; and (2) resides in a household in which no adult receives assistance under the State program funded under this part or any other State program funded with qualified expenditures (as defined in section 409(a)(7)(B)(i)) on their own behalf. . (2) Penalty Section 409(a) of the Social Security Act ( 42 U.S.C. 609(a) ), as previously amended by this section, is amended by adding at the end the following new paragraph: (19) Penalty for failure to comply with work participation exemptions If the Secretary determines that a State to which a grant is made under section 403 in a fiscal year has violated subsection (h) of section 408 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 3 percent of the State family assistance grant. . (e) Eliminating 5-Year cap on assistance for older caregiver relatives and caregiver relatives caring for a child with a disability (1) In general Section 408(a)(7) of the Social Security Act ( 42 U.S.C. 608(a)(7) ), as amended by subsection (c)(1), is amended by adding at the end the following new subparagraph: (I) Non-application of limit to older caregiver relatives and caregiver relatives caring for a child with a disability (i) No limit for older caregiver relatives and caregiver relatives caring for a child with a disability Subparagraph (A) shall not apply and a State shall not limit the number of months of 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)(i)) based on receipt of such assistance by an individual who is an older caregiver relative or a caregiver relative caring for a child with a disability (as such terms are defined for purposes of paragraph (14)). (ii) Disregard of months of assistance In determining the number of months for which a family that includes an adult who has received assistance under the State program funded under this part or