‘‘(2) NO
FUNDS
USED
FOR
ABORTION.—No
grant funds received by a qualified State under this
part shall be used for making abortion available as
a method of family planning or for any counseling
or advising with respect to abortion.
‘‘(c) PENALTY FOR MISUSE OF FUNDS.—If a quali-
fied State fails to comply with subsection (b) in any fiscal
year, the Secretary shall reduce the amount to be paid
to such State under this part for the succeeding fiscal year
by an amount equal to the amount of funds paid to the
State under this part that are involved in the noncompli-
ance.
‘‘SEC. 442. AMOUNT OF GRANT.
‘‘(a) IN GENERAL.—The Secretary shall make a pay-
ment to each qualified State for each fiscal year in an
amount equal to the Federal savings amount for the State
determined under subsection (b)(1) for the fiscal year.
‘‘(b) DETERMINATION OF GRANT AMOUNT.—
‘‘(1) 
IN
GENERAL.—The 
Federal 
savings
amount for a State for a fiscal year is an amount
that is equal to the product of—
‘‘(A) the State per capita amount for the
fiscal year (as determined under paragraph
(2)); and
‘‘(B) the State’s excluded population for
the fiscal year (as determined under paragraph
(3)).
‘‘(2) PER CAPITA AMOUNT.—The State per cap-
ita amount for a fiscal year is—
‘‘(A) the total amount that the Secretary
estimates will be paid to the State under para-
graph (1) or (2) of section 403(a) during the
fiscal year; divided by
‘‘(B) the total number of individuals who
the Secretary estimates will receive aid under
the State plan approved under section 402 dur-
ing the fiscal year.
‘‘(3) STATE EXCLUDED POPULATION.—
‘‘(A) IN GENERAL.—The Director of the
Office of Management and Budget shall deter-
mine an excluded population for each qualified
State for each fiscal year in accordance with
this paragraph.
‘‘(B) DETERMINATION.—A State’s ex-
cluded population for a fiscal year shall equal
the sum of—
‘‘(i) the number of excluded children
for the State for the fiscal year as deter-
mined under subparagraph (C); and
‘‘(ii) the number of excluded parents
for the State for the fiscal year as deter-
mined under subparagraph (D).
‘‘(C) EXCLUDED CHILDREN.—
‘‘(i) IN GENERAL.—The number of ex-
cluded children for a State for a fiscal year
shall be—
‘‘(I) for fiscal year 1996, zero;
‘‘(II) for fiscal year 1997, 50
percent of the monthly average num-
ber of base year excluded children (as
defined in clause (ii)) who were under
age 1 during the base year (as defined
in clause (iii));
‘‘(III) for fiscal year 1998, the
sum of—
‘‘(aa) the monthly average
number of base year excluded
children who were under age 1
during the base year; and
‘‘(bb) 50 percent of the
monthly average number of base
year excluded children who were
over age 1 and under age 2 dur-
ing the base year;
‘‘(IV) for fiscal year 1999, the
sum of—
‘‘(aa) the monthly average
number of base year excluded
children who were under age 2
during the base year; and
‘‘(bb) 50 percent of the
monthly average number of base
year excluded children who were
over age 2 and under age 3 dur-
ing the base year;
‘‘(V) for fiscal year 2000, the
sum of—
‘‘(aa) the monthly average
number of base year excluded
children who were under age 3
during the base year; and
‘‘(bb) 50 percent of the
monthly average number of base
year excluded children who were
over age 3 and under age 4 dur-
ing the base year; and
‘‘(VI) for fiscal years after fiscal
year 2000, a number determined by
the 
Secretary 
using 
a 
formula
which—
‘‘(aa) takes into account
changes in out-of-wedlock birth
rates in previous years, State in-
centives to continue programs de-
signed 
to 
reduce 
illegitimate
births, and other factors deemed
relevant by the Secretary; and
‘‘(bb) does not result in a
payment to any State under this
section for any fiscal year that
exceeds the payment made to the
State under this section for fiscal
year 2000.
‘‘(ii) BASE
YEAR
EXCLUDED
CHIL-
DREN.—The term ‘base year excluded chil-
dren’ means children who received aid
under the State plan approved under sec-
tion 402 during the base year who would
not have been eligible for such aid if para-
graphs (47) and (49) of section 402(a) (as
in effect during the applicable fiscal year)
had been in effect at the time such chil-
dren were born.
(b) PURPOSE.—The purpose of this section is to de-
crease the length of time that children wait to be adopted
and to prevent discrimination in the placement of children
on the basis of race, color, or national origin.
(c) MULTIETHNIC PLACEMENTS.—
(1) ACTIVITIES.—
(A) PROHIBITION.—An agency or entity
that receives Federal assistance and is involved
in adoption or foster care placements may
not—
(i) deny to any person the opportunity
to become an adoptive or a foster parent,
on the basis of the race, color, or national
origin of the person, or of the child, in-
volved; or
(ii) delay or deny the placement of a
child for adoption or into foster care, or
otherwise discriminate in making a place-
ment decision, on the basis of the race,
color, or national origin of the adoptive or
foster parent, or the child, involved.
(B) DEFINITION.—As used in this para-
graph, the term ‘‘placement decision’’ means
the decision to place, or to delay or deny the
placement of, a child into foster care or in an
adoptive home, and includes the decision of the
agency or entity involved to seek the termi-
nation of birth parent rights or otherwise make
a child legally available for adoptive placement.
(2) LIMITATION.—The Secretary of Health and
Human Services shall not provide placement and ad-
ministrative funds under section 474(a)(3) of the
Social Security Act (42 U.S.C. 674(a)(3)) to an
agency or entity described in paragraph (1)(A) of
this subsection that is not in compliance with para-
graph (1) of this subsection.
(3) PRIVATE CAUSE OF ACTION.—
(A) IN GENERAL.—Any individual who is
aggrieved by a violation of paragraph (1) by an
agency or entity described in paragraph (1)(A)
may bring an action seeking relief in any Unit-
ed States district court.
(B) AUTHORITY TO AWARD A REASONABLE
ATTORNEY’S FEE.—In an action brought under
this paragraph, the court, in its discretion, may
allow a prevailing plaintiff a reasonable attor-
ney’s fee as part of the costs.
(C) STATUTE OF LIMITATIONS.—An action
under this paragraph may not be brought more
than 2 years after the date the alleged violation
occurred.
(D) WAIVER OF STATE IMMUNITY.—This
paragraph is intended, among other things, to
authorize actions against States and State offi-
cials that might otherwise be barred under the
Eleventh Article of Amendment to the Constitu-
tion of the United States, and is enacted pursu-
ant to section 5 of the Fourteenth Article of
Amendment to the Constitution of the United
States.
(4) CONSTRUCTION.—This subsection shall not
be construed to affect the application of the Indian
Child Welfare Act of 1978 (25 U.S.C. 1901 et seq.).
TITLE II—REQUIRING WORK
SEC. 201. FINDINGS; INTENT; STATEMENT OF PURPOSE.
(a) FINDINGS.—The Congress finds that—
(1) the cash value of the typical welfare pack-
age of AFDC, food stamps, and medicaid is approxi-
mately $12,000 per year;
(2) research shows that adults who leave AFDC
for paid employment earn approximately $5.50 per
hour, or well over $10,000 per year, and that, when
combined with the Earned Income Tax Credit and
food stamps, the total income of former AFDC fami-
lies is at least $15,000 per year;
(3) adults who leave AFDC for paid employ-
ment are on the ladder that can lead to greater fu-
ture income, and their children have a role model for
the societal value of self-sufficiency; and
(4) most adult welfare recipients can find paid
employment within 2 years.
(b) INTENT OF THE CONGRESS.—The intent of the
Congress is to—
(1) provide States with the resources and au-
thority necessary to help, cajole, lure, or force adults
off welfare and into paid employment as quickly as
possible, and to require adult welfare recipients,
when necessary, to accept jobs that will help end
welfare dependency;
(2) permit States to provide education and
training to welfare recipients only if, in the judg-
ment of State officials, doing so will enhance the
ability of such recipients to leave welfare for paid
employment;
(3) prohibit the States from providing adult
welfare recipients with more than 2 years of edu-
cation or training; and
(4) give States the flexibility to design their
own welfare-to-work programs and to decide who
must participate in such programs.
(c) STATEMENT OF PURPOSE.—The purpose of this
title is to move adult welfare recipients from welfare de-
pendency to paid employment as quickly as possible.
SEC. 202. WORK PROGRAM.
(a) IN GENERAL.—Section 402(a) of the Social Secu-
rity Act (42 U.S.C. 602(a)) is amended by inserting the
following after paragraph (28):
‘‘(29) provide that—
‘‘(A)(i) the State shall require recipients of
aid under the State plan to participate in a
work program in accordance with this para-
graph; and
‘‘(ii) for purposes of this paragraph, the
term ‘work program’ means—
‘‘(I) a work supplementation program
operated under section 482(e);
‘‘(II) a community work experience
program established under section 482(f),
or any other work experience program ap-
proved by the Secretary; or
‘‘(III) any other work program estab-
lished by the State, which is approved by
the Secretary;
‘‘(B)(i) except as provided in clause (ii),
each individual who is required under this para-
graph to participate in a work program and has
received aid under the State plan for at least 24
months (whether or not consecutive) after the
effective date of this paragraph shall participate
in work activities for an average of not fewer
than 35 hours per week during any month (or
for an average of not fewer than 30 hours per
week during any month if the individual is en-
gaged in job search for an average of not fewer
than 5 hours per week during the month), but
the State may not require any such individual
to participate in work activities for more than
40 hours during any week; and
‘‘(ii) in the case of a family which receives
aid under the State plan by reason of section
407—
‘‘(I) the State must require at least 1
parent in the family to engage in work ac-
tivities for an average of 32 hours per
week during any month and in job search
activities for an average of 8 hours per
week during any month; and
‘‘(II) the State must combine the aid
payable to the family under the plan, and
the cash value of any benefits the State
would have provided under title V of the
Personal Responsibility Act of 1995 Act to
the family, into a single cash payment to
the family;
‘‘(C)(i)(I) the State may impose such sanc-
tions as the State considers appropriate on an
individual who fails to satisfactorily participate
in any activity required under this part during
the first 24 months (after the effective date of
this paragraph) for which the individual is a re-
cipient of aid under the State plan;
‘‘(II) the State shall reduce the amount
otherwise payable under the State plan for the
month with respect to an individual to whom
subparagraph (B)(i) applies, pro rata with re-
spect to any period during the month for which
the individual does not comply with subpara-
graph (B)(i); and
‘‘(III) in the case of a family which re-
ceives aid under the State plan by reason of
section 407, the State shall reduce the cash
payment payable to the family pursuant to sub-
paragraph (B)(ii) pro rata with respect to any
period for which the family does not comply
with subparagraph (B)(ii); and
‘‘(ii) the State may suspend or terminate
eligibility for aid under the State plan of any
individual to whom a sanction has been applied
under clause (i) on 3 or more occasions;
‘‘(D) the State may not provide subsidized
non-work activities to an individual under the
State plan for more than 24 months (whether
or not consecutive) after the effective date of
this paragraph;
‘‘(E) at the option of the State, the State
may terminate eligibility for aid under the State
plan of any family which—
‘‘(i) has received such aid for 24
months (whether or not consecutive) after
the effective date of this paragraph;
‘‘(ii) has been required under this
paragraph for at least 12 months (whether
or not consecutive) after such effective
date to participate in a work program; and
‘‘(iii) was offered a work placement at
the beginning of such 12-month period;
‘‘(F) an adult who has received aid under
the State plan for 60 months (whether or not
consecutive) after the effective date of this
paragraph shall not be eligible for aid under the
State plan; and
‘‘(G) if a family is denied aid under the
State plan by reason of subparagraph (E) or
(F), each member of the family shall be consid-
ered to be receiving such aid for purposes of eli-
gibility for medical assistance under the State
plan approved under title XIX for so long as
the family would otherwise be eligible for such
aid.’’.
(b) PAYMENTS
TO STATES; SANCTIONS.—Section
403 of such Act (42 U.S.C. 603) is amended by adding
at the end the following:
‘‘(o)(1) Each State which has been paid under sub-
section (l) of this section for any fiscal year an amount
equal to the limitation determined under subsection (k)(2)
of this section for the fiscal year shall be entitled to pay-
ments under paragraph (4) of this subsection for the fiscal
year in an amount equal to the lesser of—
‘‘(A) the sum of the applicable percentages
(specified in such paragraph (4)) of its expenditures
under section 402(a)(29) with respect to which pay-
ment has not been made under such subsection (l)
(subject to limitations prescribed by or pursuant to
part F (to the extent applicable) or such paragraph
(4) on expenditures that may be included for pur-
poses of determining payment under such paragraph
(4)); or
‘‘(B) the limitation determined under paragraph
(2) of this subsection with respect to the State for
the fiscal year.
‘‘(2) The limitation determined under this paragraph
with respect to a State for any fiscal year is the amount
that bears the same ratio to the amount specified in para-
graph (3) of this subsection for the fiscal year as the aver-
age monthly number of adult recipients (as defined in sub-
section (k)(4)) in the State in the preceding fiscal year
bears to the average monthly number of such recipients
in all the States for such preceding year.
‘‘(3) The amount specified in this paragraph is—
‘‘(A) $500,000,000 for fiscal year 1996;
‘‘(B) $900,000,000 for fiscal year 1997;
‘‘(C) $1,800,000,000 for fiscal year 1998;
‘‘(D) $2,700,000,000 for fiscal year 1999; and
‘‘(E) $4,000,000,000 for fiscal year 2000.
‘‘(4) Each State which has been paid under sub-
section (l) of this section for a fiscal year an amount equal
to the limitation determined under subsection (k)(2) of
this section for the fiscal year shall, in addition to any
payment under subsection (a) or (l) of this section, be en-
titled to payment from the Secretary of an amount equal
to—
‘‘(A) 50 percent of the expenditures of the
State for administrative costs incurred under section
402(a)(29) during the fiscal year (other than per-
sonnel costs for staff employed to carry out section
402(a)(29)) with respect to which payment has not
been made under such subsection (l); and
‘‘(B) the greater of 70 percent or the Federal
medical assistance percentage (as defined in section
1118 in the case of a State to which section 1108
applies, or as defined in section 1905(b) in the case
of any other State) of the other expenditures of the
State incurred in carrying out section 402(a)(29)
during the fiscal year with respect to which payment
has not been made under such subsection (l).
‘‘(p)(1) The Secretary shall reduce by 25 percent the
amount otherwise payable under subsection (o) to a State
for each quarter in a fiscal year if—
‘‘(A) the State’s participation rate for the 3rd
quarter of the immediately preceding fiscal year is
less than the participation rate set forth in para-
graph (3) for the immediately preceding fiscal year;
or
‘‘(B) for more than 2 months in the imme-
diately preceding fiscal year, the State’s participa-
tion rate for the month is less than the participation
rate set forth in paragraph (3) for the 2nd preceding
fiscal year.
‘‘(2)(A) A State’s participation rate for a time period
shall be—
‘‘(i) the number of individuals receiving aid
under the State plan approved under this part who,
during the time period, participated in a work pro-
gram (within the meaning of section 402(a)(29)(A))
for an average of not fewer than 35 hours per week
during the time period (or for an average of not
fewer than 30 hours per week during the time period
if the individual is engaged in job search for an av-
erage of not fewer than 5 hours per week during the
time period); divided by
‘‘(ii) the number of families receiving aid under
the State plan approved under this part for the time
period.
‘‘(B) For purposes of subparagraph (A), in the case
of an individual who received aid under the State plan ap-
proved under this part for only a portion of a time period,
the conduct of the individual during that portion of the
time period is deemed to have occurred throughout the
time period.
‘‘(3) The participation rate set forth in this para-
graph is—
‘‘(A) 2 percent, for fiscal year 1996;
‘‘(B) 4 percent, for fiscal year 1997;
‘‘(C) 8 percent, for fiscal year 1998;
‘‘(D) 12 percent, for fiscal year 1999;
‘‘(E) 17 percent, for fiscal year 2000;
‘‘(F) 29 percent, for fiscal year 2001;
‘‘(G) 40 percent, for fiscal year 2002; and
‘‘(H) 50 percent, for fiscal year 2003 and each
succeeding fiscal year.
‘‘(4)(A) Before the beginning of each fiscal year, the
Secretary shall determine the number of individuals each
State is required to have participating in a work program
pursuant to section 402(a)(29), based on information
from the immediately preceding fiscal year and on any in-
formation submitted under subparagraph (B) of this para-
graph.
‘‘(B) If the number of individuals eligible for aid
under the State plan approved under this part during the
1st 3 quarters of a fiscal year is less than such number
for the 1st 3 quarters of the immediately preceding fiscal
year, then, not later than the 1st day of the succeeding
fiscal year, the State may submit to the Secretary infor-
mation documenting the decline.
‘‘(C) At the beginning of each fiscal year, the Sec-
retary shall publish in the Federal Register the number
determined pursuant to subparagraph (A) for each State
for the fiscal year.’’.
(c) OTHER PROVISIONS RELATING TO UNEMPLOYED
PARENTS.—
(1) EXTENSION TO ALL STATES OF OPTION TO
LIMIT AFDC–UP PROGRAM.—
(A) IN
GENERAL.—Section 407(b)(2)(B)
of such Act (42 U.S.C. 607(b)(2)(B)) is amend-
ed by striking clause (iii).
(B) CONFORMING
AMENDMENT.—Section
407(b)(2)(B)(i) 
of 
such 
Act 
(42 
U.S.C.
607(b)(2)(B)(i)) 
is 
amended 
by 
striking
‘‘clauses (ii) and (iii)’’ and inserting ‘‘clause
(ii)’’.
(2) INCREASE
IN
REQUIRED
WORK
PROGRAM
PARTICIPATION
RATES
OF
UNEMPLOYED
PAR-
ENTS.—Section 403(l)(4) of such Act (42 U.S.C.
603(l)(4)) is amended—
(A) by striking subparagraph (A);
(B) in subparagraph (B)—
(i) by striking ‘‘subparagraph (A)’’
and 
inserting 
‘‘section
402(a)(29)(B)(ii)(I)’’;
(ii) in clause (iii), by striking ‘‘and’’;
(iii) in clause (iv), by striking ‘‘each of
the fiscal years 1997 and 1998.’’ and in-
serting ‘‘fiscal year 1997; and’’; and
(iv) by adding at the end the follow-
ing:
‘‘(v) 90 percent in the case of the average of
each month in fiscal year 1998.’’;
(C) in subparagraph (C)—
(i) in clause (i), by striking ‘‘subpara-
graph 
(A)(i)’’ 
and 
inserting 
‘‘section
402(a)(29)(B)(ii)(I)’’; and
(ii) in clause (ii), by striking ‘‘sub-
paragraph’’ and inserting ‘‘section’’; and
(D) in subparagraph (D)—
(i) by striking ‘‘subparagraph (A)’’
each place such term appears and inserting
‘‘section 402(a)(29)(B)(ii)(I)’’;
(ii) by inserting ‘‘of this paragraph’’
after ‘‘subparagraph (B)’’; and
(iii) by adding after and below the end
the following:
‘‘The Secretary may not, under this subparagraph, waive
a penalty with respect to the same State more than once
during any 5-year period.’’.
(d) ELIMINATION
OF CERTAIN JOBS PROGRAM
RULES.—
(1) PARTICIPATION
REQUIREMENTS.—Section
403(l) of such Act (42 U.S.C. 603(l)) is amended by
striking paragraphs (2) and (3) and redesignating
paragraph (4) as paragraph (2).
(2) CWEP HOURS OF WORK LIMITATIONS.—
Section 482(f) of such Act (42 U.S.C. 682(f)) is
amended—
(A) in paragraph (1), by striking subpara-
graph (B) and redesignating subparagraph (C)
as subparagraph (B); and
(B) by striking paragraph (2) and redesig-
nating paragraphs (3) and (4) as paragraphs
(2) and (3), respectively.
(3) RULES RELATING TO EXEMPTIONS.—Sec-
tion 402(a)(19) of such Act (42 U.S.C. 602(a)(19))
is amended by striking subparagraphs (C) and (D),
by redesignating subparagraphs (E) and (F) as sub-
paragraphs (C) and (D), respectively, and by adding
‘‘and’’ at the end of subparagraph (C) (as so redes-
ignated).
(4) SANCTIONS.—Section 402(a)(19) of such
Act (42 U.S.C. 602(a)(19)) is amended by striking
subparagraph (G).
(5) LIMITATION ON AUTHORITY TO COMPEL AC-
CEPTANCE OF A JOB.—Section 402(a)(19) of such
Act (42 U.S.C. 602(a)(19)) is amended by striking
subparagraph (H).
(6) 
CONFORMING
AMENDMENTS
AND
RE-
PEAL.—
(A) Section 402(a)(19)(B) of such Act (42
U.S.C. 602(a)(19)(B)) is amended—
(i) by striking ‘‘—’’ and all that fol-
lows through ‘‘(i) the’’ and inserting ‘‘the’’;
(ii) by striking ‘‘subclause (I)’’ and in-
serting ‘‘clause (i)’’;
(iii) by striking clauses (ii), (iii), and
(iv);
(iv) by redesignating subclauses (I)
and (II) as clauses (i) and (ii), respec-
tively; and
(v) by moving clauses (i) and (ii) (as
so redesignated) 2 ems to the left.
(B) Section 407(b)(1)(B) of such Act (42
U.S.C. 607(b)(1)(B)) is amended—
(i) by adding ‘‘and’’ at the end of
clause (iii);
(ii) by striking ‘‘; and’’ at the end of
clause (iv) and inserting a period; and
(iii) by striking clause (v).
(C) Section 482(g)(2) of such Act (42
U.S.C. 682(g)) is amended by striking ‘‘(other’’
and all that follows through ‘‘applies)’’.
(D) Section 486 of such Act (42 U.S.C.
686) is hereby repealed.
(E) Section 487(a)(1) of such Act (42
U.S.C. 687(a)(1)) is amended by inserting ‘‘(as
in effect immediately before the effective date of
the Personal Responsibility Act of 1995)’’ be-
fore the semicolon.
(e) SENSE OF THE CONGRESS.—Each State that op-
erates a program of aid to families with dependent chil-
dren under a plan approved under part A of title IV of
the Social Security Act is encouraged to assign the highest
priority to requiring families that include older preschool
or school-age children to participate in a work program
in accordance with section 402(a)(29) of such Act.
SEC. 203. WORK SUPPLEMENTATION PROGRAM AMEND-
MENTS.
(a) AUTHORITY OF STATES TO ASSIGN PARTICI-
PANTS TO UNFILLED JOBS.—Section 484(c) of the Social
Security Act (42 U.S.C. 684(c)) is amended by striking
the last sentence.
(b) AUTHORITY OF STATES TO USE SUMS THAT
WOULD OTHERWISE BE EXPENDED FOR FOOD STAMP
BENEFITS TO PROVIDE SUBSIDIZED JOBS FOR PARTICI-
PANTS.—
(1) IN GENERAL.—Section 482(e)(1) of such
Act (42 U.S.C. 682(e)(1)) is amended—
(A) by inserting ‘‘, and the sums that
would otherwise be used to provide participants
in the program under this subsection with bene-
fits under title V of the Personal Responsibility
Act of 1995,’’ before ‘‘and use’’; and
(B) by inserting ‘‘and the benefits under
such title that would otherwise be so provided
to them’’ before the period.
(2) SUBSIDIES PROVIDED TO EMPLOYERS AND
INCLUDED IN WAGES OF PARTICIPANTS; MINIMUM
EMPLOYER
CONTRIBUTION.—Section 482(e)(3) of
such Act (42 U.S.C. 682(e)(3)) is amended by add-
ing at the end the following:
‘‘(E) Each State operating a work supplementation
program under this subsection shall enter into an agree-
ment with the employer who is to provide an eligible indi-
vidual with a supplemented job under the program, under
which—
‘‘(i) the State is required to pay the employer
an amount specified in the agreement as the sub-
sidized portion of the wages of the eligible individ-
ual; and
‘‘(ii) the employer is required to pay the eligible
individual wages which, when added to an amount
that will be payable as aid to families with depend-
ent children to the individual if the individual is paid
such wages, are not less than 100 percent of the
sum of—
‘‘(I) the amount that would otherwise be
payable as aid to families with dependent chil-
dren to the eligible individual if the State did
not have a work supplementation program
under this subsection in effect; and
‘‘(II) if the State elects to subsidize jobs
for participants in the program through the res-
ervation of sums that would otherwise be used
to provide such participants with benefits under
title V of the Personal Responsibility Act of
1995, the cash value of such benefits.
‘‘(F) For purposes of computing the amount of the
Federal payment to a State under paragraph (1) or (2)
of section 403(a), for expenditures incurred in making
payments to individuals and employers under the State’s
work supplementation program under this section, the
State may claim as such expenditures the maximum
amount payable to the State under paragraph (4) of this
subsection.
‘‘(G) Notwithstanding paragraph (1), a State may
use for any purpose the sums reserved under paragraph
(1) which are not used to subsidize jobs under this sub-
section attributable to savings achieved by operation of
subparagraph (E).’’.
(3) 
CONFORMING
AMENDMENT.—Section
482(e)(3)(A) of such Act (42 U.S.C. 682(e)(3)(A))
is amended by striking the 2nd sentence.
SEC. 204. PAYMENTS TO STATES FOR CERTAIN INDIVID-
UALS RECEIVING FOOD ASSISTANCE FROM
THE STATE WHO PERFORM WORK ON BE-
HALF OF THE STATE.
(a) IN GENERAL.—Each State (as defined in section
1101(a)(1) of the Social Security Act for purposes of title
IV of such Act) shall be entitled to receive from the Sec-
retary of Health and Human Services a monthly payment
in an amount equal to—
(1) $20 (as adjusted under subsection (b) of
this section); multiplied by
(2) the number of nonexempt individuals (as
defined in section 504(7) of this Act) who, during
the immediately preceding month—
(A) received food assistance from the State
under title V of this Act; and
(B) performed at least 32 hours of work
on behalf of the State or a political subdivision
of the State through a work program (as de-
fined in section 402(a)(29)(A)(i) of the Social
Security Act).
(b) INFLATION ADJUSTMENT.—The Secretary of
Health and Human Services shall adjust the amount re-
ferred to in subsection (a)(1) on October 1, 1996, and
each October 1 thereafter, to reflect changes in the
Consumer Price Index for All Urban Consumers published
by the Bureau of Labor Statistics, as appropriately ad-
justed by the Bureau of Labor Statistics after consultation
with the Secretary concerning the application of the Index
to this paragraph, for the 12 months ending the imme-
diately preceding June 30.
(E) Rural rental housing loans under sec-
tion 515 of the Housing Act of 1949.
(F) Rural rental assistance under section
521 of the Housing Act of 1949.
(G) Homeownership assistance for lower
income families under section 235 of the Na-
tional Housing Act.
(H) Rent supplements under section 101
of the Housing and Urban Development Act of
1965.
(I) Indian housing improvement grants
under part 256 of title 25, Code of Federal
Regulations.
(J) Rural housing repair loan grants for
very low-income rural home owners under sec-
tion 504 of the Housing Act of 1949.
(K) Farm labor housing loans under sec-
tion 514 of the Housing Act of 1949.
(L) Rural housing self-help technical as-
sistance grants under section 523 of the Hous-
ing Act of 1949.
(M) Rural housing self-help technical as-
sistance loans under section 523 of the Housing
Act of 1949.
(N) Farm labor housing grants under sec-
tion 516 of the Housing Act of 1949.
(O) Rural housing preservation grants for
low-income rural homeowners under section 533
of the Housing Act of 1949.
(4) MANDATORY WORK PROGRAM.—The man-
datory work program under part A of title IV of the
Social Security Act.
(5) JOBS PROGRAM.—The job opportunities
and basic skills training program under part F of
title IV of the Social Security Act.
(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
House of Representatives and the Senate shall con-
sult with the following committees of Congress, as
applicable:
(A) The Committee on Appropriations of
the House of Representatives or the Senate.
(B) The Committee on Banking and Fi-
nancial Services of the House of Representa-
tives or the Committee on Banking, Housing,
and Urban Affairs of the Senate.
(C) The Committee on Ways and Means of
the House of Representatives.
(D) The Committee on Finance of the Sen-
ate.
SEC. 302. CONVERSION OF FUNDING UNDER CERTAIN WEL-
FARE PROGRAMS.
Notwithstanding any other provision of law, effective
October 1, 1995, all entitlement of individuals to benefits
established under the following programs, or of States to
payments under such programs, is terminated:
(1) FAMILY
SUPPORT.—The program of aid
and services to needy families with children under
part A of title IV of the Social Security Act, the
child support enforcement program under part D of
such title, and the at-risk child care grant under
part A of such title.
(2) SUPPLEMENTAL
SECURITY
INCOME.—The
supplemental security income program under title
XVI of the Social Security Act.
SEC. 303. SAVINGS FROM WELFARE SPENDING LIMITS TO
BE USED FOR DEFICIT REDUCTION.
All savings to the Federal Government resulting from
the spending cap imposed under section 301 shall be used
for deficit reduction. Such savings shall not be used to
fund increased spending under any programs that are not
subject to the spending cap.
TITLE IV—RESTRICTING
WELFARE FOR ALIENS
SEC. 401. INELIGIBILITY OF ALIENS FOR PUBLIC WELFARE
ASSISTANCE.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as provided in subsections (b) and
(c), no alien shall be eligible for any program referred to
in subsection (d).
(b) EXCEPTIONS.—
(1) REFUGEE
EXCEPTION.—Subsection (a)
shall not apply to an alien admitted to the United
States as a refugee under section 207 of the Immi-
gration and Nationality Act until 6 years after the
date of such alien’s arrival into the United States.
(2) AGED
EXCEPTION.—Subsection (a) shall
not apply to an alien who—
(A) has been lawfully admitted to the
United States for permanent residence;
(B) is over 75 years of age; and
(C) has resided in the United States for at
least 5 years.
(3) CURRENT
RESIDENT
EXCEPTION.—Sub-
section (a) shall not apply to the eligibility of an
alien for a program referred to in subsection (d)
until 1 year after the date of the enactment of this
Act if, on such date of enactment, the alien is resid-
ing in the United States and is eligible for the pro-
gram.
(c) PROGRAM FOR WHICH ALIENS MAY BE ELIGI-
BLE.—The limitation under subsection (a) shall not apply
to medical assistance with respect to emergency services
(as defined for purposes of section 1916(a)(2)(D) of the
Social Security Act).
(d) PROGRAMS FOR WHICH ALIENS ARE INELI-
GIBLE.—The programs referred to in this subsection are
the following:
(1) The program of medical assistance under
title XIX of the Social Security Act, except emer-
gency services as provided in subsection (c).
(2) The Maternal and Child Health Services
Block Grant Program under title V of the Social Se-
curity Act.
(3) The program established in section 330 of
the Public Health Service Act (relating to commu-
nity health centers).
(4) The program established in section 1001 of
the Public Health Service Act (relating to family
planning methods and services).
(5) The program established in section 329 of
the Public Health Service Act (relating to migrant
health centers).
(6) The program of aid and services to needy
families with children under part A of title IV of the
Social Security Act.
(7) The child welfare services program under
part B of title IV of the Social Security Act.
(8) The supplemental security income program
under title XVI of the Social Security Act.
(9) The program of foster care and adoption
assistance under part E of title IV of the Social Se-
curity Act.
(10) The food assistance block grant program
established under title V of this Act.
(11) The program of rental assistance on behalf
of low-income families provided under section 8 of
the United States Housing Act of 1937 (42 U.S.C.
1437f).
(12) The program of assistance to public hous-
ing under title I of the United States Housing Act
of 1937 (42 U.S.C. 1437 et seq.).
(13) The loan program under section 502 of the
Housing Act of 1949 (42 U.S.C. 1472).
(14) The program of interest reduction pay-
ments pursuant to contracts entered into by the Sec-
retary of Housing and Urban Development under
section 236 of the National Housing Act (12 U.S.C.
1715z–1).
(15) The program of loans for rental and coop-
erative housing under section 515 of the Housing
Act of 1949 (42 U.S.C. 1485).
(16) The program of rental assistance pay-
ments pursuant to contracts entered into under sec-
tion 521(a)(2)(A) of the Housing Act of 1949 (42
U.S.C. 1490a(a)(2)(A)).
(17) The program of assistance payments on
behalf of homeowners under section 235 of the Na-
tional Housing Act (12 U.S.C. 1715z).
(18) The program of rent supplement payments
on behalf of qualified tenants pursuant to contracts
entered into under section 101 of the Housing and
Urban Development Act of 1965 (12 U.S.C. 1701s).
(19) The loan and grant programs under sec-
tion 504 of the Housing Act of 1949 (42 U.S.C.
1474) for repairs and improvements to rural dwell-
ings.
(20) 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.
(21) The program of grants for preservation
and rehabilitation of housing under section 533 of
the Housing Act of 1949 (42 U.S.C. 1490m).
(22) The program of grants and loans for mu-
tual and self-help housing and technical assistance
under section 523 of the Housing Act of 1949 (42
U.S.C. 1490c).
(23) The program of site loans under section
524 of the Housing Act of 1949 (42 U.S.C. 1490d).
(24) The program under part B of title IV of
the Higher Education Act of 1965.
(25) The program under subpart 1 of part A of
title IV of the Higher Education Act of 1965.
(26) The program under part C of title IV of
the Higher Education Act of 1965.
(27) The program under subpart 3 of part A of
title IV of the Higher Education Act of 1965.
(28) The program under part E of title IV of
the Higher Education Act of 1965.
(29) The program under subpart 4 of part A of
title IV of the Higher Education Act of 1965.
(30) The program under title IX of the Higher
Education Act of 1965.
(31) The program under subpart 5 of part A of
title IV of the Higher Education Act of 1965.
(32) The programs established in sections 338A
and 338B of the Public Health Service Act and the
programs established in part A of title VII of such
Act (relating to loans and scholarships for education
in the health professions).
(33) The program established in section
317(j)(1) of the Public Health Service Act (relating
to grants for immunizations against vaccine-prevent-
able diseases).
(34) The program established in section 317A
of the Public Health Service Act (relating to grants
for screening, referrals, and education regarding
lead poisoning in infants and children).
(35) The program established in part A of title
XIX of the Public Health Service Act (relating to
block grants for preventive health and health serv-
ices).
(36) The programs established in subparts I
and II of part B of title XIX of the Public Health
Service Act.
(37)(A) The program of training for disadvan-
taged adults under part A of title II of the Job
Training Partnership Act (29 U.S.C. 1601 et seq.).
(B) The program of training for disadvantaged
youth under part C of title II of the Job Training
Partnership Act (29 U.S.C. 1641 et seq.).
(38) The Job Corps program under part B of
title IV of the Job Training Partnership Act (29
U.S.C. 1692 et seq.).
(39) The summer youth employment and train-
ing programs under part B of title II of the Job
Training Partnership Act (29 U.S.C. 1630 et seq.).
(40) The programs carried out under the Older
American Community Service Employment Act (42
U.S.C. 3001 et seq.).
(iii) a finding of the sale of firearms, am-
munition, explosives, or controlled substance (as
defined in section 802 of title 21, United States
Code) for coupons, except that the Secretary
shall have the discretion to impose a civil money
penalty of up to $20,000 for each violation (ex-
cept that the amount of civil money penalties
imposed for violations occurring during a single
investigation may not exceed $40,000) in lieu of
disqualification under this subparagraph if the
Secretary determines that there is substantial
evidence (including evidence that neither the
ownership nor management of the store or food
concern was aware of, approved, benefited from,
or was involved in the conduct or approval of
the violation) that the store or food concern had
an effective policy and program in effect to pre-
vent violations of this section.
(3) The action of disqualification or the imposition
of a civil money penalty shall be subject to review as pro-
vided in subsection (f).
(4) As a condition of authorization to accept and re-
deem coupons issued under subsection (a), the Secretary
may require a retail food store or wholesale food concern
which has been disqualified or subjected to a civil penalty
pursuant to paragraph (1) to furnish a bond to cover the
value of coupons which such store or concern may in the
future accept and redeem in violation of this section. The
Secretary shall, by regulation, prescribe the amount,
terms, and conditions of such bond. If the Secretary finds
that such store or concern has accepted and redeemed cou-
pons in violation of this section after furnishing such bond,
such store or concern shall forfeit to the Secretary an
amount of such bond which is equal to the value of cou-
pons accepted and redeemed by such store or concern in
violation of this section. Such store or concern may obtain
a hearing on such forfeiture pursuant to subsection (f).
(5)(A) In the event any retail food store or wholesale
food concern that has been disqualified under paragraph
(1) is sold or the ownership thereof is otherwise trans-
ferred to a purchaser or transferee, the person or persons
who sell or otherwise transfer ownership of the retail food
store or wholesale food concern shall be subjected to a civil
money penalty in an amount established by the Secretary
through regulations to reflect that portion of the disquali-
fication period that has not yet expired. If the retail food
store or wholesale food concern has been disqualified per-
manently, the civil money penalty shall be double the pen-
alty for a 10-year disqualification period, as calculated
under regulations issued by the Secretary. The disquali-