This Act may be cited as the “Welfare Reform and Upward Mobility Act”.

The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

Section 1105(a) of title 31, United States Code, is amended by adding at the end the following:

“(40) the total level of means-tested welfare spending (as defined in section 3 of the Congressional Budget Act of 1974 (2 U.S.C. 622)) by the Federal Government and the total level of means-tested welfare spending by all State and local governments and the Federal Government for the most recent fiscal year for which such data is available and estimated levels for the fiscal year during which the budget submission of the President is made, for the fiscal year beginning on October 1 of the calendar year during which the budget submission is made, and for each of the 9 ensuing fiscal years.”.

For each of fiscal years 2018 through 2028, each State that receives means-tested welfare spending (as defined in section 3 of the Congressional Budget Act of 1974 (2 U.S.C. 622), as amended by this Act) by the Federal Government shall submit to the Director of the Congressional Budget Office an annual report regarding the total amount of means-tested welfare spending by the State for the fiscal year.

Section 3 of the Congressional Budget Act of 1974 (2 U.S.C. 622) is amended by adding at the end the following:

“(12) (A) The term ‘means-tested welfare spending’—

“(i) means spending for any Federal program that is designed to specifically provide assistance or benefits exclusively to low-income Americans;

“(ii) does not include such a program if the program—

“(I) is based on earned eligibility;

“(II) is not need-based;

“(III) is a program designed exclusively or primarily for veterans of military service; or

“(IV) offers universal or near universal eligibility to the working population and their dependents; and

“(iii) includes community and economic development programs targeted to low-income communities or populations.

“(B) For purposes of subparagraph (A), the spending on the following Federal programs shall be means-tested welfare spending:

“(i) CASH AND GENERAL PROGRAMS.—

“(I) Supplemental Security Income.

“(II) Earned Income Tax Credit (Refundable Portion).

“(III) Refundable Child Credit.

“(IV) Temporary Assistance to Needy Families.

“(V) Title IV–E Foster Care.

“(VI) Title IV–E Adoption Assistance.

“(VII) General Assistance to Indians.

“(VIII) Assets for Independence.

“(ii) MEDICAL.—

“(I) Medicaid.

“(II) State Children’s Health Insurance Program.

“(III) Indian Health Services.

“(IV) Consolidated Health Centers/Community Health Centers.

“(V) Maternal and Child Health.

“(VI) Healthy Start.

“(VII) Refundable Premiums and Out of Pocket Subsidies under the Patient Protection and Affordable Health Care Act (PPACA).

“(iii) FOOD.—

“(I) Food Stamps Program.

“(II) School Lunch Program.

“(III) Women, Infant and Children (WIC) Food Program.

“(IV) School Breakfast.

“(V) Child Care Food Program.

“(VI) Nutrition Program for the Elderly, Nutrition Service Incentives.

“(VII) Summer Food Service Program.

“(VIII) Commodity Supplemental Food Program.

“(IX) Temporary Emergency Food Program.

“(X) Needy Families.

“(XI) Farmer’s Market Nutrition Program.

“(XII) Special Milk Program.

“(iv) HOUSING.—

“(I) Section 8 Housing (HUD).

“(II) Public Housing (HUD).

“(III) State Housing Expenditures.

“(IV) Home Investment Partnership Program (HUD).

“(V) Homeless Assistance Grants (HUD).

“(VI) Rural Housing Insurance Fund (Agriculture).

“(VII) Rural Housing Service (Agriculture).

“(VIII) Housing for the Elderly (HUD).

“(IX) Native American Housing Block Grants (HUD).

“(X) Other Assisted Housing Programs (HUD).

“(XI) Housing for Persons with Disabilities (HUD).

“(v) ENERGY AND UTILITIES.—

“(I) Low-Income Home Energy Assistance.

“(II) Universal Service Fund—Subsidized Phone Service for Low-Income Persons.

“(III) Weatherization.

“(vi) EDUCATION.—

“(I) Federal Pell Grants.

“(II) Grants for improving basic programs operated by local educational agencies.

“(III) Federal TRIO Programs.

“(IV) Federal Supplemental Educational Opportunity Grants.

“(V) Programs for the education of migratory children.

“(VI) Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP).

“(VII) Education for Homeless Children and Youth.

“(VIII) Leveraging Educational Assistance Partnership (LEAP) Program.

“(IX) Even Start.

“(vii) TRAINING.—

“(I) Job Corps.

“(II) Youth Opportunity Grants.

“(III) Adult Employment and Training Activities.

“(IV) Senior Community Service Employment.

“(V) Employment and Training Program, of the Food Stamp Program or the Supplemental Nutrition Assistance Program.

“(VI) Workforce Investment Activities for Migrant and Seasonal Farmworkers.

“(VII) YouthBuild.

“(VIII) Workforce Investment Activities for Indians or Native Hawaiians.

“(viii) SERVICES.—

“(I) Social Services Block Grant.

“(II) Community Services Block Grant.

“(III) Services for Refugees, Asylees, and Other Special Populations.

“(IV) State and Community Programs on Aging.

“(V) Legal Assistance Grants and Contracts.

“(VI) Family Planning Services.

“(VII) Emergency Food and Shelter.

“(VIII) Healthy Marriage Promotion and Responsible Fatherhood Grants.

“(IX) AmeriCorps VISTA.

“(ix) CHILD CARE AND CHILD DEVELOPMENT.—

“(I) Head Start (including Early Head Start).

“(II) Child Care and Development Block Grant (not under the Temporary Assistance to Needy Families Program).

“(III) Child Care and Development Block Grant (under the Temporary Assistance to Needy Families Program).

“(x) COMMUNITY DEVELOPMENT.—

“(I) Community Development Block Grant.

“(II) Economic Development Administration.

“(III) Appalachian Regional Development.

“(IV) Empowerment Zones, Enterprise Communities, Renewal Communities.

“(V) Urban Development Block Grant.

“(C) For purposes of subparagraph (A), spending on the following Federal programs shall not be means-tested welfare spending:

“(i) The Social Security Disability Insurance program.

“(ii) Medicare.

“(iii) Retirement insurance benefits and survivor benefits under the Social Security program.

“(iv) Any program designed exclusively or primarily for veterans of military service.

“(v) Unemployment insurance benefits.

“(vi) Programs designed specifically to provide benefits to workers to compensate for job-related injuries or illnesses.

“(D) The term ‘means-tested welfare spending’ includes the full cost of benefits and services provided under a program and the administrative costs for operating the program, subject to the limitations under subparagraph (E).

“(E) (i) (I) For purposes of this paragraph, only the refundable portion of the following tax credits shall be means-tested welfare spending:

“(aa) The earned income tax credit.

“(bb) The child tax credit.

“(cc) The making work pay tax credit.

“(II) For purposes of this paragraph, only the refundable portion of the premium and out of pocket health care subsidies to be paid under the Patient Protection and Affordable Health Care Act shall be means-tested welfare spending.

“(III) For purposes of this clause, the term ‘refundable portion’ means the portion of the credit which is paid to an individual in excess of the amount of Federal income tax owed by the individual.

“(ii) For purposes of this paragraph, only the costs of the free and reduced price segments of the school lunch and school breakfast programs shall be means-tested welfare spending.

“(F) For purposes of this paragraph expenditures by State and local governments of funds that are—

“(i) obtained by the State and local government from taxes, fees, or other sources of revenue established by the State or local government; and

“(ii) are not received as any form of grant from the Federal Government,

shall not be Federal means-tested welfare spending, without regard to whether such State and local expenditures take the form of contributions to a Federal program described in subparagraph (A) or listed in subparagraph (B).”.

(a) Declaration of policy.—Section 2 of the Food and Nutrition Act of 2008 (7 U.S.C. 2011) is amended by adding at the end the following: “Congress further finds that it should also be the purpose of the supplemental nutrition assistance program to increase employment, to encourage healthy marriage, and to promote prosperous self-sufficiency, which means the ability of households to maintain an income above the poverty level without services and benefits from the Federal Government.”.

(b) Definitions.—

(1) FOOD.—Section 3(k) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(k)) is amended by inserting before the period at the end the following: “, except that a food, food product, meal, or other item described in this subsection shall be considered a food under this Act only if it is an essential (as determined by the Secretary)”.

(2) SUPERVISED JOB SEARCH.—Section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012) is amended—

(A) by redesignating subsections (t) through (v) as subsections (u) through (w), respectively; and

(B) by inserting after subsection (s) the following:

“(t) Supervised job search.—The term ‘supervised job search’ means a job search program that has the following characteristics:

“(1) The job search occurs at an official location where the presence and activity of the recipient can be directly observed, supervised, and monitored.

“(2) The entry, time onsite, and exit of the recipient from the official job search location are recorded in a manner that prevents fraud.

“(3) The recipient is expected to remain and undertake job search activities at the job search center.

“(4) The quantity of time the recipient is observed and monitored engaging in job search at the official location is recorded for purposes of compliance with the work and work activation requirements of sections 6(o) and 30.”.

(c) Work requirement for able-Bodied adults without dependents.—Section 6(o) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)) is amended—

(1) in paragraph (2)—

(A) in the matter preceding subparagraph (A), by striking “not less than 3 months (consecutive or otherwise)” and inserting “more than 1 month”;

(B) in subparagraph (C), by striking “or” at the end;

(C) in subparagraph (D), by striking the period at the end and inserting “; or”; and

(D) by adding at the end the following:

“(E) participate in supervised job search for at least 8 hours per week.”;

(2) in paragraph (4), by adding at the end the following:

“(C) TERMINATION.—Subparagraph (A) shall not apply with respect to any fiscal year that begins after the effective date of the Welfare Reform and Upward Mobility Act.”;

(3) in paragraph (6)—

(A) in the paragraph heading, by striking “15-percent” and inserting “5-percent”;

(B) in subparagraph (A)(ii)(IV), by striking “3 months” and inserting “1 month”; and

(C) in subparagraph (D), by striking “15 percent” and inserting “5 percent”; and

(4) by adding at the end the following:

“(8) PROMOTING WORK.—As a condition of receiving supplemental nutrition assistance program funds under this Act, a State agency shall provide each individual subject to the work requirement of this subsection with the opportunity to participate in an activity selected by the State from among the options described in subparagraphs (B), (C), and (E) of paragraph (2).

“(9) PENALTIES FOR INADEQUATE STATE PERFORMANCE.—If a State agency fails to fully comply with this section, including the requirement to terminate the benefits of individuals who fail to fulfill the work requirements described in paragraph (2) during a fiscal quarter, the funding allotment of the State for the supplemental nutrition assistance program shall be reduced by 10 percent for the quarter that begins 180 days after the first day of the quarter in which the noncompliance occurred.”.

The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) is amended by adding at the end the following:

Section 407 of the Social Security Act (42 U.S.C. 607) is amended by adding at the end the following new subsection:

“(j) Work preparation program.—

“(1) IN GENERAL.—A State to which a grant is made under section 403 for a fiscal year, in addition to achieving the minimum participation rates required for the fiscal year under paragraphs (1) and (2) of subsection (a), shall operate a work preparation program for eligible participants that meets the requirements of this subsection and shall achieve the minimum work preparation participation rate specified in the following table for each quarter of the fiscal year with respect to all eligible participants receiving assistance under 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)) who are not engaged in employment in any month during the fiscal year:

“(2) ELIGIBLE PARTICIPANT DEFINED.—In this subsection, the term ‘eligible participant’ means, with respect to a month, an individual who—

“(A) is a parent of a family in which a parent or child receives assistance under 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)) in the month; and

“(B) is employed less than 40 hours in the month.

“(3) SPECIAL RULES FOR MARRIED COUPLES WITH CHILDREN.—In the case of a married 2-parent family—

“(A) the parents shall only be considered to be eligible participants for a month for purposes of this subsection if the sum of the combined hours of employment for the month for both spouses is less than 40 hours;

“(B) if the parents are eligible participants for a month for purposes of this subsection, only one of the parents shall be required to participate in the work preparation program under this subsection in a month; and

“(C) the sum of the hours required of the parents for purposes of meeting the monthly minimum participation rate required for purposes of subsection (a) and meeting the monthly work preparation rate required under this subsection shall not be greater than the hours required for a single head of household for purposes of meeting such rates.

“(4) WORK PREPARATION REQUIREMENTS.—In order to be considered to be engaging in work preparation for month, an eligible participant shall engage in one or more work preparation activities (as defined in paragraph (5)) for at least an average of 30 hours per week during the month.

“(5) WORK PREPARATION ACTIVITIES DEFINED.—In this subsection, the term ‘work preparation activity’ means the following:

“(A) Work experience (including work associated with the refurbishing of publicly assisted housing) if sufficient private sector employment is not available.

“(B) On-the-job training.

“(C) Job readiness assistance.

“(D) Community service programs (not to exceed the maximum number of hours determined under paragraph (9)).

“(E) Workfare programs (not to exceed the maximum number of hours determined under paragraph (9)).

“(F) Vocational educational training (not to exceed 12 months with respect to any individual).

“(G) Job skills training directly related to employment.

“(H) Education directly related to employment, in the case of an eligible participant who has not received a high school diploma or a certificate of high school equivalency.

“(I) Satisfactory attendance at secondary school or in a course of study leading to a certificate of general equivalence, in the case of an eligible participant who has not completed secondary school or received such a certificate.

“(J) The provision of child care services to an individual who is participating in a community service program.

“(K) Supervised job search (as defined in paragraph (7)).

“(6) PRIORITY FOR COMMUNITY SERVICE.—At least 20 percent of the eligible participants who are required to participate in work preparation for a month shall participate in a community service program or a workfare program.

“(7) SUPERVISED JOB SEARCH DEFINED.—In this subsection, the term ‘supervised job search’ means a job search program that has the following characteristics:

“(A) The job search occurs at an official location where the presence and activity of the eligible participant can be directly observed, supervised, and monitored.

“(B) The eligible participant’s entry, time onsite, and exit from the official job search location are recorded in a manner that prevents fraud.

“(C) The eligible participant is expected to remain and undertake job search activities at the job search center.

“(D) The quantity of time the eligible participant is observed and monitored engaging in job search at the official location is recorded for purposes of compliance with the work and work activation requirements of sections 6(o) and 30 of the Food and Nutrition Act of 2008.

“(8) PENALTIES AGAINST NONPERFORMING INDIVIDUALS.—

“(A) IN GENERAL.—If an eligible participant fails to fully perform the work preparation activities required in accordance with this subsection, the State shall—

“(i) reduce the amount of assistance otherwise payable to the entire family of the eligible participant pro rata (or more, at the option of the State) with respect to the month immediately after any month in which the eligible participant so fails to perform; or

“(ii) terminate such assistance.

“(B) PRO RATA REDUCTION.—For purposes of subparagraph (A)(i), the amount of a pro rata reduction in assistance shall be determined by multiplying the amount of monthly assistance that would, in the absence of the application of this paragraph be paid to the entire family, by the ratio of—

“(i) the hours of required work and work preparation activities performed by the eligible participant during the month; over

“(ii) the number or hours of work and work preparation the State required the eligible participant to perform in accordance with the requirements of this section.

“(9) LIMITATION ON COUNTABLE HOURS OF PARTICIPATION IN COMMUNITY SERVICE OR WORKFARE.—

“(A) IN GENERAL.—The maximum number of hours that an eligible participant may be counted as engaging in a community service program or a workfare program in a month for purposes of meeting the minimum work preparation rates for the month under this subsection shall not exceed the total dollar cost of all means-tested benefits received by the eligible participant's family for the month divided by the Federal minimum wage.

“(B) TOTAL DOLLAR COST OF ALL MEANS-TESTED BENEFITS DEFINED.—

“(i) IN GENERAL.—In this subsection, the term ‘total dollar cost of all means-tested benefits’ means the sum of the dollar cost of all benefits received by a family under—

“(I) the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.);

“(II) 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)); and

“(III) any assistance provided to a household, landlord, or public housing agency (as defined in section 3(b)(6) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(6))) to subsidize the rental payment for a dwelling unit, including assistance provided for public housing dwelling units under section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a) and assistance provided under section 8 of that Act (42 U.S.C. 1437f).

“(ii) VALUE OF BENEFITS DURING SANCTION.—For purposes of clause (i), if the dollar value of one or more benefits received by a household in a month has been reduced under paragraph (8) or another sanction requirement, the calculated dollar value of the sanctioned benefits shall equal the dollar value of the benefit that would have been received if the benefit had not been reduced by the sanction.

“(C) ADDITIONAL ACTIVITIES.—Nothing in this paragraph shall prevent a State from requiring an eligible participant to engage in activities not described in subparagraph (A) for additional hours during a month.

“(10) CALCULATION OF WORK PREPARATION PARTICIPATION RATES.—

“(A) DEFINITION OF SANCTIONED RECIPIENT.—In this subsection, the term ‘sanctioned recipient’ means any eligible participant who—

“(i) was required to participate in work preparation in a month;

“(ii) failed to perform the assigned work and work preparation activities so as to meet the relevant hourly requirements; and

“(iii) was sanctioned by a reduced assistance payment in the subsequent month under paragraph (8).

“(B) REQUIREMENTS.—The work preparation participation rate for a State for any quarter of a fiscal year shall equal the average of the monthly participation rates for the State during the 3 months of that quarter.

“(C) MONTHLY PARTICIPATION RATE.—For purposes of subparagraph (B), the monthly participation rate shall equal the ratio of all countable participants to all eligible participants in the month, as determined under subparagraph (D).

“(D) RATIO OF ALL COUNTABLE PARTICIPANTS TO ALL ELIGIBLE PARTICIPANTS.—Subject to subparagraph (E), the ratio of all countable participants to all eligible participants in a month equals the proportion that—

“(i) the sum obtained by adding—

“(I) all eligible participants who—

“(aa) were required by the State to engage in work preparation during the month; and

“(bb) fulfilled the criteria for successful engagement in work preparation during the month; and

“(II) all sanctioned recipients for that month; bears to

“(ii) the average number of eligible participants in the State in that month.

“(E) MULTIPLE ELIGIBLE PARTICIPANTS.—A married couple household consisting of more than 1 eligible participant shall be counted as a single eligible participant for purposes of calculating the participation rate under this paragraph.

“(11) PENALTIES FOR INADEQUATE STATE PERFORMANCE.—

“(A) IN GENERAL.—Beginning in the first quarter of fiscal year 2018 and for each subsequent quarter of fiscal year 2018 and of each subsequent fiscal year, each State shall count the monthly average number of countable participants under this subsection.

“(B) REDUCTION IN FUNDING.—If the monthly average number of countable participants in a State is not sufficient to meet the work preparation participation rate required under paragraph (1) during that quarter, the grant payable to the State under section 403(a)(1) shall be reduced for the fiscal quarter that begins 180 days after the first day of the quarter in which the inadequate performance occurred in accordance with subparagraph (C).

“(C) FUNDING IN PENALIZED QUARTER.—The total amount of funding a State shall receive for a quarter for which funding is reduced under subparagraph (B) shall equal the product obtained by multiplying—

“(i) the total amount of funding that the State would have received in the preceding quarter for the grant payable to the State under section 403(a)(1) if no reduction had been in place; by

“(ii) the ratio of all countable participants to all eligible participants (as determined under paragraph (10)(D)) for the quarter that began 180 days before the first day of the quarter for which funding is reduced.”.

(a) Elimination of separate participation rate requirements for 2-Parent families.—

(1) IN GENERAL.—Section 407 of the Social Security Act (42 U.S.C. 607) is amended—

(A) in subsection (a)—

(i) by striking all through “A State” the first place it appears and inserting the following:

“(a) Participation rate requirements.—A State”; and

(ii) by striking paragraph (2);

(B) in subsection (b)—

(i) in the subsection heading, by striking “Rates” and inserting “Rate”;

(ii) in paragraph (1)(A), by striking “(a)(1)” and inserting “(a)”;

(iii) by striking paragraph (2) and redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively;

(iv) in paragraph (3) (as so redesignated), by striking “paragraphs (1)(B) and (2)(B)” and inserting “paragraph (1)(B)”; and

(v) in paragraph (4) (as so redesignated), by striking “rates” and inserting “rate”; and

(C) in subsection (c)—

(i) in paragraph (1)—

(I) by striking all through “For purposes of subsection (b)(1)(B)(i)” and inserting the following:

“(1) GENERAL RULES.—For purposes of subsection (b)(1)(B)(i)”; and

(II) by striking subparagraph (B); and

(ii) in paragraph (2)(D)—

(I) by striking “paragraphs (1)(B)(i) and (2)(B) of subsection (b)” and inserting “subsection (b)(1)(B)(i)”; and

(II) by striking “in all families and in 2-parent families, respectively,”.

(2) CONFORMING AMENDMENT.—The paragraph heading for section 409(a)(3) of such Act (42 U.S.C. 609(a)(3)) is amended by striking “Rates” and inserting “Rate”.

(b) Application of state option for participation requirement exemption to all families.—Section 407(b)(4) of the Social Security Act (42 U.S.C. 607(b)(4)), as redesignated and amended by subsection (a)(1)(B), is amended—

(1) by striking “an individual who is a single custodial parent caring for” and inserting “a family that includes”; and

(2) by striking “such an individual” and inserting “such a family”.

(c) Application of child under 6 work participation rule to all families.—Section 407(c)(2)(B) of the Social Security Act (42 U.S.C. 607(c)(2)(B)) is amended to read as follows:

“(B) FAMILY WITH CHILD UNDER AGE 6 DEEMED TO BE MEETING WORK PARTICIPATION REQUIREMENTS IF ANY PARENT IS ENGAGED IN WORK FOR 20 HOURS PER WEEK.—For purposes of determining monthly participation rates under subsection (b)(1)(B)(i), a family that includes a child who has not attained 6 years of age is deemed to be engaged in work for a month if any parent is engaged in work for an average of at least 20 hours per week during the month.”.

(d) Effective date.—The amendments made by this section take effect on October 1, 2017.

In this title:

(a) Covered State housing program.—The term “covered State housing program” means a housing program carried out by a State using grant funds awarded under section 404.

(b) Means-Tested housing program.—The term “means-tested housing program” means each of the following Federal programs:

(1) The project-based and tenant-based rental assistance programs under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f).

(2) Public housing assistance under the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.).

(3) The HOME Investment Partnerships Program under title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.).

(4) Homeless Assistance Grants under title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360 et seq.).

(5) Assistance from the Rural Housing Insurance Fund under section 517 of the Housing Act of 1949 (42 U.S.C. 1487).

(6) Assistance from the Rural Housing Service (other than assistance described in paragraph (5)).

(7) The supportive housing for the elderly program under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q).

(8) Native American Housing Block Grants under title I of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4111 et seq.).

(9) The rental assistance programs under section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s) and section 236(f)(2) of the National Housing Act (12 U.S.C. 1715z–1).

(10) The supportive housing for persons with disabilities program under section 811(d)(2) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(d)(2)).

(c) Secretary.—The term “Secretary” means the Secretary of Housing and Urban Development.

(d) State.—The term “State” means a State, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands.

(e) State recipient.—The term “State recipient” means a State that receives a grant under this title.

Effective October 1, 2018, no Federal funds shall be made available to carry out any means-tested housing program and no Federal officer or employee shall take any action to carry out such a program.

With respect to the total amount authorized to be appropriated for means-tested housing programs for fiscal year 2016, there is authorized to be appropriated to carry out section 404, an amount equal to—

(1) such amount for each of fiscal years 2018 through 2023;

(2) 90 percent of such amount for fiscal year 2024;

(3) 80 percent of such amount for fiscal year 2025;

(4) 70 percent of such amount for fiscal year 2026;

(5) 60 percent of such amount for fiscal year 2027; and

(6) 50 percent of such amount for fiscal year 2028.

(a) In general.—Beginning with fiscal year 2018, and for each fiscal year thereafter, the Secretary shall award grants to eligible States—

(1) using amounts authorized to be appropriated under section 403; and

(2) in accordance with this section.

(b) Allotments.—From the amount appropriated to carry out this section for a fiscal year, the Secretary shall allot to each eligible State an amount that bears the same relationship to such appropriated amount as the amount that the State received for means-tested housing programs for the most recent fiscal year for which satisfactory data is available bears to the total amount appropriated for means-tested housing programs for that fiscal year.

(c) Application.—To be eligible to receive a grant under this section, a State shall submit an application to the Secretary that includes the amount the State received for the previous year’s means-tested housing programs.

(d) Use of funds.—A State that receives a grant under this section may only use the amounts of the grant—

(1) to fund housing programs in the State;

(2) to administer the programs described in paragraph (1); and

(3) to provide direct technical assistance, oversight, monitoring, research, and training with respect to the programs described in paragraph (1).

(e) Matching funds.—A State that receives a grant under this section shall provide, toward the cost of the programs assisted under the grant, from non-Federal sources, an amount equal to 20 percent of the amount of the grant.

(f) Flexibility.—Notwithstanding any other provision of Federal law (other than this section), a State that receives a grant under this section—

(1) shall have full flexibility to use the amounts of the grant to finance a housing provider, service, or program; and

(2) in particular, to the extent permitted under State law, may use the amounts of the grant to establish a portable voucher system that allows a parent of a low-income child to use a portion of the grant funds, other available public funds, or private funds to pay some or all of the costs of attendance at a private prekindergarten education program.

(a) Self-Assessments.—A State that receives a grant under section 404 annually shall conduct a comprehensive self-assessment of the effectiveness and progress of the covered State housing programs of the State during the most recent fiscal year in meeting program goals established by the State.

(b) Reports.—

(1) IN GENERAL.—A State that receives a grant under section 404 shall develop and make available to the public—

(A) an online and searchable report containing the self-assessment conducted under subsection (a); and

(B) an improvement plan to strengthen any areas identified in the self-assessment as weaknesses or in need of improvement.

(2) PERSONAL INFORMATION.—A State may not reveal, in a report developed under paragraph (1), any personally identifiable information about any participant in a covered State housing program of the State.

(3) CONTENTS.—A State shall include in each report developed under paragraph (1)—

(A) the total amount of public and private funds received by the State for covered State housing programs and the amount received from each source during the most recent fiscal year;

(B) an explanation of budgetary expenditures for covered State housing programs during the most recent fiscal year and a proposed budget for those programs for the subsequent fiscal year; and

(C) the total number of low-income participants served by covered State housing programs and the average monthly enrollment in those programs during the most recent fiscal year.

(a) Study.—

(1) IN GENERAL.—The Comptroller General of the United States shall conduct a study of the different approaches and best practices used by States in carrying out this title.

(2) SCOPE.—The material studied under paragraph (1) shall be limited to the information provided by States in the reports made available under section 405(b).

(b) Report.—Not later than October 1 of the fourth fiscal year beginning after the date of enactment of this Act, the Comptroller General shall submit a report containing the results of the study conducted under subsection (a) to—

(1) the Committee on Banking, Housing, and Urban Affairs of the Senate;

(2) the Committee on the Budget of the Senate;

(3) the Committee on Financial Services of the House of Representatives; and

(4) the Committee on the Budget of the House of Representatives.

Nothing in this title shall be construed to authorize the Secretary or any employee or contractor of the Department of Housing and Urban Development to mandate, direct, or control the selection of a covered State housing program by a State.

No funds authorized or appropriated by Federal law, and none of the funds in any trust fund to which funds are authorized or appropriated by Federal law, shall be expended for any abortion.

None of the funds authorized or appropriated by Federal law, and none of the funds in any trust fund to which funds are authorized or appropriated by Federal law, shall be expended for health benefits coverage that includes coverage of abortion.

For taxable years beginning after the date of the enactment of this section, no credit shall be allowed under the internal revenue laws with respect to amounts paid or incurred for an abortion or with respect to amounts paid or incurred for a health benefits plan (including premium assistance) that includes coverage of abortion.

Nothing in this title shall be construed as prohibiting any individual, entity, or State or locality from purchasing separate abortion coverage or health benefits coverage that includes abortion so long as such coverage is paid for entirely using only funds not authorized or appropriated by Federal law and such coverage shall not be purchased using matching funds required for a federally subsidized program, including a State's or locality's contribution of Medicaid matching funds.

Nothing in this title shall be construed as restricting the ability of any non-Federal health benefits coverage provider from offering abortion coverage, or the ability of a State or locality to contract separately with such a provider for such coverage, so long as only funds not authorized or appropriated by Federal law are used and such coverage shall not be purchased using matching funds required for a federally subsidized program, including a State's or locality's contribution of Medicaid matching funds.

The limitations established in this title shall not apply to an abortion—

(1) if the pregnancy is the result of an act of rape or incest; or

(2) in the case where a woman suffers from a physical disorder, physical injury, or physical illness that would, as certified by a physician, place the woman in danger of death unless an abortion is performed, including a life-endangering physical condition caused by or arising from the pregnancy itself.