Issue Briefs

CY 2014 Clawback Payments Projected to Decline

The Centers for Medicare & Medicaid Services (CMS) has announced the parameters that will guide calendar year (CY) 2014 individual and state costs for the Medicare Part D drug benefit. For the first time since the inception of the Part D program, CMS projects a negative annual percentage increase. These data, as well as enrollment data for persons dually eligible for Medicare and Medicaid, and FFIS projections of Federal Medical Assistance Percentages—FMAPs—for federal fiscal year (FY) 2015, permit preliminary estimates of state clawback costs for CY 2014.

Full Report

House Passes WIA Reauthorization

On March 15, 2013, the House passed the Supporting Knowledge and Investing in Lifelong Skills (SKILLS) Act (H.R. 803), which would reauthorize and restructure several federal workforce programs under the Workforce Investment Act of 1998 (WIA; P.L. 105-220). Specifically, the bill would consolidate several workforce and job training programs across federal agencies into a Workforce Investment Fund (WIF), which would operate as a block grant to states. H.R. 803 differs slightly from the reauthorization bill approved at the committee level last year. This Issue Brief examines those differences and provides updated estimates for fiscal year (FY) 2014 state allocations under the new WIF program.

Full Report

Health Care Reform and the BCA Sequester

Most programs included in the Affordable Care Act (ACA, P.L. 111-148 and P.L. 111-152) are subject to the March 1, 2013, Budget Control Act (BCA) sequester. The major exception is funding provided to Medicaid, which is an exempt program. Even though these programs are covered by the sequester, several would not be affected in fiscal year (FY) 2013 because funding currently being obligated is from prior fiscal year appropriations.

Full Report

Public Safety Broadband Grants Announced

On February 6, 2013, the National Telecommunications and Information Administration (NTIA) opened the application period for the State and Local Implementation Grant Program (SLIGP; CFDA 11.549), which was authorized by the Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96). Requirements for the grant program were described in FFIS Issue Brief 12-34. This brief lists the grant allocations and the timing for awards. Applications for grant funding must be received by NTIA no later than March 19, 2013.

Full Report

TANF Set to Expire Next Month, Congressional Action Required to Prevent Funding Lapse

The Temporary Assistance for Needy Families (TANF) block grant and related programs were last extended as part of the Continuing Resolution (CR) for fiscal year (FY) 2013. These programs are set to expire with the CR on March 27, 2013. In order for the programs to continue to operate and receive funding, congressional action to extend or reauthorize these programs will be required.

Full Report

ACF Awards FY 2013 TANF Contingency Funds to 20 States

On December 7, 2012, the Administration for Children and Families (ACF) posted to its website monthly awards and estimates under the Temporary Assistance for Needy Families (TANF) Contingency Fund for fiscal year (FY) 2013. To date, 19 states and the District of Columbia have received funds in FY 2013. Based on the information, ACF estimates that the $612 million appropriation for FY 2013 will be exhausted by March 2013.

Full Report

HHS Releases Child Welfare Services Allotment Percentages

On November 20, 2012, the Department of Health and Human Services (HHS) released the allotment percentages for the Child Welfare Services program for fiscal years (FYs) 2014 and 2015. The allotment percentages are one of the factors used to determine the distribution of Child Welfare Services state grants. This Issue Brief provides the new allotment percentages and calculates their impact on Child Welfare Services state allocations.

Full Report

States Receive Almost All FY 2013 LIHEAP Funds

The Department of Health and Human Services (HHS) announced that it is making $3.068 billion available in Low-Income Home Energy Assistance Program (LIHEAP) block grant funds under the fiscal year (FY) 2013 continuing resolution (CR). The CR funds the government through March 27, 2013. These initial awards represent the lesser of: 1) 90% of a state’s annualized allocation under the CR and 2) the amount the state requested for the first two quarters of FY 2013.

This Issue Brief discusses the recent release of funds as well as potential funding levels for LIHEAP in FY 2013.

Full Report

Medicare Part D Clawback Charges to Increase in CY 2013

The Medicare Modernization Act (MMA, P.L. 108-173) that established the Medicare Part D prescription drug program requires states to make cost-sharing payments to the federal government, commonly known as the “clawback.” As required by MMA, the Centers for Medicare & Medicaid Services (CMS) must notify states by October 15 of their per-beneficiary monthly clawback charges for the following year. The recent CMS release indicates that the per-beneficiary monthly clawback charge to states will increase by 0.91% in calendar year (CY) 2013. 

Full Report

DOT Makes Unspent Earmarks Available for More Flexible Spending

On August 17, 2012, the Department of Transportation (DOT) announced that $473 million in unspent highway earmarks from fiscal years (FY) 2003-2006 will be made available to states for more flexible use.

Full Report

DOL Releases STC Funding Levels and Guidance

On February 22, 2012, the president signed the Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96). The law provides $99.8 million in new grants to states for Short-Time Compensation (STC) programs. On August 13, 2012, the Department of Labor (DOL) released guidance on the program, including application materials and state-by-state maximum grant awards. This Issue Brief provides background on STC programs and highlights from DOL’s recent guidance.

Full Report

HHS Announces New TANF Waiver Policy

On July 12, 2012, the Administration for Children and Families (ACF) provided guidance to states on applying for section 1115 waivers in the Temporary Assistance for Needy Families (TANF) program. Specifically, the guidance (TANF-ACF-IM-2012-03) expressed the willingness of the secretary of the Department of Health and Human Services (HHS) to use this waiver authority to allow states to test new ways of achieving better employment outcomes for needy families. The guidance provides examples of projects that states may want to consider. It also explains the required components of a waiver, including performance targets and an evaluation plan.

ACF released this guidance in response to the president’s February 28, 2011, memorandum that directed federal agencies to work with state and local governments to identify and overcome administrative, regulatory, and legislative barriers in federally funded programs as well as feedback from many states on the need for greater flexibility within TANF. 

Full Report

CMS Publishes Medicaid QI Allotments for FYs 2011 and 2012

Under the “qualifying individual” (QI) program, states receive 100% federal Medicaid reimbursement for paying Medicare Part B premiums for certain categories of elderly or disabled individuals up to an annual allotment. On July 24, 2012, the Centers for Medicare & Medicaid Services (CMS) published in the Federal Register final state allotments for fiscal year (FY) 2011 and preliminary allotments for FY 2012. This program received $885 million in FY 2011 and $730 million in FY 2012. It has been authorized and funded through a series of short-term extensions, with the latest one set to expire on December 31, 2012.  

Full Report

Federal Surface Transportation Programs Reauthorized through FY 2014

On July 6, 2012, the president signed Moving Ahead for Progress in the 21st Century (MAP-21; P.L. 112-141), reauthorizing federal surface transportation programs for fiscal years (FYs) 2013 and 2014. Previously set to expire June 30, 2012, the bill also extends current funding through the end of FY 2012.

MAP-21 contains several non-transportation provisions, such as a funding cap for Abandoned Mine Land (AML) grants; a revision to the disaster-recovery Medicaid matching rate formula; assistance for Gulf Coast restoration; and program extensions for Payments In Lieu of Taxes (PILT), Secure Rural Schools (SRS), and Sports Fish Restoration and Boating Safety. For more information on these non-transportation provisions, see Issue Brief 12-25.

Full Report

SAFETEA-LU Reauthorization Includes Several Non-Transportation Provisions

On June 29, 2012, the president signed the Moving Ahead for Progress in the 21st Century Act (P.L. 112-141), which provides a two-year reauthorization of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU, P.L. 109-59). The bulk of the legislation reauthorizes and reforms the nation’s transportation programs. However, it also includes other provisions, such as a funding cap for Abandoned Mine Land (AML) grants; a revision to the disaster-recovery Medicaid matching rate formula; assistance for Gulf Coast restoration; and program extensions for Payments In Lieu of Taxes (PILT), Secure Rural Schools (SRS), and Sports Fish Restoration and Boating Safety. This Issue Brief provides details on these non-transportation related measures in P.L. 112-141. A forthcoming analysis will focus on the transportation items. 

Full Report

ED Continues to Approve NCLB Waivers

The Elementary and Secondary Education Act of 1965 (ESEA, P.L. 80-10) was last reauthorized in 2001 under No Child Left Behind (NCLB, P.L. 107-110). NCLB included a number of new accountability provisions for states and local education agencies (LEAs), including measures of adequate yearly progress (AYP). In recent years, schools and LEAs have struggled to meet these AYP standards. In fact, the Center for Education Policy estimates that 49% of schools failed to make AYP in school year (SY) 2010-2011. Because Congress has yet to restructure these accountability provisions through a comprehensive reauthorization of ESEA, the administration created a waiver process by which states could request flexibility around these NCLB requirements.

On May 29, 2012, the Department of Education (ED) announced that eight additional states will receive waivers from the NCLB accountability provisions. These eight states join the 11 other states that have already been approved for NCLB waivers. Waivers from 18 additional states and the District of Columbia are still waiting approval from ED. This Issue Brief provides background on the NCLB waiver process and an update on the status of the applications. 

Full Report

PY 2011 WIA Dislocated Worker Reallotment: Small Increases for Most States

On April 24, 2012, the Department of Labor’s (DOL) Employment and Training Administration (ETA) notified states that program year (PY) 2011 Workforce Investment Act (WIA) Dislocated Worker Assistance funds would be subject to reallotment based on states’ PY 2010 unobligated balances. In accordance with WIA Section 132(c), DOL is directed to recapture and reallocate excess unobligated funds under any WIA Title I formula program. ETA also indicated that every state met the threshold for WIA adult and youth services programs and there will not be a reallotment of these formula funds. This Issue Brief outlines the provisions that result in such a reallotment and changes to the PY 2011 WIA dislocated worker allocations.

Full Report

House Approves DATA Act with New Reporting Requirements for States

On April 25, 2012, the House of Representatives approved the Digital Accountability and Transparency Act of 2012 (H.R. 2146, DATA Act). The bill is slightly different from the one that was reported by the House Committee on Oversight and Government Reform last year, and incorporates some feedback from state groups. While states support the overall goals of the legislation, they remain concerned about the magnitude of reporting, timelines for implementation, and lack of funding. 

Specifically, the DATA Act would mandate full multi-tier recipient reporting and require recipients to report on the use of funds, although some information would be prepopulated with data from federal agencies. The bill also establishes the Federal Accountability and Spending Transparency Commission fashioned after the Recovery Accountability and Transparency Board to 1) coordinate and oversee grant and contract reporting; 2) create common data elements and data standards; and 3) focus on reducing fraud, waste, and abuse. The commission would publish the federal spending data required in the bill on the existing USASpending.gov website. USASpending.gov, the Census Bureau’s Consolidated Federal Funds Report, and the Catalog of Federal Domestic Assistance would be transferred to the commission. Finally, the bill would establish an advisory committee that would include representatives from state and local governments, nonprofit organizations, and other individuals that represent the interests of recipients of federal funds and contracts. The commission and advisory committee would sunset in seven years.

Full Report

GAO Issues Report on Duplication, Overlap, and Fragmentation in Federal Programs

In February, the Government Accountability Office (GAO) released its 2012 Annual Report: Opportunities to Reduce Duplication, Overlap and Fragmentation, Achieve Savings, and Enhance Revenue, as required by law (GAO-12-342SP). The report identifies 51 areas where there is an opportunity to achieve greater efficiency or effectiveness in federal spending. Section I focuses on 32 areas where GAO found evidence of duplication, overlap, or fragmentation in federal programs. Section II identifies 19 opportunities to reduce the cost of government or enhance revenue collections.

The report is comprehensive, totaling more than 400 pages. Moreover, it identifies scores of federal spending and tax programs, sometimes within a single area of potential duplication. For example, area #28 is housing assistance, and the report observes, “Examining the benefits and costs of housing programs and tax expenditures that address the same or similar populations or areas, and potentially consolidating them, could help mitigate overlap and fragmentation and decrease costs.” The report includes a section describing why the issue is important and what GAO found. The appendix lists of all the programs and activities related to housing assistance, and the list totals more than 150 programs or activities spread across several federal agencies.

This Issue Brief isolates the areas, programs, and activities included in the GAO report that appear to have the greatest potential impact on states. It includes a brief description of the issues GAO investigated and a partial list (those of interest to states) of programs and activities identified by GAO as being related to a specific issue.

Full Report

OMB Proposes Major Grant Reform Ideas

On February 28, 2012, the Office of Management and Budget (OMB) released an advanced notice of proposed guidance in the Federal Register that outlines reform ideas for federal grants and cooperative agreements involving state and local governments as well as universities and nonprofit organizations. The reforms relate to audit requirements, cost principles, and administrative requirements. The reforms are a result of several executive orders to reduce administrative burdens and increase flexibility, while at the same time targeting improper payments and improving program performance. Moreover, they reflect some of the ideas from various OMB working groups comprised of federal, state, and local representatives as well other key groups that have convened in response to presidential directives on administrative flexibility and reducing improper payments.  

Because of the potential magnitude of these changes, OMB issued this advanced notice to receive feedback prior to developing a proposal. Comments must be received April 30, 2012 (extended from the original deadline of March 29, 2012). 

Full Report

ACA Prevention and Public Health Fund: Uses and Recent Reductions

The Affordable Care Act (ACA, P.L. 111-148 and P.L. 111-152) authorized and provided a direct appropriation for the Prevention and Public Health Fund (PPHF), beginning in fiscal year (FY) 2010. PPHF has been used to fund new programs included in health care reform and enhance funding for a number of existing programs. Increasingly, PPHF is being used to supplant, rather than supplement, federal funding for programs. Moreover, the recently enacted Middle Class Tax Relief and Job Creation Act of 2012 (payroll tax agreement, P.L. 112-96) reduced the fund by $6.25 billion in FYs 2013-2021.

Full Report

ACF Announces New SSBG Performance Measure

On February 23, 2012, the Department of Health and Human Services (HHS), Administration for Children and Families (ACF) published an information memorandum informing states that it is implementing a new performance measure for the Social Services Block Grant (SSBG). The measure will compare states’ planned use of SSBG funds with their actual SSBG expenditures. It is designed to improve states’ efficiency in planning for the use of SSBG funding.

Full Report

FY 2011 Secure Rural School Payments Released; Reauthorization Process Begins

The Secure Rural Schools (SRS) program provides counties in 41 states and Puerto Rico with a share of revenues from national forests. These payments are awarded to rural counties for the purposes of building schools and maintaining infrastructure. In 2008, Congress reauthorized the SRS program through federal fiscal year (FY) 2011 as a part of the Emergency Economic Stabilization Act of 2008 (EESA; P.L. 110-343). While the program received a funding boost in FY 2008, the reauthorization gradually reduced payments. The U.S. Forest Service recently announced FY 2011 SRS payment levels, which declined -21.1% from FY 2010.

Additionally, on February 16, 2012, the House Natural Resources Committee approved the Federal Forest County Revenue, Schools, and Jobs Act of 2012 (H.R. 4019), which would reauthorize and make changes to SRS state payments. This Issue Brief provides details on the FY 2011 SRS state payments and the proposals affecting states in H.R. 4019.

Full Report

House and Senate Ready Surface Transportation Reauthorization Packages

The most recent long-term surface transportation authorizing legislation, the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (P.L. 109-59; SAFETEA-LU), expired September 30, 2009. The absence of a new law has produced a series of short-term program extensions, with the current extension expiring on March 31, 2012.

House and Senate committees have completed two surface transportation reauthorization packages, which differ significantly in policy, funding, and duration. The full House is expected to consider its five-year reauthorization proposal this week, while the Senate has begun debate on a two-year proposal.

Full Report

FNS Releases FY 2012 TEFAP Allocations

On January 24, 2012, the Department of Agriculture’s (USDA) Food and Nutrition Service (FNS) released the federal fiscal year (FY) 2012 allocations for The Emergency Food Assistance Program (TEFAP). Under this program, states receive both discretionary grants for administration and mandatory funds to purchase commodities. This Issue Brief provides background on TEFAP and the FY 2012 state allocations for both administrative and commodity grants.

Full Report

HHS, USDA Provide Additional Details on Cost Allocation Flexibility

The Affordable Care Act (ACA, P.L. 111-148 and P.L. 111-152) included a number of changes that affect Medicaid eligibility and require upgrades to Medicaid enrollment systems. While extensive coordination and collaboration is required between health benefit exchanges and Medicaid systems, many states are considering ways to coordinate system changes with the eligibility determination systems used for human services programs. To encourage states to develop more integrated eligibility determination systems, the departments of Health and Human Services (HHS) and Agriculture (USDA) announced in August 2011, a time-limited, specific exception to the cost allocation requirements in section C.3 of OMB Circular A-87. Specifically, the exception allows federally funded human services programs to benefit from the investments in state eligibility systems being made by state-operated Exchanges, Medicaid, and the Children’s Health Insurance Program (CHIP), without having to share in the common system development costs.

On January 23, 2012, HHS and USDA released additional guidance to states on this exception, including examples of allowable shared services and more details on the process. 

Full Report