; or (B) the child— (i) was born before the end of the 28th week of gestation; and (ii) is a child with a disability (within the meaning of section 602 of the Individuals With Disabilities Education Act). . (b) Penalty Section 409(a) of such Act ( 42 U.S.C. 609(a) ) is amended by adding at the end the following: (17) Failure to exempt parents with certain children from work requirements If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has failed to comply with section 407(b)(5) for the fiscal year, the Secretary may reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by such amount as the Secretary finds is necessary to induce the State to so comply. . 103. Additional program purpose Section 401(a) of the Social Security Act ( 42 U.S.C. 601(a) ) is amended— (1) by striking and at the end of paragraph (3); (2) by striking the period at the end of paragraph (4) and inserting ; and