; and (C) by adding at the end the following: (7) State option to include individuals formerly receiving assistance participating in subsidized employment In determining the participation rate under this section, a State may include, on a case-by-case basis and for not more than 6 months, a family with a former recipient of assistance participating in subsidized employment if the individual began participation in subsidized employment while receiving assistance but is no longer a recipient due to their participation in subsidized employment. . (2) Conforming amendments (A) Section 407(b)(5) ( 42 U.S.C. 607(b)(5) ) (as redesignated by paragraph (1)(A), is amended— (i) by striking paragraph (1)(B) and inserting calculating a participation rate under this section ; and (ii) by inserting that include a work-eligible individual before that are receiving . (B) Each of the following provisions is amended by striking recipient each place it appears and inserting work-eligible individual : (i) Section 407(c)(1)(A) ( 42 U.S.C. 607(c)(1) ). (ii) Section 407(c)(2)(C) ( 42 U.S.C. 607(c)(2)(C) ) (as redesignated by section 102(a)(1)(A)). (iii) Section 407(c)(2)(D) ( 42 U.S.C. 607(c)(2)(D) ) (as so redesignated). (iv) Paragraphs (10) and (11) of section 407(d) ( 42 U.S.C. 607(d) ). (C) Subparagraphs (C), (D), and (E) of section 407(c)(2) ( 42 U.S.C. 607(c)(2) ), (as redesignated by section 102(a)(1)(A) and amended by subparagraph (B)) are each amended by striking determining monthly participation rates under and inserting calculating the number described in . (c) Clarification of exemptions from participation requirement Section 407(b)(6) ( 42 U.S.C. 607(b)(6) ) (as redesignated by subsection (b)(1)(A)) is amended— (1) by striking all that precedes any fiscal year and inserting the following: (6) Exemptions from participation requirement (A) State option to disregard single custodial parent caring for a child under age 1 For