benefits for Legal Immigrants and Refugees
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| Extension of Refugee Exemption | Extends the SSI and Medicaid eligibility of refugees, asylees and those granted withholding of deportation from 5 to 7 years.
| Extends the SSI and Medicaid eligibility of refugees, asylees and those granted withholding of deportation from 5 to 7 years.
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| Cuban and Haitian Entrants and Amerasian Noncitizens
| Cuban and Haitian entrants and Amerasian immigrants are considered "qualified aliens" and therefore retain eligibility for SSI and Medicaid benefits for the first 7 years in the country. These legal immigrants are also eligible for food stamp benefits for the first 5 years in the country.
| Cuban and Haitian entrants are considered "qualified aliens" and therefore eligible for food stamp benefits for the first five years in the country and an extension of SSI and Medicaid eligibility from 5 to 7 years. Amerasian noncitizens are eligible for SSI and Medicaid benefits for the first seven years in the country; food stamps for 5 years; and under the state option, TANF, SSBG and Medicaid for the first five years in the country.
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| SSI and Medicaid Eligibility | Maintains SSI and Medicaid eligibility for all legal noncitizens (both elderly and disabled) who were receiving benefits prior to 8/22/96. Legal immigrants who were in the country prior this date but not on the rolls would not be eligible, even if they become disabled in the future. These changes do not apply to food stamps-legal immigrants and refugees in the country after 5 years remain ineligible for food stamp benefits. $9 billion in benefit cuts restored.
| Maintains SSI and Medicaid eligibility for all legal immigrants and refugees (both elderly and disabled) who were receiving benefits prior to 8/22/96. Also maintains SSI and Medicaid eligibility for legal immigrants and refugees who arrived prior to 8/22/96 who may become disabled in the future. Exempts immigrants entering after 8/22/96 who are otherwise eligible to naturalize but are too severely disabled to naturalize from the ban on SSI. Exempts legal noncitizen children from the 5-year ban on Medicaid, subject to deeming. Exempts Type II recipients who had filed applications for SSI prior to 1/1/79 from SSI restrictions. Clarifies that food stamp eligibility is not linked to SSI eligibility. Exempts certain American Indians living along the Canadian border from the eligibility limitation on SSI and Medicaid. State option to extend Medicaid benefits to legal immigrant under the Maternal and Child Health Block Grant. $11.4 billion in benefit cuts restored.
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| XI. Food Stamps |
| Additional 15 percent exemption for ABAWADs
| States may continue food stamp benefits past the current three month limit for 15 percent of the state's able-bodied adults without dependents (ABAWDs) who would otherwise lose benefits. The 15 percent exemption is based on the ABAWDs caseload minus those who are otherwise exempt through statutory exemptions or through USDA-approved waivers. The FY98 exemption calculation for each state is based on FY96 adjusted data. In subsequent fiscal years, each state's exemption will be adjusted by the Secretary of USDA to reflect changes in the state's caseload and estimated changes in the proportion of food stamp recipients covered by waivers. States that exempt more or less than 15 percent will have their allowable exemptions increased or decreased accordingly in the following year.
| Same provision as House. |
| Additional federal Food Stamp Employment and Training funds
| Increases the federal-only Food Stamp Employment and Training funds (E&T) for states to carry out employment and training programs for ABAWDs.
Distribution of funds: The increase results in an additional $140 million in each of fiscal years 1998 to 2001 and $120 million in fiscal year 2002. The current E&T allocations--$81 million for FY 98, rising to $90 million in FY2002-are increased by the new funds to combined amounts of $221 million in FY98, $224 million in FY99, $226 million in FY2000, $228 million in FY2001, and $210 million in FY 2002. Unexpended funds in any given fiscal year will be reallocated to other states by USDA.
States will be allocated funds on a formula basis, determined and adjusted each fiscal year by USDA, based on their proportion of non-exempt ABAWDs with a minimum allocation of $50,000 in any fiscal year.
Use of funds: States are required to spend at least 80 percent of the combined federal-only money on employment and training services for ABAWDs (but not on job search). States cannot use funds for food stamp recipients who receive benefits under a state program funded by TANF dollars.
Maintenance of effort (MOE): To receive the new federal-only funds, states must meet a 100 percent maintenance of effort (MOE) based on FY96 state spending for E&T. No state MOE is required to continue receiving the original E&T funds.
Reimbursement of funds: No comparable provision. (Current law)
While the Senate language requires states to create job slots with the funds in order to receive reimbursement, the House version is somewhat more flexible. House language allows states to spend the money on activities other than workfare or subsidized job slots, such as vocational training.
| Increases the federal-only Food Stamp Employment and Training funds (E&T) for states to carry out employment and training programs for ABAWDs.
Distribution of funds: The increase results in an additional $140 million in each of fiscal years 1998 to 2001 and $120 million in fiscal year 2002. The current E&T allocations--$81 million for FY 98, rising to $90 million in FY2002-are increased by the new funds to combined amounts of $221 million in FY98, $224 million in FY99, $226 million in FY2000, $228 million in FY2001, and $170 million in FY 2002. Unexpended funds in any given fiscal year will be reallocated to other states by USDA.
States will be allocated funds on a formula basis, determined and adjusted each fiscal year by USDA, based on their proportion of non-exempt ABAWDs with a minimum allocation of $50,000 in any fiscal year.
Use of funds: States are required to spend at least 75 percent of the combined federal-only money on workfare or subsidized job slots to serve food stamp recipients subject to work requirement time limits. A higher payment rate will be paid for ABAWDs who are placed in workfare or subsidized work slots requiring participation for 20 hours or more per week. The remaining 25 percent of the combined federal-only money may be spent on less rigorous activities such as job search or job training, but will be reimbursed at a lower payment rate. These reimbursement rates will be set by USDA.
Maintenance of effort (MOE): To receive the new federal-only funds, states must meet a 75 percent state maintenance of effort (MOE) based on FY96 state spending for E&T. No state MOE is required to continue receiving the original E&T funds.
Reimbursement of funds: States which incur costs to place individuals in E&T programs, including the costs for case management and casework to facilitate the transition from economic dependency to self-sufficiency through work, transportation and child care, which exceed the new combined E&T allotment will be reimbursed by USDA at a fifty percent rate.
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| Privatization | States may employ nongovernmental personnel to make eligibility determinations in the food stamp program.
| No comparable provision. |
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