[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3131 Introduced in House (IH)]

<DOC>






119th CONGRESS
  1st Session
                                H. R. 3131

    To amend and reauthorize the Community Services Block Grant Act.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 1, 2025

Mr. Thompson of Pennsylvania (for himself and Ms. Bonamici) introduced 
 the following bill; which was referred to the Committee on Education 
                             and Workforce

_______________________________________________________________________

                                 A BILL


 
    To amend and reauthorize the Community Services Block Grant Act.

    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 
Improvement Act of 2025''.

SEC. 2. PURPOSES AND GOALS.

    Section 672(1) of the Community Services Block Grant Act (42 U.S.C. 
9901(1)) is amended to read as follows:
            ``(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 
        security of low-income and working individuals and families, 
        empower them to become fully sufficient, and create new 
        economic opportunities in the communities where they live; 
        and''.

SEC. 3. DEFINITIONS.

    Section 673 of the Community Services Block Grant Act (42 U.S.C. 
9902) is amended by striking paragraphs (1) through (5), and inserting 
the following:
            ``(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 comprehensive community needs assessment.
            ``(2) Poverty line.--
                    ``(A) In general.--The term `poverty line' means 
                the official 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 poverty 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.''.
            
                    (B) Eligibility criterion.--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 grant program established under this subtitle.
            ``(3) Community action agency.--The term `community action 
        agency' means an eligible entity (which meets the requirements 
        of paragraph (1) or (2), as appropriate, of section 676B) that 
        delivers multiple programs, projects, and services 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 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 State.
                    ``(B) An eligible entity.
                    ``(C) An association with a membership composed 
                primarily of States, eligible entities, or associations 
                of States or eligible entities.
            ``(6) Eligible entity.--The Term `eligible entity' means an 
        entity that--
                    ``(A) is an eligible entity described in section 
                673(1) (as in effect immediately before the date of the 
                enactment of the Community Services Block Grant 
                Improvement Act of 2025), or has been designated by the 
                process described in section 676A (including an 
                organization serving migrant or seasonal farm workers 
                that is so described or designated); and
                    ``(B) has a tripartite board described in paragraph 
                (1) or (2), as appropriate, of section 686B.
            ``(7) Private, nonprofit organization.--The term `private, 
        nonprofit organization' includes a religious organization, to 
        which section 679 applies.
            ``(8) Secretary.--The term `Secretary' means the Secretary 
        of Health and Human Services.
            ``(9) 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 Islands.''.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

    Section 674 of the Community Services Block Grant Act (42 U.S.C. 
9903) is amended--
            (1) in subsection (a)--
                    (A) by striking ``such sums as may be necessary for 
                each of fiscal years 1999 through 2003'' and inserting 
                ``$1,000,000,000 for each of fiscal years 2026 through 
                2032'', and
                    (B) by striking ``sections 681 and 682'' and 
                inserting ``section 680'',
            (2) in subsection (b)--
                    (A) in paragraph (2)--
                            (i) by striking ``1\1/2\ percent'' and 
                        inserting ``1 percent'',
                            (ii) in subparagraph (A)--
                                    (I) by striking ``entities,'' and 
                                inserting ``entities and other 
                                community services network 
                                organizations'', and
                                    (II) by striking ``organizations or 
                                associations'', and
                            (iii) in subparagraph (B) by striking 
                        ``and'' at the end and inserting a period, and
                    (B) by striking paragraph (3), and
            (3) by adding at the end the following:
    ``(c) Discretionary Programs.--There are authorized to be 
appropriated $40,000,000 to carry out section 680(a)(2) and 680(a)(3) 
for each of the fiscal years 2026 through 2032.''.

SEC. 5. ESTABLISHMENT OF BLOCK GRANT PROGRAM.

    Section 675 of Community Services Block Grant Act (42 U.S.C. 9904) 
is amended by striking ``through'' and all that follows through the 
period at the end, and inserting ``for the purposes described in 
section 672.''.

SEC. 6. ALLOTMENTS AND PAYMENTS TO STATES.

    Section 675B of the Community Services Block Grant Act (42 U.S.C. 
9906) is amended--
            (1) in subsection (a)--
                    (A) by striking ``except--'' and inserting ``except 
                as provided in subsection (b).'', and
                    (B) by striking paragraphs (1) and (2),
            (2) by amending subsection (b) to read as follows:
    ``(b) Minimum Allotments.--
            ``(1) In general.--No State shall receive less than \1/2\ 
        of 1 percent of the amount appropriated under section 674(a) 
        for a fiscal year that remains after the Secretary makes the 
        reservations required by section 674(b).
            ``(2) Years with greater available funds.--Notwithstanding 
        paragraph (1), 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 $900,000,000, 
        no State shall receive under this section less than \3/4\ of 1 
        percent of the remaining amount.'', and
            (3) by amending subsection (c) to read as follows::
    ``(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.''.

SEC. 7. USES OF FUNDS.

    Section 675C of the Community Services Block Grant Act (42 U.S.C.. 
9907) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1) by striking ``for the purposes 
                described in section 672 to eligible entities'' and 
                inserting ``to eligible entities that enable the 
                entities to implement programs, projects, and services 
                for the purposes described in section 672'',
                    (B) by amending paragraph (2) to read as follows:
            ``(2) Obligational requirements.--
                    ``(A) Date of obligation.--The State shall obligate 
                the funds for grants described in paragraph (1) and 
                make such grants 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 676(b) 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 
                Secretary from the requirement to make grants 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 without making such funds available for 
                expenditure by eligible entities.
                    ``(C) Availability.--Funds distributed to eligible 
                entities through grants made in accordance with 
                paragraph (1) for a fiscal year shall be available for 
                obligation by the eligible entity during that fiscal 
                year and the following fiscal year.'', and
                    (C) by striking paragraph (3),
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``(subject to paragraph 
                        (2)) for activities that may include--'' and 
                        inserting ``for activities described in the 
                        State's application and plan under section 
                        676(b), as described in paragraph (2), and for 
                        administrative expenses subject to the 
                        limitations in paragraph (3).'', and
                            (ii) by striking subparagraphs (A) through 
                        (H), and
                    (B) in paragraph (2)--
                            (i) by striking ``the greater of $55,000, 
                        or 5 percent,'' and inserting ``5 percent'',
                            (ii) in the 2d sentence by inserting 
                        ``under section 675B'' after ``allotment'',
                            (iii) in the 3d sentence by striking 
                        ``paragraph (1)(A)'' and inserting ``paragraph 
                        (2), other than monitoring,'',
                            (iv) by striking the last sentence,
                            (v) by redesignating paragraph (2) as 
                        paragraph (3), and
                            (vi) by inserting after paragraph (1) the 
                        following:
            ``(2) Training and technical assistance.--After the 
        application of subsection (a), the State may use the remaining 
        grant funds for the purposes of--
                    ``(A) providing training and technical assistance 
                and resources to eligible entities, including to--
                            ``(i) assist eligible entities to respond 
                        to statewide or regional conditions that create 
                        economic insecurity, including emergency 
                        conditions; and
                            ``(ii) support innovative programs and 
                        activities conducted by eligible entities for a 
                        purpose described in section 672, including 
                        assistance to eligible entities in building and 
                        using evidence of effectiveness in achieving 
                        such purpose;
                    ``(B) supporting information and communication 
                resources for the comprehensive community needs 
                assessments described in section 676(b)(3)(B);
                    ``(C) supporting performance measurement systems 
                consistent with the requirements of section 678E;
                    ``(D) 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 organizations funded under 
                this subtitle, to ensure increased access to services 
                provided by such State or local agencies;
                    ``(E) supporting statewide coordination and 
                communication among eligible entities in the State, 
                including supporting activities of a statewide 
                association of community services network 
                organizations; and
                    ``(F) 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.'', and
            (3) by striking subsection (c).

SEC. 8. APPLICATION AND PLAN.

    Section 676 of the Community Services Block Grant Act (42 U.S.C. 
9908) is amended--
            (1) in subsection (a) by amending paragraph (2) to read as 
        follows:
            ``(2) Duties.--The lead agency--
                    ``(A) shall be authorized by the chief executive 
                officer to convene State agencies and coordinate 
                information and activities funded under this subtitle;
                    ``(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, subject to the notice and 
                distribution requirements in subparagraph (D)(iii);
                    ``(D) in conjunction with the development of the 
                State plan as required under subsection (b)--
                            ``(i) shall hold at least one hearing in 
                        the State on the proposed plan, to provide to 
                        the public an opportunity to comment on 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 proposed plan statewide to 
                        the public and directly to the chief executive 
                        officer and board chairperson of each eligible 
                        entity and other community services network 
                        organization in the State; and
                            ``(iii) in the case of any proposed plan 
                        revision, shall notify and distribute a copy of 
                        the proposed revision directly to the chief 
                        executive officer and board chairperson of each 
                        eligible entity and other community services 
                        network organization in the State, before 
                        submission of such proposed revision to the 
                        Secretary; and
                    ``(E) shall conduct reviews of eligible entities 
                under section 678B.'',
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1)--
                            (i) by striking ``2000'' and inserting 
                        ``2026'', and
                            (ii) by striking ``30'' and inserting 
                        ``60'',
                    (B) in paragraph (1)--
                            (i) by striking ``made available through 
                        the grant or allotment will be used'' and 
                        inserting ``provided to an eligible entity 
                        under section 675C(a) shall be used by such 
                        entity for'',
                            (ii) by striking ``to support activities 
                        that are designed'' and all that follows 
                        through ``will enable the families and 
                        individuals'', and inserting ``programs, 
                        projects, and services that will enable low-
                        income and working individuals and families'',
                            (iii) in subparagraph (B) by striking 
                        ``and'' at the end,
                            (iv) in subparagraph (C) by adding ``and'' 
                        at the end, and
                            (v) by adding at the end the following:
                    ``(D) to address the educational and economic needs 
                of low-income individuals, families, and communities by 
                providing assistance through trained navigators 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, 
                families, and communities.'',
                    (C) in paragraph (2) by striking ``related to'' and 
                inserting ``and the building and use of evidence of 
                effectiveness in achieving'',
                    (D) in paragraph (3)--
                            (i) by inserting ``a description 
                        summarizing the community action plans and'' 
                        after ``(3)'', and
                            (ii) in subparagraph (D) by striking 
                        ``fatherhood initiatives'' and inserting 
                        ``whole family approaches'',
                    (E) by amending paragraph (11) to read as follows:
            ``(11) an assurance that the State will secure from each 
        eligible entity in the State, as a condition of receipt of 
        funding by the entity under section 675C(a), a community action 
        plan that--
                    ``(A) contains information on the intended 
                implementation of the entity's activities;
                    ``(B) demonstrates how such activities will meet 
                needs identified in the most recent comprehensive 
                community needs assessment conducted by the entity in 
                the previous three years, which may be coordinated with 
                community needs assessments conducted for other 
                programs; and
                    ``(C) demonstrates how such activities will achieve 
                the purposes of this subtitle;''.
                    (F) in paragraph (12)--
                            (i) by striking the comma and ``, not later 
                        than fiscal year 2001,'',
                            (ii) by striking ``promoting'' and 
                        inserting ``achieving the goals of the State 
                        plan and community action plans of eligible 
                        entities, respectively, and the purposes of 
                        this subtitle, including'', and
                            (iii) by striking ``and'' at the end,
                    (G) by amending paragraph (13) to read as follows:
            ``(13) an assurance that each eligible entity in the State 
        shall make available to the public on the entity's publicly 
        available website the entity's most recent agency-wide 
        strategic plan, comprehensive community needs assessment, and 
        community action plan;'', and
                    (H) by adding the following at the end:
            ``(14) an assurance that State personnel who conduct 
        monitoring activities under section 678B will have expertise in 
        the programs, projects, and services carried out under this 
        subtitle and in the unique structure and role of eligible 
        entities in their local communities;
            ``(15) an assurance that the State will make payments to 
        eligible entities in accordance with section 675B(a);
            ``(16) an assurance that the State will develop a policy on 
        board vacancies in accordance with section 676B(d) and provide 
        guidance to assist eligible entities in filling board 
        vacancies; and
            ``(17) information describing how the State will carry out 
        the assurances described in this subsection.'',
            (3) by amending subsection (e) to read as follows:
    ``(e) Public Inspection.--Each State plan prepared under this 
section shall be made available on the lead agency's website and 
distributed for public inspection and comment. A hearing on such plan 
shall be held as required under subparagraphs (C) and (D) of subsection 
(a) (2).'', and
            (4) in subsection (f)--
                    (A) by striking ``2000'' and inserting ``2026'', 
                and
                    (B) by striking ``Coats Human Services 
                Reauthorization Act of 1998'' and inserting ``Community 
                Services Block Grant Improvement Act of 2025''.

SEC. 9. DESIGNATION AND REDESIGNATION OF ELIGIBLE ENTITIES IN UNSERVED 
              AREAS.

    Section 676A(a) of the Community Services Block Grant Act (42 
U.S.C. 9909(a)) is amended to read as follows:
    ``(a) Qualified Organization in or Near Area.--
            ``(1) In general.--If any geographic area of a State is 
        not, or ceases to be, served by an eligible entity under this 
        subtitle, the State lead agency may, in consultation with local 
        officials and organizations representing the area, solicit one 
        or more applications 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 programs, 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 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 area, an entity described in paragraph (1) shall 
        agree to ensure that the governing board of directors of the 
        entity will meet the requirements of section 676B.
            ``(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 subsection (a) is available for designation as 
        a permanent eligible entity, the State may designate a private, 
        nonprofit agency (or public agency if a private nonprofit is 
        not available) on an interim basis for no more than one year 
        while the State completes a selection process for a permanent 
        eligible entity that meets the requirements of subsection (a). 
        An agency designated on an interim basis shall be capable of 
        providing programs, projects, and services designed to achieve 
        the purposes described 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).''.

SEC. 10. TRIPARTITE BOARDS.

    Section 676B of the Community Services Block Grant Act (42 U.S.C. 
9910) is amended--
            (1) in subsection (a)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) Board.--In order for a private, nonprofit 
        organization to be considered to be an eligible entity for 
        purposes of 673(6), the entity shall be governed by a 
        tripartite board of directors described in subparagraph (C) 
        that fully participated in the development, planning, 
        implementation, oversight, and evaluation of the programs, 
        projects, and services carried out or provided through the 
        subgrant made under section 675C(a) and all activities of the 
        entity.'',
                    (B) in paragraph (2)(A) by striking ``except'' and 
                all that follows through ``requirement'', and inserting 
                ``(but if an elected official chooses not to serve, 
                such official may designate a representative to serve 
                as the voting board member); and'', and
                    (C) by adding at the end the following:
            ``(3) Compliance with tax-exempt and other requirements.--
        The board of a private, nonprofit organization shall ensure 
        that the board operates and conducts activities under the 
        subgrant made under section 679(Ca) that complies with--
                    ``(A) the requirements for maintaining tax-exempt 
                status 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 Revenue Code of 1986 (26 U.S.C. 501(c)(3)); 
                and
                    ``(B) applicable requirements of State nonprofit 
                law.'', and
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by redesignating subparagraphs (A), 
                        (B), and (C) as clauses (i), (ii), and (iii), 
                        respectively, and
                            (ii) in paragraph (2) by adding 
                        ``References under this subtitle to the board 
                        of an eligible entity shall apply to such other 
                        mechanism.'' at the end,
                    (B) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B); respectively,
                    (C) by striking ``Public Organizations.--'' and 
                inserting,``board or other mechanism.--(1)'', and
                    (D) by adding at the end the following:
                    ``(2) Compliance with state requirements and 
                policy.--The board of a public entity shall ensure that 
                the board operates in a manner that complies with State 
                requirements for open meetings, financial transparency, 
                and State open records policy.'', and
            (3) by adding at the end the following:
    ``(c) Expertise.--Each 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, accounting, and law, to support the work of 
the board.
    ``(d) 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 one additional 6-month period to 
fill such vacancy.
    ``(e) Operations and Duties of the Board.--The duties of a board 
described in paragraph (1) or (2) of subsection (a) shall include--
            ``(1) in the case of a board for a private, nonprofit 
        organization that is an eligible entity, having legal and 
        financial responsibility for administering and overseeing the 
        eligible entity, including making proper use of Federal funds;
            ``(2) establishing terms for officers and adopting a code 
        of ethical conduct, including a conflict of interest policy for 
        board members;
            ``(3) participating in a comprehensive community needs 
        assessment conducted at least once every three years, 
        developing and adopting for the corresponding eligible 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 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 
                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 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 entities, adopting 
                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); 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).
    ``(f) Conflict of Interest.--In establishing the conflict of 
interest policy described in subsection (e)(2), a board shall ensure 
that such policy--
            ``(1) requires a board member to recuse themself from any 
        discussion, deliberations, and votes relating to any contract 
        or transaction from which the following would receive a direct 
        financial benefit from the eligible entity:
                    ``(A) such board member;
                    ``(B) the immediate family member of such board 
                member; or
                    ``(C) an organization or a business from which such 
                board member, or an immediate family of such board 
                member, receives a direct financial benefit;
            ``(2) prohibits a board member from receiving compensation 
        for serving on the board from the eligible entity other than 
        for reasonable expenses, except that a board member's receipt 
        of an economic benefit from the eligible entity because such 
        member is eligible to receive benefits and services under this 
        subtitle shall not be considered to be compensation for 
        purposes of this subsection; and
            ``(3) ensures all activities funded under this subtitle are 
        conducted free of personal or family favoritism.''.

SEC. 11. OFFICE OF COMMUNITY SERVICES.

    Section 678(b) of the Community Services Block Grant Act (42 U.S.C. 
9912(b)) is amended by inserting ``, acting through the Director,'' 
after ``The Secretary''.

SEC. 12. TRAINING, TECHNICAL ASSISTANCE, AND OTHER ACTIVITIES.

    Section 678A(c) of the Community Services Block Grant Act (42 
U.S.C. 9913(c)) is amended to read as follows:
    ``(c) Distribution Requirement.--
            ``(1) In general.--The amounts reserved under section 
        674(b)(2)(A) for activities to be carried out under this 
        subsection shall be distributed directly to eligible entities 
        and other community services network organizations for--
                    ``(A) professional development for key community 
                services network organization personnel;
                    ``(B) activities to improve community services 
                network organization program quality, financial 
                management, compliance, and governance practices 
                (including practices related to performance management 
                information systems);
                    ``(C) activities that train community services 
                network organizations in building and using evidence of 
                effectiveness in achieving the purposes of this 
                subtitle; and
                    ``(D) activities to ensure responsiveness to 
                identified local needs.
            ``(2) Eligible entities or organizations.--Eligible 
        entities and other community services network organizations 
        described in this subsection shall include such entities and 
        organizations (and their partners, including institutions of 
        higher education), with demonstrated expertise in providing 
        training to individuals and organizations on methods of 
        effectively addressing the needs of low-income and working 
        families and communities.''.

SEC. 13. FISCAL CONTROLS, AUDITS, AND WITHHOLDING.

    Section 678D of the Community Services Block Grant Act (42 U.S.C. 
9916) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in paragraph (A) by inserting ``and, 
                        notwithstanding the applicability of 
                        subparagraph (B), issue payment to 
                        subrecipients on an advance basis.'' before the 
                        semicolon at the end, and
                            (ii) by amending subparagraph (B) to read 
                        as follows:
                    ``(B) Single audit requirements.--
                            ``(i) In general.--Audits shall be 
                        conducted under this paragraph 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.
                            ``(ii) Serious financial deficiency.--In 
                        the event that such a deficiency is identified, 
                        the Secretary shall order an audit conducted as 
                        described in subparagraph (1), or an audit of 
                        each of the accounts involved, in accordance 
                        with subparagraph (2).'', and
                    (B) by amending paragraph (3) to read as follows:
            ``(3) 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 the State under this subtitle until the 
        State remedies the improperly expended funds for the original 
        purpose for which the grant funds were intended.'', and
            (2) in subsection (b)(3) by inserting ``or a complaint of a 
        serious deficiency concerning any State'' after ``any fiscal 
        year''.

SEC. 14. ACCOUNTABILITY AND REPORTING REQUIREMENTS.

    Section 678E(b) of the Community Services Block Grant Act (42 
U.S.C. 9917) is amended--
            (1) in paragraph (3) by striking ``Labor and Human 
        Resources'' and inserting ``Health, Education, Labor, and 
        Pensions'', and
            (2) by striking paragraph (4).

SEC. 15. LIMITATIONS ON USE OF FUNDS.

    Section 678F(a)(1) of the Community Services Block Grant Act (42 
U.S.C. 9918(a)(1)) is amended by striking ``amounts reserved under 
section 674(b)(3)'' and inserting ``amounts appropriated under section 
674(c)''.

SEC. 16. DISCRETIONARY AUTHORITY OF THE SECRETARY.

    Section 680 of the Community Services Block Grant Act (42 U.S.C. 
9921) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``funds reserved under 
                        section 674(b)(3)'' and inserting ``amounts 
                        made available to carry out this section'', and
                            (ii) by striking ``through (4)'' and 
                        inserting ``and (3)'', and
                    (B) by striking subparagraph (4), and
            (2) in subsection (c) by striking ``Labor and Human 
        Resources'' and inserting ``Health, Education, Labor, and 
        Pensions''.

SEC. 17. COMMUNITY FOOD AND NUTRITION PROGRAMS.

    The Community Services Block Grant Act (42 U.S.C. 9922) is amended 
by striking section 681.

SEC. 18. NATIONAL OR REGIONAL PROGRAMS DESIGNED TO PROVIDE 
              INSTRUCTIONAL ACTIVITIES FOR LOW-INCOME YOUTH.

    The Community Services Block Grant Act (42 U.S.C. 9923) is 
amended--
            (1) by striking section 682, and
            (2) by redesignating section 683 as section 681.
                                 <all>