§ 604. Use of grants
(a)
General rules
Subject to this part, a State to which a grant is made under section
603 of this title may use the grant—
(b)
Limitation on use of grant for administrative purposes
(1)
Limitation
A State to which a grant is made under section
603 of this title shall not expend more than 15 percent of the grant for administrative purposes.
(c)
Authority to treat interstate immigrants under rules of former State
A State operating a program funded under this part may apply to a family the rules (including benefit amounts) of the program funded under this part of another State if the family has moved to the State from the other State and has resided in the State for less than 12 months.
(d)
Authority to use portion of grant for other purposes
(1)
In general
(3)
Applicable rules
(A)
In general
Except as provided in subparagraph (B) of this paragraph, any amount paid to a State under this part that is used to carry out a State program pursuant to a provision of law specified in paragraph (1) shall not be subject to the requirements of this part, but shall be subject to the requirements that apply to Federal funds provided directly under the provision of law to carry out the program, and the expenditure of any amount so used shall not be considered to be an expenditure under this part.
(B)
Exception relating to subchapter XX programs
All amounts paid to a State under this part that are used to carry out State programs pursuant to subchapter XX of this chapter shall be used only for programs and services to children or their families whose income is less than 200 percent of the income official poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section
9902
(2) of this title) applicable to a family of the size involved.
(e)
Authority to carry over certain amounts for benefits or services or for future contingencies
A State or tribe may use a grant made to the State or tribe under this part for any fiscal year to provide, without fiscal year limitation, any benefit or service that may be provided under the State or tribal program funded under this part.
(f)
Authority to operate employment placement program
A State to which a grant is made under section
603 of this title may use the grant to make payments (or provide job placement vouchers) to State-approved public and private job placement agencies that provide employment placement services to individuals who receive assistance under the State program funded under this part.
(g)
Implementation of electronic benefit transfer system
A State to which a grant is made under section
603 of this title is encouraged to implement an electronic benefit transfer system for providing assistance under the State program funded under this part, and may use the grant for such purpose.
(h)
Use of funds for individual development accounts
(1)
In general
A State to which a grant is made under section
603 of this title may use the grant to carry out a program to fund individual development accounts (as defined in paragraph (2)) established by individuals eligible for assistance under the State program funded under this part.
(2)
Individual development accounts
(A)
Establishment
Under a State program carried out under paragraph (1), an individual development account may be established by or on behalf of an individual eligible for assistance under the State program operated under this part for the purpose of enabling the individual to accumulate funds for a qualified purpose described in subparagraph (B).
(B)
Qualified purpose
A qualified purpose described in this subparagraph is 1 or more of the following, as provided by the qualified entity providing assistance to the individual under this subsection:
(i)
Postsecondary educational expenses
Postsecondary educational expenses paid from an individual development account directly to an eligible educational institution.
(3)
Requirements
(A)
In general
An individual development account established under this subsection shall be a trust created or organized in the United States and funded through periodic contributions by the establishing individual and matched by or through a qualified entity for a qualified purpose (as described in paragraph (2)(B)).
(4)
No reduction in benefits
Notwithstanding any other provision of Federal law (other than the Internal Revenue Code of 1986) that requires consideration of 1 or more financial circumstances of an individual, for the purpose of determining eligibility to receive, or the amount of, any assistance or benefit authorized by such law to be provided to or for the benefit of such individual, funds (including interest accruing) in an individual development account under this subsection shall be disregarded for such purpose with respect to any period during which such individual maintains or makes contributions into such an account.
(5)
Definitions
As used in this subsection—
(A)
Eligible educational institution
The term “eligible educational institution” means the following:
(B)
Post-secondary educational expenses
The term “post-secondary educational expenses” means—
(C)
Qualified acquisition costs
The term “qualified acquisition costs” means the costs of acquiring, constructing, or reconstructing a residence. The term includes any usual or reasonable settlement, financing, or other closing costs.
(D)
Qualified business
The term “qualified business” means any business that does not contravene any law or public policy (as determined by the Secretary).
(E)
Qualified business capitalization expenses
The term “qualified business capitalization expenses” means qualified expenditures for the capitalization of a qualified business pursuant to a qualified plan.
(F)
Qualified expenditures
The term “qualified expenditures” means expenditures included in a qualified plan, including capital, plant, equipment, working capital, and inventory expenses.
(G)
Qualified first-time homebuyer
(H)
Qualified plan
The term “qualified plan” means a business plan which—
(i)
is approved by a financial institution, or by a nonprofit loan fund having demonstrated fiduciary integrity,
(I)
Qualified principal residence
The term “qualified principal residence” means a principal residence (within the meaning of section 1034 of the Internal Revenue Code of 1986), the qualified acquisition costs of which do not exceed 100 percent of the average area purchase price applicable to such residence (determined in accordance with paragraphs (2) and (3) of section 143(e) of such Code).
(i)
Sanction welfare recipients for failing to ensure that minor dependent children attend school
A State to which a grant is made under section
603 of this title shall not be prohibited from sanctioning a family that includes an adult who has received assistance under any State program funded under this part attributable to funds provided by the Federal Government or under the supplemental nutrition assistance program, as defined in section
2012
(l) of title
7, if such adult fails to ensure that the minor dependent children of such adult attend school as required by the law of the State in which the minor children reside.
(j)
Requirement for high school diploma or equivalent
A State to which a grant is made under section
603 of this title shall not be prohibited from sanctioning a family that includes an adult who is older than age 20 and younger than age 51 and who has received assistance under any State program funded under this part attributable to funds provided by the Federal Government or under the supplemental nutrition assistance program, as defined in section
2012
(l) of title
7, if such adult does not have, or is not working toward attaining, a secondary school diploma or its recognized equivalent unless such adult has been determined in the judgment of medical, psychiatric, or other appropriate professionals to lack the requisite capacity to complete successfully a course of study that would lead to a secondary school diploma or its recognized equivalent.
(k)
Limitations on use of grant for matching under certain Federal transportation program
(1)
Use limitations
A State to which a grant is made under section
603 of this title may not use any part of the grant to match funds made available under section 3037 of the Transportation Equity Act for the 21st Century, unless—
(A)
the grant is used for new or expanded transportation services (and not for construction) that benefit individuals described in subparagraph (C), and not to subsidize current operating costs;
(2)
Amount limitation
From a grant made to a State under section
603
(a) of this title, the amount that a State uses to match funds described in paragraph (1) of this subsection shall not exceed the amount (if any) by which 30 percent of the total amount of the grant exceeds the amount (if any) of the grant that is used by the State to carry out any State program described in subsection (d)(1) of this section.
(3)
Rule of interpretation
The provision by a State of a transportation benefit under a program conducted under section 3037 of the Transportation Equity Act for the 21st Century, to an individual who is not otherwise a recipient of assistance under the State program funded under this part, using funds from a grant made under section
603
(a) of this title, shall not be considered to be the provision of assistance to the individual under the State program funded under this part.