Community Services Block Grant Modernization Act of 2022: Report 117-311
Summary
Report 117-311 of the 117th Congress, 2d Session, dated May 6, 2022, from the Committee on Education and Labor on H.R. 5129, the Community Services Block Grant Modernization Act of 2022. The committee, with Mr. Scott of Virginia submitting the report, reports the bill favorably with an amendment and recommends that it pass. The contents list covers the purpose and summary, committee action, committee views, a section-by-section analysis, roll call votes and hearings. In the minority views, Republicans led by Ranking Member Virginia Foxx say the bill worsens current federal law, removes protections for faith-based organizations and fails to incorporate important oversight requirements.
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Cite this document
“Community Services Block Grant Modernization Act of 2022: Report 117-311.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crpt-crpt-117hrpt311-crpt-117hrpt311/
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117TH CONGRESS REPORT
" HOUSE OF REPRESENTATIVES !
2d Session 117–311
COMMUNITY SERVICES BLOCK GRANT MODERNIZATION
ACT OF 2022
MAY 6, 2022.—Committed to the Committee of the Whole House on the State of the
Union and ordered to be printed
Mr. SCOTT of Virginia, from the Committee on Education and
Labor, submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 5129]
The Committee on Education and Labor, to whom was referred
the bill (H.R. 5129) to amend the Community Services Block Grant
Act to reauthorize and modernize the Act, having considered the
same, reports favorably thereon with an amendment and rec-
ommends that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary ............................................................................................ 20
Committee Action .................................................................................................... 22
Committee Views ..................................................................................................... 23
Section-by-Section Analysis .................................................................................... 42
Explanation of Amendments ................................................................................... 51
Application of Law to the Legislative Branch ....................................................... 51
Unfunded Mandate Statement ............................................................................... 51
Earmark Statement ................................................................................................. 52
Roll Call Votes ......................................................................................................... 52
Statement of Performance Goals and Objectives .................................................. 59
Duplication of Federal Programs ............................................................................ 59
Hearings ................................................................................................................... 59
Statement of Oversight Findings and Recommendations of the Committee ...... 59
New Budget Authority and CBO Cost Estimate ................................................... 59
Committee Cost Estimate ....................................................................................... 60
Changes in Existing Law Made by the Bill, as Reported ..................................... 60
Minority Views ......................................................................................................... 125
The amendment is as follows:
29–006
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Strike all after the enacting clause and insert the following:
Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Community Services Block Grant Modernization Act
of 2022’’.
SEC. 2. REAUTHORIZATION.
Subtitle B of title VI of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C.
9901 et seq.) is amended to read as follows:
‘‘Subtitle B—Community Services Block Grant
Program
‘‘SEC. 671. SHORT TITLE.
‘‘This subtitle may be cited as the ‘Community Services Block Grant Act’.
‘‘SEC. 672. PURPOSES.
‘‘The purposes of this subtitle are—
‘‘(1) to reduce poverty in the United States by supporting the activities of com-
munity action agencies and other community services network organizations
that improve the economic security of low-income individuals and families and
create new economic opportunities in the communities where they live; and
‘‘(2) to accomplish the purposes described in paragraph (1) by—
‘‘(A) strengthening community capabilities for identifying poverty condi-
tions and opportunities to alleviate such conditions;
‘‘(B) empowering residents of the low-income communities served to re-
spond to the unique problems and needs in their communities through their
maximum feasible participation in advising, planning, and evaluating the
programs, projects, and services funded under this subtitle;
‘‘(C) using innovative community-based approaches that produce a meas-
urable impact on the causes and effects of poverty, including whole family
approaches that create opportunities for, and address the needs of, parents
and children together;
‘‘(D) coordinating Federal, State, local, and other assistance, including
private resources, related to the reduction of poverty so that resources can
be used in a manner responsive to local needs and conditions; and
‘‘(E) broadening the resources directed to the elimination of poverty, so
as to promote partnerships that include—
‘‘(i) private, religious, charitable, and neighborhood-based organiza-
tions; and
‘‘(ii) individuals, businesses, labor organizations, professional organi-
zations, and other organizations engaged in expanding opportunities for
all individuals.
‘‘SEC. 673. DEFINITIONS.
‘‘In this subtitle:
‘‘(1) AGENCY-WIDE STRATEGIC PLAN.—The term ‘agency-wide strategic plan’
means a plan that has been adopted by an eligible entity in the previous 5
years and establishes goals that include meeting needs identified by the entity
in consultation with residents of the community through a process of com-
prehensive community needs assessment.
‘‘(2) POVERTY LINE.—The term ‘poverty line’ means the poverty guideline cal-
culated by the Secretary from the most recent data available from the Bureau
of the Census. The Secretary shall revise the poverty line annually (or at any
shorter interval the Secretary determines to be feasible and desirable). The re-
quired revision shall be accomplished by multiplying the official poverty thresh-
olds from the Bureau of the Census by the percentage change in the Consumer
Price Index for All Urban Consumers during the annual or other interval imme-
diately preceding the time at which the revision is made.
‘‘(3) COMMUNITY ACTION AGENCY.—The term ‘community action agency’ means
an eligible entity (which meets the requirements of paragraph (1) or (2), as ap-
propriate, of section 680(c)) that delivers multiple programs, projects, and serv-
ices to a variety of low-income individuals and families.
‘‘(4) COMMUNITY ACTION PLAN.—The term ‘community action plan’ means a
detailed plan, including a budget, that is adopted by an eligible entity, for ex-
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penditures of funds appropriated for a fiscal year under this subtitle for the ac-
tivities supported directly or indirectly by such funds.
‘‘(5) COMMUNITY SERVICES NETWORK ORGANIZATION.—The term ‘community
services network organization’ means any of the following organizations funded
under this subtitle:
‘‘(A) A grantee.
‘‘(B) An eligible entity.
‘‘(C) A Tribal grantee.
‘‘(D) An association with a membership composed primarily of grantees,
eligible entities, Tribal grantees, or associations of grantees, eligible enti-
ties, or Tribal grantees.
‘‘(6) DEPARTMENT.—The term ‘Department’ means the Department of Health
and Human Services.
‘‘(7) ELIGIBLE ENTITY.—The term ‘eligible entity’ means an entity—
‘‘(A) that is an eligible entity described in section 673(1) of the Commu-
nity Services Block Grant Act (as in effect immediately before the date of
the enactment of the Community Services Block Grant Modernization Act
of 2022) as of the day before such date of enactment, or has been des-
ignated by the process described in section 680(a) (including an organiza-
tion serving migrant or seasonal farmworkers that is so described or des-
ignated); and
‘‘(B) that has a tripartite board described in paragraph (1) or (2), as ap-
propriate, of section 680(c).
‘‘(8) EVIDENCE-BASED PRACTICE.—The term ‘evidence-based practice’ means an
activity, strategy, or intervention that—
‘‘(A) demonstrates a statistically significant effect on improving relevant
outcomes based on at least one well-designed and well-implemented experi-
mental or quasi-experimental study, or at least one well-designed and well-
implemented correlational study with statistical controls for selection bias,
and includes ongoing efforts to examine the effects of such activity, strat-
egy, or intervention; or
‘‘(B) demonstrates a rationale based on high-quality research findings or
positive evaluation that such activity, strategy, or intervention is likely to
improve relevant outcomes, and includes ongoing efforts to examine the ef-
fects of such activity, strategy, or intervention.
‘‘(9) GRANTEE.—The term ‘grantee’ means a recipient of a grant under section
675 or 676.
‘‘(10) PRIVATE, NONPROFIT ORGANIZATION.—The term ‘private, nonprofit orga-
nization’ means a domestic organization that is—
‘‘(A) described in section 501(c)(3) of the Internal Revenue Code of 1986
and exempt from taxation under section 501(a) of such Code; and
‘‘(B) described in paragraph (1) or (2) of section 509(a) of the Internal
Revenue Code of 1986.
‘‘(11) SECRETARY.—The term ‘Secretary’ means the Secretary of Health and
Human Services.
‘‘(12) SERVICE AREA.—The term ‘service area’ means the unique geographic
area which the State has designated as the area to be served by an eligible enti-
ty with funding under section 679(a)(1).
‘‘(13) STATE.—The term ‘State’ means any of the several States, the District
of Columbia, Puerto Rico, Guam, American Samoa, the United States Virgin Is-
lands, or the Commonwealth of the Northern Mariana Islands.
‘‘(14) TRIBAL GRANTEE.—The term ‘Tribal grantee’ means an Indian Tribe or
Tribal organization, as defined in section 677(a), that receives a grant under
section 677(c).
‘‘SEC. 674. AUTHORIZATION OF COMMUNITY SERVICES BLOCK GRANT PROGRAM.
‘‘(a) AUTHORIZATION OF PROGRAM.—The Secretary is authorized to carry out a
community services block grant program and to make grants through the program,
under sections 675 and 676, to States to support local community action plans car-
ried out by eligible entities to reduce poverty in the communities served by such en-
tities.
‘‘(b) AUTHORITY OF SECRETARY.—The Secretary is authorized to carry out other
community programs described in section 690.
‘‘SEC. 675. GRANTS TO TERRITORIES.
‘‘(a) APPORTIONMENT.—The Secretary shall apportion the amount reserved under
section 691(c)(1) for each fiscal year on the basis of need, based on the most recent
applicable data available from the Bureau of the Census to account for poverty, to
eligible jurisdictions among Guam, American Samoa, the United States Virgin Is-
lands, and the Commonwealth of the Northern Mariana Islands.
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‘‘(b) GRANTS.—The Secretary shall make a grant to each eligible jurisdiction to
which subsection (a) applies for the amount apportioned under subsection (a).
‘‘(c) PLANS FOR APPORTIONMENT TO TERRITORIES.—No later than six months after
the enactment of this Act, the Secretary shall make publicly available the Depart-
ment’s plan for apportioning funds among territories, including factors that con-
tribute to the calculation of need and methodology for calculating the apportionment
for each territory. The Secretary must make publicly available any updates or
changes to this plan no less frequently than any time new applicable data are avail-
able from the Bureau of Census.
‘‘SEC. 676. ALLOTMENTS AND GRANTS TO STATES.
‘‘(a) ALLOTMENTS IN GENERAL.—From the amount appropriated under section
691(a) for each fiscal year and remaining after the Secretary makes the reservations
required by section 691(c), the Secretary shall allot to each eligible State, subject
to section 677, an amount that bears the same ratio to such remaining amount as
the amount received by the State for fiscal year 1981 under section 221 of the Eco-
nomic Opportunity Act of 1964 bore to the total amount received by all States for
fiscal year 1981 under such section, except as provided in subsection (b).
‘‘(b) MINIMUM ALLOTMENTS.—
‘‘(1) IN GENERAL.—The Secretary shall allot to each State not less than 1⁄2 of
1 percent of the amount appropriated under section 691(a) for such fiscal year
and remaining after the Secretary makes the reservations required by section
691(c).
‘‘(2) YEARS WITH GREATER AVAILABLE FUNDS.—Notwithstanding paragraph (1),
if the amount appropriated under section 691(a) for a fiscal year and remaining
after the Secretary makes the reservations required by section 691(c) exceeds
$900,000,000, no State shall receive under this section less than 3⁄4 of 1 percent
of the remaining amount.
‘‘(c) GRANTS AND PAYMENTS.—Subject to section 677, the Secretary shall make
grants to eligible States for the allotments described in subsections (a) and (b). The
Secretary shall make payments for the grants in accordance with section 6503(a) of
title 31, United States Code. The Secretary shall allocate the amounts allotted
under subsections (a) and (b) on a quarterly basis at a minimum, notify the States
of their respective allocations, and make each State’s first allocation amount in a
fiscal year available for expenditure by the State no later than 30 days after receipt
of an approved apportionment from the Office of Management and Budget and, for
subsequent allocation amounts in the fiscal year, not later than 30 days after the
start of the period for which the Secretary is allocating the funds.
‘‘(d) DEFINITION.—In this section, the term ‘State’ does not include Guam, Amer-
ican Samoa, the United States Virgin Islands, and the Commonwealth of the North-
ern Mariana Islands.
‘‘SEC. 677. PAYMENTS TO INDIAN TRIBES.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) INDIAN.—The term ‘Indian’ means a member of an Indian Tribe or Tribal
organization.
‘‘(2) INDIAN TRIBE OR TRIBAL ORGANIZATION.—The term ‘Indian Tribe or Tribal
organization’ means a Tribe, band, or other organized group recognized in the
State in which the Tribe, band, or group resides, or considered by the Secretary
of the Interior to be an Indian Tribe or an Indian organization for any purpose.
‘‘(b) RESERVATION.—
‘‘(1) APPLICATION.—Paragraph (2) shall apply only if, with respect to any
State, the Secretary—
‘‘(A) receives a request from the governing body of an Indian Tribe or
Tribal organization in such State that assistance under this subtitle be
made available directly to such Indian Tribe or Tribal organization; and
‘‘(B) determines that the members of such Indian Tribe or Tribal organi-
zation would be better served by means of grants made directly to such In-
dian Tribe or Tribal organization to provide benefits under this subtitle.
‘‘(2) AMOUNT.—The Secretary shall reserve from amounts allotted to a State
under section 676 for a fiscal year not less than the amount that bears the same
ratio to the State allotment for the fiscal year as the population of all eligible
Indians in that particular State for whom a determination has been made under
paragraph (1) bears to the population of all individuals eligible for assistance
through a grant made under section 676 to such State.
‘‘(c) AWARDS.—The amount reserved by the Secretary on the basis of a determina-
tion made under subsection (b)(1)(B) shall be made available by grant to the Indian
Tribe or Tribal organization serving the Indians for whom the determination has
been made under subsection (b)(1)(B).
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‘‘(d) PLAN.—In order for an Indian Tribe or Tribal organization to be eligible for
a grant award for a fiscal year under this section, the Indian Tribe or Tribal organi-
zation shall submit to the Secretary a plan for such fiscal year that meets such cri-
teria as the Secretary may prescribe by regulation.
‘‘(e) ALTERNATIVE PERFORMANCE MEASUREMENT SYSTEM.—The Secretary may im-
plement alternative requirements for implementation by an Indian Tribe or Tribal
Organization of the requirements of section 686(a).
‘‘SEC. 678. STATE PLANS AND APPLICATIONS; COMMUNITY ACTION PLANS AND APPLICA-
TIONS.
‘‘(a) STATE LEAD AGENCY.—
‘‘(1) DESIGNATION.—The chief executive officer of a State desiring to receive
a grant under section 675 or 676 shall designate, in an application submitted
to the Secretary under subsection (b), an appropriate State agency that agrees
to comply with the requirements of paragraph (2), to act as a lead agency for
purposes of carrying out State activities under this subtitle.
‘‘(2) DUTIES OF STATE LEAD AGENCIES.—The State lead agency—
‘‘(A) shall be authorized by the chief executive officer to convene State
agencies and coordinate information and activities funded under this sub-
title;
‘‘(B) shall develop the State plan to be submitted to the Secretary under
subsection (b), which shall be based primarily on the community action
plans of eligible entities, submitted to the State as a condition of receiving
funding under this subtitle;
‘‘(C) may revise an existing State plan for submission to the Secretary,
if considered a major revision under criteria established by the Secretary
in regulations required under section 689(a)(1));
‘‘(D) in conjunction with the development or revision of the State plan as
required under subsection (b)—
‘‘(i) shall hold at least 1 hearing in the State on the proposed plan
or a proposed major revision to a plan to provide to the public an oppor-
tunity to comment on the public record on the proposed use and dis-
tribution of funds under the plan;
‘‘(ii) not less than 15 days before the hearing, shall distribute notice
of the hearing and a copy of the proposed plan or major plan revision
statewide to the public and directly to the chief executive officer and
the chairperson of the board of each of the eligible entities (or des-
ignees) and other community services network organizations; and
‘‘(iii) in the case of any proposed plan revision, without regard to
whether it is a major revision, shall notify and distribute a copy of the
proposed revision statewide directly to the chief executive officer and
the chairperson of the board of each of the eligible entities (or des-
ignees) and other community services network organizations, before
submission of such proposed revision to the Secretary; and
‘‘(E) at least every 3 years, in conjunction with the development of the
State plan, shall hold at least 1 legislative hearing.
‘‘(b) STATE APPLICATION FOR STATE PROGRAM AND STATE PLAN.—Beginning with
the first fiscal year following the transition period described in section 3 of the Com-
munity Services Block Grant Modernization Act of 2022, to be eligible to receive a
grant under section 675 or 676, a State shall prepare and submit to the Secretary
for approval an application containing a State plan covering a period of not more
than 2 fiscal years. The application shall be submitted not later than 60 days before
the beginning of the first fiscal year covered by the plan, and shall contain such in-
formation as the Secretary shall require, including—
‘‘(1) a description of the manner in which funds made available through the
grant under section 675 or 676 will be used to carry out the State activities de-
scribed in section 679(b) and the State’s community action plans;
‘‘(2) a description summarizing the community action plans of the eligible en-
tities serving the State;
‘‘(3) an assurance that the State and all eligible entities in the State will par-
ticipate in a performance measurement system under section 686(a)(1)(A);
‘‘(4) a plan for the State’s oversight of eligible entities;
‘‘(5) an assurance that the State will make payments to eligible entities in ac-
cordance with section 679(a)(2);
‘‘(6) an assurance that no eligible entity in the State that received, in the pre-
vious fiscal year, funding through a grant made under section 675 or 676 will
have funding reduced below the proportional share of funding the entity re-
ceived from the State in the previous fiscal year, or eliminated, or its designa-
tion as an eligible entity terminated, unless, after providing the affected entity
(or entities, as applicable) with notice and an opportunity for a hearing on the
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record, the State determines that cause exists for the reduction or elimination
of funding or for termination of such designation, subject to review by the Sec-
retary as provided in section 684(c); and—
‘‘(A) in the case of failure of an eligible entity to comply with the terms
of a corrective action plan relating to correction of a serious deficiency, ex-
cept according to the procedures set forth in section 684(b); and
‘‘(B) for purposes of this subsection, the term ‘cause’ means—
‘‘(i) the failure of an eligible entity to comply with the terms of a cor-
rective action plan relating to correction of a serious deficiency as de-
scribed in subsection 684(b); or
‘‘(ii) a statewide proportional distribution of funds provided through
a community services block grant under this subtitle to respond to—
‘‘(I) the results of the most recently available census or other ap-
propriate demographic data;
‘‘(II) severe economic dislocation; or
‘‘(III) the designation of an eligible entity to serve a geographic
area that has been unserved for at least the previous 5 years;
‘‘(7) an assurance that each eligible entity serving the State has established
procedures that permit a low-income individual or organization to petition for
adequate representation of such individuals or organizations, respectively, on
the board of the eligible entity;
‘‘(8) a description of outcome measures to be used to measure State and eligi-
ble entity performance in achieving the goals of the State plan and the commu-
nity action plans, respectively;
‘‘(9) an assurance that the State will develop a policy on board vacancies in
accordance with section 680(c)(3) and provide guidance to assist eligible entities
in filling board vacancies; and
‘‘(10) an assurance that the State and the eligible entities in the State will
coordinate, and establish linkages between, governmental and other social serv-
ices programs to assure the effective delivery of such services to low-income in-
dividuals and to avoid duplication of such services, and a description of how the
State and the eligible entities will coordinate the provision of employment and
training activities, as defined in section 3 of the Workforce Innovation and Op-
portunity Act, in the State and in communities with entities providing activities
through statewide and local workforce development systems under such Act.
‘‘(c) APPROVAL.—The Secretary shall notify the chief executive officer of each State
submitting an application containing a State plan under this section of the approval,
disapproval, or approval in part, of the application, not later than 60 days after re-
ceiving the application. In the event of a full or partial disapproval, the Secretary’s
notification shall include a description of changes necessary for final approval. In
the event of a partial approval, the Secretary may allow grantee use of funds for
activities included in the portions of the plan which the Secretary has approved. In
the event a State application fails to be approved in whole or in part before the end
of the third month of the period covered by such plan the Secretary may award
funding as specified in section 684(a)(5)(B).
‘‘(d) PUBLIC INSPECTION.—Each plan and major revision to a State plan prepared
under this section shall be distributed for public inspection and comment. A hearing
on such plan or major revision shall be held as required under subparagraphs (C)
and (D) of subsection (a)(2), but a State application for merger, combination, or pri-
vatization of entities under section 680(b) shall not be considered a major revision.
‘‘(e) ELIGIBLE ENTITY APPLICATION AND COMMUNITY ACTION PLAN.—Beginning
with the first fiscal year following the transition period described in section 3 of the
Community Services Block Grant Modernization Act of 2022, to be eligible to receive
a subgrant under section 679(a), each eligible entity shall prepare and submit to the
State an application containing a community action plan or plans covering a period
of not more than 2 fiscal years. Such application shall be submitted in a reasonable
and timely manner as required by the State. The application shall contain informa-
tion on the intended implementation of the eligible entity’s activities, including dem-
onstrating how the activities will—
‘‘(1) meet needs identified in the most recent comprehensive community needs
assessment which has been conducted in the previous 3 years and which may
be coordinated with community needs assessments conducted for other pro-
grams; and
‘‘(2) achieve the purposes of this subtitle through programs, projects, and
services.
‘‘SEC. 679. STATE AND LOCAL USES OF FUNDS.
‘‘(a) STATE SUBGRANTS TO ELIGIBLE ENTITIES AND OTHER ORGANIZATIONS.—
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‘‘(1) IN GENERAL.—A State that receives a grant under section 675 or 676
shall use not less than 90 percent to make subgrants to eligible entities that
enable the entities to implement programs, projects, and services for a purpose
described in section 672.
‘‘(2) OBLIGATIONAL REQUIREMENTS.—
‘‘(A) DATE OF OBLIGATION.—The State shall obligate the funds for sub-
grants described in paragraph (1) and make such subgrants available for
expenditure by eligible entities not later than the later of—
‘‘(i) the 30th day after the date on which the State receives from the
Secretary a notice of funding availability for the State’s application
under section 678 for a first or subsequent allocation for a fiscal year;
or
‘‘(ii) the first day of the State program year for which funds are to
be expended under the State application.
‘‘(B) EXCEPTION.—If funds are appropriated to carry out this subtitle for
less than a full fiscal year, a State may request an exception from the Sec-
retary from the requirement to make subgrants available for expenditure
by eligible entities in accordance with subparagraph (A), except that a State
may not accumulate more than one fiscal quarter’s worth of funding with-
out making such funds available for expenditure by eligible entities.
‘‘(C) AVAILABILITY.—Funds allocated to eligible entities through subgrants
made under paragraph (1) for a fiscal year shall be available for obligation
by the eligible entity during that fiscal year and the succeeding fiscal year.
‘‘(b) STATEWIDE ACTIVITIES.—
‘‘(1) USE OF REMAINDER.—
‘‘(A) IN GENERAL.—A State that receives a grant under section 675 or 676
shall, after carrying out subsection (a), use the remainder of the grant
funds for activities described in the State’s application under section 678(b)
as described in subparagraph (B) and for administrative expenses subject
to the limitations in paragraph (2).
‘‘(B) TRAINING AND TECHNICAL ASSISTANCE.—After applying subsection (a),
the State may use the remaining grant funds for the purposes of—
‘‘(i) providing to eligible entities training and technical assistance and
resources to respond to statewide or regional conditions that create eco-
nomic insecurity, including emergency conditions;
‘‘(ii) supporting professional development activities for eligible enti-
ties that enhance the skills of their local personnel (including members
of the board of directors of such entities) in organizational manage-
ment, service delivery, and program development and management,
giving priority to activities carried out through partnerships of such en-
tities with institutions of higher education;
‘‘(iii) supporting information and communication resources for the
comprehensive community needs assessments described in section
678(e)(1);
‘‘(iv) supporting performance measurement systems consistent with
the requirements of section 686;
‘‘(v) promoting coordination and cooperation among eligible entities in
the State, including supporting activities of a statewide association of
community services network organizations;
‘‘(vi) providing training and technical assistance and resources to as-
sist eligible entities in building and using evidence of effectiveness in
reducing poverty conditions, including entities participating in or pro-
posing to participate in the Community Action Innovations Program es-
tablished under section 682(a)(2);
‘‘(vii) supporting efforts of eligible entities to identify and respond to
physical and behavioral health challenges (including substance use dis-
orders) experienced by low-income individuals, families, and commu-
nities; and
‘‘(viii) analyzing the distribution of funds made available under this
subtitle within the State to determine if such funds have been targeted
to the areas of greatest need.
‘‘(2) ADMINISTRATIVE CAP.—
‘‘(A) LIMITATION.—Of the amounts remaining after the required funding
for subgrants described under subsection (a)(1), a State shall not spend
more than 5 percent of its grant under section 675 or 676 for administrative
expenses.
‘‘(B) DEFINITION.—In this paragraph, the term ‘administrative ex-
penses’—
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8
‘‘(i) means the costs incurred by the State’s lead agency for carrying
out planning and management activities, including monitoring, over-
sight, and reporting as required by this Act; and
‘‘(ii) does not include the cost of activities conducted under paragraph
(1)(B) other than monitoring.
‘‘(c) ELIGIBLE ENTITY USE OF FUNDS.—An eligible entity that receives a subgrant
under subsection (a)(1) shall use the subgrant funds to carry out a community ac-
tion plan that shall include—
‘‘(1) programs, projects, and services that provide low-income individuals and
families with opportunities—
‘‘(A) to identify and develop strategies to remove obstacles and solve prob-
lems that block access to opportunity, economic stability, and achievement
of self-sufficiency;
‘‘(B) to secure and retain meaningful employment at a family supporting
wage;
‘‘(C) to secure an adequate education, improve literacy and language
skills, and obtain job-related skills;
‘‘(D) to make effective use of available income and build assets;
‘‘(E) to obtain and maintain adequate housing and a safe and healthy liv-
ing environment;
‘‘(F) to address health needs and improve health and well-being;
‘‘(G) to obtain emergency materials or other assistance to meet immediate
and urgent needs, including to meet the collective needs of a community,
and prevent greater or more prolonged economic instability;
‘‘(H) to secure and identify assistance related to reducing energy expenses
and reducing energy consumption; and
‘‘(I) to achieve greater participation in community affairs; and
‘‘(2) activities that develop and maintain—
‘‘(A) partnerships for the purpose of addressing community, economic, and
social conditions of poverty and promoting healthy communities, between
the eligible entity and—
‘‘(i) State and local public entities; and
‘‘(ii) private partners, including statewide and local businesses, asso-
ciations of private employers, and private charitable and civic organiza-
tions;
‘‘(B) linkages with public and private organizations for coordinating ini-
tiatives, services, and investments so as to avoid duplication, and maximize
the effective use, of community resources for creating economic opportunity,
including developing lasting social and economic assets; and
‘‘(C) new investments in the community to reduce the incidence of pov-
erty, including developing lasting social and economic assets.
‘‘(d) ELIGIBILITY CRITERION.—
‘‘(1) Subject to paragraph (2), 200 percent of the poverty line shall be used
as a criterion of eligibility for services, assistance, or resources provided directly
to individuals or families through the community services block grant program
established under this subtitle.
‘‘(2) A State or Tribal grantee may establish procedures to ensure that a par-
ticipant in a program, project, or service funded under this subtitle remains eli-
gible to participate as long as the participant is successfully progressing toward
achievement of the goals of the program, project, or service, regardless of the
income eligibility criteria used to determine the participant’s initial eligibility.
‘‘SEC. 680. ELIGIBLE ENTITIES AND TRIPARTITE BOARDS.
‘‘(a) DESIGNATION AND REDESIGNATION OF ELIGIBLE ENTITIES IN UNSERVED
AREAS.—
‘‘(1) IN GENERAL.—If any geographic area of a State is not, or ceases to be,
served by an eligible entity, the State lead agency may, in consultation with
local officials and organizations representing the area, solicit one or more appli-
cations and designate a new community action agency to provide programs,
projects, and services to the area, that is—
‘‘(A) a community action agency that is a private, nonprofit organization
and that is geographically located in an area in reasonable proximity of, or
contiguous to, the unserved area and that is already providing similar pro-
grams, projects, and services, and that has demonstrated financial capacity
to manage and account for Federal funds; or
‘‘(B) if no community action agency described in subparagraph (A) is
available, a private, nonprofit organization (which may include an eligible
entity) that is geographically located in, or is in reasonable proximity to,
the unserved area and that is capable of providing a broad range of pro-
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grams, projects, and services designed to achieve the purposes of this sub-
title as stated in section 672.
‘‘(2) REQUIREMENT.—In order to serve as the eligible entity for the service
area, an entity described in paragraph (1) shall agree to ensure that the gov-
erning board of directors of the entity will meet the requirements of subsection
(c).
‘‘(3) COMMUNITY.—A service area referred to in this subsection or a portion
thereof shall be treated as a community for purposes of this subtitle.
‘‘(4) INTERIM DESIGNATION.—If no entity that meets the requirements of para-
graphs (1) and (2) is available for designation as a permanent eligible entity,
the State may designate a private, nonprofit agency (or public agency if a pri-
vate, nonprofit is not available) on an interim basis for no more than 1 year
while the State completes a selection process for a permanent eligible entity
that meets the requirements of paragraphs (1) and (2). An agency designated
on an interim basis shall be capable of providing programs, projects, and serv-
ices designed to achieve the purposes of this subtitle as stated in section 672
and have demonstrated financial capacity to manage and account for Federal
funds, and may be designated as a permanent eligible entity only if, by the time
of permanent designation, it meets all the requirements of paragraphs (1) and
(2).
‘‘(b) MERGER, COMBINATION, OR PRIVATIZATION OF ELIGIBLE ENTITIES.—
‘‘(1) IN GENERAL.—If an eligible entity receiving subgrant funds makes a de-
termination described in paragraph (2) and notifies the State, the State—
‘‘(A) shall assist in developing a plan for implementing such merger, com-
bination, or privatization, including a budget for transitional costs not to
exceed 2 years in duration;
‘‘(B) in the case of a merger or combination, shall provide to the merged
or combined entity an amount of funding under section 679(a)(1) equal to
the sum of amounts the merged or combined entities each received under
section 679(a)(1) immediately before the merger or combination.
‘‘(2) COVERED MERGER, COMBINATION, OR PRIVATIZATION.—This subsection ap-
plies when—
‘‘(A) 2 or more eligible entities determine that the geographic areas of a
State that they serve can be more effectively served under common control
or shared management; or
‘‘(B) a public organization that is an eligible entity determines that the
area it serves can be more effectively served if it becomes a private, non-
profit organization.
‘‘(3) PLANS.—A State may establish requirements for merger, combination, or
privatization plans and for a determination that the merged, combined, or
privatized entity, or entities, will be capable of conducting a broad range of pro-
grams, projects, and services designed to achieve the purposes of this subtitle
as stated in section 672 consistent with the comprehensive community needs as-
sessments for the areas served.
‘‘(4) STATE DETERMINATION.—If a State determines that a merged, combined,
or privatized entity or entities will be capable of conducting a broad range of
programs, projects, and services as specified in paragraph (3), it shall designate
the merged, combined, or privatized entity or entities to serve the area(s) in
question without soliciting applications from other entities.
‘‘(c) TRIPARTITE BOARDS.—
‘‘(1) PRIVATE, NONPROFIT ORGANIZATIONS.—
‘‘(A) BOARD.—In order for a private, nonprofit organization to be consid-
ered to be an eligible entity for purposes of section 673(7), the entity shall
be governed by a tripartite board of directors described in subparagraph (C)
that fully participates in the development, planning, implementation, over-
sight, and evaluation of the programs, projects, and services carried out or
provided through the subgrant made under section 679(a)(1) and all activi-
ties of the entity.
‘‘(B) SELECTION.—The members of the board referred to in subparagraph
(A) shall be selected by the private, nonprofit organization.
‘‘(C) COMPOSITION OF BOARD.—The board shall be composed so as to as-
sure that—
‘‘(i) 1⁄3 of the members of the board are elected public officials holding
office on the date of selection, or their representatives (but if an elected
public official chooses not to serve, such official may designate a rep-
resentative to serve as the voting board member);
‘‘(ii) not fewer than 1⁄3 of the members are persons chosen in accord-
ance with democratic selection procedures adequate to assure that such
members are representative of low-income individuals and families in
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the service area; and if selected to represent a specific geographic area,
such member resides in that area; and
‘‘(iii) the remainder of the members may be comprised of representa-
tives from business, industry, labor, religious, educational, charitable,
or other significant groups and interests in the community.
‘‘(D) EXPERTISE.—The eligible entity shall ensure that the members of the
board are provided resources, which may include contracted services with
individuals and organizations with expertise in financial management, ac-
counting, and law, to support the work of the board.
‘‘(E) COMPLIANCE WITH TAX-EXEMPT AND OTHER REQUIREMENTS.—The
board of a private, nonprofit organization shall ensure that the board oper-
ates and conducts activities under the subgrant made under section
679(a)(1) in a manner that complies with—
‘‘(i) the requirements for maintaining tax-exempt status under sec-
tion 501(a) of the Internal Revenue Code of 1986 (26 U.S.C. 501(a)) re-
garding the governance of charities under section 501(c)(3) of the Inter-
nal Revenue Code of 1986 (26 U.S.C. 501(c)(3)); and
‘‘(ii) applicable requirements of State nonprofit law.
‘‘(2) PUBLIC ORGANIZATIONS.—
‘‘(A) BOARD.—In order for a local public (governmental) entity to be con-
sidered to be an eligible entity for purposes of section 673(7), the entity
shall ensure that the programs, projects, and services carried out or pro-
vided through the subgrant made under section 679(a)(1) are administered
under the supervision of a tripartite board described in subparagraph (C)
that fully participates in the development, planning, implementation, over-
sight, and evaluation of such programs, projects, and services.
‘‘(B) SELECTION.—The members of the board referred to in subparagraph
(A) shall be selected by the local public entity.
‘‘(C) COMPOSITION OF BOARD.—The board shall be composed so as to as-
sure that—
‘‘(i) not more than 1⁄3 of the members of the board are employees or
officials, including elected officials, of the unit of government in which
the organization is located;
‘‘(ii) not fewer than 1⁄3 of the members are persons chosen in accord-
ance with democratic selection procedures adequate to assure that such
members are representative of low-income individuals and families in
the service area; and if selected to represent a specific geographic area,
such member resides in that area; and
‘‘(iii) the remainder of the members may be comprised of representa-
tives from business, industry, labor, religious, educational, charitable,
or other significant groups and interests in the community.
‘‘(D) EXPERTISE.—The eligible entity shall ensure that the members of the
board are provided resources, which may include contracted services with
individuals and organizations with expertise in financial management, ac-
counting, and law, to support the work of the board.
‘‘(E) COMPLIANCE WITH STATE REQUIREMENTS AND POLICY.—The board of
a public organization shall ensure that the board operates in a manner that
complies with State requirements for open meetings, financial trans-
parency, and State open records policy.
‘‘(3) BOARD VACANCIES.—To fulfill the requirements under this section, an eli-
gible entity shall fill a board vacancy not later than 6 months after such va-
cancy arises. In the event that an eligible entity is unable to fill a board va-
cancy in the 6-month period, the entity shall certify to the State that it is mak-
ing a good faith effort to fill the vacancy and shall receive 1 additional 6-month
period to fill such vacancy.
‘‘(4) SAFEGUARD.—Neither the Federal Government nor a State or local gov-
ernment shall require a religious organization to alter its form of internal gov-
ernance, except (for purposes of administration of the community services block
grant program) as provided in section 680(c).
‘‘(d) OPERATIONS AND DUTIES OF THE BOARD.—The duties of a board described in
paragraph (1) or (2) of subsection (c) shall include—
‘‘(1) in the case of a board for a private, nonprofit organization that is an eligi-
ble entity, having legal and financial responsibility for administering and over-
seeing the eligible entity, including making proper use of Federal funds;
‘‘(2) establishing terms for officers and adopting a code of ethical conduct, in-
cluding a conflict of interest policy for board members;
‘‘(3) participating in each comprehensive community needs assessment, devel-
oping and adopting for the corresponding eligible entity an agency-wide stra-
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tegic plan, and preparing the community action plan for the use of funds under
this subtitle;
‘‘(4) approving the eligible entity’s operating budget;
‘‘(5) reviewing all major policies such that—
‘‘(A) for private, nonprofit organizations that are eligible entities, a review
includes conducting annual performance reviews of the eligible entity’s chief
executive officer (or individual holding an equivalent position); and
‘‘(B) for local public entities that are eligible entities, a review includes
participating in annual performance reviews of the eligible entity’s chief ex-
ecutive officer (or individual holding an equivalent position);
‘‘(6) performing oversight of the eligible entity to include—
‘‘(A) conducting assessments of the eligible entity’s progress in carrying
out programmatic and financial provisions in the community action plan;
and
‘‘(B) in the case of any required corrective action, reviewing the eligible
entity’s plans and progress in remedying identified deficiencies; and
‘‘(7) concerning personnel policies and procedures—
‘‘(A) in the case of private, nonprofit organizations that are eligible enti-
ties, adopting personnel policies and procedures, including for hiring, an-
nual evaluation, compensation, and termination, of the eligible entity’s chief
executive officer (or individual holding a similar position); and
‘‘(B) in the case of local public entities that are eligible entities, reviewing
personnel policies and procedures, including for hiring, annual evaluation,
compensation, and termination, of the eligible entity’s chief executive officer
(or individual holding a similar position).
‘‘SEC. 681. OFFICE OF COMMUNITY SERVICES.
‘‘(a) OFFICE.—
‘‘(1) ESTABLISHMENT.—The Secretary shall establish an Office of Community
Services in the Department to carry out the functions of this subtitle.
‘‘(2) DIRECTOR.—The Office shall be headed by a Director (referred to in this
section as the ‘Director’).
‘‘(b) GRANTS, CONTRACTS, AND COOPERATIVE AGREEMENTS.—The Secretary, acting
through the Director, shall carry out the functions of this subtitle through grants,
contracts, or cooperative agreements.
‘‘SEC. 682. TRAINING, TECHNICAL ASSISTANCE, AND RELATED ACTIVITIES.
‘‘(a) ACTIVITIES.—
‘‘(1) IN GENERAL.—The Secretary shall—
‘‘(A) use amounts reserved under section 691(c)(2) for training, technical
assistance, planning, assessment, and performance measurement, as de-
scribed in this section and in sections 684 and 686, to assist States, eligible
entities, Tribal grantees, and other community services network organiza-
tions in—
‘‘(i) building and using evidence of effectiveness in reducing poverty
conditions, including through development and dissemination of infor-
mation about clearinghouses and other resources that identify relevant
evidence-based initiatives, for use in connection with the Community
Action Innovations Program established under paragraph (2);
‘‘(ii) carrying out professional development activities that expand the
capacity of eligible entities and Tribal grantees;
‘‘(iii) carrying out performance measurement, data collection, and re-
porting activities related to programs, projects, and services carried out
under this subtitle; and
‘‘(iv) correcting programmatic deficiencies, including such deficiencies
of eligible entities or Tribal grantees; and
‘‘(B) distribute the amounts reserved under section 691(c)(2)(A) through
grants, contracts, or cooperative agreements with eligible entities, Tribal
grantees, and other community services network organizations described in
subsection (b) for—
‘‘(i) professional development for key community services network or-
ganization personnel;
‘‘(ii) activities to improve community services network organization
programs, financial management, compliance, and governance practices
(including practices related to performance management information
systems);
‘‘(iii) activities that train community services network organizations
and their staff and board members to effectively address the needs of
low-income families and communities through place-based strategies
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that address local causes and conditions of poverty through coordinated
investment and integrated service delivery; and
‘‘(iv) activities that train community services network organizations
in building and using evidence of effectiveness in reducing poverty con-
ditions and that support effective administration of funds under the
Community Action Innovations Program established under paragraph
(2).
‘‘(2) INNOVATIVE AND EVIDENCE-BASED PROJECTS TO REDUCE POVERTY.—
‘‘(A) IN GENERAL.—The Secretary shall use amounts reserved under sec-
tion 691(c)(3) for a Community Action Innovations Program to—
‘‘(i) award grants, contracts, or cooperative agreements to eligible en-
tities, Tribal grantees, and other community services network organiza-
tions, including consortia of such entities, grantees, or organizations to
facilitate innovation and use of evidence-based practice designed to re-
duce poverty conditions, including through whole family approaches
that create opportunities for, and address the needs of, parents and
children together; and
‘‘(ii) disseminate results for public use.
‘‘(B) PROJECTS.—The Secretary shall award funds from its Community
Action Innovations Program for projects to enable—
‘‘(i) replication or expansion of innovative practices with dem-
onstrated evidence of effectiveness, with priority given to those with
the strongest evidence base as determined through a broad review of
available studies; or
‘‘(ii) testing of innovative practices to determine their effectiveness,
with priority given to those incorporating rigorous, independent evalua-
tion to further build the evidence base.
‘‘(C) USE OF FUNDS.—The funds reserved for use under this paragraph
may be used by awardees for resources or activities necessary to replicate,
expand, or test innovative and evidence-based practices, including costs of
training and technical assistance, evaluation, data collection, and tech-
nology.
‘‘(D) EXPENSES.—The funds reserved for use under this paragraph may be
used for reasonable expenses of awardees, associated with administration
of projects and dissemination of their results.
‘‘(E) AWARDS AND OBLIGATION.—The Secretary shall award and obligate
funds reserved for projects under this paragraph during the first program
year for which the funds are appropriated. Grant funds awarded under this
paragraph shall remain available for expenditure by the awardee not later
than 36 months after the date of award by the Secretary, unless a longer
period of availability is approved by the Secretary based on extenuating cir-
cumstances and demonstrated evidence of effectiveness.
‘‘(b) ELIGIBLE ENTITIES, TRIBAL GRANTEES, AND OTHER COMMUNITY SERVICES
NETWORK ORGANIZATIONS.—Eligible entities, Tribal grantees, and other community
services network organizations referred to in subsection (a)(1)(B) shall include such
entities, grantees, and organizations (and their partners, including institutions of
higher education) with demonstrated expertise in providing training for individuals
and organizations on methods of effectively addressing the needs of low-income fam-
ilies and communities and, if appropriate, expertise in Tribal issues.
‘‘(c) TRAINING AND TECHNICAL ASSISTANCE PROCESS.—‘The process for determining
the training and technical assistance to be carried out under subsection (a)(1)
shall—
‘‘(1) ensure that the needs of eligible entities, Tribal grantees, and programs
relating to improving program quality (including quality of financial manage-
ment practices) are addressed to the maximum extent feasible; and
‘‘(2) incorporate mechanisms to ensure responsiveness to local needs, includ-
ing an ongoing procedure for obtaining input from the national and State net-
works of eligible entities.
‘‘SEC. 683. STATE MONITORING OF ELIGIBLE ENTITIES.
‘‘In order to determine whether eligible entities receiving subgrants under this
subtitle meet performance goals, administrative standards, financial management
requirements, and other requirements under this subtitle, the State shall conduct
the following reviews of eligible entities:
‘‘(1) A full onsite review of each eligible entity at least once during each 3-
year period.
‘‘(2) An onsite review of each newly designated eligible entity immediately
after the completion of the first year in which such entity receives funds
through the community services block grant program under this subtitle.
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‘‘(3) Followup reviews, including onsite reviews scheduled in a corrective ac-
tion plan (including return visits), in a calendar quarter for eligible entities
with programs, projects, or services that fail to meet the State’s performance
criteria, standards, financial management requirements, or other significant re-
quirements established under this subtitle.
‘‘(4) Other reviews as appropriate, including reviews of eligible entities with
programs, projects, and services that have had other Federal, State, or local
grants (other than assistance provided under this subtitle) terminated for cause.
‘‘(5) In conducting reviews, including as required by paragraph (1), a State
may conduct a remote (including virtual) review of an eligible entity in extraor-
dinary circumstances if approved by the Secretary on a case-by-case basis.
‘‘SEC. 684. ASSESSMENTS; CORRECTIVE ACTION; REDUCTION OR ELIMINATION OF FUNDING.
‘‘(a) ASSESSMENTS OF STATES BY THE SECRETARY.—
‘‘(1) IN GENERAL.—The Secretary shall conduct, in not fewer than 1/5 of the
States in each fiscal year, assessments (including investigations) of State com-
pliance with this subtitle, including requirements relating to the use of funds
received under this subtitle, requirements applicable to State plans submitted
under section 678(b), and requirements of section 679(a)(2).
‘‘(2) REPORT TO STATES.—The Secretary shall submit to each State assessed,
and make available to the public on the Department’s website, a report con-
taining—
‘‘(A) the results of such assessment; and
‘‘(B)(i) recommendations for improvements designed to enhance the ben-
efit and impact of the activities carried out with such funds; and
‘‘(ii) in the event a serious deficiency is found regarding a State’s compli-
ance with this subtitle, including requirements relating to the use of funds
received under this subtitle, a proposed corrective action plan.
‘‘(3) STATE RESPONSE.—Not later than 45 days after receiving a report under
paragraph (2)—
‘‘(A) a State that received recommendations under paragraph (2)(B)(i)
shall submit to the Secretary and make available to the public on the State
lead agency’s website a plan of action in response to the recommendations;
and
‘‘(B) a State that received a proposed corrective action plan under para-
graph (2)(B)(ii) shall agree to implement the corrective action plan proposed
by the Secretary or propose to the Secretary and make available to the pub-
lic on the State lead agency’s website a different corrective action plan, de-
veloped by the State in a timely manner that the State will implement
upon approval by the Secretary.
‘‘(4) REPORT TO CONGRESS.—The Secretary shall submit the results of the as-
sessments annually, as part of the report submitted by the Secretary in accord-
ance with section 686(b)(2).
‘‘(5) ENFORCEMENT.—
‘‘(A) REDUCTION OR ELIMINATION OF FUNDING.—If the Secretary deter-
mines, in a final decision based on an assessment conducted under this sec-
tion, that a State fails to meet the requirements of this subtitle, the Sec-
retary may, after providing adequate notice and an opportunity for a hear-
ing, initiate proceedings to reduce or eliminate the amount of funding ap-
portioned and allocated to the State as described in section 675 or 676, as
applicable (and, if necessary, deobligate such funding).
‘‘(B) DIRECT AWARDS TO OTHER ENTITIES.—
‘‘(i) REDUCTION OR ELIMINATION OF STATE FUNDING; LACK OF AP-
PROVED STATE PLAN.—If the Secretary reduces or eliminates funding to
a State under subparagraph (A), the Secretary shall award funding di-
rectly as provided under clauses (ii) and (iii). If, for a particular fiscal
year, a State plan is not approved by the Secretary in accordance with
section 678(c), the Secretary may award funding directly as provided
under clauses (ii) and (iii).
‘‘(ii) DIRECT FUNDING TO ELIGIBLE ENTITIES.—If funding specified in
section 679(a)(1) is reduced or eliminated due to the Secretary’s reduc-
tion or elimination of funding under subparagraph (A), or if the Sec-
retary chooses to award funding directly due to the lack of an approved
State plan as authorized in clause (i), the Secretary shall award finan-
cial assistance in the amount of such reduced or eliminated funding, or
in the amount the State would have received for the purposes specified
in section 679(a)(1) had a State plan been approved, directly (by grant
or cooperative agreement) to affected eligible entities (provided that
any such entity has not had its funding under this subtitle eliminated
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or its designation as an eligible entity terminated by the State in ac-
cordance with subsections (b) and (c) of section 684) to carry out the
activities described in section 679(c). In awarding such funding, the
Secretary shall ensure that each such affected eligible entity receives
the same proportionate share of funding under section 679(a)(1) that it
received in the previous fiscal year.
‘‘(iii) STATEWIDE FUNDS.—If funding specified in section 679(b) is re-
duced or eliminated due to the Secretary’s reduction or elimination of
funding under subparagraph (A), or if the Secretary chooses to award
funding directly due to the lack of an approved State plan as author-
ized in clause (i), the Secretary shall reserve an amount equal to the
amount of such reduced or eliminated funds, or to the amount the State
would have received for the purposes specified in section 679(b) had a
State plan been approved. The Secretary may use such amount for such
purposes directly or through a grant or cooperative agreement to com-
munity services network organizations (other than the State itself).
‘‘(iv) REDUCTION.—In the case of expenditure as provided in accord-
ance with this subparagraph, the Secretary shall reduce funding the
State would otherwise have received under section 675 or 676 (and, if
necessary, deobligate such funding) for the appropriate fiscal year by
an amount equal to the amount so expended.
‘‘(6) TRAINING AND TECHNICAL ASSISTANCE.—The Secretary, through the De-
partment’s own employees or contractors (rather than under grants, contracts,
or cooperative agreements issued under section 682), shall provide training and
technical assistance to States with respect to the development or implementa-
tion of the States’ corrective action plans.
‘‘(b) DETERMINATION OF ELIGIBLE ENTITY FAILURE TO COMPLY.—
‘‘(1) CORRECTIVE ACTION BY ELIGIBLE ENTITIES.—If the State determines, on
the basis of a review pursuant to section 683 or section 685, that there is a seri-
ous deficiency regarding an eligible entity’s compliance with this subtitle, the
State shall inform the entity of the serious deficiencies that shall be corrected
and provide technical assistance for the corrective action.
‘‘(2) ELIGIBLE ENTITY CORRECTIVE ACTION PLANS.—An eligible entity that is
found to have a serious deficiency under paragraph (1) shall develop, in a timely
manner, a corrective action plan that shall be subject to the approval of the
State, and that shall specify—
‘‘(A) the deficiencies to be corrected;
‘‘(B) the actions to be taken to correct such deficiencies; and
‘‘(C) the timetable for accomplishment of the corrective actions specified.
‘‘(3) FINAL DECISION.—If the State determines, on the basis of a final decision
in a review conducted under section 683, that an eligible entity fails to comply
with the terms of a corrective action plan under paragraph (2) relating to cor-
rection of a serious deficiency for the eligible entity, the State may, after pro-
viding adequate notice and an opportunity for a hearing, initiate proceedings to
withhold, reduce, or eliminate the funding provided under section 679(a)(1) to
the eligible entity (including, in the case of elimination of funding, terminating
the designation under this subtitle of the eligible entity) unless the entity cor-
rects the serious deficiency.
‘‘(c) REVIEW.—A State’s decision to withhold, reduce, or eliminate funding, or to
terminate the designation of an eligible entity (or eligible entities, as applicable)
may be reviewed by the Secretary. Upon request by a community services network
organization, the Secretary shall review such a determination. The review shall be
completed not later than 60 days after the Secretary receives from the State all nec-
essary documentation relating to the determination. The State shall submit such
documentation within a reasonable time frame established by the Secretary.
‘‘(d) DIRECT ASSISTANCE.—Whenever the Secretary determines that a State has
violated the State plan described in section 678(b) (including the assurance de-
scribed in section 678(b)(6)) and the State has reduced or eliminated the funding
provided under section 679(a) to any eligible entity or entities or terminated the eli-
gible entity designation of any eligible entity or entities before the completion of the
State proceedings described in section 678(b)(6) (including, if applicable, the pro-
ceedings required by subsection (b)) and the Secretary’s review as required by sub-
section (c), the Secretary may provide financial assistance under this subtitle to the
affected eligible entity or entities directly until the violation is corrected by the
State. In such a case, the Secretary may reduce funding the State would otherwise
have received under section 675 or 676 (and, if necessary, deobligate such funding)
for the appropriate fiscal year by an amount equal to the financial assistance pro-
vided directly by the Secretary to such eligible entity or entities.
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‘‘SEC. 685. STATE AND LOCAL FISCAL CONTROLS AND AUDITS.
‘‘(a) FISCAL CONTROLS, PROCEDURES, AUDITS, AND INSPECTIONS.—A State that re-
ceives funds under this subtitle shall—
‘‘(1) establish fiscal control and fund accounting procedures necessary to as-
sure the proper disbursal of, and accounting for, Federal funds paid to the State
under this subtitle, including procedures for monitoring the funds provided
under this subtitle;
‘‘(2) ensure that cost and accounting standards of the Office of Management
and Budget apply to a subrecipient of the funds under this subtitle;
‘‘(3) in accordance with subsections (b) and (c), prepare, not less than once
each year, an audit of the expenditures of the State of amounts received under
this subtitle; and
‘‘(4) make appropriate books, documents, papers, and records available to the
Secretary and the Comptroller General of the United States, or any of their
duly authorized representatives, for examination, copying, or mechanical repro-
duction, on or off the premises of the appropriate entity, upon a reasonable re-
quest for the items.
‘‘(b) INDEPENDENT ENTITY.—Subject to subsection (c), each audit required by sub-
section (a)(3) shall be conducted by an entity independent of any agency admin-
istering activities or services under this subtitle and shall be conducted in accord-
ance with generally accepted accounting principles.
‘‘(c) SINGLE AUDIT REQUIREMENTS.—
‘‘(1) IN GENERAL.—Any audit under this subsection shall be conducted in the
manner and to the extent provided in chapter 75 of title 31, United States Code
(commonly known as the ‘Single Audit Act Amendments of 1984’) except in the
event a serious financial deficiency is identified.
‘‘(2) SERIOUS FINANCIAL DEFICIENCY.—In the event that such a deficiency is
identified, the Secretary shall order—
‘‘(A) an audit conducted as described in subsection (a); or
‘‘(B) an audit of each of the accounts involved, in accordance with sub-
sections (b) and (d).
‘‘(d) SUBMISSION OF COPIES.—Not later than 30 days after the completion of each
audit in a State as required in subsection (a)(3), the chief executive officer of the
State shall submit copies of such audit, at no charge, to any eligible entity that was
the subject of the audit, to the legislature of the State, and to the Secretary.
‘‘(e) REPAYMENTS.—If the Secretary, after review of the audit, finds that a State
has not expended an amount of funds in accordance with this subtitle, the Secretary
is authorized to withhold funds from a State under this subtitle until the State rem-
edies the improperly expended funds for the original purposes for which the grant
funds were intended.
‘‘(f) RESPONSE TO COMPLAINTS.—The Secretary shall respond in an expeditious
manner to complaints of a substantial or serious nature that a State has failed to
use grant funds received under section 675 or 676 or to carry out State activities
under this subtitle in accordance with the provisions of this subtitle.
‘‘(g) INVESTIGATIONS.—Whenever the Secretary determines that there is a pattern
of complaints regarding failures described in subsection (f) or a complaint of a seri-
ous deficiency concerning any State, the Secretary shall conduct an investigation of
the use of the funds received under this subtitle by such State in order to ensure
compliance with the provisions of this subtitle.
‘‘SEC. 686. ACCOUNTABILITY AND REPORTING REQUIREMENTS.
‘‘(a) STATE ACCOUNTABILITY AND REPORTING REQUIREMENTS.—
‘‘(1) PERFORMANCE MEASUREMENT.—
‘‘(A) IN GENERAL.—Beginning with the first fiscal year following the tran-
sition period described in section 3 of the Community Services Block Grant
Modernization Act of 2022, each State that receives funds under this sub-
title shall participate, and shall ensure that all eligible entities in the State
participate, in a results-oriented performance measurement system that the
Secretary is satisfied meets the requirements of section 689(b)(1).
‘‘(B) SUBCONTRACTORS.—The State may elect to have subcontractors of
the eligible entities under this subtitle participate in the results-oriented
performance measurement system. If the State makes that election, ref-
erences in this section to eligible entities shall be considered to include such
subcontractors.
‘‘(C) ELIGIBLE ENTITY REPORTS.—Eligible entities shall provide the results
measured by their performance measurement system and such other re-
ports as the State may require.
‘‘(2) ANNUAL REPORT.—Each State receiving funds under this subtitle shall
annually prepare, and submit to the Secretary by March 31 of each year, a re-
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16
port on the performance of the State and eligible entities in the State, including
achievement with respect to performance measurements that were used by com-
munity services network organizations in the State for the previous fiscal year.
Each State shall also include in the report—
‘‘(A) an accounting of the expenditure of funds received by the State
through the community services block grant program, including an account-
ing of funds spent on administrative or indirect costs by the State and the
eligible entities and funds spent by the eligible entities on local programs,
projects, and services;
‘‘(B) information on the number and characteristics of participants served
under this subtitle in the State, based on data collected from the eligible
entities;
‘‘(C) a summary describing the training and technical assistance offered
by the State under subparagraph (B) of section 679(b)(1) during the year
covered by the report;
‘‘(D) information on the total budget and activities of the eligible entities
receiving subgrants from the State under this subtitle, including local and
private resources available for a purpose described in section 672; and
‘‘(E) a report on the manner in which the State and eligible entities and
other recipients of funds under this subtitle have implemented results-ori-
ented management practices based on their performance measurement sys-
tems.
‘‘(b) REPORTING REQUIREMENTS.—
‘‘(1) CONTENTS.—Not later than September 30 of each year, the Secretary
shall, directly or by grant or contract, prepare a report including—
‘‘(A) the information included in the State annual reports under sub-
section (a)(2) for the preceding fiscal year;
‘‘(B) a report on the performance of the Department in the preceding year
regarding carrying out critical roles and responsibilities under this subtitle,
including with regard to timeliness in allocating and making appropriated
funds available for expenditure to States, approvals or notifications to
States concerning State plans and plan revisions, and conducting assess-
ments of States and implementation of State corrective action plans (includ-
ing status of and follow-up on recommendations made in previous State as-
sessments and corrective action plans);
‘‘(C) a description of the training and technical assistance activities fund-
ed by the Secretary under section 682 and the results of those activities;
and
‘‘(D) a report on the Community Action Innovations Program authorized
under section 682(a)(2), including a description of training and technical as-
sistance funded by the Secretary, the rationale for projects that received
support, a description of funded activities and their results, and a summary
of ways in which the Program has expanded use of evidence-based practice
or contributed to building the evidence base designed to reduce poverty con-
ditions.
‘‘(2) SUBMISSION.—The Secretary shall submit to the Committee on Education
and Labor of the House of Representatives and to the Committee on Health,
Education, Labor, and Pensions of the Senate the report described in paragraph
(1) and any recommendations the Secretary may have with respect to such re-
port.
‘‘(3) ELECTRONIC DATA SYSTEM FOR REPORTS TO STATES AND ELIGIBLE ENTI-
TIES.—The Secretary, through the Department’s own employees or contractors
(rather than under grants, contracts, or cooperative agreements issued under
section 682), shall provide technical assistance, including support for the devel-
opment and maintenance of an electronic data system for the reports under this
section, to the States and eligible entities to enhance the quality and timeliness
of reports submitted under this subtitle. The system shall be coordinated and
consistent with the data systems established for other programs of the Depart-
ment that are managed by eligible entities, including all programs of the Ad-
ministration for Children and Families or successor administrative units in
which the office is located.
‘‘SEC. 687. LIMITATIONS ON USE OF FUNDS.
‘‘(a) CONSTRUCTION OF FACILITIES.—
‘‘(1) LIMITATIONS.—Except as provided in paragraphs (2) and (3) of this sub-
section and in paragraphs (2) and (3) of section 690(a), grants or subgrants
made under this subtitle may not be for the purchase or improvement of land,
or the purchase, construction or permanent improvement of any building or
other facility.
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‘‘(2) WAIVER.—The Secretary may waive the limitation contained in paragraph
(1) upon a State request for such a waiver if the Secretary finds that—
‘‘(A) the request describes extraordinary circumstances to justify the pur-
chase or improvement of land, or the purchase, construction, or permanent
improvement of any building or other facilities; and
‘‘(B) permitting the waiver will contribute to the ability of the State and
eligible entities to carry out a purpose described in section 672 at substan-
tially reduced costs.
‘‘(3) ARCHITECTURAL BARRIERS TO ACCESSIBILITY.—Grants or subgrants made
under this subtitle may be used by eligible entities or Tribal grantees for mak-
ing material improvements in the accessibility of the physical structures for in-
dividuals with disabilities seeking services of such entities.
‘‘(b) POLITICAL ACTIVITIES.—
‘‘(1) TREATMENT AS A STATE OR LOCAL AGENCY.—For purposes of chapter 15
of title 5, United States Code, any entity that assumes responsibility for plan-
ning, developing, and coordinating activities under this subtitle and receives as-
sistance under this subtitle shall be deemed to be a State or local agency. For
purposes of paragraphs (1) and (2) of section 1502(a) of such title, any entity
receiving assistance under this subtitle shall be deemed to be a State or local
agency.
‘‘(2) PROHIBITIONS.—A program, project, or service assisted under this sub-
title, and any individual employed by, or assigned to or in, such a program,
project, or service (during the hours in which the individual is working on be-
half of the program, project, or service) shall not engage in—
‘‘(A) any partisan or nonpartisan political activity or any political activity
associated with a candidate, or contending faction or group, in an election
for public or party office; or
‘‘(B) any activity to provide voters or prospective voters with transpor-
tation to the polls or similar assistance in connection with any election.
‘‘(3) REGISTRATION.—None of the funds appropriated to carry out this subtitle
may be used to conduct voter registration activities. Nothing in this subtitle
prohibits entities receiving assistance under this subtitle from making its facili-
ties available during hours of operation for use by nonpartisan organizations to
increase the number of eligible citizens who register to vote in elections for Fed-
eral office.
‘‘(c) NONDISCRIMINATION.—
‘‘(1) IN GENERAL.—No person shall, on the basis of race, color, national origin,
or sex, be excluded from participation in, be denied the benefits of, or be sub-
jected to discrimination under, any program, project, or service funded in whole
or in part with funds made available under this subtitle. Any prohibition
against discrimination on the basis of age under the Age Discrimination Act of
1975 (42 U.S.C. 6101 et seq.) or with respect to an otherwise qualified indi-
vidual with a disability as provided in section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 794), or title II of the Americans with Disabilities Act of 1990
(42 U.S.C. 12131 et seq.), shall also apply to any such program, project, or serv-
ice.
‘‘(2) ACTION OF SECRETARY.—Whenever the Secretary determines that a State
that has received a payment under this subtitle has failed to comply with para-
graph (1) or an applicable regulation, the Secretary shall notify the chief execu-
tive officer of the State and shall request that the officer secure compliance. If
within a reasonable period of time, not to exceed 60 days, the chief executive
officer fails or refuses to secure compliance, the Secretary is authorized to—
‘‘(A) refer the matter to the Attorney General with a recommendation
that an appropriate civil action be instituted;
‘‘(B) exercise the powers and functions provided by title VI of the Civil
Rights Act of 1964 (42 U.S.C. 2000d et seq.), the Age Discrimination Act
of 1975 (42 U.S.C. 6101 et seq.), section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 794), or title II of the Americans with Disabilities Act of
1990 (42 U.S.C. 12131 et seq.), as may be applicable; or
‘‘(C) take such other action as may be provided by law.
‘‘(3) ACTION OF ATTORNEY GENERAL.—When a matter is referred to the Attor-
ney General pursuant to paragraph (2), or whenever the Attorney General has
reason to believe that the State is engaged in a pattern or practice of discrimi-
nation in violation of the provisions of this subsection, the Attorney General
may bring a civil action in any appropriate United States district court for such
relief as may be appropriate, including injunctive relief.
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‘‘SEC. 688. CHILD SUPPORT SERVICES AND REFERRALS.
‘‘During each fiscal year for which an eligible entity receives a subgrant under
section 679(a), such entity shall—
‘‘(1) inform custodial parents or legal guardians that participate in programs,
projects, or services carried out or provided under this subtitle about the avail-
ability of child support services; and
‘‘(2) refer custodial parents or legal guardians to the child support offices of
State and local governments.
‘‘SEC. 689. REGULATIONS.
‘‘(a) REGULATIONS.—The Secretary shall promulgate regulations implementing
this subtitle, including regulations regarding—
‘‘(1) State plans, including the form and information required for State plans
submitted to the Secretary, and criteria for determining whether a State plan
revision is to be considered a major revision;
‘‘(2) community action plans, including the form and information required for
community action plans submitted to States;
‘‘(3) State monitoring of eligible entities; and
‘‘(4) reports to the Secretary described in section 686.
‘‘(b) GUIDANCE.—
‘‘(1) PERFORMANCE MEASUREMENT.—The Secretary shall issue guidance re-
garding State and local performance measurement systems. Guidance may in-
clude one or more model performance measurement systems, facilitated by the
Secretary, that States and eligible entities may use to measure their perform-
ance in carrying out the requirements of this subtitle and in achieving the goals
of their community action plans.
‘‘(2) COMPREHENSIVE ANALYSIS OF POVERTY CONDITIONS.—The Secretary shall
issue guidance (including models) for comprehensive community needs assess-
ments described in section 678(e)(1). The guidance shall include methods for
preparing an analysis of all poverty conditions affecting a community and of
local and regional assets for alleviating such conditions.
‘‘SEC. 690. DISCRETIONARY COMMUNITY PROGRAMS.
‘‘(a) GRANTS, CONTRACTS, ARRANGEMENTS, LOANS, AND GUARANTEES.—
‘‘(1) IN GENERAL.—The Secretary shall, from funds appropriated under section
691(b), make grants, loans, or guarantees to States and public agencies and pri-
vate, nonprofit organizations, or enter into contracts or jointly financed coopera-
tive arrangements with States and public agencies and private, nonprofit orga-
nizations (and for-profit organizations, to the extent specified in paragraph
(2)(E)) for each of the objectives described in paragraphs (2) through (4).
‘‘(2) COMMUNITY ECONOMIC DEVELOPMENT.—
‘‘(A) ECONOMIC DEVELOPMENT ACTIVITIES.—The Secretary shall make
grants described in paragraph (1) on a competitive basis to private, non-
profit organizations that are community development corporations to pro-
vide technical and financial assistance for economic development activities
designed to address the economic needs of low-income individuals and fami-
lies by creating employment and business development opportunities.
‘‘(B) CONSULTATION.—The Secretary shall exercise the authority provided
under subparagraph (A) after consultation with other relevant Federal offi-
cials.
‘‘(C) GOVERNING BOARDS.—For a community development corporation to
receive funds to carry out this paragraph, the corporation shall be governed
by a board that shall—
‘‘(i) consist of residents of the community and business and civic lead-
ers; and
‘‘(ii) have as a principal purpose planning, developing, or managing
low-income housing or community development projects.
‘‘(D) GEOGRAPHIC DISTRIBUTION.—In making grants to carry out this
paragraph, the Secretary shall take into consideration the geographic dis-
tribution of funding among States and the relative proportion of funding
among rural and urban areas.
‘‘(E) RESERVATION.—Of the amounts made available to carry out this
paragraph, the Secretary may reserve not more than 1 percent for each fis-
cal year to make grants to private, nonprofit organizations or to enter into
contracts with private, nonprofit, or for-profit organizations to provide tech-
nical assistance to aid community development corporations in developing
or implementing activities funded to carry out this paragraph and to evalu-
ate activities funded to carry out this paragraph.
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‘‘(3) RURAL COMMUNITY DEVELOPMENT ACTIVITIES.—The Secretary shall pro-
vide the assistance described in paragraph (1) for rural community development
activities, which shall include providing—
‘‘(A) grants to private, nonprofit organizations to enable the organizations
to provide assistance concerning home repair to rural low-income families
and planning and developing low-income rural rental housing units; and
‘‘(B) grants to multi-State, regional, private, nonprofit organizations to
enable the organizations to provide training and technical assistance to
small, rural communities concerning meeting their community facility
needs.
‘‘(4) BROADBAND NAVIGATOR PROJECTS.—
‘‘(A) NAVIGATOR PROJECT AUTHORITY.—The Secretary is authorized to pro-
vide assistance described in paragraph (1) for broadband navigator projects
consistent with the purposes of this Act to address the educational and eco-
nomic needs of low-income individuals and communities.
‘‘(B) NAVIGATOR GRANTS.—The Secretary shall make grants consistent
with subparagraph (A) to community action agencies and Tribal grantees
to enable them to provide assistance through trained navigators to low-in-
come individuals and communities to help facilitate access to affordable
high-speed broadband service, internet-enabled devices, digital literacy
training, technical support, and other services to meet the broadband and
digital needs of such individuals and communities.
‘‘(C) PRIORITY.—Priority in the awarding of such grants under paragraph
(4) shall be given to community action agencies and Tribal grantees serving
underserved areas with the most significant unmet broadband and digital
needs.
‘‘(D) TECHNICAL ASSISTANCE.—Of the amounts made available to carry out
broadband navigator projects, the Secretary may reserve up to 5 percent for
grant review, technical assistance, and evaluation.
‘‘(b) EVALUATION.—The Secretary shall require all activities receiving assistance
under this section to be evaluated for their effectiveness. Funding for such evalua-
tions shall be provided as a stated percentage of the assistance or through a sepa-
rate grant or contract awarded by the Secretary specifically for the purpose of eval-
uation of a particular activity or group of activities.
‘‘(c) ANNUAL REPORT.—The Secretary shall compile an annual report containing
a summary of the evaluations required under subsection (b) and a listing of all ac-
tivities assisted under this section. The Secretary shall annually submit such report
to the chairperson of the Committee on Education and Labor of the House of Rep-
resentatives and the chairperson of the Committee on Health, Education, Labor, and
Pensions of the Senate.
‘‘SEC. 691. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There are authorized to be appropriated to carry out this sub-
title (excluding section 690)—
‘‘(1) $1,000,000,000 for each of fiscal years 2023 through 2027; and
‘‘(2) such sums as may be necessary for fiscal years 2028 through 2032.
‘‘(b) DISCRETIONARY PROGRAMS.—There are authorized to be appropriated to carry
out section 690 such sums as may be necessary for fiscal years 2023 through 2032.
‘‘(c) RESERVATIONS BY THE SECRETARY.—Of the amounts appropriated under sub-
section (a) for each fiscal year, the Secretary shall reserve—
‘‘(1) 1⁄2 of 1 percent for carrying out section 675 (relating to grants to terri-
tories);
‘‘(2) 2 percent for activities authorized in section 682(a)(1), of which—
‘‘(A) not less than 50 percent of the amount reserved by the Secretary
under this paragraph shall be awarded through grants, contracts, or cooper-
ative agreements to eligible entities, Tribal grantees, and other community
services network organizations described in section 682(b), for the purpose
of carrying out activities described in section 682(a)(1)(B); and
‘‘(B) the remainder of the amount reserved by the Secretary under this
paragraph may be awarded through grants, contracts, or cooperative agree-
ments to eligible entities, Tribal grantees, and other community services
network organizations described in section 682(b), or other entities with
demonstrated expertise in providing training for individuals and organiza-
tions on methods of effectively addressing the needs of low-income families
and communities and, if appropriate, expertise in Tribal issues;
‘‘(3) 1 percent for the Community Action Innovations Program authorized in
section 682(a)(2); and
‘‘(4) up to $5,000,000 for each of the fiscal years 2023, 2024, and 2025, to
carry out section 686(b)(3).
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‘‘SEC. 692. REFERENCES.
‘‘A reference in any provision of law to the poverty line set forth in section 624
or 625 of the Economic Opportunity Act of 1964 shall be construed to be a reference
to the poverty line defined in section 673 of this subtitle. Except as otherwise pro-
vided, any reference in any provision of law to any community action agency des-
ignated under title II of the Economic Opportunity Act of 1964 shall be construed
to be a reference to an entity eligible to receive funds under the community services
block grant program.’’.
SEC. 3. TRANSITION PERIOD.
(a) TRANSITION PERIOD.—The Secretary of Health and Human Services shall expe-
ditiously announce a transition period for the implementation of any changes in reg-
ulations, procedures, guidance, and reporting requirements of the Community Serv-
ices Block Grant Act (42 U.S.C. 9901 et seq.) as amended by this Act, from the regu-
lations, procedures, guidance, and reporting requirements of the Community Serv-
ices Block Grant Act (42 U.S.C. 9901 et seq.) as in effect immediately before the
date of enactment of this Act.
(b) FEDERAL TRAINING.—The transition period shall include the availability of
Federal training for States and eligible entities regarding compliance with new re-
quirements under the Community Services Block Grant Act (42 U.S.C. 9901 et seq.)
as amended by this Act.
(c) TIMING.—The transition period described in this section—
(1) may not extend later than the date that is 3 months prior to the start
of the second fiscal year after the date of enactment of the Community Services
Block Grant Modernization Act of 2022;
(2) notwithstanding (1), may not extend later than two years after the date
of enactment of the Community Services Block Grant Modernization Act of 2022
for the issuance of final regulations implementing this subtitle; and
(3) may require that certain regulations, procedures, and reporting require-
ments be adopted before other regulations, procedures, or reporting require-
ments.
SEC. 4. CONFORMING AMENDMENTS.
Section 306(a)(6)(C)(ii) of the Older Americans Act of 1965 (42 U.S.C.
3026(a)(6)(C)(ii)) is amended by inserting ‘‘or subsequent years’’ after ‘‘fiscal year
1982’’ and by striking ‘‘section 676B of the Community Services Block Grant Act’’
and inserting ‘‘section 680(c) of the Community Services Block Grant Act’’.
PURPOSE AND SUMMARY
The purpose of H.R. 5129, the Community Services Block Grant
Modernization Act of 2022,1 is to modernize and reauthorize the
Community Services Block Grant Act (the CSBG Act or the Act).2
The Community Services Block Grant provides grants to states
and territories which then distribute subgrants to local eligible en-
tities that provide poverty-alleviating programs and services to im-
prove the economic conditions of low-income individuals, families,
and communities. These local entities include, but are not limited
to, local governments, migrant and seasonal farmworker organiza-
1 H.R. 5129, 117th Cong. (as reported by the H. Comm. on Ed. & Labor, Mar. 16, 2022).
2 Pub. L. No. 97–35, 95 Stat. 511 (1981) (codified as amended at 42 U.S.C. § § 9901–9926).
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21
tions,3 Indian Tribes,4 and Community Action Agencies (CAAs)—
the primary subgrantees of CSBG—led by private, nonprofit orga-
nizations or by local public/government agencies. In addition to the
block grant program, the Act authorizes several discretionary pro-
grams that are carried out by the U.S. Department of Health and
Human Services (HHS). CSBG’s predecessor was first authorized
as the Community Action Program in 1964 as part of the Economic
Opportunity Act of 1964 and was later converted into a block grant
in 1981. The CSBG Act has not been reauthorized since 1998. Re-
authorization will ensure greater certainty for CAAs and other eli-
gible entities that provide crucial services for low-income commu-
nities and modernize outdated provisions so that the Act and its
programs can better address conditions of poverty.
H.R. 5129 reauthorizes the CSBG Act for ten years and author-
izes appropriations for $1 billion annually for FY 2023–FY 2027
and ‘‘such sums’’ for FY 2028–FY 2032. The bill also updates the
small state funding formula, increasing its minimum allotment
from half of one percent to three-quarters of one percent when ap-
propriations reach $900 million (after reservations required under
section 691(c)). Importantly, the bill permanently increases income
eligibility to 200 percent of the federal poverty level (FPL) while
also giving states, territories, and Tribal grantees the added flexi-
bility of serving individuals who exceed the eligibility threshold if
they are continuing to make progress toward their goals of a pro-
gram or service. For example, this would allow a CAA to continue
to provide child care assistance and transportation assistance to a
single parent who has recently received a job offer as he or she con-
tinues toward a goal of self-sufficiency. To ensure a solid founda-
tion for the program’s future, the bill modernizes and streamlines
the CSBG program to strengthen management functions at the fed-
eral, state, and local levels while also enhancing accountability and
performance requirements. H.R. 5129 enjoys the support of the Na-
tional Community Action Foundation (NCAF) and the National As-
sociation for State Community Services Programs (NASCSP).
3 The Economic Opportunity Act of 1964 greatly expanded programs for farmworkers, includ-
ing migrant and seasonal workers, and provided services to farmworkers such as temporary
housing, full time day-care, and referral and assistance services. See Pub. L. No. 88–452, 78
Stat. 508, 524–27 (1964) repealed by Omnibus Budget Reconciliation Act of 1981, Pub. L. No.
97–35, Title VI, § 683(a), 95 Stat. 357, 519. Following the enactment of the Economic Oppor-
tunity Act, over 100 farmworker projects were implemented in 35 states under the Office of Eco-
nomic Opportunity (OEO). See U.S. Dep’t of Health, Ed. & Welfare, Off. Of Econ. Opportunity,
OEO Programs for Migrant and Seasonal Farm Workers 7–9 (1969), https://files.eric.ed.gov/
fulltext/ED028877.pdf. OEO supported fewer projects for farmworkers as time went on and local
sources supported these activities instead. Prior to enactment, essentially no programs/organiza-
tions supported farmworkers, let alone migrant or seasonal workers. As of 2018, there were
twelve migrant and/or seasonal farmworker organizations in nine states (Arizona, California,
Florida, Idaho, New Jersey, New York, Oregon, Washington, and Wisconsin). These organiza-
tions are treated as eligible entities under CSBG. See Nat’l Ass’n for State Cmty. Servs. Pro-
grams, The FFY CSBG 2018 National Performance Update, 7 (2021), https://nascsp.org/wp-
content/uploads/2021/05/NASCSP_2018_National_Report_051421.pdf.
4 Tribal grantees are defined under H.R. 5129 as an Indian Tribe or Tribal organization re-
ceiving direct CSBG funds from the U.S. Department of Health and Human Services. See House
Bill 5129, supra note 1. Indian Tribes may receive funding either as a subgrantee from a state
(considered eligible entities) or may opt to receive a grant directly from the U.S. Department
of Health and Human Services (considered Tribal grantees).
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COMMITTEE ACTION
116TH CONGRESS
On March 12, 2019, the Community Services Block Grant Reau-
thorization Act of 2019 (H.R. 1695) was introduced by Representa-
tives Betty McCollum (D–MN–4), Glenn Thompson (R–PA–15),
Marcia Fudge (D–OH–11), and Elise Stefanik (R–NY–21) and was
referred to the Committee on Education and Labor. No further ac-
tion was taken.
117TH CONGRESS
On August 31, 2021, the Community Services Block Grant Mod-
ernization Act of 2021 (H.R. 5129) was introduced by Representa-
tives Suzanne Bonamici (D–OR–1), Thompson, McCollum, Stefanik,
Mark DeSaulnier (D–CA–11), and James Comer (R–KY–1) and was
referred to the Committee on Education and Labor. While H.R.
5129 maintains the overall structure of the CSBG Act under cur-
rent law, it makes several key changes to the funding level and for-
mulas, eligibility requirements for those served, administrative
processes, and other improvements.
On November 3, 2021, the Committee on Education and Labor’s
Subcommittee on Civil Rights and Human Services (Subcommittee)
held a hearing titled ‘‘A Call to Action: Modernizing the Commu-
nity Services Block Grant’’ (November 3rd Hearing). The purpose
of this hearing was to examine how the CSBG Act reduces poverty
and helps low-income individuals and communities develop eco-
nomically, as well as discuss the changes H.R. 5129 makes to im-
prove and modernize the Act. The Committee heard testimony from
Mr. David Bradley, Chief Executive Officer of the National Com-
munity Action Foundation, Fredericksburg, Virginia; Ms. Katherine
King Galian, Director of Family and Community Resources of Com-
munity Action, Hillsboro, Oregon; Ms. Sharon Scott-Chandler, Ex-
ecutive Vice President and Chief Operating Officer of Action for
Boston Community Development, Inc., Boston, Massachusetts; and
Mr. Clarence H. Carter, Commissioner of the Tennessee Depart-
ment of Human Services, Nashville, Tennessee.
On March 16, 2022, the Committee marked up H.R. 5129. The
Committee considered the following amendments to H.R. 5129:
• Rep. Bonamici offered an amendment in the nature of a
substitute. The amendment was adopted by voice vote.
• Rep. Tim Walberg (R–MI–7) offered an amendment to re-
instate current law’s charitable choice provision. The amend-
ment was defeated by a vote of 22 Yeas and 28 Nays.
• Rep. Diana Harshbarger (R–TN–1) offered an amendment
to reinstate a provision in current law requiring states to pro-
vide an assurance that the state and eligible entities will co-
ordinate with other social service programs to avoid duplica-
tion and describe how the state and eligible entities will coordi-
nate employment and skills development activities with state
and local workforce systems under the Workforce Innovation
and Opportunity Act (WIOA). The amendment was adopted by
voice vote.
• Rep. Lisa McClain (R–MI–10) offered an amendment to
strike language from the bill that allows funding granted from
the new Community Action Innovations Program to fulfill non-
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23
federal match requirements for the purposes of meeting such
requirements in other federal programs. The amendment was
adopted by voice vote.
• Rep. Bob Good (R–VA–5) offered an amendment to pro-
hibit CSBG funds from being used to pay for or reimburse for
health care services. The amendment was defeated by a vote
of 22 Yeas and 28 Nays.
• Rep. Glenn Grothman (R–WI–6) offered an amendment to
strike the income eligibility increase, to restore the current law
eligibility threshold (100 percent of the Federal Poverty Level
(FPL) with a state option to go up to 125 percent FPL), and
to strike the continued eligibility state option. The amendment
was defeated by a vote of 20 Yeas and 30 Nays.
• Rep. Madison Cawthorn (R–NC–11) offered an amendment
to add voter registration activity as a prohibited activity using
program assistance personnel and to prohibit the use of CSBG
funds for the influence of federal, state, or local agency actions
regarding executive orders, legislation, and petitions. The
amendment was defeated by a vote of 22 Yeas and 28 Nays.
• Rep. Julia Letlow (R–LA–5) offered an amendment to
strike language from the bill that requires tripartite boards to
create a conflict-of-interest policy and adds language regarding
a prohibition on board members, their immediate family mem-
bers, or their organizations from receiving direct financial ben-
efit from the CSBG program. The amendment was defeated by
a vote of 24 Yeas and 26 Nays.
H.R. 5129 was reported favorably, as amended, to the House of
Representatives by a vote of 35 Yeas and 14 Nays.
COMMITTEE VIEWS
INTRODUCTION
As the legislative centerpiece for President Lyndon B. Johnson’s
War on Poverty, the Economic Opportunity Act of 1964 (the 1964
Act) authorized community-based antipoverty programs to address
education, employment, and the general welfare of low-income indi-
viduals and their communities.5 Title II of the 1964 Act first au-
thorized Community Action Programs (CAPs) to carry out the mis-
sion of poverty-reduction through local control and ‘‘maximum fea-
sible participation,’’ a novel concept that called for low-income indi-
viduals to have a seat at the table in the development and adminis-
tration of programs in their communities.6 Under the 1964 Act,
local CAPs received funding through the then Office of Economic
Opportunity, and states played only a supportive role, receiving
funding to provide technical assistance to CAPs. In the Omnibus
Reconciliation Act of 1981 (the 1981 Act), Congress significantly re-
structured the program from a national direct grant program to a
block grant program, the Community Service Block Grant (CSBG)
program, whereby states administer funds to and provide oversight
of local entities—predominantly CAAs, formerly CAPs. This re-
structuring created the CSBG program’s framework that exists
5 Economic Opportunity Act of 1964, Pub. L. No. 88–452, § 202, 78 Stat. 508, 516 (1964), re-
pealed by Omnibus Budget Reconciliation Act of 1981, Pub. L. No. 97–35, Title VI, § 1A683(a),
95 Stat. 357, 519.
6 Id.
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24
today. The 1981 Act also placed the program under the newly cre-
ated Office of Community Services (OCS) within HHS.
The CSBG Act was then reauthorized in 1984, 1986, 1990, 1994,
and 1998, and it has not been reauthorized since.7 Congress has
continued to appropriate funds for the Act since 2003, when the
last reauthorization expired. Today, the CSBG program continues
its core mission to support local antipoverty programs that fit the
unique needs of communities.
COMMUNITY ACTION AGENCIES SUPPORT THE SOCIAL SAFETY NET
Federal funds for the CSBG program are allocated first to states
that then allocate funding to local eligible entities. State agencies
play a critical role in the administration and distribution of federal
CSBG resources, providing training, technical assistance, and over-
sight. CAAs, the primary subgrantees of CSBG, are local organiza-
tions, both private and public, with the mission of reducing poverty
through locally designed and delivered programs and services. A
nationwide network of local agencies is dedicated to the mission of
addressing the causes and conditions of poverty to help low-income
individuals and families become economically stable, secure mean-
ingful employment and adequate education, gain and improve lit-
eracy and job-related skills, obtain adequate housing, address
health needs, and participate in the community.
This network of local agencies often administers other federal
programs that support individuals, children, families, and commu-
nities. Out of the over 1,000 CAAs nationwide that receive CSBG
funding, more than half also administer the Low Income Home En-
ergy Assistance Program (LIHEAP) and the Weatherization Assist-
ance Program.8 In addition, CAAs often also administer Head
Start,9 Temporary Assistance for Needy Families (TANF),10 the
Child Care and Development Block Grant (CCDBG),11 and others.
Responding to Unique Community Needs
Each CAA directs funding to identified needs within the commu-
nity that it is designated to represent after conducting a commu-
nity needs assessment, which it then uses to create its program-
ming. The community needs assessment is conducted every three
years to identify the causes and issues surrounding poverty in the
community as well as the resources and services that are needed
to address them. Because of the flexibility afforded under the stat-
ute, CSBG-funded programs are often unique across the country,
reflecting the tailoring to meet the specific needs of different com-
munities. In FY 2018, CAAs used nearly 15 percent of CSBG funds
for housing, nearly 15 percent for health and social behavior devel-
opment, nearly 13 percent for employment, and nearly 11 percent
7 The Community Services Block Grant was last reauthorized in 1998. See Pub. L. No. 105–
285, tit. II, 112 Stat. 2702, 2728 (1998) (codified at 42 U.S.C. § § 9901–9926).
8 Fact Sheet, Nat’l Ass’n for State Cmty. Servs. Programs, FFY 2019 State CSBG Fact Sheet
(2021), https://nascsp.org/wp-content/uploads/2021/04/FFY-2019-NATIONAL-CSBG-FACT-
SHEET-1.pdf.
9 Approximately half of all CAAs run a Head Start program and just over a third operate an
Early Head Start program. See Cmty. Action P’ship, Community Action & Head Start: Cases
of Integration, 2 (2018), https://communityactionpartnership.com/wp-content/uploads/2018/07/
CA_HS-Cases-of-Integration_July2018.pdf.
10 Nat’l Ass’n for State Cmty. Servs. Programs, supra note 3 at 12.
11 Id.
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25
for education.12 Ms. Katherine King Galian, Director of Family and
Community Resources for Community Action in Hillsboro, Oregon
discussed the breadth of services provided during the November
3rd Hearing, stating that, ‘‘Our organization provides community-
based programs across a variety of categories including financial
education, career coaching, utility assistance, and weatherization,
emergency shelter, housing, parenting supports, small business de-
velopment and early childhood education.’’ 13 Flexibility in the use
of CSBG funds allows local entities to address needs that are not
explicitly accounted for or addressed by other programs.
Coordination of Programs and Services
Those served through CSBG often receive a suite of services that
support one another rather than services that only address one
issue. Eligible entities create coordinated interventions and the
CSBG program facilitates coordination of programs and services
from federal, state, and local sources in a way that promotes effi-
cient use of resources. For example, an individual might receive
support securing employment, pursuing an education, accessing
transportation, and obtaining child care all through a CSBG-fund-
ed CAA. This comprehensive approach recognizes that there are
many causes of poverty and a solution for one cause can often be
unsuccessful without addressing other barriers and challenges.
Furthermore, a significant share of services provided by CSBG,
about 18 percent, goes to activities supporting multiple needs, in-
cluding case management, transportation, and child care.14 Accord-
ing to the Community Action Partnership, this ‘‘braiding and
blending [of] resources,’’ including those leveraged from the private
sector, allows these local agencies to not only tailor services to meet
the unique needs of individuals, but also address multiple, simulta-
neous needs that individuals may have.15 Coordinating services not
only promotes efficient use of resources, but ‘‘[r]esearch has shown
that individuals who receive coordinated or ‘bundled’ services are
three to four times likely to achieve a major economic outcome such
as gaining and maintaining employment, earning a vocational cer-
tification or associate’s degree, or buying a car, than individuals re-
ceiving only one type of service.’’ 16 In the November 3rd Hearing,
Ms. King Galian described how her organization uses CSBG fund-
ing to comprehensively address the needs of individuals saying,
‘‘Families and individuals are more successful in their efforts to es-
cape poverty when interventions are sequenced and coordinated in
a way that reflects the realities of the human experience.’’ 17 At its
core, community action is about community building that brings to-
gether fragmented resources and interests to maximize and coordi-
12 Id. at 15–16.
13 A Call to Action: Modernizing the Community Services Block Grant Before the H. Comm.
On Educ. & Labor, 117th Cong. (Nov. 3, 2021) [Hereinafter King Galian Testimony] (Statement
of Katherine King Galian, Director, Family and Community Resources for Community Action,
https://edlabor.house.gov/imo/media/doc/GalianKingKatherineTestimony110321.pdf).
14 Nat’l Ass’n for State Cmty. Servs. Programs, supra note 3 at 15–16.
15 Cmty. Action P’ship, Report: How Did the Community Action Network Respond to the
COVID–19 Pandemic? 17 (2021), https://communityactionpartnership.com/wp-content/uploads/
2022/03/National-Community-Action-Partnership-ANCRT-Report-Final.pdf.
16 Nat’l Ass’n for State Cmty. Servs. Programs, supra note 3 at 4.
17 King Galian Testimony, supra note 13.
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26
nate the available resources for low-income individuals.18 Further,
the broad purposes of CSBG reflect the interconnectedness of var-
ious conditions of poverty—health, education, employment, nutri-
tion, among others—and the impact they have on the well-being of
low-income individuals and their communities.
H.R. 5129 strengthens provisions related to coordination in sev-
eral ways. Under H.R. 5129, statewide funds can be used to sup-
port eligible entities’ response to regional or statewide conditions
and also used to promote coordination among eligible entities.
States play a crucial role in promoting the coordination of pro-
grams and resources within their states while also providing over-
sight and support in the form of technical assistance and training
to eligible entities. The bill requires that in carrying out a commu-
nity action plan, eligible entities include public and private part-
nerships for the coordination of services to effectively utilize re-
sources and requires them to detail how activities in the plan will
achieve the purposes of the Act. Though CSBG funds generally
only make up a small percentage of a local agency’s budget, they
play a vital role in supporting the overall infrastructure of local
agencies to build and manage an integrated service delivery system
for their communities.19
During the Committee’s consideration of H.R. 5129, an amend-
ment offered by Rep. Harshbarger was adopted to reinstate a provi-
sion from current law requiring an assurance that the state and el-
igible entities coordinate programs funded through CSBG funds
with other social services programs and also coordinate employ-
ment and skills development activities with state and local work-
force systems under the Workforce Innovation and Opportunity Act
(WIOA). This reinforces a core function of the CSBG program to le-
verage and coordinate resources and programs within a state.
Under current law, community action agencies are required part-
ners in WIOA’s One-Stop centers and states must coordinate work-
force activities to avoid duplication.20 The amendment helps to
maintain the important coordination between WIOA and the CSBG
program.
Community-driven Leadership
An important feature of all eligible entities that receive funding
to administer the CSBG program—including CAAs—is the tri-
partite board that governs the entity. A tripartite board is a three-
part board composed of representatives from public and private en-
tities with a range of backgrounds as well as members that rep-
resent low-income individuals from the community served. For pri-
vate agency boards, one-third of the board’s members must be com-
prised of elected public officials or their representatives, and at
least one third must be representatives from low-income commu-
nities. The remaining one-third may include leaders in the private
sector, such as businesses, faith-based organizations, and civic
groups.
18 A long-standing means to achieve the purposes of CSBG is by ‘‘coordinating Federal, State,
local and other assistance, including private resources, related to the reduction of poverty so
that resources can be used in a manner responsible to local needs and conditions.’’ 42 U.S.C.
§ 9901(2)(A). See also H.R. 5129, 117th Cong. § 672(2)(D) (2021).
19 Nat’l Ass’n for State Cmty. Servs. Programs, supra note 3 at 12.
20 29 U.S.C. § 3151(b)(1)(B). Moreover, under WIOA a state may develop a combined plan for
its programs, including the employment and training activities offered under CSBG programs.
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27
H.R. 5129 maintains this structure, and for public agencies, im-
proves current law by clarifying required components for public
agency tripartite boards. Current law requires public agencies to
have a tripartite board but only specifies the participation require-
ments for low-income individuals.21 In practice, and as outlined in
the guidance on organizational standards, most public agencies
have tripartite boards that mirror the general requirements of pri-
vate agencies.22 To update the statute, H.R. 5129 includes similar
and parallel requirements for public boards and private boards. For
public boards, no more than one-third shall be comprised of local
government employees or officials and, at a minimum, one-third of
the members shall be democratically selected local representatives
of low-income individuals and families. The bill also specifies that
the remaining one-third of the public board may include represent-
atives from groups, such as business, industry, labor, religious,
educational, charitable, and other significant private groups in the
community. H.R. 5129 clarifies and restructures the language in
current law pertaining to board requirements, including selection of
board members who may be elected to represent a specific geo-
graphic area.23 The representation of individuals from low-income
communities on local agency boards ensures direct input from those
being served by the CAAs, fulfilling a core purpose that is unique
to the CSBG program and was first enunciated by the Economic
Opportunity Act that programs be developed and administered with
maximum feasible participation of residents in their commu-
nities.24
H.R. 5129 retains the structure of the tripartite board while add-
ing requirements to strengthen boards’ obligations, management,
and duties. The bill adds that eligible entities must provide public
and private nonprofit boards with access to resources which may
include access to contracted services with experts in law, financial
management, and accounting, and it adds the requirement that
boards of private nonprofits comply with section 501(a) of the Inter-
nal Revenue Code of 1986 (the Code) relating to the governance of
charitable nonprofits organized under the Code.25 In addition to
adding requirements to improve the management of boards, H.R.
5129 bolsters the state training and technical assistance available
to boards and eligible entities to support professional development
in the areas of organizational management and program oper-
ations.
H.R. 5129 also sets out the duties of the board, including a re-
quirement to adopt a code of ethical conduct that includes a con-
flict-of-interest policy for members. The requirement to adopt such
policy reflects long-standing agency practice and HHS guidance.26
21 42 U.S.C. § 9910.
22 See Information Memorandum No. 138 from Dep’t of Health and Human Servs., Off. Of
Cmty. Servs. to the State Cmty. Servs. Block Grant Administrators (Jan. 26, 2015), https://
www.acf.hhs.gov/sites/default/files/documents/ocs/
im_138_csbg_organizational_standards_fy_2015.pdf.
23 The specific drafting is to clarify that the residency of the representative is a board composi-
tion requirement, but not an additional obligation under the ‘‘democratic selection procedures’’.
See House Bill 5129, supra note 19.
24 Pub. L. No. 88–452, § 202, 78 Stat. 508, 516 (1964), repealed by Omnibus Budget Reconcili-
ation Act of 1981, Pub. L. No. 97–35, Title VI, § 683(a), 95 Stat. 357, 519.
25 26 U.S.C. § § 501(a), 501(c)(3).
26 Information Memorandum No. 82 from Dep’t of Health and Human Servs., Off. Of Cmty.
Servs. to the State Cmty. Servs. Block Grant Program Directors et al. (Mar. 23, 2005), https://
Continued
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28
An amendment regarding this conflict-of-interest requirement was
offered by Rep. Letlow and was defeated. The amendment as draft-
ed struck the requirement for boards to adopt a conflict-of-interest
policy requirement and sought to restrict board members and fam-
ily members from directly benefiting from the eligible entities.27
While the Committee agrees that individual board members should
not benefit financially solely because of their position, the amend-
ment offered as drafted could harm the very agencies the amend-
ment seeks to protect, thereby undermining recruitment of board
members and potentially limiting partnerships. For instance, an el-
igible entity may work with a domestic violence shelter to provide
culturally competent services to survivors of violence, and a rep-
resentative of the shelter may sit on the eligible entity’s board. The
amendment would have prohibited both an employee of the shelter
as well as a recipient of services from the shelter from serving on
the eligible entity’s board if the eligible entity provided funding to
the shelter. The amendment also failed to align with the Internal
Revenue Service (IRS) procedures for resolving conflicts of interest
or to account for the IRS exception on benefits received as a mem-
ber of a charitable class.28
Supporting Public-Private Partnerships to Leverage Funding and
Resources
CSBG funding is instrumental to the ability of eligible entities to
build private-public partnerships and maximize the potential of the
social safety net to ensure comprehensive services for low-income
individuals and families. In FY 2019, CAAs partnered with 45,620
nonprofits, 48,688 for-profits, 19,166 faith-based organizations, and
10,402 school districts.29 Since CSBG is the only federal program
that has the broad overreaching goal of reducing poverty, with no
reference to a specific cause, it is an invaluable source of funding
for CAAs to fill gaps in services, test innovative poverty-reduction
strategies, and provide emergency supports, among other activities.
In FY 2019, for every CSBG dollar, CAAs leveraged $2.40 from pri-
vate sources, $2.25 from local sources, $12.34 from other federal
programs, $2.49 from state sources, and $0.35 from volunteer
help.30
Reach and Results in Communities Across the Country
In FY 2019, CAAs served over nine million individuals and near-
ly five million families.31 In FY 2018, about 36 percent of the cli-
ents were children and over 24 percent were 55 years-of-age or
older.32 About 70 percent had incomes at or below the federal pov-
erty line, and nearly a third of families had incomes at or below
www.acf.hhs.gov/ocs/policy-guidance/csbg-im-82-tripartite-boards. See also Information Memo-
randum No. 138 from Dep’t of Health and Human Servs., Off. Of Cmty. Servs. to the State
Cmty. Servs. Block Grant Administrators (Jan. 26, 2015), https://www.acf.hhs.gov/sites/default/
files/documents/ocs/im_138_csbg_organizational_standards_fy_2015.pdf.
27 The Committee notes that the amendment as offered struck the requirement to establish
a conflict-of-policy but then added additional parameters to the original language that the
amendment struck. Therefore, in additional to the substantive concerns addressed in the report,
the amendment, as offered, could not be properly executed.
28 26 C.F.R. § 53.4958–4(a)(4)(v) (2002).
29 Nat’l Ass’n for State Cmty. Servs. Programs, supra note 8.
30 Id.
31 Id.
32 Nat’l Ass’n for State Cmty. Servs. Programs, supra note 3 at 22.
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29
50 percent of the poverty guidelines, categorized as severely poor.33
About 55 percent of individuals reported they were white, 28 per-
cent reported they were African American, and 20 percent reported
they were Hispanic or Latino.34
CAAs have been successful in reducing poverty. Among other
outcomes, in FY 2019, CAAs achieved: 35
• 254,756 outcomes in employment, defined as obtaining and
maintaining a job, increasing earnings, and obtaining benefits;
• 1,528,322 outcomes in housing, defined as obtaining and
maintaining housing, avoiding eviction or foreclosure, and re-
ducing energy burden;
• 1,493,921 outcomes in education, defined as improving lit-
eracy, school readiness, and obtaining additional degrees;
• 2,835,065 outcomes in health and social/behavioral devel-
opment, defined as improving nutrition and physical or mental
health as well as living independently; and
• 398,506 outcomes in income and asset building, defined as
maintaining a budget, opening a savings account, increasing
assets, and improving financial well-being.
In the November 3rd Hearing, Ms. King Galian provided the
Subcommittee with one example of an individual, Patricia, who was
successfully served by a CAA under the Community Action Net-
work in Hillsboro, Oregon.36 Patricia lost her job and her home in
2019. Using CSBG funds, the Community Action Network arranged
for Patricia to work with a career coach to become a certified nurs-
ing assistant, which resulted in Patricia being able to increase her
earning potential and employability.
BOLSTERING THE ABILITY OF CSBG TO RESPOND TO COMMUNITY
NEEDS
H.R. 5129 reauthorizes CSBG for ten years—$1 billion annually
from FY 2023–FY 2027 and such sums as necessary from FY 2028–
FY 2032. In the recently enacted omnibus appropriations bill for
FY 2022, CSBG received approximately $755 million for the block
grant to states and territories, an increase from $745 million in FY
2021.37 Adjusted for inflation, this still pales in comparison to ini-
tial funding in 1982.38 A 2017 report by the Center on Budget and
Policy Priorities found that annual funding for the CSBG program
had declined by five percent since 2000 and by eight percent since
its inception in 1982, after adjusting for inflation.39 The decline is
even more dramatic when controlling for both inflation and popu-
lation growth, which shows that CSBG declined by 18 percent since
2000 and 34 percent since its inception.40 By increasing the author-
ization level for CSBG, H.R. 5129 mitigates the erosion of CSBG
appropriations and addresses the increased need for poverty reduc-
33 Id. at 19.
34 Id. at 21.
35 Nat’l Ass’n for State Cmty. Servs. Programs, supra note 8.
36 King Galian Testimony, supra note 13.
37 Pub. L. No. 116–260, 134 Stat. 1182, 1584 (2021) (the law also appropriated $20 million
for the CED program and $10 million for the RCD program).
38 Conor F. Boyle, Cong. Rsch. Serv., RL32872, Community Services Block Grants (CSBG):
Background and Funding 21–24 (2018), https://crsreports.congress.gov/product/pdf/RL/RL32872.
39 David Reich et al., Ctr. On Budget and Pol’y Priorities, Block-Granting Low-Income Pro-
grams Leads to Large Funding Declines Over Time, History Shows, 4 (2017), https://
www.cbpp.org/sites/default/files/atoms/files/2-22-17bud.pdf.
40 Id.
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30
tion services, particularly as the country recovers from the COVID–
19 pandemic.
In March 2020, the Coronavirus Aid, Relief, and Economic Secu-
rity Act (CARES Act) provided an additional $1 billion in funding
for the block grant to states, available for use until September 30,
2022.41 These funds enabled expansions in eligibility and innova-
tion at a time of need and were invaluable for CAAs during the
COVID–19 pandemic.42 Because CSBG provides flexible funding
and local agencies already have close ties with the communities
and individuals they serve, CAAs mobilized immediately at the
onset of the COVID–19 pandemic. Specifically, CAAs were instru-
mental in providing cross-cutting initiatives to promote health eq-
uity, support public health education and outreach, remove barriers
to vaccine access, and support the rollout of vaccines.43 In addition
to their critical public health role, CAAs were also involved in
meeting basic needs, including distributing food and other emer-
gency assistance to suddenly unemployed families.44 In the Novem-
ber 3rd Hearing, Ms. Sharon Scott-Chandler, Executive Vice Presi-
dent and Chief Operating Officer of Action for Boston Community
Development, Inc., laid out how the flexibility of CSBG allowed her
organization to ‘‘immediately [adapt] its emergency services safely
to respond early on in the crisis while many non-profits and gov-
ernment entities remain closed.’’ 45 The work of CAAs during the
COVID–19 pandemic reflects their role in providing emergency as-
sistance, whether during a health emergency or an economic crisis
such as the 2008 recession. CAA’s actions to respond to the
COVID–19 pandemic also highlights their engagement on health
challenges facing their communities which has been a core purpose
of the CSBG program since its inception.46
Supporting Small States’ Ability to Reach Communities
H.R. 5129 largely preserves the same funding formula laid out
in the Omnibus Reconciliation Act of 1981, which authorized the
Secretary of Health and Human Services (Secretary) to allocate an
amount to each state that is equal, as a percent of the total amount
allotted, to the percentage of the total amount allotted to that state
in 1981. The 1981 allotment was based on the ratios determined
41 Pub. L. No. 116–136, div. B, tit. VIII, 134 Stat. 281, 558 (2020) (codified at 15 U.S.C. ch.
116).
42 During the 2008 economic crisis, CSBG also received funding under the American Recovery
and Reinvestment Act (ARRA). This allowed CAAs to ‘‘serve additional eligible families through
existing programs, implement innovative new programs and improve existing ones, and build
their capacity to effectively serve eligible families in the future. Through the expanded provision
of services, over 18,000 jobs were created under CSBG ARRA.’’ Carol J. De Vita & Margaret
Simms et al., Urban Inst., Implementation of Community Services Block Grants under ARRA,
at v (2012), https://www.urban.org/sites/default/files/publication/25571/412602-Implementation-
of-Community-Services-Block-Grants-under-ARRA.PDF.
43 Memorandum, Nat’l Cmty. Action Found., Community Action Agency Participation in Vac-
cine Education and Outreach, https://static1.squarespace.com/static/5d2f38b4b9bb1b00018b555f/
t/605cebd20569c176819379d8/1616702418149/Community+Action+Agency+Participation+in+
Vaccine+Education+and+Outreach.pdf (last visited Mar. 24, 2022).
44 Cmty. Action P’ship, How the Community Action Network is Responding to COVID–19, 2–
5 (2021), https://communityactionpartnership.com/wp-content/uploads/2021/09/NCAP-OCS-Re-
port-Final.pdf.
45 A Call to Action: Modernizing the Community Services Block Grant Before the H. Comm.
on Educ. & Labor, 117th Cong. (Nov. 2, 2021) [Hereinafter Scott-Chandler Testimony] (State-
ment of Sharon Scott-Chandler, J.D., Executive Vice-President and CEO, Action for Boston Com-
munity Development, Inc., https://edlabor.house.gov/download/
chandlerscottsharontestimony110321).
46 The 1964 Act specifically required that funded programs address the health needs of low-
income individuals and their communities. Pub. L. No. 88–452, § 205, 78 Stat. 508, 518 (1964).
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31
in the Economic Opportunity Act of 1964. In practice, this formula
has meant that a state’s share of CSBG funding has remained
roughly proportional over time. However, the bill updates the small
state minimum allocation formula to better reflect current appro-
priations and need. Under current law, the minimum amount allot-
ted to any state is half of one percent if the total amount that is
appropriated exceeds $345 million, which has been the case since
1990 when the minimum allotment was increased from one-quarter
of one percent to half of one percent. H.R. 5129 would increase the
minimum allotment to three-quarters of one percent when the
amount appropriated after reservations exceeds $900 million, rec-
ognizing the need of the small state minimum to increase as appro-
priations increase.
In FY 2020, the minimum state allocation provision applied to
twelve states, meaning that under the funding formula enacted in
1981, twelve states were originally allotted less than half of one
percent of total funds, so the minimum allocation provision effec-
tively increased their funding.47 Many of these states that benefit
from the small state allotment are disproportionately rural, and
CSBG-funded CAAs are critically important in rural areas as they
are often the only provider for a wide range of services for low-in-
come people. Under H.R. 5129, the new minimum state allocation
provision would apply to four additional states (Maine, Nebraska,
New Mexico, and Rhode Island). This increase would allow small
states to maximize the impact of CSBG funds and better serve
their communities.
Serving More Individuals and Families
Current law allows states to serve individuals who make up to
125 percent of the federal poverty level (FPL).48 Many other federal
programs serve individuals at 130 percent of FPL or higher. H.R.
5129 raises the income eligibility for individuals to 200 percent
FPL 49 and provides states, territories, and Tribal grantees with
the authority and flexibility to establish procedures to allow indi-
viduals to still be eligible after they exceed the 200 percent as long
as these individuals continue to make progress toward established
goals.50 The statute currently uses the Office of Management and
47 The 12 states are: Alaska, Delaware, Hawaii, Idaho, Montana, Nevada, New Hampshire,
North Dakota, South Dakota, Vermont, and Wyoming. See State Table: CSBG FY 2020 Alloca-
tions, The Admin. for Children and Families (Sept. 3, 2020), https://www.acf.hhs.gov/sites/de-
fault/files/documents/ocs/comm_csbg_final_allocations_fy2020.pdf.
48 ‘‘Federal poverty level’’ and ‘‘[federal] poverty guidelines’’ are used interchangeably here.
‘‘Federal poverty level’’ is often used in agency documents to describe eligibility. See, e.g., Dep’t
of Health and Human Servs., Off. of Cmty. Servs., CSBG DCL–2021–23 Reminder of COVID–
19 Related Flexibilities and Respective Timeframes (Aug. 13, 2021), https://www.acf.hhs.gov/ocs/
policy-guidance/csbg-dcl-2021-23-reminder-covid-19-related-flexibilities-and-respective. However,
‘‘federal poverty guidelines’’ is a more precise term. CSBG statute defines the ‘‘poverty line’’ in
673(2), codified at 42 U.S C. § 9902, which is the federal poverty guideline. See Frequently Asked
Questions Related to the Poverty Guidelines and Poverty, Dep’t of Health and Human Servs., Off.
of the Assistant Sec‘y for Planning and Evaluation, https://aspe.hhs.gov/topics/poverty-economic-
mobility/poverty-guidelines/frequently-asked-questions-related-poverty-guidelines-poverty (last
visited Mar. 25, 2022).
49 The eligibility criterion applies to services, assistance, or resources provided directly to indi-
viduals and families. This is keeping with current practice which allows eligible entities to offer
community-wide budgeting classes, health fair, or other initiatives intended to benefit the larger
community where eligibility is not a factor. H.R. 5129, 117th Cong. § 679 (as reported by the
H. Comm. on Ed. & Labor, Mar. 16, 2022).
50 The National Association for State Community Services Programs (NASCSP) sent a letter
of support for H.R. 5129 writing that: ‘‘The Act changes the eligibility criterion from 125 percent
of the Federal Poverty Level (FPL) to 200 percent of the FPL, making the funding able to reach
Continued
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32
Budget’s (OMB) definition of the federal poverty line and requires
the Secretary to annually update the poverty guidelines to account
for changes in the Consumer Price Index for All Urban Consumers
over the same period. In practice, the poverty line is calculated by
the Secretary from the most recent data available from the Bureau
of the Census. H.R. 5129 updates the definition of ‘‘poverty line’’ to
better reflect the current practice of how the poverty line is actu-
ally calculated. The Committee wishes to make clear that this is
only a technical change—not a substantive change—to reflect the
current calculation process.
In 2021, at the 200 percent of the federal poverty guidelines, a
family of four in the contiguous 48 states and the District of Co-
lumbia would have to have an annual income of under $53,000 to
be eligible to receive services funded by CSBG, whereas at 125 per-
cent of the federal poverty guidelines, a family of four making less
than $33,125 is eligible.51 Those between 125 and 200 percent of
the federal poverty guidelines are often still in need of CSBG-fund-
ed programs and on the benefits cliff or one unexpected cost away
from poverty. As David Bradley, the Chief Executive Officer of the
National Community Action Foundation, explained in the Novem-
ber 3rd Hearing ‘‘it’s the hard-working low-income families that fall
between 125 and 200 percent . . . [i]t’s easier to help assist, get
them back on their feet when they’re first falling, than when they
plummet all the way down and have so many mountains to climb
to get back to self-sufficiency.’’ 52 Ms. King Galian further stated
that, ‘‘This flexibility has meant that we’re able to kind of dull the
cliff effect for families and provide some security for them as they
work towards permanent stability.’’ 53
The CARES Act allowed states to serve individuals who make up
to 200 percent in FY 2020 and FY 2021,54 a flexibility which the
vast majority of states used.55 The temporary authority for states
to serve individuals who make up to 200 percent of the federal pov-
erty guidelines was recently extended through September 30, 2022
by the Consolidated Appropriations Act, 2022.56 Statutorily raising
the income eligibility criterion for individuals up to 200 percent
FPL also makes CSBG more consistent with the criteria for other
federal programs, making coordination across programs easier for
agencies as they assist individuals and families with a range of
needs. CAAs operate and often coordinate an array of federal,
more households in need, especially as we recover from the nationwide impact of COVID–19.
Important language is also included in the Act that provides for the ongoing eligibility of clients,
so they do not lose assistance as they work toward achieving their goal. This is critical to house-
holds’ ability to meaningfully and sustainably exit poverty.’’ Letter from Beverly Buchanan,
Board President, Nat’l Ass’n for State Cmty. Servs. Programs, to Representative Robert Scott,
Chairman, and Representative Virginia Foxx, Ranking Member, of the H. Comm. on Educ. &
Labor (Mar. 15, 2022) (on file with committee staff).
51 HHS Poverty Guidelines for 2021, Dep’t of Health and Human Servs., Off. of the Assistant
Sec’y for Planning and Evaluation (Jan. 13, 2021), https://aspe.hhs.gov/topics/poverty-economic-
mobility/poverty-guidelines.
52 A Call to Action: Modernizing the Community Services Block Grant Before the H. Comm.
on Educ. & Labor, 117th Cong. (Nov. 2, 2021) (Statement of David Bradley, CEO, National
Community Action Foundation, https://edlabor.house.gov/imo/media/doc/
BradleyDavidTestimony110321.pdf).
53 King Galian Testimony, supra note 13.
54 Pub. L. No. 116–136, div. B, tit. VIII, 134 Stat. 281, 558 (2020) (codified at 42 U.S.C.
§§ 9857–9858r).
55 Only three states (Arkansas, Missouri, and Wisconsin) did not expand to 200 percent eligi-
bility for FYs 2020 and 2021. Congress previously raised the eligibility for CSBG services to 200
percent as part of the American Recovery and Reinvestment Act of 2009. See Pub. L. No. 111–
5, div. A, tit. VIII, § 16007, 123 Stat 115, 179 (2009) (codified at 42 U.S.C. § 673).
56 Pub. L. No. 117–103, div. H, tit. II (2022).
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state, and local programs, all with varying eligibility requirements.
For example, over half of CAAs operate the Weatherization Assist-
ance Program and LIHEAP, which use 200 percent FPL and 150
percent FPL as the eligibility criteria, respectively.57 However,
CSBG services are not an entitlement, and eligible entities are re-
quired to provide services and activities in response to their com-
munity’s needs assessment. As such, they are allowed to target re-
sources to those identified needs. In practice, the income threshold
criteria means that entities cannot provide direct assistance to in-
dividuals over those income limits.
Allotments to Territories
Poverty rates in territories are significantly higher than in the
contiguous United States, Hawaii, and Alaska. In 2009, the share
of the population in poverty was 57.8 percent in American
Samoa,58 22.9 percent in Guam,59 22.5 percent in the U.S. Virgin
Islands,60 and 52.3 percent in the Commonwealth of the Northern
Mariana Islands,61 compared to 14.3 percent in the United States
(including the District of Columbia and Puerto Rico).62 Consistent
with current law, H.R. 5129 reserves half of one percent of the
total amount appropriated for grants to territories allotted on the
basis of need. In order to ensure that allotments to territories re-
flect the most current data and in order to increase transparency,
H.R. 5129 also requires that the most up-to-date, applicable Census
data is incorporated in assessing need, and it requires additional
transparency from the Secretary around the methods used to as-
sess need. Territories are defined as Guam, American Samoa, the
U.S. Virgin Islands, and the Commonwealth of the Northern Mar-
iana Islands.63 While H.R. 5129 maintains the requirement for ter-
ritories to submit an application and plan, the requirement for ter-
ritories is folded in with the general requirements for state plans
and applications.
IMPROVING ADMINISTRATION OF CSBG
Modernizing and Streamlining States’ and CAAs’ Applications and
Plans
H.R. 5129 makes several important updates to states’ applica-
tions and plans, such as providing a timeline for the application
process and significantly streamlining the requirements for state
plans. While current law requires states to submit a state plan to
HHS in order to receive CSBG funding, H.R. 5129 requires that
57 According to the FY 2019 National State CSBG Fact Sheet, 547 community action agencies
operate Weatherization Assistance Programs and 569 community action agencies operate the
Low Income Home Energy Assistance Program (LIHEAP). See Nat’l Ass’n for State Cmty. Servs.
Programs, supra note 8.
58 See 2010 Island Areas—American Samoa Dataset, Cross Tabulations 1, Table 1–17, U.S.
Census Bureau (2013), https://www.census.gov/data/datasets/2010/dec/american-samoa.html.
59 See 2010 Island Areas—Guam Dataset, Cross Tabulations 1, Table 1–17, U.S. Census Bu-
reau (2013), https://www.census.gov/data/datasets/2010/dec/guam.html.
60 See 2010 Island Areas—U.S. Virgin Islands Dataset, Cross Tabulations 1, Table 1–17, U.S.
Census Bureau (2013), https://www.census.gov/data/datasets/2010/dec/virgin-islands.html.
61 See 2010 Island Areas—Commonwealth of the Northern Mariana Islands Dataset, Cross
Tabulations 1, Table 1–17, U.S. Census Bureau (2013), https://www.census.gov/data/datasets/
2010/dec/cnmi.html.
62 Alemayehu Bishaw & Suzanne Macartney, U.S. Census Bureau, Poverty: 2008 and 2009,
at 2 (2010), https://www2.census.gov/library/publications/2010/acs/acsbr09-01.pdf.
63 Puerto Rico (like the District of Columbia) receives allocations based on the state formula.
See 42 U.S.C. §§ 9905–9906; H.R. 5129, 117th Cong. § 676 (2021).
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those plans be approved by HHS, similar to other federal programs,
to ensure quality and consistency in the state and local planning
process. To facilitate the state application process, H.R. 5129 re-
quires the Secretary to inform states of approval, disapproval, or
partial approval within 60 days after receipt of a state plan; the
bill also authorizes the Secretary to provide funds to eligible enti-
ties directly if the state plan is not approved by the end of the third
month covered by the plan.64
To update the statute and improve program administration, the
bill also requires states to provide an oversight plan and an assur-
ance to pay eligible entities in a timely manner as part of their
state plan. Additionally, H.R. 5129 requires states to develop a pol-
icy on board vacancies and to provide a description of state and
local outcome measures. H.R. 5129 creates an eligible entity appli-
cation and plan submission process by requiring eligible entities to
submit their plans to states. To ensure that CAAs deliver the most
appropriate and highest quality services to those they serve, H.R.
5129 requires that CAAs’ plans detail how they will meet the needs
identified in their community needs assessment. To better support
the work of eligible entities to identify and assess needs in their
communities, H.R. 5129 further requires HHS to issue guidance,
including developing models, for the comprehensive needs assess-
ments.
Timely Distribution of Funds
Over the years, there have been concerns about the timely flow
of payments to CAAs. In 2015, HHS adopted guidance for state and
federal accountability measures which included a measure on time-
ly payments of grant and subgrant funding, both from HHS to
states and states to eligible entities.65 Despite these actions by
HHS to address this issue, concerns remain. The House Appropria-
tions Committee’s report on the Departments of Labor, Health and
Human Services, and Education, and Related Agencies appropria-
tions bill for FY 2017 stated: ‘‘The Committee is concerned funds
are not reaching local agencies and community residents promptly’’
and ‘‘urge[s] ACF to take all necessary action to ensure funds are
made available as soon as possible to States and annual allocation
amounts are made public as soon as can be accomplished.’’ 66 To ad-
dress the longstanding concerns on this issue, H.R. 5129 includes
improvements to ensure that funds are promptly allocated to both
states and local entities. Specifically, the bill provides a framework
for the timely flow of funds at both the federal and state levels.
Specifically, the bill requires HHS to allocate funds to states no
64 The Federal Accountability Measures outlined in Appendix 3 in the Information Memo-
randum #144 includes reporting indicators for what percent of state plans were provided a re-
sponse by 45 days and 60 days indicating that the 60-day response requirement in the bill mir-
rors current administration standards. Dep’t of Health and Human Servs., Off. of Admin. for
Children and Families, State and Federal Accountability Measures and Data Collection, Appen-
dix 3 (Oct. 2, 2015), https://www.acf.hhs.gov/sites/default/files/documents/ocs/
appx_3_csbg_federal_accountability_measures_10022015.pdf.
65 See ‘‘2Sa’’, Dep’t of Health and Human Servs., Off. of Admin. for Children and Families,
State and Federal Accountability Measures and Data Collection, Appendix 2 (Oct. 2, 2015),
https://www.acf.hhs.gov/sites/default/files/documents/ocs/appx_2_csbg_state_accountability_
measures_10022015.pdf; ‘‘2Fa’’, Dep’t of Health and Human Servs., Off. of Admin. for Children
and Families, State and Federal Accountability Measures and Data Collection, Appendix 3 (Oct.
2, 2015), https://www.acf.hhs.gov/sites/default/files/documents/ocs/
appx_3_csbg_federal_accountability_measures_10022015.pdf.
66 H.R. Rep. No. 114–699, at 98 (2016) (Comm. Rep.), https://www.govinfo.gov/content/pkg/
CRPT-114hrpt699/pdf/CRPT-114hrpt699.pdf.
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later than 30 days after apportionment from OMB. The bill re-
quires states to obligate funds to eligible entities no later than 30
days after a state receives notice of funding availability from HHS
or by the first day of the state program year, while also providing
states with flexibility in the case of irregular appropriations where
the allocation may provide less than a fiscal year’s worth of fund-
ing. H.R. 5129 mirrors a number of the timetables currently in-
cluded in the accountability measures to provide clear expectations
and provide HHS with better enforcement authority on these
issues.
Improving Performance and Accountability at Federal, State, and
Local Levels
In the last decade, HHS worked with stakeholders to improve
program performance, increase accountability, and incorporate con-
tinuous management improvement. This led to the development
and issuance of guidance covering organizational standards for eli-
gible entities, performance and outcome measures, and state and
federal accountability measures.67 While this guidance is intended
to improve the accountability and performance at all levels of the
CSBG program, it fails to provide HHS with the necessary enforce-
ment tools of law or regulation. To remedy this, H.R. 5129 incor-
porates a number of policies from these guidance documents while
also adding provisions to strengthen the management functions at
each level of the program. To further modernize the administration
of CSBG and improve transparency, H.R. 5129 requires the
issuance of regulations on state and community action plans, state
monitoring of eligible entities, and the state reports to the Sec-
retary as outlined under section 686. The requirement to issue reg-
ulations in these key areas will help to ensure quality and consist-
ency in state and local planning processes, better enable HHS to
hold states accountable for compliance, and promote transparency
and accountability throughout the program. Regulations should
seek to preserve the flexibility in local programs to tailor services
to meet the needs of their communities while also reinforce the core
of community action and the local nature of the CSBG program.
H.R. 5129 requires states and eligible entities to participate in
a ‘‘results-oriented performance measurement system’’ that meets
the requirements established by the Secretary in guidance under
the bill. The bill removes reference to the Results-Oriented Man-
agement and Accountability System (ROMA), which was never de-
fined in the law.68 Instead, H.R. 5129 gives HHS discretion to es-
67 Guidance in the form of information memorandum were issued to develop the CSBG per-
formance management framework: See Information Memorandum No. 138 from Dep’t of Health
and Human Servs., Off. Of Cmty. Servs. to the State Cmty. Servs. Block Grant Administrators
(Jan. 26, 2015), https://www.acf.hhs.gov/sites/default/files/documents/ocs/
im_138_csbg_organizational_standards_fy_2015.pdf; Information Memorandum No. 144 from
Dep’t of Health and Human Servs., Off. Of Cmty. Servs. to the State Cmty. Servs. Block Grant
Administrators (Oct. 2, 2015), https://www.acf.hhs.gov/sites/default/files/documents/ocs/
im_144_state_and_federal_accountability_measures_data_collection.pdf; Information Memo-
randum No. 152 from Dep’t of Health and Human Servs., Off. Of Cmty. Servs. to the State
Cmty. Servs. Block Grant Administrators (Jan. 19, 2017), https://www.acf.hhs.gov/sites/default/
files/documents/ocs/im_152_csbg_annual_report_01192017.pdf.
68 42 U.S.C. § 9908 requires states, as part of their state plan, to assure that the state and
all eligible entities will participate in the Results Oriented Management and Accountability Sys-
tem or an alternative system that mees the requirements not later than Fiscal Year 2001.
ROMA was created in 1994 by Community Services Block Grant Network officials and is based
on concepts from the Government Performance and Results Act of 1993.
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36
tablish guidance for ROMA or another results-oriented perform-
ance management system that best meets the needs of the pro-
gram. Such a system will support transparency and accountability
at local, state, and national levels. It will also promote continuous
improvement in achieving established goals, simplify data report-
ing, and consider flexibility for small agencies with limited re-
sources.
H.R. 5129 bolsters provisions related to corrective action and en-
forcement of compliance with the requirements of law. For eligible
entities, the bill adds a requirement for states to conduct on-site
follow-up reviews within a calendar quarter for entities that fail to
meet the Act’s requirements, while also requiring eligible entities
to develop a corrective action plan where a state has found serious
deficiencies. If a state makes a final determination that an eligible
entity has failed to correct a serious deficiency, the state may ini-
tiate procedures to withhold, reduce, or terminate funding. H.R.
5129 expands corrective action for states by providing HHS with
broader authority to reduce funding to a state and make direct pay-
ments to eligible entities within the state if the state fails to meet
requirements of the law or if a state fails to submit a plan that
meets HHS’ approval. The bill requires HHS to assess a specified
number of states each year and to increase transparency, and it re-
quires that HHS make state evaluation results, including any rec-
ommendations for improvements or any corresponding corrective
action plans, publicly available.
In order to facilitate the implementation of a robust system of ac-
countability and performance, H.R. 5129 requires HHS to establish
an electronic data system for reports required under the legislation
to enhance the quality and timeliness of these reports. The bill au-
thorizes up to $5 million for FY 2023, FY 2024, and FY 2025 to
create an updated nationwide electronic data system to cover the
diverse network of states, territories, Tribes, and eligible entities
served. This new requirement will allow federal CSBG administra-
tors to utilize a data system that is coordinated and consistent with
other data systems across HHS while strengthening accountability
within CSBG and other HHS programs.
INNOVATING AND CREATING NEW PATHWAYS TO ECONOMIC SECURITY
Community Action Innovations Program
Innovation is an integral part of the history and legacy of com-
munity action since its inception as the Community Action Pro-
gram in 1964. Under current law, CSBG already promotes innova-
tion through the flexible use of funds that support locally tailored
services. Ms. Sharon Scott-Chandler, Executive Vice President and
Chief Operating Officer of Action for Boston Community Develop-
ment, Inc., provided an example of innovative programming that
leverages CSBG funding. In the November 3rd Hearing, Ms. Scott-
Chandler stated, ‘‘[T]hree years ago we were able to pilot a pro-
gram that leverag[es] CSBG dollars in our childcare voucher sub-
sidy management program . . . the program utilized a model of
bundled vouchers in which it combined immediate access to edu-
cation for the in-demand jobs [and] industries and childcare for job-
seeking moms.’’ 69
69 Scott-Chandler Testimony, supra note 45.
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H.R. 5129 newly authorizes the Community Action Innovations
Program to facilitate innovation and use of evidence-based prac-
tices to reduce poverty at the community level. By lifting up and
sharing best practices, effective interventions to reduce poverty can
be adopted and replicated more widely across the diverse network
of local agencies. The bill reserves one percent of total appropriated
funds for this new program. Funding supports projects with dem-
onstrated effectiveness that can be replicated and/or expanded as
well as testing innovative evidence-based practices and deter-
mining their effectiveness. H.R. 5129 encourages relevant evidence-
based practices to incorporate whole family approaches to create
opportunities that address the needs of parents and children to-
gether. Two-generation approaches have shown success in pro-
moting equity and well-being by utilizing a family-focused frame-
work to align child- and adult-serving programs.70 As of 2021,
there are 19 states promoting whole family approaches in their
CSBG-funded programs to help move entire families out of pov-
erty.71
Training and Technical Assistance
H.R. 5129 reserves two percent of total appropriated funds for
federal training, technical assistance, and related federal activities.
While current law already reserves funding for these activities, the
bill increases the set-aside amount from one and a half percent to
two percent and provides additional guidelines and specific exam-
ples for activities that could be funded by this set-aside. These spe-
cifics include funding activities that support the dissemination of
evidence-based practices, including through the Community Action
Innovations Program, as well as funding for professional develop-
ment, resources for correcting programmatic deficiencies, and sup-
port for performance measurement systems. The increased reserva-
tion reflects the added responsibilities for HHS, including the
added training and technical assistance under the new Community
Action Innovations Program.
Under both current law and the bill, states are limited to spend-
ing no more than five percent of grant funds for administrative ex-
penses and are required to pass 90 percent of grant funds to eligi-
ble entities. Any remaining funds can be used by states to support
training and technical assistance to eligible entities and conduct
state-wide activities. Such activities may include, but are not lim-
ited to, providing training and resources to eligible entities, sup-
porting professional development, responding to physical and be-
havioral health challenges, promoting coordination and cooperation
among eligible entities, and assisting with comprehensive needs as-
sessment and performance measurement systems. H.R. 5129 re-
vises current law to better focus state-wide activities to bolster eli-
gible entities’ ability to serve low-income individuals.
70 Anne Mosle & Morjorie Sims, Aspen Inst., State of the Field: Two-Generation Approaches
to Family Well-Being 19 (2021), https://ascend-resources.aspeninstitute.org/resources/state-of-
the-field-two-generation-approaches-to-family-well-being/.
71 A Call to Action: Modernizing the Community Services Block Grant Before the H. Comm.
on Educ. & Labor, 117th Cong. (Nov. 2, 2021) (Statement of Janae Bjelland, Executive Director,
National Association for State Community Services Programs) (on file with committee staff).
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38
MODERNIZATION OF THE STATUTE
Meeting 21st Century Needs
H.R. 5129 modernizes and updates the statute by incorporating
provisions that will better equip individuals and communities to
meet the challenges of today and tomorrow. In 2021, only about 57
percent of adults with incomes of $30,000 or lower had access to
broadband, a 20-percentage point difference from the average
broadband access rate of 77 percent across all household income
levels.72 Tribal communities also face a significant digital divide
with 32 percent of those living on Tribal lands lacking access to
high-speed internet access.73 A recent study from the Assistant
Secretary for Planning and Evaluation (ASPE) within HHS indi-
cated that video-enabled telehealth service usage was lower among
adults with low incomes, adults over age 65, those without a high
school degree, and Black, Latino, and Asian consumers.74 While the
pandemic has cast a bright light on the importance of internet ac-
cess, the need is only becoming greater as so many aspects of life
have permanently moved online. Access to the internet can signifi-
cantly improve economic outcomes, and those who lack broadband
access because they are already economically and/or geographically
disadvantaged are further disadvantaged by missing out on the
benefits of broadband.75
Because of the great need, many CAAs have already taken steps
to help facilitate access to broadband by publishing information
from the Federal Communications Commission (FCC) about the
Emergency Broadband Benefit and connecting community members
to reliable internet access. For example, two CAAs in Michigan’s
upper peninsula partnered to bring critical internet service to peo-
ple in Northern Michigan, a rural community, so that they can ac-
cess telehealth, educational, and e-commerce opportunities.76 Other
CAAs are also helping their communities access telehealth services.
For example, in order to provide counseling services to families en-
rolled in their whole family approach pilot program, the Hampton
Roads Community Action Program in Virginia is utilizing tele-
conferencing.77
To address the urgent and critical digital needs of communities,
the bill creates a Broadband Navigator Program that authorizes
grants to community action agencies and Tribal grantees for
trained navigators to help low-income individuals and communities
72 Internet/Broadband Fact Sheet, Pew Rsch. Ctr. (Apr. 7, 2021), https://www.pewresearch.org/
internet/fact-sheet/internet-broadband/#home-broadband-use-over-time?menuItem=2ab2b0be-
6364–4d3a-8db7-ae134dbc05cd.
73 Traci Morris & Brian Howard, Tribal Digital Divide 1–2 (Ariz. St. Univ., Am. Indian Pol’y
Inst., Policy Brief and Recommendations, 2020), https://aipi.asu.edu/sites/default/files/tribal-dig-
ital-divide-stimulus-bill-advocacy-04032020.pdf.
74 Madjid Karimi et al., Dep’t of Health and Human Servs ASPE, HP–2022–04, National Sur-
vey Trends in Telehealth Use in 2021: Disparities in Utilization and Audio vs. Video Services
9–10 (2022), https://aspe.hhs.gov/sites/default/files/documents/
4e1853c0b4885112b2994680a58af9ed/telehealth-hps-ib.pdf.
75 Adie Tomer et al., Digital prosperity: How broadband can deliver health and equity to all
communities, Brookings Inst. (Feb. 27, 2020), https://www.brookings.edu/research/digital-pros-
perity-how-broadband-can-deliver-health-and-equity-to-all-communities/.
76 NMU’s EAN Partners with Two U.P. Community Action Agencies, N. Michigan Univ.,
https://nmu.edu/ruralhealth/nmus-ean-partners-two-community-action-agencies (last visited Mar.
25, 2022).
77 Community Action P’ship, COVID–19: Community Action Responded Quickly in the Early
Days of the Pandemic, 58 (2020), https://communityactionpartnership.com/wp-content/uploads/
2021/01/Covid-19-Community-Action-Responded-Quickly-in-the-Early-Days-of-the-Pandemic-
NCAP-12.20.pdf.
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gain access to affordable, high-speed, broadband service; internet-
enabled devices; digital literacy training; technical support; and
other services. Similar to CAAs’ role as a bridge connecting low-in-
come individuals to separate federal, state, and local services,
CAAs would connect low-income individuals and their communities
with resources related to their digital needs, including finding and
obtaining access to affordable internet service, training and tech-
nical supports to improve computer skills, and affordable com-
puters or other hardware that support connectivity.
Current law generally prohibits use of federal funds for construc-
tion of facilities, but it does allow the Secretary to waive prohibi-
tion under limited circumstances. To further update the Act to en-
sure eligible entities are accessible to those they serve, the bill per-
mits use of federal funds to make structural improvements to in-
crease accessibility. H.R. 5129 maintains this limitation for federal
funds but adds an exception for making structural improvements
to increase accessibility where individuals are served by CSBG.78
Individuals with disabilities live in poverty at more than twice the
rate of people without disabilities, and although they make up only
12 percent of the U.S. working-age population, they account for
more than half of those living in long-term poverty.79 Moreover, the
aging population is expected to increase to almost 90 million by
2050.80 In 2019, CAAs served 1,590,785 people who reported hav-
ing disabilities and 1,184,463 senior citizens.81 Allowing accessi-
bility improvements will enable CSBG to better meet the needs of
these populations.
Streamlining to Focus on CSBG’s Mission
To further modernize the statute, H.R. 5129 removes several pro-
visions. H.R. 5129 eliminates several discretionary programs that
either have never been funded or have not been funded in more
than fifteen years.82 The bill also removes language that explicitly
permits states to test participants in CSBG funded programs for
controlled substances (drug testing).83 While the Committee under-
stands that this authority has never been used, the intention of the
removal of this language is to ensure that individuals needing serv-
ices are not dissuaded from accessing them, particularly during the
continuing opioid public health emergency.
78 More than one million individuals with disabilities were served by the CSBG program in
FY 2016. Dep’t of Health and Human Servs., Off. Of Cmty. Servs., Community Services Block
Grant Report to Congress Fiscal Year 2016, at 54 (2021), https://www.acf.hhs.gov/sites/default/
files/documents/ocs/rpt_csbg_congressional_fy2016.pdf.
79 Nat’l Council on Disability (NCD), National Disability Policy: A Progress Report 19 (2017),
https://ncd.gov/progressreport/2017/national-disability-policy-progress-report-october-2017.
80 Demographic Changes and Aging Population, Rural Health Info. Hub, https://
www.ruralhealthinfo.org/toolkits/aging/1/demographics (last visited Apr. 11, 2022).
81 Nat’l Ass’n for State Cmty. Servs. Programs, supra note 8.
82 These include: the Neighborhood Innovation Projects program (42 U.S.C. § 9921(a)(4)), the
Community Food and Nutrition Programs (42 U.S.C. § 9922), and the National Youth Sport pro-
gram (42 U.S.C. § 9923). The Neighborhood Innovation Projects has never been funded and both
the Community Food and Nutrition Programs and the National Youth Sport Program have not
received funding since 2005.
83 42 U.S.C. § 9919. As mentioned, it is the Committee’s understanding that this authority has
never been used by the states. The Temporary Assistance for Needy Families (TANF), a pro-
gram that also serves low-income families, permits drug testing which has not shown positive
results. See, e.g., Amanda Michelle Gomez, States waste hundreds of thousands on drug testing
for welfare, but have little to show for it, Ctr. for L. and Soc. Pol’y (May 7, 2018), https://
www.clasp.org/press-room/news-clips/states-waste-hundreds-thousands-drug-testing-welfare-
have-little-show-it.
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Like the bipartisan CSBG reauthorization legislation introduced
in the 116th Congress,84 H.R. 5129 removes a controversial provi-
sion known as Charitable Choice,85 language governing the partici-
pation of faith-based entities in CSBG programs that allows reli-
gious discrimination against employees with taxpayer funds 86 in
CSBG funded programs and fails to protect beneficiaries from such
discrimination.87 The Committee received a letter from the Coali-
tion Against Religious Discrimination (CARD) representing a broad
and diverse group of leading religious, civil rights, labor, and
health organizations supporting the removal of the Charitable
Choice provision from CSBG’s statute, noting: ‘‘It allows taxpayer-
funded faith-based organizations to discriminate in hiring, includ-
ing by undermining state and local nondiscrimination protections,
and threatens the rights of beneficiaries when delivering serv-
ices.’’ 88 This provision served as the legislative foundation to Presi-
dent George W. Bush’s Faith-Based Initiative, which failed in Con-
gress 89 due to civil rights concerns and faced criticism due to
politicization of the initiative.90 Since the inception of community
action in the 1960s, faith leaders and faith-based organizations
have been deeply involved in community action agencies.91 Today,
CAA’s partnerships with faith-based organizations are alive and
well with over 19,000 partnerships between CAAs and faith-based
organizations.92 Moreover, a number of faith leaders sit on boards
of their local CAAs, contributing to how CAAs serve their commu-
nities.93 In addition, a CSBG-specific statutory and regulatory pro-
vision distinct from broader HHS policy creates a patchwork of con-
fusing and administratively cumbersome requirements for pro-
viders, especially those that operate multiple HHS programs. Re-
moving this controversial provision will allow reauthorization of
84 H.R. 1695, 116th Cong. (2019).
85 In signing the 1998 CSBG reauthorization legislation into law, President Clinton included
a limitation for the implementation of Charitable Choice in his signing statement. President Bill
Clinton, Statement on Signing the Community Opportunities, Accountability, and Training and
Educational Services Act of 1998 (Oct. 27, 1998) (transcript available at Am. Presidency Project,
https://www.presidency.ucsb.edu/documents/statement-signing-the-community-opportunities-ac-
countability-and-training-and-educational).
86 Fundamentally, the extension of the religious exemption in Title VII of the Civil Rights Act
of 1964 to federally funded positions is contrary to the legislative history of that exemption as
supporters justified the exemption by indicating that religious organizations were using their
private funds for these positions. See Melissa Rogers, Federal Funding and Religion-based Em-
ployment Decisions, in Sanctioning religion? Politics, Law, and Faith-based Public Services,
105–24 (David K. Ryden et al. eds., 2005).
87 42 U.S.C. § 9920. Section 679 of current law does not provide any protections for bene-
ficiaries against religious discrimination, nor does it require that religious activity be separated
in time and location from the provision of CSBG services. In contrast, regulations applicable to
CSBG include protections for beneficiaries and constitutional limitation regarding religious ac-
tivity. 45 C.F.R. pt. 1050 (2003). HHS also has department-wide regulations, not currently appli-
cable to CSBG which are also more protective than § 679 of current law. 45 C.F.R. pt. 87 (2016).
88 Letter from Coalition Against Religious Discrimination to Representative Robert C. Scott,
Chairman, H. Comm. on Educ. & Labor (Mar. 16, 2022) (on file with committee staff).
89 Dana Milbank, Bush Legislative Approach Failed in Faith Bill Battle, Wash. Post (Apr. 23,
2003), https://www.washingtonpost.com/archive/politics/2003/04/23/bush-legislative-approach-
failed-in-faith-bill-battle/bccb0efd-cf97-4191-a3e5-322327482aa7/.
90 See Daniel Schorn, A Loss of Faith, CBS News (Oct. 14, 2006), https://www.cbsnews.com/
news/a-loss-of-faith/ and Gross, Terry, Remembering David Kuo: Refocusing Religious Groups on
Faith, NPR (April 8, 2013), https://www.npr.org/2013/04/08/176567908/remembering-david-kuo-
refocusing-religious-groups-on-faith.
91 Robert Clark & Judy Mason, Cmty. Action P’ship, Community Action Agencies and Faith-
Based Organizations: A Legacy of Productive Partnerships 8 (2001), https://files.eric.ed.gov/
fulltext/ED464170.pdf.
92 Nat’l Ass’n for State Cmty. Servs. Programs, supra note 8.
93 A survey of Community Action Agencies reported that two-thirds of CAAs responding to the
survey have at least one representative from a faith-based organization on their board. More-
over, some CAAs specifically preserve board seats for representatives from faith-based organiza-
tions. See Robert Clark & Judy Mason, supra note 91.
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the Act to move forward while maintaining the longstanding in-
volvement of faith-based organizations in the CSBG program.
Finally, current law, as amended in 1998, contains language pro-
hibiting the use of funds for political activity and nonpartisan voter
registration activities.94 The 1998 reauthorization of CSBG signifi-
cantly revised and expanded provisions on political and non-
partisan voter registration activities and, in effect, ran contrary to
the broad requirements in the National Voter Registration Act.95
Enacted in 1993, the National Voter Registration Act expanded
nonpartisan voter registration opportunities at state Department of
Motor Vehicles and state agencies providing public assistance.96
H.R. 5129 updates the Act to align it with provisions currently in
Head Start,97 which allow nonpartisan groups to offer voter reg-
istration during eligible entities’ hours of service.98 Since 30 per-
cent of Head Start programs are administered by community action
agencies, it is appropriate to align these programs’ requirements.99
H.R. 5129 maintains the restrictions on political activity specific to
CSBG and does not change the lobbying restrictions that are con-
tained in annual appropriations bills nor does it affect HHS-wide
regulations that apply to all HHS programs, including the CSBG
Act’s programs.100 An amendment was offered by Mr. Cawthorn
during markup that sought to broadly prohibit lobbying with use
of CSBG funds but failed to align with current requirements.101
The amendment’s broad requirements could prohibit the sharing of
materials, including nonpartisan analysis, studies, or research, by
an eligible entity for general use by legislative bodies and could
prevent submitting these same materials in response to general an-
nouncements for testimony and feedback unless specifically re-
quested to do so.102 The amendment was defeated.
CONCLUSION
For nearly sixty years, the Community Services Block Grant and
its predecessor, the CAP program, have served as a cornerstone of
poverty reduction in the United States and provided critical re-
sources to states, territories, CAAs, Tribes, and other entities to ad-
dress the causes and conditions of poverty in their respective com-
munities. CSBG enables the community action network to leverage
federal investment to develop public-private partnerships to help
reduce poverty, improve economic security, and create new eco-
nomic opportunities for low-income individuals and communities.
Modernizing and improving CSBG is both necessary and long over-
due. H.R. 5129 modernizes this storied anti-poverty program and
revitalizes it to meet the needs of the 21st century.
94 42 U.S.C. § 9918.
95 Pub. L. No 103–31, § 7, 107 Stat. 77, 78 (1993) (codified at 42 U.S.C. § 20503).
96 Id.
97 42 U.S.C. § 9851.
98 Id.
99 Dep’t of Health & Human Servs., Off. of Head Start, Biennial Report to Congress, Fiscal
Year 2017, 29 (2017), https://www.acf.hhs.gov/sites/default/files/documents/ohs/ohs-2017-bien-
nial-report-to-congress.pdf.
100 See Pub. L. No. 117–103, div. H, § 503 (2022); 45 C.F.R. § 75.450 (2016).
101 45 C.F.R. § 75.450.
102 Id. § 75.450(c)(2).
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SECTION-BY SECTION ANALYSIS
Section 1. Short title
This section states that the title of the bill is the Community
Services Block Grant Modernization Act of 2022.
Section 2. Reauthorization
This section states that the bill amends subtitle B of title VI of
the Omnibus Budget Reconciliation Act of 1981 (the Community
Services Block Grant Act). This section replaces all sections under
title VI of the Omnibus Budget Reconciliation Act of 1981 with the
following sections:
Section 671. Short Title
This section states that the Act may be cited as the
Community Services Block Grant Act.
Section 672. Purposes
The section outlines the purposes of the Act: reducing
poverty by supporting activities of community action agen-
cies and other community services network organizations
that improve economic security of low-income individuals
and families and create new economic opportunities in
their communities and accomplishing these purposes by
strengthening community capabilities to identify and al-
leviate poverty conditions; empowering residents of low-in-
come communities to respond to community needs through
maximum feasible participation in activities under the Act;
using innovative community-based approaches that
produce a measurable impact on poverty, including whole
family approaches; coordinating public and private re-
sources related to reduction of poverty; and broadening re-
sources directed to elimination of poverty to promote part-
nerships among private and public individuals and organi-
zations.
Section 673. Definitions
This section makes changes to the definitions of ‘‘Poverty
Line’’ and ‘‘Private Nonprofit Organization’’; adds defini-
tions for ‘‘Agency-wide Strategic Plan,’’ ‘‘Community Action
Agency,’’ ‘‘Community Action Plan,’’ ‘‘Community Services
Network Organization,’’ ‘‘Evidence-Based Practice,’’
‘‘Grantee,’’ ‘‘Service Area,’’ and ‘‘Tribal Grantee’’; preserves
the definitions of ‘‘Eligible Entity,’’ ‘‘Secretary,’’ and
‘‘State’’; and deletes the definition of ‘‘Family Literacy
Services.’’
Section 674. Authorization of Community Services Block
Grant Program
This section authorizes the Secretary to carry out the
Community Services Block Grant (CSBG) and make grants
to states and territories to support local community action
plans and carry out discretionary community programs
under section 690.
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Section 675. Grants to Territories
This section requires the Secretary to use the amount
reserved, half of one percent of the total appropriation,
each fiscal year, to apportion on the basis of need among
Guam, American Samoa, the U.S. Virgin Islands, and the
Commonwealth of the Northern Mariana Islands. The Sec-
retary shall make a grant to each territory for the appor-
tioned amount. The section further requires that the Sec-
retary apportion funds to territories based on the most re-
cent applicable Census data accounting for poverty and re-
quires that the Secretary publicly publish plans on how
funds are apportioned among territories.
Section 676. Allotments and Grants to States
This section requires the Secretary, from appropriations
remaining after reservations for territories and certain fed-
eral activities, to make allotments to each eligible state
(including Puerto Rico), based on the relative amount each
state received in FY 1981 under the former Economic Op-
portunity Act of 1964. Additionally, the section updates the
minimum state allotment, allowing it to increase from half
of one percent to three-quarters of one percent if the ap-
propriated amount available for state allotments exceeds
$900 million after reservations for territories, training and
technical assistance, the Community Action Innovations
Fund, and the electronic data system. This section further
requires the Secretary to make grants to eligible states for
these allotments and to make payments for grants in ac-
cordance with 31 U.S.C. § 6503(a). Lastly, the section re-
quires the Secretary to allocate amounts on a quarterly
basis at a minimum, notify states of their allocations,
make each state’s first allocation of the fiscal year avail-
able for expenditure no later than 30 days after receipt of
the apportionment from OMB, and, for subsequent funds
in the fiscal year, make funds available to states no later
than 30 days after the start of the period for which the
Secretary is allocating funds. For purposes of this section,
‘‘State’’ does not include Guam, American Samoa, the U.S.
Virgin Islands, and the Commonwealth of the Northern
Mariana Islands.
Section 677. Payments to Indian Tribes
This section includes definitions for indigenous tribes in-
cluding ‘‘Indian’’ and ‘‘Indian Tribe or Tribal Organization’’
and requires the Secretary to award funds that would oth-
erwise be allotted to a state directly to an Indian tribe or
Tribal organization upon request if the Secretary finds
that Tribal members would be better served in such man-
ner. The section further provides that the amount reserved
must be based on the size of the Indian Tribe’s or Tribal
Organization’s population of eligible Indians as a propor-
tion of all eligible individuals in the state. To be eligible
to receive a grant, the section requires that an Indian
Tribe or Tribal organization submit a plan for the Sec-
retary’s approval. The section also provides that the Sec-
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retary may implement an alternative performance require-
ment for Tribal implementation of the requirements of sec-
tion 686(a).
Section 678. State Plans
This section requires that for a state to receive a grant,
the chief executive officer must: designate a lead agency
that will be authorized to convene state agencies and co-
ordinate information and activities under the Act; develop
the state plan, based primarily on community action plans
of eligible entities in the state; modify an existing state
plan for submission to the Secretary if considered a major
revision; hold at least one public hearing and a legislative
hearing, at least once every three years, on the plan and
proposed major revisions. In this section, the term ‘‘State’’
includes Guam, American Samoa, the U.S. Virgin Islands,
the Commonwealth of the Northern Mariana Islands, and
Puerto Rico.
This section further outlines the state application proc-
ess and plan requirements. States must submit a state
plan covering no more than two fiscal years to the Sec-
retary for approval no later than 60 days before the begin-
ning of the first fiscal year covered by the plan. Plans
must include: how funds under the Act will be used; a de-
scription summarizing community action plans; an assur-
ance that the state and eligible entities in the state will
participate in a performance measurement system; plans
for oversight of eligible entities; an assurance that the
state will pay eligible entities as outlined by the Act’s re-
quirements; an assurance that an eligible entity’s funding
will not be reduced, eliminated, or its designation as an el-
igible entity terminated, except under procedures specified
in the Act for cause; assurance of procedures for low-in-
come individuals or organizations to petition for adequate
representation on an entity’s board; a description of the
outcome measures to be used to measure performance; an
assurance that the state will develop policies on board va-
cancies; and an assurance that the state will coordinate
the CSBG program with other social service programs and
the employment and training activities connected to the
Workforce Innovation and Opportunity Act.
This section also requires the Secretary to notify states
of their application status within 60 days of receipt and
provide notice of approval, disapproval, or partial approval.
If plans are disapproved or partially disapproved, the Sec-
retary must describe changes necessary for approval. The
section also allows the Secretary to award funding directly
to eligible entities if the state plan is not approved by the
end of the third month covered by the plan. The section
also sets forth requirements for the eligible entity applica-
tion: each eligible entity application to the state must in-
clude a community action plan, based on the needs identi-
fied in the community needs assessment, covering no more
than two fiscal years. The section further provides that the
application must describe how the entity will implement
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activities and demonstrate how these activities will meet
the needs identified in the latest comprehensive commu-
nity needs assessment conducted in the previous three
years and achieve purposes of the Act.
Section 679. State and Local Uses of Funds
This section mandates that states distribute at least 90
percent of their allotments as subgrants to eligible entities.
It further requires that states obligate funds for subgrants
and make funds available for expenditure by eligible enti-
ties no later than 30 days after the state receives notice
of funding availability from the Secretary. This require-
ment applies to both the first allocation of funds and any
subsequent allocations. The section allows states to re-
quest an exception from the Secretary from the obligation
requirements in circumstances where funds are appro-
priated for less than a full fiscal year (e.g., as part of a
continuing resolution).
Additionally, this section authorizes states to use re-
maining block grant funds for administrative expenses and
training and technical assistance but caps administrative
spending at five percent of the state’s block grant. This
section also requires that eligible entities use subgrants to
provide low-income individuals and families with poverty
reducing services and opportunities through private and
public partnerships, relationships to avoid duplication of
services, and community investment. This section further
authorizes eligible entities to secure and identify assist-
ance related to reducing energy expenses and reducing en-
ergy consumption for low-income individuals and families.
The section also requires that 200 percent of the poverty
line as defined be used as the eligibility criterion for as-
sistance provided directly to individuals who receive serv-
ices under the Act. The section further authorizes states or
a Tribal grantee to establish procedures to allow a partici-
pant to remain eligible, regardless of income criteria used
to determine initial eligibility, to continue receiving serv-
ices if they are successfully progressing toward the goals
of a program, project, or service under the Act.
Section 680. Eligible Entities and Tripartite Boards
This section provides for the designation, re-designation,
and interim designation of eligible entities in unserved
areas. In such circumstances, the section authorizes the
state lead agency, in consultation with stakeholders, to
designate a new community action agency that is an exist-
ing private nonprofit community action agency located
near the unserved area. If no entity meeting all require-
ments for designation as a permanent eligible entity is
available, the state may designate a private nonprofit
agency (or public agency if a private nonprofit is not avail-
able) on an interim basis for no more than one year while
the state seeks to identify a permanent entity.
The section also provides for the merger, combination, or
privatization of existing eligible entities. If two or more en-
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tities find their service areas can be more effectively
served under a single agency or if a public entity finds it
would be more effective as a private nonprofit, the section
requires the state to assist in the development of a plan
to implement the merger or transition. The section further
provides that a state may establish requirements for merg-
er, combination, and privatization plans and for making its
determination of the capability of a merged, combined, or
privatized agency.
The section lays out the governing structure for private
nonprofit and public eligible entities including the require-
ments, composition, and duties of their respective tri-
partite boards. Private nonprofit eligible entities must be
governed by a tripartite board that is composed of one-
third elected public officials or their representatives; at
least one-third democratically selected representatives of
the low-income community, and reside in the area, if mem-
bers are chosen to represent a specific area; and the re-
maining board members may represent significant groups
and interests in the community. Public eligible entities
must ensure that their programs are under the supervision
of a tripartite board of which no more than one-third of the
members may be local government employees or officials,
including elected officials; no fewer than one-third must be
democratically selected representatives of the low-income
community that reside in the area; and the remaining
board members may represent groups and interests in the
community.
This section further specifies that board members must
be provided resources including access to individuals with
expertise in financial management, accounting, and law.
The section further requires that private agency boards op-
erate in compliance with federal tax-exempt requirements
and applicable state laws, and public agency boards must
comply with state requirements for open meetings, finan-
cial transparency, and open records. The section clarifies
that neither the federal government nor a state or local
government shall require a religious organization to alter
its form of internal governance except to meet the tri-
partite board requirements in the administration of CSBG.
The section also requires that board vacancies be filled
within six months; the eligible entity can request an addi-
tional six months from the state if it certifies that it is
making an effort to fill the seat.
The section additionally specifies the operations and du-
ties of tripartite boards. For private nonprofit boards, it re-
quires the boards to have legal and financial responsibility
for administration and oversight of the eligible entity’s op-
eration of the program including the duties to review
major policies, conduct performance reviews of the chief
executive officer, and adopt personnel policies. For public
agency boards, it requires that the boards supervise the el-
igible entity’s administration of the program including the
duties to review major policies, participate in performance
reviews of the chief executive officer, and review personnel
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policies. For boards of both private nonprofit organizations
and public agencies, it requires that they establish officer
terms and a code of ethical conduct, participate in commu-
nity needs assessments, develop and adopt an agency-wide
strategic plan that responds to the needs assessment, pre-
pare the community action plan, approve the operating
budget, conduct assessments on the eligible entity’s
progress in carrying out the community action plan, and
perform oversight.
Section 681. Office of Community Services
This section establishes the Office of Community Serv-
ices in the U.S. Department of Health and Human Serv-
ices, to be headed by a Director, and requires the Sec-
retary, acting through the Director, to carry out the Act
through grants, contracts, or cooperative agreements.
Section 682. Training, Technical Assistance, and Related
Activities
This section requires the Secretary to use two percent of
total block grant appropriations, for training, technical as-
sistance, planning, evaluation, and performance measure-
ments. Specifically, these funds must be used to help
states, eligible entities, Tribal grantees, and other commu-
nity services network organizations in building and using
evidence of effectiveness in reducing poverty conditions, in-
cluding information about evidence-based initiatives in
connection with the Community Action Innovations Pro-
gram; carrying out professional development activities to
expand the capacity of eligible entities and Tribal grant-
ees; carrying out performance management, reporting, and
data collection activities; and correcting programmatic de-
ficiencies. No less than half of the two percent of total
funds must be distributed directly to specified entities for:
professional development of key personnel; activities to im-
prove program quality, financial management, compliance,
and government practices; training for staff and board
members to effectively address the needs of low-income
families and communities; and training in building and
using evidence of effectiveness in reducing poverty condi-
tions and activities that support the Community Action In-
novations Program. Specified entities eligible for these
grants include eligible entities, Tribal grantees, and other
community services network organizations with dem-
onstrated expertise in providing training on methods of ef-
fectively addressing the needs of low-income families and
communities. This section also directs the Secretary to use
one percent of total funds reserved for a Community Ac-
tion Innovations Program by awarding grants, contracts,
or cooperative agreements to entities defined in the Act to
facilitate innovation, expansion, replication, use, and dis-
semination of evidence-based practices, including through
whole family approaches, to reduce poverty conditions.
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Section 683. State Monitoring of Eligible Entities
This section requires states to review eligible entities to
determine if they meet performance goals, administrative
standards, financial management requirements, and other
requirements under the Act. States must conduct: a full
on-site review of each eligible entity at least once every
three years; an on-site review of each newly designated eli-
gible entity immediately after its first year of receiving
funds under the Act; follow-up reviews within a calendar
quarter for entities that fail to meet state criteria or the
Act’s requirements; and other reviews as appropriate. The
section also allows remote reviews if approved by the Sec-
retary.
Section 684. Evaluations; Corrective Action; Reduction or
Elimination of Funding
This section requires the Secretary to conduct evalua-
tions of state compliance with the Act in no fewer than
one-fifth of states each year and make the evaluations, in-
cluding any recommendation for improvements, publicly
available on the U.S. Department of Health and Human
Services’ website. In the event a serious deficiency is found
as part of an assessment, the Secretary must propose a
corrective action plan. Within 45 days of receiving the Sec-
retary’s report containing recommendations, states must
submit to the Secretary and make publicly available on the
State lead agency’s website a plan of action in response to
any recommendations for which the Secretary must pro-
vide training and technical assistance. In cases where a
state receives a corrective action plan from the Secretary,
the state shall agree to implement such plan or propose a
different corrective action plan approved by the Secretary.
After a final determination of a state’s failure to comply
and after giving notice and opportunity for a hearing, the
Secretary may begin proceedings to reduce or eliminate
the state’s block grant funding and must award the fund-
ing directly to eligible entities in the state if the funding
for the state is reduced. The Secretary also may award
funding directly to eligible entities in the state and, for
statewide activities, to community services network organi-
zations in the state if a state fails to meet the require-
ments of the Act or if the state plan is not approved by the
end of the third month of the period covered by the plan.
The section sets out similar processes for state review of
and possible reduction or elimination of funding for eligible
entities and their designation as such. The state must pro-
vide documentation of its decision to reduce, withhold, or
terminate funding in a timely manner defined by the Sec-
retary and provide technical assistance to the eligible enti-
ty for the corrective action and approve of such plan. The
section authorizes the Secretary to review the state’s deci-
sion to reduce or eliminate funding or terminate an eligible
entity’s designation in the case of a finding of a serious de-
ficiency and requires the Secretary to do so upon request
by a community services network organization, which
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49
must be completed within 60 days after the Secretary re-
ceives necessary documentation from a state. After this re-
view, the Secretary may award funds directly to the af-
fected entity if the state violates required procedures. If
the Secretary finds that a state violated its state plan, the
Secretary shall award funds directly to the effected entity
until the violation is corrected by the state.
Section 685. State and Local Fiscal Controls and Audits
This section requires states to establish necessary fiscal
control and fund accounting procedures, ensure that cost
and accounting standards of the Office of Management and
Budget (OMB) apply to eligible entities, prepare an audit
of expenditures under the Act at least once a year, and
make appropriate records available to the Secretary and
Comptroller General of the United States. This section also
requires the Secretary to investigate and respond to sub-
stantial or serious complaints about the use of funds or ac-
tivities conducted by states. If the Secretary finds that a
state has not used the funds in accordance with the sub-
title, the Secretary is authorized to withhold funds from a
state under this subtitle until the state remedies the im-
properly expended funds.
Section 686. Accountability and Reporting Requirements
This section requires states to participate in and ensure
participation by eligible entities in a results-oriented per-
formance management system that meets the Secretary’s
requirements outlined in guidance. The section requires
that eligible entities report to states on their performance
and, by March 31 each year, that states report to the Sec-
retary on the performance of the state and eligible entities
within the state. State annual reports must include: an ac-
counting of the expenditure of funds under the Act; the
number and characteristics of participants served; a sum-
mary of training and technical assistance offered by the
state; information on the total budget and activities of eli-
gible entities (including local and private resources avail-
able for CSBG purposes); and a report on results-oriented
management practices.
The Secretary must provide technical assistance to
states and eligible entities to enhance the quality and
timeliness of reports. This section also requires the Sec-
retary to prepare a report by September 30 of each year
that includes information from state annual reports and
the U.S. Department of Health and Human Services’ per-
formance in carrying out the Act and submit the report
and any recommendations to the House Committee on
Education and Labor and the Senate Committee on
Health, Education, Labor and Pensions Committee.
Section 687. Limitations on Use of Funds
This section prohibits using grants and subgrants for the
purchase or improvement of land, buildings, or facilities,
except for the Community Economic Development and
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50
Rural Community Development activities under section
690 of the Act, unless the Secretary grants a waiver, or if
funds are used to improve accessibility of physical struc-
tures for individuals with disabilities. The section also pro-
hibits funds being used on activities or programs that dis-
criminate on the basis of race, color, national origin, or
sex, and it applies the antidiscrimination provisions of the
Age Discrimination Act, section 504 of the Rehabilitation
Act, and Title II of the Americans with Disabilities Act.
This section applies the Hatch Act to the employees of pub-
lic and private community action agencies. It also prohibits
programs or employees (during work hours) from engaging
in specified political activities but allows eligible entities to
make their facilities available for use by a nonpartisan or-
ganization to increase the number of eligible citizens who
register to vote in federal elections.
Section 688. Child Support Services and Referrals
This section requires eligible entities to inform custodial
parents or legal guardians who participate in the entity’s
activities about child support services and to refer parents
or legal guardians to state and local child support offices.
Section 689. Regulations
This section requires the Secretary to promulgate regu-
lations implementing the Act, including regulations for
state and community action plans, state monitoring of eli-
gible entities, and annual reports to the Secretary. This
section also requires the Secretary to issue guidance re-
garding state and local performance management systems
and the comprehensive community needs assessments.
Section 690. Discretionary Community Programs
This section authorizes the Secretary to directly admin-
ister the Community Economic Development program,
Rural Community Development Activities program, and
Broadband Navigator Projects. This section further pro-
vides that activities funded under this section be evaluated
and requires an annual report on these programs be sent
to the House Committee on Education and Labor and Sen-
ate Committee on Health, Education, Labor and Pensions.
Section 691. Authorization of Appropriations
This section authorizes $1 billion to be appropriated
each fiscal year from FY 2023 through FY 2027 and such
sums as necessary for each year from FY 2028 through FY
2032 for all activities under the Act, except Discretionary
Community Programs, which is authorized for such sums
as necessary for each year from FY 2023 through FY 2032.
This section also requires several reservations from the
total of amounts appropriated: half of one percent for
grants to territories; two percent for training, technical as-
sistance, and related activities; one percent for the Com-
munity Action Innovations Program; and up to $5 million
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51
for FY 2023, FY 2024, and FY 2025 for Electronic Data
System for Reports.
Section 692. References
This section provides that any reference in law to the
‘‘poverty line’’ in the Economic Opportunity Act of 1964
shall mean the definition of ‘‘poverty line’’ as defined in the
Act. The section also provides that any reference to the
‘‘poverty line’’ in the Community Services Block Grant Act,
as in effect prior to enactment of this Act, shall be deemed
to reference the definition of the poverty line as now de-
fined in the Act. Lastly, the section outlines that any ref-
erence in law to any community action agency as des-
ignated under the Economic Opportunity Act of 1964 shall
be construed to be an eligible entity to receive funds under
the Act.
Section 3. Transition period
This section requires the Secretary to establish a transition pe-
riod and schedule to implement any changes required by the Com-
munity Services Block Grant Modernization Act of 2022, which
must include the availability of federal training for states and eligi-
ble entities regarding compliance with new requirements. The sec-
tion requires that the transition period must end no later than
three months before the start of the second fiscal year after enact-
ment, and for issuance of final regulations implementing the sub-
title, the transition period may not extend later than two years
after the enactment.
Section 4. Conforming amendments
This section makes technical conforming amendments to the
Older Americans Act.
EXPLANATION OF AMENDMENTS
The amendments, including the amendment in the nature of a
substitute, are explained in the descriptive portions of this report.
APPLICATION OF LAW TO THE LEGISLATIVE BRANCH
Pursuant to section 102(b)(3) of the Congressional Accountability
Act, Pub. L. No. 104–1, H.R. 5129 does not apply to terms and con-
ditions of employment or to access to public services or accommoda-
tions within the legislative branch.
UNFUNDED MANDATE STATEMENT
Pursuant to Section 423 of the Congressional Budget and Im-
poundment Control Act of 1974, Pub. L. No. 93–344 (as amended
by Section 101(a)(2) of the Unfunded Mandates Reform Act of 1995,
Pub. L. No. 104–4), the Committee traditionally adopts as its own
the cost estimate prepared by the Director of the Congressional
Budget Office (CBO) pursuant to section 402 of the Congressional
Budget and Impoundment Control Act of 1974. The Committee re-
ports that because this cost estimate was not timely submitted to
the Committee before the filing of this report, the Committee is not
in a position to make a cost estimate for H.R. 5129, as amended.
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EARMARK STATEMENT
In accordance with clause 9 of rule XXI of the Rules of the House
of Representatives, H.R. 5129 does not contain any congressional
earmarks, limited tax benefits, or limited tariff benefits as de-
scribed in clauses 9(e), 9(f), and 9(g) of rule XXI.
ROLL CALL VOTES
In compliance with clause 3(b) of rule XIII of the Rules of the
House of Representatives, the Committee advises that the following
roll call votes occurred during the Committee’s consideration of
H.R. 5129:
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Insert offset folio 54 here HR311.001
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Insert offset folio 55 here HR311.002
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Insert offset folio 56 here HR311.003
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Insert offset folio 57 here HR311.004
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Insert offset folio 58 here HR311.005
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STATEMENT OF PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause (3)(c) of rule XIII of the Rules of the House
of Representatives, the goals of H.R. 5129 are to update and im-
prove the Community Services Block Grant Act.
DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House
of Representatives, the Committee states that no provision of H.R.
5129 establishes or reauthorizes a program of the Federal Govern-
ment known to be duplicative of another federal program, a pro-
gram that was included in any report from the Government Ac-
countability Office to Congress pursuant to section 21 of Pub. L.
No. 111–139, or a program related to a program identified in the
most recent Catalog of Federal Domestic Assistance.
HEARINGS
Pursuant to clause 3(c)(6) of rule XIII of the Rules of the House
of Representatives, the Committee held a legislative hearing enti-
tled ‘‘A Call to Action: Modernizing the Community Services Block
Grant,’’ which was used to consider H.R. 5129. The Committee
heard testimony on: how the Community Services Block Grant lifts
individuals and families out of poverty; how local entities use
CSBG funds to serve their communities; and how the changes in
H.R. 5129 improve and modernize the CSBG Act, and the necessity
of these changes particularly as the nation recovers from the
COVID–19 pandemic. The Committee heard testimony from Mr.
David Bradley, Chief Executive Officer of the National Community
Action Foundation, Fredericksburg, Virginia; Ms. Katherine King
Galian, Director of Family and Community Resources of Commu-
nity Action, Hillsboro, Oregon; Ms. Sharon Scott-Chandler, Execu-
tive Vice President and Chief Operating Officer of Action for Bos-
ton Community Development, Inc., Boston, Massachusetts; and Mr.
Clarence H. Carter, Commissioner of the Tennessee Department of
Human Services, Nashville, Tennessee.
STATEMENT OF OVERSIGHT FINDINGS AND RECOMMENDATIONS OF
THE COMMITTEE
In compliance with clause 3(c)(1) of rule XIII and clause 2(b)(1)
of rule X of the Rules of the House of Representatives, the Commit-
tee’s oversight findings and recommendations are reflected in the
descriptive portions of this report.
NEW BUDGET AUTHORITY AND CBO COST ESTIMATE
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House
of Representatives and section 308(a) of the Congressional Budget
and Impoundment Control Act of 1974, and pursuant to clause
3(c)(3) of rule XIII of the Rules of the House of Representatives and
section 402 of the Congressional Budget and Impoundment Control
Act of 1974, the Committee has requested but not received a cost
estimate for the bill from the Director of the Congressional Budget
Office.
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60
COMMITTEE COST ESTIMATE
Clause 3(d)(1) of rule XIII of the Rules of the House of Rep-
resentatives requires an estimate and a comparison of the costs
that would be incurred in carrying out H.R. 5129. However, clause
3(d)(2)(B) of that rule provides that this requirement does not
apply when the committee has included in its report a timely sub-
mitted cost estimate of the bill prepared by the Director of the Con-
gressional Budget Office under section 402 of the Congressional
Budget and Impoundment Control Act of 1974. The Committee re-
ports that because this cost estimate was not timely submitted to
the Committee before the filing of this report, the Committee is not
in a position to make a cost estimate for H.R. 5129, as amended.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
H.R. 5129, as reported, are shown as follows:
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) 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 omit-
ted is enclosed in black brackets, new matter is printed in italics,
and existing law in which no change is proposed is shown in
roman):
OMNIBUS BUDGET RECONCILIATION ACT OF 1981
* * * * * * *
TITLE VI—HUMAN SERVICES PROGRAMS
* * * * * * *
øSUBTITLE B—COMMUNITY SERVICES BLOCK GRANT PROGRAM
øSEC. 671. SHORT TITLE.
øThis subtitle may be cited as the ‘‘Community Services Block
Grant Act’’.
øSEC. 672. PURPOSES AND GOALS.
øThe purposes of this subtitle are—
ø(1) to provide assistance to States and local communities,
working through a network of community action agencies and
other neighborhood-based organizations, for the reduction of
poverty, the revitalization of low-income communities, and the
empowerment of low-income families and individuals in rural
and urban areas to become fully self-sufficient (particularly
families who are attempting to transition off a State program
carried out under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.)); and
ø(2) to accomplish the goals described in paragraph (1)
through—
ø(A) the strengthening of community capabilities for
planning and coordinating the use of a broad range of Fed-
eral, State, local, and other assistance (including private
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61
resources) related to the elimination of poverty, so that
this assistance can be used in a manner responsive to local
needs and conditions;
ø(B) the organization of a range of services related to the
needs of low-income families and individuals, so that these
services may have a measurable and potentially major im-
pact on the causes of poverty in the community and may
help the families and individuals to achieve self-suffi-
ciency;
ø(C) the greater use of innovative and effective commu-
nity-based approaches to attacking the causes and effects
of poverty and of community breakdown;
ø(D) the maximum participation of residents of the low-
income communities and members of the groups served by
programs assisted through the block grants made under
this subtitle to empower such residents and members to
respond to the unique problems and needs within their
communities; and
ø(E) the broadening of the resource base of programs di-
rected to the elimination of poverty so as to secure a more
active role in the provision of services for—
ø(i) private, religious, charitable, and neighborhood-
based organizations; and
ø(ii) individual citizens, and business, labor, and
professional groups, who are able to influence the
quantity and quality of opportunities and services for
the poor.
øSEC. 673. DEFINITIONS.
øIn this subtitle:
ø(1) ELIGIBLE ENTITY; FAMILY LITERACY SERVICES.—
ø(A) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means
an entity—
ø(i) that is an eligible entity described in section
673(1) (as in effect on the day before the date of enact-
ment of the Coats Human Services Reauthorization
Act of 1998) as of the day before such date of enact-
ment or is designated by the process described in sec-
tion 676A (including an organization serving migrant
or seasonal farmworkers that is so described or des-
ignated); and
ø(ii) that has a tripartite board or other mechanism
described in subsection (a) or (b), as appropriate, of
section 676B.
ø(B) FAMILY LITERACY SERVICES.—The term ‘‘family lit-
eracy services’’ has the meaning given the term in section
637 of the Head Start Act (42 U.S.C. 9832).
ø(2) POVERTY LINE.—The term ‘‘poverty line’’ means the offi-
cial poverty line defined by the Office of Management and
Budget based on the most recent data available from the Bu-
reau of the Census. The Secretary shall revise annually (or at
any shorter interval the Secretary determines to be feasible
and desirable) the poverty line, which shall be used as a cri-
terion of eligibility in the community services block grant pro-
gram established under this subtitle. The required revision
shall be accomplished by multiplying the official poverty line
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62
by the percentage change in the Consumer Price Index for All
Urban Consumers during the annual or other interval imme-
diately preceding the time at which the revision is made.
Whenever a State determines that it serves the objectives of
the block grant program established under this subtitle, the
State may revise the poverty line to not to exceed 125 percent
of the official poverty line otherwise applicable under this
paragraph.
ø(3) PRIVATE, NONPROFIT ORGANIZATION.—The term ‘‘private,
nonprofit organization’’ includes a religious organization, to
which the provisions of section 679 shall apply.
ø(4) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of Health and Human Services.
ø(5) STATE.—The term ‘‘State’’ means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, Guam, the United States Virgin Islands, American
Samoa, and the Commonwealth of the Northern Mariana Is-
lands.
øSEC. 674. AUTHORIZATION OF APPROPRIATIONS.
ø(a) IN GENERAL.—There are authorized to be appropriated such
sums as may be necessary for each of fiscal years 1999 through
2003 to carry out the provisions of this subtitle (other than sections
681 and 682).
ø(b) RESERVATIONS.—Of the amounts appropriated under sub-
section (a) for each fiscal year, the Secretary shall reserve—
ø(1) 1⁄2 of 1 percent for carrying out section 675A (relating
to payments for territories);
ø(2) 11⁄2 percent for activities authorized in sections 678A
through 678F, of which—
ø(A) not less than 1⁄2 of the amount reserved by the Sec-
retary under this paragraph shall be distributed directly to
eligible entities, organizations, or associations described in
section 678A(c)(2) for the purpose of carrying out activities
described in section 678A(c); and
ø(B) 1⁄2 of the remainder of the amount reserved by the
Secretary under this paragraph shall be used by the Sec-
retary to carry out evaluation and to assist States in car-
rying out corrective action activities and monitoring (to
correct programmatic deficiencies of eligible entities), as
described in sections 678B(c) and 678A; and
ø(3) 9 percent for carrying out section 680 (relating to discre-
tionary activities) and section 678E(b)(2).
øSEC. 675. ESTABLISHMENT OF BLOCK GRANT PROGRAM.
øThe Secretary is authorized to establish a community services
block grant program and make grants through the program to
States to ameliorate the causes of poverty in communities within
the States.
øSEC. 675A. DISTRIBUTION TO TERRITORIES.
ø(a) APPORTIONMENT.—The Secretary shall apportion the amount
reserved under section 674(b)(1) for each fiscal year on the basis of
need among Guam, American Samoa, the United States Virgin Is-
lands, and the Commonwealth of the Northern Mariana Islands.
ø(b) APPLICATION.—Each jurisdiction to which subsection (a) ap-
plies may receive a grant under this section for the amount appor-
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63
tioned under subsection (a) on submitting to the Secretary, and ob-
taining approval of, an application, containing provisions that de-
scribe the programs for which assistance is sought under this sec-
tion, that is prepared in accordance with, and contains the informa-
tion described in, section 676.
øSEC. 675B. ALLOTMENTS AND PAYMENTS TO STATES.
ø(a) ALLOTMENTS IN GENERAL.—The Secretary shall, from the
amount appropriated under section 674(a) for each fiscal year that
remains after the Secretary makes the reservations required in sec-
tion 674(b), allot to each State (subject to section 677) an amount
that bears the same ratio to such remaining amount as the amount
received by the State for fiscal year 1981 under section 221 of the
Economic Opportunity Act of 1964 bore to the total amount re-
ceived by all States for fiscal year 1981 under such section, ex-
cept—
ø(1) that no State shall receive less than 1⁄4 of 1 percent of
the amount appropriated under section 674(a) for such fiscal
year; and
ø(2) as provided in subsection (b).
ø(b) ALLOTMENTS IN YEARS WITH GREATER AVAILABLE FUNDS.—
ø(1) MINIMUM ALLOTMENTS.—Subject to paragraphs (2) and
(3), if the amount appropriated under section 674(a) for a fiscal
year that remains after the Secretary makes the reservations
required in section 674(b) exceeds $345,000,000, the Secretary
shall allot to each State not less than 1⁄2 of 1 percent of the
amount appropriated under section 674(a) for such fiscal year.
ø(2) MAINTENANCE OF FISCAL YEAR 1990 LEVELS.—Paragraph
(1) shall not apply with respect to a fiscal year if the amount
allotted under subsection (a) to any State for that year is less
than the amount allotted under section 674(a)(1) (as in effect
on September 30, 1989) to such State for fiscal year 1990.
ø(3) MAXIMUM ALLOTMENTS.—The amount allotted under
paragraph (1) to a State for a fiscal year shall be reduced, if
necessary, so that the aggregate amount allotted to such State
under such paragraph and subsection (a) does not exceed 140
percent of the aggregate amount allotted to such State under
the corresponding provisions of this subtitle for the preceding
fiscal year.
ø(c) PAYMENTS.—The Secretary shall make grants to eligible
States for the allotments described in subsections (a) and (b). The
Secretary shall make payments for the grants in accordance with
section 6503(a) of title 31, United States Code.
ø(d) DEFINITION.—In this section, the term ‘‘State’’ does not in-
clude Guam, American Samoa, the United States Virgin Islands,
and the Commonwealth of the Northern Mariana Islands.
øSEC. 675C. USES OF FUNDS.
ø(a) GRANTS TO ELIGIBLE ENTITIES AND OTHER ORGANIZATIONS.—
ø(1) IN GENERAL.—Not less than 90 percent of the funds
made available to a State under section 675A or 675B shall be
used by the State to make grants for the purposes described
in section 672 to eligible entities.
ø(2) OBLIGATIONAL AUTHORITY.—Funds distributed to eligible
entities through grants made in accordance with paragraph (1)
for a fiscal year shall be available for obligation during that fis-
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64
cal year and the succeeding fiscal year, subject to paragraph
(3).
ø(3) RECAPTURE AND REDISTRIBUTION OF UNOBLIGATED
FUNDS.—
ø(A) AMOUNT.—Beginning on October 1, 2000, a State
may recapture and redistribute funds distributed to an eli-
gible entity through a grant made under paragraph (1)
that are unobligated at the end of a fiscal year if such un-
obligated funds exceed 20 percent of the amount so distrib-
uted to such eligible entity for such fiscal year.
ø(B) REDISTRIBUTION.—In redistributing funds recap-
tured in accordance with this paragraph, States shall re-
distribute such funds to an eligible entity, or require the
original recipient of the funds to redistribute the funds to
a private, nonprofit organization, located within the com-
munity served by the original recipient of the funds, for ac-
tivities consistent with the purposes of this subtitle.
ø(b) STATEWIDE ACTIVITIES.—
ø(1) USE OF REMAINDER.—If a State uses less than 100 per-
cent of the grant or allotment received under section 675A or
675B to make grants under subsection (a), the State shall use
the remainder of the grant or allotment under section 675A or
675B (subject to paragraph (2)) for activities that may in-
clude—
ø(A) providing training and technical assistance to those
entities in need of such training and assistance;
ø(B) coordinating State-operated programs and services,
and at the option of the State, locally-operated programs
and services, targeted to low-income children and families
with services provided by eligible entities and other orga-
nizations funded under this subtitle, including detailing
appropriate employees of State or local agencies to entities
funded under this subtitle, to ensure increased access to
services provided by such State or local agencies;
ø(C) supporting statewide coordination and communica-
tion among eligible entities;
ø(D) analyzing the distribution of funds made available
under this subtitle within the State to determine if such
funds have been targeted to the areas of greatest need;
ø(E) supporting asset-building programs for low-income
individuals, such as programs supporting individual devel-
opment accounts;
ø(F) supporting innovative programs and activities con-
ducted by community action agencies or other neighbor-
hood-based organizations to eliminate poverty, promote
self-sufficiency, and promote community revitalization;
ø(G) supporting State charity tax credits as described in
subsection (c); and
ø(H) supporting other activities, consistent with the pur-
poses of this subtitle.
ø(2) ADMINISTRATIVE CAP.—No State may spend more than
the greater of $55,000, or 5 percent, of the grant received
under section 675A or State allotment received under section
675B for administrative expenses, including monitoring activi-
ties. Funds to be spent for such expenses shall be taken from
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65
the portion of the grant under section 675A or State allotment
that remains after the State makes grants to eligible entities
under subsection (a). The cost of activities conducted under
paragraph (1)(A) shall not be considered to be administrative
expenses. The startup cost and cost of administrative activities
conducted under subsection (c) shall be considered to be admin-
istrative expenses.
ø(c) CHARITY TAX CREDIT.—
ø(1) IN GENERAL.—Subject to paragraph (2), if there is in ef-
fect under State law a charity tax credit, the State may use for
any purpose the amount of the allotment that is available for
expenditure under subsection (b).
ø(2) LIMIT.—The aggregate amount a State may use under
paragraph (1) during a fiscal year shall not exceed 100 percent
of the revenue loss of the State during the fiscal year that is
attributable to the charity tax credit, as determined by the Sec-
retary of the Treasury without regard to any such revenue loss
occurring before January 1, 1999.
ø(3) DEFINITIONS AND RULES.—In this subsection:
ø(A) CHARITY TAX CREDIT.—The term ‘‘charity tax credit’’
means a nonrefundable credit against State income tax (or,
in the case of a State that does not impose an income tax,
a comparable benefit) that is allowable for contributions,
in cash or in kind, to qualified charities.
ø(B) QUALIFIED CHARITY.—
ø(i) IN GENERAL.—The term ‘‘qualified charity’’
means any organization—
ø(I) that is—
ø(aa) described in section 501(c)(3) of the
Internal Revenue Code of 1986 and exempt
from tax under section 501(a) of such Code;
ø(bb) an eligible entity; or
ø(cc) a 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));
ø(II) that is certified by the appropriate State
authority as meeting the requirements of clauses
(iii) and (iv); and
ø(III) if such organization is otherwise required
to file a return under section 6033 of such Code,
that elects to treat the information required to be
furnished by clause (v) as being specified in sec-
tion 6033(b) of such Code.
ø(ii) CERTAIN CONTRIBUTIONS TO COLLECTION ORGA-
NIZATIONS TREATED AS CONTRIBUTIONS TO QUALIFIED
CHARITY.—
ø(I) IN GENERAL.—A contribution to a collection
organization shall be treated as a contribution to
a qualified charity if the donor designates in writ-
ing that the contribution is for the qualified char-
ity.
ø(II) COLLECTION ORGANIZATION.—The term
‘‘collection organization’’ means an organization
described in section 501(c)(3) of such Code and ex-
empt from tax under section 501(a) of such Code—
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66
ø(aa) that solicits and collects gifts and
grants that, by agreement, are distributed to
qualified charities;
ø(bb) that distributes to qualified charities
at least 90 percent of the gifts and grants the
organization receives that are designated for
such qualified charities; and
ø(cc) that meets the requirements of clause
(vi).
ø(iii) CHARITY MUST PRIMARILY ASSIST POOR INDIVID-
UALS.—
ø(I) IN GENERAL.—An organization meets the re-
quirements of this clause only if the appropriate
State authority reasonably expects that the pre-
dominant activity of such organization will be the
provision of direct services within the United
States to individuals and families whose annual
incomes generally do not exceed 185 percent of the
poverty line in order to prevent or alleviate pov-
erty among such individuals and families.
ø(II) NO RECORDKEEPING IN CERTAIN CASES.—An
organization shall not be required to establish or
maintain records with respect to the incomes of
individuals and families for purposes of subclause
(I) if such individuals or families are members of
groups that are generally recognized as including
substantially only individuals and families de-
scribed in subclause (I).
ø(III) FOOD AID AND HOMELESS SHELTERS.—Ex-
cept as otherwise provided by the appropriate
State authority, for purposes of subclause (I), serv-
ices to individuals in the form of—
ø(aa) donations of food or meals; or
ø(bb) temporary shelter to homeless individ-
uals;
shall be treated as provided to individuals de-
scribed in subclause (I) if the location and provi-
sion of such services are such that the service pro-
vider may reasonably conclude that the bene-
ficiaries of such services are predominantly indi-
viduals described in subclause (I).
ø(iv) MINIMUM EXPENSE REQUIREMENT.—
ø(I) IN GENERAL.—An organization meets the re-
quirements of this clause only if the appropriate
State authority reasonably expects that the an-
nual poverty program expenses of such organiza-
tion will not be less than 75 percent of the annual
aggregate expenses of such organization.
ø(II) POVERTY PROGRAM EXPENSE.—For purposes
of subclause (I)—
ø(aa) IN GENERAL.—The term ‘‘poverty pro-
gram expense’’ means any expense in pro-
viding direct services referred to in clause
(iii).
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67
ø(bb) EXCEPTIONS.—Such term shall not in-
clude any management or general expense,
any expense for the purpose of influencing
legislation (as defined in section 4911(d) of
the Internal Revenue Code of 1986), any ex-
pense for the purpose of fundraising, any ex-
pense for a legal service provided on behalf of
any individual referred to in clause (iii), any
expense for providing tuition assistance relat-
ing to compulsory school attendance, and any
expense that consists of a payment to an affil-
iate of the organization.
ø(v) REPORTING REQUIREMENT.—The information re-
quired to be furnished under this clause about an or-
ganization is—
ø(I) the percentages determined by dividing the
following categories of the organization’s expenses
for the year by the total expenses of the organiza-
tion for the year: expenses for direct services,
management expenses, general expenses, fund-
raising expenses, and payments to affiliates; and
ø(II) the category or categories (including food,
shelter, education, substance abuse prevention or
treatment, job training, or other) of services that
constitute predominant activities of the organiza-
tion.
ø(vi) ADDITIONAL REQUIREMENTS FOR COLLECTION
ORGANIZATIONS.—The requirements of this clause are
met if the organization—
ø(I) maintains separate accounting for revenues
and expenses; and
ø(II) makes available to the public information
on the administrative and fundraising costs of the
organization, and information as to the organiza-
tions receiving funds from the organization and
the amount of such funds.
ø(vii) SPECIAL RULE FOR STATES REQUIRING TAX UNI-
FORMITY.—In the case of a State—
ø(I) that has a constitutional requirement of tax
uniformity; and
ø(II) that, as of December 31, 1997, imposed a
tax on personal income with—
ø(aa) a single flat rate applicable to all
earned and unearned income (except insofar
as any amount is not taxed pursuant to tax
forgiveness provisions); and
ø(bb) no generally available exemptions or
deductions to individuals;
the requirement of paragraph (2) shall be treated as
met if the amount of the credit described in paragraph
(2) is limited to a uniform percentage (but not greater
than 25 percent) of State personal income tax liability
(determined without regard to credits).
ø(4) LIMITATION ON USE OF FUNDS FOR STARTUP AND ADMINIS-
TRATIVE ACTIVITIES.—Except to the extent provided in sub-
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68
section (b)(2), no part of the aggregate amount a State uses
under paragraph (1) may be used to pay for the cost of the
startup and administrative activities conducted under this sub-
section.
ø(5) PROHIBITION ON USE OF FUNDS FOR LEGAL SERVICES OR
TUITION ASSISTANCE.—No part of the aggregate amount a State
uses under paragraph (1) may be used to provide legal services
or to provide tuition assistance related to compulsory education
requirements (not including tuition assistance for tutoring,
camps, skills development, or other supplemental services or
training).
ø(6) PROHIBITION ON SUPPLANTING FUNDS.—No part of the
aggregate amount a State uses under paragraph (1) may be
used to supplant non-Federal funds that would be available, in
the absence of Federal funds, to offset a revenue loss of the
State attributable to a charity tax credit.
øSEC. 676. APPLICATION AND PLAN.
ø(a) DESIGNATION OF LEAD AGENCY.—
ø(1) DESIGNATION.—The chief executive officer of a State de-
siring to receive a grant or allotment under section 675A or
675B shall designate, in an application submitted to the Sec-
retary under subsection (b), an appropriate State agency that
complies with the requirements of paragraph (2) to act as a
lead agency for purposes of carrying out State activities under
this subtitle.
ø(2) DUTIES.—The lead agency shall—
ø(A) develop the State plan to be submitted to the Sec-
retary under subsection (b);
ø(B) in conjunction with the development of the State
plan as required under subsection (b), hold at least one
hearing in the State with sufficient time and statewide
distribution of notice of such hearing, to provide to the
public an opportunity to comment on the proposed use and
distribution of funds to be provided through the grant or
allotment under section 675A or 675B for the period cov-
ered by the State plan; and
ø(C) conduct reviews of eligible entities under section
678B.
ø(3) LEGISLATIVE HEARING.—In order to be eligible to receive
a grant or allotment under section 675A or 675B, the State
shall hold at least one legislative hearing every 3 years in con-
junction with the development of the State plan.
ø(b) STATE APPLICATION AND PLAN.—Beginning with fiscal year
2000, to be eligible to receive a grant or allotment under section
675A or 675B, a State shall prepare and submit to the Secretary
an application and State plan covering a period of not less than 1
fiscal year and not more than 2 fiscal years. The plan shall be sub-
mitted not later than 30 days prior to the beginning of the first fis-
cal year covered by the plan, and shall contain such information as
the Secretary shall require, including—
ø(1) an assurance that funds made available through the
grant or allotment will be used—
ø(A) to support activities that are designed to assist low-
income families and individuals, including families and in-
dividuals receiving assistance under part A of title IV of
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69
the Social Security Act (42 U.S.C. 601 et seq.), homeless
families and individuals, migrant or seasonal farmworkers,
and elderly low-income individuals and families, and a de-
scription of how such activities will enable the families and
individuals—
ø(i) to remove obstacles and solve problems that
block the achievement of self-sufficiency (including
self-sufficiency for families and individuals who are at-
tempting to transition off a State program carried out
under part A of title IV of the Social Security Act);
ø(ii) to secure and retain meaningful employment;
ø(iii) to attain an adequate education, with par-
ticular attention toward improving literacy skills of
the low-income families in the communities involved,
which may include carrying out family literacy initia-
tives;
ø(iv) to make better use of available income;
ø(v) to obtain and maintain adequate housing and a
suitable living environment;
ø(vi) to obtain emergency assistance through loans,
grants, or other means to meet immediate and urgent
family and individual needs; and
ø(vii) to achieve greater participation in the affairs
of the communities involved, including the develop-
ment of public and private grassroots partnerships
with local law enforcement agencies, local housing au-
thorities, private foundations, and other public and
private partners to—
ø(I) document best practices based on successful
grassroots intervention in urban areas, to develop
methodologies for widespread replication; and
ø(II) strengthen and improve relationships with
local law enforcement agencies, which may include
participation in activities such as neighborhood or
community policing efforts;
ø(B) to address the needs of youth in low-income commu-
nities through youth development programs that support
the primary role of the family, give priority to the preven-
tion of youth problems and crime, and promote increased
community coordination and collaboration in meeting the
needs of youth, and support development and expansion of
innovative community-based youth development programs
that have demonstrated success in preventing or reducing
youth crime, such as—
ø(i) programs for the establishment of violence-free
zones that would involve youth development and inter-
vention models (such as models involving youth medi-
ation, youth mentoring, life skills training, job cre-
ation, and entrepreneurship programs); and
ø(ii) after-school child care programs; and
ø(C) to make more effective use of, and to coordinate
with, other programs related to the purposes of this sub-
title (including State welfare reform efforts);
ø(2) a description of how the State intends to use discre-
tionary funds made available from the remainder of the grant
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70
or allotment described in section 675C(b) in accordance with
this subtitle, including a description of how the State will sup-
port innovative community and neighborhood-based initiatives
related to the purposes of this subtitle;
ø(3) information provided by eligible entities in the State,
containing—
ø(A) a description of the service delivery system, for
services provided or coordinated with funds made available
through grants made under section 675C(a), targeted to
low-income individuals and families in communities within
the State;
ø(B) a description of how linkages will be developed to
fill identified gaps in the services, through the provision of
information, referrals, case management, and followup
consultations;
ø(C) a description of how funds made available through
grants made under section 675C(a) will be coordinated
with other public and private resources; and
ø(D) a description of how the local entity will use the
funds to support innovative community and neighborhood-
based initiatives related to the purposes of this subtitle,
which may include fatherhood initiatives and other initia-
tives with the goal of strengthening families and encour-
aging effective parenting;
ø(4) an assurance that eligible entities in the State will pro-
vide, on an emergency basis, for the provision of such supplies
and services, nutritious foods, and related services, as may be
necessary to counteract conditions of starvation and malnutri-
tion among low-income individuals;
ø(5) an assurance that the State and the eligible entities in
the State will coordinate, and establish linkages between, gov-
ernmental and other social services programs to assure the ef-
fective delivery of such services to low-income individuals and
to avoid duplication of such services, and a description of how
the State and the eligible entities will coordinate the provision
of employment and training activities, as defined in section 101
of such Act, in the State and in communities with entities pro-
viding activities through statewide and local workforce invest-
ment systems under the Workforce Investment Act of 1998; f
ƒ(5) an assurance that the State and the eligible entities in
the State will coordinate, and establish linkages between, gov-
ernmental and other social services programs to assure the ef-
fective delivery of such services to low-income individuals and
to avoid duplication of such services, and a description of how
the State and the eligible entities will coordinate the provision
of employment and training activities, as defined in section 3
of the Workforce Innovation and Opportunity Act, in the State
and in communities with entities providing activities through
statewide and local workforce development systems under such
Act;
ø(6) an assurance that the State will ensure coordination be-
tween antipoverty programs in each community in the State,
and ensure, where appropriate, that emergency energy crisis
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71
intervention programs under title XXVI (relating to low-income
home energy assistance) are conducted in such community;
ø(7) an assurance that the State will permit and cooperate
with Federal investigations undertaken in accordance with sec-
tion 678D;
ø(8) an assurance that any eligible entity in the State that
received funding in the previous fiscal year through a commu-
nity services block grant made under this subtitle will not have
its funding terminated under this subtitle, or reduced below
the proportional share of funding the entity received in the
previous fiscal year unless, after providing notice and an op-
portunity for a hearing on the record, the State determines
that cause exists for such termination or such reduction, sub-
ject to review by the Secretary as provided in section 678C(b);
ø(9) an assurance that the State and eligible entities in the
State will, to the maximum extent possible, coordinate pro-
grams with and form partnerships with other organizations
serving low-income residents of the communities and members
of the groups served by the State, including religious organiza-
tions, charitable groups, and community organizations;
ø(10) an assurance that the State will require each eligible
entity in the State to establish procedures under which a low-
income individual, community organization, or religious organi-
zation, or representative of low-income individuals that con-
siders its organization, or low-income individuals, to be inad-
equately represented on the board (or other mechanism) of the
eligible entity to petition for adequate representation;
ø(11) an assurance that the State will secure from each eligi-
ble entity in the State, as a condition to receipt of funding by
the entity through a community services block grant made
under this subtitle for a program, a community action plan
(which shall be submitted to the Secretary, at the request of
the Secretary, with the State plan) that includes a community-
needs assessment for the community served, which may be co-
ordinated with community-needs assessments conducted for
other programs;
ø(12) an assurance that the State and all eligible entities in
the State will, not later than fiscal year 2001, participate in
the Results Oriented Management and Accountability System,
another performance measure system for which the Secretary
facilitated development pursuant to section 678E(b), or an al-
ternative system for measuring performance and results that
meets the requirements of that section, and a description of
outcome measures to be used to measure eligible entity per-
formance in promoting self-sufficiency, family stability, and
community revitalization; and
ø(13) information describing how the State will carry out the
assurances described in this subsection.
ø(c) FUNDING TERMINATION OR REDUCTIONS.—For purposes of
making a determination in accordance with subsection (b)(8) with
respect to—
ø(1) a funding reduction, the term ‘‘cause’’ includes—
ø(A) a statewide redistribution of funds provided
through a community services block grant under this sub-
title to respond to—
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72
ø(i) the results of the most recently available census
or other appropriate data;
ø(ii) the designation of a new eligible entity; or
ø(iii) severe economic dislocation; or
ø(B) the failure of an eligible entity to comply with the
terms of an agreement or a State plan, or to meet a State
requirement, as described in section 678C(a); and
ø(2) a termination, the term ‘‘cause’’ includes the failure of
an eligible entity to comply with the terms of an agreement or
a State plan, or to meet a State requirement, as described in
section 678C(a).
ø(d) PROCEDURES AND INFORMATION.—The Secretary may pre-
scribe procedures for the purpose of assessing the effectiveness of
eligible entities in carrying out the purposes of this subtitle.
ø(e) REVISIONS AND INSPECTION.—
ø(1) REVISIONS.—The chief executive officer of each State
may revise any plan prepared under this section and shall sub-
mit the revised plan to the Secretary.
ø(2) PUBLIC INSPECTION.—Each plan or revised plan pre-
pared under this section shall be made available for public in-
spection within the State in such a manner as will facilitate re-
view of, and comment on, the plan.
ø(f) TRANSITION.—For fiscal year 2000, to be eligible to receive a
grant or allotment under section 675A or 675B, a State shall pre-
pare and submit to the Secretary an application and State plan in
accordance with the provisions of this subtitle (as in effect on the
day before the date of enactment of the Coats Human Services Re-
authorization Act of 1998), rather than the provisions of sub-
sections (a) through (c) relating to applications and plans.
øSEC. 676A. DESIGNATION AND REDESIGNATION OF ELIGIBLE ENTI-
TIES IN UNSERVED AREAS.
ø(a) QUALIFIED ORGANIZATION IN OR NEAR AREA.—
ø(1) IN GENERAL.—If any geographic area of a State is not,
or ceases to be, served by an eligible entity under this subtitle,
and if the chief executive officer of the State decides to serve
such area, the chief executive officer may solicit applications
from, and designate as an eligible entity—
ø(A) a private nonprofit organization (which may include
an eligible entity) that is geographically located in the
unserved area, that is capable of providing a broad range
of services designed to eliminate poverty and foster self-
sufficiency, and that meets the requirements of this sub-
title; and
ø(B) a private nonprofit eligible entity that is geographi-
cally located in an area contiguous to or within reasonable
proximity of the unserved area and that is already pro-
viding related services in the unserved area.
ø(2) REQUIREMENT.—In order to serve as the eligible entity
for the area, an entity described in paragraph (1)(B) shall
agree to add additional members to the board of the entity to
ensure adequate representation—
ø(A) in each of the three required categories described in
subparagraphs (A), (B), and (C) of section 676B(a)(2), by
members that reside in the community comprised by the
unserved area; and
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73
ø(B) in the category described in section 676B(a)(2)(B),
by members that reside in the neighborhood to be served.
ø(b) SPECIAL CONSIDERATION.—In designating an eligible entity
under subsection (a), the chief executive officer shall grant the des-
ignation to an organization of demonstrated effectiveness in meet-
ing the goals and purposes of this subtitle and may give priority,
in granting the designation, to eligible entities that are providing
related services in the unserved area, consistent with the needs
identified by a community-needs assessment.
ø(c) NO QUALIFIED ORGANIZATION IN OR NEAR AREA.—If no pri-
vate, nonprofit organization is identified or determined to be quali-
fied under subsection (a) to serve the unserved area as an eligible
entity the chief executive officer may designate an appropriate po-
litical subdivision of the State to serve as an eligible entity for the
area. In order to serve as the eligible entity for that area, the polit-
ical subdivision shall have a board or other mechanism as required
in section 676B(b).
øSEC. 676B. TRIPARTITE BOARDS.
ø(a) PRIVATE NONPROFIT ENTITIES.—
ø(1) BOARD.—In order for a private, nonprofit entity to be
considered to be an eligible entity for purposes of section
673(1), the entity shall administer the community services
block grant program through a tripartite board described in
paragraph (2) that fully participates in the development, plan-
ning, implementation, and evaluation of the program to serve
low-income communities.
ø(2) SELECTION AND COMPOSITION OF BOARD.—The members
of the board referred to in paragraph (1) shall be selected by
the entity and the board shall be composed so as to assure
that—
ø(A) 1⁄3 of the members of the board are elected public
officials, holding office on the date of selection, or their
representatives, except that if the number of such elected
officials reasonably available and willing to serve on the
board is less than 1⁄3 of the membership of the board,
membership on the board of appointive public officials or
their representatives may be counted in meeting such 1⁄3
requirement;
ø(B)(i) not fewer than 1⁄3 of the members are persons
chosen in accordance with democratic selection procedures
adequate to assure that these members are representative
of low-income individuals and families in the neighborhood
served; and
ø(ii) each representative of low-income individuals and
families selected to represent a specific neighborhood with-
in a community under clause (i) resides in the neighbor-
hood represented by the member; and
ø(C) the remainder of the members are officials or mem-
bers of business, industry, labor, religious, law enforce-
ment, education, or other major groups and interests in
the community served.
ø(b) PUBLIC ORGANIZATIONS.—In order for a public organization
to be considered to be an eligible entity for purposes of section
673(1), the entity shall administer the community services block
grant program through—
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ø(1) a tripartite board, which shall have members selected by
the organization and shall be composed so as to assure that not
fewer than 1⁄3 of the members are persons chosen in accord-
ance with democratic selection procedures adequate to assure
that these members—
ø(A) are representative of low-income individuals and
families in the neighborhood served;
ø(B) reside in the neighborhood served; and
ø(C) are able to participate actively in the development,
planning, implementation, and evaluation of programs
funded under this subtitle; or
ø(2) another mechanism specified by the State to assure deci-
sionmaking and participation by low-income individuals in the
development, planning, implementation, and evaluation of pro-
grams funded under this subtitle.
øSEC. 677. PAYMENTS TO INDIAN TRIBES.
ø(a) RESERVATION.—If, with respect to any State, the Secretary—
ø(1) receives a request from the governing body of an Indian
tribe or tribal organization within the State that assistance
under this subtitle be made directly to such tribe or organiza-
tion; and
ø(2) determines that the members of such tribe or tribal or-
ganization would be better served by means of grants made di-
rectly to provide benefits under this subtitle,
the Secretary shall reserve from amounts that would otherwise be
allotted to such State under section 675B for the fiscal year the
amount determined under subsection (b).
ø(b) DETERMINATION OF RESERVED AMOUNT.—The Secretary
shall reserve for the purpose of subsection (a) from amounts that
would otherwise be allotted to such State, not less than 100 percent
of an amount that bears the same ratio to the State allotment for
the fiscal year involved as the population of all eligible Indians for
whom a determination has been made under subsection (a) bears
to the population of all individuals eligible for assistance through
a community services block grant made under this subtitle in such
State.
ø(c) AWARDS.—The sums reserved by the Secretary on the basis
of a determination made under subsection (a) shall be made avail-
able by grant to the Indian tribe or tribal organization serving the
individuals for whom such a determination has been made.
ø(d) PLAN.—In order for an Indian tribe or tribal organization to
be eligible for a grant award for a fiscal year under this section,
the tribe or organization shall submit to the Secretary a plan for
such fiscal year that meets such criteria as the Secretary may pre-
scribe by regulation.
ø(e) DEFINITIONS.—In this section:
ø(1) INDIAN TRIBE; TRIBAL ORGANIZATION.—The terms ‘‘Indian
tribe’’ and ‘‘tribal organization’’ mean a tribe, band, or other or-
ganized group recognized in the State in which the tribe, band,
or group resides, or considered by the Secretary of the Interior,
to be an Indian tribe or an Indian organization for any pur-
pose.
ø(2) INDIAN.—The term ‘‘Indian’’ means a member of an In-
dian tribe or of a tribal organization.
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øSEC. 678. OFFICE OF COMMUNITY SERVICES.
ø(a) OFFICE.—The Secretary shall carry out the functions of this
subtitle through an Office of Community Services, which shall be
established in the Department of Health and Human Services. The
Office shall be headed by a Director.
ø(b) GRANTS, CONTRACTS, AND COOPERATIVE AGREEMENTS.—The
Secretary shall carry out functions of this subtitle through grants,
contracts, or cooperative agreements.
øSEC. 678A. TRAINING, TECHNICAL ASSISTANCE, AND OTHER ACTIVI-
TIES.
ø(a) ACTIVITIES.—
ø(1) IN GENERAL.—The Secretary shall use amounts reserved
in section 674(b)(2)—
ø(A) for training, technical assistance, planning, evalua-
tion, and performance measurement, to assist States in
carrying out corrective action activities and monitoring (to
correct programmatic deficiencies of eligible entities), and
for reporting and data collection activities, related to pro-
grams carried out under this subtitle; and
ø(B) to distribute amounts in accordance with subsection
(c).
ø(2) GRANTS, CONTRACTS, AND COOPERATIVE AGREEMENTS.—
The activities described in paragraph (1)(A) may be carried out
by the Secretary through grants, contracts, or cooperative
agreements with appropriate entities.
ø(b) TERMS AND TECHNICAL ASSISTANCE PROCESS.—The process
for determining the training and technical assistance to be carried
out under this section shall—
ø(1) ensure that the needs of eligible entities and programs
relating to improving program quality (including quality of fi-
nancial management practices) are addressed to the maximum
extent feasible; and
ø(2) incorporate mechanisms to ensure responsiveness to
local needs, including an ongoing procedure for obtaining input
from the national and State networks of eligible entities.
ø(c) DISTRIBUTION REQUIREMENT.—
ø(1) IN GENERAL.—The amounts reserved under section
674(b)(2)(A) for activities to be carried out under this sub-
section shall be distributed directly to eligible entities, organi-
zations, or associations described in paragraph (2) for the pur-
pose of improving program quality (including quality of finan-
cial management practices), management information and re-
porting systems, and measurement of program results, and for
the purpose of ensuring responsiveness to identified local
needs.
ø(2) ELIGIBLE ENTITIES, ORGANIZATIONS, OR ASSOCIATIONS.—
Eligible entities, organizations, or associations described in this
paragraph shall be eligible entities, or statewide or local orga-
nizations or associations, with demonstrated expertise in pro-
viding training to individuals and organizations on methods of
effectively addressing the needs of low-income families and
communities.
øSEC. 678B. MONITORING OF ELIGIBLE ENTITIES.
ø(a) IN GENERAL.—In order to determine whether eligible entities
meet the performance goals, administrative standards, financial
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76
management requirements, and other requirements of a State, the
State shall conduct the following reviews of eligible entities:
ø(1) A full onsite review of each such entity at least once
during each 3-year period.
ø(2) An onsite review of each newly designated entity imme-
diately after the completion of the first year in which such en-
tity receives funds through the community services block grant
program.
ø(3) Followup reviews including prompt return visits to eligi-
ble entities, and their programs, that fail to meet the goals,
standards, and requirements established by the State.
ø(4) Other reviews as appropriate, including reviews of enti-
ties with programs that have had other Federal, State, or local
grants (other than assistance provided under this subtitle) ter-
minated for cause.
ø(b) REQUESTS.—The State may request training and technical
assistance from the Secretary as needed to comply with the re-
quirements of this section.
ø(c) EVALUATIONS BY THE SECRETARY.—The Secretary shall con-
duct in several States in each fiscal year evaluations (including in-
vestigations) of the use of funds received by the States under this
subtitle in order to evaluate compliance with the provisions of this
subtitle, and especially with respect to compliance with section
676(b). The Secretary shall submit, to each State evaluated, a re-
port containing the results of such evaluations, and recommenda-
tions of improvements designed to enhance the benefit and impact
of the activities carried out with such funds for people in need. On
receiving the report, the State shall submit to the Secretary a plan
of action in response to the recommendations contained in the re-
port. The results of the evaluations shall be submitted annually to
the Chairperson of the Committee on Education and the Workforce
of the House of Representatives and the Chairperson of the Com-
mittee on Labor and Human Resources of the Senate as part of the
report submitted by the Secretary in accordance with section
678E(b)(2).
øSEC. 678C. CORRECTIVE ACTION; TERMINATION AND REDUCTION OF
FUNDING.
ø(a) DETERMINATION.—If the State determines, on the basis of a
final decision in a review pursuant to section 678B, that an eligible
entity fails to comply with the terms of an agreement, or the State
plan, to provide services under this subtitle or to meet appropriate
standards, goals, and other requirements established by the State
(including performance objectives), the State shall—
ø(1) inform the entity of the deficiency to be corrected;
ø(2) require the entity to correct the deficiency;
ø(3)(A) offer training and technical assistance, if appropriate,
to help correct the deficiency, and prepare and submit to the
Secretary a report describing the training and technical assist-
ance offered; or
ø(B) if the State determines that such training and technical
assistance are not appropriate, prepare and submit to the Sec-
retary a report stating the reasons for the determination;
ø(4)(A) at the discretion of the State (taking into account the
seriousness of the deficiency and the time reasonably required
to correct the deficiency), allow the entity to develop and imple-
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77
ment, within 60 days after being informed of the deficiency, a
quality improvement plan to correct such deficiency within a
reasonable period of time, as determined by the State; and
ø(B) not later than 30 days after receiving from an eligible
entity a proposed quality improvement plan pursuant to sub-
paragraph (A), either approve such proposed plan or specify
the reasons why the proposed plan cannot be approved; and
ø(5) after providing adequate notice and an opportunity for
a hearing, initiate proceedings to terminate the designation of
or reduce the funding under this subtitle of the eligible entity
unless the entity corrects the deficiency.
ø(b) REVIEW.—A determination to terminate the designation or
reduce the funding of an eligible entity is reviewable by the Sec-
retary. The Secretary shall, upon request, review such a determina-
tion. The review shall be completed not later than 90 days after the
Secretary receives from the State all necessary documentation re-
lating to the determination to terminate the designation or reduce
the funding. If the review is not completed within 90 days, the de-
termination of the State shall become final at the end of the 90th
day.
ø(c) DIRECT ASSISTANCE.—Whenever a State violates the assur-
ances contained in section 676(b)(8) and terminates or reduces the
funding of an eligible entity prior to the completion of the State
hearing described in that section and the Secretary’s review as re-
quired in subsection (b), the Secretary is authorized to provide fi-
nancial assistance under this subtitle to the eligible entity affected
until the violation is corrected. In such a case, the grant or allot-
ment for the State under section 675A or 675B for the earliest ap-
propriate fiscal year shall be reduced by an amount equal to the
funds provided under this subsection to such eligible entity.
øSEC. 678D. FISCAL CONTROLS, AUDITS, AND WITHHOLDING.
ø(a) FISCAL CONTROLS, PROCEDURES, AUDITS, AND INSPEC-
TIONS.—
ø(1) IN GENERAL.—A State that receives funds under this
subtitle shall—
ø(A) establish fiscal control and fund accounting proce-
dures necessary to assure the proper disbursal of and ac-
counting for Federal funds paid to the State under this
subtitle, including procedures for monitoring the funds
provided under this subtitle;
ø(B) ensure that cost and accounting standards of the
Office of Management and Budget apply to a recipient of
the funds under this subtitle;
ø(C) subject to paragraph (2), prepare, at least every
year, an audit of the expenditures of the State of amounts
received under this subtitle and amounts transferred to
carry out the purposes of this subtitle; and
ø(D) make appropriate books, documents, papers, and
records available to the Secretary and the Comptroller
General of the United States, or any of their duly author-
ized representatives, for examination, copying, or mechan-
ical reproduction on or off the premises of the appropriate
entity upon a reasonable request for the items.
ø(2) AUDITS.—
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78
ø(A) IN GENERAL.—Subject to subparagraph (B), each
audit required by subsection (a)(1)(C) shall be conducted
by an entity independent of any agency administering ac-
tivities or services carried out under this subtitle and shall
be conducted in accordance with generally accepted ac-
counting principles.
ø(B) SINGLE AUDIT REQUIREMENTS.—Audits shall be con-
ducted under this paragraph in the manner and to the ex-
tent provided in chapter 75 of title 31, United States Code
(commonly known as the ‘‘Single Audit Act Amendments of
1996’’).
ø(C) SUBMISSION OF COPIES.—Within 30 days after the
completion of each such audit in a State, the chief execu-
tive officer of the State shall submit a copy of such audit
to any eligible entity that was the subject of the audit at
no charge, to the legislature of the State, and to the Sec-
retary.
ø(3) REPAYMENTS.—The State shall repay to the United
States amounts found not to have been expended in accordance
with this subtitle or the Secretary may offset such amounts
against any other amount to which the State is or may become
entitled under this subtitle.
ø(b) WITHHOLDING.—
ø(1) IN GENERAL.—The Secretary shall, after providing ade-
quate notice and an opportunity for a hearing conducted within
the affected State, withhold funds from any State that does not
utilize the grant or allotment under section 675A or 675B in
accordance with the provisions of this subtitle, including the
assurances such State provided under section 676.
ø(2) RESPONSE TO COMPLAINTS.—The Secretary shall respond
in an expeditious and speedy manner to complaints of a sub-
stantial or serious nature that a State has failed to use funds
in accordance with the provisions of this subtitle, including the
assurances provided by the State under section 676. For pur-
poses of this paragraph, a complaint of a failure to meet any
one of the assurances provided under section 676 that con-
stitutes disregarding that assurance shall be considered to be
a complaint of a serious nature.
ø(3) INVESTIGATIONS.—Whenever the Secretary determines
that there is a pattern of complaints of failures described in
paragraph (2) from any State in any fiscal year, the Secretary
shall conduct an investigation of the use of funds received
under this subtitle by such State in order to ensure compliance
with the provisions of this subtitle.
øSEC. 678E. ACCOUNTABILITY AND REPORTING REQUIREMENTS.
ø(a) STATE ACCOUNTABILITY AND REPORTING REQUIREMENTS.—
ø(1) PERFORMANCE MEASUREMENT.—
ø(A) IN GENERAL.—By October 1, 2001, each State that
receives funds under this subtitle shall participate, and
shall ensure that all eligible entities in the State partici-
pate, in a performance measurement system, which may
be a performance measurement system for which the Sec-
retary facilitated development pursuant to subsection (b),
or an alternative system that the Secretary is satisfied
meets the requirements of subsection (b).
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ø(B) LOCAL AGENCIES.—The State may elect to have
local agencies that are subcontractors of the eligible enti-
ties under this subtitle participate in the performance
measurement system. If the State makes that election, ref-
erences in this section to eligible entities shall be consid-
ered to include the local agencies.
ø(2) ANNUAL REPORT.—Each State shall annually prepare
and submit to the Secretary a report on the measured perform-
ance of the State and the eligible entities in the State. Prior
to the participation of the State in the performance measure-
ment system, the State shall include in the report any informa-
tion collected by the State relating to such performance. Each
State shall also include in the report an accounting of the ex-
penditure of funds received by the State through the commu-
nity services block grant program, including an accounting of
funds spent on administrative costs by the State and the eligi-
ble entities, and funds spent by eligible entities on the direct
delivery of local services, and shall include information on the
number of and characteristics of clients served under this sub-
title in the State, based on data collected from the eligible enti-
ties. The State shall also include in the report a summary de-
scribing the training and technical assistance offered by the
State under section 678C(a)(3) during the year covered by the
report.
ø(b) SECRETARY’S ACCOUNTABILITY AND REPORTING REQUIRE-
MENTS.—
ø(1) PERFORMANCE MEASUREMENT.—The Secretary, in col-
laboration with the States and with eligible entities throughout
the Nation, shall facilitate the development of one or more
model performance measurement systems, which may be used
by the States and by eligible entities to measure their perform-
ance in carrying out the requirements of this subtitle and in
achieving the goals of their community action plans. The Sec-
retary shall provide technical assistance, including support for
the enhancement of electronic data systems, to States and to
eligible entities to enhance their capability to collect and report
data for such a system and to aid in their participation in such
a system.
ø(2) REPORTING REQUIREMENTS.—At the end of each fiscal
year beginning after September 30, 1999, the Secretary shall,
directly or by grant or contract, prepare a report containing—
ø(A) a summary of the planned use of funds by each
State, and the eligible entities in the State, under the com-
munity services block grant program, as contained in each
State plan submitted pursuant to section 676;
ø(B) a description of how funds were actually spent by
the State and eligible entities in the State, including a
breakdown of funds spent on administrative costs and on
the direct delivery of local services by eligible entities;
ø(C) information on the number of entities eligible for
funds under this subtitle, the number of low-income per-
sons served under this subtitle, and such demographic
data on the low-income populations served by eligible enti-
ties as is determined by the Secretary to be feasible;
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ø(D) a comparison of the planned uses of funds for each
State and the actual uses of the funds;
ø(E) a summary of each State’s performance results, and
the results for the eligible entities, as collected and sub-
mitted by the States in accordance with subsection (a)(2);
and
ø(F) any additional information that the Secretary con-
siders to be appropriate to carry out this subtitle, if the
Secretary informs the States of the need for such addi-
tional information and allows a reasonable period of time
for the States to collect and provide the information.
ø(3) SUBMISSION.—The Secretary shall submit to the Com-
mittee on Education and the Workforce of the House of Rep-
resentatives and the Committee on Labor and Human Re-
sources of the Senate the report described in paragraph (2),
and any comments the Secretary may have with respect to
such report. The report shall include definitions of direct and
administrative costs used by the Department of Health and
Human Services for programs funded under this subtitle.
ø(4) COSTS.—Of the funds reserved under section 674(b)(3),
not more than $350,000 shall be available to carry out the re-
porting requirements contained in paragraph (2).
øSEC. 678F. LIMITATIONS ON USE OF FUNDS.
ø(a) CONSTRUCTION OF FACILITIES.—
ø(1) LIMITATIONS.—Except as provided in paragraph (2),
grants made under this subtitle (other than amounts reserved
under section 674(b)(3)) may not be used by the State, or by
any other person with which the State makes arrangements to
carry out the purposes of this subtitle, for the purchase or im-
provement of land, or the purchase, construction, or permanent
improvement (other than low-cost residential weatherization or
other energy-related home repairs) of any building or other fa-
cility.
ø(2) WAIVER.—The Secretary may waive the limitation con-
tained in paragraph (1) upon a State request for such a waiver,
if the Secretary finds that the request describes extraordinary
circumstances to justify the purchase of land or the construc-
tion of facilities (or the making of permanent improvements)
and that permitting the waiver will contribute to the ability of
the State to carry out the purposes of this subtitle.
ø(b) POLITICAL ACTIVITIES.—
ø(1) TREATMENT AS A STATE OR LOCAL AGENCY.—For pur-
poses of chapter 15 of title 5, United States Code, any entity
that assumes responsibility for planning, developing, and co-
ordinating activities under this subtitle and receives assistance
under this subtitle shall be deemed to be a State or local agen-
cy. For purposes of paragraphs (1) and (2) of section 1502(a) of
such title, any entity receiving assistance under this subtitle
shall be deemed to be a State or local agency.
ø(2) PROHIBITIONS.—Programs assisted under this subtitle
shall not be carried on in a manner involving the use of pro-
gram funds, the provision of services, or the employment or as-
signment of personnel, in a manner supporting or resulting in
the identification of such programs with—
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81
ø(A) any partisan or nonpartisan political activity or any
political activity associated with a candidate, or contending
faction or group, in an election for public or party office;
ø(B) any activity to provide voters or prospective voters
with transportation to the polls or similar assistance in
connection with any such election; or
ø(C) any voter registration activity.
ø(3) RULES AND REGULATIONS.—The Secretary, after con-
sultation with the Office of Personnel Management, shall issue
rules and regulations to provide for the enforcement of this
subsection, which shall include provisions for summary suspen-
sion of assistance or other action necessary to permit enforce-
ment on an emergency basis.
ø(c) NONDISCRIMINATION.—
ø(1) IN GENERAL.—No person shall, on the basis of race,
color, national origin, or sex be excluded from participation in,
be denied the benefits of, or be subjected to discrimination
under, any program or activity funded in whole or in part with
funds made available under this subtitle. Any prohibition
against discrimination on the basis of age under the Age Dis-
crimination Act of 1975 (42 U.S.C. 6101 et seq.) or with respect
to an otherwise qualified individual with a disability as pro-
vided in section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794), or title II of the Americans with Disabilities Act
of 1990 (42 U.S.C. 12131 et seq.) shall also apply to any such
program or activity.
ø(2) ACTION OF SECRETARY.—Whenever the Secretary deter-
mines that a State that has received a payment under this
subtitle has failed to comply with paragraph (1) or an applica-
ble regulation, the Secretary shall notify the chief executive of-
ficer of the State and shall request that the officer secure com-
pliance. If within a reasonable period of time, not to exceed 60
days, the chief executive officer fails or refuses to secure com-
pliance, the Secretary is authorized to—
ø(A) refer the matter to the Attorney General with a rec-
ommendation that an appropriate civil action be insti-
tuted;
ø(B) exercise the powers and functions provided by title
VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et
seq.), the Age Discrimination Act of 1975 (42 U.S.C. 6101
et seq.), section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794), or title II of the Americans with Disabilities
Act of 1990 (42 U.S.C. 12131 et seq.), as may be applicable;
or
ø(C) take such other action as may be provided by law.
ø(3) ACTION OF ATTORNEY GENERAL.—When a matter is re-
ferred to the Attorney General pursuant to paragraph (2), or
whenever the Attorney General has reason to believe that the
State is engaged in a pattern or practice of discrimination in
violation of the provisions of this subsection, the Attorney Gen-
eral may bring a civil action in any appropriate United States
district court for such relief as may be appropriate, including
injunctive relief.
øSEC. 678G. DRUG AND CHILD SUPPORT SERVICES AND REFERRALS.
ø(a) DRUG TESTING AND REHABILITATION.—
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82
ø(1) IN GENERAL.—Nothing in this subtitle shall be construed
to prohibit a State from testing participants in programs, ac-
tivities, or services carried out or provided under this subtitle
for controlled substances. A State that conducts such testing
shall inform the participants who test positive for any of such
substances about the availability of treatment or rehabilitation
services and refer such participants for appropriate treatment
or rehabilitation services.
ø(2) ADMINISTRATIVE EXPENSES.—Any funds provided under
this subtitle expended for such testing shall be considered to
be expended for administrative expenses and shall be subject
to the limitation specified in section 675C(b)(2).
ø(3) DEFINITION.—In this subsection, the term ‘‘controlled
substance’’ has the meaning given the term in section 102 of
the Controlled Substances Act (21 U.S.C. 802).
ø(b) CHILD SUPPORT SERVICES AND REFERRALS.—During each fis-
cal year for which an eligible entity receives a grant under section
675C, such entity shall—
ø(1) inform custodial parents in single-parent families that
participate in programs, activities, or services carried out or
provided under this subtitle about the availability of child sup-
port services; and
ø(2) refer eligible parents to the child support offices of State
and local governments.
øSEC. 679. OPERATIONAL RULE.
ø(a) RELIGIOUS ORGANIZATIONS INCLUDED AS NONGOVERNMENTAL
PROVIDERS.—For any program carried out by the Federal Govern-
ment, or by a State or local government under this subtitle, the
government shall consider, on the same basis as other nongovern-
mental organizations, religious organizations to provide the assist-
ance under the program, so long as the program is implemented in
a manner consistent with the Establishment Clause of the first
amendment to the Constitution. Neither the Federal Government
nor a State or local government receiving funds under this subtitle
shall discriminate against an organization that provides assistance
under, or applies to provide assistance under, this subtitle, on the
basis that the organization has a religious character.
ø(b) RELIGIOUS CHARACTER AND INDEPENDENCE.—
ø(1) IN GENERAL.—A religious organization that provides as-
sistance under a program described in subsection (a) shall re-
tain its religious character and control over the definition, de-
velopment, practice, and expression of its religious beliefs.
ø(2) ADDITIONAL SAFEGUARDS.—Neither the Federal Govern-
ment nor a State or local government shall require a religious
organization—
ø(A) to alter its form of internal governance, except (for
purposes of administration of the community services block
grant program) as provided in section 676B; or
ø(B) to remove religious art, icons, scripture, or other
symbols;
in order to be eligible to provide assistance under a program
described in subsection (a).
ø(3) EMPLOYMENT PRACTICES.—A religious organization’s ex-
emption provided under section 702 of the Civil Rights Act of
1964 (42 U.S.C. 2000e–1) regarding employment practices shall
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83
not be affected by its participation in, or receipt of funds from,
programs described in subsection (a).
ø(c) LIMITATIONS ON USE OF FUNDS FOR CERTAIN PURPOSES.—No
funds provided directly to a religious organization to provide assist-
ance under any program described in subsection (a) shall be ex-
pended for sectarian worship, instruction, or proselytization.
ø(d) FISCAL ACCOUNTABILITY.—
ø(1) IN GENERAL.—Except as provided in paragraph (2), any
religious organization providing assistance under any program
described in subsection (a) shall be subject to the same regula-
tions as other nongovernmental organizations to account in ac-
cord with generally accepted accounting principles for the use
of such funds provided under such program.
ø(2) LIMITED AUDIT.—Such organization shall segregate gov-
ernment funds provided under such program into a separate
account. Only the government funds shall be subject to audit
by the government.
ø(e) TREATMENT OF ELIGIBLE ENTITIES AND OTHER INTERMEDIATE
ORGANIZATIONS.—If an eligible entity or other organization (re-
ferred to in this subsection as an ‘‘intermediate organization’’), act-
ing under a contract, or grant or other agreement, with the Federal
Government or a State or local government, is given the authority
under the contract or agreement to select nongovernmental organi-
zations to provide assistance under the programs described in sub-
section (a), the intermediate organization shall have the same du-
ties under this section as the government.
øSEC. 680. DISCRETIONARY AUTHORITY OF THE SECRETARY.
ø(a) GRANTS, CONTRACTS, ARRANGEMENTS, LOANS, AND GUARAN-
TEES.—
ø(1) IN GENERAL.—The Secretary shall, from funds reserved
under section 674(b)(3), make grants, loans, or guarantees to
States and public agencies and private, nonprofit organiza-
tions, or enter into contracts or jointly financed cooperative ar-
rangements with States and public agencies and private, non-
profit organizations (and for-profit organizations, to the extent
specified in paragraph (2)(E)) for each of the objectives de-
scribed in paragraphs (2) through (4).
ø(2) COMMUNITY ECONOMIC DEVELOPMENT.—
ø(A) ECONOMIC DEVELOPMENT ACTIVITIES.—The Sec-
retary shall make grants described in paragraph (1) on a
competitive basis to private, nonprofit organizations that
are community development corporations to provide tech-
nical and financial assistance for economic development
activities designed to address the economic needs of low-
income individuals and families by creating employment
and business development opportunities.
ø(B) CONSULTATION.—The Secretary shall exercise the
authority provided under subparagraph (A) after consulta-
tion with other relevant Federal officials.
ø(C) GOVERNING BOARDS.—For a community develop-
ment corporation to receive funds to carry out this para-
graph, the corporation shall be governed by a board that
shall consist of residents of the community and business
and civic leaders and shall have as a principal purpose
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84
planning, developing, or managing low-income housing or
community development projects.
ø(D) GEOGRAPHIC DISTRIBUTION.—In making grants to
carry out this paragraph, the Secretary shall take into con-
sideration the geographic distribution of funding among
States and the relative proportion of funding among rural
and urban areas.
ø(E) RESERVATION.—Of the amounts made available to
carry out this paragraph, the Secretary may reserve not
more than 1 percent for each fiscal year to make grants to
private, nonprofit organizations or to enter into contracts
with private, nonprofit or for-profit organizations to pro-
vide technical assistance to aid community development
corporations in developing or implementing activities fund-
ed to carry out this paragraph and to evaluate activities
funded to carry out this paragraph.
ø(3) RURAL COMMUNITY DEVELOPMENT ACTIVITIES.—The Sec-
retary shall provide the assistance described in paragraph (1)
for rural community development activities, which shall in-
clude providing—
ø(A) grants to private, nonprofit corporations to enable
the corporations to provide assistance concerning home re-
pair to rural low-income families and concerning planning
and developing low-income rural rental housing units; and
ø(B) grants to multistate, regional, private, nonprofit or-
ganizations to enable the organizations to provide training
and technical assistance to small, rural communities con-
cerning meeting their community facility needs.
ø(4) NEIGHBORHOOD INNOVATION PROJECTS.—The Secretary
shall provide the assistance described in paragraph (1) for
neighborhood innovation projects, which shall include pro-
viding grants to neighborhood-based private, nonprofit organi-
zations to test or assist in the development of new approaches
or methods that will aid in overcoming special problems identi-
fied by communities or neighborhoods or otherwise assist in
furthering the purposes of this subtitle, and which may include
providing assistance for projects that are designed to serve low-
income individuals and families who are not being effectively
served by other programs.
ø(b) EVALUATION.—The Secretary shall require all activities re-
ceiving assistance under this section to be evaluated for their effec-
tiveness. Funding for such evaluations shall be provided as a stat-
ed percentage of the assistance or through a separate grant award-
ed by the Secretary specifically for the purpose of evaluation of a
particular activity or group of activities.
ø(c) ANNUAL REPORT.—The Secretary shall compile an annual re-
port containing a summary of the evaluations required in sub-
section (b) and a listing of all activities assisted under this section.
The Secretary shall annually submit the report to the Chairperson
of the Committee on Education and the Workforce of the House of
Representatives and the Chairperson of the Committee on Labor
and Human Resources of the Senate.
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øSEC. 681. COMMUNITY FOOD AND NUTRITION PROGRAMS.
ø(a) GRANTS.—The Secretary may, through grants to public and
private, nonprofit agencies, provide for community-based, local,
statewide, and national programs—
ø(1) to coordinate private and public food assistance re-
sources, wherever the grant recipient involved determines such
coordination to be inadequate, to better serve low-income popu-
lations;
ø(2) to assist low-income communities to identify potential
sponsors of child nutrition programs and to initiate such pro-
grams in underserved or unserved areas; and
ø(3) to develop innovative approaches at the State and local
level to meet the nutrition needs of low-income individuals.
ø(b) ALLOTMENTS AND DISTRIBUTION OF FUNDS.—
ø(1) NOT TO EXCEED $6,000,000 IN APPROPRIATIONS.—Of the
amount appropriated for a fiscal year to carry out this section
(but not to exceed $6,000,000), the Secretary shall distribute
funds for grants under subsection (a) as follows:
ø(A) ALLOTMENTS.—From a portion equal to 60 percent
of such amount (but not to exceed $3,600,000), the Sec-
retary shall allot for grants to eligible agencies for state-
wide programs in each State the amount that bears the
same ratio to such portion as the low-income and unem-
ployed population of such State bears to the low-income
and unemployed population of all the States.
ø(B) COMPETITIVE GRANTS.—From a portion equal to 40
percent of such amount (but not to exceed $2,400,000), the
Secretary shall make grants on a competitive basis to eligi-
ble agencies for local and statewide programs.
ø(2) GREATER AVAILABLE APPROPRIATIONS.—Any amounts ap-
propriated for a fiscal year to carry out this section in excess
of $6,000,000 shall be allotted as follows:
ø(A) ALLOTMENTS.—The Secretary shall use 40 percent
of such excess to allot for grants under subsection (a) to el-
igible agencies for statewide programs in each State an
amount that bears the same ratio to 40 percent of such ex-
cess as the low-income and unemployed population of such
State bears to the low-income and unemployed population
of all the States.
ø(B) COMPETITIVE GRANTS FOR LOCAL AND STATEWIDE
PROGRAMS.—The Secretary shall use 40 percent of such ex-
cess to make grants under subsection (a) on a competitive
basis to eligible agencies for local and statewide programs.
ø(C) COMPETITIVE GRANTS FOR NATIONWIDE PROGRAMS.—
The Secretary shall use the remaining 20 percent of such
excess to make grants under subsection (a) on a competi-
tive basis to eligible agencies for nationwide programs, in-
cluding programs benefiting Indians, as defined in section
677, and migrant or seasonal farmworkers.
ø(3) ELIGIBILITY FOR ALLOTMENTS FOR STATEWIDE PRO-
GRAMS.—To be eligible to receive an allotment under para-
graph (1)(A) or (2)(A), an eligible agency shall demonstrate
that the proposed program is statewide in scope and represents
a comprehensive and coordinated effort to alleviate hunger
within the State.
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86
ø(4) MINIMUM ALLOTMENTS FOR STATEWIDE PROGRAMS.—
ø(A) IN GENERAL.—From the amounts allotted under
paragraphs (1)(A) and (2)(A), the minimum total allotment
for each State for each fiscal year shall be—
ø(i) $15,000 if the total amount appropriated to
carry out this section is not less than $7,000,000 but
less than $10,000,000;
ø(ii) $20,000 if the total amount appropriated to
carry out this section is not less than $10,000,000 but
less than $15,000,000; or
ø(iii) $30,000 if the total amount appropriated to
carry out this section is not less than $15,000,000.
ø(B) DEFINITION.—In this paragraph, the term ‘‘State’’
does not include Guam, American Samoa, the United
States Virgin Islands, and the Commonwealth of the
Northern Mariana Islands.
ø(5) MAXIMUM GRANTS.—From funds made available under
paragraphs (1)(B) and (2)(B) for any fiscal year, the Secretary
may not make grants under subsection (a) to an eligible agency
in an aggregate amount exceeding $50,000. From funds made
available under paragraph (2)(C) for any fiscal year, the Sec-
retary may not make grants under subsection (a) to an eligible
agency in an aggregate amount exceeding $300,000.
ø(c) REPORT.—For each fiscal year, the Secretary shall prepare
and submit, to the Committee on Education and the Workforce of
the House of Representatives and the Committee on Labor and
Human Resources of the Senate, a report concerning the grants
made under this section. Such report shall include—
ø(1) a list of grant recipients;
ø(2) information on the amount of funding awarded to each
grant recipient; and
ø(3) a summary of the activities performed by the grant re-
cipients with funding awarded under this section and a de-
scription of the manner in which such activities meet the objec-
tives described in subsection (a).
ø(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section such sums as may be
necessary for each of fiscal years 1999 through 2003.
øSEC. 682. NATIONAL OR REGIONAL PROGRAMS DESIGNED TO PRO-
VIDE INSTRUCTIONAL ACTIVITIES FOR LOW-INCOME
YOUTH.
ø(a) GENERAL AUTHORITY.—The Secretary is authorized to make
a grant to an eligible service provider to administer national or re-
gional programs to provide instructional activities for low-income
youth. In making such a grant, the Secretary shall give priority to
eligible service providers that have a demonstrated ability to oper-
ate such a program.
ø(b) PROGRAM REQUIREMENTS.—Any instructional activity carried
out by an eligible service provider receiving a grant under this sec-
tion shall be carried out on the campus of an institution of higher
education (as defined in section 1201(a) of the Higher Education
Act of 1965 (20 U.S.C. 1141(a))) and shall include—
ø(1) access to the facilities and resources of such an institu-
tion;
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87
ø(2) an initial medical examination and follow-up referral or
treatment, without charge, for youth during their participation
in such activity;
ø(3) at least one nutritious meal daily, without charge, for
participating youth during each day of participation;
ø(4) high quality instruction in a variety of sports (that shall
include swimming and that may include dance and any other
high quality recreational activity) provided by coaches and
teachers from institutions of higher education and from ele-
mentary and secondary schools (as defined in section 8101 of
the Elementary and Secondary Education Act of 1965); and
ø(5) enrichment instruction and information on matters re-
lating to the well-being of youth, to include educational oppor-
tunities and information on study practices, education for the
prevention of drug and alcohol abuse, and information on
health and nutrition, career opportunities, and family and job
responsibilities.
ø(c) ADVISORY COMMITTEE; PARTNERSHIPS.—The eligible service
provider shall, in each community in which a program is funded
under this section—
ø(1) ensure that—
ø(A) a community-based advisory committee is estab-
lished, with representatives from local youth, family, and
social service organizations, schools, entities providing
park and recreation services, and other community-based
organizations serving high-risk youth; or
ø(B) an existing community-based advisory board, com-
mission, or committee with similar membership is utilized
to serve as the committee described in subparagraph (A);
and
ø(2) enter into formal partnerships with youth-serving orga-
nizations or other appropriate social service entities in order to
link program participants with year-round services in their
home communities that support and continue the objectives of
this subtitle.
ø(d) ELIGIBLE PROVIDERS.—A service provider that is a national
private, nonprofit organization, a coalition of such organizations, or
a private, nonprofit organization applying jointly with a business
concern shall be eligible to apply for a grant under this section if—
ø(1) the applicant has demonstrated experience in operating
a program providing instruction to low-income youth;
ø(2) the applicant agrees to contribute an amount (in cash or
in kind, fairly evaluated) of not less than 25 percent of the
amount requested, for the program funded through the grant;
ø(3) the applicant agrees to use no funds from a grant au-
thorized under this section for administrative expenses; and
ø(4) the applicant agrees to comply with the regulations or
program guidelines promulgated by the Secretary for use of
funds made available through the grant.
ø(e) APPLICATION PROCESS.—To be eligible to receive a grant
under this section, a service provider shall submit to the Secretary,
for approval, an application at such time, in such manner, and con-
taining such information as the Secretary may require.
ø(f) PROMULGATION OF REGULATIONS OR PROGRAM GUIDELINES.—
The Secretary shall promulgate regulations or program guidelines
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88
to ensure funds made available through a grant made under this
section are used in accordance with the objectives of this subtitle.
ø(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated $15,000,000 for each of fiscal years 1999
through 2003 for grants to carry out this section.¿
Subtitle B—Community Services Block
Grant Program
SEC. 671. SHORT TITLE.
This subtitle may be cited as the ‘‘Community Services Block
Grant Act’’.
SEC. 672. PURPOSES.
The purposes of this subtitle are—
(1) to reduce poverty in the United States by supporting the
activities of community action agencies and other community
services network organizations that improve the economic secu-
rity of low-income individuals and families and create new eco-
nomic opportunities in the communities where they live; and
(2) to accomplish the purposes described in paragraph (1)
by—
(A) strengthening community capabilities for identifying
poverty conditions and opportunities to alleviate such con-
ditions;
(B) empowering residents of the low-income communities
served to respond to the unique problems and needs in their
communities through their maximum feasible participation
in advising, planning, and evaluating the programs,
projects, and services funded under this subtitle;
(C) using innovative community-based approaches that
produce a measurable impact on the causes and effects of
poverty, including whole family approaches that create op-
portunities for, and address the needs of, parents and chil-
dren together;
(D) coordinating Federal, State, local, and other assist-
ance, including private resources, related to the reduction of
poverty so that resources can be used in a manner respon-
sive to local needs and conditions; and
(E) broadening the resources directed to the elimination
of poverty, so as to promote partnerships that include—
(i) private, religious, charitable, and neighborhood-
based organizations; and
(ii) individuals, businesses, labor organizations, pro-
fessional organizations, and other organizations en-
gaged in expanding opportunities for all individuals.
SEC. 673. DEFINITIONS.
In this subtitle:
(1) AGENCY-WIDE STRATEGIC PLAN.—The term ‘‘agency-wide
strategic plan’’ means a plan that has been adopted by an eligi-
ble entity in the previous 5 years and establishes goals that in-
clude meeting needs identified by the entity in consultation with
residents of the community through a process of comprehensive
community needs assessment.
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(2) POVERTY LINE.—The term ‘‘poverty line’’ means the poverty
guideline calculated by the Secretary from the most recent data
available from the Bureau of the Census. The Secretary shall
revise the poverty line annually (or at any shorter interval the
Secretary determines to be feasible and desirable). The required
revision shall be accomplished by multiplying the official pov-
erty thresholds from the Bureau of the Census by the percentage
change in the Consumer Price Index for All Urban Consumers
during the annual or other interval immediately preceding the
time at which the revision is made.
(3) COMMUNITY ACTION AGENCY.—The term ‘‘community ac-
tion agency’’ means an eligible entity (which meets the require-
ments of paragraph (1) or (2), as appropriate, of section 680(c))
that delivers multiple programs, projects, and services to a vari-
ety of low-income individuals and families.
(4) COMMUNITY ACTION PLAN.—The term ‘‘community action
plan’’ means a detailed plan, including a budget, that is adopt-
ed by an eligible entity, for expenditures of funds appropriated
for a fiscal year under this subtitle for the activities supported
directly or indirectly by such funds.
(5) COMMUNITY SERVICES NETWORK ORGANIZATION.—The
term ‘‘community services network organization’’ means any of
the following organizations funded under this subtitle:
(A) A grantee.
(B) An eligible entity.
(C) A Tribal grantee.
(D) An association with a membership composed pri-
marily of grantees, eligible entities, Tribal grantees, or as-
sociations of grantees, eligible entities, or Tribal grantees.
(6) DEPARTMENT.—The term ‘‘Department’’ means the Depart-
ment of Health and Human Services.
(7) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means an en-
tity—
(A) that is an eligible entity described in section 673(1)
of the Community Services Block Grant Act (as in effect im-
mediately before the date of the enactment of the Commu-
nity Services Block Grant Modernization Act of 2022) as of
the day before such date of enactment, or has been des-
ignated by the process described in section 680(a) (includ-
ing an organization serving migrant or seasonal farm-
workers that is so described or designated); and
(B) that has a tripartite board described in paragraph (1)
or (2), as appropriate, of section 680(c).
(8) EVIDENCE-BASED PRACTICE.—The term ‘‘evidence-based
practice’’ means an activity, strategy, or intervention that—
(A) demonstrates a statistically significant effect on im-
proving relevant outcomes based on at least one well-de-
signed and well-implemented experimental or quasi-experi-
mental study, or at least one well-designed and well-imple-
mented correlational study with statistical controls for se-
lection bias, and includes ongoing efforts to examine the ef-
fects of such activity, strategy, or intervention; or
(B) demonstrates a rationale based on high-quality re-
search findings or positive evaluation that such activity,
strategy, or intervention is likely to improve relevant out-
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90
comes, and includes ongoing efforts to examine the effects
of such activity, strategy, or intervention.
(9) GRANTEE.—The term ‘‘grantee’’ means a recipient of a
grant under section 675 or 676.
(10) PRIVATE, NONPROFIT ORGANIZATION.—The term ‘‘private,
nonprofit organization’’ means a domestic organization that
is—
(A) described in section 501(c)(3) of the Internal Revenue
Code of 1986 and exempt from taxation under section
501(a) of such Code; and
(B) described in paragraph (1) or (2) of section 509(a) of
the Internal Revenue Code of 1986.
(11) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of Health and Human Services.
(12) SERVICE AREA.—The term ‘‘service area’’ means the
unique geographic area which the State has designated as the
area to be served by an eligible entity with funding under sec-
tion 679(a)(1).
(13) STATE.—The term ‘‘State’’ means any of the several
States, the District of Columbia, Puerto Rico, Guam, American
Samoa, the United States Virgin Islands, or the Commonwealth
of the Northern Mariana Islands.
(14) TRIBAL GRANTEE.—The term ‘‘Tribal grantee’’ means an
Indian Tribe or Tribal organization, as defined in section
677(a), that receives a grant under section 677(c).
SEC. 674. AUTHORIZATION OF COMMUNITY SERVICES BLOCK GRANT
PROGRAM.
(a) AUTHORIZATION OF PROGRAM.—The Secretary is authorized to
carry out a community services block grant program and to make
grants through the program, under sections 675 and 676, to States
to support local community action plans carried out by eligible enti-
ties to reduce poverty in the communities served by such entities.
(b) AUTHORITY OF SECRETARY.—The Secretary is authorized to
carry out other community programs described in section 690.
SEC. 675. GRANTS TO TERRITORIES.
(a) APPORTIONMENT.—The Secretary shall apportion the amount
reserved under section 691(c)(1) for each fiscal year on the basis of
need, based on the most recent applicable data available from the
Bureau of the Census to account for poverty, to eligible jurisdictions
among Guam, American Samoa, the United States Virgin Islands,
and the Commonwealth of the Northern Mariana Islands.
(b) GRANTS.—The Secretary shall make a grant to each eligible
jurisdiction to which subsection (a) applies for the amount appor-
tioned under subsection (a).
(c) PLANS FOR APPORTIONMENT TO TERRITORIES.—No later than
six months after the enactment of this Act, the Secretary shall make
publicly available the Department’s plan for apportioning funds
among territories, including factors that contribute to the calcula-
tion of need and methodology for calculating the apportionment for
each territory. The Secretary must make publicly available any up-
dates or changes to this plan no less frequently than any time new
applicable data are available from the Bureau of Census.
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SEC. 676. ALLOTMENTS AND GRANTS TO STATES.
(a) ALLOTMENTS IN GENERAL.—From the amount appropriated
under section 691(a) for each fiscal year and remaining after the
Secretary makes the reservations required by section 691(c), the Sec-
retary shall allot to each eligible State, subject to section 677, an
amount that bears the same ratio to such remaining amount as the
amount received by the State for fiscal year 1981 under section 221
of the Economic Opportunity Act of 1964 bore to the total amount
received by all States for fiscal year 1981 under such section, except
as provided in subsection (b).
(b) MINIMUM ALLOTMENTS.—
(1) IN GENERAL.—The Secretary shall allot to each State not
less than 1⁄2 of 1 percent of the amount appropriated under sec-
tion 691(a) for such fiscal year and remaining after the Sec-
retary makes the reservations required by section 691(c).
(2) YEARS WITH GREATER AVAILABLE FUNDS.—Notwith-
standing paragraph (1), if the amount appropriated under sec-
tion 691(a) for a fiscal year and remaining after the Secretary
makes the reservations required by section 691(c) exceeds
$900,000,000, no State shall receive under this section less than
3⁄4 of 1 percent of the remaining amount.
(c) GRANTS AND PAYMENTS.—Subject to section 677, the Secretary
shall make grants to eligible States for the allotments described in
subsections (a) and (b). The Secretary shall make payments for the
grants in accordance with section 6503(a) of title 31, United States
Code. The Secretary shall allocate the amounts allotted under sub-
sections (a) and (b) on a quarterly basis at a minimum, notify the
States of their respective allocations, and make each State’s first al-
location amount in a fiscal year available for expenditure by the
State no later than 30 days after receipt of an approved apportion-
ment from the Office of Management and Budget and, for subse-
quent allocation amounts in the fiscal year, not later than 30 days
after the start of the period for which the Secretary is allocating the
funds.
(d) DEFINITION.—In this section, the term ‘‘State’’ does not include
Guam, American Samoa, the United States Virgin Islands, and the
Commonwealth of the Northern Mariana Islands.
SEC. 677. PAYMENTS TO INDIAN TRIBES.
(a) DEFINITIONS.—In this section:
(1) INDIAN.—The term ‘‘Indian’’ means a member of an In-
dian Tribe or Tribal organization.
(2) INDIAN TRIBE OR TRIBAL ORGANIZATION.—The term ‘‘In-
dian Tribe or Tribal organization’’ means a Tribe, band, or
other organized group recognized in the State in which the
Tribe, band, or group resides, or considered by the Secretary of
the Interior to be an Indian Tribe or an Indian organization for
any purpose.
(b) RESERVATION.—
(1) APPLICATION.—Paragraph (2) shall apply only if, with re-
spect to any State, the Secretary—
(A) receives a request from the governing body of an In-
dian Tribe or Tribal organization in such State that assist-
ance under this subtitle be made available directly to such
Indian Tribe or Tribal organization; and
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92
(B) determines that the members of such Indian Tribe or
Tribal organization would be better served by means of
grants made directly to such Indian Tribe or Tribal organi-
zation to provide benefits under this subtitle.
(2) AMOUNT.—The Secretary shall reserve from amounts al-
lotted to a State under section 676 for a fiscal year not less than
the amount that bears the same ratio to the State allotment for
the fiscal year as the population of all eligible Indians in that
particular State for whom a determination has been made
under paragraph (1) bears to the population of all individuals
eligible for assistance through a grant made under section 676
to such State.
(c) AWARDS.—The amount reserved by the Secretary on the basis
of a determination made under subsection (b)(1)(B) shall be made
available by grant to the Indian Tribe or Tribal organization serv-
ing the Indians for whom the determination has been made under
subsection (b)(1)(B).
(d) PLAN.—In order for an Indian Tribe or Tribal organization to
be eligible for a grant award for a fiscal year under this section, the
Indian Tribe or Tribal organization shall submit to the Secretary
a plan for such fiscal year that meets such criteria as the Secretary
may prescribe by regulation.
(e) ALTERNATIVE PERFORMANCE MEASUREMENT SYSTEM.—The
Secretary may implement alternative requirements for implementa-
tion by an Indian Tribe or Tribal Organization of the requirements
of section 686(a).
SEC. 678. STATE PLANS AND APPLICATIONS; COMMUNITY ACTION
PLANS AND APPLICATIONS.
(a) STATE LEAD AGENCY.—
(1) DESIGNATION.—The chief executive officer of a State desir-
ing to receive a grant under section 675 or 676 shall designate,
in an application submitted to the Secretary under subsection
(b), an appropriate State agency that agrees to comply with the
requirements of paragraph (2), to act as a lead agency for pur-
poses of carrying out State activities under this subtitle.
(2) DUTIES OF STATE LEAD AGENCIES.—The State lead agen-
cy—
(A) shall be authorized by the chief executive officer to
convene State agencies and coordinate information and ac-
tivities funded under this subtitle;
(B) shall develop the State plan to be submitted to the
Secretary under subsection (b), which shall be based pri-
marily on the community action plans of eligible entities,
submitted to the State as a condition of receiving funding
under this subtitle;
(C) may revise an existing State plan for submission to
the Secretary, if considered a major revision under criteria
established by the Secretary in regulations required under
section 689(a)(1));
(D) in conjunction with the development or revision of the
State plan as required under subsection (b)—
(i) shall hold at least 1 hearing in the State on the
proposed plan or a proposed major revision to a plan
to provide to the public an opportunity to comment on
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the public record on the proposed use and distribution
of funds under the plan;
(ii) not less than 15 days before the hearing, shall
distribute notice of the hearing and a copy of the pro-
posed plan or major plan revision statewide to the pub-
lic and directly to the chief executive officer and the
chairperson of the board of each of the eligible entities
(or designees) and other community services network
organizations; and
(iii) in the case of any proposed plan revision, with-
out regard to whether it is a major revision, shall no-
tify and distribute a copy of the proposed revision
statewide directly to the chief executive officer and the
chairperson of the board of each of the eligible entities
(or designees) and other community services network
organizations, before submission of such proposed revi-
sion to the Secretary; and
(E) at least every 3 years, in conjunction with the devel-
opment of the State plan, shall hold at least 1 legislative
hearing.
(b) STATE APPLICATION FOR STATE PROGRAM AND STATE PLAN.—
Beginning with the first fiscal year following the transition period
described in section 3 of the Community Services Block Grant Mod-
ernization Act of 2022, to be eligible to receive a grant under section
675 or 676, a State shall prepare and submit to the Secretary for
approval an application containing a State plan covering a period
of not more than 2 fiscal years. The application shall be submitted
not later than 60 days before the beginning of the first fiscal year
covered by the plan, and shall contain such information as the Sec-
retary shall require, including—
(1) a description of the manner in which funds made avail-
able through the grant under section 675 or 676 will be used
to carry out the State activities described in section 679(b) and
the State’s community action plans;
(2) a description summarizing the community action plans of
the eligible entities serving the State;
(3) an assurance that the State and all eligible entities in the
State will participate in a performance measurement system
under section 686(a)(1)(A);
(4) a plan for the State’s oversight of eligible entities;
(5) an assurance that the State will make payments to eligible
entities in accordance with section 679(a)(2);
(6) an assurance that no eligible entity in the State that re-
ceived, in the previous fiscal year, funding through a grant
made under section 675 or 676 will have funding reduced below
the proportional share of funding the entity received from the
State in the previous fiscal year, or eliminated, or its designa-
tion as an eligible entity terminated, unless, after providing the
affected entity (or entities, as applicable) with notice and an op-
portunity for a hearing on the record, the State determines that
cause exists for the reduction or elimination of funding or for
termination of such designation, subject to review by the Sec-
retary as provided in section 684(c); and—
(A) in the case of failure of an eligible entity to comply
with the terms of a corrective action plan relating to correc-
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94
tion of a serious deficiency, except according to the proce-
dures set forth in section 684(b); and
(B) for purposes of this subsection, the term ‘‘cause’’
means—
(i) the failure of an eligible entity to comply with the
terms of a corrective action plan relating to correction
of a serious deficiency as described in subsection
684(b); or
(ii) a statewide proportional distribution of funds
provided through a community services block grant
under this subtitle to respond to—
(I) the results of the most recently available cen-
sus or other appropriate demographic data;
(II) severe economic dislocation; or
(III) the designation of an eligible entity to serve
a geographic area that has been unserved for at
least the previous 5 years;
(7) an assurance that each eligible entity serving the State
has established procedures that permit a low-income individual
or organization to petition for adequate representation of such
individuals or organizations, respectively, on the board of the
eligible entity;
(8) a description of outcome measures to be used to measure
State and eligible entity performance in achieving the goals of
the State plan and the community action plans, respectively;
(9) an assurance that the State will develop a policy on board
vacancies in accordance with section 680(c)(3) and provide
guidance to assist eligible entities in filling board vacancies;
and
(10) an assurance that the State and the eligible entities in
the State will coordinate, and establish linkages between, gov-
ernmental and other social services programs to assure the ef-
fective delivery of such services to low-income individuals and
to avoid duplication of such services, and a description of how
the State and the eligible entities will coordinate the provision
of employment and training activities, as defined in section 3
of the Workforce Innovation and Opportunity Act, in the State
and in communities with entities providing activities through
statewide and local workforce development systems under such
Act.
(c) APPROVAL.—The Secretary shall notify the chief executive offi-
cer of each State submitting an application containing a State plan
under this section of the approval, disapproval, or approval in part,
of the application, not later than 60 days after receiving the applica-
tion. In the event of a full or partial disapproval, the Secretary’s no-
tification shall include a description of changes necessary for final
approval. In the event of a partial approval, the Secretary may
allow grantee use of funds for activities included in the portions of
the plan which the Secretary has approved. In the event a State ap-
plication fails to be approved in whole or in part before the end of
the third month of the period covered by such plan the Secretary
may award funding as specified in section 684(a)(5)(B).
(d) PUBLIC INSPECTION.—Each plan and major revision to a State
plan prepared under this section shall be distributed for public in-
spection and comment. A hearing on such plan or major revision
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95
shall be held as required under subparagraphs (C) and (D) of sub-
section (a)(2), but a State application for merger, combination, or
privatization of entities under section 680(b) shall not be considered
a major revision.
(e) ELIGIBLE ENTITY APPLICATION AND COMMUNITY ACTION
PLAN.—Beginning with the first fiscal year following the transition
period described in section 3 of the Community Services Block
Grant Modernization Act of 2022, to be eligible to receive a subgrant
under section 679(a), each eligible entity shall prepare and submit
to the State an application containing a community action plan or
plans covering a period of not more than 2 fiscal years. Such appli-
cation shall be submitted in a reasonable and timely manner as re-
quired by the State. The application shall contain information on
the intended implementation of the eligible entity’s activities, includ-
ing demonstrating how the activities will—
(1) meet needs identified in the most recent comprehensive
community needs assessment which has been conducted in the
previous 3 years and which may be coordinated with commu-
nity needs assessments conducted for other programs; and
(2) achieve the purposes of this subtitle through programs,
projects, and services.
SEC. 679. STATE AND LOCAL USES OF FUNDS.
(a) STATE SUBGRANTS TO ELIGIBLE ENTITIES AND OTHER ORGANI-
ZATIONS.—
(1) IN GENERAL.—A State that receives a grant under section
675 or 676 shall use not less than 90 percent to make subgrants
to eligible entities that enable the entities to implement pro-
grams, projects, and services for a purpose described in section
672.
(2) OBLIGATIONAL REQUIREMENTS.—
(A) DATE OF OBLIGATION.—The State shall obligate the
funds for subgrants described in paragraph (1) and make
such subgrants available for expenditure by eligible entities
not later than the later of—
(i) the 30th day after the date on which the State re-
ceives from the Secretary a notice of funding avail-
ability for the State’s application under section 678 for
a first or subsequent allocation for a fiscal year; or
(ii) the first day of the State program year for which
funds are to be expended under the State application.
(B) EXCEPTION.—If funds are appropriated to carry out
this subtitle for less than a full fiscal year, a State may re-
quest an exception from the Secretary from the requirement
to make subgrants available for expenditure by eligible en-
tities in accordance with subparagraph (A), except that a
State may not accumulate more than one fiscal quarter’s
worth of funding without making such funds available for
expenditure by eligible entities.
(C) AVAILABILITY.—Funds allocated to eligible entities
through subgrants made under paragraph (1) for a fiscal
year shall be available for obligation by the eligible entity
during that fiscal year and the succeeding fiscal year.
(b) STATEWIDE ACTIVITIES.—
(1) USE OF REMAINDER.—
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(A) IN GENERAL.—A State that receives a grant under sec-
tion 675 or 676 shall, after carrying out subsection (a), use
the remainder of the grant funds for activities described in
the State’s application under section 678(b) as described in
subparagraph (B) and for administrative expenses subject
to the limitations in paragraph (2).
(B) TRAINING AND TECHNICAL ASSISTANCE.—After apply-
ing subsection (a), the State may use the remaining grant
funds for the purposes of—
(i) providing to eligible entities training and tech-
nical assistance and resources to respond to statewide
or regional conditions that create economic insecurity,
including emergency conditions;
(ii) supporting professional development activities for
eligible entities that enhance the skills of their local
personnel (including members of the board of directors
of such entities) in organizational management, service
delivery, and program development and management,
giving priority to activities carried out through part-
nerships of such entities with institutions of higher
education;
(iii) supporting information and communication re-
sources for the comprehensive community needs assess-
ments described in section 678(e)(1);
(iv) supporting performance measurement systems
consistent with the requirements of section 686;
(v) promoting coordination and cooperation among
eligible entities in the State, including supporting ac-
tivities of a statewide association of community services
network organizations;
(vi) providing training and technical assistance and
resources to assist eligible entities in building and
using evidence of effectiveness in reducing poverty con-
ditions, including entities participating in or proposing
to participate in the Community Action Innovations
Program established under section 682(a)(2);
(vii) supporting efforts of eligible entities to identify
and respond to physical and behavioral health chal-
lenges (including substance use disorders) experienced
by low-income individuals, families, and communities;
and
(viii) analyzing the distribution of funds made avail-
able under this subtitle within the State to determine
if such funds have been targeted to the areas of great-
est need.
(2) ADMINISTRATIVE CAP.—
(A) LIMITATION.—Of the amounts remaining after the re-
quired funding for subgrants described under subsection
(a)(1), a State shall not spend more than 5 percent of its
grant under section 675 or 676 for administrative expenses.
(B) DEFINITION.—In this paragraph, the term ‘‘adminis-
trative expenses’’—
(i) means the costs incurred by the State’s lead agen-
cy for carrying out planning and management activi-
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97
ties, including monitoring, oversight, and reporting as
required by this Act; and
(ii) does not include the cost of activities conducted
under paragraph (1)(B) other than monitoring.
(c) ELIGIBLE ENTITY USE OF FUNDS.—An eligible entity that re-
ceives a subgrant under subsection (a)(1) shall use the subgrant
funds to carry out a community action plan that shall include—
(1) programs, projects, and services that provide low-income
individuals and families with opportunities—
(A) to identify and develop strategies to remove obstacles
and solve problems that block access to opportunity, eco-
nomic stability, and achievement of self-sufficiency;
(B) to secure and retain meaningful employment at a
family supporting wage;
(C) to secure an adequate education, improve literacy and
language skills, and obtain job-related skills;
(D) to make effective use of available income and build
assets;
(E) to obtain and maintain adequate housing and a safe
and healthy living environment;
(F) to address health needs and improve health and well-
being;
(G) to obtain emergency materials or other assistance to
meet immediate and urgent needs, including to meet the
collective needs of a community, and prevent greater or
more prolonged economic instability;
(H) to secure and identify assistance related to reducing
energy expenses and reducing energy consumption; and
(I) to achieve greater participation in community affairs;
and
(2) activities that develop and maintain—
(A) partnerships for the purpose of addressing commu-
nity, economic, and social conditions of poverty and pro-
moting healthy communities, between the eligible entity
and—
(i) State and local public entities; and
(ii) private partners, including statewide and local
businesses, associations of private employers, and pri-
vate charitable and civic organizations;
(B) linkages with public and private organizations for co-
ordinating initiatives, services, and investments so as to
avoid duplication, and maximize the effective use, of com-
munity resources for creating economic opportunity, includ-
ing developing lasting social and economic assets; and
(C) new investments in the community to reduce the inci-
dence of poverty, including developing lasting social and
economic assets.
(d) ELIGIBILITY CRITERION.—
(1) Subject to paragraph (2), 200 percent of the poverty line
shall be used as a criterion of eligibility for services, assistance,
or resources provided directly to individuals or families through
the community services block grant program established under
this subtitle.
(2) A State or Tribal grantee may establish procedures to en-
sure that a participant in a program, project, or service funded
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98
under this subtitle remains eligible to participate as long as the
participant is successfully progressing toward achievement of
the goals of the program, project, or service, regardless of the
income eligibility criteria used to determine the participant’s
initial eligibility.
SEC. 680. ELIGIBLE ENTITIES AND TRIPARTITE BOARDS.
(a) DESIGNATION AND REDESIGNATION OF ELIGIBLE ENTITIES IN
UNSERVED AREAS.—
(1) IN GENERAL.—If any geographic area of a State is not, or
ceases to be, served by an eligible entity, the State lead agency
may, in consultation with local officials and organizations rep-
resenting the area, solicit one or more applications and des-
ignate a new community action agency to provide programs,
projects, and services to the area, that is—
(A) a community action agency that is a private, non-
profit organization and that is geographically located in an
area in reasonable proximity of, or contiguous to, the
unserved area and that is already providing similar pro-
grams, projects, and services, and that has demonstrated fi-
nancial capacity to manage and account for Federal funds;
or
(B) if no community action agency described in subpara-
graph (A) is available, a private, nonprofit organization
(which may include an eligible entity) that is geographi-
cally located in, or is in reasonable proximity to, the
unserved area and that is capable of providing a broad
range of programs, projects, and services designed to
achieve the purposes of this subtitle as stated in section
672.
(2) REQUIREMENT.—In order to serve as the eligible entity for
the service area, an entity described in paragraph (1) shall
agree to ensure that the governing board of directors of the enti-
ty will meet the requirements of subsection (c).
(3) COMMUNITY.—A service area referred to in this subsection
or a portion thereof shall be treated as a community for pur-
poses of this subtitle.
(4) INTERIM DESIGNATION.—If no entity that meets the re-
quirements of paragraphs (1) and (2) is available for designa-
tion as a permanent eligible entity, the State may designate a
private, nonprofit agency (or public agency if a private, non-
profit is not available) on an interim basis for no more than 1
year while the State completes a selection process for a perma-
nent eligible entity that meets the requirements of paragraphs
(1) and (2). An agency designated on an interim basis shall be
capable of providing programs, projects, and services designed
to achieve the purposes of this subtitle as stated in section 672
and have demonstrated financial capacity to manage and ac-
count for Federal funds, and may be designated as a permanent
eligible entity only if, by the time of permanent designation, it
meets all the requirements of paragraphs (1) and (2).
(b) MERGER, COMBINATION, OR PRIVATIZATION OF ELIGIBLE ENTI-
TIES.—
(1) IN GENERAL.—If an eligible entity receiving subgrant
funds makes a determination described in paragraph (2) and
notifies the State, the State—
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99
(A) shall assist in developing a plan for implementing
such merger, combination, or privatization, including a
budget for transitional costs not to exceed 2 years in dura-
tion;
(B) in the case of a merger or combination, shall provide
to the merged or combined entity an amount of funding
under section 679(a)(1) equal to the sum of amounts the
merged or combined entities each received under section
679(a)(1) immediately before the merger or combination.
(2) COVERED MERGER, COMBINATION, OR PRIVATIZATION.—
This subsection applies when—
(A) 2 or more eligible entities determine that the geo-
graphic areas of a State that they serve can be more effec-
tively served under common control or shared management;
or
(B) a public organization that is an eligible entity deter-
mines that the area it serves can be more effectively served
if it becomes a private, nonprofit organization.
(3) PLANS.—A State may establish requirements for merger,
combination, or privatization plans and for a determination
that the merged, combined, or privatized entity, or entities, will
be capable of conducting a broad range of programs, projects,
and services designed to achieve the purposes of this subtitle as
stated in section 672 consistent with the comprehensive commu-
nity needs assessments for the areas served.
(4) STATE DETERMINATION.—If a State determines that a
merged, combined, or privatized entity or entities will be capa-
ble of conducting a broad range of programs, projects, and serv-
ices as specified in paragraph (3), it shall designate the merged,
combined, or privatized entity or entities to serve the area(s) in
question without soliciting applications from other entities.
(c) TRIPARTITE BOARDS.—
(1) PRIVATE, NONPROFIT ORGANIZATIONS.—
(A) BOARD.—In order for a private, nonprofit organiza-
tion to be considered to be an eligible entity for purposes of
section 673(7), the entity shall be governed by a tripartite
board of directors described in subparagraph (C) that fully
participates in the development, planning, implementation,
oversight, and evaluation of the programs, projects, and
services carried out or provided through the subgrant made
under section 679(a)(1) and all activities of the entity.
(B) SELECTION.—The members of the board referred to in
subparagraph (A) shall be selected by the private, nonprofit
organization.
(C) COMPOSITION OF BOARD.—The board shall be com-
posed so as to assure that—
(i) 1⁄3 of the members of the board are elected public
officials holding office on the date of selection, or their
representatives (but if an elected public official chooses
not to serve, such official may designate a representa-
tive to serve as the voting board member);
(ii) not fewer than 1⁄3 of the members are persons
chosen in accordance with democratic selection proce-
dures adequate to assure that such members are rep-
resentative of low-income individuals and families in
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100
the service area; and if selected to represent a specific
geographic area, such member resides in that area;
and
(iii) the remainder of the members may be comprised
of representatives from business, industry, labor, reli-
gious, educational, charitable, or other significant
groups and interests in the community.
(D) EXPERTISE.—The eligible entity shall ensure that the
members of the board are provided resources, which may
include contracted services with individuals and organiza-
tions with expertise in financial management, accounting,
and law, to support the work of the board.
(E) COMPLIANCE WITH TAX-EXEMPT AND OTHER REQUIRE-
MENTS.—The board of a private, nonprofit organization
shall ensure that the board operates and conducts activities
under the subgrant made under section 679(a)(1) in a man-
ner that complies with—
(i) the requirements for maintaining tax-exempt sta-
tus under section 501(a) of the Internal Revenue Code
of 1986 (26 U.S.C. 501(a)) regarding the governance of
charities under section 501(c)(3) of the Internal Rev-
enue Code of 1986 (26 U.S.C. 501(c)(3)); and
(ii) applicable requirements of State nonprofit law.
(2) PUBLIC ORGANIZATIONS.—
(A) BOARD.—In order for a local public (governmental)
entity to be considered to be an eligible entity for purposes
of section 673(7), the entity shall ensure that the programs,
projects, and services carried out or provided through the
subgrant made under section 679(a)(1) are administered
under the supervision of a tripartite board described in
subparagraph (C) that fully participates in the develop-
ment, planning, implementation, oversight, and evaluation
of such programs, projects, and services.
(B) SELECTION.—The members of the board referred to in
subparagraph (A) shall be selected by the local public enti-
ty.
(C) COMPOSITION OF BOARD.—The board shall be com-
posed so as to assure that—
(i) not more than 1⁄3 of the members of the board are
employees or officials, including elected officials, of the
unit of government in which the organization is lo-
cated;
(ii) not fewer than 1⁄3 of the members are persons
chosen in accordance with democratic selection proce-
dures adequate to assure that such members are rep-
resentative of low-income individuals and families in
the service area; and if selected to represent a specific
geographic area, such member resides in that area;
and
(iii) the remainder of the members may be comprised
of representatives from business, industry, labor, reli-
gious, educational, charitable, or other significant
groups and interests in the community.
(D) EXPERTISE.—The eligible entity shall ensure that the
members of the board are provided resources, which may
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101
include contracted services with individuals and organiza-
tions with expertise in financial management, accounting,
and law, to support the work of the board.
(E) COMPLIANCE WITH STATE REQUIREMENTS AND POL-
ICY.—The board of a public organization shall ensure that
the board operates in a manner that complies with State re-
quirements for open meetings, financial transparency, and
State open records policy.
(3) BOARD VACANCIES.—To fulfill the requirements under this
section, an eligible entity shall fill a board vacancy not later
than 6 months after such vacancy arises. In the event that an
eligible entity is unable to fill a board vacancy in the 6-month
period, the entity shall certify to the State that it is making a
good faith effort to fill the vacancy and shall receive 1 addi-
tional 6-month period to fill such vacancy.
(4) SAFEGUARD.—Neither the Federal Government nor a State
or local government shall require a religious organization to
alter its form of internal governance, except (for purposes of ad-
ministration of the community services block grant program) as
provided in section 680(c).
(d) OPERATIONS AND DUTIES OF THE BOARD.—The duties of a
board described in paragraph (1) or (2) of subsection (c) shall in-
clude—
(1) in the case of a board for a private, nonprofit organization
that is an eligible entity, having legal and financial responsi-
bility for administering and overseeing the eligible entity, in-
cluding making proper use of Federal funds;
(2) establishing terms for officers and adopting a code of eth-
ical conduct, including a conflict of interest policy for board
members;
(3) participating in each comprehensive community needs as-
sessment, developing and adopting for the corresponding eligi-
ble entity an agency-wide strategic plan, and preparing the
community action plan for the use of funds under this subtitle;
(4) approving the eligible entity’s operating budget;
(5) reviewing all major policies such that—
(A) for private, nonprofit organizations that are eligible
entities, a review includes conducting annual performance
reviews of the eligible entity’s chief executive officer (or indi-
vidual holding an equivalent position); and
(B) for local public entities that are eligible entities, a re-
view includes participating in annual performance reviews
of the eligible entity’s chief executive officer (or individual
holding an equivalent position);
(6) performing oversight of the eligible entity to include—
(A) conducting assessments of the eligible entity’s
progress in carrying out programmatic and financial provi-
sions in the community action plan; and
(B) in the case of any required corrective action, review-
ing the eligible entity’s plans and progress in remedying
identified deficiencies; and
(7) concerning personnel policies and procedures—
(A) in the case of private, nonprofit organizations that
are eligible entities, adopting personnel policies and proce-
dures, including for hiring, annual evaluation, compensa-
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102
tion, and termination, of the eligible entity’s chief executive
officer (or individual holding a similar position); and
(B) in the case of local public entities that are eligible en-
tities, reviewing personnel policies and procedures, includ-
ing for hiring, annual evaluation, compensation, and termi-
nation, of the eligible entity’s chief executive officer (or indi-
vidual holding a similar position).
SEC. 681. OFFICE OF COMMUNITY SERVICES.
(a) OFFICE.—
(1) ESTABLISHMENT.—The Secretary shall establish an Office
of Community Services in the Department to carry out the func-
tions of this subtitle.
(2) DIRECTOR.—The Office shall be headed by a Director (re-
ferred to in this section as the ‘‘Director’’).
(b) GRANTS, CONTRACTS, AND COOPERATIVE AGREEMENTS.—The
Secretary, acting through the Director, shall carry out the functions
of this subtitle through grants, contracts, or cooperative agreements.
SEC. 682. TRAINING, TECHNICAL ASSISTANCE, AND RELATED ACTIVI-
TIES.
(a) ACTIVITIES.—
(1) IN GENERAL.—The Secretary shall—
(A) use amounts reserved under section 691(c)(2) for
training, technical assistance, planning, assessment, and
performance measurement, as described in this section and
in sections 684 and 686, to assist States, eligible entities,
Tribal grantees, and other community services network or-
ganizations in—
(i) building and using evidence of effectiveness in re-
ducing poverty conditions, including through develop-
ment and dissemination of information about clearing-
houses and other resources that identify relevant evi-
dence-based initiatives, for use in connection with the
Community Action Innovations Program established
under paragraph (2);
(ii) carrying out professional development activities
that expand the capacity of eligible entities and Tribal
grantees;
(iii) carrying out performance measurement, data
collection, and reporting activities related to programs,
projects, and services carried out under this subtitle;
and
(iv) correcting programmatic deficiencies, including
such deficiencies of eligible entities or Tribal grantees;
and
(B) distribute the amounts reserved under section
691(c)(2)(A) through grants, contracts, or cooperative agree-
ments with eligible entities, Tribal grantees, and other com-
munity services network organizations described in sub-
section (b) for—
(i) professional development for key community serv-
ices network organization personnel;
(ii) activities to improve community services network
organization programs, financial management, compli-
ance, and governance practices (including practices re-
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103
lated to performance management information sys-
tems);
(iii) activities that train community services network
organizations and their staff and board members to ef-
fectively address the needs of low-income families and
communities through place-based strategies that ad-
dress local causes and conditions of poverty through
coordinated investment and integrated service delivery;
and
(iv) activities that train community services network
organizations in building and using evidence of effec-
tiveness in reducing poverty conditions and that sup-
port effective administration of funds under the Com-
munity Action Innovations Program established under
paragraph (2).
(2) INNOVATIVE AND EVIDENCE-BASED PROJECTS TO REDUCE
POVERTY.—
(A) IN GENERAL.—The Secretary shall use amounts re-
served under section 691(c)(3) for a Community Action In-
novations Program to—
(i) award grants, contracts, or cooperative agree-
ments to eligible entities, Tribal grantees, and other
community services network organizations, including
consortia of such entities, grantees, or organizations to
facilitate innovation and use of evidence-based practice
designed to reduce poverty conditions, including
through whole family approaches that create opportu-
nities for, and address the needs of, parents and chil-
dren together; and
(ii) disseminate results for public use.
(B) PROJECTS.—The Secretary shall award funds from
its Community Action Innovations Program for projects to
enable—
(i) replication or expansion of innovative practices
with demonstrated evidence of effectiveness, with pri-
ority given to those with the strongest evidence base as
determined through a broad review of available stud-
ies; or
(ii) testing of innovative practices to determine their
effectiveness, with priority given to those incorporating
rigorous, independent evaluation to further build the
evidence base.
(C) USE OF FUNDS.—The funds reserved for use under
this paragraph may be used by awardees for resources or
activities necessary to replicate, expand, or test innovative
and evidence-based practices, including costs of training
and technical assistance, evaluation, data collection, and
technology.
(D) EXPENSES.—The funds reserved for use under this
paragraph may be used for reasonable expenses of award-
ees, associated with administration of projects and dissemi-
nation of their results.
(E) AWARDS AND OBLIGATION.—The Secretary shall
award and obligate funds reserved for projects under this
paragraph during the first program year for which the
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104
funds are appropriated. Grant funds awarded under this
paragraph shall remain available for expenditure by the
awardee not later than 36 months after the date of award
by the Secretary, unless a longer period of availability is
approved by the Secretary based on extenuating cir-
cumstances and demonstrated evidence of effectiveness.
(b) ELIGIBLE ENTITIES, TRIBAL GRANTEES, AND OTHER COMMU-
NITY SERVICES NETWORK ORGANIZATIONS.—Eligible entities, Tribal
grantees, and other community services network organizations re-
ferred to in subsection (a)(1)(B) shall include such entities, grantees,
and organizations (and their partners, including institutions of
higher education) with demonstrated expertise in providing training
for individuals and organizations on methods of effectively address-
ing the needs of low-income families and communities and, if ap-
propriate, expertise in Tribal issues.
(c) TRAINING AND TECHNICAL ASSISTANCE PROCESS.—‘The process
for determining the training and technical assistance to be carried
out under subsection (a)(1) shall—
(1) ensure that the needs of eligible entities, Tribal grantees,
and programs relating to improving program quality (including
quality of financial management practices) are addressed to the
maximum extent feasible; and
(2) incorporate mechanisms to ensure responsiveness to local
needs, including an ongoing procedure for obtaining input from
the national and State networks of eligible entities.
SEC. 683. STATE MONITORING OF ELIGIBLE ENTITIES.
In order to determine whether eligible entities receiving subgrants
under this subtitle meet performance goals, administrative stand-
ards, financial management requirements, and other requirements
under this subtitle, the State shall conduct the following reviews of
eligible entities:
(1) A full onsite review of each eligible entity at least once
during each 3-year period.
(2) An onsite review of each newly designated eligible entity
immediately after the completion of the first year in which such
entity receives funds through the community services block
grant program under this subtitle.
(3) Followup reviews, including onsite reviews scheduled in a
corrective action plan (including return visits), in a calendar
quarter for eligible entities with programs, projects, or services
that fail to meet the State’s performance criteria, standards, fi-
nancial management requirements, or other significant require-
ments established under this subtitle.
(4) Other reviews as appropriate, including reviews of eligible
entities with programs, projects, and services that have had
other Federal, State, or local grants (other than assistance pro-
vided under this subtitle) terminated for cause.
(5) In conducting reviews, including as required by para-
graph (1), a State may conduct a remote (including virtual) re-
view of an eligible entity in extraordinary circumstances if ap-
proved by the Secretary on a case-by-case basis.
SEC. 684. ASSESSMENTS; CORRECTIVE ACTION; REDUCTION OR ELIMI-
NATION OF FUNDING.
(a) ASSESSMENTS OF STATES BY THE SECRETARY.—
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(1) IN GENERAL.—The Secretary shall conduct, in not fewer
than 1/5 of the States in each fiscal year, assessments (includ-
ing investigations) of State compliance with this subtitle, in-
cluding requirements relating to the use of funds received under
this subtitle, requirements applicable to State plans submitted
under section 678(b), and requirements of section 679(a)(2).
(2) REPORT TO STATES.—The Secretary shall submit to each
State assessed, and make available to the public on the Depart-
ment’s website, a report containing—
(A) the results of such assessment; and
(B)(i) recommendations for improvements designed to en-
hance the benefit and impact of the activities carried out
with such funds; and
(ii) in the event a serious deficiency is found regarding a
State’s compliance with this subtitle, including require-
ments relating to the use of funds received under this sub-
title, a proposed corrective action plan.
(3) STATE RESPONSE.—Not later than 45 days after receiving
a report under paragraph (2)—
(A) a State that received recommendations under para-
graph (2)(B)(i) shall submit to the Secretary and make
available to the public on the State lead agency’s website a
plan of action in response to the recommendations; and
(B) a State that received a proposed corrective action
plan under paragraph (2)(B)(ii) shall agree to implement
the corrective action plan proposed by the Secretary or pro-
pose to the Secretary and make available to the public on
the State lead agency’s website a different corrective action
plan, developed by the State in a timely manner that the
State will implement upon approval by the Secretary.
(4) REPORT TO CONGRESS.—The Secretary shall submit the re-
sults of the assessments annually, as part of the report sub-
mitted by the Secretary in accordance with section 686(b)(2).
(5) ENFORCEMENT.—
(A) REDUCTION OR ELIMINATION OF FUNDING.—If the Sec-
retary determines, in a final decision based on an assess-
ment conducted under this section, that a State fails to
meet the requirements of this subtitle, the Secretary may,
after providing adequate notice and an opportunity for a
hearing, initiate proceedings to reduce or eliminate the
amount of funding apportioned and allocated to the State
as described in section 675 or 676, as applicable (and, if
necessary, deobligate such funding).
(B) DIRECT AWARDS TO OTHER ENTITIES.—
(i) REDUCTION OR ELIMINATION OF STATE FUNDING;
LACK OF APPROVED STATE PLAN.—If the Secretary re-
duces or eliminates funding to a State under subpara-
graph (A), the Secretary shall award funding directly
as provided under clauses (ii) and (iii). If, for a par-
ticular fiscal year, a State plan is not approved by the
Secretary in accordance with section 678(c), the Sec-
retary may award funding directly as provided under
clauses (ii) and (iii).
(ii) DIRECT FUNDING TO ELIGIBLE ENTITIES.—If fund-
ing specified in section 679(a)(1) is reduced or elimi-
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106
nated due to the Secretary’s reduction or elimination of
funding under subparagraph (A), or if the Secretary
chooses to award funding directly due to the lack of an
approved State plan as authorized in clause (i), the
Secretary shall award financial assistance in the
amount of such reduced or eliminated funding, or in
the amount the State would have received for the pur-
poses specified in section 679(a)(1) had a State plan
been approved, directly (by grant or cooperative agree-
ment) to affected eligible entities (provided that any
such entity has not had its funding under this subtitle
eliminated or its designation as an eligible entity ter-
minated by the State in accordance with subsections
(b) and (c) of section 684) to carry out the activities de-
scribed in section 679(c). In awarding such funding,
the Secretary shall ensure that each such affected eligi-
ble entity receives the same proportionate share of
funding under section 679(a)(1) that it received in the
previous fiscal year.
(iii) STATEWIDE FUNDS.—If funding specified in sec-
tion 679(b) is reduced or eliminated due to the Sec-
retary’s reduction or elimination of funding under sub-
paragraph (A), or if the Secretary chooses to award
funding directly due to the lack of an approved State
plan as authorized in clause (i), the Secretary shall re-
serve an amount equal to the amount of such reduced
or eliminated funds, or to the amount the State would
have received for the purposes specified in section
679(b) had a State plan been approved. The Secretary
may use such amount for such purposes directly or
through a grant or cooperative agreement to commu-
nity services network organizations (other than the
State itself).
(iv) REDUCTION.—In the case of expenditure as pro-
vided in accordance with this subparagraph, the Sec-
retary shall reduce funding the State would otherwise
have received under section 675 or 676 (and, if nec-
essary, deobligate such funding) for the appropriate fis-
cal year by an amount equal to the amount so ex-
pended.
(6) TRAINING AND TECHNICAL ASSISTANCE.—The Secretary,
through the Department’s own employees or contractors (rather
than under grants, contracts, or cooperative agreements issued
under section 682), shall provide training and technical assist-
ance to States with respect to the development or implementa-
tion of the States’ corrective action plans.
(b) DETERMINATION OF ELIGIBLE ENTITY FAILURE TO COMPLY.—
(1) CORRECTIVE ACTION BY ELIGIBLE ENTITIES.—If the State
determines, on the basis of a review pursuant to section 683 or
section 685, that there is a serious deficiency regarding an eligi-
ble entity’s compliance with this subtitle, the State shall inform
the entity of the serious deficiencies that shall be corrected and
provide technical assistance for the corrective action.
(2) ELIGIBLE ENTITY CORRECTIVE ACTION PLANS.—An eligible
entity that is found to have a serious deficiency under para-
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107
graph (1) shall develop, in a timely manner, a corrective action
plan that shall be subject to the approval of the State, and that
shall specify—
(A) the deficiencies to be corrected;
(B) the actions to be taken to correct such deficiencies;
and
(C) the timetable for accomplishment of the corrective ac-
tions specified.
(3) FINAL DECISION.—If the State determines, on the basis of
a final decision in a review conducted under section 683, that
an eligible entity fails to comply with the terms of a corrective
action plan under paragraph (2) relating to correction of a seri-
ous deficiency for the eligible entity, the State may, after pro-
viding adequate notice and an opportunity for a hearing, ini-
tiate proceedings to withhold, reduce, or eliminate the funding
provided under section 679(a)(1) to the eligible entity (includ-
ing, in the case of elimination of funding, terminating the des-
ignation under this subtitle of the eligible entity) unless the en-
tity corrects the serious deficiency.
(c) REVIEW.—A State’s decision to withhold, reduce, or eliminate
funding, or to terminate the designation of an eligible entity (or eli-
gible entities, as applicable) may be reviewed by the Secretary. Upon
request by a community services network organization, the Secretary
shall review such a determination. The review shall be completed
not later than 60 days after the Secretary receives from the State all
necessary documentation relating to the determination. The State
shall submit such documentation within a reasonable time frame
established by the Secretary.
(d) DIRECT ASSISTANCE.—Whenever the Secretary determines that
a State has violated the State plan described in section 678(b) (in-
cluding the assurance described in section 678(b)(6)) and the State
has reduced or eliminated the funding provided under section
679(a) to any eligible entity or entities or terminated the eligible en-
tity designation of any eligible entity or entities before the comple-
tion of the State proceedings described in section 678(b)(6) (includ-
ing, if applicable, the proceedings required by subsection (b)) and
the Secretary’s review as required by subsection (c), the Secretary
may provide financial assistance under this subtitle to the affected
eligible entity or entities directly until the violation is corrected by
the State. In such a case, the Secretary may reduce funding the
State would otherwise have received under section 675 or 676 (and,
if necessary, deobligate such funding) for the appropriate fiscal year
by an amount equal to the financial assistance provided directly by
the Secretary to such eligible entity or entities.
SEC. 685. STATE AND LOCAL FISCAL CONTROLS AND AUDITS.
(a) FISCAL CONTROLS, PROCEDURES, AUDITS, AND INSPECTIONS.—
A State that receives funds under this subtitle shall—
(1) establish fiscal control and fund accounting procedures
necessary to assure the proper disbursal of, and accounting for,
Federal funds paid to the State under this subtitle, including
procedures for monitoring the funds provided under this sub-
title;
(2) ensure that cost and accounting standards of the Office of
Management and Budget apply to a subrecipient of the funds
under this subtitle;
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108
(3) in accordance with subsections (b) and (c), prepare, not
less than once each year, an audit of the expenditures of the
State of amounts received under this subtitle; and
(4) make appropriate books, documents, papers, and records
available to the Secretary and the Comptroller General of the
United States, or any of their duly authorized representatives,
for examination, copying, or mechanical reproduction, on or off
the premises of the appropriate entity, upon a reasonable re-
quest for the items.
(b) INDEPENDENT ENTITY.—Subject to subsection (c), each audit
required by subsection (a)(3) shall be conducted by an entity inde-
pendent of any agency administering activities or services under
this subtitle and shall be conducted in accordance with generally
accepted accounting principles.
(c) SINGLE AUDIT REQUIREMENTS.—
(1) IN GENERAL.—Any audit under this subsection shall be
conducted in the manner and to the extent provided in chapter
75 of title 31, United States Code (commonly known as the
‘‘Single Audit Act Amendments of 1984’’) except in the event a
serious financial deficiency is identified.
(2) SERIOUS FINANCIAL DEFICIENCY.—In the event that such a
deficiency is identified, the Secretary shall order—
(A) an audit conducted as described in subsection (a); or
(B) an audit of each of the accounts involved, in accord-
ance with subsections (b) and (d).
(d) SUBMISSION OF COPIES.—Not later than 30 days after the
completion of each audit in a State as required in subsection (a)(3),
the chief executive officer of the State shall submit copies of such
audit, at no charge, to any eligible entity that was the subject of the
audit, to the legislature of the State, and to the Secretary.
(e) REPAYMENTS.—If the Secretary, after review of the audit, finds
that a State has not expended an amount of funds in accordance
with this subtitle, the Secretary is authorized to withhold funds
from a State under this subtitle until the State remedies the improp-
erly expended funds for the original purposes for which the grant
funds were intended.
(f) RESPONSE TO COMPLAINTS.—The Secretary shall respond in an
expeditious manner to complaints of a substantial or serious nature
that a State has failed to use grant funds received under section 675
or 676 or to carry out State activities under this subtitle in accord-
ance with the provisions of this subtitle.
(g) INVESTIGATIONS.—Whenever the Secretary determines that
there is a pattern of complaints regarding failures described in sub-
section (f) or a complaint of a serious deficiency concerning any
State, the Secretary shall conduct an investigation of the use of the
funds received under this subtitle by such State in order to ensure
compliance with the provisions of this subtitle.
SEC. 686. ACCOUNTABILITY AND REPORTING REQUIREMENTS.
(a) STATE ACCOUNTABILITY AND REPORTING REQUIREMENTS.—
(1) PERFORMANCE MEASUREMENT.—
(A) IN GENERAL.—Beginning with the first fiscal year fol-
lowing the transition period described in section 3 of the
Community Services Block Grant Modernization Act of
2022, each State that receives funds under this subtitle
shall participate, and shall ensure that all eligible entities
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109
in the State participate, in a results-oriented performance
measurement system that the Secretary is satisfied meets
the requirements of section 689(b)(1).
(B) SUBCONTRACTORS.—The State may elect to have sub-
contractors of the eligible entities under this subtitle par-
ticipate in the results-oriented performance measurement
system. If the State makes that election, references in this
section to eligible entities shall be considered to include
such subcontractors.
(C) ELIGIBLE ENTITY REPORTS.—Eligible entities shall
provide the results measured by their performance measure-
ment system and such other reports as the State may re-
quire.
(2) ANNUAL REPORT.—Each State receiving funds under this
subtitle shall annually prepare, and submit to the Secretary by
March 31 of each year, a report on the performance of the State
and eligible entities in the State, including achievement with re-
spect to performance measurements that were used by commu-
nity services network organizations in the State for the previous
fiscal year. Each State shall also include in the report—
(A) an accounting of the expenditure of funds received by
the State through the community services block grant pro-
gram, including an accounting of funds spent on adminis-
trative or indirect costs by the State and the eligible entities
and funds spent by the eligible entities on local programs,
projects, and services;
(B) information on the number and characteristics of
participants served under this subtitle in the State, based
on data collected from the eligible entities;
(C) a summary describing the training and technical as-
sistance offered by the State under subparagraph (B) of sec-
tion 679(b)(1) during the year covered by the report;
(D) information on the total budget and activities of the
eligible entities receiving subgrants from the State under
this subtitle, including local and private resources avail-
able for a purpose described in section 672; and
(E) a report on the manner in which the State and eligi-
ble entities and other recipients of funds under this subtitle
have implemented results-oriented management practices
based on their performance measurement systems.
(b) REPORTING REQUIREMENTS.—
(1) CONTENTS.—Not later than September 30 of each year, the
Secretary shall, directly or by grant or contract, prepare a re-
port including—
(A) the information included in the State annual reports
under subsection (a)(2) for the preceding fiscal year;
(B) a report on the performance of the Department in the
preceding year regarding carrying out critical roles and re-
sponsibilities under this subtitle, including with regard to
timeliness in allocating and making appropriated funds
available for expenditure to States, approvals or notifica-
tions to States concerning State plans and plan revisions,
and conducting assessments of States and implementation
of State corrective action plans (including status of and fol-
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110
low-up on recommendations made in previous State assess-
ments and corrective action plans);
(C) a description of the training and technical assistance
activities funded by the Secretary under section 682 and
the results of those activities; and
(D) a report on the Community Action Innovations Pro-
gram authorized under section 682(a)(2), including a de-
scription of training and technical assistance funded by the
Secretary, the rationale for projects that received support, a
description of funded activities and their results, and a
summary of ways in which the Program has expanded use
of evidence-based practice or contributed to building the
evidence base designed to reduce poverty conditions.
(2) SUBMISSION.—The Secretary shall submit to the Com-
mittee on Education and Labor of the House of Representatives
and to the Committee on Health, Education, Labor, and Pen-
sions of the Senate the report described in paragraph (1) and
any recommendations the Secretary may have with respect to
such report.
(3) ELECTRONIC DATA SYSTEM FOR REPORTS TO STATES AND
ELIGIBLE ENTITIES.—The Secretary, through the Department’s
own employees or contractors (rather than under grants, con-
tracts, or cooperative agreements issued under section 682),
shall provide technical assistance, including support for the de-
velopment and maintenance of an electronic data system for the
reports under this section, to the States and eligible entities to
enhance the quality and timeliness of reports submitted under
this subtitle. The system shall be coordinated and consistent
with the data systems established for other programs of the De-
partment that are managed by eligible entities, including all
programs of the Administration for Children and Families or
successor administrative units in which the office is located.
SEC. 687. LIMITATIONS ON USE OF FUNDS.
(a) CONSTRUCTION OF FACILITIES.—
(1) LIMITATIONS.—Except as provided in paragraphs (2) and
(3) of this subsection and in paragraphs (2) and (3) of section
690(a), grants or subgrants made under this subtitle may not
be for the purchase or improvement of land, or the purchase,
construction or permanent improvement of any building or
other facility.
(2) WAIVER.—The Secretary may waive the limitation con-
tained in paragraph (1) upon a State request for such a waiver
if the Secretary finds that—
(A) the request describes extraordinary circumstances to
justify the purchase or improvement of land, or the pur-
chase, construction, or permanent improvement of any
building or other facilities; and
(B) permitting the waiver will contribute to the ability of
the State and eligible entities to carry out a purpose de-
scribed in section 672 at substantially reduced costs.
(3) ARCHITECTURAL BARRIERS TO ACCESSIBILITY.—Grants or
subgrants made under this subtitle may be used by eligible enti-
ties or Tribal grantees for making material improvements in the
accessibility of the physical structures for individuals with dis-
abilities seeking services of such entities.
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111
(b) POLITICAL ACTIVITIES.—
(1) TREATMENT AS A STATE OR LOCAL AGENCY.—For purposes
of chapter 15 of title 5, United States Code, any entity that as-
sumes responsibility for planning, developing, and coordinating
activities under this subtitle and receives assistance under this
subtitle shall be deemed to be a State or local agency. For pur-
poses of paragraphs (1) and (2) of section 1502(a) of such title,
any entity receiving assistance under this subtitle shall be
deemed to be a State or local agency.
(2) PROHIBITIONS.—A program, project, or service assisted
under this subtitle, and any individual employed by, or as-
signed to or in, such a program, project, or service (during the
hours in which the individual is working on behalf of the pro-
gram, project, or service) shall not engage in—
(A) any partisan or nonpartisan political activity or any
political activity associated with a candidate, or contending
faction or group, in an election for public or party office; or
(B) any activity to provide voters or prospective voters
with transportation to the polls or similar assistance in
connection with any election.
(3) REGISTRATION.—None of the funds appropriated to carry
out this subtitle may be used to conduct voter registration ac-
tivities. Nothing in this subtitle prohibits entities receiving as-
sistance under this subtitle from making its facilities available
during hours of operation for use by nonpartisan organizations
to increase the number of eligible citizens who register to vote
in elections for Federal office.
(c) NONDISCRIMINATION.—
(1) IN GENERAL.—No person shall, on the basis of race, color,
national origin, or sex, be excluded from participation in, be de-
nied the benefits of, or be subjected to discrimination under,
any program, project, or service funded in whole or in part with
funds made available under this subtitle. Any prohibition
against discrimination on the basis of age under the Age Dis-
crimination Act of 1975 (42 U.S.C. 6101 et seq.) or with respect
to an otherwise qualified individual with a disability as pro-
vided in section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794), or title II of the Americans with Disabilities Act of
1990 (42 U.S.C. 12131 et seq.), shall also apply to any such pro-
gram, project, or service.
(2) ACTION OF SECRETARY.—Whenever the Secretary deter-
mines that a State that has received a payment under this sub-
title has failed to comply with paragraph (1) or an applicable
regulation, the Secretary shall notify the chief executive officer
of the State and shall request that the officer secure compliance.
If within a reasonable period of time, not to exceed 60 days, the
chief executive officer fails or refuses to secure compliance, the
Secretary is authorized to—
(A) refer the matter to the Attorney General with a rec-
ommendation that an appropriate civil action be instituted;
(B) exercise the powers and functions provided by title VI
of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.),
the Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.),
section 504 of the Rehabilitation Act of 1973 (29 U.S.C.
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112
794), or title II of the Americans with Disabilities Act of
1990 (42 U.S.C. 12131 et seq.), as may be applicable; or
(C) take such other action as may be provided by law.
(3) ACTION OF ATTORNEY GENERAL.—When a matter is re-
ferred to the Attorney General pursuant to paragraph (2), or
whenever the Attorney General has reason to believe that the
State is engaged in a pattern or practice of discrimination in
violation of the provisions of this subsection, the Attorney Gen-
eral may bring a civil action in any appropriate United States
district court for such relief as may be appropriate, including
injunctive relief.
SEC. 688. CHILD SUPPORT SERVICES AND REFERRALS.
During each fiscal year for which an eligible entity receives a
subgrant under section 679(a), such entity shall—
(1) inform custodial parents or legal guardians that partici-
pate in programs, projects, or services carried out or provided
under this subtitle about the availability of child support serv-
ices; and
(2) refer custodial parents or legal guardians to the child sup-
port offices of State and local governments.
SEC. 689. REGULATIONS.
(a) REGULATIONS.—The Secretary shall promulgate regulations
implementing this subtitle, including regulations regarding—
(1) State plans, including the form and information required
for State plans submitted to the Secretary, and criteria for de-
termining whether a State plan revision is to be considered a
major revision;
(2) community action plans, including the form and informa-
tion required for community action plans submitted to States;
(3) State monitoring of eligible entities; and
(4) reports to the Secretary described in section 686.
(b) GUIDANCE.—
(1) PERFORMANCE MEASUREMENT.—The Secretary shall issue
guidance regarding State and local performance measurement
systems. Guidance may include one or more model performance
measurement systems, facilitated by the Secretary, that States
and eligible entities may use to measure their performance in
carrying out the requirements of this subtitle and in achieving
the goals of their community action plans.
(2) COMPREHENSIVE ANALYSIS OF POVERTY CONDITIONS.—The
Secretary shall issue guidance (including models) for com-
prehensive community needs assessments described in section
678(e)(1). The guidance shall include methods for preparing an
analysis of all poverty conditions affecting a community and of
local and regional assets for alleviating such conditions.
SEC. 690. DISCRETIONARY COMMUNITY PROGRAMS.
(a) GRANTS, CONTRACTS, ARRANGEMENTS, LOANS, AND GUARAN-
TEES.—
(1) IN GENERAL.—The Secretary shall, from funds appro-
priated under section 691(b), make grants, loans, or guarantees
to States and public agencies and private, nonprofit organiza-
tions, or enter into contracts or jointly financed cooperative ar-
rangements with States and public agencies and private, non-
profit organizations (and for-profit organizations, to the extent
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113
specified in paragraph (2)(E)) for each of the objectives de-
scribed in paragraphs (2) through (4).
(2) COMMUNITY ECONOMIC DEVELOPMENT.—
(A) ECONOMIC DEVELOPMENT ACTIVITIES.—The Secretary
shall make grants described in paragraph (1) on a competi-
tive basis to private, nonprofit organizations that are com-
munity development corporations to provide technical and
financial assistance for economic development activities de-
signed to address the economic needs of low-income indi-
viduals and families by creating employment and business
development opportunities.
(B) CONSULTATION.—The Secretary shall exercise the au-
thority provided under subparagraph (A) after consultation
with other relevant Federal officials.
(C) GOVERNING BOARDS.—For a community development
corporation to receive funds to carry out this paragraph,
the corporation shall be governed by a board that shall—
(i) consist of residents of the community and business
and civic leaders; and
(ii) have as a principal purpose planning, devel-
oping, or managing low-income housing or community
development projects.
(D) GEOGRAPHIC DISTRIBUTION.—In making grants to
carry out this paragraph, the Secretary shall take into con-
sideration the geographic distribution of funding among
States and the relative proportion of funding among rural
and urban areas.
(E) RESERVATION.—Of the amounts made available to
carry out this paragraph, the Secretary may reserve not
more than 1 percent for each fiscal year to make grants to
private, nonprofit organizations or to enter into contracts
with private, nonprofit, or for-profit organizations to pro-
vide technical assistance to aid community development
corporations in developing or implementing activities fund-
ed to carry out this paragraph and to evaluate activities
funded to carry out this paragraph.
(3) RURAL COMMUNITY DEVELOPMENT ACTIVITIES.—The Sec-
retary shall provide the assistance described in paragraph (1)
for rural community development activities, which shall include
providing—
(A) grants to private, nonprofit organizations to enable
the organizations to provide assistance concerning home re-
pair to rural low-income families and planning and devel-
oping low-income rural rental housing units; and
(B) grants to multi-State, regional, private, nonprofit or-
ganizations to enable the organizations to provide training
and technical assistance to small, rural communities con-
cerning meeting their community facility needs.
(4) BROADBAND NAVIGATOR PROJECTS.—
(A) NAVIGATOR PROJECT AUTHORITY.—The Secretary is
authorized to provide assistance described in paragraph (1)
for broadband navigator projects consistent with the pur-
poses of this Act to address the educational and economic
needs of low-income individuals and communities.
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114
(B) NAVIGATOR GRANTS.—The Secretary shall make
grants consistent with subparagraph (A) to community ac-
tion agencies and Tribal grantees to enable them to provide
assistance through trained navigators to low-income indi-
viduals and communities to help facilitate access to afford-
able high-speed broadband service, internet-enabled de-
vices, digital literacy training, technical support, and other
services to meet the broadband and digital needs of such
individuals and communities.
(C) PRIORITY.—Priority in the awarding of such grants
under paragraph (4) shall be given to community action
agencies and Tribal grantees serving underserved areas
with the most significant unmet broadband and digital
needs.
(D) TECHNICAL ASSISTANCE.—Of the amounts made
available to carry out broadband navigator projects, the
Secretary may reserve up to 5 percent for grant review,
technical assistance, and evaluation.
(b) EVALUATION.—The Secretary shall require all activities receiv-
ing assistance under this section to be evaluated for their effective-
ness. Funding for such evaluations shall be provided as a stated
percentage of the assistance or through a separate grant or contract
awarded by the Secretary specifically for the purpose of evaluation
of a particular activity or group of activities.
(c) ANNUAL REPORT.—The Secretary shall compile an annual re-
port containing a summary of the evaluations required under sub-
section (b) and a listing of all activities assisted under this section.
The Secretary shall annually submit such report to the chairperson
of the Committee on Education and Labor of the House of Rep-
resentatives and the chairperson of the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate.
SEC. 691. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appropriated to
carry out this subtitle (excluding section 690)—
(1) $1,000,000,000 for each of fiscal years 2023 through 2027;
and
(2) such sums as may be necessary for fiscal years 2028
through 2032.
(b) DISCRETIONARY PROGRAMS.—There are authorized to be ap-
propriated to carry out section 690 such sums as may be necessary
for fiscal years 2023 through 2032.
(c) RESERVATIONS BY THE SECRETARY.—Of the amounts appro-
priated under subsection (a) for each fiscal year, the Secretary shall
reserve—
(1) 1⁄2 of 1 percent for carrying out section 675 (relating to
grants to territories);
(2) 2 percent for activities authorized in section 682(a)(1), of
which—
(A) not less than 50 percent of the amount reserved by the
Secretary under this paragraph shall be awarded through
grants, contracts, or cooperative agreements to eligible enti-
ties, Tribal grantees, and other community services network
organizations described in section 682(b), for the purpose of
carrying out activities described in section 682(a)(1)(B); and
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(B) the remainder of the amount reserved by the Sec-
retary under this paragraph may be awarded through
grants, contracts, or cooperative agreements to eligible enti-
ties, Tribal grantees, and other community services network
organizations described in section 682(b), or other entities
with demonstrated expertise in providing training for indi-
viduals and organizations on methods of effectively ad-
dressing the needs of low-income families and communities
and, if appropriate, expertise in Tribal issues;
(3) 1 percent for the Community Action Innovations Program
authorized in section 682(a)(2); and
(4) up to $5,000,000 for each of the fiscal years 2023, 2024,
and 2025, to carry out section 686(b)(3).
SEC. 692. REFERENCES.
A reference in any provision of law to the poverty line set forth
in section 624 or 625 of the Economic Opportunity Act of 1964 shall
be construed to be a reference to the poverty line defined in section
673 of this subtitle. Except as otherwise provided, any reference in
any provision of law to any community action agency designated
under title II of the Economic Opportunity Act of 1964 shall be con-
strued to be a reference to an entity eligible to receive funds under
the community services block grant program.
* * * * * * *
OLDER AMERICANS ACT OF 1965
* * * * * * *
TITLE III—GRANTS FOR STATE AND COMMUNITY
PROGRAMS ON AGING
PART A—GENERAL PROVISIONS
* * * * * * *
AREA PLANS
SEC. 306. (a) Each area agency on aging designated under section
305(a)(2)(A) shall, in order to be approved by the State agency, pre-
pare and develop an area plan for a planning and service area for
a two-, three-, or four-year period determined by the State agency,
with such annual adjustments as may be necessary. Each such
plan shall be based upon a uniform format for area plans within
the State prepared in accordance with section 307(a)(1). Each such
plan shall—
(1) provide, through a comprehensive and coordinated sys-
tem, for supportive services, nutrition services, and, where ap-
propriate, for the establishment, maintenance, modernization,
or construction of multipurpose senior centers (including a plan
to use the skills and services of older individuals in paid and
unpaid work, including multigenerational and older individual
to older individual work), within the planning and service area
covered by the plan, including determining the extent of need
for supportive services, nutrition services, and multipurpose
senior centers in such area (taking into consideration, among
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116
other things, the number of older individuals with low incomes
residing in such area, the number of older individuals who
have greatest economic need (with particular attention to low-
income older individuals, including low-income minority older
individuals, older individuals with limited English proficiency,
and older individuals residing in rural areas) residing in such
area, the number of older individuals who have greatest social
need (with particular attention to low-income older individuals,
including low-income minority older individuals, older individ-
uals with limited English proficiency, and older individuals re-
siding in rural areas) residing in such area,the number of older
individuals at risk for institutional placement residing in such
area, and the number of older individuals who are Indians re-
siding in such area, and the efforts of voluntary organizations
in the community), evaluating the effectiveness of the use of
resources in meeting such need, and entering into agreements
with providers of supportive services, nutrition services, or
multipurpose senior centers in such area, for the provision of
such services or centers to meet such need;
(2) provide assurances that an adequate proportion, as re-
quired under section 307(a)(2), of the amount allotted for part
B to the planning and service area will be expended for the de-
livery of each of the following categories of services—
(A) services associated with access to services (transpor-
tation, health services (including mental and behavioral
health services), outreach, information and assistance
(which may include information and assistance to con-
sumers on availability of services under part B and how to
receive benefits under and participate in publicly sup-
ported programs for which the consumer may be eligible),
and case management services);
(B) in-home services, including supportive services for
families of older individuals with Alzheimer’s disease and
related disorders with neurological and organic brain dys-
function; and
(C) legal assistance;
and assurances that the area agency on aging will report annu-
ally to the State agency in detail the amount of funds ex-
pended for each such category during the fiscal year most re-
cently concluded;
(3)(A) designate, where feasible, a focal point for comprehen-
sive service delivery in each community, giving special consid-
eration to designating multipurpose senior centers (including
multipurpose senior centers operated by organizations referred
to in paragraph (6)(C)) as such focal point; and
(B) specify, in grants, contracts, and agreements imple-
menting the plan, the identity of each focal point so des-
ignated;
(4)(A)(i)(I) provide assurances that the area agency on aging
will—
(aa) set specific objectives, consistent with State policy,
for providing services to older individuals with greatest
economic need, older individuals with greatest social need,
and older individuals at risk for institutional placement;
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(bb) include specific objectives for providing services to
low-income minority older individuals, older individuals
with limited English proficiency, and older individuals re-
siding in rural areas; and
(II) include proposed methods to achieve the objectives de-
scribed in items (aa) and (bb) of subclause (I);
(ii) provide assurances that the area agency on aging will in-
clude in each agreement made with a provider of any service
under this title, a requirement that such provider will—
(I) specify how the provider intends to satisfy the service
needs of low-income minority individuals, older individuals
with limited English proficiency, and older individuals re-
siding in rural areas in the area served by the provider;
(II) to the maximum extent feasible, provide services to
low-income minority individuals, older individuals with
limited English proficiency, and older individuals residing
in rural areas in accordance with their need for such serv-
ices; and
(III) meet specific objectives established by the area
agency on aging, for providing services to low-income mi-
nority individuals, older individuals with limited English
proficiency, and older individuals residing in rural areas
within the planning and service area; and
(iii) with respect to the fiscal year preceding the fiscal year
for which such plan is prepared—
(I) identify the number of low-income minority older in-
dividuals in the planning and service area;
(II) describe the methods used to satisfy the service
needs of such minority older individuals; and
(III) provide information on the extent to which the area
agency on aging met the objectives described in clause (i);
(B) provide assurances that the area agency on aging will
use outreach efforts that will—
(i) identify individuals eligible for assistance under this
Act, with special emphasis on—
(I) older individuals residing in rural areas;
(II) older individuals with greatest economic need
(with particular attention to low-income minority indi-
viduals and older individuals residing in rural areas);
(III) older individuals with greatest social need (with
particular attention to low-income minority individ-
uals and older individuals residing in rural areas);
(IV) older individuals with severe disabilities;
(V) older individuals with limited English pro-
ficiency;
(VI) older individuals with Alzheimer’s disease and
related disorders with neurological and organic brain
dysfunction (and the caretakers of such individuals);
and
(VII) older individuals at risk for institutional place-
ment, specifically including survivors of the Holocaust;
and
(ii) inform the older individuals referred to in subclauses
(I) through (VII) of clause (i), and the caretakers of such
individuals, of the availability of such assistance; and
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118
(C) contain an assurance that the area agency on aging will
ensure that each activity undertaken by the agency, including
planning, advocacy, and systems development, will include a
focus on the needs of low-income minority older individuals
and older individuals residing in rural areas;
(5) provide assurances that the area agency on aging will co-
ordinate planning, identification, assessment of needs, and pro-
vision of services for older individuals with disabilities, with
particular attention to individuals with severe disabilities and
individuals at risk for institutional placement, with agencies
that develop or provide services for individuals with disabil-
ities;
(6) provide that the area agency on aging will—
(A) take into account in connection with matters of gen-
eral policy arising in the development and administration
of the area plan, the views of recipients of services under
such plan;
(B) serve as the advocate and focal point for older indi-
viduals within the community by (in cooperation with
agencies, organizations, and individuals participating in
activities under the plan) monitoring, evaluating, and com-
menting upon all policies, programs, hearings, levies, and
community actions which will affect older individuals;
(C)(i) where possible, enter into arrangements with orga-
nizations providing day care services for children, assist-
ance to older individuals caring for relatives who are chil-
dren, and respite for families, so as to provide opportuni-
ties for older individuals to aid or assist on a voluntary
basis in the delivery of such services to children, adults,
and families;
(ii) if possible regarding the provision of services under
this title, enter into arrangements and coordinate with or-
ganizations that have a proven record of providing services
to older individuals, that—
(I) were officially designated as community action
agencies or community action programs under section
210 of the Economic Opportunity Act of 1964 (42
U.S.C. 2790) for fiscal year 1981, and did not lose the
designation as a result of failure to comply with such
Act; or
(II) came into existence during fiscal year 1982 or
subsequent years as direct successors in interest to
such community action agencies or community action
programs;
and that meet the requirements under øsection 676B of
the Community Services Block Grant Act¿ section 680(c) of
the Community Services Block Grant Act; and
(iii) make use of trained volunteers in providing direct
services delivered to older individuals and individuals with
disabilities needing such services and, if possible, work in
coordination with organizations that have experience in
providing training, placement, and stipends for volunteers
or participants (such as organizations carrying out Federal
service programs administered by the Corporation for Na-
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119
tional and Community Service), in community service set-
tings;
(D) establish an advisory council consisting of older indi-
viduals (including minority individuals and older individ-
uals residing in rural areas) who are participants or who
are eligible to participate in programs assisted under this
Act, family caregivers of such individuals, representatives
of older individuals, service providers, representatives of
the business community, local elected officials, providers of
veterans’ health care (if appropriate), and the general pub-
lic, to advise continuously the area agency on aging on all
matters relating to the development of the area plan, the
administration of the plan and operations conducted under
the plan;
(E) establish effective and efficient procedures for coordi-
nation of—
(i) entities conducting programs that receive assist-
ance under this Act within the planning and service
area served by the agency; and
(ii) entities conducting other Federal programs for
older individuals at the local level, with particular em-
phasis on entities conducting programs described in
section 203(b), within the area;
(F) in coordination with the State agency and with the
State agency responsible for mental and behavioral health
services, increase public awareness of mental health dis-
orders, remove barriers to diagnosis and treatment, and
coordinate mental and behavioral health services (includ-
ing mental health screenings) provided with funds ex-
pended by the area agency on aging with mental and be-
havioral health services provided by community health
centers and by other public agencies and nonprofit private
organizations;
(G) if there is a significant population of older individ-
uals who are Indians in the planning and service area of
the area agency on aging, the area agency on aging shall
conduct outreach activities to identify such individuals in
such area and shall inform such individuals of the avail-
ability of assistance under this Act;
(H) in coordination with the State agency and with the
State agency responsible for elder abuse prevention serv-
ices, increase public awareness of elder abuse, neglect, and
exploitation, and remove barriers to education, prevention,
investigation, and treatment of elder abuse, neglect, and
exploitation, as appropriate; and
(I) to the extent feasible, coordinate with the State agency to
disseminate information about the State assistive technology
entity and access to assistive technology options for serving
older individuals;
(7) provide that the area agency on aging shall, consistent
with this section, facilitate the area-wide development and im-
plementation of a comprehensive, coordinated system for pro-
viding long-term care in home and community-based settings,
in a manner responsive to the needs and preferences of older
individuals and their family caregivers, by—
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(A) collaborating, coordinating activities, and consulting
with other local public and private agencies and organiza-
tions responsible for administering programs, benefits, and
services related to providing long-term care;
(B) conducting analyses and making recommendations
with respect to strategies for modifying the local system of
long-term care to better—
(i) respond to the needs and preferences of older in-
dividuals and family caregivers;
(ii) facilitate the provision, by service providers, of
long-term care in home and community-based settings;
and
(iii) target services to older individuals at risk for in-
stitutional placement, to permit such individuals to re-
main in home and community-based settings;
(C) implementing, through the agency or service pro-
viders, evidence-based programs to assist older individuals
and their family caregivers in learning about and making
behavioral changes intended to reduce the risk of injury,
disease, and disability among older individuals; and
(D) providing for the availability and distribution
(through public education campaigns, Aging and Disability
Resource Centers, the area agency on aging itself, and
other appropriate means) of information relating to—
(i) the need to plan in advance for long-term care;
and
(ii) the full range of available public and private
long-term care (including integrated long-term care)
programs, options, service providers, and resources;
(8) provide that case management services provided under
this title through the area agency on aging will—
(A) not duplicate case management services provided
through other Federal and State programs;
(B) be coordinated with services described in subpara-
graph (A); and
(C) be provided by a public agency or a nonprofit private
agency that—
(i) gives each older individual seeking services under
this title a list of agencies that provide similar serv-
ices within the jurisdiction of the area agency on
aging;
(ii) gives each individual described in clause (i) a
statement specifying that the individual has a right to
make an independent choice of service providers and
documents receipt by such individual of such state-
ment;
(iii) has case managers acting as agents for the indi-
viduals receiving the services and not as promoters for
the agency providing such services; or
(iv) is located in a rural area and obtains a waiver
of the requirements described in clauses (i) through
(iii);
(9) provide assurances that—
(A) the area agency on aging, in carrying out the State
Long-Term Care Ombudsman program under section
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121
307(a)(9), will expend not less than the total amount of
funds appropriated under this Act and expended by the
agency in fiscal year 2019 in carrying out such a program
under this title; and
(B) funds made available to the area agency on aging
pursuant to section 712 shall be used to supplement and
not supplant other Federal, State, and local funds ex-
pended to support activities described in section 712;
(10) provide a grievance procedure for older individuals who
are dissatisfied with or denied services under this title;
(11) provide information and assurances concerning services
to older individuals who are Native Americans (referred to in
this paragraph as ‘‘older Native Americans’’), including—
(A) information concerning whether there is a significant
population of older Native Americans in the planning and
service area and if so, an assurance that the area agency
on aging will pursue activities, including outreach, to in-
crease access of those older Native Americans to programs
and benefits provided under this title;
(B) an assurance that the area agency on aging will, to
the maximum extent practicable, coordinate the services
the agency provides under this title with services provided
under title VI; and
(C) an assurance that the area agency on aging will
make services under the area plan available, to the same
extent as such services are available to older individuals
within the planning and service area, to older Native
Americans; and
(12) provide that the area agency on aging will establish pro-
cedures for coordination of services with entities conducting
other Federal or federally assisted programs for older individ-
uals at the local level, with particular emphasis on entities
conducting programs described in section 203(b) within the
planning and service area.
(13) provide assurances that the area agency on aging will—
(A) maintain the integrity and public purpose of services
provided, and service providers, under this title in all con-
tractual and commercial relationships;
(B) disclose to the Assistant Secretary and the State
agency—
(i) the identity of each nongovernmental entity with
which such agency has a contract or commercial rela-
tionship relating to providing any service to older indi-
viduals; and
(ii) the nature of such contract or such relationship;
(C) demonstrate that a loss or diminution in the quan-
tity or quality of the services provided, or to be provided,
under this title by such agency has not resulted and will
not result from such contract or such relationship;
(D) demonstrate that the quantity or quality of the serv-
ices to be provided under this title by such agency will be
enhanced as a result of such contract or such relationship;
and
(E) on the request of the Assistant Secretary or the
State, for the purpose of monitoring compliance with this
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122
Act (including conducting an audit), disclose all sources
and expenditures of funds such agency receives or expends
to provide services to older individuals;
(14) provide assurances that preference in receiving services
under this title will not be given by the area agency on aging
to particular older individuals as a result of a contract or com-
mercial relationship that is not carried out to implement this
title;
(15) provide assurances that funds received under this title
will be used—
(A) to provide benefits and services to older individuals,
giving priority to older individuals identified in paragraph
(4)(A)(i); and
(B) in compliance with the assurances specified in para-
graph (13) and the limitations specified in section 212;
(16) provide, to the extent feasible, for the furnishing of serv-
ices under this Act, consistent with self-directed care;
(17) include information detailing how the area agency on
aging will coordinate activities, and develop long-range emer-
gency preparedness plans, with local and State emergency re-
sponse agencies, relief organizations, local and State govern-
ments, and any other institutions that have responsibility for
disaster relief service delivery;
(18) provide assurances that the area agency on aging will
collect data to determine—
(A) the services that are needed by older individuals
whose needs were the focus of all centers funded under
title IV in fiscal year 2019; and
(B) the effectiveness of the programs, policies, and serv-
ices provided by such area agency on aging in assisting
such individuals; and
(19) provide assurances that the area agency on aging will
use outreach efforts that will identify individuals eligible for
assistance under this Act, with special emphasis on those indi-
viduals whose needs were the focus of all centers funded under
title IV in fiscal year 2019.
(b)(1) An area agency on aging may include in the area plan an
assessment of how prepared the area agency on aging and service
providers in the planning and service area are for any anticipated
change in the number of older individuals during the 10-year pe-
riod following the fiscal year for which the plan is submitted.
(2) Such assessment may include—
(A) the projected change in the number of older individuals
in the planning and service area;
(B) an analysis of how such change may affect such individ-
uals, including individuals with low incomes, individuals with
greatest economic need, minority older individuals, older indi-
viduals residing in rural areas, and older individuals with lim-
ited English proficiency;
(C) an analysis of how the programs, policies, and services
provided by such area agency can be improved, and how re-
source levels can be adjusted to meet the needs of the changing
population of older individuals in the planning and service
area; and
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123
(D) an analysis of how the change in the number of individ-
uals age 85 and older in the planning and service area is ex-
pected to affect the need for supportive services.
(3) An area agency on aging, in cooperation with government offi-
cials, State agencies, tribal organizations, or local entities, may
make recommendations to government officials in the planning and
service area and the State, on actions determined by the area agen-
cy to build the capacity in the planning and service area to meet
the needs of older individuals for—
(A) health and human services;
(B) land use;
(C) housing;
(D) transportation;
(E) public safety;
(F) workforce and economic development;
(G) recreation;
(H) education;
(I) civic engagement;
(J) emergency preparedness;
(K) protection from elder abuse, neglect, and exploitation;
(L) assistive technology devices and services; and
(M) any other service as determined by such agency.
(c) Each State, in approving area agency on aging plans under
this section, shall waive the requirement described in paragraph
(2) of subsection (a) for any category of services described in such
paragraph if the area agency on aging demonstrates to the State
agency that services being furnished for such category in the area
are sufficient to meet the need for such services in such area and
had conducted a timely public hearing upon request.
(d)(1) Subject to regulations prescribed by the Assistant Sec-
retary, an area agency on aging designated under section
305(a)(2)(A) or, in areas of a State where no such agency has been
designated, the State agency, may enter into agreement with agen-
cies administering programs under the Rehabilitation Act of 1973,
and titles XIX and XX of the Social Security Act for the purpose
of developing and implementing plans for meeting the common
need for transportation services of individuals receiving benefits
under such Acts and older individuals participating in programs
authorized by this title.
(2) In accordance with an agreement entered into under para-
graph (1), funds appropriated under this title may be used to pur-
chase transportation services for older individuals and may be
pooled with funds made available for the provision of transpor-
tation services under the Rehabilitation Act of 1973, and titles XIX
and XX of the Social Security Act.
(e) An area agency on aging may not require any provider of
legal assistance under this title to reveal any information that is
protected by the attorney-client privilege.
(f)(1) If the head of a State agency finds that an area agency on
aging has failed to comply with Federal or State laws, including
the area plan requirements of this section, regulations, or policies,
the State may withhold a portion of the funds to the area agency
on aging available under this title.
(2)(A) The head of a State agency shall not make a final deter-
mination withholding funds under paragraph (1) without first af-
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124
fording the area agency on aging due process in accordance with
procedures established by the State agency.
(B) At a minimum, such procedures shall include procedures
for—
(i) providing notice of an action to withhold funds;
(ii) providing documentation of the need for such action; and
(iii) at the request of the area agency on aging, conducting
a public hearing concerning the action.
(3)(A) If a State agency withholds the funds, the State agency
may use the funds withheld to directly administer programs under
this title in the planning and service area served by the area agen-
cy on aging for a period not to exceed 180 days, except as provided
in subparagraph (B).
(B) If the State agency determines that the area agency on aging
has not taken corrective action, or if the State agency does not ap-
prove the corrective action, during the 180-day period described in
subparagraph (A), the State agency may extend the period for not
more than 90 days.
(g) Nothing in this Act shall restrict an area agency on aging
from providing services not provided or authorized by this Act, in-
cluding through—
(1) contracts with health care payers;
(2) consumer private pay programs; or
(3) other arrangements with entities or individuals that in-
crease the availability of home- and community-based services
and supports.
* * * * * * *
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MINORITY VIEWS
INTRODUCTION
The CSBG program has a laudable goal but has been ineffective
in achieving it. Rather than lifting those in need out of poverty, the
program has kept millions locked into the cycle of poverty without
providing them a means of escape. The nation’s federal welfare pro-
grams should be a temporary safety net for Americans with the
greatest need, not a false promise to those trapped in intergenera-
tional poverty.
H.R. 5129, the Community Services Block Grant Modernization
Act, fails to bring needed reforms to the CSBG program, including
effective oversight to ensure the program’s grants fund entities
with a proven track record of success. It also removes important
provisions from current law that protect the religious character of
faith-based organizations that participate in the CSBG program.
FAITH-BASED ORGANIZATIONS
This legislation discourages faith-based charities from operating
according to their beliefs, undermining the bill’s intent to help
Americans in need. Motivated by their religious beliefs, people of
faith have been serving needy Americans since our country’s found-
ing. Religious organizations, from churches to non-profits, have
been a central part of efforts to relieve poverty across the nation.
They play a distinctive role in the front lines of the fight against
poverty.
This point was emphasized during a congressional hearing held
on November 3, 2021. Mr. Clarence Carter, Commissioner of the
Tennessee Department of Human Services, explained how the com-
munity of faith is an ‘‘invaluable partner . . . in serving economi-
cally, socially, and developmentally vulnerable individuals and
families.’’ Commissioner Carter further argued that it is important
to combine ‘‘transaction with relationship’’ when it comes to struc-
turing effective anti-poverty programs.1 While the government can
successfully engage in transactions, it is not good at building rela-
tionships. Faith-based providers, on the other hand, can connect
with individuals not only on a personal level but on a spiritual one.
This gives them a better foundation on which to build a meaningful
relationship to better help and serve those in need.
Understanding the important role faith-based providers play in
combatting poverty, it is disappointing to see Democrats take a
monumental step to inhibit the participation of these valuable part-
ners. H.R. 5129 suggests that they need to hide the very faith that
1 Clarence Carter, Congressional Hearing on November 3, 2021, ‘‘A Call to Action: Modern-
izing the Community Services Block Grant.’’ https://republicans-edlabor.house.gov/calendar/
eventsingle.aspx?EventID=407829
(125)
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126
motivates them to serve those in need. The changes laid out in this
legislation suggest that faith-based organizations should alter their
hiring practices and should remove religious art and symbols from
their facilities to participate in the CSBG program. This change to
the law discounts the decades of care and aid that people of faith
have provided to Americans in need.
During the markup, Democrats claimed that current law protec-
tions for faith-based providers, which have been in place for nearly
25 years and were enacted on a bipartisan basis, allow religious or-
ganizations to discriminate against program beneficiaries.2 How-
ever, these protections do no such thing. Over 19,000 faith-based
organizations currently participate in the CSBG program and have
been recognized as important partners in serving all eligible indi-
viduals who walk through the door in need of assistance. In keep-
ing with the First Amendment, religious organizations that partici-
pate in CSBG are simply afforded the assurance that they can live
out their faith according to their beliefs while participating in the
program and serving those who seek help from them.
The Democrats’ removal of this language amounts to an attack
on religious liberty. As a coalition letter led by the International
Religious Freedom Alliance put it, the changes in H.R. 5129 ‘‘will
be detrimental to the participation of faith-based organizations
[and] will create a bad precedent by signaling that Congress is no
longer committed to equal opportunity for service organizations of
every faith . . .’’ 3 Discouraging faith-based providers from partici-
pating in the CSBG program simply because of their faith would
significantly set back our anti-poverty efforts. Instead of requiring
organizations to check their faith at the door and thereby discour-
aging them from continuing their work, we should welcome every
effort to care for needy families. Anything less detracts from
CSBG’s main goal: helping others.
ACCOUNTABILITY
Republicans recognize the necessity of a federal safety net to as-
sist those most in need. However, taxpayers should not be required
to bankroll programs that do not work. This bill will allow states
to continue setting their own benchmarks for progress and will
allow ineffective programs to continue to receive funds despite poor
performance.
As introduced, H.R. 5129 also allows CSBG funds to serve as the
non-federal match in other federal programs, but Committee Re-
publicans, led by Rep. Lisa McClain (R–MI), were able to secure an
amendment to strip this problematic provision from the bill. The
goal of non-federal match requirements is to increase buy-in from
outside entities in the community. These requirements ensure that
communities are investing in the programs that are serving their
citizens, that they are deciding what is best for themselves, and
that they have a seat at the table. Match requirements mean
stronger programs and better outcomes.
2 Coalition Letter for the Record, Led by Stanley Carlson-Theis with the Institutional Reli-
gious Freedom Alliance, March 14, 2022.
3 Ibid.
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127
The legislation also directs the CSBG program’s tripartite boards
to create their own conflict of interest policy, leaving open the pos-
sibility that board members, their families, or their organizations
could benefit financially from CSBG. This threatens to undermine
proper management of the program. It should be made clear that
board members must work on behalf of low-income individuals, not
for their own personal benefit. Committee Republicans believe
there should be clear guardrails for board accountability in place
and it is unfortunate that Rep. Letlow’s (R–LA) amendment to put
in such guardrails was rejected.
THE IMPORTANCE OF WORK
H.R. 5129 also removes a current law requirement for states and
grantees to coordinate employment and skills development activi-
ties with state and local workforce systems under the Workforce In-
novation and Opportunity Act (WIOA), the country’s main work-
force development law. By doing so, H.R. 5129 undermines efforts
to create a seamless workforce system, allowing for duplicative pro-
grams that will waste taxpayer dollars. This undermines the effi-
cient use of government funds and curtails the number of recipi-
ents benefitting from the programs. To improve access to workforce
development services, Rep. Diana Harshbarger (R–TN) successfully
offered an amendment to reinstate this important requirement to
coordinate these services under the law.
HEALTH SERVICES AND ABORTION
H.R. 5129 also includes an overly vague provision directing tax-
payer dollars to fund programs and services ‘‘to address health
needs and improve health and well-being’’ and ‘‘to identify and re-
spond to physical and behavioral health challenges.’’ Not only is
this a bad use of these limited taxpayer dollars, but also this am-
biguous language opens the possibility that, instead of helping peo-
ple address acute needs, abortions would be paid for with taxpayer
dollars. This Congress, Democrats almost universally endorsed
eliminating the Hyde Amendment, a long-standing and bipartisan
provision that protects taxpayer dollars from funding abortion.
Combined, these two developments could pave the way for tax-
payer-funded abortions. Committee Republicans are committed to
ensuring that long-standing Hyde protections remain in place and
that federal programs do not betray the trust of the American tax-
payers. Taxpayers should not be forced to violate their conscience
or religious beliefs by being forced to fund abortions.
REJECTED AMENDMENTS THAT WOULD HAVE IMPROVED THE BILL
During consideration of H.R. 5129, Committee Republicans of-
fered several amendments to improve the bill. Unfortunately, most
of the amendments were rejected by the Democrats. Those amend-
ments were as follows:
• Rep. Tim Walberg (R–MI) offered an amendment that would
protect religious organizations and ensure they can exercise
their faith while serving needy families. Contrary to the Demo-
crats’ claims during the debate, this amendment would not
allow faith-based organizations to discriminate against pro-
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128
gram beneficiaries because of their religion. It would instead
protect the ability of these organizations to serve others in a
manner informed by their faith, as they have successfully done
for decades.
• Rep. Glenn Grothman (R–WI) offered an amendment that
would restore pre-pandemic eligibility requirements to the
CSBG program—keeping eligibility at the poverty line to help
those most in need. It would also continue to give states the
option to increase eligibility to 125 percent of the poverty line
if needed. This amendment would have ensured that taxpayer
dollars are used as effectively as possible.
• Rep. Bob Good (R–VA) offered an amendment that would
have prohibited CSBG funds from being used to reimburse
health care services in order to ensure such funds could not be
used to fund abortions. The right to life is the most funda-
mental of rights and Committee Republicans are dedicated to
ensuring that all human life is protected under the law. Tax-
payer dollars should never be used to fund abortions and this
amendment would have guaranteed that for the CSBG pro-
gram.
• Rep. Madison Cawthorn (R–NC) offered an amendment that
would have struck a provision in the bill that permits eligible
entities to use their facilities for increasing voter registration
and would have prohibited the use of CSBG funds for lobbying
activities. Democrats rejected this commonsense amendment
despite this program’s goal being to alleviate poverty rather
than promote political activity.
• Rep. Letlow offered an amendment that would have struck
a provision from the bill that permits tripartite boards to cre-
ate their own conflict of interest policy and replaced it with a
policy that prohibits board members, their immediate family
members, or their organization from receiving direct financial
benefit from the CSBG program, exempting low-income board
members from this policy. While Democrats expressed willing-
ness to work to address this issue, they ultimately rejected the
amendment despite Committee Republican calls to accept it
during the markup rather than punt the issue until Floor con-
sideration.
ADOPTED AMENDMENTS THAT WILL IMPROVE THE BILL
Democrats adopted two amendments offered by Committee Re-
publicans to improve the bill. Those amendments were as follows:
• Rep. Harshbarger offered an amendment that would require
states to provide an assurance that they will coordinate em-
ployment and skills development activities with state and local
workforce systems under WIOA.
• Rep. McClain offered an amendment to strike language from
the bill that allows funds under the new Community Action In-
novations program to fulfill non-federal match requirements
for the purposes of meeting such requirements in other federal
programs.
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129
CONCLUSION
As outlined in these Minority Views, H.R. 5129 worsens current
federal law rather than providing needed reforms. By removing
protections for faith-based organizations while also failing to incor-
porate important oversight requirements, this reauthorization will
reduce the likelihood that low-income Americans receive the help
they need.
Republicans offered numerous amendments that would help set
this reauthorization on the right path and would ensure it fulfills
the goals it sets out to accomplish: to serve low-income Americans
and help them rise out of poverty. Unfortunately, Democrats did
not take the necessary steps to remedy the multiple problems with-
in this legislation, moving it further away from the goal of helping
Americans most in need.
VIRGINIA FOXX,
Ranking Member.
JOE WILSON.
TIM WALBERG.
GLENN GROTHMAN.
RICK W. ALLEN.
JIM BANKS.
BOB GOOD.
LISA C. MCCLAIN.
MADISON CAWTHORN.
JULIA LETLOW.
CHRIS JACOBS.
Æ
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