Targeting funds to truly needy families

(a) Prohibition on use of funds for families with income greater than twice the poverty line Section 404(k) (42 U.S.C. 604(k)) is amended to read as follows: (k) Prohibitions (1) Use of funds for persons with income greater than twice the poverty line A State to which a grant is made under this part shall not use the grant to provide any assistance or services to a family whose monthly income exceeds twice the poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9902(2))).. (b) Reduction of limitation of use funds for administrative activities (1) Use of grants Section 404(b) (42 U.S.C. 604(b)) is amended— (A) in paragraph (1), by striking 15 and inserting 10; and (B) by amending paragraph (2) to read as follows: (2) Exception Paragraph (1) shall not apply to the use of a grant for— (A) information technology and computerization needed for tracking or monitoring required by or under this part; or (B) case management necessary to assist an individual in developing an individual opportunity plan under section 408(b).. (2) Penalties Section 409(a) (42 U.S.C. 609(a)) is amended— (A) in paragraph (7)(B)(i)(I)(dd), by striking 15 and inserting 10; and (B) by adding at the end the following: (17) Penalty for failure to comply with administrative limitation If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has failed to comply with section 404(b) for the fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to not more than 5 percent of the State family assistance grant.. (c) Prohibition on use of funds for direct spending on child care services or activities Section 404(k) (42 U.S.C. 604(k)), as amended by subsection (a) of this section, is amended by adding at the end the following: (2) Direct spending on child care services or activities A State to which a grant is made under this part shall not use the grant for direct spending on child care and other early childhood education programs, services, or activities.. (d) Expansion of authority To transfer funds Section 404(d) (42 U.S.C. 604(d)) is amended by striking paragraphs (1) through (3) and inserting the following: (1) In general A State may transfer not more than 50 percent of the grant made to the State under section 403(a)(1) to a State program pursuant to any or all of the following provisions of law: (A) The Child Care and Development Block Grant Act of 1990. (B) Title I of the Workforce Innovation and Opportunity Act. (2) Applicable rules (A) In general Except as provided in subparagraph (B) of this paragraph, any amount paid to a State under this part that is used to carry out a State program pursuant to a provision of law specified in paragraph (1) shall not be subject to the requirements of this part, but shall be subject to the requirements that apply to Federal funds provided directly under the provision of law to carry out the program, and the expenditure of any amount so used shall not be considered to be an expenditure under this part. (B) Funds transferred to the WIOA In the case of funds transferred under paragraph (1)(B) of this subsection— (i) the State shall provide an assurance that the funds will be used to support individuals eligible for assistance or services under this part pursuant to subsection (k)(1); and (ii) not more than 15 percent of the funds will be reserved for statewide workforce investment activities referred to in section 128(a)(1) of the Workforce Innovation and Opportunity Act. (3) WIOA transfer authority not available to States excluding the State TANF program as a mandatory one-stop partner under the WIOA The authority provided by paragraph (1)(B) of this subsection may not be exercised by a State that has provided the notification referred to in section 407(a)(2)(F)..