Section 1. Short title
This Act may be cited as the Jobs and Opportunity with Benefits and Services (JOBS) for Success Act of 2025.
Section 2. Table of contents
The table of contents of this Act is as follows:
Section 3. References
Except as otherwise expressly provided, wherever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Social Security Act.
(a) Family assistance grants
Section 403(a)(1) (42 U.S.C. 603(a)(1)) is amended in each of subparagraphs (A) and (C) by striking 2017 and 2018 and inserting 2026 through 2030.
(b) Healthy marriage promotion and responsible fatherhood grants
Section 403(a)(2)(D) (42 U.S.C. 603(a)(2)(D)) is amended—
(1) by striking 2017 and 2018 and inserting 2026 through 2030; and
(2) by striking for fiscal year 2017 or 2018.
(c) Tribal grants
Section 412(a) (42 U.S.C. 612(a)) is amended in each of paragraphs (1)(A) and (2)(A) by striking 2017 and 2018 and inserting 2026 through 2030.
(d) Grants to the territories
Section 1108(b)(2) (42 U.S.C. 1308(b)(2)) is amended by striking 2017 and 2018 and inserting 2026 through 2030.
Section 5. Expecting universal engagement and case management
Section 408(b) (42 U.S.C. 608(b)) is amended to read as follows:
(1) Assessment
The State agency responsible for administering the State program funded under this part shall make an initial assessment of the following for each work-eligible individual (as defined in the regulations promulgated pursuant to section 407(i)(1)(A)(i)):
(A) The education obtained, skills, prior work experience, work readiness, and barriers to work of the individual.
(B) The well-being of the children in the family of the individual and, where appropriate, activities or services (such as services offered by a program funded under section 511) to improve the well-being of the children.
(2) Contents of plans
On the basis of the assessment required by paragraph (1) of this subsection, the State agency, in consultation with the individual, shall develop an individual opportunity plan that—
(A) includes a personal responsibility agreement in which the individual acknowledges receipt of publicly funded benefits and responsibility to comply with program requirements in order to receive the benefits;
(B) sets forth the obligations of the individual to participate in work activities (as defined in section 407(d)), and the number of hours per month for which the individual will so participate pursuant to section 407;
(C) sets forth an employment goal and planned short-, intermediate-, and long-term actions to achieve the goal, and, in the case of an individual who has not attained 24 years of age and is in secondary school or the equivalent, the intermediate action may be completion of secondary school or the equivalent;
(D) describes the job counseling and other services the State will provide to the individual to enable the individual to obtain and keep unsubsidized employment;
(E) may include referral to appropriate substance abuse or mental health treatment; and
(F) is signed by the individual.
(3) Timing
The State agency shall comply with paragraphs (1) and (2) with respect to a work-eligible individual—
(A) within 1 year after the effective date of this subsection, in the case of an individual who, as of such effective date, is a recipient of assistance under the State program funded under this part (as in effect immediately before such effective date); or
(B) within 60 days after the individual is determined to be eligible for the assistance, in the case of any other individual.
(4) Universal engagement
Subject to paragraph (3) of this subsection, each State shall require all work-eligible recipients receiving funds under the State program funded under this part to engage in work in accordance with the provisions of sections 407(c), 407(d), and 407(e).
(5) Penalty for noncompliance by individual
In addition to any other penalties required under the State program funded under this part, the State shall reduce, pursuant to section 407(e)(3), the amount of assistance otherwise payable under the State program to a family that includes an individual who fails without good cause to comply with an individual opportunity plan developed pursuant to this subsection, that is signed by the individual.
(6) Periodic review
The State shall meet with each work-eligible individual assessed by the State under paragraph (1), not less frequently than every 90 days, to—
(A) review the individual opportunity plan developed for the individual, including the eligibility of the individual for benefits;
(B) discuss with the individual the progress made by the individual in achieving the goals specified in the plan; and
(C) update the plan, as necessary, to reflect any changes in the circumstances of the individual since the plan was last reviewed.
(a) In general
Section 407(a) (42 U.S.C. 607(a)) is amended to read as follows:
(A) In general
A State to which a grant is made under section 403 shall achieve the requisite minimum level of performance for a fiscal year described in this paragraph with respect to the percentage of employment exits for families receiving assistance under the State program funded under this part, or be subject to penalty as described in section 409(a)(3).
(B) Calculation of percentage of employment exits
For purposes of this paragraph, the percentage of employment exits with respect to a State equals the ratio of the number of work-eligible individuals who are in unsubsidized employment 6 months after their exit to the average monthly number of families receiving assistance under the State program funded under this part.
(C) Agreement on requisite level of performance
The Secretary and the State shall negotiate the requisite level of performance for the State with respect to employment exits for each fiscal year beginning with fiscal year 2028.
(A) Purpose
The purpose of this paragraph is to provide for the establishment of performance accountability measures to assess the effectiveness of States in increasing employment, retention, and advancement among families receiving assistance under the State program funded under this part.
(B) In general
A State to which a grant is made under section 403 for a fiscal year shall achieve the requisite level of performance on an indicator described in subparagraph (D) of this paragraph for the fiscal year.
(C) Measuring state performance
Each State, in consultation with the Secretary, shall collect and submit to the Secretary the information necessary to measure the level of performance of the State for each indicator described in subparagraph (D), for fiscal year 2027 and each fiscal year thereafter, and the Secretary shall use the information collected for fiscal year 2027 to establish the baseline level of performance for each State for each such indicator.
(D) Indicators of performance
The indicators described in this subparagraph, for a fiscal year, are the following:
(i) The percentage of individuals who were work-eligible individuals as of the time of exit from the program, who are in unsubsidized employment during the 2nd quarter after the exit.
(ii) The percentage of individuals who were work-eligible individuals who were in unsubsidized employment in the 2nd quarter after the exit, who are also in unsubsidized employment during the 4th quarter after the exit.
(iii) The median earnings of individuals who were work-eligible individuals as of the time of exit from the program, who are in unsubsidized employment during the 2nd quarter after the exit.
(iv) The percentage of individuals who have not attained 24 years of age, are attending high school or enrolled in an equivalency program, and are work-eligible individuals or were work-eligible individuals as of the time of exit from the program, who obtain a high school degree or its recognized equivalent while receiving assistance under the State program funded under this part or within 1 year after the exit.
(i) In general
For each State submitting a State plan pursuant to section 402(a), there shall be established, in accordance with this subparagraph, levels of performance for each of the indicators described in subparagraph (D).
(ii) Weight
The weight assigned to such an indicator shall be the following:
(I) Forty percent, in the case of the indicator described in subparagraph (D)(i).
(II) Twenty-five percent, in the case of the indicator described in subparagraph (D)(ii).
(III) Twenty-five percent, in the case of the indicator described in subparagraph (D)(iii).
(IV) Ten percent, in the case of the indicator described in subparagraph (D)(iv).
(I) In general
The Secretary and the State shall negotiate the requisite level of performance for the State with respect to each indicator described in clause (ii), for each fiscal year beginning with fiscal year 2028, and shall do so before the beginning of the fiscal year involved.
(II) Requirements in establishing performance levels
In establishing the requisite levels of performance, the State and the Secretary shall—
(aa) take into account how the levels involved compare with the levels established for other States; and
(bb) ensure the levels involved are adjusted, using the objective statistical model referred to in clause (v), based on—
(AA) the differences among States in economic conditions, including differences in unemployment rates or employment losses or gains in particular industries;
(BB) the characteristics of participants on entry into the program, including indicators of prior work history, lack of educational or occupational skills attainment, or other factors that may affect employment and earnings; and
(CC) take into account the extent to which the levels involved promote continuous improvement in performance by each State.
(iv) Revisions based on economic conditions and individuals receiving assistance during the fiscal year
The Secretary shall, in accordance with the objective statistical model referred to in clause (v), revise the requisite levels of performance for a State and a fiscal year to reflect the economic conditions and characteristics of the relevant individuals in the State during the fiscal year.
(v) Statistical adjustment model
The Secretary shall use an objective statistical model to make adjustments to the requisite levels of performance for the economic conditions and characteristics of the relevant individuals, and shall consult with the Secretary of Labor to develop a model that is the same as or similar to the model described in section 116(b)(3)(A)(viii) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(b)(3)(A)(viii)).
(vi) Definition of exit
In this paragraph, the term exit means, with respect to a State program funded under this part, ceases to a receive a benefit under the program.
(F) State option to establish common exit measures
Notwithstanding subparagraph (E)(vi) of this paragraph, a State that has not provided the notification under section 121(b)(1)(C)(ii) of the Workforce Innovation and Opportunity Act to exclude the State program funded under this part as a mandatory one-stop partner may adopt an alternative definition of exit for the purpose of creating common exit measures to improve alignment with workforce programs operated under title I of such Act.
(G) Regulations
In order to ensure nationwide comparability of data, the Secretary, after consultation with the Secretary of Labor and with States, shall issue regulations governing the establishment of the performance accountability system under this paragraph and a template for performance reports to be used by all States consistent with subsection (b).
(b) Reports on state performance on HHS online dashboard
Section 407(b) (42 U.S.C. 607(b)) is amended to read as follows:
(b) Publication of State performance
The Secretary shall, directly or through the use of grants or contracts, and in collaboration with each State, establish and operate an internet website that is accessible to the public, with a dashboard that is regularly updated and provides easy-to-understand information on the performance of each State program funded under this part, including a profile for each such program, expressed by use of a template, which shall include—
(1) information on the indicators and requisite performance levels established for the State under subsection (a), including, with respect to each such level, whether the State achieves, exceeds, or fails to achieve the level on an ongoing basis, including—
(A) information on any adjustments made to the requisite levels using the statistical adjustment model described in subsection (a)(2)(E)(v); and
(B) a grade based on the overall performance of the State, as determined by the Secretary and in consultation with the State, and the overall performance shall be graded based on the performance indicators and weights for each such indicator as described in subsection (a);
(2) information reported under section 411 on the characteristics and demographics of individuals receiving assistance under the State program, including—
(A) the number and percentage of child-only cases and reason why the cases are child-only; and
(B) the average weekly number of hours that each work-eligible individual in the State program participates in work activities, including a separate section showing the number and percentage of the work-eligible individuals with zero hours of the participation and the reason for non-participation;
(3) information on the results of improper payments reviews;
(4) a link to the State plan approved under section 402; and
(5) information regarding any penalty imposed, or other corrective action taken, by the Secretary against a State for failing to achieve a requisite performance level or any other requirement imposed by or under this part.
(c) Modification of rules for determining whether an individual is engaged in work
Section 407(c) (42 U.S.C. 607(c)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by striking For purposes of subsection (b)(1)(B)(i), a and inserting A; and
(ii) by striking, not fewer than and all that follows through this subsection; and
(B) in subparagraph (B)—
(i) in the matter preceding clause (i), by striking For purposes of subsection (b)(2)(B), an and inserting An;
(ii) in clause (i), by striking, not fewer than and all that follows through this subsection; and
(iii) in clause (ii), by striking, not fewer than and all that follows through subsection (d); and
(2) in paragraph (2)—
(A) by striking subparagraphs (A) and (D);
(B) in each of subparagraphs (B) and (C), by striking For purposes of determining monthly participation rates under subsection (b)(1)(B)(i), a and inserting A;
(C) by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively; and
(D) by adding at the end the following:
(C) State option for participation requirement exemptions
For any fiscal year, a State may, at its option, not require an individual who is a single custodial parent caring for a child who has not attained 12 months of age to engage in work, for not more than 12 months.
(d) Modifications to allowable work activities
Section 407(d) (42 U.S.C. 607(d)) is amended—
(1) in paragraph (5), by inserting, including apprenticeships before the semicolon;
(2) in paragraph (6), by inserting supervised before job search; and
(3) in paragraph (8), by striking (not to exceed 12 months with respect to any individual) and inserting, including career technical education.
(1) In general
Section 409(a)(3) (42 U.S.C. 609(a)(3)) is amended by striking all that precedes subparagraph (B) and inserting the following:
(A) In general
If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has failed to comply with any of section 407(a)(1), section 408(b)(3), or section 408(b)(4) for the fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to the applicable percentage of the State family assistance grant.
(2) Transition rule
The Secretary of Health and Human Services may not impose a penalty under section 409(a)(3) of the Social Security Act by reason of the failure of a State to comply with section 407(a) of such Act for any fiscal year before fiscal year 2027.
(f) Pro rata reduction of assistance for individual noncompliance
Section 407(e) (42 U.S.C. 607(e)) is amended by adding at the end the following:
(3) Pro rata reduction
For purposes of paragraph (1)(A), the amount of a pro rata reduction in assistance shall be determined by multiplying the total 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—
(A) the number of hours of required work activities as designated in subsection (d) actually performed by the individual during the month; to
(B) the number of hours of work activities that the individual was required to perform during the month in accordance with subsection (c).
(A) In general
Subject to the limitation in (B), if in a given month an individual who received assistance under this part was required to engage in work under section 408(b)(4), failed to fulfill those obligations and was subsequently sanctioned in accordance with section 407(e)(2) and (3), that individual shall be judged to be engaged in work for that month for purposes of section 408(b)(4).
(B) Limitation
If an individual receives no benefits for two consecutive months due to sanctioning under section 407(e)(2) and (3), that individual shall not be counted as engaged in work in subsequent months for purposes of section 408(b)(4) unless actual work in accordance with section 407(d) was resumed.
(g) Conforming amendment
The heading of section 412(c) (42 U.S.C. 612(c)) is amended by striking Minimum Work Participation Requirements and inserting Requirements for work outcome measures.
(a) Prohibition on use of funds for families with income greater than twice the poverty line
Section 404(k) (42 U.S.C. 604(k)) is amended to read as follows:
(1) Use of funds for persons with income greater than twice the poverty line
A State to which a grant is made under this part shall not use the grant to provide any assistance or services to a family whose monthly income exceeds twice the poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9902(2))).
(1) Use of grants
Section 404(b) (42 U.S.C. 604(b)) is amended—
(A) in paragraph (1), by striking 15 and inserting 10; and
(B) by amending paragraph (2) to read as follows:
(2) Exception
Paragraph (1) shall not apply to the use of a grant for—
(A) information technology and computerization needed for tracking or monitoring required by or under this part; or
(B) case management necessary to assist an individual in developing an individual opportunity plan under section 408(b).
(2) Penalties
Section 409(a) (42 U.S.C. 609(a)) is amended—
(A) in paragraph (7)(B)(i)(I)(dd), by striking 15 and inserting 10; and
(B) by adding at the end the following:
(17) Penalty for failure to comply with administrative limitation
If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has failed to comply with section 404(b) for the fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to not more than 5 percent of the State family assistance grant.
(c) Prohibition on use of funds for direct spending on child care services or activities
Section 404(k) (42 U.S.C. 604(k)), as amended by subsection (a) of this section, is amended by adding at the end the following:
(2) Direct spending on child care services or activities
A State to which a grant is made under this part shall not use the grant for direct spending on child care and other early childhood education programs, services, or activities.
(a) Requirement that States reserve 25 percent of grant for spending on core activities
Section 408(a) (42 U.S.C. 608(a)) is amended by adding at the end the following:
(13) Requirement that States reserve 25 percent of grant for spending on core activities
A State to which a grant is made under section 403(a)(1) for a fiscal year shall expend not less than 25 percent of the grant on work supports, education and training, apprenticeships, non-recurring short-term benefits, work activities (as defined in section 407(d)), and case management necessary to assist an individual in developing an individual opportunity plan under section 408(b).
(b) Requirement that at least 25 percent of qualified State expenditures be for core activities
Section 408(a) (42 U.S.C. 608(a)), as amended by subsection (a) of this section, is amended by adding at the end the following:
(14) Requirement that at least 25 percent of qualified State expenditures be for core activities
Not less than 25 percent of the qualified State expenditures (as defined in section 409(a)(7)(B)(ii)) of a State during the fiscal year shall be for work supports, education and training, apprenticeships, non-recurring short-term benefits, work activities (as defined in section 407(d)), and case management necessary to assist an individual in developing an individual opportunity plan under section 408(b).
(a) Applicability of improper payments laws
Section 404 (42 U.S.C. 604) is amended by adding at the end the following:
(1) In general
The Improper Payments Information Act of 2002 and the Improper Payments Elimination and Recovery Act of 2010 shall apply to a State in respect of the State program funded under this part in the same manner in which such Acts apply to a Federal agency.
(2) Regulations
Within 2 years after the date of the enactment of this subsection, the Secretary shall prescribe regulations governing how a State reviews and reports improper payments under the State program funded under this part.
(b) Report to Congress
Within 1 year after the date of the enactment of this Act, the Secretary of Health and Human Services shall submit to the Congress a written report that contains a plan to reduce or eliminate improper payments made by States under part A of title IV of the Social Security Act within 10 years.
Section 10. Prohibition on State diversion of Federal funds to replace State spending
Section 408(a) (42 U.S.C. 608(a)), as amended by section 8 of this Act, is amended by adding at the end the following:
(15) Non-supplantation requirement
Funds made available to a State under this part shall be used to supplement, not supplant, State general revenue spending on activities described in section 404.
Section 11. Inclusion of poverty reduction as a program purpose
Section 401(a) (42 U.S.C. 601(a)) is amended—
(1) by striking and at the end of paragraph (3);
(2) by striking the period at the end of paragraph (4) and inserting; and; and
(3) by adding at the end the following:
(5) reduce child poverty by increasing employment entry, retention, and advancement of needy parents.
(a) In general
Section 402 (42 U.S.C. 602) is amended—
(1) in subsection (a)—
(A) in the matter preceding paragraph (1)—
(i) by striking 27-month and inserting 24-month; and
(ii) by striking found and inserting approved that; and
(B) in paragraph (1)—
(i) in subparagraph (A)—
(I) by striking clauses (ii) and (iii) and inserting the following:
(ii) Require work-eligible individuals (as defined in the regulations promulgated pursuant to section 407(i)(1)(A)(i)) to engage in work activities consistent with section 407(c).;
(II) by redesignating clauses (iv) through (viii) as clauses (iii) through (vii), respectively; and
(III) by adding at the end the following:
(viii) Describe the case management practices of the State with respect to the requirements of section 408(b), provide a copy of the form or forms that will be used to assess a work-eligible individual (as so defined) and prepare an individual opportunity plan for the individual, describe how the State will ensure that such a plan is reviewed in accordance with section 408(b)(6), and describe how the State will measure progress under the plan.
(ix) Propose the requisite levels of performance for the State for purposes of section 407(a) for each year in the 2-year period referred to in subsection (d) of this section, and provide an explanation with supporting data of why each such level is appropriate.
(x) Describe how the State will engage low-income noncustodial parents who owe child support and how such a parent will be provided with access to work support and other services under the program to which the parent is referred to support their employment and advancement.
(xi) Describe how the State will comply with improper payments provisions in section 404(l).
(xii) Describe coordination with other programs, including whether the State intends to exercise authority provided by section 404(d) of this Act to transfer any funds paid to the State under this part, provide assurance that, in the case of a transfer to carry out a program under title I of the Workforce Innovation and Opportunity Act, the State will comply with section 404(d)(3)(B) of this Act and coordinate with the one-stop delivery system under the Workforce Innovation and Opportunity Act, and describe how the State will coordinate with the programs involved to provide services to families receiving assistance under the program referred to in paragraph (1) of this subsection.
(xiii) Describe how the State will promote marriage, such as through temporary disregard of the income of a new spouse when an individual receiving assistance under the State program marries so that the couple doesn’t automatically lose benefits due to marriage.
(xiv) Describe how the State will allow for a transitional period of benefits, such as through temporary earned income disregards or a gradual reduction in the monthly benefit amount, for an individual receiving assistance who obtains employment and becomes ineligible due to an increase in income obtained through employment or through an increase in wages.; and
(ii) in subparagraph (B), by striking clauses (iv) and (v);
(2) by striking subsection (c) and inserting the following:
(c) Public availability of State plans
The Secretary shall make available to the public, on the website described in section 407(b), a link to any plan or plan amendment submitted by a State under this subsection.; and
(3) by adding at the end the following:
(d) 2-Year plan
A plan submitted pursuant to this section shall be designed to be implemented during a 2-year period.
(e) Combined plan allowed
A State may submit to the Secretary and the Secretary of Labor a combined State plan that—
(1) meets the requirements of subsections (a) and (d); and
(2) is for programs and activities under the Workforce Innovation and Opportunity Act.
(f) Approval of plans
The Secretary shall approve any plan submitted pursuant to this section that meets the requirements of subsections (a) through (d).
(1) Coordination of activities; dissemination of information
Section 416 (42 U.S.C. 616) is amended—
(A) by inserting (a) In general.— before The programs; and
(B) by adding at the end the following:
(b) Coordination of activities
The Secretary shall coordinate all activities of the Department of Health and Human Services relating to work activities (as defined in section 407(d)) and requirements and measurement of employment outcomes, and, to the maximum extent practicable, coordinate the activities of the Department in this regard with similar activities of other Federal entities.
(c) Dissemination of information
The Secretary shall disseminate, for voluntary informational purposes, information on practices that scientifically valid research indicates are most successful in improving the quality of State and tribal programs funded under this part.
(1) In general
Section 406 (42 U.S.C. 606) is amended to read as follows:
(a) In general
The Secretary shall provide technical assistance to States and Indian tribes (which may include providing technical assistance on a reimbursable basis), which shall be provided by qualified experts on practices grounded in scientifically valid research, where appropriate, to support activities related to the publication of State performance under section 407(b) and to carry out State and tribal programs funded under this part.
(b) Publication of State performance
The Secretary may use funds reserved under this section to carry out section 407(b).
(c) Reservation of funds
The Secretary shall reserve not more than $25,000,000 of the amount appropriated by section 403(a)(1)(C) for a fiscal year to carry out this section.
(2) Conforming amendment
Section 403(a)(1)(B) (42 U.S.C. 603(a)(1)(B)) is amended by inserting and the amount specified in section 406(b) after section 413(h)(1).
(a) Requirement that States report full-Population data
Section 411(a)(1) (42 U.S.C. 611(a)(1)) is amended—
(1) by striking subparagraph (B);
(2) by striking (1) General reporting requirement.—; and
(3) by—
(A) redesignating—
(i) subparagraph (A) as paragraph (1);
(ii) clauses (i) through (xvii) of subparagraph (A) as subparagraphs (A) through (Q), respectively;
(iii) subclauses (I) through (V) of clause (ii) as clauses (i) through (v), respectively;
(iv) subclauses (I) through (VII) of clause (xi) as clauses (i) through (vii), respectively; and
(v) subclauses (I) through (V) of clause (xvi) as clauses (i) through (v), respectively; and
(B) moving each such redesignated provision 2 ems to the left.
(b) Report on participation in work activities
Section 411(a)(1) (42 U.S.C. 611(a)(1)), as amended by subsection (a)(3) of this section, is amended by striking subparagraphs (K) and (L) and inserting the following:
(K) The work eligibility status of each individual in the family, and—
(i) in the case of each work-eligible individual (as defined in the regulations promulgated pursuant to section 407(i)(1)(A)(i)) in the family, the number of hours (including zero hours) per month of participation in work activities (as defined in section 407(d)); and
(ii) in the case of each individual in the family who is not a work-eligible individual (as so defined), the reason for that status.
(L) For each work-eligible individual (as so defined) and each adult in the family who did not participate in work activities (as so defined) during a month, the reason for the lack of participation.
(c) Reporting of information on employment and earnings outcomes
Section 411(c) (42 U.S.C. 611(c)) is amended to read as follows:
(c) Reporting of information on employment and earnings outcomes
The Secretary, in consultation with the Secretary of Labor, shall determine the information that is necessary to compute the employment and earnings outcomes and the statistical adjustment model for the employment and earnings outcomes required under section 407, and each eligible State shall collect and report that information to the Secretary.
(a) In general
Section 411(d) (42 U.S.C. 611(d)) is amended to read as follows:
(1) Designation
The Secretary shall, in consultation with an interagency work group established by the Office of Management and Budget and considering State government perspectives, by rule, designate data exchange standards to govern, under this part—
(A) necessary categories of information that State agencies operating programs under State plans approved under this part are required under applicable Federal law to electronically exchange with another State agency; and
(B) Federal reporting and data exchange required under applicable Federal law.
(2) Requirements
The data exchange standards required by paragraph (1) shall, to the extent practicable—
(A) incorporate a widely accepted, non-proprietary, searchable, computer-readable format, such as the eXtensible Markup Language;
(B) contain interoperable standards developed and maintained by intergovernmental partnerships, such as the National Information Exchange Model;
(C) incorporate interoperable standards developed and maintained by Federal entities with authority over contracting and financial assistance;
(D) be consistent with and implement applicable accounting principles;
(E) be implemented in a manner that is cost-effective and improves program efficiency and effectiveness; and
(F) be capable of being continually upgraded as necessary.
(3) Rule of construction
Nothing in this subsection shall be construed to require a change to existing data exchange standards found to be effective and efficient.
(b) Effective date
Not later than the date that is 24 months after the date of the enactment of this section, the Secretary of Health and Human Services shall issue a proposed rule that—
(1) identifies federally required data exchanges, include specification and timing of exchanges to be standardized, and address the factors used in determining whether and when to standardize data exchanges; and
(2) specifies State implementation options and describes future milestones.
Section 15. Set-aside for economic downturns
Section 404(e) (42 U.S.C. 604(e)) is amended to read as follows:
(1) In general
Except as provided in paragraph (2), a State to which a grant is made under section 403(a)(1) shall obligate the funds within 2 years after the date the funds are made available, and shall expend the funds within 3 years after such date.
(A) In general
A State to which funds are paid under section 403(a)(1) may reserve not more than 15 percent of the funds for use in the State program funded under this part without fiscal year limitation.
(B) Notice of intent to reserve funds
A State that intends to reserve funds paid to the State under section 402(a)(1) shall notify the Secretary of the intention not later than the end of the period in which the funds are available for obligation without regard to subparagraph (A) of this paragraph.
Section 16. Welfare for needs not weed
Section 408(a)(12)(A) (42 U.S.C. 608(a)(12)(A)) is amended—
(1) in clause (ii), by striking; or and inserting a semicolon;
(2) in clause (iii), by striking the period and inserting; or; and
(3) by adding at the end the following:
(iv) any establishment that offers marihuana (as defined in section 102 of the Controlled Substances Act) for sale.
Section 19. Effective date
The amendments made by this Act shall take effect on October 1, 2026.