Contingency Fund

There is hereby established in the Treasury of the United States a fund which shall be known as the “Contingency Fund for State Welfare Programs” (in this section referred to as the “Fund”).

Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for fiscal year 2018 such sums as are necessary for payment to the Fund in a total amount not to exceed $608,000,000.

(A) Provisional payments If an eligible State submits to the Secretary a request for funds under this paragraph during an eligible month, the Secretary shall, subject to this paragraph, pay to the State, from amounts appropriated pursuant to paragraph (2), an amount equal to the amount of funds so requested.

(B) Payment priority The Secretary shall make payments under subparagraph (A) in the order in which the Secretary receives requests for such payments.

(C) Limitations (i) Monthly payment to a State The total amount paid to a single State under subparagraph (A) during a month shall not exceed 1 ⁄ 12 of 20 percent of the State family assistance grant. (ii) Payments to all States The total amount paid to all States under subparagraph (A) during fiscal year 2011 and 2012, respectively, shall not exceed the total amount appropriated pursuant to paragraph (2) for each such fiscal year.

As used in paragraph (3)(A), the term “eligible month” means, with respect to a State, a month in the 2-month period that begins with any month for which the State is a needy State.

For purposes of paragraph (4), a State is a needy State for a month if—

(A) the average rate of— (i) total unemployment in such State (seasonally adjusted) for the period consisting of the most recent 3 months for which data for all States are published equals or exceeds 6.5 percent; and (ii) total unemployment in such State (seasonally adjusted) for the 3-month period equals or exceeds 110 percent of such average rate for either (or both) of the corresponding 3-month periods ending in the 2 preceding calendar years; or

(B) as determined by the Secretary of Agriculture (in the discretion of the Secretary of Agriculture), the monthly average number of individuals (as of the last day of each month) participating in the supplemental nutrition assistance program in the State in the then most recently concluded 3-month period for which data are available exceeds by not less than 10 percent the lesser of— (i) the monthly average number of individuals (as of the last day of each month) in the State that would have participated in the supplemental nutrition assistance program in the corresponding 3-month period in fiscal year 1994 if the amendments made by titles IV [ 8 U.S.C. 1601 et seq.] and VIII of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 had been in effect throughout fiscal year 1994; or (ii) the monthly average number of individuals (as of the last day of each month) in the State that would have participated in the supplemental nutrition assistance program in the corresponding 3-month period in fiscal year 1995 if the amendments made by titles IV and VIII of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 had been in effect throughout fiscal year 1995.

(A) In general Notwithstanding paragraph (3), if the Secretary makes a payment to a State under this subsection in a fiscal year, then the State shall remit to the Secretary, within 1 year after the end of the first subsequent period of 3 consecutive months for which the State is not a needy State, an amount equal to the amount (if any) by which— (i) the total amount paid to the State under paragraph (3) of this subsection in the fiscal year; exceeds (ii) the product of— (I) the Federal medical assistance percentage for the State (as defined in section 1396d(b) of this title , as such section was in effect on September 30, 1995 ); (II) the State’s reimbursable expenditures for the fiscal year; and (III) 1 ⁄ 12 times the number of months during the fiscal year for which the Secretary made a payment to the State under such paragraph (3).

(B) Definitions As used in subparagraph (A): (i) Reimbursable expenditures The term “reimbursable expenditures” means, with respect to a State and a fiscal year, the amount (if any) by which— (I) countable State expenditures for the fiscal year; exceeds (II) historic State expenditures (as defined in section 609(a)(7)(B)(iii) of this title ), excluding any amount expended by the State for child care under subsection (g) or (i) of section 602 of this title (as in effect during fiscal year 1994) for fiscal year 1994. (ii) Countable State expenditures The term “countable expenditures” means, with respect to a State and a fiscal year— (I) the qualified State expenditures (as defined in section 609(a)(7)(B)(i) of this title (other than the expenditures described in subclause (I)(bb) of such section)) under the State program funded under this part for the fiscal year; plus (II) any amount paid to the State under paragraph (3) during the fiscal year that is expended by the State under the State program funded under this part.

(C) Adjustment of State remittances (i) In general The amount otherwise required by subparagraph (A) to be remitted by a State for a fiscal year shall be increased by the lesser of— (I) the total adjustment for the fiscal year, multiplied by the adjustment percentage for the State for the fiscal year; or (II) the unadjusted net payment to the State for the fiscal year. (ii) Total adjustment As used in clause (i), the term “total adjustment” means— (I) in the case of fiscal year 1998, $2,000,000; (II) in the case of fiscal year 1999, $9,000,000; (III) in the case of fiscal year 2000, $16,000,000; and (IV) in the case of fiscal year 2001, $13,000,000. (iii) Adjustment percentage As used in clause (i), the term “adjustment percentage” means, with respect to a State and a fiscal year— (I) the unadjusted net payment to the State for the fiscal year; divided by (II) the sum of the unadjusted net payments to all States for the fiscal year. (iv) Unadjusted net payment As used in this subparagraph, the term, “unadjusted net payment” means with respect to a State and a fiscal year— (I) the total amount paid to the State under paragraph (3) in the fiscal year; minus (II) the amount that, in the absence of this subparagraph, would be required by subparagraph (A) or by section 609(a)(10) of this title to be remitted by the State in respect of the payment.

The Secretary shall annually report to the Congress on the status of the Fund.