(P) The program of loans for rental and
cooperative housing under section 515 of the
Housing Act of 1949 (42 U.S.C. 1485).
(Q) The loan and assistance programs
under sections 514 and 516 of the Housing Act
of 1949 (42 U.S.C. 1484, 1486) for housing for
farm labor.
(R) The program of rental assistance pay-
ments pursuant to contracts entered into under
section 521(a)(2)(A) of the Housing Act of
1949 (42 U.S.C. 1490a(a)(2)(A)).
(S) The program of grants and loans for
mutual and self-help housing and technical as-
sistance under section 523 of the Housing Act
of 1949 (42 U.S.C. 1490c).
(T) The program of site loans under sec-
tion 524 of the Housing Act of 1949 (42
U.S.C. 1490d).
(U) The program of grants for preserva-
tion and rehabilitation of housing under section
533 of the Housing Act of 1949 (42 U.S.C.
1490m).
(V) The program for rural housing voucher
assistance under section 542 of the Housing
Act of 1949 (42 U.S.C. 1490r).
(W) The program under the Low-Income
Energy Assistance Act of 1981 (42 U.S.C.
8621 et seq.).
(X) The program of block grants to State
for social services under title XX of the Social
Security Act.
(5) STATE.—
(A) IN
GENERAL.—The term ‘‘State’’
means the 50 States, the District of Columbia,
Puerto Rico, American Samoa, Guam, and the
Virgin Islands.
(B) INDIAN TRIBES.—In the case of an eli-
gible Federal program under which assistance
is provided with respect to an Indian tribe, the
Indian tribal organization is deemed to be a
State.
SEC. 107. REPORTS.
(a) IN GENERAL.—The Comptroller General of the
United States shall submit to the Congress 2 reports
that—
(1) describe the extent to which plans for dem-
onstration projects have been implemented in ac-
cordance with this title;
(2) evaluate the effectiveness of covered Federal
assistance programs included in such plans; and
(3) include recommendations with respect to
whether to continue activities under this title.
(b) TIMING.—The Comptroller General shall submit
a report under subsection (a) not later than 3 years after
the date of the enactment of this Act, and another such
report not later than 7 years after such date of enactment.
SEC. 108. PAYMENTS TO STATES FOR MOVING AFDC AND
SSI RECIPIENTS TO UNSUBSIDIZED PRIVATE
EMPLOYMENT.
(a) IN GENERAL.—Subject to section 109, the Sec-
retary of Health and Human Services shall make pay-
ments in accordance with subsection (b) of this section
to each State with respect to each State resident who, as
a result of participation in a demonstration project or
projects conducted by the State under this title, ends the
receipt of aid to families with dependent children under
the State plan approved under part A of title IV of the
Social Security Act, or supplemental security income bene-
fits under title XVI of such Act, and becomes employed
in an unsubsidized position in the private sector.
(b) AMOUNTS AND TIMING OF PAYMENTS.—
(1) 6-MONTH PAYMENT.—The Secretary shall
pay the State $500 with respect to a State resident
described in subsection (a), on the first day after the
resident has been employed for 6 months as de-
scribed in subsection (a).
(2) 1-YEAR PAYMENT.—The Secretary shall pay
the State $500 with respect to a State resident de-
scribed in subsection (a), on the first day after the
resident has been employed for 1 year as described
in subsection (a).
(3) SUBSEQUENT
PAYMENTS.—The Secretary
shall pay the State $1,000 with respect to a State
resident described in subsection (a), on the first day
after each of the 2nd, 3rd, 4th, and 5th years that
the resident has been employed as described in sub-
section (a).
SEC. 109. SUNSET.
Any authority provided under this title shall expire
7 years after the date of the enactment of this Act.
TITLE II—EXPANSION OF STATE
AUTHORITY
SEC. 201. AUTHORITY TO CONTRACT WITH PRIVATE ENTI-
TIES FOR CASE MANAGEMENT.
Section 402(a) of the Social Security Act (42 U.S.C.
602(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(44);
(2) by striking the period at the end of para-
graph (45) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (45) the fol-
lowing:
‘‘(46) at the option of the State, provide that
the State agency may enter into contracts with pri-
vate parties approved by the State under which such
parties will provide case management services for
the State program operated under this part.’’.
SEC. 202. AUTHORITY TO DETERMINE BENEFITS PAYABLE
WITH RESPECT TO CHILDREN CONCEIVED BY
AFDC RECIPIENT.
Section 402(a) of the Social Security Act (42 U.S.C.
602(a)), as amended by section 201 of this Act, is amend-
ed—
(1) by striking ‘‘and’’ at the end of paragraph
(45);
(2) by striking the period at the end of para-
graph (46) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (46) the fol-
lowing:
‘‘(47) at the option of the State, provide that
the State may establish the amount (if any) of aid
payable under the State plan with respect to a child
conceived by a recipient of such aid, in accordance
with such rules (and exceptions to such rules) as the
State considers appropriate.’’.
SEC. 203. AUTHORITY TO NOT TREAT FAMILIES DIF-
FERENTLY BASED ON THE NUMBER OF PAR-
ENTS IN THE HOME.
(a) IN GENERAL.—
(1) Section 402(a)(41) of the Social Security
Act (42 U.S.C. 602(a)(41)) is amended by inserting
‘‘at the option of the State,’’ after ‘‘(41)’’.
(2) Section 407(a) of such Act (42 U.S.C.
607(a)) is amended by inserting ‘‘at the option of
the State,’’ after ‘‘shall,’’.
(b) CONFORMING AMDENDMENTS.—
(1) Section 402(a)(38)(B) of such Act (42
U.S.C. 602(a)(38)(B)) is amended by inserting ‘‘, if
the State exerceises the option provided under para-
graph (41),’’ after ‘‘406(a) or’’.
(2) Section 406(a)(1) of such Act (42 U.S.C.
606(a)(1)) is amended by inserting ‘‘, if a resident
of a State that has exercised the option provided
under section 402(a)(41),’’ after ‘‘(1) who’’.
(3) Section 406(b)(1) of such Act (42 U.S.C.
606(b)(1)) is amended by inserting ‘‘, in the case of
a State that has exercised the option provided under
section 402(a)(41), after ‘‘mental incapacity of a
parent or’’.
(4) Section 472(a) of such Act (42 U.S.C.
672(a)) is amended by inserting ‘‘, in the case of a
State that has exercised the option provided under
section 402(a)(41), after ‘‘406(a) or’’.
(5) Section 473(a)(2)(A)(i) of such Act (42
U.S.C. 672(a)(2)(A)(i)) is amended by inserting ‘‘,
in the case of a State that has exercised the option
provided under section 402(a)(41), after ‘‘406(a)
or’’.
SEC. 204. AUTHORITY TO CONTRACT WITH PRIVATE ENTI-
TIES FOR JOB TRAINING.
Section 402(a) of the Social Security Act (42 U.S.C.
602(a)), as amended by sections 201 and 202 of this Act,
is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(46);
(2) by striking the period at the end of para-
graph (47) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (47) the fol-
lowing:
‘‘(48) at the option of the State, provide that
any entity approved by the State may provide job
training to recipients of aid under the State plan
who are—
‘‘(A) required or allowed to participate in
the program established by the State under
part F; or
‘‘(B) eligible to participate in a program
under the Job Training Partnership Act.’’.
TITLE III—INDIVIDUAL
DEVELOPMENT ACCOUNTS
SEC. 301. INDIVIDUAL DEVELOPMENT ACCOUNTS.
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
items specifically excluded from gross income) is amended
by redesignating section 137 as section 138 and by insert-
ing after section 136 the following new section:
‘‘SEC. 137. INDIVIDUAL DEVELOPMENT ACCOUNTS.
‘‘(a) EARNINGS EXEMPT FROM TAX.—Except as oth-
erwise provided in this section, an individual development
account is exempt from taxation under this subtitle.
‘‘(b) INDIVIDUAL DEVELOPMENT ACCOUNT.—For
purposes of this section, the term ‘individual development
account’ means a trust created or organized in the United
States exclusively for the purpose of paying the qualified
expenses of the individual for whom the trust is main-
tained, but only if the written governing instrument creat-
ing the trust meets the following requirements:
‘‘(1) No contribution will be accepted unless—
‘‘(A) the contribution is made by—
‘‘(i) the individual for whom the trust
is maintained, or
‘‘(ii) any entity approved by the State
for purposes of making matching contribu-
tions to such account on behalf of such in-
dividual,
‘‘(B) such individual, for the taxable year
for which such contribution is made, is an eligi-
ble individual,
‘‘(C) the contributions for such taxable
year do not exceed the contribution limitations
of subsection (d),
‘‘(D) the contribution is in cash, and
‘‘(E) the contribution is made before Janu-
ary 1, 2001.
‘‘(2) The trustee is a bank (as defined in sec-
tion 408(n)) or another person who demonstrates to
the satisfaction of the Secretary that the manner in
which such person will administer the trust will be
consistent with the requirements of this section.
‘‘(3) No part of the trust assets will be invested
in life insurance contracts.
‘‘(4) The assets of the trust will not be commin-
gled with other property except in a common trust
fund or common investment fund.
‘‘(5) Any balance in the account on the day
after the date on which the individual for whose ben-
efit the trust is established dies will be distributed
within 30 days of such date as directed by such indi-
vidual to another individual development account es-
tablished for the benefit of an eligible individual.
‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this
section—
‘‘(1) IN GENERAL.—The term ‘eligible individ-
ual’ means any individual if the individual is a mem-
ber of a household that meets the following require-
ments:
‘‘(A) INCOME TEST.—The income of the
household (for the calendar year preceding the
calendar year in which the taxable year begins)
is not more than 150 percent of the poverty
threshold for such period.
‘‘(B) NET WORTH TEST.—The net worth
of the household, as of the close of such preced-
ing calendar year, is not more than $10,000.
‘‘(2) 
HOUSEHOLD.—The 
term 
‘household’
means all individuals who share use of a dwelling
unit as primary quarters for living and eating sepa-
rate from other individuals.
‘‘(3) HOUSEHOLD NET WORTH.—
‘‘(A) IN GENERAL.—The term ‘net worth’
means, with respect to a household, the aggre-
gate market value of all assets not excluded
under subparagraph (B) that are owned in
whole or in part by any member of the house-
hold, minus the obligations or debts of any
member of the household.
‘‘(B) ASSETS
EXCLUDED.—The following
assets (and obligations or debts with respect
thereto) shall be excluded in determining the
net worth of any household:
‘‘(i) $20,000 OF HOME EQUITY.—The
lesser of—
‘‘(I) the equity of the members of
the household in the dwelling unit in
which the members reside; or
‘‘(II) $20,000.
‘‘(ii) MOTOR
VEHICLE.—The most
valuable motor vehicle owned by any mem-
ber of the household.
‘‘(iii) 
FURNITURE; 
APPLIANCES;
CLOTHING.—All furniture, appliances, and
clothing used by any member of the house-
hold in the course of daily living.
‘‘(iv) ART OBJECTS.—All art objects
displayed in the dwelling unit in which the
members of the household reside.
‘‘(v) JEWELRY.—All jewelry owned by
any member of the household.
‘‘(vi) INDIVIDUAL DEVELOPMENT AC-
COUNTS.—All individual development ac-
counts of members of the household.
‘‘(4) POVERTY
THRESHOLD.—The term ‘pov-
erty threshold’ means, with respect to a calendar
year, the Federal poverty line for the calendar year
for the relevant family size, as defined annually by
the Bureau of the Census.
‘‘(d) CONTRIBUTION LIMITATIONS.—
‘‘(1) IN GENERAL.—The contributions to an in-
dividual development account do not exceed the limi-
tations of this subsection for any taxable year if the
contributions for such year do not exceed the lesser
of—
‘‘(A) $2,000, or
‘‘(B) the excess (if any) of $10,000 over
the account balance as of the close of the pre-
ceding taxable year.
‘‘(2) WAIVER
OF
$2,000
LIMIT
IN
CERTAIN
CASES.—Paragraph (1)(A) shall not apply to con-
tributions of lump-sum gains such as inheritances,
proceeds from lotteries, insurance payments, or pay-
ments resulting from court proceedings.
‘‘(e) TAX TREATMENT OF DISTRIBUTIONS.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, any amount paid or distrib-
uted out of an individual development account shall
be included in the gross income of the payee or dis-
tributee for the taxable year in which the payment
or distribution is received.
‘‘(2) DISTRIBUTION USED TO PAY QUALIFIED
EXPENSES.—Paragraph (1) shall not apply to any
payment or distribution out of an individual develop-
ment account to the extent such payment or dis-
tribution is used exclusively to pay the qualified ex-
penses incurred by the eligible individual for whose
benefit the account is established.
‘‘(3) QUALIFIED EXPENSES.—For purposes of
this section, the term ‘qualified expenses’ means 1 or
more of the following:
‘‘(A) POST-SECONDARY
EDUCATION
EX-
PENSES.—Post-secondary educational expenses
paid from an individual development account di-
rectly to an eligible educational institution. For
purposes of this subparagraph—
‘‘(i) IN
GENERAL.—The term ‘post-
secondary educational expenses’ means—
‘‘(I) tuition and fees required for
the enrollment or attendance of a stu-
dent at an eligible educational institu-
tion,
‘‘(II) fees, books, supplies, and
equipment required for courses of in-
struction at an eligible educational in-
stitution, and
‘‘(III) a reasonable allowance for
meals, lodging, transportation, and
child care, while attending an eligible
educational institution.
‘‘(ii) ELIGIBLE EDUCATIONAL INSTI-
TUTION.—The term ‘eligible educational
institution’ means the following:
‘‘(I) INSTITUTION
OF
HIGHER
EDUCATION.—An institution described
in section 481(a)(1) or 1201(a) of the
Higher Education Act of 1965 (20
U.S.C. 1088(a)(1) or 1141(a)), as
such sections are in effect on the date
of the enactment of this section.
‘‘(II) 
POSTSECONDARY
VOCA-
TIONAL
EDUCATION
SCHOOL.—An
area vocational education school (as
defined in subparagraph (C) or (D) of
section 521(4) of the Carl D. Perkins
Vocational and Applied Technology
Education Act (20 U.S.C. 2471(4)))
which is in any State (as defined in
section 521(33) of such Act), as such
sections are in effect on the date of
the enactment of this section.
‘‘(B) FIRST-HOME
PURCHASE.—Qualified
acquisition costs with respect to a qualified
principal residence for a qualified first-time
homebuyer, if paid from an individual develop-
ment account directly to the persons to whom
the amounts are due. For purposes of this sub-
paragraph—
‘‘(i) 
QUALIFIED
ACQUISITION
COSTS.—The term ‘qualified acquisition
costs’ means the costs of acquiring, con-
structing, or reconstructing a residence.
The term includes any usual or reasonable
settlement, financing, or other closing
costs.
‘‘(ii) QUALIFIED
PRINCIPAL
RESI-
DENCE.—The term ‘qualified principal res-
idence’ means a principal residence (within
the meaning of section 1034), the qualified
acquisition costs of which do not exceed
110 percent of the average area purchase
price applicable to such residence (deter-
mined in accordance with paragraphs (2)
and (3) of section 143(e)).
‘‘(iii) QUALIFIED FIRST-TIME HOME-
BUYER.—
‘‘(I) IN
GENERAL.—The term
‘qualified first-time homebuyer’ means
a taxpayer (and, if married, the tax-
payer’s spouse) who has no present
ownership interest in a principal resi-
dence during the 3-year period ending
on the date of acquisition of the prin-
cipal residence to which this subpara-
graph applies.
‘‘(II) DATE
OF
ACQUISITION.—
The term ‘date of acquisition’ means
the date on which a binding contract
to acquire, construct, or reconstruct
the principal residence to which this
subparagraph applies is entered into.
‘‘(C) 
BUSINESS
CAPITALIZATION.—
Amounts paid from an individual development
account directly to a business capitalization ac-
count which is established in a federally insured
financial institution and is restricted to use
solely for business capitalization expenses. For
purposes of this subparagraph—
‘‘(i) QUALIFIED
BUSINESS
CAPITAL-
IZATION EXPENSES.—The term ‘qualified
business capitalization expenses’ means
qualified expenses for the capitalization of
a qualified business pursuant to a qualified
plan.
‘‘(ii) 
QUALIFIED
EXPENSES.—The
term ‘qualified expenses’ means expenses
included in a qualified plan, including cap-
ital plant, equipment, working capital, and
inventory expenses.
‘‘(iii) 
QUALIFIED
BUSINESS.—The
term ‘qualified business’ means any busi-
ness that does not contravene any law or
public policy (as determined by the Sec-
retary).
‘‘(iv) QUALIFIED
PLAN.—The term
‘qualified plan’ means a business plan
which—
‘‘(I) is approved by a financial in-
stitution, or by a nonprofit loan fund
having demonstrated fiduciary integ-
rity,
‘‘(II) includes a description of
services or goods to be sold, a market-
ing plan, and projected financial
statements, and
‘‘(III) may require the eligible in-
dividual to obtain the assistance of an
experienced entrepreneurial advisor.
‘‘(D) RETIREMENT EXPENSES.—Expenses
for which amounts may be distributed from an
individual retirement plan, subject to the same
requirements and limitations as apply to such
amounts.
‘‘(E) TRANSFERS
TO
IDA’S
OF
FAMILY
MEMBERS.—Amounts paid from an individual
development account directly into another such
account established for the benefit of an eligible
individual who is—
‘‘(i) the taxpayers spouse, or
‘‘(ii) any dependent of the taxpayer
with respect to whom the taxpayer is al-
lowed a deduction under section 151.
‘‘(F) EMERGENCY NEEDS.—Expenses as-
sociated with—
‘‘(i) job loss due to workforce reduc-
tion,
‘‘(ii) bankruptcy,
‘‘(iii) business closure,
‘‘(iv) death of a spouse or dependent,
and
‘‘(v) medical care for a spouse or de-
pendent who is not eligible to receive as-
sistance under a State plan under title
XIX of the Social Security Act (relating to
Medicaid).
Paragraph (2) shall apply to amounts paid
from an individual development account by rea-
son of expenses described in this subparagraph
only to the extent that the aggregate of such
amounts does not exceed an amount equal to 20
percent of the balance in such account as of the
close of the preceding calendar year.
‘‘(f) SPECIAL RULES.—
‘‘(1) ACCOUNT MAY NOT BE ESTABLISHED FOR
BENEFIT OF MORE THAN 1 INDIVIDUAL.—An indi-
vidual development account may not be established
for the benefit of more than 1 individual.
‘‘(2) ELIGIBLE INDIVIDUAL TREATED AS ELIGI-
BLE
INDIVIDUAL
ONLY
WITH
RESPECT
TO
AC-
COUNT.—If, at any time during a calendar year, 2
or more individual development accounts are main-
tained for the benefit of an eligible individual, such
individual shall be treated as an eligible individual
for the calendar year only with respect to the 1st of
such accounts.
‘‘(3) TIME
WHEN
CONTRIBUTIONS
DEEMED
MADE.—A taxpayer shall be deemed to have made a
contribution on the last day of the preceding taxable
year if the contribution is made on account of such
taxable year and is made not later than the time
prescribed by law for filing the return for such tax-
able year (including extensions thereof).
‘‘(4) LIMITATION ON EXEMPTION FROM TAX.—
Notwithstanding subsection (a), any individual devel-
opment account is subject to the taxes imposed by
section 511 (relating to imposition of tax on unre-
lated business income of charitable, etc. organiza-
tions).
‘‘(5) LOSS OF EXEMPTION OF ACCOUNT WHERE
INDIVIDUAL
ENGAGES
IN
PROHIBITED
TRANS-
ACTION.—
‘‘(A) IN GENERAL.—If the individual for
whose benefit an individual development ac-
count is established engages in any transaction
prohibited by section 4975 with respect to the
account, the account shall cease to be an indi-
vidual development account as of the 1st day of
the taxable year (of the individual so engaging
in such transaction) during which such trans-
action occurs.
‘‘(B) ACCOUNT TREATED AS DISTRIBUTING
ALL ITS ASSETS.—In any case in which any ac-
count ceases to be an individual development
account by reason of subparagraph (A) as of
the 1st day of any taxable year, paragraph (1)
of subsection (e) shall apply as if there were a
distribution on such 1st day in an amount equal
to the fair market value of all assets in the ac-
count on such 1st day.
‘‘(6) EFFECT OF PLEDGING ACCOUNT AS SECU-
RITY.—If, during any taxable year, the individual for
whose benefit an individual development account is
established uses the account or any portion thereof
as security for a loan, the portion so used shall be
treated as distributed to the individual so using such
portion.
‘‘(g) CUSTODIAL ACCOUNTS.—For purposes of this
section, a custodial account shall be treated as a trust if
the assets of such account are held by a bank (as defined
in section 408(n)) or another person who demonstrates,
to the satisfaction of the Secretary, that the manner in
which he will administer the account will be consistent
with the requirements of this section, and if the custodial
account would, except for the fact that it is not a trust,
constitute an individual development account described in
subsection (b). For purposes of this title, in the case of
a custodial account treated as a trust by reason of the
preceding sentence, the custodian of such account shall be
treated as the trustee thereof.
‘‘(h) REPORTS.—The trustee of an individual devel-
opment account shall prepare reports regarding the ac-
count with respect to contributions, distributions, and any
other matter required by the Secretary under regula-
tions.’’
(b) TAX ON PROHIBITED TRANSACTIONS.—Section
4975 of such Code (relating to prohibited transactions)
is amended—
(1) by adding at the end of subsection (c) the
following new paragraph:
‘‘(4) SPECIAL RULE FOR INDIVIDUAL DEVELOP-
MENT ACCOUNTS.—An individual for whose benefit
an individual development account is established and
any contributor to such account shall be exempt
from the tax imposed by this section with respect to
any transaction concerning such account (which
would otherwise be taxable under this section) if,
with respect to such transaction, the account ceases
to be an individual development account by reason
of the application of section 137(f)(5)(A) to such ac-
count.’’, and
(2) by inserting ‘‘, an individual development
account described in section 137(b),’’ in subsection
(e)(1) after ‘‘described in section 408(a)’’.
(c) FAILURE TO PROVIDE REPORTS ON INDIVIDUAL
DEVELOPMENT ACCOUNTS.—Section 6693 of such Code
(relating to failure to provide reports on individual retire-
ment accounts or annuities) is amended—
(1) by inserting ‘‘OR ON INDIVIDUAL DEVEL-
OPMENT ACCOUNTS’’ after ‘‘ANNUITIES’’ in the
heading of such section, and
(2) by adding at the end of subsection (a) the
following new sentence: ‘‘The person required by sec-
tion 137(h) to file a report regarding an individual
development account at the time and in the manner
required by such section shall pay a penalty of $50
for each failure, unless it is shown that such failure
is due to reasonable cause.’’
(d) SPECIAL RULE FOR DETERMINING AMOUNTS OF
SUPPORT FOR DEPENDENT.—Subsection (b) of section
152 of such Code (relating to definition of dependent) is
amended by adding at the end the following new para-
graph:
‘‘(6) A distribution from an individual develop-
ment account described in section 137(b) to the indi-
vidual for whose benefit such account has been es-
tablished shall not be taken into account in deter-
mining support for purposes of this section to the
extent such distribution is excluded from gross in-
come of such individual under section 137(e)(2).’’
(g) CLERICAL AMENDMENTS.—
(1) The table of sections for part III of sub-
chapter B of chapter 1 of such Code is amended by
striking the item relating to section 137 and insert-
ing the following new items:
‘‘Sec. 137. Individual development accounts.
‘‘Sec. 138. Cross references to other Acts.’’
(2) The table of sections for subchapter B of
chapter 68 of such Code is amended by striking the
item relating to section 6693 and inserting the fol-
lowing new item:
‘‘Sec. 6693. Failure to provide reports on individual retirement
accounts or annuities or on individual development
accounts.’’
(h) EFFECTIVE DATE.—The amendments made by
this section shall apply to contributions made after De-
cember 31, 1994.
TITLE IV—OTHER ASSET
REFORMS
SEC. 401. INCREASE IN ASSET LIMIT.
(a) IN GENERAL.—Section 402(a)(7)(B) of the So-
cial Security Act (42 U.S.C. 602(a)(7)(B)) is amended by
striking ‘‘$1,000 or such lower amount as the State may
determine’’ and inserting ‘‘the resource threshold (as de-
fined in subsection (d)) for the calendar year in which the
month occurs’’.
(b) RESOURCE THRESHOLD.—Section 402 of such
Act (42 U.S.C. 602) is amended by inserting after sub-
section (c) the following:
‘‘(d) As used in section 402(a)(7)(B), the term ‘re-
source threshold’ means, with respect to a calendar year,
$1,580, multiplied by the percentage (if any) by which—
‘‘(1) the average of the Consumer Price Index
(as defined in section 1(f)(5) of the Internal Reve-
nue Code of 1986) for the 12-month period ending
on December 31 of the immediately preceding cal-
endar year; exceeds
‘‘(2) the average of the Consumer Price Index
(as so defined) for the 12-month period ending on
December 31, 1994.
SEC. 402. NEW LIMIT ON EQUITY IN AUTOMOBILE.
Section 402(a)(7)(B)(i) of the Social Security Act
(42 U.S.C. 602(a)(7)(B)(i)) is amended by striking ‘‘such
amount as the Secretary may prescribe’’ and inserting
‘‘$5,000’’.
SEC. 403. EARNED INCOME AND INDIVIDUAL DEVELOP-
MENT ACCOUNTS OF DEPENDENT CHILDREN
TO BE DISREGARDED IN DETERMINING ELI-
GIBILITY FOR AID TO FAMILIES WITH DE-
PENDENT CHILDREN.
(a) RESOURCE DISREGARDS.—Section 402(a)(7)(B)
of the Social Security Act (42 U.S.C. 602(a)(7)(B)) is
amended—
(1) by striking ‘‘or’’ at the end of clause (iii);
and
(2) by inserting ‘‘(v) any earned income of such
child, and any amount in an individual development
account established for such child pursuant to sec-
tion 137 of the Internal Revenue Code of 1986’’ be-
fore the semicolon.
(b) INCOME DISREGARDS.—Section 402(a)(8)(A) of
the Social Security Act (42 U.S.C. 602(a)(8)(A)) is
amended—
(1) by striking ‘‘and’’ at the end of clause (vii);
and
(2) by adding at the end the following:
‘‘(viii) shall disregard all of the earned in-
come of each dependent child applying for aid
under the State plan, all interest earned on
amounts deposited in, and all distributions
from, an individual development account estab-
lished for a dependent child pursuant to section
137 of the Internal Revenue Code of 1986;
and’’.
SEC. 404. EXCLUSION OF CERTAIN INCOME FROM CONSID-
ERATION FOR PURPOSES OF PUBLIC HOUS-
ING RENT DETERMINATIONS.
Section 3(b)(5) of the United States Housing Act of
1937 (42 U.S.C. 1437a(b)(5)) is amended—
(1) in subparagraph (F), by striking ‘‘and’’ at
the end;
(2) in subparagraph (G), by striking the period
and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(H) in the case of a family residing in public
housing—
‘‘(i) any earned income of any dependent
who is less than 18 years of age; and
‘‘(ii) any interest earned on amounts de-
posited in an individual development account
established pursuant to section 137 of the In-
ternal Revenue Code of 1986.’’.
SEC. 405. INDIVIDUAL DEVELOPMENT ACCOUNTS TO BE
DISREGARDED IN DETERMINING ELIGIBILITY
FOR AND AMOUNT OF BENEFITS UNDER WEL-
FARE PROGRAMS.
Amounts in individual development accounts estab-
lished pursuant to section 137 of the Internal Revenue
Code of 1986 shall be disregarded in determining eligi-
bility for, and the amount of benefits or kinds of services
to be provided under any Federal or federally assisted pro-
gram eligibility for which is based, in whole or in part,
on need.
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