; (4) in paragraph (11), by striking and at the end; (5) in paragraph (12), by striking the period and inserting ; and ; and (6) by adding at the end the following: (13) participation in an in-home program teaching parenting skills that complies with the requirements of section 407(c). . (e) Penalty against States (1) In general Section 409(a)(3) ( 42 U.S.C. 609(a)(3) ) is amended by striking all that precedes subparagraph (B) and inserting the following: (3) Failure to satisfy work outcomes and work engagement (A) In general If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has failed to comply with any of section 407(a)(1), section 408(b)(3), or section 408(b)(4) for 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 the applicable percentage of the State family assistance grant. . (2) Transition rule The Secretary of Health and Human Services may not impose a penalty under section 409(a)(3) of the Social Security Act by reason of the failure of a State to comply with section 407(a) of such Act for any fiscal year before fiscal year 2021. (f) Pro rata reduction of assistance for individual noncompliance Section 407(e) ( 42 U.S.C. 607(e) ) is amended by adding at the end the following: (3) Pro rata reduction For purposes of paragraph (1)(A), the amount of a pro rata reduction in assistance shall be determined by multiplying the total amount of monthly assistance that would, in the absence of the application of this paragraph, be paid to the entire family, by the ratio of— (A) the number of hours of required work activities as designated in subsection (d) actually performed by the individual during the month