tions 101(a), 105(a)(1), and 106 of this Act, is
amended—
(A) by striking ‘‘and’’ at the end of para-
graph (47);
(B) by striking the period at the end of
paragraph (48) and inserting ‘‘; and’’; and
(C) by inserting after paragraph (48) the
following:
‘‘(49) at the option of the State, provide that—
‘‘(A) aid under the plan shall not be pay-
able with respect to a child born out-of-wedlock
to an individual who, at the time of such birth,
had attained 18 years of age but had not at-
tained such age not exceeding 21 years as the
State may determine; and
‘‘(B) aid under the plan shall not be pay-
able with respect to an individual who has
borne a child out-of-wedlock after attaining 18
years of age but before attaining 21 years of
age, unless—
‘‘(i) after the birth of the child—
‘‘(I) the individual marries an in-
dividual who the State determines is
the biological father of the child; or
‘‘(II) the biological parent of the
child has legal custody of the child
and marries an individual who legally
adopts the child; or
‘‘(ii) the individual is a biological and
custodial parent of another child who was
not born out-of-wedlock.’’.
(2) NO EFFECT ON ELIGIBILITY FOR FOSTER
CARE
MAINTENANCE
PAYMENTS.—Section
472(a)(4)(B) of such Act (42 U.S.C. 672(a)(4)(B)),
as amended by sections 101(b), 105(b), and 106(b)
of this Act, is amended in each of clauses (i) and (ii)
by striking ‘‘and (48)’’ and inserting ‘‘(48), and
(49)’’.
(3) NO EFFECT ON ELIGIBILITY FOR ADOPTION
ASSISTANCE
PAYMENTS.—Section 473(a)(2)(B)(ii)
of such Act (42 U.S.C. 673(a)(2)(B)(ii)), as amend-
ed by sections 101(c), 105(c), and 106(c) of this
Act, is amended in each of subclauses (I) and (II)
by striking ‘‘and (48)’’ and inserting ‘‘(48), and
(49)’’.
(4) 
LIMITATION
ON
APPLICABILITY.—The
amendments made by this subsection shall not apply
to a child born before the effective date of this Act
who is a member of a family whose most recent ap-
plication for aid to families with dependent children
under a State plan approved under part A of title
IV of the Social Security Act was made before such
effective date.
(b) HOUSING BENEFITS.—
(1) PROHIBITION
OF
ASSISTANCE.—Notwith-
standing any other provision of law, a household
whose head of household is an individual who has
borne a child out-of-wedlock after attaining 18 years
of age but before attaining 21 years of age may not
be provided Federal housing assistance for a dwell-
ing unit located in a covered State, unless—
(A) after the birth of the child—
(i) the individual marries an individ-
ual who has been determined by the rel-
evant State to be the biological father of
the child; or
(ii) the biological parent of the child
has legal custody of the child and marries
an individual who legally adopts the child;
(B) the individual is a biological and custo-
dial parent of another child who was not born
out-of-wedlock; or
(C) eligibility for such Federal housing as-
sistance is based in whole or in part on any dis-
ability or handicap of a member of the house-
hold.
(2) COVERED STATES.—A State shall be con-
sidered a covered State for purposes of this sub-
section only during the period that—
(A) begins upon certification, made by the
chief executive officer of the State (at the op-
tion of the State) to the Secretary of Housing
and Urban Development and the Secretary of
Agriculture, that the State is a covered State
for purposes of this subsection; and
(B) ends upon submission of written notice
(at the option of the State), by the chief execu-
tive officer of the State to such Secretaries,
that the State is not a covered State for pur-
poses of this subsection.
(3) NOTIFICATION OF HOUSING PROVIDERS.—
Upon certification under paragraph (2)(A) for a
State and periodically thereafter during the period
that the State is a covered State, the Secretary of
Housing and Urban Development and the Secretary
of Agriculture shall provide written notice that the
State is a covered State for purposes of this sub-
section to—
(A) each public housing agency whose area
of jurisdiction is located in whole or part within
the State; and
(B) the owner or manager of each covered
project.
(4) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply:
(A) COVERED PROGRAM.—The term ‘‘cov-
ered program’’ means—
(i) the program of rental assistance
on behalf of low-income families provided
under section 8 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f);
(ii) the public housing program under
title I of the United States Housing Act of
1937 (42 U.S.C. 1437 et seq.);
(iii) the program of rent supplement
payments on behalf of qualified tenants
pursuant to contracts entered into under
section 101 of the Housing and Urban De-
velopment Act of 1965 (12 U.S.C. 1701s);
(iv) the program of interest reduction
payments pursuant to contracts entered
into by the Secretary of Housing and
Urban Development under section 236 of
the National Housing Act (12 U.S.C.
1715z–1);
(v) the program for mortgage insur-
ance 
provided 
pursuant 
to 
sections
221(d)(3) or (4) of the National Housing
Act (12 U.S.C. 1715l(d)) for multifamily
housing for low- and moderate-income fam-
ilies;
(vi) the rural housing loan program
under section 502 of the Housing Act of
1949 (42 U.S.C. 1472);
(vii) the rural housing loan guarantee
program under section 502(h) of the Hous-
ing Act of 1949 (42 U.S.C. 1472(h));
(viii) the loan and grant programs
under section 504 of the Housing Act of
1949 (42 U.S.C. 1474) for repairs and im-
provements to rural dwellings;
(ix) the program of loans for rental
and cooperative rural housing under sec-
tion 515 of the Housing Act of 1949 (42
U.S.C. 1485);
(x) the program of rental assistance
payments 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));
(xi) the loan and assistance programs
under sections 514 and 516 of the Hous-
ing Act of 1949 (42 U.S.C. 1484, 1486)
for housing for farm labor;
(xii) the program of grants and loans
for mutual and self-help housing and tech-
nical assistance under section 523 of the
Housing Act of 1949 (42 U.S.C. 1490c);
(xiii) the program of grants for pres-
ervation and rehabilitation of housing
under section 533 of the Housing Act of
1949 (42 U.S.C. 1490m); and
(xiv) the program of site loans under
section 524 of the Housing Act of 1949
(42 U.S.C. 1490d).
(B) COVERED PROJECT.—The term ‘‘cov-
ered project’’ means any housing for which
Federal housing assistance is provided that is
attached to the project or specific dwelling units
in the project.
(C) FEDERAL HOUSING ASSISTANCE.—The
term ‘‘Federal housing assistance’’ means—
(i) assistance provided under a cov-
ered program in the form of any contract,
grant, loan, subsidy, cooperative agree-
ment, loan or mortgage guarantee or in-
surance, or other financial assistance; or
(ii) occupancy in a dwelling unit that
is—
(I) provided assistance under a
covered program; or
(II) located in a covered project
and subject to occupancy limitations
under a covered program that are
based on income.
(D) PUBLIC HOUSING AGENCY.—The term
‘‘public housing agency’’ has the meaning given
the term in section 3(a) of the United States
Housing Act of 1937.
(E) STATE.—The term ‘‘State’’ means the
States of the United States, the District of Co-
lumbia, the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana Is-
lands, Guam, the Virgin Islands, American
Samoa, and any other territory or possession of
the United States.
(5) LIMITATIONS
ON
APPLICABILITY.—Para-
graph (1) shall not apply to Federal housing assist-
ance provided for a household pursuant to an appli-
cation or request for such assistance made by such
household before the effective date of this Act.
SEC. 108. GRANTS TO STATES FOR ASSISTANCE TO CHIL-
DREN BORN OUT-OF-WEDLOCK.
(a) IN GENERAL.—Title IV of the Social Security Act
(42 U.S.C. 601 et seq.) is amended by inserting after part
B the following:
‘‘PART C—GRANTS FOR ASSISTANCE TO
CHILDREN BORN OUT-OF-WEDLOCK
‘‘SEC. 440. PURPOSE.
‘‘(a) IN GENERAL.—The purpose of this part is to
grant a qualified State the flexibility and resources nec-
essary to provide such services and activities as the State
deems appropriate to discourage out-of-wedlock births and
assure care for children born out-of-wedlock.
‘‘(b) QUALIFIED STATE DEFINED.—For purposes of
this part, the term ‘qualified State’ means a State which—
‘‘(1) has a plan approved under section 402;
‘‘(2) has certified to the Secretary that—
‘‘(A) the payments made to the State
under this part will be used by the State in ac-
cordance with this part; and
‘‘(B) not less frequently than every 2
years, the State will audit the expenditures of
the amounts paid to the State under this part;
and
‘‘(3) has provided the Secretary with a copy of
any audit the performance of which was the subject
of a prior certification pursuant to paragraph (2).
‘‘SEC. 441. USE OF GRANT FUNDS.
‘‘(a) IN GENERAL.—Except as provided in subsection
(b), each qualified State that receives grant funds under
this part shall use such funds—
‘‘(1) to establish or expand programs to reduce
out-of-wedlock pregnancies;
‘‘(2) to promote adoption;
‘‘(3) to establish and operate orphanages;
‘‘(4) to establish and operate closely supervised
residential group homes for unwed mothers; or
‘‘(5) in any manner that the State deems ap-
propriate to accomplish the purpose of this part.
‘‘(b) PROHIBITIONS ON USE OF FUNDS.—
‘‘(1) NO INDIVIDUAL PAYMENTS.—A qualified
State that receives grant funds under this part shall
not use such funds to provide cash payments to an
individual who is the parent of a child born out-of-
wedlock or to the child.