Sec. 2. Consolidation of antipoverty programs

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In this section: The term antipoverty objectives means the objectives described in subsection (b)(2). The term antipoverty program means the set of activities for which a covered amount may be used. Subject to subparagraph (B), the term covered amount means— an amount that a State is eligible to receive in Federal funds, through a grant, contract, or other payment— under subsection

(a)or

(h)of section 16 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2025 ) (relating to the supplemental nutrition assistance program); for benefits (as defined in section 3 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2012 )) for participants of the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 ( 7 U.S.C. 2011 et seq. ) pursuant to section 4(a)(1) of that Act ( 7 U.S.C. 2013(a)(1) ); under paragraph

(1)or

(2)of section 403(a) of the Social Security Act ( 42 U.S.C. 603(a) ) (relating to the temporary assistance for needy families program State family assistance grant); under section 658O(b) of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858m(b) ), from amounts appropriated under that Act or under section 418(a)(3)(A) of the Social Security Act ( 42 U.S.C. 618(a)(3)(A) ) (relating to a program of child care services); under section 2604 (other than subsection (e)), 2607A, 2607B, or 2609A of the Low-Income Home Energy Assistance Act of 1981 ( 42 U.S.C. 8623 , 8626a, 8626b, or 8628a) (relating to programs of home energy assistance); under section 132(b)(2)(B) or section 170 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3171(b)(2)(B) , 3225) (relating to assistance for dislocated workers); and under subsection

(b)or

(d)of section 106 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5306 ) (relating to community development); the amount that public housing agencies, as defined in section 3(b) of the United States Housing Act of 1937 ( 42 U.S.C. 1437a(b) ), located in a State are eligible to receive through allocations— under section 8(o) of such Act ( 42 U.S.C. 1437f(o) ) for tenant-based assistance; and under section 9 of such Act ( 42 U.S.C. 1437g ) for public housing from the Capital Fund and Operating Fund; and the amount that persons and families located in a State (other than members of an Indian tribe) are eligible to receive in Federal assistance under section 521 of the Housing Act of 1949 ( 42 U.S.C. 1490a ). The term covered amount — includes an amount described in subparagraph

(A)whether or not the State or public housing agency involved is directed to use the amount to provide funding for localities or other entities under Federal law, subject to clause (ii); and does not include any amount described in subparagraph

(A)that a State or public housing agency is so directed to use to provide funding for an Indian tribe. The term direct assistance benefits means— nutrition (including food) benefits; cash benefits for low-income families and individuals; child care subsidies; home energy (including utility) assistance; employment and training services provided directly to a dislocated worker; and housing (including rent) subsidies. The term Indian tribe has the meaning given the term in section 4 of the Indian Self-Determination and Education Act ( 25 U.S.C. 5304 ). The term Marginal Effective Tax Rate , used with respect to an individual, means the percentage of an increase in earned income attributable to the individual's employment, as determined for a State under subsection (j)(2), that is offset by— the combined reduction or loss in value of per-capita direct assistance for the individual; and the combined increase in Federal, State, and local income and payroll taxes for the individual. The term per-capita direct assistance , used with respect to a State, means— the total amount of Federal funding used in a pilot project in any year for direct assistance benefits from the funding sources listed in paragraph (3); divided by the population of the State. The term Secretary means the Secretary of Health and Human Services, acting through the Assistant Secretary for Children and Families. The term State means each of the several States of the United States, and the District of Columbia. The purposes of this Act are— to achieve the goals of— streamlining service delivery and reducing inconsistent eligibility requirements and benefit cliffs through pilot projects promoting antipoverty objectives; promoting upward mobility through improved employment outcomes described in subsection (j)(2)(B), including increased employment and earnings, among participants in a pilot project; and providing incentives to States to reduce dependence on per-capita direct assistance through the pilot projects by enabling individuals to achieve the improved employment outcomes; and to accomplish those goals by authorizing States to apply to receive Upward Mobility Grants for the purpose of carrying out a pilot project to promote antipoverty objectives, consisting of— reduced benefit cliffs through benefit structures that limit Marginal Effective Tax Rates; and increased levels of employment and earnings among participants in programs covered by the pilot project, skills acquisition, housing (including rental housing) affordability, access to nutrition, reduced home energy costs, affordable child care, and temporary assistance to low-income families. There is established a pilot program through which the Secretary may— permit not more than 5 States to carry out pilot projects; and consolidate funding from antipoverty programs into Upward Mobility Grants made under subsection (d)(1), and make those grants to the States to carry out the projects. A State may elect to seek such permission and consolidated funding to carry out a limited scope pilot project described in the State’s application under subsection (f). The Secretary shall provide the permission and grants described in this subsection for a pilot project for a single period of 5 years. Notwithstanding any other provision of Federal law applicable to an antipoverty program, except as otherwise provided in this section, for each fiscal year of the pilot project period applicable to a pilot project approved for a State pursuant to subsection (g), the Secretary shall make an Upward Mobility Grant to the State, as calculated under paragraph (2), for purposes of carrying out the project for that fiscal year. For the first fiscal year of the pilot project, the Secretary shall make an Upward Mobility Grant to the State, in a sum calculated as the total of the covered amounts received by the State, for the preceding fiscal year, adjusted by the percentage change in the Personal Consumption Expenditures Price Index of the Bureau of Economic Analysis of the Department of Commerce for such preceding fiscal year. For each fiscal year of the pilot project (referred to in this subparagraph as a target fiscal year ) after the first fiscal year described in subparagraph (A), the Secretary shall make an Upward Mobility Grant to the State, in an updated sum equal to the sum calculated for the State under this paragraph for the preceding fiscal year, adjusted— by the percentage change in that Personal Consumption Expenditures Price Index between the first day of the preceding fiscal year and the first day of the target fiscal year; and in a manner consistent with the per-capita direct assistance adjustment prohibition described in subsection (k). For the purposes of determining, under subparagraph (A), a total of covered amounts for a preceding fiscal year in which there was a lapse in appropriations, the total of the covered amounts shall be determined as if the corresponding funding was appropriated for the entire fiscal year. For the purposes of determining, under subparagraph (B), a sum calculated for a State for a preceding fiscal year in which there was a lapse in appropriations, the sum shall be determined as if the corresponding funding was appropriated for the entire fiscal year. Notwithstanding subparagraphs

(A)and (B), if a State has obtained approval to carry out a limited scope pilot project under this section, the Upward Mobility Grant for the State shall be a percentage, between 10 and 100 percent, as indicated by the State in the application submitted under subsection

(f)of the amount the State would otherwise receive under subparagraph

(A)or (B). For each fiscal year quarter during the pilot project, the Secretary shall make a payment to the State under the Upward Mobility Grant, equal to 25 percent of the amount of the grant. Notwithstanding any other provision of Federal law applicable to an antipoverty program, except as otherwise provided in this section, if a State elects to carry out a pilot project and obtains approval of an application under subsection (g), the Secretary shall, subject to paragraph

(2)and consistent with the goals of the antipoverty programs included in the pilot project, grant the State, for purposes of the pilot project, such waivers to statutory or regulatory requirements, as the State requests in its application— relating to consolidating, replacing, or altering eligibility requirements; relating to the design, operation, or delivery of an antipoverty program; and relating to the use, allocation, or distribution of funding. A waiver shall not be granted under paragraph

(1)with respect to any provision of law relating to— the goals of any antipoverty program; civil rights or the prohibition of discrimination; health or safety; labor standards under the Fair Labor Standards Act of 1938 ( 29 U.S.C. 201 et seq. ); environmental protection; any restriction on providing benefits to individuals who are not citizens of or are unlawfully present in the United States; the protection of religious freedom for providers and beneficiaries of assistance; any funding restriction or limitation provided in an appropriations Act; a maintenance of effort requirement; or any requirement that a State distribute to a sub-State entity part or all of an amount paid to the State. Funds made available under a pilot project for the goals of an antipoverty program related to a covered amount described in clause (i)(VII), (ii), or

(iii)of subsection (a)(3)(A) shall continue to be provided to the same eligible local entities or recipients as under applicable law in effect as of the date of enactment of this Act. During the period of the pilot project— the State shall not be eligible to receive Federal funding for the antipoverty programs, outside the pilot project; and individuals receiving per-capita direct assistance through the pilot project shall not be eligible for additional benefits under the antipoverty programs, outside the pilot project. Notwithstanding subparagraph (A), in the case of a State carrying out a limited scope pilot project described in subsection (c)(2), the State may continue to receive Federal funding for the antipoverty programs, outside the pilot project. Notwithstanding subparagraph (A), on the request of a State carrying out a pilot project, the Secretary of Agriculture may use contingency reserve funding made available under the provisions described in clause

(ii)to provide benefits to individuals receiving per-capita direct assistance through the pilot project under the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 ( 7 U.S.C. 2011 et seq. ) during a period of economic downturn, a natural disaster, a public health emergency, or another unanticipated event that increases the demand for those benefits, as determined by the Secretary of Agriculture. The provisions referred to in clause

(i)are the following: The matter under the heading under the heading Supplemental nutrition assistance program under the heading Food and Nutrition Service in title IV of division B of the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026 ( Domestic Food Programs Public Law 119–37 ). The matter under the heading under the heading Supplemental nutrition assistance program under the heading Food and Nutrition Service in title IV of division B of the Consolidated Appropriations Act, 2024 ( Domestic Food Programs Public Law 118–42 ; 138 Stat. 93). Section 1109 of the Full-Year Continuing Appropriations and Extensions Act, 2025 ( Public Law 119–4 ; 139 Stat. 13). Notwithstanding subparagraph (A), on the request of a State carrying out a pilot project, the Secretary may use funds available under section 403(b) of the Social Security Act ( 42 U.S.C. 603(b) ) to provide benefits to individuals receiving per-capita direct assistance under the temporary assistance for needy families program established under part A of title IV of the Social Security Act ( 42 U.S.C. 601 et seq. ) through the pilot project during a period of economic downturn, a natural disaster, a public health emergency, or another unanticipated event that increases the demand for those benefits, as determined by the Secretary. Nothing in the preceding sentence shall be construed as requiring the State carrying out the pilot project to submit a request under section 403(b) of the Social Security Act ( 42 U.S.C. 603(b) ) during an eligible month (as defined in paragraph

(4)of such section) for payment of funds under such section or for the Secretary to determine that the State is an eligible State for purposes of such section. Notwithstanding subparagraph (A), on the request of a State carrying out a pilot project, the Secretary may use funds available under section 2602(e) of the Low-Income Home Energy Assistance Act of 1981 ( 42 U.S.C. 8621(e) ) (in addition to meeting the objectives described in that section) to provide benefits to households that include individuals receiving per-capita direct assistance through the pilot project under the Low-Income Home Energy Assistance Program established under that Act during a period of economic downturn, a natural disaster, a public health emergency, or another unanticipated event that increases the demand for those benefits, as determined by the Secretary. Notwithstanding subparagraph (A), nothing shall prohibit a State carrying out a pilot project from receiving an appropriation described in clause (ii), and using that appropriation to provide benefits to individuals receiving per-capita direct assistance through the pilot project. An appropriation described in this clause is an appropriation— for an antipoverty program related to a covered amount described in subsection (a)(3)(A); and made in an Act other than an regular appropriations Act. A waiver granted to a State under paragraph

(1)includes a waiver for agencies, persons, and families in the State described in clauses

(ii)and

(iii)of subsection (a)(3)(A). To be eligible to receive an Upward Mobility Grant to carry out a pilot project under this section, a State shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require, including— information stating— how the State will utilize the Upward Mobility Grant to achieve the antipoverty objectives described in subsection (b)(2)(B); how the State will achieve the goals of the antipoverty programs included in the pilot project involved, including (as applicable to the programs included) skills acquisition, housing (including rental housing) affordability, access to nutrition, reduced home energy costs, affordable child care, and temporary assistance to low-income families; and how the State will ensure that funds made available under the pilot project for the goals of an antipoverty program related to a covered amount described in clause (i)(VII), (ii), or

(iii)of subsection (a)(3)(A) shall continue to be provided to the same eligible local entities or recipients as under applicable law in effect as of the date of enactment of this Act, and information demonstrating demonstrable, substantive, and robust engagement with those local entities and recipients on the waiver provisions described in subsection (e)(1). information stating which statutory and regulatory requirements applicable to an antipoverty program the State requests to be waived, as described in subparagraphs (A), (B), and

(C)of subsection (e)(1); a description of how the State will utilize the Upward Mobility Grant funds to design and use a benefit structure for benefits and services provided through the pilot project that promotes upward mobility through improvements on the upward mobility measures outlined in subsection (j)(2); and benchmark goals for improvements on those measures; information describing— the eligibility criteria established by the State for pilot project participants; how the State, in carrying out the pilot project, will— protect beneficiary data and privacy; prevent fraudulent use of funds; and maintain clear, auditable records for all funds and services; and the program integrity measures established by the State to ensure that the State provides direct assistance benefits to eligible pilot project participants in compliance with the criteria established under subparagraph

(A)and requirements established under clauses (i), (ii), and

(iii)of subparagraph (B); information describing how the State will apply the work requirement for direct assistance benefit recipients specified in subsection (h); and information describing the program integrity measures established by the State to ensure compliance with that work requirement; information demonstrating how the State will engage nonprofit organizations, faith-based organizations, private service providers, local governments, and other local entities to deliver holistic, customized case management and a portion of the services for the pilot project; information describing how the State will evaluate the project by contracting under subsection

(j)with an independent, third-party evaluator, and will ensure the most rigorous results from the evaluation and the strongest possible measurement through the evaluation of the causal link between the State’s proposed benefit structure and the upward mobility measures listed in subsection (j)(2), including— the methodology that will be used to evaluate the pilot project; the data the State will collect and provide to the evaluator; the process by which the State will collect the data to provide to the evaluator; and information on the evaluator's qualifications, including— confirmation that the evaluator is independent from the State and from any nonprofit organizations, faith-based organizations, private service providers, local governments, and other local entities participating in the pilot project; and information stating whether the evaluator has demonstrated substantial experience in conducting rigorous evaluations, utilizing the methodology described under subparagraph (A); information— describing how the State will utilize fiscal savings resulting from improvements on upward mobility measures under subsection (j)(2) to improve program operations and infrastructure of programs covered by the pilot project, including— establishing a State reserve fund to provide temporary per-capita direct assistance benefits to eligible individuals and households during a period of economic downturn, a natural disaster, a public health emergency, or another unanticipated event that increases the demand for those benefits, as determined by the corresponding Secretary; using the savings to improve program management, eligibility verification, benefits distribution, compliance monitoring, and enforcement of the work requirement required under subsection (h); using the savings for renovation, expansion, or maintenance of community facilities to promote antipoverty objectives described in subsection (b)(2)(B); using the savings for resources for capacity-building to increase collaboration with and involvement of nonprofit organizations, faith-based organizations, private service providers, local governments, and other local entities to deliver services funded under the pilot project; using the savings to integrate program operations, improve case management, streamline client intake, or reduce administrative duplication; and providing work supports for individuals who are employed and working hours consistent with section 261.32 of title 45, Code of Federal Regulations (or a successor regulation), who are not receiving assistance through the Upward Mobility Grant; and demonstrating how the supports described in subparagraph (A)(vi) will be designed to— increase the level of hours worked for those receiving such a support; and increase the level of earnings for those receiving such a support; at the election of the State, a proposal— that describes how the State will reduce regulatory barriers for the purpose of increasing market access to, or lowering the costs of, nutrition, child care, home energy (including utilities), employment and training services for dislocated workers, or housing (including rental housing) (referred to in this paragraph as covered basics ); and that includes— identification of existing (as of the date of submission) State regulatory barriers that limit market entry to, or production or supply of, any of the covered basics; and actions the State will take to reduce, streamline, or eliminate regulations establishing such barriers; and in the case of a State seeking to carry out a limited scope pilot project— a detailed description of the more limited scope of the pilot project, including whether the project will involve a limited percentage of the individuals eligible to participate in the pilot project, a limited geographic area, a limited number of antipoverty programs, or some other limitation on the project; and information indicating the percentage described in subsection (d)(2)(D) that the State seeks to receive through the pilot program. In order for a State to receive an Upward Mobility Grant to carry out a pilot project under this section, the State shall obtain approval from the Secretary of the application for the pilot project submitted under subsection (f). On receiving the application, the Secretary shall— not later than 5 days after the date of that receipt, provide notice on the website of the Department of Health and Human Services of receipt of the application; and give interested persons, including stakeholders in the State, an opportunity to submit comments on the application for a 30-day period beginning on the date on which the Secretary provides notice under subparagraph (A). In evaluating an application to carry out a project, the Secretary shall— evaluate the application based on the extent to which the project— will achieve the antipoverty objectives described in subsection (b)(2)(B); will achieve the goals described in subsection (f)(1)(B); and will meet the requirements described in subsection (f)(1)(C) relating to provision of funds and to engagement; evaluate the application based on the extent to which the project will make improvements on the upward mobility measures described in subsection (j)(2); and consider the extent to which the methodology of the project evaluation under subsection

(j)and data collection under subsection

(f)will— produce rigorous results, using experimental designs that use— random assignment; or if random assignment is not feasible, another reliable, evidence-based research methodology that allows for the strongest practicable causal inferences; and provide sufficient contextual information on the characteristics of the population served by the project, including demographic and geographic information, to assess the applicability of the project in other settings. In determining which applications to approve under this subsection, the Secretary shall give priority to— applications for a pilot project with a program design that limits— the average Marginal Effective Tax Rate of an increase in earned income attributable to employment through the pilot project to not more than 50 percent; and the average Marginal Effective Tax Rate of an increase in such earned income to not more than 50 percent, among participants for whom such increase results in lack of eligibility for any per-capita direct assistance; applications the Secretary projects will most make improvements on the upward mobility measures described in subsection (j)(2); applications for a pilot project for which the methodology described in paragraph (3)(C) will use an experimental design that uses— random assignment; or if random assignment is not feasible— a natural experiment design; a synthetic control method; a differences-in-differences technique; a regression discontinuity method; an instrumental variable method; a panel data with mixed effects method; a propensity score matching method; or a cross-sectional regression method; applications that describe program integrity measures that will maximize compliance with— the work requirement described in subsection (h); and the requirements established under clauses (i), (ii),

(iii)of subsection (f)(3)(B). In reviewing an application, the Secretary determines that the project will not achieve the antipoverty objectives described in subsection (b)(2)(B), achieve the goals described in subsection (f)(1)(B), or meet the requirements described in subsection (f)(1)(C) relating to the provision of funds and to engagement, the Secretary shall disapprove the application. Nothing in this subparagraph shall be construed to prevent the Secretary from disapproving an application for another reason specified in this section. The Secretary shall decide whether or not to approve the application not later than 90 days after the date of receipt of the application. If the Secretary decides to disapprove the application of a State— the Secretary shall provide the State with a detailed explanation of the decision; the State may submit a modified application to the Secretary for approval; and if a modified application is submitted, the Secretary shall make a decision on approval of the application, after evaluating and giving priority as described in paragraphs

(3)and (4), not later than 30 days after the date of receipt of the modified application. The requirements under subsections

(d)and

(o)of section 6 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2015 ) shall apply to recipients of direct assistance benefits under a pilot project carried out under this section, subject to such changes to those requirements as the Secretary determines necessary. The Secretary shall— prescribe such regulations as the Secretary determines necessary and appropriate to ensure compliance with and State enforcement of the requirements described in paragraph (1); and audit the program integrity measures described in paragraphs (3)(C) and (4)(B) of subsection

(f)established by States. The Secretary shall facilitate data sharing, concerning data and other information relating to antipoverty programs, with Federal agencies and offices (other than the Administration for Children and Families of the Department of Health and Human Services) as necessary to administer the pilot program carried out under this Act. The Secretary shall cooperate with each State participating in the pilot program to coordinate access by Federal agencies and offices to data and other information relating to antipoverty programs included in the State’s pilot project. Each State that carries out a pilot project under this Act shall enter into a contract for an annual independent, third-party evaluation of the pilot project, for purposes of determining, for purposes of this section— per-capita direct assistance, and per-capita direct assistance described in paragraph (2)(C); and improvement on the upward mobility measures described in paragraph (2), as described in paragraph (3). The evaluator shall demonstrate the independence described in clause (i), and the substantial experience described in clause (ii), of subsection (f)(6)(D). The State shall require the evaluator to conduct annual evaluations of the pilot project on upward mobility measures, which measure— the Marginal Effective Tax Rates, for pilot project participants, of increases in earned income attributable to employment through the pilot project; participant employment outcomes, consisting of achievement of (relative to the full fiscal year that precedes the date on which the Secretary approves the application for the pilot project under subsection

(g)(referred to in this paragraph as the pre-implementation year ))— higher earnings of participants; a higher percentage of participants with employment; a higher percentage of participants with full-time employment; and a higher percentage of participants who have retained employment; reduction (relative to the pre-implementation year) in per-capita direct assistance by reducing the dependence of participants on per-capita direct assistance through improvement in employment outcomes described in subparagraph (B); elimination or reduction in (relative to the pre-implementation year) marriage penalties for participants; and reduction (relative to the pre-implementation year) in poverty among participants. The State shall require the evaluator, as part of each annual evaluation, to measure— improvement (relative to the pre-implementation year) on the upward mobility measures described in paragraph (2); and improvement on the upward mobility measures, relative to the benchmark goals described under subsection (f)(2)(C). The evaluator shall prepare and submit to the Secretary a report containing the results of each annual evaluation. The evaluator shall make comparisons on the upward mobility measures by comparing the outcomes of the entire population enrolled in the antipoverty programs related to a covered amount described in subsection (a)(3)(A)(i) for the preceding fiscal year described in subsection (d)(2)(A), to the outcomes for that entire population enrolled in those antipoverty programs (included in the pilot project or not so included) for the year covered by the evaluation. No State shall receive an adjustment to an Upward Mobility Grant because the State increased the amount of the per-capita direct assistance provided, through an Upward Mobility Grant.

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