H. Rept. 114-615 - 114th Congress (2015-2016)

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House Report 114-615 - WHAT WORKS TO MOVE WELFARE RECIPIENTS INTO JOBS ACT

[House Report 114-615]
[From the U.S. Government Publishing Office]


114th Congress }                                       { Rept. 114-615
                        HOUSE OF REPRESENTATIVES
 2d Session    }                                       { Part 1

======================================================================
 
          WHAT WORKS TO MOVE WELFARE RECIPIENTS INTO JOBS ACT

                                _______
                                

 June 10, 2016.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Brady of Texas, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 5169]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 5169) to strengthen welfare research and evaluation, 
and for other purposes, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
  I. SUMMARY AND BACKGROUND...........................................4
          A. Purpose and Summary.................................     4
          B. Background and Need for Legislation.................     4
          C. Legislative History.................................     5
 II. EXPLANATION OF THE BILL..........................................6
          Section 1: Short Title.................................     6
          Section 2: Strengthening Welfare Research and 
              Evaluation and Development of a What Works 
              Clearinghouse......................................     6
          Section 3: Effective Date..............................     8
III. VOTES OF THE COMMITTEE...........................................9
 IV. NEW BUDGET AUTHORITY AND TAX EXPENDITURES........................9
  V. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE........9
 VI. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE......11
          A. Committee Oversight Findings and Recommendations....    11
          B. Statement of General Performance Goals and 
              Objectives.........................................    11
          C. Applicability of House Rule XXI 5(b)................    11
          D. Congressional Earmarks, Limited Tax Benefits, and 
              Limited Tariff Benefits............................    11
          E. Duplication of Federal Programs.....................    11
          F. Disclosure of Directed Rule Makings.................    12
VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED...........12
          A. Text of Existing Law Amended or Repealed by the 
              Bill, as Reported..................................    12
          B. Changes in Existing Law Proposed by the Bill, as 
              Reported...........................................    16
VIII.EXCHANGE OF LETTERS WITH ADDITIONAL COMMITTEES OF REFERRAL......25


    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``What Works to Move Welfare Recipients 
into Jobs Act''.

SEC. 2. STRENGTHENING WELFARE RESEARCH AND EVALUATION AND DEVELOPMENT 
                    OF A WHAT WORKS CLEARINGHOUSE.

  Section 413 of the Social Security Act (42 U.S.C. 613) is amended to 
read as follows:

``SEC. 413. EVALUATION OF TEMPORARY ASSISTANCE FOR NEEDY FAMILIES AND 
                    RELATED PROGRAMS.

  ``(a) Evaluation of the Impacts of TANF.--The Secretary shall conduct 
research on the effect of State programs funded under this part and any 
other State program funded with qualified State expenditures (as 
defined in section 409(a)(7)(B)(i)) on employment, self-sufficiency, 
child well-being, unmarried births, marriage, poverty, economic 
mobility, and other factors as determined by the Secretary.
  ``(b) Evaluation of Grants to Improve Child Well-being by Promoting 
Healthy Marriage and Responsible Fatherhood.--The Secretary shall 
conduct research to determine the effects of the grants made under 
section 403(a)(2) on child well-being, marriage, family stability, 
economic mobility, poverty, and other factors as determined by the 
Secretary.
  ``(c) Dissemination of Information.--The Secretary shall, in 
consultation with States receiving funds provided under this part, 
develop methods of disseminating information on any research, 
evaluation, or study conducted under this section, including 
facilitating the sharing of information and best practices among States 
and localities.
  ``(d) State-initiated Evaluations.--A State shall be eligible to 
receive funding to evaluate the State program funded under this part or 
any other State program funded with qualified State expenditures (as 
defined in section 409(a)(7)(B)(i)) if--
          ``(1) the State submits to the Secretary a description of the 
        proposed evaluation;
          ``(2) the Secretary determines that the design and approach 
        of the proposed evaluation is rigorous and is likely to yield 
        information that is credible and will be useful to other 
        States; and
          ``(3) unless waived by the Secretary, the State contributes 
        to the cost of the evaluation, from non-Federal sources, an 
        amount equal to at least 25 percent of the cost of the proposed 
        evaluation.
  ``(e) Census Bureau Research.--
          ``(1) The Bureau of the Census shall implement or enhance 
        household surveys of program participation, in consultation 
        with the Secretary and the Burueau of Labor Statistics and made 
        available to interested parties, to allow for the assessment of 
        the outcomes of continued welfare reform on the economic and 
        child well-being of low-income families with children, 
        including those who received assistance or services from a 
        State program funded under this part or any other State program 
        funded with qualified State expenditures (as defined in section 
        409(a)(7)(B)(i)). The content of the surveys should include 
        such information as may be necessary to examine the issues of 
        unmarried childbearing, marriage, welfare dependency and 
        compliance with work requirements, the beginning and ending of 
        spells of assistance, work, earnings and employment stability, 
        and the well-being of children.
          ``(2) To carry out the activities specified in paragraph (1), 
        the Bureau of the Census, the Secretary, and the Bureau of 
        Labor Statistics shall consider ways to improve the surveys and 
        data derived from the surveys to--
                  ``(A) address underreporting of the receipt of means-
                tested benefits and tax benefits for low-income 
                individuals and families;
                  ``(B) increase understanding of poverty spells and 
                long-term poverty, including by facilitating the 
                matching of information to better understand 
                intergenerational poverty;
                  ``(C) generate a better geographical understanding of 
                poverty such as through State-based estimates and 
                measures of neighborhood poverty;
                  ``(D) increase understanding of the effects of means-
                tested benefits and tax benefits on the earnings of 
                low-income families; and
                  ``(E) improve how poverty and economic well-being are 
                measured, including through the use of consumption 
                measures.
  ``(f) Research and Evaluation Conducted Under This Section.--Research 
and evaluation conducted under this section designed to determine the 
effects of a program or policy (other than research conducted under 
subsection (e)) shall use experimental designs using random assignment 
or other reliable, evidence-based research methodologies that allow for 
the strongest possible causal inferences when random assignment is not 
feasible.
  ``(g) Development of What Works Clearinghouse of Proven and Promising 
Approaches to Move Welfare Recipients Into Work.--
          ``(1) In general.--The Secretary, in consultation with the 
        Secretary of Labor, shall develop a database (which shall be 
        referred to as the `What Works Clearinghouse of Proven and 
        Promising Projects to Move Welfare Recipients into Work') of 
        the projects that used a proven approach or a promising 
        approach in moving welfare recipients into work, based on 
        independent, rigorous evaluations of the projects. The database 
        shall include a separate listing of projects that used a 
        developmental approach in delivering services and a further 
        separate listing of the projects with no or negative effects. 
        The Secretary shall add to the What Works Clearinghouse of 
        Proven and Promising Projects to Move Welfare Recipients into 
        Work data about the projects that, based on an independent, 
        well-conducted experimental evaluation of a program or project, 
        using random assignment or other research methodologies that 
        allow for the strongest possible causal inferences, have shown 
        they are proven, promising, developmental, or ineffective 
        approaches.
          ``(2) Criteria for evidence of effectiveness of approach.--
        The Secretary, in consultation with the Secretary of Labor and 
        organizations with experience in evaluating research on the 
        effectiveness of various approaches in delivering services to 
        move welfare recipients into work, shall--
                  ``(A) establish criteria for evidence of 
                effectiveness; and
                  ``(B) ensure that the process for establishing the 
                criteria--
                          ``(i) is transparent;
                          ``(ii) is consistent across agencies;
                          ``(iii) provides opportunity for public 
                        comment; and
                          ``(iv) takes into account efforts of Federal 
                        agencies to identify and publicize effective 
                        interventions, including efforts at the 
                        Department of Health and Human Services, the 
                        Department of Education, and the Department of 
                        Justice.
          ``(3) Definitions.--In this subsection:
                  ``(A) Approach.--The term `approach' means a process, 
                product, strategy, or practice that is--
                          ``(i) research-based, based on the results of 
                        1 or more empirical studies, and linked to 
                        program-determined outcomes; and
                          ``(ii) evaluated using rigorous research 
                        designs.
                  ``(B) Proven approach.--The term `proven approach' 
                means an approach that--
                          ``(i) meets the requirements of a promising 
                        approach; and
                          ``(ii) has demonstrated significant positive 
                        outcomes at more than 1 site in terms of 
                        increasing work and earnings of participants, 
                        reducing poverty and dependence, or 
                        strengthening families.
                  ``(C) Promising approach.--The term `promising 
                approach' means an approach--
                          ``(i) that meets the requirements of 
                        subparagraph (D)(i);
                          ``(ii) that has been evaluated using well-
                        designed and rigorous randomized controlled or 
                        quasi-experimental research designs;
                          ``(iii) that has demonstrated significant 
                        positive outcomes at only 1 site in terms of 
                        increasing work and earnings of participants, 
                        reducing poverty and dependence, or 
                        strengthening families; and
                          ``(iv) under which the benefits of the 
                        positive outcomes have exceeded the costs of 
                        achieving the outcomes.
                  ``(D) Developmental approach.--The term 
                `developmental approach' means an approach that--
                          ``(i) is research-based, grounded in relevant 
                        empirically-based knowledge, and linked to 
                        program-determined outcomes;
                          ``(ii) is evaluated using rigorous research 
                        designs; and
                          ``(iii) has yet to demonstrate a significant 
                        positive outcome in terms of increasing work 
                        and earnings of participants in a cost-
                        effective way.''.

SEC. 3. EFFECTIVE DATE.

  The amendment made by this Act shall take effect on October 1, 2016.

                       I. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    H.R. 5169 as amended, the ``What Works to Move Welfare 
Recipients into Jobs Act,'' as ordered reported by the 
Committee on Ways and Means on May 24, 2016, would establish a 
``What Works Clearinghouse'' to catalogue the different 
approaches helping welfare recipients move into work.

                 B. Background and Need for Legislation

    In 1996, Republicans reformed the safety net to better 
support and reward work. As part of these reforms, the failed 
New Deal-era Aid to Families with Dependent Children (AFDC) 
program was replaced with today's Temporary Assistance for 
Needy Families program (TANF), which established strong 
requirements for states to help welfare recipients prepare for 
work and find jobs.
    The number of families receiving cash assistance under the 
TANF program fell by more than 50 percent, and has generally 
remained low over time. Employment rates of single mothers with 
children increased by 15 percent through 2007 compared with 
1995; while their work rates declined as a result of the 2007-
09 recession, they have risen again since 2011 and remain 10 
percent higher than before. Child poverty also declined 
dramatically during this period as more people went to work and 
earnings increased, and poverty among African American 
households with children reached record lows. Poverty among 
female-headed households with children remains lower today than 
before the 1996 reforms--despite two intervening recessions.
    The TANF program has helped shield American families from 
sinking deeper into poverty by providing temporary assistance 
that is also linked to stable employment. But it's been at 
least a decade since any meaningful changes have been made to 
this law.
    States have used a variety of approaches to meet the goals 
of TANF and move welfare recipients into work, including 
assisting with job search, providing work supports like child 
care and transportation, assisting with education and training, 
and many others. While states have experimented with many 
approaches to helping welfare recipients find work, few have 
been studied using high-quality evaluations to determine 
whether they were effective in actually increasing recipient 
employment. When there are instance of proven successes, the 
results are not often shared widely limiting other states from 
being able to replicate them and move more recipients from 
welfare to work.
    H.R. 5169, as amended, would require the Department of 
Health and Human Services (in coordination with the Department 
of Labor) establish a ``What Works Clearinghouse'' to catalogue 
the different approaches helping welfare recipients move into 
work.
    This clearinghouse, based on a similar one used by the 
Department of Education, would make it easier for states to 
know which approaches have been tested using independent, 
rigorous evaluations, and based on those results, an 
understanding of their effectiveness in achieving positive 
results for individuals and families. Additionally, the 
clearinghouse would also include a separate listing of 
approaches that are based on research but have not yet proven 
their effectiveness, expanding the awareness for future use and 
evaluation. Finally, the clearinghouse would also document 
which approaches have been proven to be ineffective in 
achieving positive outcomes to prevent other states from 
repeating the same failed efforts.
    The overall measurement of poverty would improve by taking 
advantage of data already held by other federal agencies. 
Current TANF funds provided to measure poverty would now 
specify that they be used to address underreporting of receipt 
of welfare benefits and improve data matching to better 
understand intergenerational poverty. Using data already held 
by other federal agencies will improve program coordination and 
preserve research funds for analysis, rather than data 
collection.

                         C. Legislative History


Background

    H.R. 5169, the ``What Works to Move Welfare Recipients into 
Jobs Act,'' was introduced on May 6, 2016, by Representative 
Vern Buchanan, and was referred to the Committee on Ways and 
Means.

Committee hearings

    The Committee began a bipartisan, comprehensive review of 
the TANF program at the beginning of the Congress, in early 
January 2015. Over the last fifteen months, the Human Resources 
Subcommittee held a series of hearings with witnesses ranging 
from current and former recipients to service providers to 
employers to researchers. Members of the Human Resources 
Subcommittee introduced a series of bills focused on smaller 
provisions within TANF, and then they were compiled into a 
larger, more comprehensive reauthorization draft bill. That 
bipartisan draft was distributed for public comment and dozens 
of stakeholders provided invaluable feedback, some incorporated 
in H.R. 5169.
    On March 17, 2015, the Human Resources Subcommittee held a 
hearing entitled ``Expanding Opportunity by Funding What Works: 
Using Evidence to Help Low-Income Individuals and Families Get 
Ahead.'' This hearing focused on the effectiveness of federal 
social programs, efforts to rigorously evaluate government 
programs to determine their impact, and proposals to increase 
the use of evidence across government so federal spending is 
directed toward programs that work.
    Throughout the Congress, the Human Resources Subcommittee 
held hearings on evidence-based decision-making and the lack of 
accountability in many federally-funded social service 
programs. Those hearings included:
           Challenges Facing Low-Income Individuals and 
        Families in Today's Economy, February 11, 2015
           Next Steps for Welfare Reform: Ideas to 
        Improve TANF to Help More Families Find Work and Escape 
        Poverty, April 30, 2015
           Protecting the Safety Net from Waste, Fraud, 
        and Abuse, June 3, 2015
           Joint Subcommittee Hearing on How Our 
        Welfare System Can Discourage Work, June 25, 2015
           Welfare Reform Proposals, July 15, 2015
           Better Coordinating Welfare Programs to 
        Serve Families in Need, November 3, 2015
           Moving America's Families Forward: Lessons 
        Learned from Welfare Reform in Other Countries, 
        November 17, 2015
           Getting Incentives Right: Connecting Low-
        Income Individuals with Jobs, March 1, 2016

Committee action

    The Committee on Ways and Means marked up H.R. 5169, the 
``What Works to Move Welfare Recipients into Jobs Act,'' on May 
24, 2016. The bill, H.R. 5169, was ordered favorably reported 
to the House of Representatives as amended by a voice vote 
(with a quorum being present).

                      II. EXPLANATION OF THE BILL


                         Section 1: Short Title


Present law

    No provision.

Explanation of provision

    This section contains the short title of the bill, the 
``What Works to Move Welfare Recipients into Jobs Act.''

Reason for change

    The Committee believes that the short title reflects the 
policy actions included in the legislation.

Effective date

    The provision is effective on October 1, 2016.

     Section 2: Strengthening Welfare Research and Evaluation and 
               Development of a What Works Clearinghouse


Present law

    The Secretary of the Department of Health and Human 
Services (HHS) is required to conduct research on the benefits, 
effects, and costs of state programs under the Temporary 
Assistance for Needy Families (TANF) block grant. The research 
must include studies that relate to time limits, welfare 
dependency, illegitimacy, teen pregnancy, employment rates, and 
child well-being. HHS may conduct studies on other policy 
issues as is appropriate.
    HHS may assist states in developing innovative state 
programs for reducing welfare dependency and increasing child 
well-being. HHS may provide funds for training and technical 
assistance. HHS must evaluate these innovative programs, using, 
to the maximum extent possible, random assignment as the 
evaluation methodology.
    HHS is required to develop innovative methods for 
disseminating information on any research, evaluation, or 
studies conducted using TANF research funds. This shall include 
facilitation of sharing information and best practices among 
states and localities.
    HHS is required to rank annually states in terms of their 
success in placing TANF recipients into long-term private 
sector jobs and reducing the welfare caseload. HHS may, if 
methods become practicable, rank their success in diverting 
families from assistance. HHS is also required to rank annually 
states based on their ratio of out-of-wedlock births to total 
births among families receiving TANF assistance.
    HHS is required to report on various indicators of well-
being for children and families who (1) have been subject to 
the time limit; (2) were born to teen parents; and (3) were 
themselves teen parents. The indicators of well-being are: 
percentage who dropped out of high school; the percentage 
employed; the percentage that have been convicted of a crime; 
the rate of out-of-wedlock childbearing; the percent that 
continues to receive TANF; the percent that has health 
insurance; and the average income of families in each group.
    States are required to report to HHS their child poverty 
rates. If their child poverty rate has increased by at least 5 
percent as a result of the creation of TANF, the state is 
required to submit to HHS a corrective action plan.
    For FY2016, funding of $15 million was set aside from the 
TANF contingency fund appropriation for HHS research on TANF. 
An additional $10 million from the FY2016 contingency fund 
appropriation was set aside and transferred to the Census 
Bureau to conduct a study on the effects of welfare reform 
using information from the Survey of Income and Program 
Participation (SIPP).

Explanation of provision

    This bill would require the Secretary of HHS to conduct 
research on the effect of TANF programs on employment, self-
sufficiency, child well-being, unmarried births, marriage, 
poverty, economic mobility, and other factors determined by the 
Secretary. HHS would also be required to conduct research on 
the effects of grants to improve child well-being through 
healthy marriage and fatherhood on child well-being, marriage, 
family stability, economic mobility, poverty, etc. HHS would be 
required to develop ways to distribute information on any 
research and evaluation conducted as a part of this amendment.
    The bill would make states eligible for funds to evaluate 
their TANF and related programs. States would be eligible for 
evaluation funds if HHS determines the research design is 
rigorous and that research is likely to yield credible 
information that would be useful to other states. The federal 
government would pay up to 75 percent of the cost of the 
evaluation, though the Secretary of HHS may waive requirements 
for cost-sharing.
    The bill would require research conducted by HHS and the 
states to use experimental designs using random assignment when 
feasible. If a random assignment experiment is not feasible, 
the research would be conducted using other reliable evidence-
based research methodologies.
    The bill would require HHS, in consultation with the 
Department of Labor, to develop a database named, ``What Works 
Clearinghouse of Proven and Promising Projects to Move Welfare 
Recipients into Work.'' This database would consist of the 
projects that used a promising or proven approach in delivering 
services to move TANF recipients into work. This database would 
also include a list of projects that used a developmental 
approach, and a list of projects that were ineffective in 
moving recipients to work. The categorization of these projects 
as proven, promising, ineffective, or developmental would be 
based on rigorous evaluation of the projects.
    HHS, in consultation with the Department of Labor would be 
required to establish the criteria associated with evaluating 
the effectiveness of the approaches, and the process of 
selecting the criteria must be consistent, transparent, and 
open for comment. The criteria would be required to take into 
account other federal efforts to identify and publicize 
effective interventions.
    The bill also would require the Census Bureau, in 
consultation with the Secretary of HHS and the Bureau of Labor 
Statistics, to implement a new household survey and/or enhance 
existing household surveys to provide for the assessment of the 
effects of welfare reform on the economic and child well-being 
of low-income families. The content of the survey would include 
information to examine issues of unmarried childbearing, 
marriage, welfare dependency and compliance with work 
requirements; the beginning and ending spells of assistance; 
work, earnings and employment stability; and the well-being of 
children. The Census Bureau, the Secretary of HHS, and BLS 
would be required to consider ways to improve the surveys and 
data derived from the surveys to: address underreporting of 
means-tested benefits; increase understanding of poverty 
spells, long-term poverty, and intergenerational poverty; 
better understand the geographical dimensions of poverty; 
increase understanding of the effects of means-tested benefits 
and tax benefits on the earnings of low-income families; and 
improve how poverty and economic well-being are measured, 
including the use of consumption measures.

Reason for change

    The Committee believes that while states have experimented 
with many approaches to helping welfare recipients find work, 
few have been studied using high-quality evaluations to 
determine whether they were effective in actually increasing 
recipient employment. Further, when there are instance of 
proven successes, the results are not often shared widely 
limiting other states from being able to replicate them and 
move more recipients from welfare to work. These provisions 
would aid in promoting local solutions that help more people 
get back to work quickly.

Effective date

    The provision is effective on October 1, 2016.

                       Section 3: Effective Date


Present law

    No provision.

Explanation of provision

    This section includes an effective date of October 1, 2016.

Reason for change

    The Committee believes it is appropriate to have an 
effective date of October 1, 2016, the start of the next fiscal 
year.

Effective date

    The provision is effective on October 1, 2016.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the vote of the Committee on Ways and Means in its 
consideration of H.R. 5169, the ``What Works to Move Welfare 
Recipients into Jobs Act,'' on May 24, 2016.
    The Committee on Ways and Means marked up H.R. 5169, the 
``What Works to Move Welfare Recipients into Jobs Act,'' on May 
24, 2016. The bill, H.R. 5169, was ordered favorably reported 
to the House of Representatives as amended by a voice vote 
(with a quorum being present).

             IV. NEW BUDGET AUTHORITY AND TAX EXPENDITURES

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new budget authority or tax expenditure budget 
authority.

      V. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the CBO, the Committee sets forth the following 
estimate and comparison prepared by the Director of the 
Congressional Budget Office.

H.R. 5169--What Works to Move Welfare Recipients into Jobs Act

    Summary: H.R. 5169 would change how the Department of 
Health and Human Services (HHS) conducts research and would 
require the Census Bureau to implement or enhance a household 
survey to assess the effect of continued welfare reform on 
families. CBO estimates that the requirements on the Secretary 
of HHS would be similar to those that already exist under 
current law; therefore, implementing those provisions would not 
affect discretionary spending by HHS. However, the legislation 
would require the Census Bureau to conduct activities that are 
not authorized under current law; CBO estimates that 
implementing those new requirements would cost the Census 
Bureau $49 million over the 2017-2021 period, assuming 
appropriation of the necessary amounts.
    Enacting this bill would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply. CBO 
estimates that enacting H.R. 5169 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2027.
    H.R. 5169 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments. States could initiate program evaluations 
authorized by the bill, and any costs tied to matching 
requirements would be conditions of assistance.
    Estimated cost to the Federal Government: The estimated 
budgetary effect of this legislation is shown in the following 
table. The costs of this legislation fall within budget 
function 370 (commerce and housing credit).

----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in millions of dollars--
                                                              --------------------------------------------------
                                                                2017    2018    2019    2020    2021   2017-2021
----------------------------------------------------------------------------------------------------------------
                                 INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level................................      10      10      10      10      10        50
Estimated Outlays............................................       9      10      10      10      10        49
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: CBO assumes that H.R. 5169 will be 
enacted near the start of fiscal year 2017, that the necessary 
amounts will be appropriated each year, and that spending will 
follow historical patterns for similar activities. H.R. 5169 
would amend title IV of the Social Security Act to remove 
requirements that HHS assist states in developing innovative 
approaches to reducing welfare dependency and evaluate state 
performance with work programs and related areas. The bill 
would instead require HHS, in consultation with the Department 
of Labor, to establish a database to catalogue the different 
approaches used by states to help welfare recipients find work. 
CBO estimates that, in general, those new responsibilities 
would be similar to the welfare research HHS is currently 
required to conduct. Thus, CBO estimates that no additional 
funding would be required for HHS.
    H.R. 5169 also would require the Census Bureau to conduct 
new activities not authorized under current law. Specifically, 
the legislation would require the Census Bureau to implement a 
new household survey or to enhance an existing one in order to 
assess the effects of welfare reform on the well-being of low-
income families with children. In 2016, $10 million was 
appropriated for the Census Bureau to conduct research related 
to welfare using the Survey of Income and Program 
Participation. CBO estimates that the Census Bureau would 
require the same level of funding annually to meet the 
requirements under this bill. Such spending would be subject to 
appropriation of the estimated amounts.
    Pay-As-You-Go considerations: None.
    Increase in long-term direct spending and deficits: CBO 
estimates that enacting H.R. 5169 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2027.
    Intergovernmental and private-sector impact: H.R. 5169 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. States could initiate program evaluations 
authorized by the bill, and any costs tied to matching 
requirements would be conditions of assistance.
    Estimate prepared by: Federal costs: Susanne S. Mehlman; 
Impact on State, local, and tribal governments: Zach Byrum; 
Impact on the private sector: Paige Piper/Bach.
    Estimate approved by: H. Samuel Papenfuss Deputy Assistant 
Director for Budget Analysis.

     VI. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
description portions of this report.

        B. Statement of General Performance Goals and Objectives

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of this legislation would 
promote proven local solutions that help more people get back 
to work.

                C. Applicability of House Rule XXI 5(b)

    Rule XXI 5(b) of the Rules of the House of Representatives 
provides, in part, that ``A bill or joint resolution, 
amendment, or conference report carrying a Federal income tax 
rate increase may not be considered as passed or agreed to 
unless so determined by a vote of not less than three-fifths of 
the Members voting, a quorum being present.'' The Committee has 
carefully reviewed the bill, and states that the bill does not 
involve any Federal income tax rate increases within the 
meaning of the rule.

  D. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill, and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                   E. Duplication of Federal Programs

    In compliance with Sec. 3(g)(2) of H. Res. 5 (114th 
Congress), the Committee states that no provision of the bill 
establishes or reauthorizes: (1) a program of the Federal 
Government known to be duplicative of another Federal program; 
(2) a program included in any report from the Government 
Accountability Office to Congress pursuant to section 21 of 
Public Law 111-139; or (3) a program related to a program 
identified in the most recent Catalog of Federal Domestic 
Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

                 F. Disclosure of Directed Rule Makings

    In compliance with Sec. 3(i) of H. Res. 5 (114th Congress), 
the following statement is made concerning directed rule 
makings: The Committee estimates that the bill requires no 
directed rule makings within the meaning of such section.

       VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED


  A. Text of Existing Law Amended or Repealed by the Bill, as Reported

    In compliance with clause 3(e)(1)(A) of rule XIII of the 
Rules of the House of Representatives, the text of each section 
proposed to be amended or repealed by the bill, as reported, is 
shown below:

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e)(1)(A) of rule XIII of the 
Rules of the House of Representatives, the text of each section 
proposed to be amended or repealed by the bill, as reported, is 
shown below:

                          SOCIAL SECURITY ACT




           *       *       *       *       *       *       *
TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH 
CHILDREN AND FOR CHILD-WELFARE SERVICES

           *       *       *       *       *       *       *



   PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY 
FAMILIES

           *       *       *       *       *       *       *


SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

  (a) Research.--The Secretary, directly or through grants, 
contracts, or interagency agreements, shall conduct research on 
the benefits, effects, and costs of operating different State 
programs funded under this part, including time limits relating 
to eligibility for assistance. The research shall include 
studies on the effects of different programs and the operation 
of such programs on welfare dependency, illegitimacy, teen 
pregnancy, employment rates, child well-being, and any other 
area the Secretary deems appropriate. The Secretary shall also 
conduct research on the costs and benefits of State activities 
under section 407.
  (b) Development and Evaluation of Innovative Approaches To 
Reducing Welfare Dependency and Increasing Child Well-Being.--
          (1) In general.--The Secretary may assist States in 
        developing, and shall evaluate, innovative approaches 
        for reducing welfare dependency and increasing the 
        well-being of minor children living at home with 
        respect to recipients of assistance under programs 
        funded under this part. The Secretary may provide funds 
        for training and technical assistance to carry out the 
        approaches developed pursuant to this paragraph.
          (2) Evaluations.--In performing the evaluations under 
        paragraph (1), the Secretary shall, to the maximum 
        extent feasible, use random assignment as an evaluation 
        methodology.
  (c) Dissemination of Information.--The Secretary shall 
develop innovative methods of disseminating information on any 
research, evaluations, and studies conducted under this 
section, including the facilitation of the sharing of 
information and best practices among States and localities 
through the use of computers and other technologies.
  (d) Annual Ranking of States and Review of Most and Least 
Successful Work Programs.--
          (1) Annual ranking of states.--The Secretary shall 
        rank annually the States to which grants are paid under 
        section 403 in the order of their success in placing 
        recipients of assistance under the State program funded 
        under this part into long-term private sector jobs, 
        reducing the overall welfare caseload, and, when a 
        practicable method for calculating this information 
        becomes available, diverting individuals from formally 
        applying to the State program and receiving assistance. 
        In ranking States under this subsection, the Secretary 
        shall take into account the average number of minor 
        children living at home in families in the State that 
        have incomes below the poverty line and the amount of 
        funding provided each State for such families.
          (2) Annual review of most and least successful work 
        programs.--The Secretary shall review the programs of 
        the 3 States most recently ranked highest under 
        paragraph (1) and the 3 States most recently ranked 
        lowest under paragraph (1) that provide parents with 
        work experience, assistance in finding employment, and 
        other work preparation activities and support services 
        to enable the families of such parents to leave the 
        program and become self-sufficient.
  (e) Annual Ranking of States and Review of Issues Relating to 
Out-of-Wedlock Births.--
          (1) In general.--The Secretary shall annually rank 
        States to which grants are made under section 403 based 
        on the following ranking factors:
                  (A) Absolute out-of-wedlock ratios.--The 
                ratio represented by--
                          (i) the total number of out-of-
                        wedlock births in families receiving 
                        assistance under the State program 
                        under this part in the State for the 
                        most recent year for which information 
                        is available; over
                          (ii) the total number of births in 
                        families receiving assistance under the 
                        State program under this part in the 
                        State for the year.
                  (B) Net changes in the out-of-wedlock 
                ratio.--The difference between the ratio 
                described in subparagraph (A) with respect to a 
                State for the most recent year for which such 
                information is available and the ratio with 
                respect to the State for the immediately 
                preceding year.
          (2) Annual review.--The Secretary shall review the 
        programs of the 5 States most recently ranked highest 
        under paragraph (1) and the 5 States most recently 
        ranked the lowest under paragraph (1).
  (f) State-Initiated Evaluations.--A State shall be eligible 
to receive funding to evaluate the State program funded under 
this part if--
          (1) the State submits a proposal to the Secretary for 
        the evaluation;
          (2) the Secretary determines that the design and 
        approach of the evaluation is rigorous and is likely to 
        yield information that is credible and will be useful 
        to other States; and
          (3) unless otherwise waived by the Secretary, the 
        State contributes to the cost of the evaluation, from 
        non-Federal sources, an amount equal to at least 10 
        percent of the cost of the evaluation.
  (g) Report on Circumstances of Certain Children and 
Families.--
          (1) In general.--Beginning 3 years after the date of 
        the enactment of this section, the Secretary of Health 
        and Human Services shall prepare and submit to the 
        Committees on Ways and Means and on Education and the 
        Workforce of the House of Representatives and to the 
        Committees on Finance and on Labor and Resources of the 
        Senate annual reports that examine in detail the 
        matters described in paragraph (2) with respect to each 
        of the following groups for the period after such 
        enactment:
                  (A) Individuals who were children in families 
                that have become ineligible for assistance 
                under a State program funded under this part by 
                reason of having reached a time limit on the 
                provision of such assistance.
                  (B) Children born after such date of 
                enactment to parents who, at the time of such 
                birth, had not attained 20 years of age.
                  (C) Individuals who, after such date of 
                enactment, became parents before attaining 20 
                years of age.
          (2) Matters described.--The matters described in this 
        paragraph are the following:
                  (A) The percentage of each group that has 
                dropped out of secondary school (or the 
                equivalent), and the percentage of each group 
                at each level of educational attainment.
                  (B) The percentage of each group that is 
                employed.
                  (C) The percentage of each group that has 
                been convicted of a crime or has been 
                adjudicated as a delinquent.
                  (D) The rate at which the members of each 
                group are born, or have children, out-of-
                wedlock, and the percentage of each group that 
                is married.
                  (E) The percentage of each group that 
                continues to participate in State programs 
                funded under this part.
                  (F) The percentage of each group that has 
                health insurance provided by a private entity 
                (broken down by whether the insurance is 
                provided through an employer or otherwise), the 
                percentage that has health insurance provided 
                by an agency of government, and the percentage 
                that does not have health insurance.
                  (G) The average income of the families of the 
                members of each group.
                  (H) Such other matters as the Secretary deems 
                appropriate.
  (h) Funding of Studies and Demonstrations.--
          (1) In general.--Funds made available to carry out 
        this section for a fiscal year shall be used for the 
        purpose of paying--
                  (A) the cost of conducting the research 
                described in subsection (a);
                  (B) the cost of developing and evaluating 
                innovative approaches for reducing welfare 
                dependency and increasing the well-being of 
                minor children under subsection (b);
                  (C) the Federal share of any State-initiated 
                study approved under subsection (f); and
                  (D) an amount determined by the Secretary to 
                be necessary to operate and evaluate 
                demonstration projects, relating to this part, 
                that are in effect or approved under section 
                1115 as of August 22, 1996, and are continued 
                after such date.
          (2) Allocation.--Of the amount appropriated under 
        paragraph (1) for a fiscal year--
                  (A) 50 percent shall be allocated for the 
                pur-poses described in subparagraphs (A) and 
                (B) of paragraph (1), and
                  (B) 50 percent shall be allocated for the 
                purposes described in subparagraphs (C) and (D) 
                of paragraph (1).
          (3) Demonstrations of innovative strategies.--The 
        Secretary may implement and evaluate demonstrations of 
        innovative and promising strategies which--
                  (A) provide one-time capital funds to 
                establish, expand, or replicate programs;
                  (B) test performance-based grant-to-loan 
                financing in which programs meeting performance 
                targets receive grants while programs not 
                meeting such targets repay funding on a 
                prorated basis; and
                  (C) test strategies in multiple States and 
                types of communities.
  (i) Child Poverty Rates.--
          (1) In general.--Not later than May 31, 1998, and 
        annually thereafter, the chief executive officer of 
        each State shall submit to the Secretary a statement of 
        the child poverty rate in the State as of such date of 
        enactment or the date of the most recent prior 
        statement under this paragraph.
          (2) Submission of corrective action plan.--Not later 
        than 90 days after the date a State submits a statement 
        under paragraph (1) which indicates that, as a result 
        of the amendments made by section 103 of the Personal 
        Responsibility and Work Opportunity Reconciliation Act 
        of 1996, the child poverty rate of the State has 
        increased by 5 percent or more since the most recent 
        prior statement under paragraph (1), the State shall 
        prepare and submit to the Secretary a corrective action 
        plan in accordance with paragraph (3).
          (3) Contents of plan.--A corrective action plan 
        submitted under paragraph (2) shall outline the manner 
        in which the State will reduce the child poverty rate 
        in the State. The plan shall include a description of 
        the actions to be taken by the State under such plan.
          (4) Compliance with plan.--A State that submits a 
        corrective action plan that the Secretary has found 
        contains the information required by this subsection 
        shall implement the corrective action plan until the 
        State determines that the child poverty rate in the 
        State is less than the lowest child poverty rate on the 
        basis of which the State was required to submit the 
        corrective action plan.
          (5) Methodology.--The Secretary shall prescribe 
        regulations establishing the methodology by which a 
        State shall determine the child poverty rate in the 
        State. The methodology shall take into account factors 
        including the number of children who receive free or 
        reduced-price lunches, the number of supplemental 
        nutrition assistance program benefits households, and, 
        to the extent available, county-by-county estimates of 
        children in poverty as determined by the Census Bureau.
  (j) Evaluation of Welfare-To-Work Programs.--
          (1) Evaluation.--The Secretary, in consultation with 
        the Secretary of Labor and the Secretary of Housing and 
        Urban Development--
                  (A) shall develop a plan to evaluate how 
                grants made under sections 403(a)(5) and 
                412(a)(3) have been used;
                  (B) may evaluate the use of such grants by 
                such grantees as the Secretary deems 
                appropriate, in accordance with an agreement 
                entered into with the grantees after good-faith 
                negotiations; and
                  (C) is urged to include the following outcome 
                measures in the plan developed under 
                subparagraph (A):
                          (i) Placements in unsubsidized 
                        employment, and placements in 
                        unsubsidized employment that last for 
                        at least 6 months.
                          (ii) Placements in the private and 
                        public sectors.
                          (iii) Earnings of individuals who 
                        obtain employment.
                          (iv) Average expenditures per 
                        placement.
          (2) Reports to the congress.--
                  (A) In general.--Subject to subparagraphs (B) 
                and (C), the Secretary, in consultation with 
                the Secretary of Labor and the Secretary of 
                Housing and Urban Development, shall submit to 
                the Congress reports on the projects funded 
                under section 403(a)(5) and 412(a)(3) and on 
                the evaluations of the projects.
                  (B) Interim report.--Not later than January 
                1, 1999, the Secretary shall submit an interim 
                report on the matter described in subparagraph 
                (A).
                  (C) Final report.--Not later than January 1, 
                2001, (or at a later date, if the Secretary 
                informs the Committees of the Congress with 
                jurisdiction over the subject matter of the 
                report) the Secretary shall submit a final 
                report on the matter described in subparagraph 
                (A).

           *       *       *       *       *       *       *


      B. Changes in Existing Law Proposed by the Bill, as Reported

    In compliance with clause 3(e)(1)(B) of rule XIII of the 
Rules of the House of Representatives, changes in existing law 
proposed by the bill, as reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italics, existing law in 
which no change is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e)(1)(B) of rule XIII of the 
Rules of the House of Representatives, changes in existing law 
made by the bill, as reported, are shown as follows (existing 
law proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                          SOCIAL SECURITY ACT




           *       *       *       *       *       *       *
TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH 
CHILDREN AND FOR CHILD-WELFARE SERVICES

           *       *       *       *       *       *       *



   PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY 
FAMILIES

           *       *       *       *       *       *       *


[SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

  [(a) Research.--The Secretary, directly or through grants, 
contracts, or interagency agreements, shall conduct research on 
the benefits, effects, and costs of operating different State 
programs funded under this part, including time limits relating 
to eligibility for assistance. The research shall include 
studies on the effects of different programs and the operation 
of such programs on welfare dependency, illegitimacy, teen 
pregnancy, employment rates, child well-being, and any other 
area the Secretary deems appropriate. The Secretary shall also 
conduct research on the costs and benefits of State activities 
under section 407.
  [(b) Development and Evaluation of Innovative Approaches To 
Reducing Welfare Dependency and Increasing Child Well-Being.--
          [(1) In general.--The Secretary may assist States in 
        developing, and shall evaluate, innovative approaches 
        for reducing welfare dependency and increasing the 
        well-being of minor children living at home with 
        respect to recipients of assistance under programs 
        funded under this part. The Secretary may provide funds 
        for training and technical assistance to carry out the 
        approaches developed pursuant to this paragraph.
          [(2) Evaluations.--In performing the evaluations 
        under paragraph (1), the Secretary shall, to the 
        maximum extent feasible, use random assignment as an 
        evaluation methodology.
  [(c) Dissemination of Information.--The Secretary shall 
develop innovative methods of disseminating information on any 
research, evaluations, and studies conducted under this 
section, including the facilitation of the sharing of 
information and best practices among States and localities 
through the use of computers and other technologies.
  [(d) Annual Ranking of States and Review of Most and Least 
Successful Work Programs.--
          [(1) Annual ranking of states.--The Secretary shall 
        rank annually the States to which grants are paid under 
        section 403 in the order of their success in placing 
        recipients of assistance under the State program funded 
        under this part into long-term private sector jobs, 
        reducing the overall welfare caseload, and, when a 
        practicable method for calculating this information 
        becomes available, diverting individuals from formally 
        applying to the State program and receiving assistance. 
        In ranking States under this subsection, the Secretary 
        shall take into account the average number of minor 
        children living at home in families in the State that 
        have incomes below the poverty line and the amount of 
        funding provided each State for such families.
          [(2) Annual review of most and least successful work 
        programs.--The Secretary shall review the programs of 
        the 3 States most recently ranked highest under 
        paragraph (1) and the 3 States most recently ranked 
        lowest under paragraph (1) that provide parents with 
        work experience, assistance in finding employment, and 
        other work preparation activities and support services 
        to enable the families of such parents to leave the 
        program and become self-sufficient.
  [(e) Annual Ranking of States and Review of Issues Relating 
to Out-of-Wedlock Births.--
          [(1) In general.--The Secretary shall annually rank 
        States to which grants are made under section 403 based 
        on the following ranking factors:
                  [(A) Absolute out-of-wedlock ratios.--The 
                ratio represented by--
                          [(i) the total number of out-of-
                        wedlock births in families receiving 
                        assistance under the State program 
                        under this part in the State for the 
                        most recent year for which information 
                        is available; over
                          [(ii) the total number of births in 
                        families receiving assistance under the 
                        State program under this part in the 
                        State for the year.
                  [(B) Net changes in the out-of-wedlock 
                ratio.--The difference between the ratio 
                described in subparagraph (A) with respect to a 
                State for the most recent year for which such 
                information is available and the ratio with 
                respect to the State for the immediately 
                preceding year.
          [(2) Annual review.--The Secretary shall review the 
        programs of the 5 States most recently ranked highest 
        under paragraph (1) and the 5 States most recently 
        ranked the lowest under paragraph (1).
  [(f) State-Initiated Evaluations.--A State shall be eligible 
to receive funding to evaluate the State program funded under 
this part if--
          [(1) the State submits a proposal to the Secretary 
        for the evaluation;
          [(2) the Secretary determines that the design and 
        approach of the evaluation is rigorous and is likely to 
        yield information that is credible and will be useful 
        to other States; and
          [(3) unless otherwise waived by the Secretary, the 
        State contributes to the cost of the evaluation, from 
        non-Federal sources, an amount equal to at least 10 
        percent of the cost of the evaluation.
  [(g) Report on Circumstances of Certain Children and 
Families.--
          [(1) In general.--Beginning 3 years after the date of 
        the enactment of this section, the Secretary of Health 
        and Human Services shall prepare and submit to the 
        Committees on Ways and Means and on Education and the 
        Workforce of the House of Representatives and to the 
        Committees on Finance and on Labor and Resources of the 
        Senate annual reports that examine in detail the 
        matters described in paragraph (2) with respect to each 
        of the following groups for the period after such 
        enactment:
                  [(A) Individuals who were children in 
                families that have become ineligible for 
                assistance under a State program funded under 
                this part by reason of having reached a time 
                limit on the provision of such assistance.
                  [(B) Children born after such date of 
                enactment to parents who, at the time of such 
                birth, had not attained 20 years of age.
                  [(C) Individuals who, after such date of 
                enactment, became parents before attaining 20 
                years of age.
          [(2) Matters described.--The matters described in 
        this paragraph are the following:
                  [(A) The percentage of each group that has 
                dropped out of secondary school (or the 
                equivalent), and the percentage of each group 
                at each level of educational attainment.
                  [(B) The percentage of each group that is 
                employed.
                  [(C) The percentage of each group that has 
                been convicted of a crime or has been 
                adjudicated as a delinquent.
                  [(D) The rate at which the members of each 
                group are born, or have children, out-of-
                wedlock, and the percentage of each group that 
                is married.
                  [(E) The percentage of each group that 
                continues to participate in State programs 
                funded under this part.
                  [(F) The percentage of each group that has 
                health insurance provided by a private entity 
                (broken down by whether the insurance is 
                provided through an employer or otherwise), the 
                percentage that has health insurance provided 
                by an agency of government, and the percentage 
                that does not have health insurance.
                  [(G) The average income of the families of 
                the members of each group.
                  [(H) Such other matters as the Secretary 
                deems appropriate.
  [(h) Funding of Studies and Demonstrations.--
          [(1) In general.--Funds made available to carry out 
        this section for a fiscal year shall be used for the 
        purpose of paying--
                  [(A) the cost of conducting the research 
                described in subsection (a);
                  [(B) the cost of developing and evaluating 
                innovative approaches for reducing welfare 
                dependency and increasing the well-being of 
                minor children under subsection (b);
                  [(C) the Federal share of any State-initiated 
                study approved under subsection (f); and
                  [(D) an amount determined by the Secretary to 
                be necessary to operate and evaluate 
                demonstration projects, relating to this part, 
                that are in effect or approved under section 
                1115 as of August 22, 1996, and are continued 
                after such date.
          [(2) Allocation.--Of the amount appropriated under 
        paragraph (1) for a fiscal year--
                  [(A) 50 percent shall be allocated for the 
                pur-poses described in subparagraphs (A) and 
                (B) of paragraph (1), and
                  [(B) 50 percent shall be allocated for the 
                purposes described in subparagraphs (C) and (D) 
                of paragraph (1).
          [(3) Demonstrations of innovative strategies.--The 
        Secretary may implement and evaluate demonstrations of 
        innovative and promising strategies which--
                  [(A) provide one-time capital funds to 
                establish, expand, or replicate programs;
                  [(B) test performance-based grant-to-loan 
                financing in which programs meeting performance 
                targets receive grants while programs not 
                meeting such targets repay funding on a 
                prorated basis; and
                  [(C) test strategies in multiple States and 
                types of communities.
  [(i) Child Poverty Rates.--
          [(1) In general.--Not later than May 31, 1998, and 
        annually thereafter, the chief executive officer of 
        each State shall submit to the Secretary a statement of 
        the child poverty rate in the State as of such date of 
        enactment or the date of the most recent prior 
        statement under this paragraph.
          [(2) Submission of corrective action plan.--Not later 
        than 90 days after the date a State submits a statement 
        under paragraph (1) which indicates that, as a result 
        of the amendments made by section 103 of the Personal 
        Responsibility and Work Opportunity Reconciliation Act 
        of 1996, the child poverty rate of the State has 
        increased by 5 percent or more since the most recent 
        prior statement under paragraph (1), the State shall 
        prepare and submit to the Secretary a corrective action 
        plan in accordance with paragraph (3).
          [(3) Contents of plan.--A corrective action plan 
        submitted under paragraph (2) shall outline the manner 
        in which the State will reduce the child poverty rate 
        in the State. The plan shall include a description of 
        the actions to be taken by the State under such plan.
          [(4) Compliance with plan.--A State that submits a 
        corrective action plan that the Secretary has found 
        contains the information required by this subsection 
        shall implement the corrective action plan until the 
        State determines that the child poverty rate in the 
        State is less than the lowest child poverty rate on the 
        basis of which the State was required to submit the 
        corrective action plan.
          [(5) Methodology.--The Secretary shall prescribe 
        regulations establishing the methodology by which a 
        State shall determine the child poverty rate in the 
        State. The methodology shall take into account factors 
        including the number of children who receive free or 
        reduced-price lunches, the number of supplemental 
        nutrition assistance program benefits households, and, 
        to the extent available, county-by-county estimates of 
        children in poverty as determined by the Census Bureau.
  [(j) Evaluation of Welfare-To-Work Programs.--
          [(1) Evaluation.--The Secretary, in consultation with 
        the Secretary of Labor and the Secretary of Housing and 
        Urban Development--
                  [(A) shall develop a plan to evaluate how 
                grants made under sections 403(a)(5) and 
                412(a)(3) have been used;
                  [(B) may evaluate the use of such grants by 
                such grantees as the Secretary deems 
                appropriate, in accordance with an agreement 
                entered into with the grantees after good-faith 
                negotiations; and
                  [(C) is urged to include the following 
                outcome measures in the plan developed under 
                subparagraph (A):
                          [(i) Placements in unsubsidized 
                        employment, and placements in 
                        unsubsidized employment that last for 
                        at least 6 months.
                          [(ii) Placements in the private and 
                        public sectors.
                          [(iii) Earnings of individuals who 
                        obtain employment.
                          [(iv) Average expenditures per 
                        placement.
          [(2) Reports to the congress.--
                  [(A) In general.--Subject to subparagraphs 
                (B) and (C), the Secretary, in consultation 
                with the Secretary of Labor and the Secretary 
                of Housing and Urban Development, shall submit 
                to the Congress reports on the projects funded 
                under section 403(a)(5) and 412(a)(3) and on 
                the evaluations of the projects.
                  [(B) Interim report.--Not later than January 
                1, 1999, the Secretary shall submit an interim 
                report on the matter described in subparagraph 
                (A).
                  [(C) Final report.--Not later than January 1, 
                2001, (or at a later date, if the Secretary 
                informs the Committees of the Congress with 
                jurisdiction over the subject matter of the 
                report) the Secretary shall submit a final 
                report on the matter described in subparagraph 
                (A).]

SEC. 413. EVALUATION OF TEMPORARY ASSISTANCE FOR NEEDY FAMILIES AND 
                    RELATED PROGRAMS.

  (a) Evaluation of the Impacts of TANF.--The Secretary shall 
conduct research on the effect of State programs funded under 
this part and any other State program funded with qualified 
State expenditures (as defined in section 409(a)(7)(B)(i)) on 
employment, self-sufficiency, child well-being, unmarried 
births, marriage, poverty, economic mobility, and other factors 
as determined by the Secretary.
  (b) Evaluation of Grants to Improve Child Well-being by 
Promoting Healthy Marriage and Responsible Fatherhood.--The 
Secretary shall conduct research to determine the effects of 
the grants made under section 403(a)(2) on child well-being, 
marriage, family stability, economic mobility, poverty, and 
other factors as determined by the Secretary.
  (c) Dissemination of Information.--The Secretary shall, in 
consultation with States receiving funds provided under this 
part, develop methods of disseminating information on any 
research, evaluation, or study conducted under this section, 
including facilitating the sharing of information and best 
practices among States and localities.
  (d) State-initiated Evaluations.--A State shall be eligible 
to receive funding to evaluate the State program funded under 
this part or any other State program funded with qualified 
State expenditures (as defined in section 409(a)(7)(B)(i)) if--
          (1) the State submits to the Secretary a description 
        of the proposed evaluation;
          (2) the Secretary determines that the design and 
        approach of the proposed evaluation is rigorous and is 
        likely to yield information that is credible and will 
        be useful to other States; and
          (3) unless waived by the Secretary, the State 
        contributes to the cost of the evaluation, from non-
        Federal sources, an amount equal to at least 25 percent 
        of the cost of the proposed evaluation.
  (e) Census Bureau Research.--
          (1) The Bureau of the Census shall implement or 
        enhance household surveys of program participation, in 
        consultation with the Secretary and the Burueau of 
        Labor Statistics and made available to interested 
        parties, to allow for the assessment of the outcomes of 
        continued welfare reform on the economic and child 
        well-being of low-income families with children, 
        including those who received assistance or services 
        from a State program funded under this part or any 
        other State program funded with qualified State 
        expenditures (as defined in section 409(a)(7)(B)(i)). 
        The content of the surveys should include such 
        information as may be necessary to examine the issues 
        of unmarried childbearing, marriage, welfare dependency 
        and compliance with work requirements, the beginning 
        and ending of spells of assistance, work, earnings and 
        employment stability, and the well-being of children.
          (2) To carry out the activities specified in 
        paragraph (1), the Bureau of the Census, the Secretary, 
        and the Bureau of Labor Statistics shall consider ways 
        to improve the surveys and data derived from the 
        surveys to--
                  (A) address underreporting of the receipt of 
                means-tested benefits and tax benefits for low-
                income individuals and families;
                  (B) increase understanding of poverty spells 
                and long-term poverty, including by 
                facilitating the matching of information to 
                better understand intergenerational poverty;
                  (C) generate a better geographical 
                understanding of poverty such as through State-
                based estimates and measures of neighborhood 
                poverty;
                  (D) increase understanding of the effects of 
                means-tested benefits and tax benefits on the 
                earnings of low-income families; and
                  (E) improve how poverty and economic well-
                being are measured, including through the use 
                of consumption measures.
  (f) Research and Evaluation Conducted Under This Section.--
Research and evaluation conducted under this section designed 
to determine the effects of a program or policy (other than 
research conducted under subsection (e)) shall use experimental 
designs using random assignment or other reliable, evidence-
based research methodologies that allow for the strongest 
possible causal inferences when random assignment is not 
feasible.
  (g) Development of What Works Clearinghouse of Proven and 
Promising Approaches to Move Welfare Recipients Into Work.--
          (1) In general.--The Secretary, in consultation with 
        the Secretary of Labor, shall develop a database (which 
        shall be referred to as the ``What Works Clearinghouse 
        of Proven and Promising Projects to Move Welfare 
        Recipients into Work'') of the projects that used a 
        proven approach or a promising approach in moving 
        welfare recipients into work, based on independent, 
        rigorous evaluations of the projects. The database 
        shall include a separate listing of projects that used 
        a developmental approach in delivering services and a 
        further separate listing of the projects with no or 
        negative effects. The Secretary shall add to the What 
        Works Clearinghouse of Proven and Promising Projects to 
        Move Welfare Recipients into Work data about the 
        projects that, based on an independent, well-conducted 
        experimental evaluation of a program or project, using 
        random assignment or other research methodologies that 
        allow for the strongest possible causal inferences, 
        have shown they are proven, promising, developmental, 
        or ineffective approaches.
          (2) Criteria for evidence of effectiveness of 
        approach.--The Secretary, in consultation with the 
        Secretary of Labor and organizations with experience in 
        evaluating research on the effectiveness of various 
        approaches in delivering services to move welfare 
        recipients into work, shall--
                  (A) establish criteria for evidence of 
                effectiveness; and
                  (B) ensure that the process for establishing 
                the criteria--
                          (i) is transparent;
                          (ii) is consistent across agencies;
                          (iii) provides opportunity for public 
                        comment; and
                          (iv) takes into account efforts of 
                        Federal agencies to identify and 
                        publicize effective interventions, 
                        including efforts at the Department of 
                        Health and Human Services, the 
                        Department of Education, and the 
                        Department of Justice.
          (3) Definitions.--In this subsection:
                  (A) Approach.--The term ``approach'' means a 
                process, product, strategy, or practice that 
                is--
                          (i) research-based, based on the 
                        results of 1 or more empirical studies, 
                        and linked to program-determined 
                        outcomes; and
                          (ii) evaluated using rigorous 
                        research designs.
                  (B) Proven approach.--The term ``proven 
                approach'' means an approach that--
                          (i) meets the requirements of a 
                        promising approach; and
                          (ii) has demonstrated significant 
                        positive outcomes at more than 1 site 
                        in terms of increasing work and 
                        earnings of participants, reducing 
                        poverty and dependence, or 
                        strengthening families.
                  (C) Promising approach.--The term ``promising 
                approach'' means an approach--
                          (i) that meets the requirements of 
                        subparagraph (D)(i);
                          (ii) that has been evaluated using 
                        well-designed and rigorous randomized 
                        controlled or quasi-experimental 
                        research designs;
                          (iii) that has demonstrated 
                        significant positive outcomes at only 1 
                        site in terms of increasing work and 
                        earnings of participants, reducing 
                        poverty and dependence, or 
                        strengthening families; and
                          (iv) under which the benefits of the 
                        positive outcomes have exceeded the 
                        costs of achieving the outcomes.
                  (D) Developmental approach.--The term 
                ``developmental approach'' means an approach 
                that--
                          (i) is research-based, grounded in 
                        relevant empirically-based knowledge, 
                        and linked to program-determined 
                        outcomes;
                          (ii) is evaluated using rigorous 
                        research designs; and
                          (iii) has yet to demonstrate a 
                        significant positive outcome in terms 
                        of increasing work and earnings of 
                        participants in a cost-effective way.

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