To establish Federal safeguards for the prevention of sexual misconduct of women inmates at State correctional institutions.

Prohibits a State that does not have, or fails to implement, specified safeguards against sexual harassment of women inmates at State correctional institutions from receiving ten percent of the funds that would otherwise be allocated to the State under violent offender incarceration and truth-in-sentencing incentive grant provisions of the Violent Crime Control and Law Enforcement Act of 1994. Provides for the reallocation of such funds to States in compliance.

Includes among such safeguards requirements that: (1) each State department of corrections provide mandatory sexual harassment and abuse (harassment) awareness training to the department's officials and staff (officials), periodically submit a report to the State attorney general for the purpose of detecting any pattern of harassment of women inmates, and carry out a system under which women inmates are able to confidentially report harassment by department officials, reports are investigated, and the officials responsible are sanctioned; and (2) the State have criminal penalties explicitly prohibiting custodial sexual misconduct by correctional staff against women inmates and submit reports to Congress and to the Attorney General on State compliance with these safeguards.