; (ii) a former recipient of such assistance who is— (I) a parent of a dependent child who is such a recipient; and (II) no longer eligible for assistance under the State program funded under this part by reason of section 408(a)(7); and (iii) a participant in a subsidized employment program funded under this part or under any other State program funded by qualified State expenditures (as defined in section 409(a)(7)(B)(i)). (B) Exclusion of individuals sanctioned or undergoing pre-sanction review The term work-eligible individual does not include any individual with respect to whom— (i) there is in effect a penalty imposed by the State under subsection (e) of this section; or (ii) the State has initiated (but not completed) the pre-sanction review process pursuant to section 408(a)(14)(A). (C) State option to exclude certain individuals A State may exclude from the term work-eligible individual any resident of the State who is— (i) a single parent caring for a child who has not attained 1 year of age; (ii) a recipient of supplemental security income benefits under title XVI, disability insurance benefits under title II, or other Federal or State benefits based on disability; (iii) an applicant for supplemental security income benefits under title XVI; (iv) an individual who is needed in the home of the individual to care for a disabled member of the family of the individual