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TITLE VI—CAPPING THE AGGRE-
GATE GROWTH OF WELFARE
SPENDING
SEC. 601. CAP ON GROWTH OF FEDERAL SPENDING ON
CERTAIN WELFARE PROGRAMS.
(a) RESTRICTIONS ON SPENDING.—The total amount
of Federal spending for a fiscal year for the programs list-
ed in subsection (b) shall not exceed—
(1) in fiscal year 1995, an amount equal to the
sum of—
(A) the total Federal spending for fiscal
year 1994 on the programs listed in section
603;
(B) the total Federal spending for fiscal
year 1994 on the refundable portion of the
earned income credit under section 32 of the
Internal Revenue Code of 1986;
(C) the total Federal spending for fiscal
year 1994 on the head start programs carried
out under the Head Start Act;
(D) the total Federal spending for fiscal
year 1994 on cash, medical, and social services
assistance furnished to refugees and entrants
under title IV of the Immigration and National-
117
ity Act and section 501 of the Refugee Edu-
cation Assistance Act of 1980; and
(E) the total Federal spending for fiscal
year 1994 on the special supplemental food pro-
gram for women, infants, and children carried
out under section 17 of the Child Nutrition Act
of 1966; and
(2) in fiscal year 1996 and succeeding fiscal
years, an amount equal to the sum of—
(A) the total Federal spending permitted
under this subsection for the preceding fiscal
year; and
(B) 3.5 percent of such spending.
(b) PROGRAMS SUBJECT TO SPENDING LIMIT.—The
programs listed in this subsection are the following:
(1) The welfare block grant program estab-
lished under section 602.
(2) The refundable portion of the earned in-
come credit under section 32 of the Internal Reve-
nue Code of 1986.
(3) Grants for assistance to children born out-
of-wedlock under part C of title IV of the Social Se-
curity Act.
(4) The head start programs carried out under
the Head Start Act.
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(5) The cash, medical, and social services as-
sistance programs for refugees and entrants under
title IV of the Immigration and Nationality Act and
section 501 of the Refugee Education Assistance Act
of 1980.
(6) The special supplemental food program for
women, infants, and children carried out under sec-
tion 17 of the Child Nutrition Act of 1966.
(c) RECONCILIATION OF GROWTH LIMITS.—
(1) 
ALLOCATIONS.—The 
joint 
explanatory
statement accompanying a conference report on a
concurrent resolution on the budget described in sec-
tion 301 of the Congressional Budget Act of 1974
for a fiscal year shall include allocations to each
committee based on the spending cap imposed by
subsection (a) for such fiscal year.
(2) RECONCILIATION
DIRECTIVES.—The rec-
onciliation directives described in section 310 of the
Congressional Budget Act of 1974 shall specify re-
ductions for each committee necessary to comply
with the spending caps imposed by subsection (a) for
such fiscal year.
(3) CONSULTATION
WITH
COMMITTEES.—In
conducting any activities required under paragraphs
(1) and (2), the Committees on the Budget of the
119
House of Representatives and the Senate shall con-
sult with the following committees of Congress:
(A) The Committee on Ways and Means of
the House of Representatives.
(B) The Committee on Finance of the Sen-
ate.
(C) The Committee on Agriculture of the
House of Representatives.
(D) The Committee on Agriculture, Nutri-
tion, and Forestry of the Senate.
(E) The Committee on Education and
Labor of the House of Representatives.
(F) The Committee on Labor and Human
Resources of the Senate.
(G) The Committee on Banking, Finance
and Urban Affairs of the House of Representa-
tives.
(H) The Committee on Banking, Housing,
and Urban Affairs of the Senate.
(I) The Committee on Energy and Com-
merce of the House of Representatives.
(d) REFUNDABLE PORTION OF EITC.—For purposes
of this title, the refundable portion of the earned income
credit under section 32 of the Internal Revenue Code of
1986 is the amount treated as an overpayment of tax
120
under section 6401(b)(1) of such Code which is allocable
to such credit.
SEC. 602. ESTABLISHMENT OF WELFARE BLOCK GRANT
PROGRAM.
(a) GRANTS AUTHORIZED.—
(1) IN GENERAL.—For fiscal year 1995 and
succeeding fiscal years, the Secretary of Health and
Human Services (hereafter referred to in this section
as the ‘‘Secretary’’) shall make grants to the States
in accordance with this section.
(2) LIMIT ON TOTAL AMOUNT OF GRANTS.—
(A) IN GENERAL.—The aggregate amount
of grants made to States under this section for
a fiscal year shall not exceed the total Federal
spending permitted under section 601(a) for the
fiscal year reduced by the sum of the amount
to be expended by the Federal Government for
the fiscal year, as estimated by the Congres-
sional Budget Office, for—
(i) the refundable portion of the
earned income credit under section 32 of
the Internal Revenue Code of 1986;
(ii) grants for assistance to children
born out-of-wedlock under part C of title
IV of the Social Security Act;