this Act, is amended by adding at the end the following: (22) Use of federal TANF funds to replace state or local spending that is not a qualified state expenditure 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)(18) 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. . 12. TANF assistance to meet basic family economic needs (a) State plan requirement Section 402(a)(1)(B) ( 42 U.S.C. 602(a)(1)(B) ), as amended by sections 8(c) and 9(c) of this Act, is amended by adding at the end the following: (viii) Family budget provisions The document shall set forth a family budget of a dollar amount sufficient to meet the basic economic needs (including food, clothing, shelter, utilities, household goods, personal care items, and general incidental expenses) of a family, how the family budget is adjusted for family size, the method used to estimate the family budget (including a statement of the relationship between shelter and utility costs and the fair market rents in localities in the State), and the relationship between the amount of assistance provided to each family under the program and the amount of the family budget for the family. . (b) Program requirement Section 408(a) ( 42 U.S.C. 608(a) ), as amended by sections 7(d)(1), 8(b)(1), 9(b)(1), 10(a), and 11(a) of this Act, is amended by adding at the end the following: (19) Requirement that amount of assistance meet basic economic needs A State to which a grant is made under section 403 shall ensure that the total amount of assistance provided to a family under the State 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