under paragraph (6)), but such payments with respect to
the State for the fiscal year may not exceed the limitation
determined under paragraph (2) with respect to the State
for the fiscal year.
‘‘(2) The limitation determined under this paragraph
with respect to a State for any fiscal year is—
‘‘(A) the amount allotted to the State for fiscal
year 1987 under part C as then in effect, plus
‘‘(B) the amount that bears the same ratio to
the amount specified in paragraph (3) for the fiscal
year as the average monthly number of adult recipi-
ents (as defined in paragraph (4)) in the State in
the immediately preceding fiscal year bears to the
average monthly number of such recipients in all of
the States for the immediately preceding fiscal year.
‘‘(3) The amount specified in this paragraph is
$1,300,000,000, reduced by the aggregate amount allotted
to all the States for fiscal year 1987 pursuant to part C
as then in effect.
‘‘(4) For purposes of this subsection, the term ‘adult
recipient’ means, with respect to a State, an individual
other than a dependent child (unless the child is the custo-
dial parent of another dependent child) whose needs are
met (in whole or in part) with payments of aid to families
with dependent children under the State plan approved
under this part.
‘‘(5) None of the funds available to a State for pur-
poses of the programs or activities conducted under part
G shall be used for construction.
‘‘(6)(A) In lieu of any payment under subsection (a)
or (l), the Secretary shall pay to each State with a plan
approved under part G with respect to expenditures by
the State to carry out a program under part G, an amount
equal to—
‘‘(i) with respect to so much of such expendi-
tures in a fiscal year as do not exceed the State’s
expenditures in the fiscal year 1987 with respect to
which payments were made to the State from its al-
lotment for such fiscal year pursuant to part C as
then in effect, 90 percent; and
‘‘(ii) with respect to so much of such expendi-
tures in a fiscal year as exceed the amount described
in clause (i)—
‘‘(I) 50 percent, in the case of expenditures
for administrative costs made by a State in op-
erating such a program for such fiscal year
(other than the personnel costs for staff em-
ployed full-time in the operation of such pro-
gram) and the costs of transportation and other
work-related supportive services under section
402(g)(2), and
‘‘(II) the greater of 60 percent or the Fed-
eral medical assistance percentage (as defined
in section 1118 in the case of any State to
which section 1108 applies, or as defined in sec-
tion 1905(b) in the case of any other State), in
the case of expenditures made by a State in op-
erating such a program for such fiscal year
(other than for costs described in subclause
(I)).
‘‘(B) With respect to the amount for which payment
is made to a State under subparagraph (A)(i), the State’s
expenditures for the costs of operating a program estab-
lished under part G may be in cash or in kind, fairly evalu-
ated.’’.
(d) STATES OPERATING SELF-SUFFICIENCY PLANS
ENTITLED TO HALF OF RESULTING SAVINGS.—Section
403 of such Act (42 U.S.C. 603), as amended by sub-
section (c) of this section, is amended by adding at the
end the following:
‘‘(p)(1) In addition to any other payment under this
part, each State with a plan approved under part G for
a fiscal year shall be entitled to receive from the Secretary