I

104TH CONGRESS

1ST SESSION H. R. 1146

To reduce the Federal welfare bureaucracy and empower States to design

and implement efficient welfare programs that promote personal responsibility, work, and stable families by replacing certain Federal welfare

programs with a program of annual block grants to States, and for

other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 7, 1995

Mr. HASTINGS of Washington (for himself, Mr. FOX of Pennsylvania, Mr.

SHADEGG, Mrs. CHENOWETH, Mr. DOOLITTLE, Mr. INGLIS of South

Carolina, Mr. METCALF, Mr. SCARBOROUGH, and Mr. NEUMANN) introduced the following bill; which was referred to the Committee on Ways

and Means and, in addition, to the Committees on Commerce, Agriculture, Resources, Economic and Educational Opportunities, Banking

and Financial Services, the Judiciary, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each

case for consideration of such provisions as fall within the jurisdiction of

the committee concerned

A BILL

To reduce the Federal welfare bureaucracy and empower

States to design and implement efficient welfare programs that promote personal responsibility, work, and

stable families by replacing certain Federal welfare programs with a program of annual block grants to States,

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘State Flexibility, Indi3 vidual Empowerment, and Dependency Reduction Act’’.

4 SEC. 2. GRANTS TO STATES FOR AID TO LOW-INCOME INDI5 VIDUALS.

6 (a) AUTHORITY TO MAKE BLOCK GRANTS.—The

7 Secretary of Health and Human Services shall make a

8 grant to each State for each of the fiscal years 1996

9 through 2015 in an amount equal to the allotment of the

10 State, determined in accordance with subsection (d) for

11 the fiscal year, if the State agrees to expend the grant

12 in accordance with subsection (c).

13 (b) PRIOR APPROPRIATION REQUIRED.—The author14 ity provided by subsection (a) shall be effective only to

15 such extent or in such amounts as are provided in advance

16 in appropriations Acts.

17 (c) PROVISION OF AID TO LOW-INCOME INDIVID18 UALS.—A State shall use funds paid to the State under

19 this section to provide aid to low-income individuals in

20 need of assistance to gain economic independence. A State

21 shall have the authority to provide such aid in any manner

22 determined appropriate by the State, including the author23 ity to determine—

24 (1) the type of benefits constituting such aid;

25 (2) the level of benefits constituting such aid;

26 and
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1 (3) the eligibility criteria for such aid.

2 (d) ALLOTMENTS TO STATES.—

3 (1) IN GENERAL.—The allotment for a State

4 for a fiscal year specified in subsection (a) shall

5 equal the applicable percentage of the total amount

6 of Federal funds received by the State, or by any ad7 ditional recipient described in paragraph (2) with re8 spect to the State, for or during fiscal year 1995

9 under the programs eliminated by the amendments

10 and repeals made by section 3 (as such programs

11 were in effect immediately before the effective date

12 of such amendments and repeals).

13 (2) ADDITIONAL RECIPIENTS.—With respect to

14 a State, an additional recipient referred to in para15 graph (1) means any of the following:

16 (A) A governmental unit of the State.

17 (B) An individual who resides in the State

18 during fiscal year 1995.

19 (C) A person, other than an individual,

20 whose principal place of business is in the State

21 during fiscal year 1995.

22 (3) APPLICABLE PERCENTAGE.—For purposes

23 of paragraph (1), the term ‘‘applicable percentage’’

24 means—

25 (A) for fiscal year 1996, 100 percent; and
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1 (B) for fiscal years 1997 through 2015,

2 the applicable percentage for the immediately

3 preceding fiscal year reduced by 5 percentage

4 points.

5 (4) PROPORTIONATE REDUCTION UNDER CER6 TAIN CIRCUMSTANCES.—If the funds appropriated to

7 carry out this section for any fiscal year are not suf8 ficient to pay in full the total amount which other9 wise would be payable to the States under paragraph

10 (2) for such year, the allotment for each State for

11 such year shall bear the same proportion to the total

12 amount of such appropriated funds as such allot13 ment would have borne to the total amount which all

14 States would have received under this section for

15 such year if the funds appropriated had not been in16 sufficient. In a case where additional funds become

17 available for making grants under this section for

18 any fiscal year during which the preceding sentence

19 is applicable, the allotment for each State shall be

20 increased on the same basis as it was reduced.

21 (e) NO APPLICATION OR PERFORMANCE REPORT RE22 QUIREMENTS.—A State may not be required to submit an

23 application or periodic performance reports to the Sec24 retary in order to receive a grant under this section. The

25 3d sentence of section 6503(h) of title 31, United States
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1 Code (relating to periodic authenticated reports), shall not

2 apply to a grant under this section. Records related to

3 funds received under this section shall be made available

4 to the Secretary, the Inspector General of the Department

5 of Health and Human Services, and the Comptroller Gen6 eral for necessary audits in accordance with such section.

7 (f) REPORTS TO THE CONGRESS.—If the Secretary

8 determines that a State has materially failed to comply

9 with any term of an award under this section, or has ex10 pended funds received under this section in a manner in11 consistent with Federal law, the Secretary shall report

12 such determination to the Congress. The Secretary may

13 not suspend or withhold for any period part or all of a

14 grant to a State under this section.

15 (g) AUTHORIZATION OF APPROPRIATIONS.—

16 (1) IN GENERAL.—There are authorized to be

17 appropriated to carry out this section such sums as

18 may be necessary for each of the fiscal years 1996

19 through 2015.

20 (2) ADVANCE NOTICE OF FUNDING.—For the

21 purpose of affording adequate notice of funding

22 available under this section, an appropriation to

23 carry out this section is authorized to be included in

24 an appropriation Act for the fiscal year preceding
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1 the fiscal year for which such appropriation is avail2 able for obligation.

3 SEC. 3. ELIMINATION OF CERTAIN WELFARE PROGRAMS.

4 (a) CASH AID.—

5 (1) AFDC.—Part A of title IV of the Social Se6 curity Act, except sections 403(h) and 417 (42

7 U.S.C. 601–617) is repealed.

8 (2) SSI.—Title XVI of the Social Security Act,

9 as in effect pursuant to the amendment made by

10 section 301 of the Social Security Amendments of

11 1972, (42 U.S.C. 1381–1383d) is repealed.

12 (3) FOSTER CARE AND ADOPTION ASSISTANCE

13 PROGRAMS.—Part E of title IV of the Social Secu14 rity Act (42 U.S.C. 470–479) is repealed.

15 (4) GRANTS TO TERRITORIES FOR AID TO THE

16 AGED.—Title I of the Social Security Act (42 U.S.C.

17 301–306) is repealed.

18 (5) GRANTS TO TERRITORIES FOR AID TO THE

19 BLIND.—Title X of the Social Security Act (42

20 U.S.C. 1201–1206) is repealed.

21 (6) GRANTS TO TERRITORIES FOR AID TO THE

22 TOTALLY DISABLED.—Title XIV of the Social Secu23 rity Act (42 U.S.C. 1351–1355) is repealed.

24 (7) GRANTS TO TERRITORIES FOR AID TO THE

25 AGED, BLIND, OR DISABLED.—Title XVI of the So-
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1 cial Security Act, as in effect without regard to the

2 amendment made by section 301 of the Social Secu3 rity Amendments of 1972, (42 U.S.C. 1381 note,

4 1382 note, and 1383 note, 1384 note, and 1385

5 note) is repealed.

6 (8) EXPENDITURES BY BUREAU OF INDIAN AF7 FAIRS.—The Act of November 2, 1921 (25 U.S.C.

8 13; commonly known as the ‘‘Snyder Act’’) is re9 pealed.

10 (b) MEDICAL AID.—

11 (1) INDIAN HEALTH SERVICES.—The Indian

12 Health Care Improvement Act (25 U.S.C. 1601 et

13 seq.) is repealed.

14 (2) MATERNAL AND CHILD HEALTH SERVICES

15 BLOCK GRANT PROGRAM.—Title V of the Social Se16 curity Act (42 U.S.C. 701–709) is repealed.

17 (3) COMMUNITY HEALTH CENTERS.—Section

18 330 of the Public Health Service Act (42 U.S.C.

19 254c) is repealed.

20 (4) MIGRANT HEALTH CENTERS.—Section 329

21 of the Public Health Service Act (42 U.S.C. 254b)

22 is repealed.

23 (c) FOOD AID.—

24 (1) FOOD STAMP PROGRAM.—The Food Stamp

25 Act of 1977 (7 U.S.C. 2011 et seq.) is repealed.
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1 (2) SCHOOL LUNCH PROGRAM.—Sections 4, 6,

2 and 11 of the National School Lunch Act (42 U.S.C.

3 1753, 1755, and 1759a) are repealed.

4 (3) EMERGENCY FOOD ASSISTANCE PRO5 GRAM.—The Emergency Food Assistance Act of

6 1983 (7 U.S.C. 612c note) is repealed.

7 (4) SCHOOL BREAKFAST PROGRAM.—Section 4

8 of the Child Nutrition Act of 1966 (42 U.S.C. 1773)

9 is repealed.

10 (5) CHILD AND ADULT CARE FOOD PROGRAM.—

11 Section 17 of the National School Lunch Act (42

12 U.S.C. 1766) is repealed.

13 (6) SUMMER FOOD SERVICE PROGRAM FOR

14 CHILDREN.—Section 13 of the National School

15 Lunch Act (42 U.S.C. 1761) is repealed.

16 (7) COMMODITY SUPPLEMENTAL FOOD PRO17 GRAM FOR CHILDREN AND THE ELDERLY.—Sections

18 4 and 5 of the Agriculture and Consumer Protection

19 Act of 1973 (7 U.S.C. 612c note) are repealed.

20 (8) SPECIAL MILK PROGRAM.—Section 3 of the

21 Child Nutrition Act of 1966 (42 U.S.C. 1772) is re22 pealed.

23 (d) HOUSING AID.—
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1 (1) SECTION 8 RENTAL ASSISTANCE AND PUB2 LIC HOUSING.—Title I of the United States Housing

3 Act of 1937 (42 U.S.C. 1437 et seq.) is repealed.

4 (2) RURAL SINGLE FAMILY HOUSING LOANS.—

5 Section 502 of the Housing Act of 1949 (42 U.S.C.

6 1472) is repealed.

7 (3) SECTION 236 INTEREST REDUCTION ASSIST8 ANCE.—Section 236 of the National Housing Act

9 (12 U.S.C. 1715z–1) is repealed.

10 (4) RURAL RENTAL HOUSING ASSISTANCE.—

11 Section 515 of the Housing Act of 1949 (42 U.S.C.

12 1485) is repealed.

13 (5) RURAL RENTAL ASSISTANCE PAYMENTS.—

14 Paragraph (2) of section 521(a) of the Housing Act

15 of 1949 (42 U.S.C. 1490a(a)(2)) is repealed.

16 (6) SECTION 235 HOMEOWNERSHIP ASSIST17 ANCE.—Section 235 of the National Housing Act

18 (12 U.S.C. 1715z) is repealed.

19 (7) RENT SUPPLEMENT ASSISTANCE.—Section

20 101 of the Housing and Urban Development Act of

21 1968 (12 U.S.C. 1701s) is repealed.

22 (8) RURAL HOUSING REPAIR ASSISTANCE.—

23 Section 504 of the Housing Act of 1949 (42 U.S.C.

24 1474) is repealed.
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1 (9) FARM LABOR HOUSING LOANS.—Section

2 514 of the Housing Act of 1949 (42 U.S.C. 1483)

3 is repealed.

4 (10) RURAL HOUSING SELF-HELP TECHNICAL

5 ASSISTANCE.—Section 523 of the Housing Act of

6 1949 (42 U.S.C. 1490c) is repealed.

7 (11) FARM LABOR HOUSING GRANTS.—Section

8 516 of the Housing Act of 1949 (42 U.S.C. 1486)

9 is repealed.

10 (12) RURAL HOUSING PRESERVATION

11 GRANTS.—Section 533 of the Housing Act of 1949

12 (42 U.S.C. 1490m) is repealed.

13 (e) ENERGY AID.—

14 (1) LOW-INCOME HOME ENERGY ASSISTANCE

15 PROGRAMS.—The Low-Income Home Energy Assist16 ance Act of 1981 (42 U.S.C. 8621–8629) is re17 pealed.

18 (2) WEATHERIZATION ASSISTANCE PROGRAM.—

19 Part A of title IV of the Energy Conservation and

20 Production Act (42 U.S.C. 6861–6872), and the

21 items relating thereto in the table of contents of

22 such Act, are repealed.

23 (f) JOBS, TRAINING, AND VOCATIONAL EDUCATION

24 AID.—
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1 (1) JOB TRAINING.—The Job Training Partner2 ship Act (29 U.S.C. 1501 et seq.) is repealed.

3 (2) JOBS PROGRAM.—Part F of title IV of the

4 Social Security Act (42 U.S.C. 681–687) is repealed.

5 (3) INDIAN EMPLOYMENT, TRAINING, AND RE6 LATED SERVICES.—The Indian Employment, Train7 ing and Related Services Demonstration Act of 1992

8 (25 U.S.C. 3401–3417) is repealed.

9 (4) VOCATIONAL EDUCATION.—The Carl D.

10 Perkins Vocational and Applied Technology Edu11 cation Act (20 U.S.C. 2301 et seq.) is repealed.

12 (g) SOCIAL SERVICES.—

13 (1) BLOCK GRANTS TO STATES FOR SOCIAL

14 SERVICES.—Title XX of the Social Security Act (42

15 U.S.C. 1397–1397f) is repealed.

16 (2) COMMUNITY SERVICES BLOCK GRANT PRO17 GRAM.—The Community Services Block Grant Act

18 (42 U.S.C. 9901), other than sections 671 and 673

19 of such Act, is repealed.

20 (3) LEGAL SERVICES.—The Legal Services Cor21 poration Act of 1974 (42 U.S.C. 2996 et seq.) is re22 pealed.

23 (4) FEMA EMERGENCY FOOD AND SHELTER

24 PROGRAM.—Title III of the Stewart B. McKinney
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1 Homeless Assistance Act (42 U.S.C. 11331 et seq.)

2 is repealed.

3 (5) RESEARCH REGARDING FAMILY PLANNING

4 AND POPULATION ISSUES.—Section 1004 of the

5 Public Health Service Act (42 U.S.C. 300a–2) is re6 pealed.

7 (6) VOLUNTARY FAMILY PLANNING

8 PROJECTS.—Section 1001 of the Public Health

9 Service Act (42 U.S.C. 300) is repealed.

10 (7) DOMESTIC VOLUNTEER SERVICE ACT.—The

11 Domestic Volunteer Service Act of 1973 (42 U.S.C.

12 4950 et seq.) is repealed.

13 (8) CHILD CARE ASSISTANCE.—The Child Care

14 and Development Block Grant Act of 1990 (42

15 U.S.C. 9858 et seq.) is repealed.

16 (9) CHILD AND FAMILY SERVICES.—Part B of

17 title IV of the Social Security Act (42 U.S.C. 420–

18 435) is repealed.

19 (10) CHILD DEVELOPMENT ASSOCIATE SCHOL20 ARSHIP ASSISTANCE ACT OF 1985.—Title VI of the

21 Human Services Reauthorization Act of 1986 (42

22 U.S.C. 10901–10905) is repealed.

23 (11) STATE DEPENDENT CARE DEVELOPMENT

24 GRANTS ACT.—Subchapter E of chapter 8 of subtitle
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1 A of title VI of the Omnibus Budget Reconciliation

2 Act of 1981 (42 U.S.C. 9871–9877) is repealed.

3 (12) NATIVE HAWAIIAN FAMILY-BASED EDU4 CATION CENTERS.—Section 9205 of the Native Ha5 waiian Education Act (Public Law 103–382; 108

6 Stat. 3794) is repealed.

7 (13) PROGRAMS OF NATIONAL SIGNIFICANCE.—

8 Title X of the Elementary and Secondary Education

9 Act of 1965, as amended by Public Law 103–382

10 (108 Stat. 3809 et seq.), is amended—

11 (A) in section 10413(a) by striking para12 graph (4),

13 (B) in section 10963(b)(2) by striking sub14 paragraph (G), and

15 (C) in section 10974(a)(6) by striking sub16 paragraph (G).

17 (14) ABANDONED INFANTS ASSISTANCE.—The

18 Abandoned Infants Assistance Act of 1988 (42

19 U.S.C. 670 note) is repealed.

20 (15) CHILD ABUSE PREVENTION AND TREAT21 MENT.—The Child Abuse Prevention and Treatment

22 Act (42 U.S.C. 5101 et seq.) is repealed.

23 (16) FUNDING FOR INVESTIGATION AND PROS24 ECUTION OF CHILD ABUSE AND NEGLECT.—The
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1 Victims of Crime Act of 1984 (42 U.S.C. 10601 et

2 seq.) is amended—

3 (A) in section 1402—

4 (i) in subsection (d)—

5 (I) by striking paragraph (2);

6 and

7 (II) by redesignating paragraphs

8 (3) and (4) as paragraphs (2) and

9 (3), respectively; and

10 (ii) by striking subsection (g); and

11 (B) by striking section 1404A.

12 (17) ADOPTION OPPORTUNITIES.—The Child

13 Abuse Prevention and Treatment and Adoption Re14 form Act of 1978 (42 U.S.C. 5111 et seq.) is re15 pealed.

16 (18) FAMILY VIOLENCE PREVENTION AND

17 TREATMENT.—The Family Violence Prevention and

18 Services Act (42 U.S.C. 10401–10418) is repealed.

19 (19) FAMILY SUPPORT CENTERS.—Subtitle F

20 of title VII of the Stewart B. McKinney Homeless

21 Assistance Act (42 U.S.C. 11481–11489) is re22 pealed.

23 (20) COOPERATIVE RESEARCH OR DEMONSTRA24 TION PROJECTS.—Section 1110 of the Social Secu25 rity Act (42 U.S.C. 1310) is repealed.
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1 (21) MISSING CHILDREN’S ASSISTANCE ACT.—

2 The Missing Children’s Assistance Act (42 U.S.C.

3 5771–5779) is repealed.

4 (22) INVESTIGATION AND PROSECUTION OF

5 CHILD ABUSE CASES.—Subtitle A of title II of the

6 Victims of Child Abuse Act of 1990 (42 U.S.C.

7 13001–13004) is repealed.

8 (h) AID TO LOW-INCOME COMMUNITIES.—

9 (1) COMMUNITY DEVELOPMENT BLOCK GRANTS

10 AND URBAN DEVELOPMENT ACTION GRANTS.—Title

11 I of the Housing and Community Development Act

12 of 1974 (42 U.S.C. 5301 et seq.) is repealed.

13 (2) ECONOMIC DEVELOPMENT ASSISTANCE.—

14 The Public Works and Economic Development Act

15 of 1965 (42 U.S.C. 3121 et seq.) is repealed.

16 (3) APPALACHIAN REGIONAL DEVELOPMENT

17 PROGRAM.—The Appalachian Regional Development

18 Commission is terminated and the Appalachian Re19 gional Development Act of 1965 (40 U.S.C. App. 1

20 et seq.) is repealed.

21 (4) STATE LEGALIZATION IMPACT-ASSISTANCE

22 GRANTS.—Section 204 of the Immigration Reform

23 and Control Act of 1986 (8 U.S.C. 1255a note) is

24 repealed.
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1 SEC. 4. ELIGIBILITY UNDER THE MEDICAID PROGRAM.

2 (a) IN GENERAL.—Section 1902(a)(10)(A)(i)(I) of

3 the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(I))

4 is amended to read as follows:

5 ‘‘(I)(aa) who are receiving aid or

6 assistance under any plan of the State

7 approved under title I, X, or XIV, or

8 ‘‘(bb) who would be eligible to re9 ceive aid or assistance under the

10 State’s plan under title XVI or part A

11 or E of title IV, as approved on the

12 day before the date of the enactment

13 of the State Flexibility, Individual

14 Empowerment, and Dependency Re15 duction Act, if such plan were in ef16 fect,’’.

17 (b) REPEAL OF MEDICAID EXTENSION PROVI18 SIONS.—Section 1925 of the Social Security Act (42

19 U.S.C. 1396r–6) is repealed.

20 SEC. 5. TRANSFER OF CERTAIN PROVISIONS.

21 (a) PENALTIES FOR SUBSTANTIAL NONCOMPLIANCE

22 WITH STATE PLAN FOR CHILD AND SPOUSAL SUP23 PORT.—

24 (1) IN GENERAL.—Section 403(h) of the Social

25 Security Act (42 U.S.C. 603(h)) is hereby trans26 ferred to section 455 of such Act, inserted after sub-
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1 section (b) of such section 455, and redesignated as

2 subsection (c).

3 (2) CONFORMING AMENDMENTS.—

4 (A) Section 455(c) of such Act (42 U.S.C.

5 655(c)), as added by paragraph (1) of this sub6 section, is amended—

7 (i) in paragraph (1)—

8 (I) by striking ‘‘Act’’ and insert9 ing ‘‘part’’;

10 (II) by striking ‘‘part D’’ and in11 serting ‘‘this part’’; and

12 (III) by striking ‘‘such part’’ and

13 inserting ‘‘this part’’; and

14 (ii) by striking paragraph (3).

15 (B) Section 452(a)(4) of such Act (42

16 U.S.C. 652(a)(4)) is amended—

17 (i) by striking ‘‘403(h)(1)’’ and insert18 ing ‘‘455(c)(1)’’; and

19 (ii) by striking ‘‘403(h)(2)’’ and in20 serting ‘‘455(c)(2)’’.

21 (C) Section 452 of such Act (42 U.S.C.

22 652) is amended, in each of subsections (a)(4),

23 (d)(3)(A), (g)(1), and (g)(3)(A), by striking

24 ‘‘403(h)’’ and inserting ‘‘455(c)’’.

25 (b) ASSISTANT SECRETARY FOR FAMILY SUPPORT.—
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1 (1) IN GENERAL.—Section 417 of the Social

2 Security Act (42 U.S.C. 617) is hereby transferred

3 to section 452 of such Act, added at the end of such

4 section 452, and redesignated as subsection (j).

5 (2) CONFORMING AMENDMENT.—Section 452(j)

6 of such Act (42 U.S.C. 652(j)), as added by para7 graph (1) of this subsection, is amended—

8 (A) by striking ‘‘ASSISTANT SECRETARY

9 FOR FAMILY SUPPORT’’; and

10 (B) by striking ‘‘programs under this part,

11 part D, and part F’’ and inserting ‘‘program

12 under this part’’.

13 SEC. 6. DEFINITIONS.

14 For purposes of this Act:

15 (1) INDIAN TRIBE.—The term ‘‘Indian tribe’’

16 means any Indian tribe, band, nation, or other orga17 nized group or community, including any Alaska Na18 tive village or regional corporation as defined in or

19 established pursuant to the Alaska Native Claims

20 Settlement Act, which is recognized as eligible for

21 the special programs and services provided by the

22 United States to Indians because of their status as

23 Indians.

24 (2) SECRETARY.—The term ‘‘Secretary’’ means

25 the Secretary of Health and Human Services.
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1 (3) STATE.—The term ‘‘State’’ means any of

2 the several States, the District of Columbia, the

3 Commonwealth of Puerto Rico, Guam, the Virgin Is4 lands of the United States, American Samoa, the

5 Commonwealth of the Northern Mariana Islands,

6 the Republic of the Marshall Islands, the Federated

7 States of Micronesia, the Republic of Palau, or an

8 Indian tribe.

9 SEC. 7. EFFECTIVE DATES.

10 (a) GENERAL EFFECTIVE DATE.—Except as pro11 vided in subsection (b), this Act shall take effect on the

12 date of the enactment of this Act.

13 (b) SPECIAL EFFECTIVE DATE.—The amendments

14 and repeals made by section 3 and the amendments made

15 by section 4 shall not take effect until the first day of

16 the first fiscal year for which funds are appropriated more

17 than 180 days in advance of such fiscal year to carry out

18 section 2.

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