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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2057 Introduced in Senate (IS)]

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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Welfare to Work 
Act of 1994''.
    (b) Table of Contents.--The table of contents of 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.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) The current welfare system is broken and requires 
        replacement.
            (2) Work is what works best for American families.
            (3) Since State and local governments know the best methods 
        of connecting welfare recipients to work and since each 
        community faces different circumstances, Federal assistance to 
        the States should be flexible.
            (4) Government has the responsibility to provide a helping 
        hand to assist individuals but individuals have the 
        responsibility to use the assistance to help themselves.

SEC. 3. PURPOSE.

    The purpose of this Act is to create a block grant program 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 and give the States the flexibility to 
create innovative welfare to work programs.

SEC. 4. DEFINITION OF STATE.

    For purposes of this Act, the term ``State'' means each of the 
several States of the United States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American 
Samoa.

SEC. 5. APPLICATIONS BY STATES.

    (a) In General.--Each State desiring to receive a grant to operate 
a State welfare to work program described in section 6 shall annually 
submit an application to the Secretary of Health and Human Services 
(hereafter in this Act referred to as the ``Secretary'') containing the 
matter described in subsection (b) in such manner as the Secretary may 
require.
    (b) Contents.--
            (1) Fiscal year 1995.--An application for a grant to 
        operate a State welfare to work program during fiscal year 1995 
        shall contain a description of the program in accordance with 
        section 6.
            (2) Subsequent fiscal years.--
                    (A) In general.--
                            (i) Contents.--Except as provided in clause 
                        (ii), an application for a grant to operate a 
                        State welfare to work program during fiscal 
                        year 1996 and each subsequent fiscal year shall 
                        contain--
                                    (I) a description of the program in 
                                accordance with section 6;
                                    (II) the State work percentage (as 
                                determined under subparagraph (B)) for 
                                each of the 2 preceding fiscal years;
                                    (III) a statement of the number of 
                                participants who became ineligible for 
                                participation in the program due to 
                                increased income for each of the 2 
                                preceding fiscal years; and
                                    (IV) a statement of the amount of 
                                non-Federal resources that the State 
                                invested in the program in the 
                                preceding fiscal year.
                            (ii) Special rule for applications 
                        submitted for fiscal year 1996.--An application 
                        for a grant to operate a State welfare to work 
                        program during fiscal year 1996 shall contain 
                        the information described in subclauses (II) 
                        and (III) of clause (i) only for the preceding 
                        fiscal year in lieu of such information for 
                        each of the 2 preceding fiscal years.
                    (B) State work percentage.--For purposes of 
                subparagraph (A)(ii), the State work percentage (prior 
                to any adjustment under subparagraph (C)) for a fiscal 
                year is equal to--
                            (i) the number of participants in the State 
                        welfare to work program in the fiscal year who 
                        were employed in private sector or public 
                        sector jobs for at least 20 hours per week for 
                        26 weeks out of the year, divided by
                            (ii) the total number of participants in 
                        the State welfare to work program in the fiscal 
                        year.
                    (C) Adjustment.--
                            (i) In general.--The State work percentage 
                        determined under subparagraph (B) for a fiscal 
                        year shall be adjusted by subtracting 1 
                        percentage point from such State work 
                        percentage for each 5 percentage points by 
                        which the percentage of individuals described 
                        in subparagraph (B)(i) who are also described 
                        in clause (ii) participating in the program in 
                        such fiscal year falls below 75 percent of the 
                        number of individuals described in subparagraph 
                        (B)(i) in such fiscal year.
                            (ii) Individual described.--An individual 
                        described in this clause is a custodial parent 
                        or other individual who is primarily 
                        responsible for the care of a child under the 
                        age of 18.
                    (D) Monitoring of data.--The Secretary shall ensure 
                the validity of the data provided by a State under this 
                paragraph.
    (c) Approval.--
            (1) Fiscal years 1995 and 1996.--The Secretary shall 
        approve each application for a grant to operate a State welfare 
        to work program--
                    (A) during fiscal year 1995, if the application 
                contains the information described in subsection 
                (b)(1); and
                    (B) during fiscal year 1996, if the application 
                contains the information described in subsection 
                (b)(2).
            (2) Automatic approval in subsequent fiscal years.--The 
        Secretary shall approve any application for a grant to operate 
        a State welfare to work program during fiscal year 1997 and 
        each succeeding fiscal year if the State's application reports 
        that--
                    (A) the State work percentage for the preceding 
                fiscal year is greater than the State work percentage 
                for the second preceding fiscal year; or
                    (B) more participants became ineligible for 
                participation in the State welfare to work program 
                during the preceding fiscal year due to increased 
                income than became ineligible for participation in the 
                program in the second preceding fiscal year as a result 
                of increased income.
            (3) Secretarial review.--
                    (A) In general.--If a State application for a grant 
                under this Act is not automatically approved under 
                paragraph (2), the Secretary shall approve the 
                application upon a finding that the application--
                            (i) provides an adequate explanation of why 
                        the State work percentage or the number of 
                        participants who became ineligible for 
                        participation in the State welfare to work 
                        program due to increased income during the 
                        preceding fiscal year did not exceed such State 
                        work percentage or the number of participants 
                        who became ineligible for participation in the 
                        program in the second preceding fiscal year; 
                        and
                            (ii) provides a plan of remedial action 
                        which is satisfactory to the Secretary.
                    (B) Adequate explanations.--An adequate explanation 
                under subparagraph (A) may include an explanation of 
                economic conditions in the State, failed program 
                innovations, or other relevant circumstances.
            (4) Resubmission.--A State may resubmit an application for 
        a grant under this Act until the Secretary finds that the 
        application meets the requirements of paragraph (3)(A).

SEC. 6. STATE WELFARE TO WORK PROGRAM DESCRIBED.

    (a) In General.--A State welfare to work program described in this 
section shall provide that--
            (1) during fiscal year 1995, the State shall designate 
        individuals who are eligible for participation in the program 
        and such individuals shall include at least those individuals 
        who received benefits under the State plan approved under part 
        A of title IV of the Social Security Act during fiscal year 
        1994;
            (2) during fiscal year 1996 and each subsequent fiscal 
        year, the State shall designate individuals who are eligible 
        for participation in the program (as determined by the State), 
        with priority given to those individuals most in need of such 
        services; and
            (3) the program shall be designed to move individuals from 
        welfare to self-sufficiency and may include--
                    (A) job placement and training;
                    (B) supplementation of earned income;
                    (C) nutrition assistance and education;
                    (D) education;
                    (E) vouchers to be used for rental of privately 
                owned housing;
                    (F) child care;
                    (G) State tax credits;
                    (H) health care;
                    (I) supportive services;
                    (J) community service employment; or
                    (K) any other assistance designed to move such 
                individuals from welfare to self-sufficiency.
    (b) No Entitlement.--Notwithstanding any criteria a State may 
establish for participation in a State welfare to work program, no 
individual shall be considered to be entitled to participate in the 
program.

SEC. 7. STATE GRANTS.

    (a) In General.--The Secretary shall annually award to each State 
with an application approved under section 5(c) an amount equal to--
            (1) in fiscal year 1995, 100 percent of the State's base 
        amount;
            (2) in fiscal year 1996, the sum of 80 percent of the 
        State's base amount, 20 percent of the State's share of the 
        national grant amount, and any applicable bonus payment;
            (3) in fiscal year 1997, the sum of 60 percent of the 
        State's base amount, 40 percent of the State's share of the 
        national grant amount, and any applicable bonus payment;
            (4) in fiscal year 1998, the sum of 40 percent of the 
        State's base amount, 60 percent of the State's share of the 
        national grant amount, and any applicable bonus payment;
            (5) in fiscal year 1999, the sum of 20 percent of the 
        State's base amount, 80 percent of the State's share of the 
        national grant amount, and any applicable bonus payment; and
            (6) in fiscal year 2000 and each subsequent fiscal year, 
        the sum of 100 percent of the State's share of the national 
        grant amount and any applicable bonus payment.
    (b) State Base Amount.--
            (1) In general.--For purposes of subsection (a), a State's 
        base amount is equal to--
                    (A) for fiscal year 1995, 100 percent of the amount 
                determined under paragraph (2); and
                    (B) for fiscal year 1996 and succeeding fiscal 
                years, 99.6 percent of the amount determined under 
                paragraph (2).
            (2) Amount determined.--The amount determined under this 
        paragraph for a State is an amount equal to the sum of--
                    (A) the amount of Federal financial participation 
                received by the State under section 403 of the Social 
                Security Act during fiscal year 1994; and
                    (B) an amount equal to the sum of--
                            (i) the benefits under the food stamp 
                        program under the Food Stamp Act of 1977 (7 
                        U.S.C. 2011 et seq.), including benefits 
                        provided under section 19 of such Act (7 U.S.C. 
                        2028), during fiscal year 1994 other than 
                        benefits provided to elderly or disabled 
                        individuals in the State (as determined under 
                        section 3(r)) of such Act (7 U.S.C. 2012); and
                            (ii) the amount paid to the State under 
                        section 16 of the Food Stamp Act of 1977 (7 
                        U.S.C. 2011 et seq.) during fiscal year 1994 
                        for administrative expenses for providing 
                        benefits to non elderly and non disabled 
                        individuals.
    (c) State Share of the National Grant Amount.--
            (1) In general.--For purposes of subsection (a), the 
        State's share of the national grant amount for a fiscal year is 
        equal to the sum of the amounts determined under paragraph (2) 
        (relating to economic need) and paragraph (3) (relating to 
        State effort) for the State.
            (2) Economic need.--The amount determined under this 
        paragraph is equal to the sum of the amounts determined under 
        subparagraphs (A) and (B) for the State.
                    (A) State per capita income measure.--The amount 
                determined under this subparagraph is an amount which 
                bears the same ratio to one-quarter of the national 
                grant amount as the product of--
                            (i) the population of the State; and
                            (ii) the allotment percentage of the State 
                        (as determined under paragraph (4)),
                bears to the sum of the corresponding products for all 
                States.
                    (B) State unemployment measure.--The amount 
                determined under this subparagraph is an amount which 
                bears the same ratio to one-quarter of the national 
                grant amount as the number of individuals in the State 
                who are estimated as being unemployed according to the 
                Department of Labor's annual estimates bears to the 
                number of individuals who are estimated as being 
                unemployed according to the Department of Labor's 
                annual estimates in all States.
            (3) State effort.--The amount determined under this 
        paragraph is the amount which bears the same ratio to one-half 
        of the national grant amount as the product of--
                    (A) the dollar amount the State invested in the 
                State welfare to work program in the previous fiscal 
                year, as reported in section 5(b)(2)(A)(iv); and
                    (B) the allotment percentage of the State (as 
                determined under paragraph (4)),
        bears to the sum of the corresponding products for all States.
            (4) Allotment percentage.--
                    (A) In general.--Except as provided in subparagraph 
                (C), the allotment percentage for any State shall be 
                100 percent, less the State percentage.
                    (B) State percentage.--The State percentage shall 
                be the percentage which bears the same ratio to 50 
                percent as the per capita income of such State bears to 
                the per capita income of all States.
                    (C) Exception.--The allotment percentage shall be 
                70 percent in the case of Puerto Rico, the Virgin 
                Islands, Guam, and American Samoa.
            (5) Determination of grant amounts.--Each State's share of 
        the national grant amount shall be determined under this 
        subsection on the basis of the average per capita income of 
        each State and all States for the most recent fiscal year for 
        which satisfactory data are available from the Department of 
        Commerce and the Department of Labor.
            (6) National grant amount.--The term ``national grant 
        amount'' means an amount equal to 99.6 percent of sum of the 
        amounts determined under subsection (b)(2) for all States.
    (d) Bonus Payment.--Beginning with fiscal year 1996, the Secretary 
may use 0.4 percent of the sum of the amounts determined under 
subsection (b)(2) for all States to award additional bonus payments 
under this section to those States which have the highest or most 
improved State work percentage as determined under section 5(b)(2)(B). 
The Secretary shall designate one State as the leading job placement 
State and such State shall receive the highest bonus payment under the 
preceding sentence and the President is authorized and requested to 
acknowledge such State with a special Presidential award.
    (e) Use of Funds for Administrative Purposes.--A State shall not 
use more than 10 percent of the amount it receives under this section 
for the administration of the State welfare to work program.
    (f) Capped Entitlement.--This section constitutes budget authority 
in advance of appropriations Acts, and represents the obligation of the 
Federal Government to provide the payments described in subsection (a) 
(in an amount not to exceed the sum of the amounts determined under 
subsection (b)(2) for all States).

SEC. 8. STATE MAINTENANCE OF EFFORT.

    Any funds available for the activities covered by a State welfare 
to work program conducted under this Act shall supplement, and shall 
not supplant, funds that are expended for similar purposes under any 
State, regional, or local program.

SEC. 9. TERMINATION OF CERTAIN FEDERAL WELFARE PROGRAMS.

    (a) Termination of AFDC and JOBS Programs.--
            (1) AFDC.--Part A of title IV of the Social Security Act 
        (42 U.S.C. 601 et seq.) is amended by adding at the end the 
        following new section:

                       ``termination of authority

    ``Sec. 418. The authority provided by this part shall terminate on 
October 1, 1994.''.
            (2) JOBS.--Part F of title IV of the Social Security Act 
        (42 U.S.C. 681 et seq.) is amended by adding at the end the 
        following new section:

                       ``termination of authority

    ``Sec. 488. The authority provided by this part shall terminate on 
October 1, 1994.''.
    (b) Food Stamp Program To Serve Only Elderly and Disabled 
Individuals.--
            (1) Definitions.--Section 3 of the Food Stamp Act of 1977 
        (7 U.S.C. 2012) is amended--
                    (A) in subsection (g)--
                            (i) in paragraph (4), by striking ``(and 
                        their spouses)'';
                            (ii) in paragraph (5)--
                                    (I) by striking ``in the case of'' 
                                and inserting ``in the case of elderly 
                                or disabled''; and
                                    (II) by inserting ``disabled'' 
                                before ``children''; and
                            (iii) in paragraph (8), by inserting 
                        ``elderly or disabled'' before ``women and 
                        children temporarily'';
                    (B) in subsection (i)--
                            (i) in the first sentence--
                                    (I) in paragraph (1), by inserting 
                                ``elderly or disabled'' before 
                                ``individual''; and
                                    (II) in paragraph (2), by inserting 
                                ``, each of whom is elderly or 
                                disabled,'' after ``individuals'';
                            (ii) in the second sentence, by inserting 
                        before the period at the end the following: ``, 
                        if each of the individuals is elderly or 
                        disabled'';
                            (iii) in the third sentence--
                                    (I) by striking ``, together'' and 
                                all that follows through ``of such 
                                individual,''; and
                                    (II) by striking ``, excluding the 
                                spouse,''; and
                            (iv) in the fifth sentence--
                                    (I) by striking ``coupons, and'' 
                                and inserting ``coupons, and elderly or 
                                disabled''; and
                                    (II) by inserting ``disabled'' 
                                after ``together with their''; and
                    (C) in subsection (r), by striking ``Elderly'' and 
                all that follows through ``who'' and inserting the 
                following: ``Elderly or disabled', with respect to a 
                member of a household or other individual, means a 
                member or other individual who''.
            (2) Conforming amendments.--
                    (A) Eligibility.--Section 5 of such Act (7 U.S.C. 
                2014) is amended--
                            (i) in the first sentence of subsection 
                        (c)--
                                    (I) by striking ``program if--'' 
                                and all that follows through 
                                ``household's income'' and inserting 
                                ``program if the income of the 
                                household'';
                                    (II) by striking ``respectively; 
                                and'' and inserting ``respectively.''; 
                                and
                                    (III) by striking paragraph (2); 
                                and
                            (ii) in subsection (e)--
                                    (I) in the first sentence, by 
                                striking ``containing an elderly or 
                                disabled member and determining benefit 
                                levels only for all other households'';
                                    (II) in the fifteenth sentence--
                                            (aa) by striking 
                                        ``containing an elderly or 
                                        disabled member''; and
                                            (bb) in subparagraph (A), 
                                        by striking ``elderly or 
                                        disabled members'' and 
                                        inserting ``the members'';
                                    (III) in the seventeenth sentence, 
                                by striking ``elderly and disabled''; 
                                and
                                    (IV) by striking the fourth through 
                                fourteenth sentences.
                    (B) Periodic reporting.--Section 6(c)(1)(A)(iv) of 
                such Act (7 U.S.C. 2015(c)(1)(A)(iv)) is amended by 
                striking ``and in which all adult members are elderly 
                or disabled''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply on and after October 1, 1994.
    (c) References in Other Laws.--
            (1) In general.--Any reference in any law, regulation, 
        document, paper, or other record of the United States to any 
        provision that has been terminated by reason of the amendments 
        made in subsection (a) shall, unless the context otherwise 
        requires, be considered to be a reference to such provision, as 
        in effect immediately before the date of the enactment of this 
        Act.
            (2) State plans.--Any reference in any law, regulation, 
        document, paper, or other record of the United States to a 
        State plan that has been terminated by reason of the amendments 
        made in subsection (a), shall, unless the context otherwise 
        requires, be considered to be a reference to such plan as in 
        effect immediately before the date of the enactment of this 
        Act.

SEC. 10. ELIGIBILITY FOR WIC PROGRAM.

    (a) In General.--Section 17(d)(1) of the Child Nutrition Act of 
1966 (42 U.S.C. 1786(d)(1)) is amended by adding at the end the 
following new sentence: ``For purposes of participation in the program 
under this section, a child shall be considered to be at nutritional 
risk if such child is in the care of a custodial parent or other 
individual primarily responsible for the care of such child who is a 
participant in a State welfare to work program which receives Federal 
funds under the Welfare to Work Act of 1994.''.
    (b) Conforming Amendments.--Section 17(d)(2)(A)(ii) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(d)(2)(A)(ii)) is amended--
            (1) by striking ``(ii)(I)'' and inserting ``(ii)''; and
            (2) by striking subclause (II).
    (c) Effective Date.--The amendments made by this section shall 
apply on and after October 1, 1994.

SEC. 11. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR AMENDMENTS 
              TO MEDICAID ELIGIBILITY CRITERIA AND TECHNICAL AND 
              CONFORMING AMENDMENTS.

    The Secretary shall, within 90 days after the date of enactment of 
this Act, submit to the appropriate committees of Congress, a 
legislative proposal providing eligibility criteria for medical 
assistance under a State plan under title XIX of the Social Security 
Act (42 U.S.C. 1396 et seq.) in lieu of the eligibility criteria under 
section 1902(a)(10)(A)(i) of such Act (42 U.S.C. 1396a(a)(10)(A)(i)) 
relating to the receipt of aid to families with dependent children 
under a State plan under part A of title IV of the Social Security Act 
(42 U.S.C. 601 et seq.) and such technical and conforming amendments in 
the law as are required by the provisions of this Act.

                                 <all>

S 2057 IS----2
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