Bonus to reward high performance States

(i) In general Subject to clause (ii) of this subparagraph, the Secretary shall determine the amount of the grant payable under this paragraph to a high performing State for a bonus year, which shall be based on the score assigned to the State under subparagraph (D)(i) for the fiscal year that immediately precedes the bonus year.

(ii) Limitation The amount payable to a State under this paragraph for a bonus year shall not exceed 5 percent of the State family assistance grant.

Not later than 1 year after August 22, 1996 , the Secretary, in consultation with the National Governors’ Association and the American Public Welfare Association, shall develop a formula for measuring State performance in operating the State program funded under this part so as to achieve the goals set forth in section 601(a) of this title .

For each bonus year, the Secretary shall—

(i) use the formula developed under subparagraph (C) to assign a score to each eligible State for the fiscal year that immediately precedes the bonus year; and

(ii) prescribe a performance threshold in such a manner so as to ensure that— (I) the average annual total amount of grants to be made under this paragraph for each bonus year equals $200,000,000; and (II) the total amount of grants to be made under this paragraph for all bonus years equals $1,000,000,000.

As used in this paragraph:

(i) Bonus year The term “bonus year” means fiscal years 1999, 2000, 2001, 2002, and 2003.

(ii) High performing State The term “high performing State” means, with respect to a bonus year, an eligible State whose score assigned pursuant to subparagraph (D)(i) for the fiscal year immediately preceding the bonus year equals or exceeds the performance threshold prescribed under subparagraph (D)(ii) for such preceding fiscal year.

Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for fiscal years 1999 through 2003 $1,000,000,000 for grants under this paragraph.