II

103D CONGRESS

2D SESSION S. 2057

To replace the Aid to Families with Dependent Children Program under

title IV of the Social Security Act and a portion of the food stamp

program under the Food Stamp Act of 1977 with a block grant to

give the States the flexibility to create innovative welfare to work programs, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MAY 3 (legislative day, MAY 2), 1994

Mr. KOHL (for himself, Mr. GRASSLEY, and Mr. EXON) introduced the

following bill; which was read twice and referred to the Committee on Finance

A BILL

To replace the Aid to Families with Dependent Children

Program under title IV of the Social Security Act and

a portion of the food stamp program under the Food

Stamp Act of 1977 with a block grant to give the States

the flexibility to create innovative welfare to work programs, 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; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Welfare to Work Act of 1994’’.
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1 (b) TABLE OF CONTENTS.—The table of contents of

2 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Purpose.

Sec. 4. Definition of State.

Sec. 5. Applications by States.

Sec. 6. State welfare to work program described.

Sec. 7. State grants.

Sec. 8. State maintenance of effort.

Sec. 9. Termination of certain Federal welfare programs.

Sec. 10. Eligibility for WIC program.

Sec. 11. Secretarial submission of legislative proposal for amendments to medicaid eligibility provisions and technical and conforming amendments.

3 SEC. 2. FINDINGS.

4 The Congress finds the following:

5 (1) The current welfare system is broken and

6 requires replacement.

7 (2) Work is what works best for American

8 families.

9 (3) Since State and local governments know the

10 best methods of connecting welfare recipients to

11 work and since each community faces different cir12 cumstances, Federal assistance to the States should

13 be flexible.

14 (4) Government has the responsibility to pro15 vide a helping hand to assist individuals but individ16 uals have the responsibility to use the assistance to

17 help themselves.
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1 SEC. 3. PURPOSE.

2 The purpose of this Act is to create a block grant

3 program to replace the aid to families with dependent chil4 dren program under title IV of the Social Security Act

5 and a portion of the food stamp program under the Food

6 Stamp Act of 1977 and give the States the flexibility to

7 create innovative welfare to work programs.

8 SEC. 4. DEFINITION OF STATE.

9 For purposes of this Act, the term ‘‘State’’ means

10 each of the several States of the United States, the Dis11 trict of Columbia, the Commonwealth of Puerto Rico, the

12 Virgin Islands, Guam, and American Samoa.

13 SEC. 5. APPLICATIONS BY STATES.

14 (a) IN GENERAL.—Each State desiring to receive a

15 grant to operate a State welfare to work program de16 scribed in section 6 shall annually submit an application

17 to the Secretary of Health and Human Services (hereafter

18 in this Act referred to as the ‘‘Secretary’’) containing the

19 matter described in subsection (b) in such manner as the

20 Secretary may require.

21 (b) CONTENTS.—

22 (1) FISCAL YEAR 1995.—An application for a

23 grant to operate a State welfare to work program

24 during fiscal year 1995 shall contain a description of

25 the program in accordance with section 6.

26 (2) SUBSEQUENT FISCAL YEARS.—
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1 (A) IN GENERAL.—

2 (i) CONTENTS.—Except as provided

3 in clause (ii), an application for a grant to

4 operate a State welfare to work program

5 during fiscal year 1996 and each subse6 quent fiscal year shall contain—

7 (I) a description of the program

8 in accordance with section 6;

9 (II) the State work percentage

10 (as determined under subparagraph

11 (B)) for each of the 2 preceding fiscal

12 years;

13 (III) a statement of the number

14 of participants who became ineligible

15 for participation in the program due

16 to increased income for each of the 2

17 preceding fiscal years; and

18 (IV) a statement of the amount

19 of non-Federal resources that the

20 State invested in the program in the

21 preceding fiscal year.

22 (ii) SPECIAL RULE FOR APPLICATIONS

23 SUBMITTED FOR FISCAL YEAR 1996.—An

24 application for a grant to operate a State

25 welfare to work program during fiscal year
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1 1996 shall contain the information de2 scribed in subclauses (II) and (III) of

3 clause (i) only for the preceding fiscal year

4 in lieu of such information for each of the

5 2 preceding fiscal years.

6 (B) STATE WORK PERCENTAGE.—For pur7 poses of subparagraph (A)(ii), the State work

8 percentage (prior to any adjustment under sub9 paragraph (C)) for a fiscal year is equal to—

10 (i) the number of participants in the

11 State welfare to work program in the fiscal

12 year who were employed in private sector

13 or public sector jobs for at least 20 hours

14 per week for 26 weeks out of the year, di15 vided by

16 (ii) the total number of participants in

17 the State welfare to work program in the

18 fiscal year.

19 (C) ADJUSTMENT.—

20 (i) IN GENERAL.—The State work

21 percentage determined under subparagraph

22 (B) for a fiscal year shall be adjusted by

23 subtracting 1 percentage point from such

24 State work percentage for each 5 percent25 age points by which the percentage of indi-
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1 viduals described in subparagraph (B)(i)

2 who are also described in clause (ii) par3 ticipating in the program in such fiscal

4 year falls below 75 percent of the number

5 of individuals described in subparagraph

6 (B)(i) in such fiscal year.

7 (ii) INDIVIDUAL DESCRIBED.—An in8 dividual described in this clause is a custo9 dial parent or other individual who is pri10 marily responsible for the care of a child

11 under the age of 18.

12 (D) MONITORING OF DATA.—The Sec13 retary shall ensure the validity of the data pro14 vided by a State under this paragraph.

15 (c) APPROVAL.—

16 (1) FISCAL YEARS 1995 AND 1996.—The Sec17 retary shall approve each application for a grant to

18 operate a State welfare to work program—

19 (A) during fiscal year 1995, if the applica20 tion contains the information described in sub21 section (b)(1); and

22 (B) during fiscal year 1996, if the applica23 tion contains the information described in sub24 section (b)(2).
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1 (2) AUTOMATIC APPROVAL IN SUBSEQUENT FIS2 CAL YEARS.—The Secretary shall approve any appli3 cation for a grant to operate a State welfare to work

4 program during fiscal year 1997 and each succeed5 ing fiscal year if the State’s application reports

6 that—

7 (A) the State work percentage for the pre8 ceding fiscal year is greater than the State

9 work percentage for the second preceding fiscal

10 year; or

11 (B) more participants became ineligible for

12 participation in the State welfare to work pro13 gram during the preceding fiscal year due to in14 creased income than became ineligible for par15 ticipation in the program in the second preced16 ing fiscal year as a result of increased income.

17 (3) SECRETARIAL REVIEW.—

18 (A) IN GENERAL.—If a State application

19 for a grant under this Act is not automatically

20 approved under paragraph (2), the Secretary

21 shall approve the application upon a finding

22 that the application—

23 (i) provides an adequate explanation

24 of why the State work percentage or the

25 number of participants who became ineli-
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1 gible for participation in the State welfare

2 to work program due to increased income

3 during the preceding fiscal year did not ex4 ceed such State work percentage or the

5 number of participants who became ineli6 gible for participation in the program in

7 the second preceding fiscal year; and

8 (ii) provides a plan of remedial action

9 which is satisfactory to the Secretary.

10 (B) ADEQUATE EXPLANATIONS.—An ade11 quate explanation under subparagraph (A) may

12 include an explanation of economic conditions

13 in the State, failed program innovations, or

14 other relevant circumstances.

15 (4) RESUBMISSION.—A State may resubmit an

16 application for a grant under this Act until the Sec17 retary finds that the application meets the require18 ments of paragraph (3)(A).

19 SEC. 6. STATE WELFARE TO WORK PROGRAM DESCRIBED.

20 (a) IN GENERAL.—A State welfare to work program

21 described in this section shall provide that—

22 (1) during fiscal year 1995, the State shall des23 ignate individuals who are eligible for participation

24 in the program and such individuals shall include at

25 least those individuals who received benefits under
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1 the State plan approved under part A of title IV of

2 the Social Security Act during fiscal year 1994;

3 (2) during fiscal year 1996 and each subse4 quent fiscal year, the State shall designate individ5 uals who are eligible for participation in the program

6 (as determined by the State), with priority given to

7 those individuals most in need of such services; and

8 (3) the program shall be designed to move indi9 viduals from welfare to self-sufficiency and may in10 clude—

11 (A) job placement and training;

12 (B) supplementation of earned income;

13 (C) nutrition assistance and education;

14 (D) education;

15 (E) vouchers to be used for rental of pri16 vately owned housing;

17 (F) child care;

18 (G) State tax credits;

19 (H) health care;

20 (I) supportive services;

21 (J) community service employment; or

22 (K) any other assistance designed to move

23 such individuals from welfare to self-sufficiency.

24 (b) NO ENTITLEMENT.—Notwithstanding any cri25 teria a State may establish for participation in a State
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1 welfare to work program, no individual shall be considered

2 to be entitled to participate in the program.

3 SEC. 7. STATE GRANTS.

4 (a) IN GENERAL.—The Secretary shall annually

5 award to each State with an application approved under

6 section 5(c) an amount equal to—

7 (1) in fiscal year 1995, 100 percent of the

8 State’s base amount;

9 (2) in fiscal year 1996, the sum of 80 percent

10 of the State’s base amount, 20 percent of the State’s

11 share of the national grant amount, and any applica12 ble bonus payment;

13 (3) in fiscal year 1997, the sum of 60 percent

14 of the State’s base amount, 40 percent of the State’s

15 share of the national grant amount, and any applica16 ble bonus payment;

17 (4) in fiscal year 1998, the sum of 40 percent

18 of the State’s base amount, 60 percent of the State’s

19 share of the national grant amount, and any applica20 ble bonus payment;

21 (5) in fiscal year 1999, the sum of 20 percent

22 of the State’s base amount, 80 percent of the State’s

23 share of the national grant amount, and any applica24 ble bonus payment; and
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1 (6) in fiscal year 2000 and each subsequent fis2 cal year, the sum of 100 percent of the State’s share

3 of the national grant amount and any applicable

4 bonus payment.

5 (b) STATE BASE AMOUNT.—

6 (1) IN GENERAL.—For purposes of subsection

7 (a), a State’s base amount is equal to—

8 (A) for fiscal year 1995, 100 percent of

9 the amount determined under paragraph (2);

10 and

11 (B) for fiscal year 1996 and succeeding

12 fiscal years, 99.6 percent of the amount deter13 mined under paragraph (2).

14 (2) AMOUNT DETERMINED.—The amount de15 termined under this paragraph for a State is an

16 amount equal to the sum of—

17 (A) the amount of Federal financial par18 ticipation received by the State under section

19 403 of the Social Security Act during fiscal

20 year 1994; and

21 (B) an amount equal to the sum of—

22 (i) the benefits under the food stamp

23 program under the Food Stamp Act of

24 1977 (7 U.S.C. 2011 et seq.), including

25 benefits provided under section 19 of such
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1 Act (7 U.S.C. 2028), during fiscal year

2 1994 other than benefits provided to elder3 ly or disabled individuals in the State (as

4 determined under section 3(r)) of such Act

5 (7 U.S.C. 2012); and

6 (ii) the amount paid to the State

7 under section 16 of the Food Stamp Act of

8 1977 (7 U.S.C. 2011 et seq.) during fiscal

9 year 1994 for administrative expenses for

10 providing benefits to non elderly and non

11 disabled individuals.

12 (c) STATE SHARE OF THE NATIONAL GRANT

13 AMOUNT.—

14 (1) IN GENERAL.—For purposes of subsection

15 (a), the State’s share of the national grant amount

16 for a fiscal year is equal to the sum of the amounts

17 determined under paragraph (2) (relating to eco18 nomic need) and paragraph (3) (relating to State ef19 fort) for the State.

20 (2) ECONOMIC NEED.—The amount determined

21 under this paragraph is equal to the sum of the

22 amounts determined under subparagraphs (A) and

23 (B) for the State.

24 (A) STATE PER CAPITA INCOME MEAS25 URE.—The amount determined under this sub-
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1 paragraph is an amount which bears the same

2 ratio to one-quarter of the national grant

3 amount as the product of—

4 (i) the population of the State; and

5 (ii) the allotment percentage of the

6 State (as determined under paragraph

7 (4)),

8 bears to the sum of the corresponding products

9 for all States.

10 (B) STATE UNEMPLOYMENT MEASURE.—

11 The amount determined under this subpara12 graph is an amount which bears the same ratio

13 to one-quarter of the national grant amount as

14 the number of individuals in the State who are

15 estimated as being unemployed according to the

16 Department of Labor’s annual estimates bears

17 to the number of individuals who are estimated

18 as being unemployed according to the Depart19 ment of Labor’s annual estimates in all States.

20 (3) STATE EFFORT.—The amount determined

21 under this paragraph is the amount which bears the

22 same ratio to one-half of the national grant amount

23 as the product of—

24 (A) the dollar amount the State invested in

25 the State welfare to work program in the pre-
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1 vious fiscal year, as reported in section

2 5(b)(2)(A)(iv); and

3 (B) the allotment percentage of the State

4 (as determined under paragraph (4)),

5 bears to the sum of the corresponding products for

6 all States.

7 (4) ALLOTMENT PERCENTAGE.—

8 (A) IN GENERAL.—Except as provided in

9 subparagraph (C), the allotment percentage for

10 any State shall be 100 percent, less the State

11 percentage.

12 (B) STATE PERCENTAGE.—The State per13 centage shall be the percentage which bears the

14 same ratio to 50 percent as the per capita in15 come of such State bears to the per capita in16 come of all States.

17 (C) EXCEPTION.—The allotment percent18 age shall be 70 percent in the case of Puerto

19 Rico, the Virgin Islands, Guam, and American

20 Samoa.

21 (5) DETERMINATION OF GRANT AMOUNTS.—

22 Each State’s share of the national grant amount

23 shall be determined under this subsection on the

24 basis of the average per capita income of each State

25 and all States for the most recent fiscal year for
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1 which satisfactory data are available from the De2 partment of Commerce and the Department of

3 Labor.

4 (6) NATIONAL GRANT AMOUNT.—The term

5 ‘‘national grant amount’’ means an amount equal to

6 99.6 percent of sum of the amounts determined

7 under subsection (b)(2) for all States.

8 (d) BONUS PAYMENT.—Beginning with fiscal year

9 1996, the Secretary may use 0.4 percent of the sum of

10 the amounts determined under subsection (b)(2) for all

11 States to award additional bonus payments under this sec12 tion to those States which have the highest or most im13 proved State work percentage as determined under section

14 5(b)(2)(B). The Secretary shall designate one State as the

15 leading job placement State and such State shall receive

16 the highest bonus payment under the preceding sentence

17 and the President is authorized and requested to acknowl18 edge such State with a special Presidential award.

19 (e) USE OF FUNDS FOR ADMINISTRATIVE PUR20 POSES.—A State shall not use more than 10 percent of

21 the amount it receives under this section for the adminis22 tration of the State welfare to work program.

23 (f) CAPPED ENTITLEMENT.—This section constitutes

24 budget authority in advance of appropriations Acts, and

25 represents the obligation of the Federal Government to
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1 provide the payments described in subsection (a) (in an

2 amount not to exceed the sum of the amounts determined

3 under subsection (b)(2) for all States).

4 SEC. 8. STATE MAINTENANCE OF EFFORT.

5 Any funds available for the activities covered by a

6 State welfare to work program conducted under this Act

7 shall supplement, and shall not supplant, funds that are

8 expended for similar purposes under any State, regional,

9 or local program.

10 SEC. 9. TERMINATION OF CERTAIN FEDERAL WELFARE

11 PROGRAMS.

12 (a) TERMINATION OF AFDC AND JOBS PRO13 GRAMS.—

14 (1) AFDC.—Part A of title IV of the Social Se15 curity Act (42 U.S.C. 601 et seq.) is amended by

16 adding at the end the following new section:

17 ‘‘TERMINATION OF AUTHORITY

18 ‘‘SEC. 418. The authority provided by this part shall

19 terminate on October 1, 1994.’’.

20 (2) JOBS.—Part F of title IV of the Social Se21 curity Act (42 U.S.C. 681 et seq.) is amended by

22 adding at the end the following new section:

23 ‘‘TERMINATION OF AUTHORITY

24 ‘‘SEC. 488. The authority provided by this part shall

25 terminate on October 1, 1994.’’.
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1 (b) FOOD STAMP PROGRAM TO SERVE ONLY ELDER2 LY AND DISABLED INDIVIDUALS.—

3 (1) DEFINITIONS.—Section 3 of the Food

4 Stamp Act of 1977 (7 U.S.C. 2012) is amended—

5 (A) in subsection (g)—

6 (i) in paragraph (4), by striking ‘‘(and

7 their spouses)’’;

8 (ii) in paragraph (5)—

9 (I) by striking ‘‘in the case of’’

10 and inserting ‘‘in the case of elderly

11 or disabled’’; and

12 (II) by inserting ‘‘disabled’’ be13 fore ‘‘children’’; and

14 (iii) in paragraph (8), by inserting

15 ‘‘elderly or disabled’’ before ‘‘women and

16 children temporarily’’;

17 (B) in subsection (i)—

18 (i) in the first sentence—

19 (I) in paragraph (1), by inserting

20 ‘‘elderly or disabled’’ before ‘‘individ21 ual’’; and

22 (II) in paragraph (2), by insert23 ing ‘‘, each of whom is elderly or dis24 abled,’’ after ‘‘individuals’’;
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1 (ii) in the second sentence, by insert2 ing before the period at the end the follow3 ing: ‘‘, if each of the individuals is elderly

4 or disabled’’;

5 (iii) in the third sentence—

6 (I) by striking ‘‘, together’’ and

7 all that follows through ‘‘of such indi8 vidual,’’; and

9 (II) by striking ‘‘, excluding the

10 spouse,’’; and

11 (iv) in the fifth sentence—

12 (I) by striking ‘‘coupons, and’’

13 and inserting ‘‘coupons, and elderly or

14 disabled’’; and

15 (II) by inserting ‘‘disabled’’ after

16 ‘‘together with their’’; and

17 (C) in subsection (r), by striking ‘‘Elderly’’

18 and all that follows through ‘‘who’’ and insert19 ing the following: ‘‘Elderly or disabled’, with re20 spect to a member of a household or other indi21 vidual, means a member or other individual

22 who’’.

23 (2) CONFORMING AMENDMENTS.—

24 (A) ELIGIBILITY.—Section 5 of such Act

25 (7 U.S.C. 2014) is amended—
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1 (i) in the first sentence of subsection

2 (c)—

3 (I) by striking ‘‘program if—’’

4 and all that follows through ‘‘house5 hold’s income’’ and inserting ‘‘pro6 gram if the income of the household’’;

7 (II) by striking ‘‘respectively;

8 and’’ and inserting ‘‘respectively.’’;

9 and

10 (III) by striking paragraph (2);

11 and

12 (ii) in subsection (e)—

13 (I) in the first sentence, by strik14 ing ‘‘containing an elderly or disabled

15 member and determining benefit levels

16 only for all other households’’;

17 (II) in the fifteenth sentence—

18 (aa) by striking ‘‘containing

19 an elderly or disabled member’’;

20 and

21 (bb) in subparagraph (A),

22 by striking ‘‘elderly or disabled

23 members’’ and inserting ‘‘the

24 members’’;
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1 (III) in the seventeenth sentence,

2 by striking ‘‘elderly and disabled’’;

3 and

4 (IV) by striking the fourth

5 through fourteenth sentences.

6 (B) PERIODIC REPORTING.—Section

7 6(c)(1)(A)(iv) of such Act (7 U.S.C.

8 2015(c)(1)(A)(iv)) is amended by striking ‘‘and

9 in which all adult members are elderly or dis10 abled’’.

11 (3) EFFECTIVE DATE.—The amendments made

12 by this subsection shall apply on and after October

13 1, 1994.

14 (c) REFERENCES IN OTHER LAWS.—

15 (1) IN GENERAL.—Any reference in any law,

16 regulation, document, paper, or other record of the

17 United States to any provision that has been termi18 nated by reason of the amendments made in sub19 section (a) shall, unless the context otherwise re20 quires, be considered to be a reference to such provi21 sion, as in effect immediately before the date of the

22 enactment of this Act.

23 (2) STATE PLANS.—Any reference in any law,

24 regulation, document, paper, or other record of the

25 United States to a State plan that has been termi-
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1 nated by reason of the amendments made in sub2 section (a), shall, unless the context otherwise re3 quires, be considered to be a reference to such plan

4 as in effect immediately before the date of the enact5 ment of this Act.

6 SEC. 10. ELIGIBILITY FOR WIC PROGRAM.

7 (a) IN GENERAL.—Section 17(d)(1) of the Child Nu8 trition Act of 1966 (42 U.S.C. 1786(d)(1)) is amended

9 by adding at the end the following new sentence: ‘‘For

10 purposes of participation in the program under this sec11 tion, a child shall be considered to be at nutritional risk

12 if such child is in the care of a custodial parent or other

13 individual primarily responsible for the care of such child

14 who is a participant in a State welfare to work program

15 which receives Federal funds under the Welfare to Work

16 Act of 1994.’’.

17 (b) CONFORMING AMENDMENTS.—Section

18 17(d)(2)(A)(ii) of the Child Nutrition Act of 1966 (42

19 U.S.C. 1786(d)(2)(A)(ii)) is amended—

20 (1) by striking ‘‘(ii)(I)’’ and inserting ‘‘(ii)’’;

21 and

22 (2) by striking subclause (II).

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

24 this section shall apply on and after October 1, 1994.
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1 SEC. 11. SECRETARIAL SUBMISSION OF LEGISLATIVE PRO2 POSAL FOR AMENDMENTS TO MEDICAID ELI3 GIBILITY CRITERIA AND TECHNICAL AND

4 CONFORMING AMENDMENTS.

5 The Secretary shall, within 90 days after the date

6 of enactment of this Act, submit to the appropriate com7 mittees of Congress, a legislative proposal providing eligi8 bility criteria for medical assistance under a State plan

9 under title XIX of the Social Security Act (42 U.S.C.

10 1396 et seq.) in lieu of the eligibility criteria under section

11 1902(a)(10)(A)(i) of such Act (42 U.S.C.

12 1396a(a)(10)(A)(i)) relating to the receipt of aid to fami13 lies with dependent children under a State plan under part

14 A of title IV of the Social Security Act (42 U.S.C. 601

15 et seq.) and such technical and conforming amendments

16 in the law as are required by the provisions of this Act.

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