I
103D CONGRESS
2D SESSION
H. R. 4793
To amend part A of title IV of the Social Security Act to offer States
the option of replacing the Job Opportunities and Basic Skills Training
(JOBS) program with a program that would assist all recipients of
aid to families with dependent children in achieving self-sufficiency, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 19, 1994
Mr. ORTON introduced the following bill; which was referred jointly to the
Committees on Ways and Means, Education and Labor, Energy and
Commerce, and Agriculture
A BILL
To amend part A of title IV of the Social Security Act
to offer States the option of replacing the Job Opportuni-
ties and Basic Skills Training (JOBS) program with
a program that would assist all recipients of aid to
families with dependent children in achieving self-
sufficiency, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Self-Sufficiency Act
of 1994’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—SELF-SUFFICIENCY PROGRAM
Sec. 101. Establishment and operation of program.
Sec. 102. Child care guaranteed to participants in State self-sufficiency
programs.
Sec. 103. Increased Federal matching rates for child care provided by States
with self-sufficiency programs.
Sec. 104. Elimination of requirement that families in States with self-sufficency
programs have received AFDC for a minimum period before
becoming eligible for transitional medicaid benefits or transi-
tional child care benefits.
Sec. 105. Eligibility for transitional medicaid benefits and transitional child
care benefits in States with self-sufficency programs without
regard to type of income that would otherwise result in ineli-
gibility for benefits.
Sec. 106. Elimination of certain exceptions from requirement that minor par-
ents and pregnant minors without children live with responsible
adult in States with self-sufficiency programs.
TITLE II—OTHER PROVISIONS
Sec. 201. Disregard of persons who become family members after initial receipt
of AFDC.
Sec. 202. Enhanced payments for participants in the self-sufficiency program.
Sec. 203. Diversion payments.
Sec. 204. Aid to families without regard to the number of parents in the home.
Sec. 205. 2-parent families ineligible for AFDC until 30 days after loss of
employment.
Sec. 206. Increase in earned income disregard and elimination of time limita-
tion on earned income disregard.
Sec. 207. Increase in asset limitations.
Sec. 208. Amendments to the Food Stamp Act of 1977.
TITLE III—RELATED AMENDMENTS
Sec. 301. Denial of welfare benefits to aliens.
Sec. 302. Inclusion in consumer credit reports of information on overdue child
support obligations of the consumer.
Sec. 303. Quarterly payments of earned income credit.
TITLE IV—EFFECTIVE DATE
Sec. 401. Effective date.
TITLE I—SELF-SUFFICIENCY
PROGRAM
SEC. 101. ESTABLISHMENT AND OPERATION OF PROGRAM.
(a) 
STATE
PLAN
REQUIREMENT.—Section
402(a)(29) of the Social Security Act is amended to read
as follows:
‘‘(29) at the option of the State, in lieu of the
requirements of paragraph (19) and part F, provide
that—
‘‘(A) the State has in effect and operation
a self-sufficiency program which meets the re-
quirements of part G;
‘‘(B)(i) not later than the end of the 3-
year period that begins on the date the Sec-
retary first approves the State plan under part
G, the State shall require not less than 30 per-
cent of the recipients of aid under the State
plan (selected by the State in accordance with
such criteria as the State establishes in regula-
tions) to participate in the program;
‘‘(ii) not later than the end of the 5-year
period that begins on the date the Secretary
first approves the State plan under part G, the
State shall require not less than 50 percent of
the recipients of aid under the State plan (se-
lected by the State in accordance with such cri-
teria as the State establishes in regulations) to
participate in the program;
‘‘(iii) not later than the end of the 8-year
period that begins on the date the Secretary
first approves the State plan under part G, the
State shall require not less than 75 percent of
the recipients of aid under the State plan (se-
lected by the State in accordance with such cri-
teria as the State establishes in regulations) to
participate in the program; and
‘‘(iv) not later than the end of the 10-year
period that begins on the date the Secretary
first approves the State plan under part G, the
State shall, except as provided in subparagraph
(C), require each recipient of aid under the
State plan to participate in the program;
‘‘(C) the State may not require an individ-
ual to participate in the program—
‘‘(i) during a period described in
clause (i), (ii), or (iii) of subparagraph (B),
if the individual resides in an area of the
State where the program is not available;
or
‘‘(ii) if the individual is unable to
meaningfully participate in the program
due to a physical or psychological condi-
tion; and
‘‘(D) the amount of aid otherwise payable
under the State plan to a family that includes
an individual who fails without good cause to
participate in the program, comply with any
term or condition of the self-sufficiency plan de-
veloped for the individual, or accept a bona fide
offer of employment shall be reduced by—
‘‘(i) 25 percent for the 1st month of
such failure; and
‘‘(ii) such equal increments for each of
the next 24 months of such failure as will
result in no benefit at the end of such 24-
month period;’’.
(b) ESTABLISHMENT
AND
OPERATION
OF
PRO-
GRAM.—Title IV of such Act (42 U.S.C. 601–687) is
amended by adding at the end the following:
‘‘PART G—SELF-SUFFICIENCY PROGRAM
‘‘SEC. 491. PURPOSE AND DEFINITIONS.
‘‘(a) PURPOSE.—The purpose of this part is to assist
needy families with children in becoming self-sufficient.
‘‘(b) DEFINITIONS.—Except to the extent otherwise
provided, each term used in this part shall have the same
meaning given the term in or under part A.
‘‘SEC. 492. ESTABLISHMENT AND OPERATION OF STATE
PROGRAMS.
‘‘(a) GENERAL REQUIREMENTS.—
‘‘(1) STATE PLAN REQUIRED.—
‘‘(A) IN GENERAL.—Each State that is not
operating a program under part F may estab-
lish and operate a self-sufficiency program (in
this part referred to as the ‘program’) under a
plan approved by the Secretary as meeting the
requirements 
of 
this 
part 
and 
section
402(a)(29).
‘‘(B) CONTENTS.—The plan referred to in
subparagraph (A) for the program shall—
‘‘(i) describe how the State intends to
implement the program during the period
covered by the plan;
‘‘(ii) indicate, through cross-references
to the appropriate provisions of this part
and part A, that the program will be oper-
ated in accordance with such provisions of
law;
‘‘(iii) contain an estimate of the num-
ber of persons to be served by the pro-
gram;
‘‘(iv) describe the services to be pro-
vided within the State and the political
subdivisions thereof, the needs to be ad-
dressed through the provision of such serv-
ices, the extent to which such services are
expected to be made available by other
agencies on a nonreimbursable basis, the
extent to which such services are to be pro-
vided or funded by the program, and the
way in which caseworkers are to be re-
trained to aid in the development of self-
sufficiency plans for participants in the
program;
‘‘(v) contain such additional informa-
tion as the Secretary may require by regu-
lation to enable the Secretary to determine
that the State program will meet the re-
quirements of this part and part A.
‘‘(C) UPDATES.—Not less frequently than
every 2 years after the Secretary first approves
a State plan under this part, the State shall re-
view and update the plan in accordance with
regulations prescribed by the Secretary, and
submit to the Secretary the updated plan for
approval.
‘‘(2) ADMINISTRATION.—The State agency that
administers or supervises the administration of the
State’s plan approved under section 402 shall be re-
sponsible for the administration or supervision of the
administration of the State’s program.
‘‘(3) NO
SUPPLANTATION
OF
NON-FEDERAL
FUNDS.—Federal funds made available to a State
for purposes of the program shall not be used to
supplant non-Federal funds for existing services and
activities which promote the purpose of this part.
‘‘(4) REPORTS.—Each State that establishes a
self-sufficiency program under this part shall submit
to the Secretary on a quarterly basis, a report on—
‘‘(A) the number of participants in the
program;
‘‘(B) the number of such participants who
are employed on a full-time basis;
‘‘(C) the number of such participants who
are employed on a part-time basis; and
‘‘(D) the number of participants in the
program who have become ineligible for aid to
families with dependent children during the pre-
ceding year by reason of excessive earnings.
‘‘(b) CONSULTATION.—The Secretary shall consult
with the Secretary of Labor on general plan requirements
and on criteria to be used in approving State plans under
this section.
‘‘SEC. 493. ASSESSMENT AND REVIEW OF NEEDS AND
SKILLS 
OF 
PARTICIPANTS; 
SELF-
SUFFICIENCY PLANS.
‘‘(a) ASSESSMENT.—The State agency must make an
initial assessment of the educational, child care, and other
supportive services needs as well as the skills, prior work
experience, and employability of each participant in the
program under this part, including a review of the family
circumstances and the needs of any child of the
participant.
‘‘(b) SELF-SUFFICIENCY PLAN.—On the basis of the
assessment made with respect to a participant under sub-
section (a), the State agency, in consultation with the par-
ticipant, shall develop a self-sufficiency plan for the partic-
ipant, which—
‘‘(1) explains the services (including child care
and other supportive services) that will be provided
by the State agency and the activities in which the
participant will take part under the program;
‘‘(2) shall not require the participant to be en-
gaged in such activities for an unreasonable amount
of time each week;
‘‘(3) sets forth an employment goal for the par-
ticipant, that, to the maximum extent possible and
consistent with this section, reflects the preferences
of the participant;
‘‘(4) takes into account the participant’s sup-
portive services needs, available program resources,
and local employment opportunities; and
‘‘(5) shall not be considered a contract.
‘‘(c) AGREEMENT TO SELF-SUFFICIENCY PLAN.—
After a self-sufficiency plan has been developed under sub-
section (b) with respect to a participant, the State agency
shall—
‘‘(1) require the participant (or the adult care-
taker in the family of which the participant is a
member) to negotiate and enter into an agreement
with the State agency that specifies such matters as
the participant’s obligations under the program, the
duration of participation in the program, and the ac-
tivities to be conducted and the services to be pro-
vided in the course of such participation; and
‘‘(2) give the participant such assistance as the
participant may require in reviewing and under-
standing the agreement.
‘‘(d) AUTHORITY TO ASSIGN CASE MANAGERS.—The
State agency may assign to each participant in the pro-
gram and the participant’s family a case manager who is
responsible for assisting the family to obtain any services
which may be needed to assure effective participation in
the program.
‘‘SEC. 494. PROVISION OF PROGRAM AND EMPLOYMENT
INFORMATION.
‘‘(a) The State agency shall ensure that all applicants
for and recipients of aid to families with dependent chil-
dren are encouraged, assisted, and required to fulfill their
responsibilities to support their children by preparing for,
accepting, and retaining such employment as they are ca-
pable of performing.
‘‘(b) The State agency shall inform all applicants for
and recipients of aid to families with dependent children
of the education, employment, and training opportunities,
and the support services (including child care and health
coverage transition options), for which they are eligible,
the obligations of the State agency, and the rights, respon-
sibilities, and obligations of participants in the program.
‘‘(c) The State agency shall—
‘‘(1) provide (directly or through arrangements
with others) information on the types and locations
of child care services reasonably accessible to partici-
pants in the program;
‘‘(2) inform participants that assistance is
available to help them select appropriate child care
services; and
‘‘(3) on request, provide assistance to partici-
pants in obtaining child care services.
‘‘(d) The State agency must inform applicants for
and recipients of aid to families with dependent children
of the grounds for exemption from participation in the
program and the consequences of refusal to participate if
not exempt, and provide other appropriate information
with respect to such participation.
‘‘(e) Within 1 month after the State agency gives a
recipient of aid to families with dependent children the in-
formation described in the preceding provisions of this
subsection, the State agency must notify the recipient of
the opportunity to indicate a desire to participate in the
program, including a clear description of how to enter the
program.
‘‘SEC. 
495. 
SERVICES 
AND 
ACTIVITIES 
UNDER 
THE
PROGRAM.
‘‘In carrying out the program, each State may make
available the services and activities authorized to be made
available under part F, family counseling services, mental
health treatment services, and such other services and ac-
tivities as the State deems appropriate.
‘‘SEC. 496. DISPUTE RESOLUTION PROCEDURES.
‘‘Each State shall establish a conciliation procedure
for the resolution of disputes involving an individual’s par-
ticipation in the program and (if the dispute involved is
not resolved through conciliation) shall provide an oppor-
tunity for a hearing with respect to the dispute, which
hearing may be provided through a hearing process estab-
lished for purposes of resolving disputes with respect to
the program or through the provision of a hearing pursu-
ant to section 402(a)(4). The State may not suspend, re-
duce, discontinue, or terminate aid to families with de-
pendent children as a result of a dispute involving an indi-
vidual’s participation in the program until the individual
has an opportunity for a hearing that meets the standards
set forth by the United States Supreme Court in Goldberg
v. Kelly, 397 U.S. 254 (1970).
‘‘SEC. 497. PERFORMANCE STANDARDS.
‘‘(a) Not later than 3 years after the effective date
of title I of the Self-Sufficiency Act of 1994, the Secretary
shall—
‘‘(1) in consultation with the Secretary of
Labor, representatives of organizations representing
Governors, State and local program administrators,
educators, State job training coordinating councils,
community-based 
organizations, 
recipients, 
and
other interested persons, develop performance stand-
ards with respect to the programs established pursu-
ant to this part; and
‘‘(2) submit to the appropriate committees of
jurisdiction of the Congress the recommendations of
the Secretary for performance standards developed
under paragraph (1), which recommendations shall
be made with respect to specific measurements of
outcomes and be based on the degree of success
which may reasonably be expected of States in help-
ing individuals to increase earnings, achieve self-
sufficiency, and reduce welfare dependency, and
shall not be measured solely by levels of activity or
participation.
Performance standards developed under this subsection
shall be reviewed periodically by the Secretary and modi-
fied to the extent necessary.
‘‘(b) The Secretary may collect information from the
States to assist in the development of performance stand-
ards under subsection (a), and shall include in the regula-
tions issued pursuant to section 102 of the Self-
Sufficiency Act of 1994 provisions establishing uniform re-
porting requirements under which States must furnish pe-
riodically information and data, including information and
data (for each program activity) on the average monthly
number of families assisted, the types of such families, the
amounts spent per family, the length of their participa-
tion, and such other matters as the Secretary may
determine.
‘‘(c) The Secretary shall develop and transmit to the
Congress, for appropriate legislative action, a proposal for
measuring State progress, providing technical assistance
to enable States to meet performance standards, and
modifying the Federal matching rate to reflect the relative
effectiveness of the various States in carrying out the
program.
‘‘SEC. 498. COORDINATION REQUIREMENTS.
‘‘(a)(1) The Governor of each State shall assure that
program activities under this part are coordinated in that
State with programs operated under the Job Training
Partnership Act and with any other relevant employment,
training, and education programs available in that State.
Appropriate components of the State’s plan developed
under section 492(a)(1) which relate to job training and
work preparation shall be consistent with the coordination
criteria specified in the Governor’s coordination and spe-
cial services plan required under section 121 of the Job
Training Partnership Act.
‘‘(2) The State plan so developed shall be submitted
to the State job training coordinating council not less than
60 days before its submission to the Secretary, for the
purpose of review and comment by the council. Concurrent
with submission of the plan to the State job training co-
ordinating council, the proposed State plan shall be pub-
lished and made reasonably available to the general public
through local news facilities and public announcements, in
order to provide the opportunity for review and comment.
‘‘(3) The comments and recommendations of the
State job training coordinating council under paragraph
(2) shall be transmitted to the Governor of the State.
‘‘(b) The Secretary of Health and Human Services
shall consult with the Secretaries of Education and Labor
on a continuing basis for the purpose of assuring the max-
imum coordination of education and training services in
the development and implementation of the program
under this part.
‘‘(c) The State agency responsible for administering
or supervising the administration of the State plan ap-
proved under part A shall consult with the State education
agency and the agency responsible for administering job
training programs in the State in order to promote coordi-
nation of the planning and delivery of services under the
program with programs operated under the Job Training
Partnership Act and with education programs available in
the State (including any program under the Adult Edu-
cation Act or Carl D. Perkins Vocational Education
Act).’’.
(c) REGULATIONS.—
(1) IN GENERAL.—The Secretary, in consulta-
tion with the Secretary of Labor and with the re-
sponsible 
State 
agencies 
described 
in 
section
492(a)(2) of the Social Security Act, shall prescribe
such regulations as may be necessary to implement
the amendments made by this section, including reg-
ulations 
establishing 
uniform 
data 
collection
requirements.
(2) DEADLINE
FOR
ISSUANCE
OF
PROPOSED
REGULATIONS.—Not later than 3 months after the
date of the enactment of this Act, the Secretary of
Health and Human Services shall issue proposed
regulations pursuant to paragraph (1).
(3) DEADLINE FOR ISSUANCE OF FINAL REGU-
LATIONS.—Not later than 6 months after the date
of the enactment of this Act, the Secretary shall
issue final regulations pursuant to paragraph (1).
SEC. 102. CHILD CARE GUARANTEED TO PARTICIPANTS IN
STATE SELF-SUFFICIENCY PROGRAMS.
Section 402(g)(1)(A)(i) of the Social Security Act (42
U.S.C. 602(g)(1)(A)(i)) is amended—
(1) by striking ‘‘and’’ at the end of subclause
(I);
(2) by striking the period at the end and insert-
ing ‘‘; and’’; and
(3) by adding after and below the end the fol-
lowing:
‘‘(III) for each individual who is participating
in the State program established under part G in ac-
cordance with the self-sufficiency plan established
for the individual under section 492.’’.
SEC. 103. INCREASED FEDERAL MATCHING RATES FOR
CHILD CARE PROVIDED BY STATES WITH
SELF-SUFFICIENCY PROGRAMS.
(a) AFDC AND TRANSITIONAL CHILD CARE.—Sec-
tion 402(g)(3)(A) of such Act (42 U.S.C. 602(g)(3)(A))
is amended by adding at the end the following:
‘‘(iii) In the case of a State with a plan approved
under part G for the fiscal year, the applicable rate for
purposes of section 403(a) shall be the rate otherwise de-
termined under this subparagraph, increased by 10 per-
centage points.’’.
(b) AT-RISK CHILD CARE.—Section 403(n)(1)(A) of
such Act (42 U.S.C. 603(n)(1)(A)) is amended by insert-
ing ‘‘(increased by 10 percentage points, in the case of
a State with a plan approved under part G)’’ before ‘‘of
the expenditures’’.
SEC. 104. ELIMINATION OF REQUIREMENT THAT FAMILIES
IN STATES WITH SELF-SUFFICENCY PRO-
GRAMS HAVE RECEIVED AFDC FOR A MINI-
MUM PERIOD BEFORE BECOMING ELIGIBLE
FOR TRANSITIONAL MEDICAID BENEFITS OR
TRANSITIONAL CHILD CARE BENEFITS.
(a) MEDICAID.—Section 1925(a)(1) of the Social Se-
curity Act (42 U.S.C. 1396r–6(a)(1)) is amended by in-
serting ‘‘(or, in a State with an approved plan under part
G of title IV, during any of the 6 months)’’ after ‘‘6
months’’.
(b) 
TRANSITIONAL
CHILD
CARE.—Section
402(g)(1)(A)(iv) of such Act (42 U.S.C. 602(g)(1)(A)(iv))
is amended by inserting ‘‘in a State that does not have
a plan approved under part G’’ after ‘‘A family’’.
SEC. 105. ELIGIBILITY FOR TRANSITIONAL MEDICAID BEN-
EFITS AND TRANSITIONAL CHILD CARE BEN-
EFITS IN STATES WITH SELF-SUFFICENCY
PROGRAMS WITHOUT REGARD TO TYPE OF
INCOME THAT WOULD OTHERWISE RESULT
IN INELIGIBILITY FOR BENEFITS.
(a) MEDICAID.—Section 1925(a)(1) of the Social Se-
curity Act (42 U.S.C. 1396r–6(a)(1)) is amended by in-
serting ‘‘, the receipt of any income of the caretaker rel-
ative (in the case of a State with an approved plan under
part G of title IV),’’ after ‘‘subsection (e))’’.
(b) 
TRANSITIONAL
CHILD
CARE.—Section
402(g)(1)(A)(ii) of such Act (42 U.S.C. 602(g)(1)(A)(ii))
is amended by striking ‘‘, or increased income from, such
employment or by reason of subsection (a)(8)(B)(ii)(II)’’
and inserting ‘‘such employment, by reason of subsection
(a)(8)(B)(ii)(II), increased income from such employment
if the State does not have a plan approved under part G,
or excessive income if the State has such a plan’’.
SEC. 106. ELIMINATION OF CERTAIN EXCEPTIONS FROM
REQUIREMENT THAT MINOR PARENTS AND
PREGNANT 
MINORS 
WITHOUT 
CHILDREN
LIVE WITH RESPONSIBLE ADULT IN STATES
WITH SELF-SUFFICIENCY PROGRAMS.
Clauses (iv) and (v) of section 402(a)(43)(B) of the
Social Security Act (42 U.S.C. 602(a)(43)(B) (iv) and (v))
are each amended by inserting ‘‘, and the State does not
have a plan approved under part G’’ before the semicolon.
TITLE II—OTHER PROVISIONS
SEC. 201. DISREGARD OF PERSONS WHO BECOME FAMILY
MEMBERS AFTER INITIAL RECEIPT OF AFDC.
Section 402(a) of the Social Security Act (42 U.S.C.
602(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(44);
(2) by striking the period at the end of para-
graph (45) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (45) the fol-
lowing:
‘‘(46) if the State has a plan approved under
part G, at the option of the State, provide that, in
determining the amount of aid payable under the
State plan to a family—
‘‘(A) except as provided in subparagraph
(B), the family shall not be regarded as having
more members that the number of such mem-
bers at the time the family first becomes a re-
cipient of aid under the State plan; and
‘‘(B) if the State has exercised the option
provided under section 406(b) with respect to
aid for pregnant women, a 1-parent or 2-parent
family that includes a pregnant woman and no
children shall not be regarded as having more
members than the number of such members im-
mediately after the end of the pregnancy.’’.
SEC. 202. ENHANCED PAYMENTS FOR PARTICIPANTS IN
THE SELF-SUFFICIENCY PROGRAM.
Section 402(a) of the Social Security Act (42 U.S.C.
602(a)), as amended by section 201 of this Act, is amend-
ed—
(1) by striking ‘‘and’’ at the end of paragraph
(45);
(2) by striking the period at the end of para-
graph (46) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (46) the fol-
lowing:
‘‘(47) if the State has a plan approved under
part G, at the option of the State, provide that the
amount of aid otherwise payable on a monthly basis
to a family under the State plan shall be increased
by not more than $50 if each member of the family
who is required to participate a self-sufficiency pro-
gram established by the State under part G does so
on a full-time basis.’’.
SEC. 203. DIVERSION PAYMENTS.
(a) IN GENERAL.—Section 402(a) of the Social Secu-
rity Act (42 U.S.C. 602(a)), as amended by sections 201
and 202 of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(46);
(2) by striking the period at the end of para-
graph (47) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (47) the fol-
lowing:
‘‘(48) if the State has a plan approved under
part G, at the option of the State, provide that, if
the caseworker for a family who is eligible for, but
not receiving, aid under the State plan determines
that the caretaker relative in the family will be em-
ployed by the end of the 3-month period that begins
with the date the family will become a recipient of
such aid and that, upon such employment, the fam-
ily will not need further assistance, then the State
shall, in lieu of the first 3 monthly payments of such
aid to the family, pay to the family, in a lump sum,
an amount equal 3 times the amount of the first
such monthly payment, on the date the first such
monthly payment would otherwise be made, and sub-
sequent payments (if any) of such aid to the family
shall be reduced (but not below zero) by an amount
sufficient to recover the amount of the lump sum
payment.’’.
(b) 3 MONTHS
OF CHILD CARE
FOR FAMILIES
RECEIVING
A
DIVERSION
PAYMENT.—Section
402(g)(1)(A)(i) of such Act (42 U.S.C. 602(g)(1)(A)(i)),
as amended by section 102 of this Act, is amended—
(1) by striking ‘‘and’’ at the end of subclause
(II);
(2) by striking the period at the end and insert-
ing ‘‘; and’’; and
(3) by adding after and below the end the fol-
lowing:
‘‘(IV) for 3 months, for each family with a de-
pendent child requiring such care if the family re-
ceives 
a 
diversion 
payment 
under 
subsection
(a)(48).’’.
(c) MEDICAID FOR FAMILIES RECEIVING A DIVER-
SION PAYMENT.—Section 1902(a)(10)(A)(i)(I) of such
Act (42 U.S.C. 1396a(a)(10)(A)(i)(I)) is amended by in-
serting ‘‘, and including individuals receiving assistance
under section 402(a)(48)’’ after ‘‘482(e)(6)’’.
SEC. 204. AID TO FAMILIES WITHOUT REGARD TO THE
NUMBER OF PARENTS IN THE HOME.
(a) IN GENERAL.—
(1) Section 402(a)(41) of the Social Security
Act (42 U.S.C. 602(a)(41)) is amended by inserting
‘‘if the State does not have a plan approved under
part G (otherwise, at the option of the State),’’ after
‘‘(41)’’.
(2) Section 407(a) of such Act (42 U.S.C.
607(a)) is amended by inserting ‘‘if the State does
not have a plan approved under part G (otherwise,
at the option of the State),’’ after ‘‘shall,’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 402(a)(38)(B) of such Act (42
U.S.C. 602(a)(38)(B)) is amended by inserting ‘‘, if
the State exercises the option provided under para-
graph (41),’’ after ‘‘406(a) or’’.
(2) Section 406(a)(1) of such Act (42 U.S.C.
606(a)(1)) is amended by inserting ‘‘, if a resident
of a State that has exercised the option provided
under section 402(a)(41),’’ after ‘‘(1) who’’.
(3) Section 406(b)(1) of such Act (42 U.S.C.
606(b)(1)) is amended by inserting ‘‘, in the case of
a State that has exercised the option provided under
section 402(a)(41),’’ after ‘‘mental incapacity of a
parent or’’.
(4) Section 472(a) of such Act (42 U.S.C.
672(a)) is amended by inserting ‘‘, in the case of a
State that has exercised the option provided under
section 402(a)(41),’’ after ‘‘406(a) or’’.
(5) Section 473(a)(2)(A)(i) of such Act (42
U.S.C. 672(a)(2)(A)(i)) is amended by inserting ‘‘,
in the case of a State that has exercised the option
provided under section 402(a)(41),’’ after ‘‘406(a)
or’’.
SEC. 205. 2-PARENT FAMILIES INELIGIBLE FOR AFDC UNTIL
30 DAYS AFTER LOSS OF EMPLOYMENT.
Section 402(a)(10) of the Social Security Act (42
U.S.C. 602(a)(10)) 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) notwithstanding subparagraph (B), if the
State has a plan approved under part G, at the op-
tion of the State, provide that an application for aid
under the plan that is submitted on behalf of a fam-
ily that includes 2 unemployed parents shall not be
effective until the end of the 30-day period that be-
gins with the most recent date of employment of ei-
ther such parent;’’.
SEC. 206. INCREASE IN EARNED INCOME DISREGARD AND
ELIMINATION 
OF 
TIME 
LIMITATION 
ON
EARNED INCOME DISREGARD.
Section 402(a)(8) of the Social Security Act (42
U.S.C. 602(a)(8)) is amended—
(1) in subparagraph (A)(iv)(II), by inserting ‘‘,
or, in the case of a State which has a plan approved
under part G, not less than 1⁄3 and not more than
1⁄2 of the remainder thereof’’ before the semicolon;
and
(2) in subparagraph (B)(ii), by striking
‘‘(ii)(I)’’ and inserting ‘‘(ii) at the option of the
State (I)’’.
SEC. 207. INCREASE IN ASSET LIMITATIONS.
Section 402(a)(7)(B) of the Social Security Act (42
U.S.C. 602(a)(7)(B)) is amended—
(1) by inserting ‘‘(or, in the case of a State
which has a plan approved under part G, $2,000)’’
after ‘‘$1,000’’; and
(2) in clause (i), by inserting ‘‘(or, in the case
of a State which has a plan approved under part G,
$8,000)’’ after ‘‘prescribe’’.
SEC. 208. AMENDMENTS TO THE FOOD STAMP ACT OF 1977.
(a) EXCLUSION FROM INCOME.—Section 5(d) of the
Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is
amended—
(1) by striking ‘‘and (16)’’ and inserting
‘‘(16)’’, and
(2) by inserting before the period at the end the
following:
‘‘, and (17) at the option of the State agency, not more
than $90 per month during the 1-year period beginning
on the date a household member completes participation
in the program established by a State under part G of
title IV of the Social Security Act’’.
(b) DEDUCTION.—Section 5(e) of the Food Stamp
Act of 1977 (7 U.S.C. 2014(e)) is amended by adding at
the end the following:
‘‘All households that include a member who is a full-time
participant in the program established by a State under
part G of title IV of the Social Security Act shall be al-
lowed a deduction of $100 in each month of participation
in such program.’’.
(c) EFFECTIVE DATE AND APPLICATION OF AMEND-
MENTS.—The amendments made by this section shall not
apply with respect to certification periods beginning before
the effective date of this Act.
TITLE III—RELATED
AMENDMENTS
SEC. 301. DENIAL OF WELFARE BENEFITS TO ALIENS.
(a) WELFARE
BENEFITS
DENIED
TO
ILLEGAL
ALIENS.—An alien who is unlawfully present in the Unit-
ed States shall not be eligible for benefits or services under
any Federal or federally assisted program which provides
benefits or services based, in whole or in part, on need.
(b) STATE OPTION TO DENY WELFARE BENEFITS
TO OTHER ALIENS.—A State that is operating a federally
assisted program under which eligibility for benefits or
services is based, in whole or in part, on need may deny
benefits and services under the program to any alien who
is lawfully present in the United States.
SEC. 302. INCLUSION IN CONSUMER CREDIT REPORTS OF
INFORMATION ON OVERDUE CHILD SUPPORT
OBLIGATIONS OF THE CONSUMER.
(a) PROVISION TO CONSUMER REPORTING AGENCIES
OF INFORMATION ON OVERDUE CHILD SUPPORT OBLIGA-
TIONS OF ABSENT PARENTS.—Section 466(a)(7) of the
Social Security Act (42 U.S.C. 666(a)(7)) is amended—
(1) by striking ‘‘will’’ and inserting ‘‘shall’’;
(2) by striking ‘‘upon the request of such agen-
cy’’;
(3) by inserting ‘‘and’’ before ‘‘(B)’’; and
(4) by striking ‘‘, and (C)’’ and all that follows
through ‘‘State’’.
(b) INCLUSION IN DEFINITION OF OVERDUE SUP-
PORT OF CHILD SUPPORT DELINQUENCIES OWED WITH
RESPECT TO ADULTS.—Section 466(e) of such Act (42
U.S.C. 666(e)) is amended by inserting ‘‘For purposes of
subsection (a)(7), overdue support includes support owed
to or on behalf of a child who is not a minor.’’ after the
1st sentence.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the 1st day of the 1st cal-
endar quarter that begins 6 or more months after the date
of the enactment of this Act.
SEC. 303. QUARTERLY PAYMENTS OF EARNED INCOME
CREDIT.
(a) IN GENERAL.—Chapter 77 of the Internal Reve-
nue Code of 1986 (relating to miscellaneous provisions)
is amended by adding at the end the following new section:
‘‘SEC. 7524. QUARTERLY PAYMENTS BY DEPARTMENT OF
TREASURY OF EARNED INCOME CREDIT.
‘‘(a) IN GENERAL.—The Secretary shall establish a
program under which eligible individuals receive, upon re-
quest, advance payments from the Secretary of the credit
under section 32 (relating to earned income tax credit).
‘‘(b) PAYMENTS.—
‘‘(1) FREQUENCY.—The payments under the
program established pursuant to subsection (a) shall
be made not less frequently than quarterly.
‘‘(2) AMOUNT.—The amount paid to any indi-
vidual for any period during a calendar year shall be
such period’s proportionate share of the Secretary’s
estimate of the overpayment of tax by such individ-
ual (for the taxable year ending with or within such
calendar year) which is attributable to the credit re-
ferred to in subsection (a).
‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this
section, the term ‘eligible individual’ means, with respect
to a calendar year, any individual if—
‘‘(1) the credit referred to in subsection (a) is
allowable to such individual for the taxable year end-
ing with or within such calendar year,
‘‘(2) the liability for tax imposed by subtitle A
is reasonably expected to be less than the amount of
the credit which is reasonably expected to be allowed
for such taxable year, and
‘‘(3) such individual provides the Secretary with
such information as the Secretary requires in order
to determine the amounts payable under this sec-
tion.’’.
(b) COORDINATION WITH CREDIT ON RETURN.—
Paragraph (1) of section 32(g) of such Code is amended
by inserting ‘‘or by the Secretary under section 7524’’
after ‘‘section 3507’’.
(c) CLERICAL AMENDMENT.—The table of sections
for such chapter 77 is amended by adding at the end the
following new item:
‘‘Sec. 7524. Quarterly payments of earned income credit.’’
(d) APPROPRIATION.—There are hereby appropriated
such sums as are necessary to make the payments under
section 7524 of the Internal Revenue Code of 1986, as
added by this section.
TITLE IV—EFFECTIVE DATE
SEC. 401. EFFECTIVE DATE.
Except as otherwise provided in this Act, this Act and
the amendments made by this Act shall take effect 6
months after the date of the enactment of this Act.
Æ
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