1. Short title This Act may be cited as the Improving Employment Outcomes of TANF Recipients Act . 2. Improving economic mobility of TANF recipients Section 403(a)(4) of the Social Security Act ( 42 U.S.C. 603(a)(4) ) is amended to read as follows: (4) Improving economic mobility of TANF recipients (A) Measuring state performance (i) In general Each State, in consultation with the Secretary, shall collect and report information necessary to measure the level of performance of the State for each indicator described in clause (ii), for fiscal year 2019 and each fiscal year thereafter, and the Secretary shall use the information collected for fiscal year 2019 to establish the baseline level of performance of each State for each such indicator. (ii) Indicators The indicators described in this clause, for a fiscal year, are the following: (I) The employment percentage for the fiscal year, which is equal to— (aa) the number of families receiving assistance under the State program funded under this part or any other State program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(ii)) who, during a quarter in the fiscal year, exited from the program, and who, during the 2nd quarter after the exit, include an adult in unsubsidized employment; divided by (bb) the number of families who received assistance from the program in the exit quarter referred to in subclause (aa). (II) The retention percentage for the fiscal year, which is equal to— (aa) the number of families receiving assistance from the State program funded under this part or any other State program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(ii)) who, during a quarter in the fiscal year, exited from the program, and who, during the 4th quarter after the exit, include an adult in unsubsidized employment