Racial Equity and Fair Treatment Act of 2003

Racial Equity and Fair Treatment Act of 2003 - Authorizes the Secretary of Health and Human Services to award grants to States and county applicants to pay the Federal share of the costs of improving the administration of support programs for low-income families with children.

Amends part A (Temporary Assistance for Needy Families) (TANF) of title IV of the Social Security Act to revise requirements for assessments and work activities for TANF recipients.

Requires: (1) interpretation and translation services in certain cases for TANF recipients; (2) an expedited process for discrimination complaints; (3) provision of notice of rights of TANF recipients; (3) training of TANF program personnel in respecting such rights; (4) standardized sanction process; and (5) opportunity for TANF applicants or recipients to appeal adverse decisions.

Modifies penalties against individuals for violating mandatory work requirements, creating additional exceptions, including those for child care and discrimination.

Prohibits States from diverting potential TANF applicants.

Bans States from penalizing the entire family for the misconduct of one family member.

Amends the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 to repeal provisions for denial of assistance and benefits for certain drug-related convictions.

Makes various changes under the TANF program concerning: (1) the five-year time limit on assistance; and (2) treatment of aliens.

Permits participation in English-as-a-second language programs as a work activity.

Prescribes requirements encouraging racial equality.