program funded under this part and all programs funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)) for which the family is eligible is sufficient to meet the basic economic needs of the family, taking into account all earned and unearned income of the family and an amount not to exceed the value of the supplemental nutrition assistance benefits provided to the family under the Food and Nutrition Act of 2008. . (c) Penalty Section 409(a) ( 42 U.S.C. 609 ), as amended by sections 5(c)(2)(A), 7(d)(1), 8(b)(2), 9(b)(2), 10(b), and 11(b) of this Act, is amended by adding at the end the following: (23) Penalty for failure of State TANF assistance to meet basic economic needs of a recipient family If the Secretary determines that a State to which a grant is made under section 403 in a fiscal year has violated section 408(a)(19) during the fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to 5 percent of the State family assistance grant. . 13. State plans and reports on child poverty (a) Child poverty reduction as a purpose of the TANF program Section 401(a) ( 42 U.S.C. 601(a) ) is amended by redesignating paragraphs (1) through (4) as paragraphs (2) through (5), respectively, and by inserting before paragraph (2) (as so redesignated) the following: (1) reduce poverty among children