Opportunity Reconciliation Act of 1996, is
amended by striking ‘‘SATISFY MINIMUM PAR-
TICIPATION RATES’’ and inserting ‘‘MEET WORK
REQUIREMENTS’’.
(B) Section 411(a)(1)(A)(xii) of the Social
Security Act, as in effect pursuant to title I of
the Personal Responsibility and Work Oppor-
tunity Reconciliation Act of 1996, is amended
by striking ‘‘calculate minimum participation
rates under’’ and inserting ‘‘determine degree
of compliance with’’.
(C) Section 411(a)(4) of the Social Secu-
rity Act, as in effect pursuant to title I of the
Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, is amended by
striking ‘‘407(d)’’ and inserting ‘‘407(c)’’.
(D) Section 107 of the Personal Respon-
sibility and Work Opportunity Reconciliation
Act of 1996 is repealed.
(E) Section 466(a)(15)(A)(ii) of the Social
Security Act (42 U.S.C. 666(a)(15)(A)(ii)) is
amended by striking ‘‘407(d)’’ and inserting
‘‘407(c)’’.
(c) STATES REQUIRED TO PROVIDE TO RECIPIENTS
ENGAGING IN REQUIRED WORK ACTIVITIES A CASH BEN-
EFIT BASED ON NUMBER OF HOURS OF WORK ACTIVI-
TIES.—Section 408(a) of the Social Security Act, as in
effect pursuant to title I of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996, and
as amended by section 5(a)(2) of this Act, is amended by
inserting after paragraph (6) the following:
‘‘(7) CASH BENEFITS REQUIRED TO BE PRO-
VIDED
FOR
RECIPIENTS
ENGAGING
IN
REQUIRED
WORK ACTIVITIES.—A State shall provide assistance
under the State program funded under this part to
a family engaging in work activities required pursu-
ant to section 407 in the form of a monthly cash
payment to the family of an amount equal to the
lesser of—
‘‘(A) the dollar value of the assistance that
would otherwise be provided to the family for
the month under the State program funded
under this part; or
‘‘(B)(i) the aggregate number of hours
during the immediately preceding month that
the adult (or adults) in the family is (or are)
engaged in such activities; multiplied by
‘‘(ii) the minimum wage rate in effect
under section 6 of the Fair Labor Standards
Act of 1938.’’.
(d) PENALTY APPLICABLE TO STATES FOR FAILURE
TO MAKE REQUIRED MONTHLY CASH PAYMENTS
TO
FAMILIES ENGAGING IN REQUIRED WORK ACTIVITIES.—
Section 409(a) of the Social Security Act, as in effect pur-
suant to title I of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996, and as amended
by section 7(b)(1) of this Act, is amended by inserting
after paragraph (5) the following:
‘‘(6) FAILURE TO MAKE REQUIRED MONTHLY
CASH
PAYMENTS
TO
FAMILIES
ENGAGING
IN
RE-
QUIRED WORK ACTIVITIES.—If the Secretary deter-
mines that, during a fiscal year, a State has not pro-
vided to a family engaging in work activities re-
quired pursuant to section 407 a monthly cash pay-
ment in the amount required by section 408(a)(7),
the Secretary shall reduce the grant payable to the
State under section 403(a)(1) for the immediately
succeeding fiscal year by an amount equal to 3 times
the difference (whether positive or negative) between
the amount so required to be paid to the family for
the month and the amount paid to the family for the
month under the State program funded under this
part.’’.
(e) EMERGENCY MEDICAL SERVICES EXCEPTION TO
MEDICAID DISQUALIFICATION FOR ADULTS WHO FAIL
TO MEET WORK REQUIREMENT.—Section 1931(b)(3) of
the Social Security Act (42 U.S.C. 1396v(b)(3)), as in ef-
fect pursuant to title I of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996, is amended
by adding at the end the following new subparagraph:
‘‘(C) EXCEPTION FOR EMERGENCY MEDI-
CAL
SERVICES.—Subparagraph (A) shall not
apply to terminate medical assistance for care
and services that are necessary for the treat-
ment of an emergency medical condition (as de-
fined in section 1903(v)(3)) and that are not
related to an organ transplant procedure.’’.
SEC. 4. INCREASED COMMITMENT TO CHILD CARE.
(a) INCREASED CHILD CARE FUNDING.—Section
418(a)(3) of the Social Security Act, as added by section
603(b) of the Personal Responsibility and Work Oppor-
tunity Reconciliation Act of 1996, is amended to read as
follows:
‘‘(3) APPROPRIATION.—For grants under this
section, there are appropriated—
‘‘(A) $2,967,000,000 for fiscal year 1997;
‘‘(B) $3,067,000,000 for fiscal year 1998;
‘‘(C) $3,167,000,000 for fiscal year 1999;
‘‘(D) $3,367,000,000 for fiscal year 2000;
‘‘(E) $3,567,000,000 for fiscal year 2001;
and
‘‘(F) 
$3,717,000,000 
for 
fiscal 
year
2002.’’.
(b) CHILD CARE REQUIRED TO BE PROVIDED TO
FAMILIES WITH CHILDREN UNDER AGE 6.—Section
408(a) of the Social Security Act, as in effect pursuant
to title I of the Personal Responsibility and Work Oppor-
tunity Reconciliation Act of 1996, is amended by adding
at the end the following:
‘‘(12) PROVISION OF CHILD CARE TO FAMILIES
WITH A CHILD UNDER AGE 6.—A State to which a
grant is made under section 403 shall take such
steps as may be necessary to ensure that each family
receiving assistance under the State program funded
under this part is provided with child care for any
child in the family who has not attained 6 years of
age.’’.
(c) PENALTY FOR FAILURE TO PROVIDE REQUIRED
CHILD CARE.—Section 409(a) of the Social Security Act,
as in effect pursuant to title I of the Personal Responsibil-
ity and Work Opportunity Reconciliation Act of 1996, as
amended by section 5(b) of this Act, is amended by insert-
ing after paragraph (8) the following: