140
spect to the child, unless the State makes provision
for such representation outside the State agency.’’.
SEC. 250. STAFFING.
(a) STUDIES.—The Secretary of Health and Human
Services shall conduct and, not later than 1 year after the
date of the enactment of this Act, complete staffing stud-
ies for each State child support enforcement program, in-
cluding each agency and court involved in the child sup-
port process.
(b) REPORT TO THE CONGRESS.—Within 90 days
after the end of the 1-year period described in subsection
(a), the Secretary shall report to the Committee on Ways
and Means of the House of Representatives and the Com-
mittee on Finance of the Senate, and to each State, the
results of the studies required by subsection (a).
(c) IMPLEMENTATION.—Section 455(a) (42 U.S.C.
655(a)) is amended by adding at the end the following:
‘‘(3) The Secretary shall reduce by 2 percent the
amount otherwise payable to a State pursuant to para-
graph (1)(A) for any calendar quarter ending 2 or more
years after the State receives a report transmitted pursu-
ant to section 250(b) of the Family Self-Sufficiency Act
of 1994, if the Secretary determines that, during the quar-
ter, the State has not met performance standards and has
141
not implemented the staffing levels recommended in the
report.’’.
SEC. 251. TRAINING.
(a) 
FEDERAL
TRAINING
ASSISTANCE.—Section
452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting
‘‘and training’’ after ‘‘technical assistance’’.
(b) STATE TRAINING PROGRAM.—Section 454 (42
U.S.C. 654), as amended by sections 212(a), 241(f), 245,
and 246(b)(1) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(27);
(2) by striking the period at the end of para-
graph (28) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (28) the fol-
lowing:
‘‘(29) provide that the State will develop and
implement a training program under which training
is to be provided not less frequently than annually
to all personnel performing functions under the
State plan.’’.
(c) 
REPORT.—Section 
452(a)(10) 
(42 
U.S.C.
652(a)(10)) is amended by redesignating subparagraphs
(H) and (I) as subparagraphs (I) and (J), respectively,
and by inserting after subparagraph (G) the following:
142
‘‘(H) the training activities at the Federal
and State levels, the training audit, and the
amounts expended on training;’’.
(d) RESOURCES.—For technical assistance, training,
operational research, demonstrations, and staffing studies
under part D of title IV of the Social Security Act, there
are authorized to be appropriated to the Secretary of
Health and Human Services for each fiscal year an
amount equal to not more than 2 percent of the total
amount paid to the Federal Government pursuant to sec-
tion 457(b) of such Act during the immediately preceding
fiscal year.
SEC. 252. PRIORITIES IN DISTRIBUTION OF COLLECTED
CHILD SUPPORT.
(a) IN
GENERAL.—Section 457(a) (42 U.S.C.
657(a)) is amended to read as follows:
‘‘(a) Amounts collected as support by a State pursu-
ant to a child support or wage withholding order are to
be allocated as follows:
‘‘(1) First, for support payments for the month
that are not past due, as follows:
‘‘(A) First, for cash support payments.
‘‘(B) Then, for payments related to pre-
miums for health care insurance coverage of
children covered by the order.
143
‘‘(2) Then, for payments of support that are
past due, and for payment of unreimbursed health
care expenses.’’.
(b) INCREASE IN PASS-THROUGH OF COLLECTED
CHILD SUPPORT.—
(1) 
IN
GENERAL.—Section 
457(b)(1) 
(42
U.S.C. 657(b)(1)) is amended—
(A) by inserting ‘‘or such greater amount
of such child support payments as the State
may establish and provide for in the State plan,
or if greater, 1⁄2’’ after ‘‘the first $50’’ each
place such term appears; and
(B) by inserting ‘‘less the amount of any
payment made to the family under section
402(a)(48) in the month in which the child sup-
port was received,’’ before ‘‘shall’’.
(2) INCREASE
IN
DISREGARD
OF
PASSED
THROUGH
CHILD
SUPPORT.—Section
402(a)(8)(A)(vi) (42 U.S.C. 602(a)(8)(A)(vi)) is
amended to read as follows:
‘‘(vi) shall disregard—
‘‘(I) the first $50 (adjusted pursuant
to section 406(i) for the calendar quarter
in which the month occurs) or such greater
amount of such child support payments as
144
the State may establish and provide for in
the State plan, or, if greater, 1⁄2 of any
child support payments for the month re-
ceived in the month;
‘‘(II) the first $50 (as so adjusted) or
such greater amount of such child support
payments as the State may establish and
provide for in the State plan, or if greater,
1⁄2 of child support payments for each
prior month received in the month if the
payments were made by the absent parent
in the month in which due; and
‘‘(III) any amount paid to the family
under section 457(b)(1), with respect to
the dependent child or children in the fam-
ily;’’.
(c) PERSONS NO LONGER RECEIVING AFDC.—Sec-
tion 457(c) (42 U.S.C. 657(c)) is amended—
(1) by striking ‘‘any amount of support col-
lected’’ and all that follows through ‘‘the individ-
uals’’ and inserting ‘‘to the family any amount of
support collected in payment of current or future
support obligations or arrears accrued for a month
for which the family did not receive such assistance,
subject to the same conditions and on the same
145
basis as in the case of payments made to families’’;
and
(2) by adding at the end the following: ‘‘If col-
lections are received in a month with respect to a
family which has ceased to receive such assistance,
the collections shall be credited first as payments for
the month that are not past due, then to payments
of arrears accrued in months for which the family
did not receive such assistance, then to any other
unpaid arrears, and then against future support ob-
ligations.’’.
(d) MARRIED COUPLES.—Section 457 (42 U.S.C.
657) is amended by adding at the end the following:
‘‘(e) If an individual obligor and obligee join house-
holds by marrying or remarrying each other, or (if married
to each other) by reuniting after a period of legal separa-
tion, the State shall suspend or forgive collection of child
support arrearages owed to the State if the income of the
resulting family is less than 200 percent of the poverty
line (as determined by the Secretary).’’.
SEC. 253. TEEN NONCUSTODIAL PARENTS AND CHILD SUP-
PORT.
(a) AUTHORITY OF STATES TO TEMPORARILY WAIVE
RIGHT TO COLLECT CHILD SUPPORT OBLIGATIONS OF
TEEN NONCUSTODIAL PARENTS WHO ARE PARTICIPAT-
146
ING IN A STATE EDUCATIONAL OR EMPLOYMENT PREPA-
RATION PROGRAM.—
(1) IN
GENERAL.—Section 454 (42 U.S.C.
454), as amended by sections 212(a), 241(f), 245,
246(b)(1), and 251(b) of this Act, is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (28);
(B) by striking the period at the end of
paragraph (29) and inserting ‘‘; and’’; and
(C) by inserting after paragraph (29) the
following:
‘‘(30) at the option of the State, provide that,
if the State agency determines that a noncustodial
parent who has not attained 20 years of age owes
but is unable to pay child support, then the State
may, in lieu of enforcing the right to such support
for such period as the State considers appropriate,
allow the parent to choose to comply with an edu-
cational or job training program.’’.
(2) CONFORMITY OF STATE GUIDELINES FOR
CHILD SUPPORT AWARDS.—Section 467 (42 U.S.C.
667) is amended by adding at the end the following:
‘‘(d) The guidelines established pursuant to sub-
section (a) shall provide that if the State agency deter-
mines that a noncustodial parent who has not attained 20
147
years of age owes but is unable to pay child support, then
the State may, in lieu of enforcing the right to such sup-
port for such period as the State considers appropriate,
allow the parent to choose to comply with an educational
or job training program.’’.
(b) LIMITATION ON USE OF JOBS FUNDS.—Section
403(l) (42 U.S.C. 603(l)), as amended by section 112(a)
of this Act, is amended by adding at the end the following:
‘‘(6) The Secretary shall not make a payment to a
State under this section with respect to amounts expended
by a State to carry out section 454(30), to the extent that
such expenditures exceed 5 percent of the total amount
expended by the State to operate the State program estab-
lished under part F.’’.
Subtitle E—Demonstrations
SEC. 261. ESTABLISHMENT OF CHILD SUPPORT ASSUR-
ANCE DEMONSTRATION PROJECTS.
(a) IN GENERAL.—In order to encourage States to
provide a guaranteed minimum level of child support for
every eligible child not receiving such support, the Sec-
retary of Health and Human Services (in this section re-
ferred to as the ‘‘Secretary’’) shall make grants to not
more than 6 States to conduct demonstration projects for
the purpose of establishing or improving a system of as-
148
sured minimum child support payments in accordance
with this section.
(b) CONTENTS OF APPLICATION.—An application for
grants under this section shall be submitted by the Gov-
ernor of a State and shall—
(1) contain a description of the proposed child
support assurance project to be established, imple-
mented, or improved using amounts provided under
this section, including the level of the assured bene-
fit to be provided, the specific activities to be under-
taken, and the agencies that will be involved;
(2) specify whether the project will be carried
out throughout the State or in limited areas of the
State;
(3) estimate the number of children who will be
eligible for assured minimum child support payments
under the project, and the amounts to which they
will be entitled on average as individuals and in the
aggregate;
(4) describe the child support guidelines and re-
view procedures which are in use in the State and
any expected modifications;
(5) contain a commitment by the State to carry
out the project during a period of not less than 7
149
and not more than 10 consecutive fiscal years begin-
ning with fiscal year 1996;
(6) contain assurances that the State—
(A) is currently at or above the national
median paternity establishment rate (as defined
in section 452(g)(2) of the Social Security Act);
(B) will improve the performance of the
agency designated by the State to carry out the
requirements under part D of title IV of the
Social Security Act by at least 4 percent each
year in which the State operates a child support
assurance project under this section in—
(i) the number of cases in which pa-
ternity is established when required;
(ii) the number of cases in which child
support orders are obtained; and
(iii) the number of cases with child
support orders in which collections are
made; and
(C) to the maximum extent possible under
current law, will use Federal, State, and local
job training assistance to assist obligors who
have been determined to be unable to meet
their child support obligations;
150
(7) describe the extent to which multiple agen-
cies, including those responsible for administering
the program of aid to families with dependent chil-
dren under part A of title IV of the Social Security
Act and child support collection, enforcement, and
payment under part D of such title, will be involved
in the design and operation of the child support as-
surance project; and
(8) contain such other information as the Sec-
retary may require by regulation.
(c) USE OF FUNDS.—A State shall use amounts pro-
vided under a grant awarded under this section to carry
out a child support assurance project designed to provide
a minimum monthly child support benefit for each eligible
child in the State to the extent that such minimum child
support is not paid in a month by the noncustodial parent.
(d) REQUIREMENTS.—(1) A child support assurance
project funded under this section shall provide that—
(A) a child shall be eligible for the assured child
support benefit if—
(i) the child has a living noncustodial par-
ent for whom—
(I) a child support order has been
sought (as defined in paragraph (3)); or
153
mined without consideration of the assured child
support benefits;
(F) the consideration under a State plan under
part A of title IV of the Social Security Act of any
child support payment received by a family other
than a child support assurance benefit shall be gov-
erned by section 402(a)(8)(A)(vi) of such Act; and
(G) in order to participate in the child support
assurance project, the child’s caretaker shall apply
for or be receiving services of the State’s child sup-
port enforcement program under part D of title IV
of the Social Security Act.
(2) For purposes of this section, the term ‘‘child’’
means an individual who is of such an age, disability, or
educational status as to be eligible for child support as
provided for by the law of the State in which such individ-
ual resides.
(3) For purposes of this section, a child support order
shall be deemed to have been ‘‘sought’’ where an individual
has applied for or is receiving services from the State child
support agency, or has sought a child support order
through representation by private or public counsel or pro
se.
(e) CONSIDERATION
AND PRIORITY
OF APPLICA-
TIONS.—(1) The Secretary shall consider all applications
154
received from States desiring to conduct demonstration
projects under this section and shall approve not more
than 6 applications which appear likely to contribute sig-
nificantly to the achievement of the purpose of this sec-
tion. In selecting States to conduct demonstration projects
under this section, the Secretary shall—
(A) ensure that the applications selected rep-
resent a diversity of minimum benefits distributed
throughout 
the 
range 
specified 
in 
subsection
(d)(1)(B)(i);
(B) consider the geographic dispersion and vari-
ation in population of the applicants;
(C) give priority to States the applications of
which demonstrate—
(i) significant recent improvements in—
(I) establishing paternity and child
support awards,
(II) enforcement of child support
awards, and
(III) collection of child support pay-
ments;
(ii) a record of effective automation; and
(iii) that efforts will be made to link child
support systems with other service delivery sys-
tems;
155
(D) ensure that the proposed projects will be of
a size sufficient to obtain a meaningful measure of
the effects of child support assurance;
(E) give priority, first, to States intending to
operate a child support assurance project on a state-
wide basis, and, second, to States that are commit-
ted to phasing in an expansion of such project to the
entire State, if interim evaluations suggest such ex-
pansion is warranted; and
(F) ensure that, if feasible, the States selected
use a variety of approaches for child support guide-
lines.
(2) The Secretary shall, if feasible, require at least
2 of the States selected to participate in the demonstration
projects conducted under this section to provide intensive
integrated social services for low-income participants in
the child support assurance project, for the purpose of as-
sisting such participants in improving their employment,
housing, health, and educational status.
(f) DURATION.—During fiscal year 1995, the Sec-
retary shall develop criteria, select the States to partici-
pate in the demonstration, and plan for the evaluation re-
quired under subsection (h). The demonstration projects
conducted under this section shall commence on October
1, 1995, and shall be conducted for not less than 7 and
156
not more than 10 consecutive fiscal years, except that the
Secretary may terminate a project before the end of such
period if the Secretary determines that the State conduct-
ing the project is not in substantial compliance with the
terms of the application approved by the Secretary under
this section. The Secretary shall determine from interim
reports required under subsection (i) whether a project
may be extended beyond such period, and Federal finan-
cial participation shall be available for such an extension.
(g) COST SAVINGS RECOVERY.—The Secretary shall
develop a methodology to identify any State cost savings
realized in connection with the implementation of a child
support assurance project conducted under this section.
Any such savings realized as a result of the implementa-
tion of a child support assurance project shall be utilized
for child support enforcement improvements or expansions
and improvements in the program of aid to families with
dependent children conducted under part A of title IV of
the Social Security Act within the participating State.
(h) EVALUATION AND REPORT TO CONGRESS.—(1)
The Secretary shall conduct an evaluation of the effective-
ness of the demonstration projects funded under this sec-
tion and determine whether to recommend that such
projects be phased in on a national basis. The evaluation
157
shall include an assessment of the effect of an assured
benefit on—
(A) parental income from nongovernment
sources and the number of hours worked;
(B) the use and amount of government sup-
ports by the parents;
(C) the ability of the parents to accumulate re-
sources;
(D) the well-being of the children receiving
child support assurance benefits, including edu-
cational attainment and school behavior; and
(E) the State’s rates of establishing paternity
and support orders and of collecting support.
(2) 4 years after commencement of the demonstration
projects, and at the completion of the designated duration
of a demonstration project, the Secretary shall submit an
interim and final report based on the evaluation to the
Committee on Finance and the Committee on Labor and
Human Resources of the Senate, and the Committee on
Ways and Means and the Committee on Education and
Labor of the House of Representatives concerning the ef-
fectiveness of the child support assurance projects funded
under this section.
(i) STATE REPORTS.—The Secretary shall require
each State that conducts a demonstration project under
158
this section to annually report such information on the
project’s operation as the Secretary may require, except
that all such information shall be reported according to
a uniform format prescribed by the Secretary. Each such
State shall provide an opportunity for the public to com-
ment on the demonstration project during such period as
the State may establish, and shall include any such com-
ments in the annual report.
(j) RESTRICTIONS
ON MATCHING
AND USE
OF
FUNDS.—(1) A State conducting a demonstration project
under this section shall be required—
(A) except as provided in paragraph (2), to pro-
vide not less than 20 percent of the total amounts
expended in each calendar year of the project to pay
the costs associated with the project funded under
this section;
(B) to maintain its level of expenditures for
child support collection, enforcement, and payment
at the same level, or at a higher level, than such ex-
penditures were prior to such State’s participation in
a demonstration project provided by this section;
and
(C) to maintain the aid to families with depend-
ent children benefits provided under part A of title
IV of the Social Security Act at the same level, or
159
at a higher level, as the level of such benefits on the
date of the enactment of this Act.
(2) A State participating in a demonstration project
under this section may provide no less than 10 percent
of the total amounts expended to pay the costs associated
with the project funded under this section in years after
the first year such project is conducted in a State if the
State meets the improvements specified in subsection
(b)(6)(B).
(k) COORDINATION WITH CERTAIN MEANS-TESTED
PROGRAMS.—For purposes of—
(1) the United States Housing Act of 1937;
(2) title V of the Housing Act of 1949;
(3) section 101 of the Housing and Urban De-
velopment Act of 1965;
(4) sections 221(d)(3), 235, and 236 of the Na-
tional Housing Act;
(5) the Food Stamp Act of 1977;
(6) title XIX of the Social Security Act; and
(7) child care assistance provided through part
A of title IV of the Social Security Act, the Child
Care and Development Block Grant, or title XX of
the Social Security Act,
any payment made to an individual within the demonstra-
tion project area for child support up to the amount which
160
an assured child support benefit would provide shall not
be treated as income and shall not be taken into account
in determining resources for the month of its receipt and
the following month.
(l) TREATMENT OF CHILD SUPPORT BENEFIT.—Any
assured child support benefit received by an individual
under this section shall be considered child support for
purposes of the Internal Revenue Code of 1986.
(m) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be
necessary in each of the fiscal years 1995, 1996, 1997,
1998, 1999, and 2000 to carry out this section.
Subtitle F—Miscellaneous
SEC. 271. TECHNICAL CORRECTION TO ERISA DEFINITION
OF MEDICAL CHILD SUPPORT ORDER.
(a) IN GENERAL.—Section 609(a)(2)(B) of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1169(a)(2)(B)) is amended—
(1) by striking ‘‘issued by a court of competent
jurisdiction’’;
(2) by striking the period at the end of clause
(ii) and inserting a comma; and
(3) by adding, after and below clause (ii), the
following:
161
‘‘if such judgment, decree, or order (I) is issued
by a court of competent jurisdiction or (II) is
issued by an administrative adjudicator and has
the force and effect of law under applicable
State law.’’.
(b) PLAN AMENDMENTS NOT REQUIRED UNTIL OC-
TOBER 1, 1996.—
(1) IN GENERAL.—Any amendment to a plan
required to be made by an amendment made by this
section shall not be required to be made before the
first plan year beginning on or after October 1,
1996, if—
(A) during the period after the date before
the effective date of this Act and before such
first plan year, the plan is operated in accord-
ance with the requirements of the amendments
made by this section; and
(B) the plan amendment applies retro-
actively to the period after the date before the
effective date of this Act and before such first
plan year.
(2) HOLD HARMLESS PROVISION.—A plan shall
not be treated as failing to be operated in accord-
ance with the provisions of the plan merely because
it operates in accordance with paragraph (1).
162
TITLE III—TEEN PARENTS AND
WELFARE REFORM
Subtitle A—Family
SEC. 301. MINOR TEEN PARENT RESIDENCY REQUIREMENT.
Section 402(a)(43) (42 U.S.C. 602(a)(43)) is amend-
ed to read as follows:
‘‘(43) provide that—
‘‘(A) aid under the State plan shall not be
provided to an individual who has not attained
18 years of age, has never married, and has a
dependent child in his or her care or is preg-
nant and eligible for such aid, for the individual
and the dependent child (or for herself in the
case of a pregnant woman), if the case manager
for the individual determines that—
‘‘(i) the individual is not residing in a
place of residence maintained by a parent,
legal guardian, or other adult relative of
the individual as the home of the parent,
legal guardian, or other adult relative, or
in a foster home, maternity home, or other
adult-supervised supportive living arrange-
ment;
‘‘(ii) an appropriate adult-supervised
living arrangement is available for the indi-
163
vidual and the dependent child (or for her-
self in the case of a pregnant woman); and
‘‘(iii) the individual should be required
to relocate to such a place of residence;
and
‘‘(B) subparagraph (A) shall not apply to
an individual if—
‘‘(i) the circumstances described in
subparagraph (A) have persisted for less
than 2 months since the case manager
made the determination described in sub-
paragraph (A);
‘‘(ii) the individual does not have a
parent or legal guardian who is living in
the State and whose whereabouts are
known;
‘‘(iii) the individual has been living
independently from any parent or legal
guardian of the individual for at least 1
year before the date the child was born or
the date the individual applied for aid
under the State plan;
‘‘(iv) the individual is a ward of the
court or of the State, and the court or the
164
State (as the case may be) has approved
the individual for independent living; or
‘‘(v) the individual has been emanci-
pated by court order;
‘‘(C) subparagraph (A) shall not apply to
an individual if the case manager for the indi-
vidual determines—
‘‘(i) that the individual does not have
a parent or legal guardian who will allow
the individual to live in the home of the
parent or legal guardian;
‘‘(ii) that the physical or emotional
health or safety of the individual or the de-
pendent child would be jeopardized if the
individual and the child lived in the same
residence with the parent or legal guardian
of the individual;
‘‘(iii) that the application of subpara-
graph (A) would prevent the continued
participation of the individual in—
‘‘(I) a substance abuse treatment
program approved by the State; or
‘‘(II) an education or training
program, or in employment, without
providing an equivalent alternative; or
165
‘‘(iv) in accordance with regulations
issued by the Secretary, that there is other
good cause for not applying subparagraph
(A) to the individual;
‘‘(D) in making the determinations de-
scribed in subparagraphs (A), (B), and (C), the
case manager for an individual shall—
‘‘(i) consider all relevant factors, in-
cluding—
‘‘(I) whether there is evidence
that the individual or the child has
suffered or is at risk of suffering
physical or emotional abuse by some-
one in the place;
‘‘(II) whether illegal activity oc-
curs at the place; and
‘‘(III) whether a mandatory relo-
cation of the individual would result
in overcrowding, violation of the terms
of a lease, or a violation of local
health or safety standards;
‘‘(ii) if the case manager is not a fam-
ily counselor, consult with a family coun-
selor who has specialized training or dem-
onstrated experience serving individuals
166
and families, and the written recommenda-
tions of the counselor shall be included in
the case record;
‘‘(E) if the case manager determines that
the individual should be required to relocate,
the State agency shall offer the individual coun-
seling and other services designed to help the
individual make the transition from independ-
ent to supervised living; and
‘‘(F) the case manager shall determine in
all cases in which aid under the State plan is
payable to an individual who is pregnant or a
parent, and has not attained 20 years of age,
for the needs of the individual and for the needs
of a dependent child of the individual, whether
such aid should be paid to another individual in
the manner described in section 406(b)(2).’’.
SEC. 302. BENEFITS INCREASED BY $50 FOR PATERNITY ES-
TABLISHMENT 
OR 
ESTABLISHMENT 
OF
CHILD SUPPORT ORDER.
Section 402(a) (42 U.S.C. 602(a)), as amended by
sections 104 and 138 of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(46);
167
(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) provide that the amount of aid otherwise
payable under the State plan for a month to a fam-
ily that includes an individual who has not attained
20 years of age and is the parent of a child whose
paternity has been established or with respect to
whom a child support order is in effect shall be in-
creased by $50.’’.
Subtitle B—Education and
Employment
SEC. 311. SCHOOLING AND EMPLOYMENT REQUIREMENTS.
(a) IN GENERAL.—Section 482 (42 U.S.C. 682), as
amended by section 111(a) of this Act, is amended by add-
ing at the end the following:
‘‘(k) Each State program established under this part
shall impose only the following requirements with respect
to each participant who has not attained 20 years of age,
has not completed secondary school or received a certifi-
cate of high school equivalency, and is a custodial parent
or pregnant:
‘‘(1) The participant shall participate in an
educational program or an employment preparation
168
program that leads to a high school diploma or the
equivalent unless—
‘‘(A) the participant has a need for child
care or other supportive services that cannot be
addressed by the program; or
‘‘(B) the case manager determines, after
consultation with the school or training pro-
gram, that the recipient would not benefit from
direct placement in any such program, in which
case the recipient shall participate in appro-
priate alternative activities specified in an indi-
vidualized plan developed for the individual by
the case manager which may include a plan for
subsequent placement in such a program.
‘‘(2)(A) If an individual required to participate
in a program referred to in paragraph (1) fails to
meet a standard (established by the State in accord-
ance with subparagraph (B)) for minimum perform-
ance in the program, the amount of aid otherwise
payable to the individual on a monthly basis under
the State plan approved under part A shall be re-
duced by the lesser of—
‘‘(i) $60;
‘‘(ii) 20 percent of such otherwise payable
amount; or
169
‘‘(iii) the difference between such otherwise
payable amount and the amount of such aid
that would be so payable if the family of the in-
dividual included 1 less person.
‘‘(B) The minimum performance standard re-
ferred to in subparagraph (A)—
‘‘(i) shall be based on the achievement of
satisfactory progress in the program or on ful-
fillment of an attendance standard established
by the State; and
‘‘(ii) if based on the achievement of satis-
factory progress—
‘‘(I) shall not require maintenance of
a grade that is higher than a passing
grade in the school district in which the
program is located, or if the program does
not award grades, of a performance level
higher than a level prescribed by the Sec-
retary in regulations; and
‘‘(II) shall provide for consideration,
under a plan approved by the Secretary, of
whether the failure of an individual to
achieve a specified grade or other applica-
ble performance level is due to limitations
on the ability of the individual to learn or
170
other circumstances that limit the ability
of the individual to perform up to his or
her capacities, or shall provide for deeming
progress to be satisfactory if the individual
meets a specified attendance standard.
‘‘(C) Subparagraph (A) shall not apply to an
individual who has good cause (as determined by the
State in accordance with regulations prescribed by
the Secretary) for failing to meet the standard of
minimum performance.
‘‘(D) The State may place in an escrow account
with respect to an individual whose aid is reduced
pursuant to subparagraph (A) of this paragraph an
amount equal to the amount of the reduction in such
aid, and may pay to the individual all amounts
placed in an escrow account with respect to the indi-
vidual, upon a demonstration by the individual of a
satisfactory effort (as defined by the State in accord-
ance with regulations prescribed by the Secretary) in
the program.
‘‘(E) The State shall monitor the percentage of
the persons attending each school upon whom sanc-
tions are imposed pursuant to subparagraph (A),
and, if the State determines that the percentage for
any school significantly exceeds such percentage at
171
similar schools, the State shall determine the rea-
sons for the excessive sanction percentage, and shall
suspend the imposition of sanctions upon the per-
sons attending the school until the State determines
that the sanction percentage is not excessive.
‘‘(3)(A) If an individual required to participate
in a program referred to in paragraph (1) meets a
standard (established by the State in accordance
with subparagraph (B) of this paragraph) for suffi-
cient performance in the program, the amount of aid
otherwise payable to the individual on a monthly
basis under the State plan approved under part A
shall be increased by not less than the lesser of—
‘‘(i) $60;
‘‘(ii) 20 percent of such otherwise payable
amount; or
‘‘(iii) the difference between such otherwise
payable amount and the amount of such aid
that would be so payable if the family of the in-
dividual included 1 less person.
‘‘(B) The sufficient performance standard re-
ferred to in subparagraph (A) of this paragraph
shall be based on measurement of the same factors
used to determine whether the minimum perform-
ance standard referred to in paragraph (2)(B)(i) has
172
been met, and may require a higher degree of per-
formance (subject to such limits as the Secretary
shall prescribe in regulations) than the minimum
performance standard.’’.
(b) 
CONFORMING
AMENDMENTS.—Section
402(a)(19) (42 U.S.C. 602(a)(19)) is amended—
(1) in subparagraph (C)—
(A) in clause (iii), by inserting ‘‘, is not de-
scribed by clause (viii), and’’ before ‘‘—’’;
(B) in clause (v)—
(i) by inserting a comma after ‘‘16’’;
and
(ii) by inserting ‘‘and is not a custo-
dial parent or pregnant’’ before the semi-
colon; and
(C) by striking ‘‘or’’ at the end of clause
(vi);
(D) by adding ‘‘or’’ at the end of clause
(vii); and
(E) by adding at the end the following:
‘‘(viii)(I) has not attained 20 years of
age,
‘‘(II) has not completed secondary
school or received a certificate of high
school equivalency, and
173
‘‘(III) is pregnant, or is a custodial
parent of a child who has not attained 4
months of age and is personally providing
care for the child;’’; and
(2) by striking subparagraph (E).
SEC. 312. SUMMER ACTIVITIES AND TEEN EARNINGS.
(a) GRANT BONUS FOR PARTICIPATION IN APPRO-
PRIATE SUMMER ACTIVITIES.—Section 482 (42 U.S.C.
682), as amended by sections 111(a) and 301 of this Act,
is amended by adding at the end the following:
‘‘(l) Each State with a program established under
this part—
‘‘(1) may increase the aid otherwise payable on
a monthly basis under the State plan approved
under part A to any participant described in sub-
section (k) who participates in appropriate summer
activities (as determined by the case manager in ac-
cordance with State guidelines), by the lesser of $60
or 20 percent of such otherwise payable aid; and
‘‘(2) shall make available to any such partici-
pant who participates in a summer educational pro-
gram or other activities approved by the State the
same child care and other supportive services that
are made available to participants in the program of
the State under this part.’’.
174
(b) 
EARNED
INCOME
DISREGARD.—Section
402(a)(8)(A) (42 U.S.C. 602(a)(8)) is amended—
(1) by striking ‘‘and’’ at the end of clause (vii);
and
(2) by adding at the end the following:
‘‘(ix) shall disregard all earned income of
any individual applying for or receiving aid
under the State plan who has not attained 20
years of age and to whom section 482(k) ap-
plies;’’.
SEC. 313. PLANNING, STARTUP, AND REPORTING.
(a) REQUIRED
PARTICIPATION
RATES.—Section
403(l) (42 U.S.C. 603(l)), as amended by sections 112(a)
and 256(b) of this Act, is amended by adding at the end
the following:
‘‘(7)(A) Notwithstanding paragraph (1), the Sec-
retary shall pay to a State an amount equal to 50 percent
of the expenditures made by such State in a fiscal year
in operating its program established under part F (in lieu
of any different percentage specified in paragraph (1)(A))
if the State’s teen participation rate (determined under
subparagraph (B)) for the preceding fiscal year does not
exceed or equal—
‘‘(i) 15 percent if the preceding fiscal year is
1996;
175
‘‘(ii) 40 percent if such year is 1997;
‘‘(iii) 70 percent if such year is 1998; or
‘‘(iv) 90 percent if such year is 1999.
‘‘(B) The State’s teen participation rate for a fiscal
year shall be the average of its teen participation rates
for each month in such fiscal year.
‘‘(C) The State’s teen participation rate for a month
shall be the number, expressed as a percentage, equal to—
‘‘(i) the average monthly number of individuals
required to comply with section 482(k) for the
month who have received aid under the State plan
approved under part A for at least 60 days, and—
‘‘(I) are in an assigned or individualized
activity or in the midst of a regularly scheduled
school break;
‘‘(II) have good cause for not participating
in a program under such section;
‘‘(III) are in conciliation or whose aid
under the State plan approved under this part
has been reduced pursuant to such section; or
‘‘(IV) are former recipients of such aid
who are receiving case management services
under the State plan; divided by
‘‘(ii) the number of individuals required to com-
ply with section 482(k) for the month, plus the num-
176
ber of former recipients of such aid who are receiv-
ing case management services under the State plan.
‘‘(D) Subparagraphs (D) and (E) of paragraph (3)
shall apply in like manner to this paragraph.
‘‘(E) The State shall submit to the Secretary a report
on the number of individuals in each category or sub-
category of participants in programs under section 482(k)
as the Secretary may define.
‘‘(F) The Secretary shall develop such procedures as
may be necessary to ensure that participation rates re-
ported by States are accurate, and shall annually submit
to the Congress a compilation of the State reports made
pursuant to subparagraph (E).’’.
(b) 
STATE
PLAN
REQUIREMENT.—Section
482(a)(1)(B) (42 U.S.C. 682(a)(1)(B)) is amended by
striking ‘‘and (iii)’’ and inserting ‘‘(iii) a description of
the plans of the State for ensuring that, within 5 years
after the effective date of this clause, all individuals re-
quired to comply with subsection (k) do so, including the
strategy for phasing in the requirements of subsection (k),
which shall reflect the finding of a needs assessment that
identifies the current and projected numbers of recipients
of aid under the State plan in different regions of the
State who have not attained 20 years of age, the availabil-
ity of appropriate educational institutions and alternatives
177
(including parenting education capacity) and the availabil-
ity of support services, and of the plans of the State for
ensuring that service providers have agreed to cooperate
in supplying necessary data (such as reports on attend-
ance, satisfactory participation, and performance), and a
commitment by the State to make annual reports to the
Secretary on progress in carrying out this clause and sub-
section (k), and (iv).’’.
SEC. 314. CHILD CARE FOR NON-AFDC TEEN PARENTS.
(a) ELIGIBILITY FOR AFDC CHILD CARE.—
(1) IN GENERAL.—Section 402(g)(1)(A)(i) (42
U.S.C. 602(g)(1)(A)(i)) is amended—
(A) by striking ‘‘and’’ at the end of
subclause (I);
(B) by striking the period at the end of
subclause (II) and inserting ‘‘; and’’; and
(C) by adding after and below the end the
following:
‘‘(III) at the option of the State, for each indi-
vidual who has not attained 20 years of age, whose
income is less than 150 percent of the income offi-
cial poverty line (as defined by the Office of Man-
agement and Budget, and revised annually in ac-
cordance with section 673(2) of the Omnibus Budget
Reconciliation Act of 1981) applicable to the family
178
of the individual, who is a custodial parent of a
child, and who requires such care in order to attend
an educational institution or such training programs
as the State deems appropriate.’’.
(2) AUTHORITY OF STATE TO REQUIRE CON-
TRIBUTION
BY
NON-AFDC
TEEN
PARENTS
IN
AC-
CORDANCE WITH A SLIDING FEE SCALE CONSISTENT
WITH THAT ESTABLISHED BY THE STATE UNDER
THE
CCDBG.—Section 402(g)(1)(A) (42 U.S.C.
602(g)(1)(A)), as amended by sections 137(a),
140(a), 141, and 142 of this Act, is amended by
adding at the end the following:
‘‘(xiv) The State may elect to require a family to con-
tribute to the cost of child care provided under clause
(i)(III) in accordance with a sliding fee scale that is con-
sistent with the sliding fee scale established by the State
under the Child Care and Development Block Grant Act
of 1990.’’.
(b) STATE OPTION TO PROVIDE CHILD CARE FOR
TEEN PARENTS PARTICIPATING
IN
AN EDUCATIONAL
PROGRAM AND ACCEPTING CASE MANAGEMENT SERV-
ICES.—Section 402(g)(1)(A) (42 U.S.C. 602(g)(1)(A)), as
amended by sections 137(a), 140(a), 141, and 142 of this
Act, and by subsection (a)(2) of this section, is amended
by adding at the end the following:
179
‘‘(xv) Each State may guarantee child care in accord-
ance with subparagraph (B) of this paragraph for each
individual described in subparagraph (A)(ii) or (B)(ii) of
subsection (a)(48) whose income does not exceed 150 per-
cent of the poverty line and who is participating in an
educational program pursuant to section 482(k), if and
for so long as the individual accepts case management as
provided for in such subsection.’’.
(c) ELIGIBILITY FOR AT-RISK CHILD CARE.—Sec-
tion 402(i)(1)(B) (42 U.S.C. 602(i)(1)(B)) is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(B)’’ and
(2) by striking ‘‘and’’ and inserting ‘‘or’’; and
(3) by adding after and below the end the fol-
lowing:
‘‘(ii) in the case of a family that includes a indi-
vidual who has not attained 20 years of age and is
a custodial parent, needs such care in order to par-
ticipate in an education or training program ap-
proved by the State; and’’.
Subtitle C—Case Management
SEC. 321. CASE MANAGEMENT.
(a) IN
GENERAL.—Section 402(a) (42 U.S.C.
602(a)), as amended by sections 104 and 138 of this Act,
is amended—
180
(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) provide that the State agency—
‘‘(A) shall assign a case manager—
‘‘(i) to each recipient of aid under the
State plan who—
‘‘(I) is a custodial parent of a
child or pregnant; and
‘‘(II) has not attained 20 years
of age;
‘‘(ii) for 1 year, to each former recipi-
ent of such aid who—
‘‘(I) is a custodial parent;
‘‘(II) has not attained 20 years
of age; and
‘‘(III) has not declined such as-
signment; and
‘‘(B) may assign a case manager to any in-
dividual—
‘‘(i) who—
181
‘‘(I) is a noncustodial parent re-
ceiving aid under the State plan; and
‘‘(II) has not attained 20 years
of age; or
‘‘(ii)(I) who is a parent not receiving
aid under the State plan;
‘‘(II) who has not attained 20 years of
age;
‘‘(III) whose income does not exceed
150 percent of the income official poverty
line (as defined by the Office of Manage-
ment and Budget, and revised annually in
accordance with section 673(2) of the Om-
nibus Budget Reconciliation Act of 1981)
applicable to a family of the size involved;
and
‘‘(IV) who has not declined the as-
signment;
‘‘(C) shall require each case manager to
improve the capacity of any individual to whom
assigned to assume greater responsibility for
the individual and the family of the individual,
by—
‘‘(i) in the case of an individual re-
ceiving aid under the State plan who is a
182
custodial parent and has not attained 18
years of age, assessing the appropriateness
of the living arrangement of the individual;
‘‘(ii) providing referrals to appropriate
services (such as prenatal care, pre-and
post-partum school reentry, child care,
well-baby care (including immunizations),
and home visits if appropriate) needed for
the individual to complete educational pro-
grams or employment preparation pro-
grams;
‘‘(iii) facilitating paternity establish-
ment through contacts with the putative
father during the mother’s pregnancy, if
appropriate, and if paternity is not estab-
lished at birth, exploring ways to establish
paternity;
‘‘(iv) explaining the rights and respon-
sibilities of such individuals as established
under the State plans approved under this
part and part D, and helping such individ-
uals meet their responsibilities;
‘‘(v) developing and monitoring the
case plan and service provision in order to
183
assess 
progress 
and 
make 
necessary
changes;
‘‘(vi) ensuring that the case plan in-
corporates education, health, and employ-
ment goals during and after the completion
of secondary school or the training pro-
gram, and if the individual is required or
allowed to participate in the program es-
tablished by the State under part F, ensur-
ing that the case plan is the employability
plan for purposes of the State program es-
tablished under part F;
‘‘(vii) attempting to identify the cause
of, and address, any problems that are
causing those of such individuals who are
receiving aid under the State plan to be in
danger of a reduction in aid;
‘‘(viii) recommending to the State
agency that those of such individuals who
are involved in an educational activity pur-
suant to a program established under sec-
tion 482(k) receive bonuses, or that the
State apply sanctions, as appropriate,
under the State plan, or that there be ex-
184
emptions from a requirement imposed by
or under the State plan; and
‘‘(ix) in the case of an individual who
has not attained 20 years of age and is a
parent or pregnant, providing the individ-
ual with health agency information and
family planning materials, and facilitating
appointments with respect to such matters
on request;
‘‘(D) shall, to the extent feasible, require
each case manager to work with such individ-
uals to identify appropriate opportunities for
volunteer activities;
‘‘(E) shall locate case managers in State
offices that administer the State plan, or allow
such offices to subcontract the duties of case
managers to community-based organizations or
other agencies of State government such as
health or education agencies; and
‘‘(F)(i) shall ensure that the case load of
a case manager assigned full-time to teen par-
ent case management does not exceed 65 cases,
and that the average number of cases managed
by such full-time case managers does not exceed
50, and the Secretary shall prescribe regula-
185
tions to address situations in which a case man-
ager works less than full-time with teen par-
ents.’’.
(b) STATE OPTION TO PROVIDE CHILD CARE FOR
TEEN PARENTS WHO PERFORM VOLUNTARY COMMUNITY
SERVICE.—Section 
402(g)(1)(A) 
(42 
U.S.C.
602(g)(1)(A)), as amended by sections 137(a), 140(a),
141, 142, 314(a)(2), and 314(b) of this Act, is amended
by adding at the end the following:
‘‘(xvi) Each State may guarantee child care in ac-
cordance with subparagraph (B) of this paragraph for
each individual required to comply with section 482(k)
who voluntarily engages in community service activities
approved by the State.’’.
Subtitle D—Demonstration
Projects
SEC. 331. ADOLESCENT PREGNANCY PREVENTION GRANTS.
Title XX (42 U.S.C. 1397–1397f) is amended by
adding at the end the following:
‘‘SEC. 
2008. 
ADOLESCENT 
PREGNANCY 
PREVENTION
GRANTS.
‘‘(a) PURPOSE.—The purpose of this section is to en-
courage and provide financial assistance for the develop-
ment of intensive and sustained school-linked and school-
based pregnancy prevention programs for adolescents and
186
their families in areas of high poverty or high unmarried
adolescent birth rates that build upon other Federal,
State, and local pregnancy prevention and youth develop-
ment programs.
‘‘(b) GENERAL AUTHORITY.—Notwithstanding sec-
tion 2005(a)(6), the Secretary, the Secretary of Edu-
cation, and the Chief Executive Officer of the Corporation
for National and Community Service (in this section re-
ferred to as the ‘responsible Federal officials’), in con-
sultation with other relevant Federal agencies, shall jointly
make grants to eligible entities, to carry out programs in
accordance with this section.
‘‘(c) FEDERAL ADMINISTRATION.—
‘‘(1) Notwithstanding the Department of Edu-
cation Organization Act (20 U.S.C. 3401 et seq.)
and the General Education Provisions Act (20
U.S.C. 1221 et seq.), the responsible Federal offi-
cials shall jointly provide for the administration of
this section, and shall jointly issue whatever regula-
tions, procedures, and guidelines, the responsible
Federal officials consider necessary and appropriate
to administer and enforce the provisions of this sec-
tion.
‘‘(2) The responsible Federal officials may enter
into agreements with any other Federal entity with
187
expertise in youth development activities to admin-
ister the program under this section and may pro-
vide such entity with appropriate reimbursement.
‘‘(d) FUNDING.—
‘‘(1) IN GENERAL.—To achieve the purposes of
this section, the responsible Federal officials shall
make grants to eligible entities under subsection (b)
and conduct activities under subsections (m) and (n)
so that in the aggregate the expenditures for such
grants and activities do not exceed $20,000,000 for
fiscal year 1995, $40,000,000 for fiscal year 1996,
$60,000,000 for fiscal year 1997, $80,000,000 for
fiscal year 1998, and $100,000,000 for fiscal year
1999 and each subsequent fiscal year.
‘‘(2) PAYMENTS TO GRANTEES.—Upon approval
by the responsible Federal officials, each grant appli-
cant shall be entitled to payment of at least $50,000
and not more than $400,000 for each fiscal year
based on an assessment by the responsible Federal
officials of the scope and quality of the proposed
program and the number of adolescents to be served
by the program. Payments to a grantee for any fis-
cal year shall be available for expenditure by such
grantee in such fiscal year or the succeeding fiscal
year.
188
‘‘(3) RESERVATION FOR EVALUATION, TRAIN-
ING, 
TECHNICAL
ASSISTANCE, 
AND
NATIONAL
CLEARINGHOUSE.—The responsible Federal officials
shall reserve, with respect to each fiscal year, up to
10 percent of the aggregate amount described in
paragraph (1) for expenditure by the responsible
Federal officials for evaluation, training, and tech-
nical assistance related to the programs under this
section, and for the establishment and operation of
a National Clearinghouse on Adolescent Pregnancy
Prevention Programs under subsection (n).
‘‘(4) EXCESS AMOUNT.—If in any fiscal year
the aggregate amount specified in paragraph (1) for
such fiscal year exceeds the amount required to
carry out approved grant applications and other
functions under paragraph (3), then the amount
specified in section 2003(c)(5) shall be increased by
the excess.
‘‘(e) DEFINITIONS.—As used in this section:
‘‘(1) ADOLESCENTS.—The term ‘adolescents’
means youth who have attained 10 years of age but
have not attained 20 years of age.
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means a partnership that includes—
189
‘‘(A) a local education agency, acting on
behalf of one or more schools, together with
‘‘(B) one or more community-based organi-
zations, institutions of higher education, or
public or private agencies or organizations.
‘‘(3) ELIGIBLE AREA.—The term ‘eligible area’
means a school attendance area in which—
‘‘(A) at least 75 percent of the children are
from low-income families as that term is used
in part A of title I of the Elementary and Sec-
ondary Education Act of 1965;
‘‘(B) the number of children receiving aid
to families with dependent children under a
State plan approved part A of title IV is sub-
stantial as determined by the responsible Fed-
eral officials; or
‘‘(C) the unmarried adolescent birth rate is
high, as determined by the responsible Federal
officials.
‘‘(4) SCHOOL.—The term ‘school’ means a pub-
lic elementary, middle, or secondary school.
‘‘(5) RESPONSIBLE FEDERAL OFFICIALS.—The
term ‘responsible Federal officials’ means the Sec-
retary of Education, the Secretary, and the Chief
190
Executive Officer of the Corporation for National
and Community Service.
‘‘(f) USES OF FUNDS.—Grants under this section—
‘‘(1) shall be used to—
‘‘(A) develop, operate, expand, and improve
a sequential, age-appropriate program of in-
struction and counseling services for adolescents
designed to promote personal responsibility and
a healthy drug free lifestyle, and to prevent ad-
olescent pregnancy, through such activities as
counseling and instruction in the full range of
consequences of premature sexual behavior and
adolescent pregnancy, training in decision-mak-
ing, and activities to promote involvement of
parents and families in adolescent development
and personal responsibility; and
‘‘(B) provide opportunities for youth at-
risk to develop sustained contact with one or
more volunteer or professionally trained adults
to provide character development, through such
activities as mentoring, group coaching, or
after-school activities; and
‘‘(2) may be used to conduct other related ac-
tivities that promote the purposes of this section.
191
‘‘(g) APPLICATION.—Each applicant for a grant
under subsection (b) must submit an application that—
‘‘(1) includes a plan, based on local needs, for
accomplishing the purposes of this section that—
‘‘(A) sets forth specific, measurable goals
intended to be accomplished under the program,
and describes the methods to be used in meas-
uring progress toward accomplishment of such
goals;
‘‘(B) describes the components of the pro-
gram, including—
‘‘(i) the role in the program of any
national service participants supported by
the National and Community Service Act
of 1990 or by any other national service
law as defined in such Act, and
‘‘(ii) the activities, in accordance with
subsection (f), that will be made available
under the program,
and the manner in which such components will
be implemented, including the extent to which
activities will take place after school, on week-
ends, or during the summer;
‘‘(C) describes the manner in which one or
more professional staff will administer the pro-
192
gram, and, where appropriate or feasible, the
manner in which national service participants
will be involved in the development or delivery
of services and in the coordination of during or
after-school activities;
‘‘(2) demonstrates the manner in which the pro-
gram will be based on research concerning effective
means of reducing adolescent pregnancy, including
reducing risk-taking behaviors correlated with ado-
lescent pregnancy;
‘‘(3) demonstrates that the program will serve
male and female adolescents and, where feasible,
out-of-school adolescents, and describes the steps the
applicant will take to serve such adolescents;
‘‘(4) demonstrates the manner in which the ap-
plicant will provide, to the extent feasible, a continu-
ity of services for adolescents through age 19;
‘‘(5) demonstrates the extent to which school
personnel, parents, community organizations, and
the adolescents to be served have participated in the
development of the application and will participate
in the planning and implementation of the program;
‘‘(6) describes the applicant’s partnership, in-
cluding the relationship of the partners, the role of
each partner in the development and implementation
193
of the program, and the manner in which the part-
ners will coordinate their resources;
‘‘(7) describes the nature and scope of commit-
ment to the program by other community institu-
tions, such as religious organizations, community
groups, institutions of higher education, business,
and labor;
‘‘(8) describes the methods to be used in coordi-
nating the provision of services under the program
with the provision of services or benefits under other
Federal or federally assisted programs, State and
local programs, and private programs serving the
same population;
‘‘(9) demonstrates that the area to be served is
an eligible area;
‘‘(10) contains assurances that at least one ac-
tivity will be located in a school in the area to be
served and describes the activities that will be
school-based;
‘‘(11) contains assurances that the amounts
provided under this section will not be used to sup-
plant Federal, State, or local funds for services and
activities that promote the purposes of this section;
‘‘(12) contains assurances that the applicant
will provide a non-Federal share, in cash or in kind,
194
of at least 20 percent of the cost of carrying out the
approved program;
‘‘(13) describes the applicant’s plan for continu-
ation of the program following completion of the
grant period and termination of Federal support
under this section;
‘‘(14) contains assurances that the applicant
will furnish such reports, containing such informa-
tion, and participate in such evaluations, as the re-
sponsible Federal officials may require; and
‘‘(15) includes such other information and as-
surances as the responsible Federal officials may
reasonably require.
‘‘(h) PRIORITIES.—In making awards under this sec-
tion, the responsible Federal officials shall give priority to
applicants that—
‘‘(1) provide for non-Federal resources signifi-
cantly in excess of those required in subsection
(g)(12) or for an increasing ratio of non-Federal re-
sources over the term of the grant; and
‘‘(2) participate in other Federal and non-Fed-
eral programs that relate to the purposes of this sec-
tion.
‘‘(i) TREATMENT
AS NON-FEDERAL SHARE.—For
purposes of the National and Community Service Act of
195
1990, the funds provided to a grantee under this section
shall not be considered Federal funds.
‘‘(j) PROHIBITION ON USE OF FUNDS.—No assist-
ance made available under this section shall be used to
provide religious instruction, to conduct worship services,
or to promote any religious view or teaching in any man-
ner.
‘‘(k) GEOGRAPHIC
DIVERSITY.—The responsible
Federal officials shall, to the extent feasible, ensure that
applications are approved from both urban and rural areas
and reflect nationwide geographic diversity.
‘‘(l) APPLICATION PERIOD.—An application approved
under this section shall be for a term of 5 years; except
that approval may be terminated before the end of such
period if the responsible Federal officials determine that
the grantee conducting the program has failed substan-
tially to carry out the program as described in the ap-
proved application.
‘‘(m) EVALUATION, TRAINING, AND TECHNICAL AS-
SISTANCE.—
‘‘(1) EVALUATION.—The responsible Federal
officials shall evaluate the effectiveness of programs
conducted under this section, directly or by grant or
contract, and may require each grantee conducting
such a program to provide such information as the
196
responsible Federal officials determine is necessary
for such evaluations.
‘‘(2) TRAINING AND TECHNICAL ASSISTANCE.—
The responsible Federal officials may provide train-
ing and technical assistance with respect to the de-
velopment, implementation, or operation of programs
under this section.
‘‘(3) COORDINATION
WITH
NATIONAL
CLEAR-
INGHOUSE.—The responsible Federal officials shall
coordinate the activities conducted under this sub-
section with the activities conducted by the National
Clearinghouse on Adolescent Pregnancy Prevention
Programs under subsection (n).
‘‘(n) NATIONAL CLEARINGHOUSE ON ADOLESCENT
PREGNANCY.—
‘‘(1) ESTABLISHMENT.—The responsible Fed-
eral officials shall establish, through grant or con-
tract, a national center for the collection and provi-
sion of programmatic information and technical as-
sistance that relates to adolescent pregnancy preven-
tion programs, to be known as the ‘National Clear-
inghouse on Adolescent Pregnancy Prevention Pro-
grams’.
‘‘(2) FUNCTIONS.—The national center estab-
lished under paragraph (1) shall serve as a national
197
information and data clearinghouse, and as a train-
ing, technical assistance, and material development
source for adolescent pregnancy prevention pro-
grams. Such center shall—
‘‘(A) develop and maintain a system for
disseminating information on all types of ado-
lescent pregnancy prevention program and on
the state of adolescent pregnancy prevention
program development, including information
concerning the most effective model programs;
‘‘(B) develop and sponsor a variety of
training institutes and curricula for adolescent
pregnancy prevention program staff;
‘‘(C) identify model programs representing
the various types of adolescent pregnancy pre-
vention programs;
‘‘(D) develop technical assistance materials
and activities to assist other entities in estab-
lishing and improving adolescent pregnancy
prevention programs;
‘‘(E) develop networks of adolescent preg-
nancy prevention programs for the purpose of
sharing and disseminating information; and
‘‘(F) conduct such other activities as the
responsible Federal officials find will assist in
198
developing and carrying out programs or activi-
ties to reduce adolescent pregnancy.’’.
SEC. 332. DEMONSTRATION PROJECTS TO PROVIDE COM-
PREHENSIVE SERVICES TO PREVENT ADO-
LESCENT PREGNANCY IN HIGH-RISK COMMU-
NITIES.
Title XX (42 U.S.C. 1397–1397f), as amended by
section 331 of this Act, is amended by adding at the end
the following:
‘‘SEC. 2009. DEMONSTRATION PROJECTS TO PROVIDE COM-
PREHENSIVE SERVICES TO PREVENT ADO-
LESCENT PREGNANCY IN HIGH-RISK COMMU-
NITIES.
‘‘(a)(1) PURPOSE.—In order to stimulate the develop-
ment of innovative approaches for the effective delivery of
comprehensive services, with particular emphasis on preg-
nancy prevention, to certain youth and their families in
high-risk communities and the promotion of community
involvement in improving the environment in which such
youth live, the Secretary shall conduct demonstration
projects in accordance with this section.
‘‘(2) APPROVAL OF PROJECTS.—The Secretary, in
consultation with the Secretary of Education, the Sec-
retary of Housing and Urban Development, the Attorney
General, the Director of the Office of National Drug Con-
199
trol Policy, and the Secretary of Labor, shall approve at
least 5 and not more than 7 projects, in accordance with
subsection (c). Upon approval by the Secretary, each
project applicant shall be entitled to payment of up to
$3,600,000 for each of fiscal years 1995 through 1999
for the purpose of conducting approved demonstration
projects.
‘‘(b) FUNDING.—
‘‘(1) IN GENERAL.—There shall be made avail-
able to the Secretary not to exceed $20,000,000 for
each of fiscal years 1995 through 1999 for carrying
out the projects under this section. Payments to a
grantee for any fiscal year must be expended by the
grantee in such fiscal year or the succeeding fiscal
year.
‘‘(2) EVALUATION, TRAINING, AND TECHNICAL
ASSISTANCE.—The Secretary shall reserve, with re-
spect to each fiscal year, 10 percent of the amount
described in paragraph (1) for expenditure by the
Secretary for training and technical assistance relat-
ed to the demonstration projects under this section
and for evaluation of such projects. The amount so
reserved shall remain available for obligation
through fiscal year 1999.
200
‘‘(3) EXCESS AMOUNTS.—If in any fiscal year
the amount specified in paragraph (1) of this sub-
section for such fiscal year exceeds the amount re-
quired to carry out approved projects and evalua-
tion, training, and technical assistance under this
section, then the amount specified in section
2003(c)(5) shall be increased by the excess.
‘‘(c) APPLICATION; ELIGIBILITY CRITERIA.—A local
public or private nonprofit organization, including a unit
of government, or any combination of such entities, shall
be eligible to submit a project application. In order that
an application be approved under subsection (a), the appli-
cation must—
‘‘(1) demonstrate that the geographic area to be
served by the project satisfies the following criteria:
‘‘(A) it includes a population of 20,000 to
35,000 residents,
‘‘(B) it has an identifiable boundary and is
recognizable as a community by its residents,
and
‘‘(C) within the community, there is a pov-
erty rate of not less than 20 percent;
‘‘(2) include a plan for accomplishing the pur-
poses of this section that—
201
‘‘(A) describes the comprehensive, inte-
grated services, in accordance with subsection
(e), that will be made available under the
project;
‘‘(B)(i) sets forth the goals intended to be
accomplished under the project, and
‘‘(ii) describes the methods to be used in
measuring progress toward accomplishment of
such goals and the outcomes to be measured,
including unmarried adolescent birth rates,
rates of youth alcohol and drug use, rates of
youth violence, high school graduation rates,
and such other outcomes as the Secretary finds
appropriate;
‘‘(C) describes the process by which the af-
fected community (including parents, the youth
to be served, schools, local government, religious
organizations, community groups, business, and
labor) is a full partner in the process of devel-
oping and implementing the project and the ex-
tent to which parents, the youth to be served,
and local institutions and organizations have
contributed to the planning process;
‘‘(D) identifies the private and public part-
nerships to be used;
202
‘‘(E) describes the methods to be used in
coordinating the provision of services under the
project and the provision of services or benefits
under other Federal or federally assisted pro-
grams, State and local programs, and private
programs serving the same population; and
‘‘(F) describes the manner in which other
Federal funds and non-Federal funds will be
used to further the purpose of the program;
‘‘(3) demonstrate strong State and local govern-
ment commitment to the project and involvement in
the planning and implementation of the project;
‘‘(4) demonstrate the ability of the applicant to
carry out the project;
‘‘(5) describe the methods to be used for main-
taining accurate records regarding the activities car-
ried out with funds under this section;
‘‘(6) contain assurances that the amounts pro-
vided under this section will not be used to supplant
Federal, State, and local funds for services and ac-
tivities that promote the purposes of this section;
‘‘(7) contain assurances that the applicant will
provide a non-Federal share, in cash or in kind, of
10 percent of the cost of carrying out the approved
203
project and describe the capacity of the applicant to
provide the non-Federal share;
‘‘(8) contain assurances that the applicant will
furnish such reports, containing such information,
and participate in such evaluations, as the Secretary
may require; and
‘‘(9) include such other information as the Sec-
retary may require.
‘‘(d) PRIORITY.—In making awards under this sec-
tion, the Secretary shall give priority to applicants that
provide for non-Federal resources significantly in excess
of those required in subsection (c)(7).
‘‘(e) USE OF GRANTS.—Under each demonstration
project conducted under this section, the grantee shall de-
velop a community-wide strategy to address the causes
and factors of risk-taking tendencies among youth, to
positively affect community norms, to increase community
health and safety, and to generally improve the social envi-
ronment to enhance the life choice of community youth.
The strategy shall be used to provide a comprehensive set
of coordinated services designed to saturate the commu-
nity and shall include, but not be limited to, the following
areas:
‘‘(1) Health education and access services de-
signed to promote physical and mental well-being
204
and personal responsibility (with particular emphasis
on pregnancy prevention), such as school health
services, family planning services, alcohol and drug
abuse prevention services and referral for treatment,
life skills training, and decision-making skills train-
ing.
‘‘(2) Educational and employability development
services designed to promote educational advance-
ment leading to a high school diploma or its equiva-
lent and opportunities for high skill, high wage job
attainment and productive employment, to establish
a lifelong commitment to learning and achievement,
and to increase self-confidence, such as academic tu-
toring, literacy training, drop-out prevention pro-
grams, career and college counseling, mentoring pro-
grams, job skills training, apprenticeships, and part-
time paid work opportunities.
‘‘(3) Social support services designed to provide
youth with a stable environment, opportunities for a
sustained relationship with one or more adults, and
opportunities for participation in safe and productive
activities, such as cultural, recreational and sports
activities, leadership development, peer counseling
and 
crisis 
intervention, 
mentoring 
programs,
parenting skills training, and family counseling.
205
‘‘(4) Community activities designed to improve
community stability, and to encourage youth to par-
ticipate in community service and establish a stake
in the community, such as community policing, com-
munity service programs, community activities in
partnership with less distressed neighborhoods, local
media campaigns, and establishment of community
advisory councils with youth representation.
‘‘(5) Employment opportunity development ac-
tivities designed to be coordinated with educational
and employability development services, social sup-
port services, and community activities described in
paragraphs (2) through (4). Emphasis shall be on
development of linkages with employers within and
outside the community to help create employment
opportunities and foster an understanding by com-
munity youth of the relationship between productive
employment, healthy development, and sound life
choices.
‘‘(f) EVALUATION, TRAINING, AND TECHNICAL AS-
SISTANCE.—
‘‘(1) EVALUATION.—The Secretary shall evalu-
ate the effectiveness of each demonstration project
conducted under this section and may require each
grantee conducting such a project to provide such
206
information as the Secretary determines is necessary
for such evaluations.
‘‘(2) TRAINING AND TECHNICAL ASSISTANCE.—
The Secretary shall provide training and technical
assistance with respect to the development, imple-
mentation, or operation of projects under this sec-
tion.
‘‘(3) COORDINATION
WITH
NATIONAL
CLEAR-
INGHOUSE.—The Secretary shall coordinate the ac-
tivities conducted under this subsection with activi-
ties conducted by the National Clearinghouse on Ad-
olescent Pregnancy Prevention Programs under sec-
tion 2008(n).
‘‘(g) 
FUNDING
PERIOD.—Each 
demonstration
project supported under this section shall be conducted for
a 5-year period; except that the Secretary may terminate
a project before the end of such period if the Secretary
determines that the grantee conducting the project has
failed substantially to carry out the project as described
in the approved application.
‘‘(h) DEFINITIONS AND SPECIAL RULES.—As used in
this section:
‘‘(1) YOUTH.—The term ‘youth’ means an indi-
vidual who has attained 10 years of age but has not
attained 22 years of age.
207
‘‘(2) USE OF CENSUS DATA.—Population and
poverty rate shall be determined by the most recent
decennial census data available.’’.
TITLE IV—WAIVERS
SEC. 401. FUNDING FOR WAIVERS THAT ARE NOT COST
NEUTRAL.
(a) IN GENERAL.—Section 1115 (42 U.S.C. 1315)
is amended by adding at the end the following:
‘‘(e)(1) Any State seeking a waiver under subsection
(a) of this section of compliance with a requirement of
section 402 may apply to the Secretary for the waiver,
and the Secretary may approve the waiver, without regard
to the cost neutrality of the waiver, and for payment of—
‘‘(A) a percentage of State expenditures to
carry out the activities under the waiver that is
greater than the otherwise applicable percentage of
such expenditures for which payment otherwise may
be made;
‘‘(B) 90 percent of the cost of evaluating activi-
ties pursuant to applications approved under this
subsection.
‘‘(2)(A) After appropriate consultation with the Con-
gress, the States, and representatives of interested groups,
the Secretary shall annually issue an announcement of the
availability of Federal funds to assist in operating State
208
programs pursuant to waivers issued under this sub-
section, specify a timeframe within which applications for
such waivers may be submitted, and specify areas of par-
ticular Federal interest with respect to such waivers.
‘‘(B) At the end of the annual period for submitting
applications under this subsection, the Secretary shall
publish in the Federal Register a notice that—
‘‘(i) describes the waivers proposed in applica-
tions so submitted, including estimated costs; and
‘‘(ii) provides for a period during which mem-
bers of the public may comment on the applications.
‘‘(C) The Secretary may not approve an application
submitted under this subsection before the end of the com-
ment period provided pursuant to subparagraph (B)(ii)
with respect to the application.
‘‘(3) The Secretary shall establish an advisory com-
mittee to review and comment on pending applications
under this subsection.
‘‘(4) For waivers under this subsection, there are au-
thorized to be appropriated to the Secretary not more
than—
‘‘(A) $100,000,000 for fiscal year 1996;
‘‘(B) $200,000,000 for fiscal year 1997;
‘‘(C) $300,000,000 for fiscal year 1998; and
‘‘(D) $400,000,000 for fiscal year 1999.’’.
210
(d) PROHIBITION AGAINST WAIVERS RESULTING IN
REDUCTION
IN AFDC PAYMENTS.—Section 1115 (42
U.S.C. 1315), as amended by subsections (a), (b), and (c)
of this section, is amended by adding at the end the follow-
ing:
‘‘(h)(1) Notwithstanding any other provision of this
section, the Secretary may not issue a waiver under this
section that provides for reduction of the levels at which
aid is payable to a family under a State plan approved
under part A of title IV, unless the reduction is to be im-
posed for failure without good cause to comply with a rule
imposed under the State program operated under part A
or F of title IV.
‘‘(2) Any reduced expenditures resulting from the re-
duction by a State of the levels at which aid to families
with dependent children is payable shall not be considered
in determining whether granting the waiver would be cost-
neutral to the Federal Government.’’.
TITLE V—IMPROVING
GOVERNMENT ASSISTANCE
Subtitle A—AFDC Amendments
SEC. 501. REQUIREMENT THAT NEEDS STANDARDS RE-
FLECT THE COST OF ESSENTIAL ITEMS.
Section 402(h)(1) (42 U.S.C. 602(h)(1)) is amended
to read as follows:
211
‘‘(h)(1) Each State shall—
‘‘(A) identify clearly the items provided for in
the State’s standard of need to meet basic needs, the
items provided for in the State’s standard of need to
meet special needs, and the amount allowed for each
such item;
‘‘(B) not less frequently than every 3 years, in
accordance with a schedule established by the Sec-
retary, reexamine the basis for such allowances in
the State’s standard of need, including whether the
items provided for are sufficient to meet all essential
needs and whether the allowances for the items re-
flect prevailing prices; and
‘‘(C) report to the Secretary and the public (at
such time and in such form and manner as the Sec-
retary may require) the conclusions resulting from
the reexamination, any changes that the State is
considering making in the standard of need as a re-
sult of the reexamination, and an explanation of how
the reexamination was conducted.’’.
SEC. 502. MAINTENANCE OF MINIMUM BENEFIT LEVELS.
(a) IN
GENERAL.—Section 402(a) (42 U.S.C.
602(a)), as amended by sections 104, 138, and 321(a) of
this Act, is amended—
212
(1) by striking ‘‘and’’ at the end of paragraph
(47);
(2) by striking the period at the end of para-
graph (48) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (48) the fol-
lowing:
‘‘(49) provide that the maximum amount of aid
payable for any month to a family under the State
plan shall not be reduced below the maximum
amount of aid payable under the State plan in effect
for October 1994 to a family of the same size.’’.
SEC. 503. OPTIONAL SUPPLEMENTATION OF BENEFITS FOR
FAMILIES 
SUBJECT 
TO 
RETROSPECTIVE
BUDGETING.
(a) IN GENERAL.—Section 402(a)(13) (42 U.S.C.
602(a)(13)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (A);
(2) by adding ‘‘and’’ at the end of subpara-
graph (B); and
(3) by adding at the end the following:
‘‘(C) the State may increase the amount of
aid otherwise payable under the State plan to
a family to whom the State applies this para-
graph for any month if, due to changed cir-
213
cumstances, the sum of such otherwise payable
aid and the other income of the family for the
month would be less than the maximum amount
of aid otherwise payable under the State plan to
a family of the same size;’’.
(b) CONFORMING AMENDMENT.—Section 403(a) (42
U.S.C. 603(a)) is amended by striking the 2nd sentence.
SEC. 504. INCOME DISREGARDS.
(a) STUDENT EARNINGS.—
(1) IN GENERAL.—Section 402(a)(8)(A)(i) (42
U.S.C. 602(a)(8)(A)(i)) is amended by striking ‘‘de-
pendent child’’ and all that follows and inserting
‘‘individual who has not attained 20 years of age
and is an elementary or secondary school student’’.
(2) 
CONFORMING
AMENDMENTS.—Section
402(a) (42 U.S.C. 602(a)) is amended—
(A) in paragraph (8)(A)(vii)—
(i) by striking ‘‘a dependent child who
is a full-time student’’ and inserting ‘‘an
individual who has not attained 20 years of
age, who is an elementary or secondary
school student or is participating in a pro-
gram intended to lead to a certificate of
high school equivalency or in other State-
approved education or training in accord-
214
ance with an employability plan developed
under section 482(b),’’; and
(ii) by striking ‘‘such child’’ and in-
serting ‘‘the individual’’; and
(B) in paragraph (18), by striking ‘‘of a
dependent child who’’ and inserting ‘‘of an indi-
vidual who has not attained 20 years of age
and’’.
(b) TRAINING STIPENDS.—Section 402(a)(8)(A)(v)
(42 U.S.C. 602(a)(8)(A)(v)) is amended to read as follows:
‘‘(v) shall disregard from the income of
any individual applying for or receiving aid to
families with dependent children any amount
received as a stipend or allowance under the
Job Training Partnership Act or under any
other training or similar program;’’.
(c) LUMP-SUM INCOME.—
(1) IN
GENERAL.—Section 402(a)(8)(A) (42
U.S.C. 602(a)(8)(A)), as amended by section 312(b)
of this Act, is amended—
(A) by striking ‘‘and’’ at the end of clause
(viii); and
(B) by adding at the end the following:
‘‘(x) shall disregard from the income of
any family member any amounts of income re-
215
ceived in the form of nonrecurring lump-sum
payments;’’.
(2) 
REPEAL.—Section 
402(a) 
(42 
U.S.C.
602(a)) is amended by striking paragraph (17).
(d) 
EDUCATIONAL
ASSISTANCE.—Section
402(a)(8)(A) (42 U.S.C. 602(a)(8)(A)), as amended by
section 312(b) of this Act and subsection (c)(1) of this
section, is amended—
(1) by striking ‘‘and’’ at the end of clause (ix);
and
(2) by adding at the end the following:
‘‘(xi) shall disregard all educational assist-
ance provided to a family member;’’.
(e) IN-KIND INCOME.—Section 402(a)(8)(A) (42
U.S.C. 602(a)(8)(A)), as amended by section 312(b) of
this Act and subsections (c)(1) and (d) of this section, is
amended—
(1) by striking ‘‘and’’ at the end of clause (x);
and
(2) by adding at the end the following:
‘‘(xii) shall disregard all in-kind income
provided to a family member;’’.
(f) BENEFITS UNDER THE NATIONAL AND COMMU-
NITY SERVICE ACT.—Section 402(a)(8)(A) (42 U.S.C.
602(a)(8)(A)), as amended by section 312(b) of this Act
217
standard of need applicable to the family in-
volved and the State’s payment amount for a
family of the same size with no other income;’’.
SEC. 505. INCREASE IN RESOURCE LIMIT.
Section 402(a)(7)(B) (42 U.S.C. 602(a)(7)(B)) is
amended by striking ‘‘$1000 or such lower amount as the
State may determine’’ and inserting ‘‘$2000 (or, in the
case of a family with a member who has attained 60 years
of age, $3000)’’.
SEC. 506. EXCLUSIONS FROM RESOURCES.
(a) LIFE INSURANCE.—Section 402(a)(7)(B)(ii) (42
U.S.C. 602(a)(7)(B)(ii)) is amended by striking ‘‘and fu-
neral agreements’’ and inserting ‘‘funeral agreements, and
the cash value of life insurance policies,’’.
(b) REAL PROPERTY WHICH MUST BE DISPOSED
OF.—Section 
402(a)(7)(B)(iii) 
(42 
U.S.C.
602(a)(7)(B)(iii)) is amended to read as follows: ‘‘(iii) real
property which the family is making a good faith effort
to dispose of at a reasonable price, or’’.
(c) EXCLUSION
OF
EITC PAYMENTS.—Section
402(a)(7)(B)(iv) (42 U.S.C. 602(a)(7)(B)) is amended—
(1) by inserting ‘‘12-month period that begins
with’’ before ‘‘the month of receipt’’; and
(2) by inserting ‘‘and any lump-sum payment of
State earned income tax credits and any payments
218
described in this clause are deemed to be expended
before other resources that are so included’’ before
the semicolon.
(d) LUMP-SUM PAYMENTS FOR MEDICAL EXPENSES
OR
REPLACEMENT
OF
LOST
RESOURCES.—Section
402(a)(7)(B) (42 U.S.C. 602(a)(7)(B)), as amended by
subsections (b) and (c) of this section, is amended—
(1) by striking ‘‘or’’ at the end of clause (iii);
and
(2) by inserting ‘‘, or (v) for the month of re-
ceipt and the following 11-month period, amounts
that have been paid as reimbursement (or payment
in advance) for medical expenses or for the cost of
repairing or replacing resources of the family’’ be-
fore the semicolon.
(e) RESOURCES FOR SELF-EMPLOYMENT.—Section
402(a)(7)(B) (42 U.S.C. 602(a)(7)(B)), as amended by
subsections (b), (c), and (d) of this section, is amended—
(1) by striking ‘‘or’’ at the end of clause (v);
and
(2) by inserting ‘‘, or (vii) liquid and nonliquid
resources that are or will be used for the self-em-
ployment of a family member, to the extent and
under the circumstances allowed by the State agency
in accordance with regulations issued by the Sec-
219
retary after consultation with the Secretary of Agri-
culture’’ before the semicolon.
SEC. 507. VERIFICATION OF STATUS OF CITIZENS AND
ALIENS.
Section 1137(d) (42 U.S.C. 1320b–7(d)) is amended
by adding at the end the following:
‘‘(6) A State is deemed to meet the require-
ments of paragraph (1) with respect to the eligibility
of each member of a family applying for aid under
the State plan approved under part A of title IV, if
the State requires, as a condition for such eligibility,
a declaration in writing by an adult member of the
family, under penalty of perjury, that each family
member is a citizen of the United States or an alien
eligible for aid under the State plan (and, with re-
spect to a child born into a family receiving such
aid, the declaration must be made no later than the
next redetermination of the eligibility of the family
after the birth of the child).’’.
SEC. 508. CALCULATION OF 185 PERCENT OF NEED STAND-
ARD.
Section 402(a)(18) (42 U.S.C. 602(a)(18)) is amend-
ed by striking ‘‘without application’’ and all that follows
through ‘‘exceeds’’ and inserting ‘‘after applying clauses
(v), (viii), (x), (xi), (xii), and (xiii) of paragraph (8)(A)’’.
220
SEC. 509. PAYMENTS TO THE TERRITORIES.
(a) IN
GENERAL.—Section 1108(a) (42 U.S.C.
1308(a)) is amended in the 1st sentence by striking all
that follows ‘‘—’’ and inserting the following:
‘‘(1) for payment to Puerto Rico shall not ex-
ceed—
‘‘(A) $82,000,000 with respect to fiscal
years 1994, 1995, and 1996; and
‘‘(B) $102,500,000 for fiscal year 1997,
and $102,500,000 (adjusted pursuant to sub-
section (f)) for each fiscal year thereafter;
‘‘(2) for payment to the Virgin Islands shall not
exceed—
‘‘(A) $2,800,000 with respect to fiscal
years 1994, 1995, and 1996; and
‘‘(B) $3,500,000 for fiscal year 1997, and
$3,500,000 (adjusted pursuant to subsection
(f)) for each fiscal year thereafter; and
‘‘(3) for payment to Guam shall not exceed—
‘‘(A) $3,800,000 with respect to fiscal year
1994, 1995, and 1996; and
‘‘(B) $4,750,000 for fiscal year 1997, and
$4,750,000 (adjusted pursuant to subsection
(f)) for each fiscal year thereafter.’’.
221
(b) INFLATION
ADJUSTMENT.—Section 406 (42
U.S.C. 606) is amended by adding at the end the follow-
ing:
‘‘(f) The Secretary shall adjust each dollar amount
required to be adjusted pursuant to this subsection for any
fiscal year by—
‘‘(1) multiplying the amount by the ratio of—
‘‘(A) the Consumer Price Index (as pre-
pared by the Department of Labor) for the 3rd
quarter of the calendar year in which the fiscal
year begins, to
‘‘(B) the Consumer Price Index for the 3rd
quarter of calendar year 1996; and
‘‘(2) rounding the product, if not a multiple of
$10,000, to the nearer multiple of $10,000.’’.
Subtitle B—Food Stamp Act
Amendments
SEC. 511. INCONSEQUENTIAL INCOME.
Section 5(d)(2) of the Food Stamp Act of 1977 (7
U.S.C. 2014(d)(2)) is amended to read as follows: ‘‘(2)
any inconsequential payments, as defined by the Sec-
retary, received during the certification period, but not to
exceed a total of such payments of $30 per household
member in any quarter, whether the household’s income
is calculated on a prospective or retrospective basis,’’.