I

103D CONGRESS

2D SESSION H. R. 4793

To amend part A of title IV of the Social Security Act to offer States

the option of replacing the Job Opportunities and Basic Skills Training

(JOBS) program with a program that would assist all recipients of

aid to families with dependent children in achieving self-sufficiency, and

for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 19, 1994

Mr. ORTON introduced the following bill; which was referred jointly to the

Committees on Ways and Means, Education and Labor, Energy and

Commerce, and Agriculture

A BILL

To amend part A of title IV of the Social Security Act

to offer States the option of replacing the Job Opportunities and Basic Skills Training (JOBS) program with

a program that would assist all recipients of aid to

families with dependent children in achieving selfsufficiency, 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,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Self-Sufficiency Act

5 of 1994’’.
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1 SEC. 2. TABLE OF CONTENTS.

2 The table of contents of this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—SELF-SUFFICIENCY PROGRAM

Sec. 101. Establishment and operation of program.

Sec. 102. Child care guaranteed to participants in State self-sufficiency

programs.

Sec. 103. Increased Federal matching rates for child care provided by States

with self-sufficiency programs.

Sec. 104. Elimination of requirement that families in States with self-sufficency

programs have received AFDC for a minimum period before

becoming eligible for transitional medicaid benefits or transitional child care benefits.

Sec. 105. Eligibility for transitional medicaid benefits and transitional child

care benefits in States with self-sufficency programs without

regard to type of income that would otherwise result in ineligibility for benefits.

Sec. 106. Elimination of certain exceptions from requirement that minor parents and pregnant minors without children live with responsible

adult in States with self-sufficiency programs.

TITLE II—OTHER PROVISIONS

Sec. 201. Disregard of persons who become family members after initial receipt

of AFDC.

Sec. 202. Enhanced payments for participants in the self-sufficiency program.

Sec. 203. Diversion payments.

Sec. 204. Aid to families without regard to the number of parents in the home.

Sec. 205. 2-parent families ineligible for AFDC until 30 days after loss of

employment.

Sec. 206. Increase in earned income disregard and elimination of time limitation on earned income disregard.

Sec. 207. Increase in asset limitations.

Sec. 208. Amendments to the Food Stamp Act of 1977.

TITLE III—RELATED AMENDMENTS

Sec. 301. Denial of welfare benefits to aliens.

Sec. 302. Inclusion in consumer credit reports of information on overdue child

support obligations of the consumer.

Sec. 303. Quarterly payments of earned income credit.

TITLE IV—EFFECTIVE DATE

Sec. 401. Effective date.
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1 TITLE I—SELF-SUFFICIENCY

2 PROGRAM

3 SEC. 101. ESTABLISHMENT AND OPERATION OF PROGRAM.

4 (a) STATE PLAN REQUIREMENT.—Section

5 402(a)(29) of the Social Security Act is amended to read

6 as follows:

7 ‘‘(29) at the option of the State, in lieu of the

8 requirements of paragraph (19) and part F, provide

9 that—

10 ‘‘(A) the State has in effect and operation

11 a self-sufficiency program which meets the re12 quirements of part G;

13 ‘‘(B)(i) not later than the end of the 3-

14 year period that begins on the date the Sec15 retary first approves the State plan under part

16 G, the State shall require not less than 30 per17 cent of the recipients of aid under the State

18 plan (selected by the State in accordance with

19 such criteria as the State establishes in regula20 tions) to participate in the program;

21 ‘‘(ii) not later than the end of the 5-year

22 period that begins on the date the Secretary

23 first approves the State plan under part G, the

24 State shall require not less than 50 percent of

25 the recipients of aid under the State plan (se-
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1 lected by the State in accordance with such cri2 teria as the State establishes in regulations) to

3 participate in the program;

4 ‘‘(iii) not later than the end of the 8-year

5 period that begins on the date the Secretary

6 first approves the State plan under part G, the

7 State shall require not less than 75 percent of

8 the recipients of aid under the State plan (se9 lected by the State in accordance with such cri10 teria as the State establishes in regulations) to

11 participate in the program; and

12 ‘‘(iv) not later than the end of the 10-year

13 period that begins on the date the Secretary

14 first approves the State plan under part G, the

15 State shall, except as provided in subparagraph

16 (C), require each recipient of aid under the

17 State plan to participate in the program;

18 ‘‘(C) the State may not require an individ19 ual to participate in the program—

20 ‘‘(i) during a period described in

21 clause (i), (ii), or (iii) of subparagraph (B),

22 if the individual resides in an area of the

23 State where the program is not available;

24 or
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1 ‘‘(ii) if the individual is unable to

2 meaningfully participate in the program

3 due to a physical or psychological condi4 tion; and

5 ‘‘(D) the amount of aid otherwise payable

6 under the State plan to a family that includes

7 an individual who fails without good cause to

8 participate in the program, comply with any

9 term or condition of the self-sufficiency plan de10 veloped for the individual, or accept a bona fide

11 offer of employment shall be reduced by—

12 ‘‘(i) 25 percent for the 1st month of

13 such failure; and

14 ‘‘(ii) such equal increments for each of

15 the next 24 months of such failure as will

16 result in no benefit at the end of such 24-

17 month period;’’.

18 (b) ESTABLISHMENT AND OPERATION OF PRO19 GRAM.—Title IV of such Act (42 U.S.C. 601–687) is

20 amended by adding at the end the following:

21 ‘‘PART G—SELF-SUFFICIENCY PROGRAM

22 ‘‘SEC. 491. PURPOSE AND DEFINITIONS.

23 ‘‘(a) PURPOSE.—The purpose of this part is to assist

24 needy families with children in becoming self-sufficient.
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1 ‘‘(b) DEFINITIONS.—Except to the extent otherwise

2 provided, each term used in this part shall have the same

3 meaning given the term in or under part A.

4 ‘‘SEC. 492. ESTABLISHMENT AND OPERATION OF STATE

5 PROGRAMS.

6 ‘‘(a) GENERAL REQUIREMENTS.—

7 ‘‘(1) STATE PLAN REQUIRED.—

8 ‘‘(A) IN GENERAL.—Each State that is not

9 operating a program under part F may estab10 lish and operate a self-sufficiency program (in

11 this part referred to as the ‘program’) under a

12 plan approved by the Secretary as meeting the

13 requirements of this part and section

14 402(a)(29).

15 ‘‘(B) CONTENTS.—The plan referred to in

16 subparagraph (A) for the program shall—

17 ‘‘(i) describe how the State intends to

18 implement the program during the period

19 covered by the plan;

20 ‘‘(ii) indicate, through cross-references

21 to the appropriate provisions of this part

22 and part A, that the program will be oper23 ated in accordance with such provisions of

24 law;
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1 ‘‘(iii) contain an estimate of the num2 ber of persons to be served by the pro3 gram;

4 ‘‘(iv) describe the services to be pro5 vided within the State and the political

6 subdivisions thereof, the needs to be ad7 dressed through the provision of such serv8 ices, the extent to which such services are

9 expected to be made available by other

10 agencies on a nonreimbursable basis, the

11 extent to which such services are to be pro12 vided or funded by the program, and the

13 way in which caseworkers are to be re14 trained to aid in the development of self15 sufficiency plans for participants in the

16 program;

17 ‘‘(v) contain such additional informa18 tion as the Secretary may require by regu19 lation to enable the Secretary to determine

20 that the State program will meet the re21 quirements of this part and part A.

22 ‘‘(C) UPDATES.—Not less frequently than

23 every 2 years after the Secretary first approves

24 a State plan under this part, the State shall re25 view and update the plan in accordance with
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1 regulations prescribed by the Secretary, and

2 submit to the Secretary the updated plan for

3 approval.

4 ‘‘(2) ADMINISTRATION.—The State agency that

5 administers or supervises the administration of the

6 State’s plan approved under section 402 shall be re7 sponsible for the administration or supervision of the

8 administration of the State’s program.

9 ‘‘(3) NO SUPPLANTATION OF NON-FEDERAL

10 FUNDS.—Federal funds made available to a State

11 for purposes of the program shall not be used to

12 supplant non-Federal funds for existing services and

13 activities which promote the purpose of this part.

14 ‘‘(4) REPORTS.—Each State that establishes a

15 self-sufficiency program under this part shall submit

16 to the Secretary on a quarterly basis, a report on—

17 ‘‘(A) the number of participants in the

18 program;

19 ‘‘(B) the number of such participants who

20 are employed on a full-time basis;

21 ‘‘(C) the number of such participants who

22 are employed on a part-time basis; and

23 ‘‘(D) the number of participants in the

24 program who have become ineligible for aid to
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1 families with dependent children during the pre2 ceding year by reason of excessive earnings.

3 ‘‘(b) CONSULTATION.—The Secretary shall consult

4 with the Secretary of Labor on general plan requirements

5 and on criteria to be used in approving State plans under

6 this section.

7 ‘‘SEC. 493. ASSESSMENT AND REVIEW OF NEEDS AND

8 SKILLS OF PARTICIPANTS; SELF9 SUFFICIENCY PLANS.

10 ‘‘(a) ASSESSMENT.—The State agency must make an

11 initial assessment of the educational, child care, and other

12 supportive services needs as well as the skills, prior work

13 experience, and employability of each participant in the

14 program under this part, including a review of the family

15 circumstances and the needs of any child of the

16 participant.

17 ‘‘(b) SELF-SUFFICIENCY PLAN.—On the basis of the

18 assessment made with respect to a participant under sub19 section (a), the State agency, in consultation with the par20 ticipant, shall develop a self-sufficiency plan for the partic21 ipant, which—

22 ‘‘(1) explains the services (including child care

23 and other supportive services) that will be provided

24 by the State agency and the activities in which the

25 participant will take part under the program;
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1 ‘‘(2) shall not require the participant to be en2 gaged in such activities for an unreasonable amount

3 of time each week;

4 ‘‘(3) sets forth an employment goal for the par5 ticipant, that, to the maximum extent possible and

6 consistent with this section, reflects the preferences

7 of the participant;

8 ‘‘(4) takes into account the participant’s sup9 portive services needs, available program resources,

10 and local employment opportunities; and

11 ‘‘(5) shall not be considered a contract.

12 ‘‘(c) AGREEMENT TO SELF-SUFFICIENCY PLAN.—

13 After a self-sufficiency plan has been developed under sub14 section (b) with respect to a participant, the State agency

15 shall—

16 ‘‘(1) require the participant (or the adult care17 taker in the family of which the participant is a

18 member) to negotiate and enter into an agreement

19 with the State agency that specifies such matters as

20 the participant’s obligations under the program, the

21 duration of participation in the program, and the ac22 tivities to be conducted and the services to be pro23 vided in the course of such participation; and
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1 ‘‘(2) give the participant such assistance as the

2 participant may require in reviewing and under3 standing the agreement.

4 ‘‘(d) AUTHORITY TO ASSIGN CASE MANAGERS.—The

5 State agency may assign to each participant in the pro6 gram and the participant’s family a case manager who is

7 responsible for assisting the family to obtain any services

8 which may be needed to assure effective participation in

9 the program.

10 ‘‘SEC. 494. PROVISION OF PROGRAM AND EMPLOYMENT

11 INFORMATION.

12 ‘‘(a) The State agency shall ensure that all applicants

13 for and recipients of aid to families with dependent chil14 dren are encouraged, assisted, and required to fulfill their

15 responsibilities to support their children by preparing for,

16 accepting, and retaining such employment as they are ca17 pable of performing.

18 ‘‘(b) The State agency shall inform all applicants for

19 and recipients of aid to families with dependent children

20 of the education, employment, and training opportunities,

21 and the support services (including child care and health

22 coverage transition options), for which they are eligible,

23 the obligations of the State agency, and the rights, respon24 sibilities, and obligations of participants in the program.

25 ‘‘(c) The State agency shall—
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1 ‘‘(1) provide (directly or through arrangements

2 with others) information on the types and locations

3 of child care services reasonably accessible to partici4 pants in the program;

5 ‘‘(2) inform participants that assistance is

6 available to help them select appropriate child care

7 services; and

8 ‘‘(3) on request, provide assistance to partici9 pants in obtaining child care services.

10 ‘‘(d) The State agency must inform applicants for

11 and recipients of aid to families with dependent children

12 of the grounds for exemption from participation in the

13 program and the consequences of refusal to participate if

14 not exempt, and provide other appropriate information

15 with respect to such participation.

16 ‘‘(e) Within 1 month after the State agency gives a

17 recipient of aid to families with dependent children the in18 formation described in the preceding provisions of this

19 subsection, the State agency must notify the recipient of

20 the opportunity to indicate a desire to participate in the

21 program, including a clear description of how to enter the

22 program.
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1 ‘‘SEC. 495. SERVICES AND ACTIVITIES UNDER THE

2 PROGRAM.

3 ‘‘In carrying out the program, each State may make

4 available the services and activities authorized to be made

5 available under part F, family counseling services, mental

6 health treatment services, and such other services and ac7 tivities as the State deems appropriate.

8 ‘‘SEC. 496. DISPUTE RESOLUTION PROCEDURES.

9 ‘‘Each State shall establish a conciliation procedure

10 for the resolution of disputes involving an individual’s par11 ticipation in the program and (if the dispute involved is

12 not resolved through conciliation) shall provide an oppor13 tunity for a hearing with respect to the dispute, which

14 hearing may be provided through a hearing process estab15 lished for purposes of resolving disputes with respect to

16 the program or through the provision of a hearing pursu17 ant to section 402(a)(4). The State may not suspend, re18 duce, discontinue, or terminate aid to families with de19 pendent children as a result of a dispute involving an indi20 vidual’s participation in the program until the individual

21 has an opportunity for a hearing that meets the standards

22 set forth by the United States Supreme Court in Goldberg

23 v. Kelly, 397 U.S. 254 (1970).
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1 ‘‘SEC. 497. PERFORMANCE STANDARDS.

2 ‘‘(a) Not later than 3 years after the effective date

3 of title I of the Self-Sufficiency Act of 1994, the Secretary

4 shall—

5 ‘‘(1) in consultation with the Secretary of

6 Labor, representatives of organizations representing

7 Governors, State and local program administrators,

8 educators, State job training coordinating councils,

9 community-based organizations, recipients, and

10 other interested persons, develop performance stand11 ards with respect to the programs established pursu12 ant to this part; and

13 ‘‘(2) submit to the appropriate committees of

14 jurisdiction of the Congress the recommendations of

15 the Secretary for performance standards developed

16 under paragraph (1), which recommendations shall

17 be made with respect to specific measurements of

18 outcomes and be based on the degree of success

19 which may reasonably be expected of States in help20 ing individuals to increase earnings, achieve self21 sufficiency, and reduce welfare dependency, and

22 shall not be measured solely by levels of activity or

23 participation.

24 Performance standards developed under this subsection

25 shall be reviewed periodically by the Secretary and modi26 fied to the extent necessary.
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1 ‘‘(b) The Secretary may collect information from the

2 States to assist in the development of performance stand3 ards under subsection (a), and shall include in the regula4 tions issued pursuant to section 102 of the Self5 Sufficiency Act of 1994 provisions establishing uniform re6 porting requirements under which States must furnish pe7 riodically information and data, including information and

8 data (for each program activity) on the average monthly

9 number of families assisted, the types of such families, the

10 amounts spent per family, the length of their participa11 tion, and such other matters as the Secretary may

12 determine.

13 ‘‘(c) The Secretary shall develop and transmit to the

14 Congress, for appropriate legislative action, a proposal for

15 measuring State progress, providing technical assistance

16 to enable States to meet performance standards, and

17 modifying the Federal matching rate to reflect the relative

18 effectiveness of the various States in carrying out the

19 program.

20 ‘‘SEC. 498. COORDINATION REQUIREMENTS.

21 ‘‘(a)(1) The Governor of each State shall assure that

22 program activities under this part are coordinated in that

23 State with programs operated under the Job Training

24 Partnership Act and with any other relevant employment,

25 training, and education programs available in that State.
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1 Appropriate components of the State’s plan developed

2 under section 492(a)(1) which relate to job training and

3 work preparation shall be consistent with the coordination

4 criteria specified in the Governor’s coordination and spe5 cial services plan required under section 121 of the Job

6 Training Partnership Act.

7 ‘‘(2) The State plan so developed shall be submitted

8 to the State job training coordinating council not less than

9 60 days before its submission to the Secretary, for the

10 purpose of review and comment by the council. Concurrent

11 with submission of the plan to the State job training co12 ordinating council, the proposed State plan shall be pub13 lished and made reasonably available to the general public

14 through local news facilities and public announcements, in

15 order to provide the opportunity for review and comment.

16 ‘‘(3) The comments and recommendations of the

17 State job training coordinating council under paragraph

18 (2) shall be transmitted to the Governor of the State.

19 ‘‘(b) The Secretary of Health and Human Services

20 shall consult with the Secretaries of Education and Labor

21 on a continuing basis for the purpose of assuring the max22 imum coordination of education and training services in

23 the development and implementation of the program

24 under this part.
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1 ‘‘(c) The State agency responsible for administering

2 or supervising the administration of the State plan ap3 proved under part A shall consult with the State education

4 agency and the agency responsible for administering job

5 training programs in the State in order to promote coordi6 nation of the planning and delivery of services under the

7 program with programs operated under the Job Training

8 Partnership Act and with education programs available in

9 the State (including any program under the Adult Edu10 cation Act or Carl D. Perkins Vocational Education

11 Act).’’.

12 (c) REGULATIONS.—

13 (1) IN GENERAL.—The Secretary, in consulta14 tion with the Secretary of Labor and with the re15 sponsible State agencies described in section

16 492(a)(2) of the Social Security Act, shall prescribe

17 such regulations as may be necessary to implement

18 the amendments made by this section, including reg19 ulations establishing uniform data collection

20 requirements.

21 (2) DEADLINE FOR ISSUANCE OF PROPOSED

22 REGULATIONS.—Not later than 3 months after the

23 date of the enactment of this Act, the Secretary of

24 Health and Human Services shall issue proposed

25 regulations pursuant to paragraph (1).
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1 (3) DEADLINE FOR ISSUANCE OF FINAL REGU2 LATIONS.—Not later than 6 months after the date

3 of the enactment of this Act, the Secretary shall

4 issue final regulations pursuant to paragraph (1).

5 SEC. 102. CHILD CARE GUARANTEED TO PARTICIPANTS IN

6 STATE SELF-SUFFICIENCY PROGRAMS.

7 Section 402(g)(1)(A)(i) of the Social Security Act (42

8 U.S.C. 602(g)(1)(A)(i)) is amended—

9 (1) by striking ‘‘and’’ at the end of subclause

10 (I);

11 (2) by striking the period at the end and insert12 ing ‘‘; and’’; and

13 (3) by adding after and below the end the fol14 lowing:

15 ‘‘(III) for each individual who is participating

16 in the State program established under part G in ac17 cordance with the self-sufficiency plan established

18 for the individual under section 492.’’.

19 SEC. 103. INCREASED FEDERAL MATCHING RATES FOR

20 CHILD CARE PROVIDED BY STATES WITH

21 SELF-SUFFICIENCY PROGRAMS.

22 (a) AFDC AND TRANSITIONAL CHILD CARE.—Sec23 tion 402(g)(3)(A) of such Act (42 U.S.C. 602(g)(3)(A))

24 is amended by adding at the end the following:
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1 ‘‘(iii) In the case of a State with a plan approved

2 under part G for the fiscal year, the applicable rate for

3 purposes of section 403(a) shall be the rate otherwise de4 termined under this subparagraph, increased by 10 per5 centage points.’’.

6 (b) AT-RISK CHILD CARE.—Section 403(n)(1)(A) of

7 such Act (42 U.S.C. 603(n)(1)(A)) is amended by insert8 ing ‘‘(increased by 10 percentage points, in the case of

9 a State with a plan approved under part G)’’ before ‘‘of

10 the expenditures’’.

11 SEC. 104. ELIMINATION OF REQUIREMENT THAT FAMILIES

12 IN STATES WITH SELF-SUFFICENCY PRO13 GRAMS HAVE RECEIVED AFDC FOR A MINI14 MUM PERIOD BEFORE BECOMING ELIGIBLE

15 FOR TRANSITIONAL MEDICAID BENEFITS OR

16 TRANSITIONAL CHILD CARE BENEFITS.

17 (a) MEDICAID.—Section 1925(a)(1) of the Social Se18 curity Act (42 U.S.C. 1396r–6(a)(1)) is amended by in19 serting ‘‘(or, in a State with an approved plan under part

20 G of title IV, during any of the 6 months)’’ after ‘‘6

21 months’’.

22 (b) TRANSITIONAL CHILD CARE.—Section

23 402(g)(1)(A)(iv) of such Act (42 U.S.C. 602(g)(1)(A)(iv))

24 is amended by inserting ‘‘in a State that does not have

25 a plan approved under part G’’ after ‘‘A family’’.
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1 SEC. 105. ELIGIBILITY FOR TRANSITIONAL MEDICAID BEN2 EFITS AND TRANSITIONAL CHILD CARE BEN3 EFITS IN STATES WITH SELF-SUFFICENCY

4 PROGRAMS WITHOUT REGARD TO TYPE OF

5 INCOME THAT WOULD OTHERWISE RESULT

6 IN INELIGIBILITY FOR BENEFITS.

7 (a) MEDICAID.—Section 1925(a)(1) of the Social Se8 curity Act (42 U.S.C. 1396r–6(a)(1)) is amended by in9 serting ‘‘, the receipt of any income of the caretaker rel10 ative (in the case of a State with an approved plan under

11 part G of title IV),’’ after ‘‘subsection (e))’’.

12 (b) TRANSITIONAL CHILD CARE.—Section

13 402(g)(1)(A)(ii) of such Act (42 U.S.C. 602(g)(1)(A)(ii))

14 is amended by striking ‘‘, or increased income from, such

15 employment or by reason of subsection (a)(8)(B)(ii)(II)’’

16 and inserting ‘‘such employment, by reason of subsection

17 (a)(8)(B)(ii)(II), increased income from such employment

18 if the State does not have a plan approved under part G,

19 or excessive income if the State has such a plan’’.

20 SEC. 106. ELIMINATION OF CERTAIN EXCEPTIONS FROM

21 REQUIREMENT THAT MINOR PARENTS AND

22 PREGNANT MINORS WITHOUT CHILDREN

23 LIVE WITH RESPONSIBLE ADULT IN STATES

24 WITH SELF-SUFFICIENCY PROGRAMS.

25 Clauses (iv) and (v) of section 402(a)(43)(B) of the

26 Social Security Act (42 U.S.C. 602(a)(43)(B) (iv) and (v))
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1 are each amended by inserting ‘‘, and the State does not

2 have a plan approved under part G’’ before the semicolon.

3 TITLE II—OTHER PROVISIONS

4 SEC. 201. DISREGARD OF PERSONS WHO BECOME FAMILY

5 MEMBERS AFTER INITIAL RECEIPT OF AFDC.

6 Section 402(a) of the Social Security Act (42 U.S.C.

7 602(a)) is amended—

8 (1) by striking ‘‘and’’ at the end of paragraph

9 (44);

10 (2) by striking the period at the end of para11 graph (45) and inserting ‘‘; and’’; and

12 (3) by inserting after paragraph (45) the fol13 lowing:

14 ‘‘(46) if the State has a plan approved under

15 part G, at the option of the State, provide that, in

16 determining the amount of aid payable under the

17 State plan to a family—

18 ‘‘(A) except as provided in subparagraph

19 (B), the family shall not be regarded as having

20 more members that the number of such mem21 bers at the time the family first becomes a re22 cipient of aid under the State plan; and

23 ‘‘(B) if the State has exercised the option

24 provided under section 406(b) with respect to

25 aid for pregnant women, a 1-parent or 2-parent
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1 family that includes a pregnant woman and no

2 children shall not be regarded as having more

3 members than the number of such members im4 mediately after the end of the pregnancy.’’.

5 SEC. 202. ENHANCED PAYMENTS FOR PARTICIPANTS IN

6 THE SELF-SUFFICIENCY PROGRAM.

7 Section 402(a) of the Social Security Act (42 U.S.C.

8 602(a)), as amended by section 201 of this Act, is amend9 ed—

10 (1) by striking ‘‘and’’ at the end of paragraph

11 (45);

12 (2) by striking the period at the end of para13 graph (46) and inserting ‘‘; and’’; and

14 (3) by inserting after paragraph (46) the fol15 lowing:

16 ‘‘(47) if the State has a plan approved under

17 part G, at the option of the State, provide that the

18 amount of aid otherwise payable on a monthly basis

19 to a family under the State plan shall be increased

20 by not more than $50 if each member of the family

21 who is required to participate a self-sufficiency pro22 gram established by the State under part G does so

23 on a full-time basis.’’.
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1 SEC. 203. DIVERSION PAYMENTS.

2 (a) IN GENERAL.—Section 402(a) of the Social Secu3 rity Act (42 U.S.C. 602(a)), as amended by sections 201

4 and 202 of this Act, is amended—

5 (1) by striking ‘‘and’’ at the end of paragraph

6 (46);

7 (2) by striking the period at the end of para8 graph (47) and inserting ‘‘; and’’; and

9 (3) by inserting after paragraph (47) the fol10 lowing:

11 ‘‘(48) if the State has a plan approved under

12 part G, at the option of the State, provide that, if

13 the caseworker for a family who is eligible for, but

14 not receiving, aid under the State plan determines

15 that the caretaker relative in the family will be em16 ployed by the end of the 3-month period that begins

17 with the date the family will become a recipient of

18 such aid and that, upon such employment, the fam19 ily will not need further assistance, then the State

20 shall, in lieu of the first 3 monthly payments of such

21 aid to the family, pay to the family, in a lump sum,

22 an amount equal 3 times the amount of the first

23 such monthly payment, on the date the first such

24 monthly payment would otherwise be made, and sub25 sequent payments (if any) of such aid to the family

26 shall be reduced (but not below zero) by an amount
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1 sufficient to recover the amount of the lump sum

2 payment.’’.

3 (b) 3 MONTHS OF CHILD CARE FOR FAMILIES

4 RECEIVING A DIVERSION PAYMENT.—Section

5 402(g)(1)(A)(i) of such Act (42 U.S.C. 602(g)(1)(A)(i)),

6 as amended by section 102 of this Act, is amended—

7 (1) by striking ‘‘and’’ at the end of subclause

8 (II);

9 (2) by striking the period at the end and insert10 ing ‘‘; and’’; and

11 (3) by adding after and below the end the fol12 lowing:

13 ‘‘(IV) for 3 months, for each family with a de14 pendent child requiring such care if the family re15 ceives a diversion payment under subsection

16 (a)(48).’’.

17 (c) MEDICAID FOR FAMILIES RECEIVING A DIVER18 SION PAYMENT.—Section 1902(a)(10)(A)(i)(I) of such

19 Act (42 U.S.C. 1396a(a)(10)(A)(i)(I)) is amended by in20 serting ‘‘, and including individuals receiving assistance

21 under section 402(a)(48)’’ after ‘‘482(e)(6)’’.

22 SEC. 204. AID TO FAMILIES WITHOUT REGARD TO THE

23 NUMBER OF PARENTS IN THE HOME.

24 (a) IN GENERAL.—
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1 (1) Section 402(a)(41) of the Social Security

2 Act (42 U.S.C. 602(a)(41)) is amended by inserting

3 ‘‘if the State does not have a plan approved under

4 part G (otherwise, at the option of the State),’’ after

5 ‘‘(41)’’.

6 (2) Section 407(a) of such Act (42 U.S.C.

7 607(a)) is amended by inserting ‘‘if the State does

8 not have a plan approved under part G (otherwise,

9 at the option of the State),’’ after ‘‘shall,’’.

10 (b) CONFORMING AMENDMENTS.—

11 (1) Section 402(a)(38)(B) of such Act (42

12 U.S.C. 602(a)(38)(B)) is amended by inserting ‘‘, if

13 the State exercises the option provided under para14 graph (41),’’ after ‘‘406(a) or’’.

15 (2) Section 406(a)(1) of such Act (42 U.S.C.

16 606(a)(1)) is amended by inserting ‘‘, if a resident

17 of a State that has exercised the option provided

18 under section 402(a)(41),’’ after ‘‘(1) who’’.

19 (3) Section 406(b)(1) of such Act (42 U.S.C.

20 606(b)(1)) is amended by inserting ‘‘, in the case of

21 a State that has exercised the option provided under

22 section 402(a)(41),’’ after ‘‘mental incapacity of a

23 parent or’’.

24 (4) Section 472(a) of such Act (42 U.S.C.

25 672(a)) is amended by inserting ‘‘, in the case of a
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1 State that has exercised the option provided under

2 section 402(a)(41),’’ after ‘‘406(a) or’’.

3 (5) Section 473(a)(2)(A)(i) of such Act (42

4 U.S.C. 672(a)(2)(A)(i)) is amended by inserting ‘‘,

5 in the case of a State that has exercised the option

6 provided under section 402(a)(41),’’ after ‘‘406(a)

7 or’’.

8 SEC. 205. 2-PARENT FAMILIES INELIGIBLE FOR AFDC UNTIL

9 30 DAYS AFTER LOSS OF EMPLOYMENT.

10 Section 402(a)(10) of the Social Security Act (42

11 U.S.C. 602(a)(10)) is amended—

12 (1) by striking ‘‘and’’ at the end of subpara13 graph (A);

14 (2) by adding ‘‘and’’ at the end of subpara15 graph (B); and

16 (3) by adding at the end the following:

17 ‘‘(C) notwithstanding subparagraph (B), if the

18 State has a plan approved under part G, at the op19 tion of the State, provide that an application for aid

20 under the plan that is submitted on behalf of a fam21 ily that includes 2 unemployed parents shall not be

22 effective until the end of the 30-day period that be23 gins with the most recent date of employment of ei24 ther such parent;’’.
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1 SEC. 206. INCREASE IN EARNED INCOME DISREGARD AND

2 ELIMINATION OF TIME LIMITATION ON

3 EARNED INCOME DISREGARD.

4 Section 402(a)(8) of the Social Security Act (42

5 U.S.C. 602(a)(8)) is amended—

6 (1) in subparagraph (A)(iv)(II), by inserting ‘‘,

7 or, in the case of a State which has a plan approved

under part G, not less than 1 8 ⁄3 and not more than

1 9 ⁄2 of the remainder thereof’’ before the semicolon;

10 and

11 (2) in subparagraph (B)(ii), by striking

12 ‘‘(ii)(I)’’ and inserting ‘‘(ii) at the option of the

13 State (I)’’.

14 SEC. 207. INCREASE IN ASSET LIMITATIONS.

15 Section 402(a)(7)(B) of the Social Security Act (42

16 U.S.C. 602(a)(7)(B)) is amended—

17 (1) by inserting ‘‘(or, in the case of a State

18 which has a plan approved under part G, $2,000)’’

19 after ‘‘$1,000’’; and

20 (2) in clause (i), by inserting ‘‘(or, in the case

21 of a State which has a plan approved under part G,

22 $8,000)’’ after ‘‘prescribe’’.

23 SEC. 208. AMENDMENTS TO THE FOOD STAMP ACT OF 1977.

24 (a) EXCLUSION FROM INCOME.—Section 5(d) of the

25 Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is

26 amended—
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1 (1) by striking ‘‘and (16)’’ and inserting

2 ‘‘(16)’’, and

3 (2) by inserting before the period at the end the

4 following:

5 ‘‘, and (17) at the option of the State agency, not more

6 than $90 per month during the 1-year period beginning

7 on the date a household member completes participation

8 in the program established by a State under part G of

9 title IV of the Social Security Act’’.

10 (b) DEDUCTION.—Section 5(e) of the Food Stamp

11 Act of 1977 (7 U.S.C. 2014(e)) is amended by adding at

12 the end the following:

13 ‘‘All households that include a member who is a full-time

14 participant in the program established by a State under

15 part G of title IV of the Social Security Act shall be al16 lowed a deduction of $100 in each month of participation

17 in such program.’’.

18 (c) EFFECTIVE DATE AND APPLICATION OF AMEND19 MENTS.—The amendments made by this section shall not

20 apply with respect to certification periods beginning before

21 the effective date of this Act.
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1 TITLE III—RELATED

2 AMENDMENTS

3 SEC. 301. DENIAL OF WELFARE BENEFITS TO ALIENS.

4 (a) WELFARE BENEFITS DENIED TO ILLEGAL

5 ALIENS.—An alien who is unlawfully present in the Unit6 ed States shall not be eligible for benefits or services under

7 any Federal or federally assisted program which provides

8 benefits or services based, in whole or in part, on need.

9 (b) STATE OPTION TO DENY WELFARE BENEFITS

10 TO OTHER ALIENS.—A State that is operating a federally

11 assisted program under which eligibility for benefits or

12 services is based, in whole or in part, on need may deny

13 benefits and services under the program to any alien who

14 is lawfully present in the United States.

15 SEC. 302. INCLUSION IN CONSUMER CREDIT REPORTS OF

16 INFORMATION ON OVERDUE CHILD SUPPORT

17 OBLIGATIONS OF THE CONSUMER.

18 (a) PROVISION TO CONSUMER REPORTING AGENCIES

19 OF INFORMATION ON OVERDUE CHILD SUPPORT OBLIGA20 TIONS OF ABSENT PARENTS.—Section 466(a)(7) of the

21 Social Security Act (42 U.S.C. 666(a)(7)) is amended—

22 (1) by striking ‘‘will’’ and inserting ‘‘shall’’;

23 (2) by striking ‘‘upon the request of such agen24 cy’’;

25 (3) by inserting ‘‘and’’ before ‘‘(B)’’; and
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1 (4) by striking ‘‘, and (C)’’ and all that follows

2 through ‘‘State’’.

3 (b) INCLUSION IN DEFINITION OF OVERDUE SUP4 PORT OF CHILD SUPPORT DELINQUENCIES OWED WITH

5 RESPECT TO ADULTS.—Section 466(e) of such Act (42

6 U.S.C. 666(e)) is amended by inserting ‘‘For purposes of

7 subsection (a)(7), overdue support includes support owed

8 to or on behalf of a child who is not a minor.’’ after the

9 1st sentence.

10 (c) EFFECTIVE DATE.—The amendments made by

11 this section shall take effect on the 1st day of the 1st cal12 endar quarter that begins 6 or more months after the date

13 of the enactment of this Act.

14 SEC. 303. QUARTERLY PAYMENTS OF EARNED INCOME

15 CREDIT.

16 (a) IN GENERAL.—Chapter 77 of the Internal Reve17 nue Code of 1986 (relating to miscellaneous provisions)

18 is amended by adding at the end the following new section:

19 ‘‘SEC. 7524. QUARTERLY PAYMENTS BY DEPARTMENT OF

20 TREASURY OF EARNED INCOME CREDIT.

21 ‘‘(a) IN GENERAL.—The Secretary shall establish a

22 program under which eligible individuals receive, upon re23 quest, advance payments from the Secretary of the credit

24 under section 32 (relating to earned income tax credit).

25 ‘‘(b) PAYMENTS.—
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1 ‘‘(1) FREQUENCY.—The payments under the

2 program established pursuant to subsection (a) shall

3 be made not less frequently than quarterly.

4 ‘‘(2) AMOUNT.—The amount paid to any indi5 vidual for any period during a calendar year shall be

6 such period’s proportionate share of the Secretary’s

7 estimate of the overpayment of tax by such individ8 ual (for the taxable year ending with or within such

9 calendar year) which is attributable to the credit re10 ferred to in subsection (a).

11 ‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this

12 section, the term ‘eligible individual’ means, with respect

13 to a calendar year, any individual if—

14 ‘‘(1) the credit referred to in subsection (a) is

15 allowable to such individual for the taxable year end16 ing with or within such calendar year,

17 ‘‘(2) the liability for tax imposed by subtitle A

18 is reasonably expected to be less than the amount of

19 the credit which is reasonably expected to be allowed

20 for such taxable year, and

21 ‘‘(3) such individual provides the Secretary with

22 such information as the Secretary requires in order

23 to determine the amounts payable under this sec24 tion.’’.
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1 (b) COORDINATION WITH CREDIT ON RETURN.—

2 Paragraph (1) of section 32(g) of such Code is amended

3 by inserting ‘‘or by the Secretary under section 7524’’

4 after ‘‘section 3507’’.

5 (c) CLERICAL AMENDMENT.—The table of sections

6 for such chapter 77 is amended by adding at the end the

7 following new item:

‘‘Sec. 7524. Quarterly payments of earned income credit.’’

8 (d) APPROPRIATION.—There are hereby appropriated

9 such sums as are necessary to make the payments under

10 section 7524 of the Internal Revenue Code of 1986, as

11 added by this section.

12 TITLE IV—EFFECTIVE DATE

13 SEC. 401. EFFECTIVE DATE.

14 Except as otherwise provided in this Act, this Act and

15 the amendments made by this Act shall take effect 6

16 months after the date of the enactment of this Act.

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