212
SEC. 648. LUMP-SUM INCOME.
Section 402(a)(8)(A) (42 U.S.C. 602(a)(8)(A)), as
amended by sections 231, 242(b)(1), 611(d)(1), and
643(a) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of clause (xii);
and
(2) by adding at the end the following:
‘‘(xiv) shall disregard from the income of
any family member any amounts of income re-
ceived in the form of nonrecurring lump-sum
payments other than payments made pursuant
to an order for child or spousal support being
enforced by the agency administering the State
plan approved under part D;’’.
TITLE VII—FINANCING
Subtitle A—Ineligibility of Certain
Aliens for Certain Social Services
SEC. 701. CERTAIN ALIENS INELIGIBLE FOR AID TO FAMI-
LIES WITH DEPENDENT CHILDREN.
(a) IN GENERAL.—Section 402(a)(33) (42 U.S.C.
602(a)) is amended—
(1) by redesignating subparagraphs (A) and
(B) as clauses (i) and (ii), respectively;
(2) by inserting ‘‘(A)’’ after ‘‘(33)’’;
(3) by adding ‘‘and’’ at the end; and
213
(4) by adding after and below the end the fol-
lowing:
‘‘(B) provide that, notwithstanding subpara-
graph (A), an alien shall not be eligible for aid
under the State plan, unless—
‘‘(i) the alien has been lawfully admitted to
the United States for permanent residence, has
attained 75 years of age, and has resided in the
United States for at least 5 years;
‘‘(ii) the alien has been lawfully admitted
to the United States pursuant to section 207 of
the Immigration and Nationality Act, and the
6-year period that begins with the date the
alien was admitted to the United States has not
expired;
‘‘(iii) the alien has been granted asylum
under section 208 of the Immigration and Na-
tionality Act, and the 6-year period that begins
with the date the alien was so granted asylum
has not expired; or
‘‘(iv) the alien—
‘‘(I) is a veteran (as defined in section
101 of title 38, United States Code) with
a discharge characterized as an honorable
discharge,
214
‘‘(II) is on active duty (other than ac-
tive duty for training) in the Armed Forces
of the United States, or
‘‘(III) is the spouse or unmarried de-
pendent child of an individual described in
subclause (I) or (II).’’.
(b) EFFECTIVE DATES.—
(1) GENERAL
EFFECTIVE
DATE.—Except as
provided in paragraph (2), the amendments made by
subsection (a) shall take effect on October 1, 1995,
or on the first day of the first month beginning after
the date of the enactment of this Act, whichever oc-
curs later, and shall apply to payments under part
A of title IV of the Social Security Act for quarters
beginning on or after such date, without regard to
whether or not regulations to carry out such amend-
ments have been promulgated by such date.
(2) SPECIAL EFFECTIVE DATE.—If an alien has
applied for and is eligible for aid under a State plan
approved under part A of title IV of the Social Secu-
rity Act, immediately before the amendments made
by subsection (a) takes effect in accordance with
paragraph (1), then such amendments shall not be
effective with respect to such alien until October 1,
1996.
215
SEC. 702. CERTAIN ALIENS INELIGIBLE FOR SUPPLE-
MENTAL SECURITY INCOME BENEFITS.
(a) IN
GENERAL.—Section 1614(a) (42 U.S.C.
1382c(a)) is amended by adding at the end the following:
‘‘(5) Notwithstanding any other provision of this title,
an alien shall not be eligible for benefits under this title
unless—
‘‘(A) the alien has been lawfully admitted to the
United States for permanent residence, has attained
75 years of age, and has resided in the United
States for at least 5 years;
‘‘(B) the alien has been lawfully admitted to the
United States pursuant to section 207 of the Immi-
gration and Nationality Act, and the 6-year period
that begins with the date the alien was admitted to
the United States has not expired;
‘‘(C) the alien has been granted asylum under
section 208 of the Immigration and Nationality Act,
and the 6-year period that begins with the date the
alien was so granted asylum has not expired; or
‘‘(D) the alien—
‘‘(i) is a veteran (as defined in section 101
of title 38, United States Code) with a dis-
charge characterized as an honorable discharge,
216
‘‘(ii) is on active duty (other than active
duty for training) in the Armed Forces of the
United States, or
‘‘(iii) is the spouse or unmarried dependent
child of an individual described in clause (i) or
(ii).’’.
(b) EFFECTIVE DATES.—
(1) GENERAL
EFFECTIVE
DATE.—Except as
provided in paragraph (2), the amendment made by
subsection (a) shall take effect on October 1, 1995,
or on the first day of the first month beginning after
the date of the enactment of this Act, whichever oc-
curs later, and shall apply to payments for months
beginning on or after such date, without regard to
whether or not regulations to carry out such amend-
ment have been promulgated by such date.
(2) SPECIAL EFFECTIVE DATE.—If an alien has
applied for and is eligible for supplemental security
income benefits under title XVI of the Social Secu-
rity Act immediately before the amendments made
by subsection (a) take effect in accordance with
paragraph (1), then such amendment shall not be ef-
fective with respect to such alien until October 1,
1996.
217
SEC. 703. DISQUALIFICATION OF CERTAIN ALIENS TO RE-
CEIVE FOOD STAMP BENEFITS.
(a) AMENDMENT.—Section 6 of the Food Stamp Act
of 1977 (7 U.S.C. 2015) is amended by adding at the end
the following:
‘‘(i) An alien who is otherwise eligible to participate
in the food stamp program shall not be eligible to partici-
pate in the food stamp program unless—
‘‘(1) the alien has been lawfully admitted to the
United States for permanent residence, has attained
75 years of age, and has resided in the United
States for at least 5 years;
‘‘(2) the alien has been lawfully admitted to the
United States pursuant to section 207 of the Immi-
gration and Nationality Act, and the 6-year period
that begins with the date the alien was admitted to
the United States has not expired;
‘‘(3) the alien has been granted asylum under
section 208 of the Immigration and Nationality Act,
and the 6-year period that begins with the date the
alien was so granted asylum has not expired; or
‘‘(4) the alien—
‘‘(A) is a veteran (as defined in section
101 of title 38, United States Code) with a dis-
charge characterized as an honorable discharge,
218
‘‘(B) is on active duty (other than active
duty for training) in the Armed Forces of the
United States, or
‘‘(C) is the spouse or unmarried dependent
child of an individual described in subparagraph
(A) or (B).’’.
(b) EFFECTIVE
DATES
AND
APPLICATION
OF
AMENDMENT.—
(1) GENERAL
EFFECTIVE
DATE.—Except as
provided in paragraphs (2) and (3), the amendment
made by subsection (a) shall take effect on October
1, 1995, or on the first day of the first month begin-
ning after the date of the enactment of this Act,
whichever occurs later.
(2) SPECIAL EFFECTIVE DATE.—Except as pro-
vided in paragraph (3), if an alien is participating
in the food stamp program immediately before the
amendment made by subsection (a) takes effect in
accordance with paragraph (1), then such amend-
ment shall not be effective with respect to such alien
until October 1, 1996.
(3) APPLICATION
TO
CERTIFICATION
PERI-
ODS.—The amendment made by subsection (a) shall
not apply with respect to an alien for certification
219
periods beginning before the date such amendment
is effective with respect to such alien.
SEC. 704. CERTAIN ALIENS INELIGIBLE FOR MEDICAL AS-
SISTANCE UNDER MEDICAID.
(a) IN
GENERAL.—Section 1903(v) (42 U.S.C.
1396b(v)(1)) is amended—
(1) in paragraph (1)—
(A) by striking ‘‘paragraph (2)’’ and in-
serting ‘‘paragraphs (2) and (4)’’, and
(B) by striking ‘‘who is not lawfully admit-
ted’’ and all that follows and inserting a period;
(2) in paragraph (2), by striking ‘‘described in
paragraph (1)’’; and
(3) by adding at the end the following new
paragraph:
‘‘(4) The limitation on payments provided under
paragraph (1) shall not apply with respect to medical as-
sistance furnished to an alien—
‘‘(A) who has been lawfully admitted to the
United States for permanent residence, is 75 years
of age or older, and has resided in the United States
for at least 5 years;
‘‘(B) who has been lawfully admitted to the
United States pursuant to section 207 of the Immi-
gration and Nationality Act, during the 6-year pe-
220
riod beginning on the date such alien was so admit-
ted to the United States;
‘‘(C) who has been granted asylum under sec-
tion 208 of the Immigration and Nationality Act,
during the 6-year period beginning on the date the
alien was so granted asylum; or
‘‘(D) the alien—
‘‘(i) is a veteran (as defined in section 101
of title 38, United States Code) with a dis-
charge characterized as an honorable discharge,
‘‘(ii) is on active duty (other than active
duty for training) in the Armed Forces of the
United States, or
‘‘(iii) is the spouse or unmarried dependent
child of an individual described in clause (i) or
(ii).’’.
(b) EFFECTIVE DATES.—
(1) GENERAL
EFFECTIVE
DATE.—Except as
provided in paragraph (2), the amendments made by
subsection (a) shall take effect on October 1, 1995,
or on the first day of the first month beginning after
the date of the enactment of this Act, whichever oc-
curs later, and shall apply to medical assistance fur-
nished to an alien during quarters beginning on or
after such date, without regard to whether or not
221
regulations to carry out such amendments have been
promulgated by such date.
(2) SPECIAL EFFECTIVE DATE.—If an alien is
eligible for medical assistance under a State plan
under title XIX of the Social Security Act imme-
diately before the amendments made by subsection
(a) take effect in accordance with paragraph (1),
then such amendments shall not be effective with re-
spect to such alien until October 1, 1996.
Subtitle B—Other Provisions
Relating to Aliens
SEC. 711. SPONSOR RESPONSIBILITY FOR COSTS OF IN-
COME-BASED CASH PUBLIC ASSISTANCE PRO-
VIDED TO AN ALIEN.
An affidavit of support or similar document of finan-
cial responsibility with respect to the admission into the
United States of an alien under the Immigration and Na-
tionality Act shall provide that the sponsor shall be liable
for any costs incurred by any State or a political subdivi-
sion of a State for income-based cash public assistance
provided to such alien until the date on which the alien
becomes a citizen of the United States.
222
SEC. 712. ENFORCEMENT OF AFFIDAVITS OF SUPPORT OR
FINANCIAL RESPONSIBILITY BY STATE AND
LOCAL GOVERNMENTS PROVIDING ASSIST-
ANCE.
An affidavit of support or document of financial re-
sponsibility referred to in section 711 may be enforced
with respect to an alien against the alien’s sponsor in a
civil suit brought by the Attorney General or a State or
political subdivision of a State in the United States district
court for the district in which the sponsor resides for the
recovery of any costs incurred by any State or political
subdivision of a State for income-based cash public assist-
ance provided to such alien for which the sponsor agreed
to be liable under such an affidavit or document. A spon-
sor or the sponsor’s estate shall not be liable under such
an affidavit or document if the sponsor dies or is adju-
dicated a bankrupt under title 11, United States Code.
SEC. 713. AUTHORITY TO STATES AND LOCALITIES TO
LIMIT ASSISTANCE TO ALIENS AND TO DIS-
TINGUISH AMONG CLASSES OF ALIENS IN
PROVIDING INCOME-BASED CASH PUBLIC AS-
SISTANCE.
(a) IN GENERAL.—Subject to subsection (b) and not-
withstanding any other provision of law, a State or local
government may prohibit or otherwise limit or restrict the
eligibility of aliens or classes of aliens for programs of in-
223
come-based cash public assistance furnished under the law
of the State or a political subdivision of a State.
(b) LIMITATION.—The authority under subsection (a)
may be exercised only to the extent that any prohibitions,
limitations, or restrictions are not inconsistent with the
eligibility requirements for comparable Federal programs
or are less restrictive. For the purposes of this section,
attribution to an alien of a sponsor’s income and resources
for purposes of determining the eligibility for and amount
of benefits of an alien shall be considered less restrictive
than a prohibition of eligibility.
(c) VERIFICATION
OF
STATUS.—Notwithstanding
any other provision of law, pursuant to the authority of
subsection (a) a State or local government may verify the
citizenship or alien status of any individual for purposes
of eligibility for any program of income-based cash public
assistance.
SEC. 714. GRANTS TO STATES TO COMPENSATE FOR RESI-
DENT LAWFUL ALIENS.
(a) IN GENERAL.—
(1) ELIGIBLE STATES.—Except as otherwise
provided in this section, a State shall be entitled to
a grant under this section for a fiscal year if the
number of lawful aliens residing in the State for the
preceding fiscal year is not less than 4 percent of
225
(B) the term ‘‘lawful alien’’ means an alien
who is lawfully residing in the United States
under the immigration laws of the United
States at the time such alien is counted for pur-
poses of this section.
(b) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated $1,500,000,000 for each
of the fiscal years 1997, 1998, 1999, and 2000 to carry
out this section.
(c) DURATION OF ASSISTANCE.—During the period
beginning October 1, 1996, and ending September 30,
2000, the Attorney General shall, in accordance with the
provisions of this section, make payments to States for
grants made on the basis of entitlements created under
this section.
Subtitle C—Limitation on Emer-
gency Assistance Expenditures
SEC. 721. LIMITATION ON EXPENDITURES FOR EMERGENCY
ASSISTANCE.
(a) IN GENERAL.—Section 403(a)(5) (42 U.S.C.
602(a)(5)) is amended to read as follows:
‘‘(5) in the case of any State, an amount equal
to the lesser of—
‘‘(A) 50 percent of the total amount ex-
pended under the State plan during such quar-
226
ter as emergency assistance to needy families
with children; or
‘‘(B) the greater of—
‘‘(i) the total amount expended under
the State plan during the fiscal year that
immediately precedes the fiscal year in
which the quarter occurs; multiplied by
‘‘(I) 4 percent, if the national un-
employment rate for the United
States (as determined by the Sec-
retary of Labor) for the 3rd or 4th
quarter of the immediately preceding
fiscal year is at least 7 percent; or
‘‘(II) 3 percent, otherwise; or
‘‘(ii) the total amount expended under
the State plan during fiscal year 1995 as
emergency assistance to needy families
with children.’’.
(b) AUTHORITY OF STATES TO DEFINE EMERGENCY
ASSISTANCE.—Section 406(e)(1) (42 U.S.C. 606(e)(1)) is
amended to read as follows:
‘‘(e)(1)(A) The term ‘emergency assistance to needy
families with children’ means emergency assistance fur-
nished by an eligible State with respect to an eligible needy
227
child to avoid destitution of the child or to provide living
arrangements in a home for the child.
‘‘(B) As used in this paragraph:
‘‘(i) The term ‘emergency assistance’ means
emergency assistance as provided for in the State
plan approved under section 402 of an eligible State,
but shall not include care for an eligible needy child
or other member of the household in which the child
is living to the extent that the child or other member
is entitled to such care as medical assistance under
the State plan under title XIX.
‘‘(ii) The term ‘eligible needy child’ means a
needy child—
‘‘(I) who has not attained 21 years of age;
‘‘(II) who is or (within such period as the
Secretary may specify) has been living with any
relative specified in subsection (a)(1) in a place
of residence maintained by 1 or more of such
relatives as the home of the relative or relatives;
‘‘(III) who is without available resources;
and
‘‘(IV) whose requirement for emergency as-
sistance did not arise because the child or rel-
ative refused without good cause to accept em-
ployment or training for employment.
228
‘‘(iii) The term ‘‘eligible State’’ means a State
whose State plan approved under section 402 in-
cludes provision for emergency assistance.’’.
Subtitle D—Family Day Care
Homes Program Improvements
SEC. 731. IMPROVEMENT OF OPERATION OF FAMILY OR
GROUP DAY CARE HOMES LOCATED IN LOW-
AND MODERATE-INCOME AREAS UNDER THE
CHILD AND ADULT CARE FOOD PROGRAM
UNDER THE NATIONAL SCHOOL LUNCH ACT.
(a) IN GENERAL.—Section 17(f)(3)(A) of the Na-
tional School Lunch Act (42 U.S.C. 1766(f)(3)(A)) is
amended to read as follows:
‘‘(A)(i) Institutions that participate in the program
under this section as family or group day care home spon-
soring organizations shall be provided, for payment to
such homes, a reimbursement factor in accordance with
this subparagraph for the cost of obtaining and preparing
food and prescribed labor costs, involved in providing
meals under this section.
‘‘(ii)(I) A low- or moderate-income family or group
day care home shall be provided a reimbursement factor
without a requirement for documentation of the costs de-
scribed in clause (i), except that reimbursement shall not
be provided under this clause for meals or supplements
229
served to the children of a person acting as a family or
group day care home provider unless such children meet
the eligibility standards for free or reduced price meals
under section 9 of this Act. The reimbursement factors
applied to such a home shall be the factors in effect on
the date of enactment of the Individual Responsibility Act
of 1995. The reimbursement factors under this subpara-
graph shall be adjusted on July 1 of each year to reflect
changes in the Consumer Price Index for food away from
home for the most recent 12-month period for which such
data are available. The reimbursement factors under this
subparagraph shall be rounded to the nearest one-fourth
cent.
‘‘(II) For purposes of this clause, the term ‘low- or
moderate-income family or group day care home’ means—
‘‘(aa) a family or group day care home that is
located in a census tract area in which at least 50
percent of the children residing in such area are
members of households whose incomes meet the eli-
gibility standards for free or reduced price meals
under section 9 of this Act, as determined by the
family or group day care home sponsoring organiza-
tion using census tract data provided to such organi-
zation by the State agency in accordance with sub-
paragraph (B)(i);
230
‘‘(bb) a family or group day care home that is
located in an area served by a school in which at
least 50 percent of the total number of children en-
rolled are certified to receive free or reduced price
meals under this Act or the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.), as determined by the
family or group day care home sponsoring organiza-
tion using data provided to such organization by the
State agency in accordance with subparagraph
(B)(ii); or
‘‘(cc) a family or group day care home that is
operated by a provider whose household meets the
eligibility standards for free or reduced price meals
under section 9 of this Act.
‘‘(iii)(I) Except as provided for in subclause (II), with
respect to meals or supplements served under this clause
by a family or group day care home that does not meet
the criteria set forth in clause (ii)(II), the reimbursement
factors shall be—
‘‘(aa) $1.2525 for lunches and suppers;
‘‘(bb) $.525 for breakfasts; and
‘‘(cc) $.25 for supplements.
Such factors shall be adjusted on July 1, 1995, and each
July 1 thereafter to reflect changes in the Consumer Price
Index for food away from home for the most recent 12-
232
members of households whose incomes do not meet
such eligibility standards, the family or group day
care home shall be provided a reimbursement factor
in accordance with subclause (I).
‘‘(III) A family or group day care home electing to
use the procedures under subclause (II) may consider a
child with a parent participating in the work first program
established under part F of title IV of the Social Security
Act, the community service program established under
part G of such title, the transitional child care program
under title IV of such Act, the at-risk child care program
under title IV of such Act, or a State child care program
with an income eligibility limit that does not exceed the
eligibility standard for free or reduced price meals under
section 9 of this Act, to be a child who is a member of
a household whose income meets the eligibility standards
under section 9 of this Act. A family or group day care
home may elect to receive the reimbursement factors pre-
scribed under clause (ii)(I) solely for such children if it
does not wish to have income statements collected from
parents.
‘‘(IV) The Secretary shall prescribe simplified meal
counting and reporting procedures for use by family and
group day care homes that elect to use the procedures
under clause (iii)(II) and by family and group day care
233
home sponsoring organizations that serve such homes.
Such procedures may include the following:
‘‘(aa) Setting an annual percentage for each
such home of the number of meals served that are
to be reimbursed in accordance with the reimburse-
ment factors prescribed under clause (ii)(I) and an
annual percentage of the number of meals served
that are to be reimbursed in accordance with the re-
imbursement factors prescribed under clause (ii)(II),
based on the incomes of children enrolled in the
home in a specified month or other period.
‘‘(bb) Setting blended reimbursement factors
for a home annually based on the incomes of chil-
dren enrolled in the home in a specified month or
period.
‘‘(cc) Placing a home into one of several reim-
bursement categories annually based on the percent-
age of children in the home whose households have
incomes that meet the eligibility standards under
section 9 of this Act.
‘‘(dd) Such other simplified procedures as the
Secretary may prescribe.’’.
(b) PROVISION OF DATA TO FAMILY OR GROUP DAY
CARE HOMES.—Section 17(f)(3) of such Act (42 U.S.C.
1766(f)(3)) is amended—
234
(1) by redesignating subparagraphs (B) and
(C) as subparagraphs (D) and (E), respectively; and
(2) by inserting after subparagraph (A) (as
amended by subsection (a)) the following new sub-
paragraph:
‘‘(B)(i) The Secretary shall provide to each State
agency administering a child and adult care food program
under this section data from the most recent decennial
census for which such data are available showing which
census tracts in the State meet the requirements of sub-
paragraph (A)(ii)(II)(aa). The State agency shall provide
such data to family or group day care home sponsoring
organizations located in the State.
‘‘(ii) Each State agency administering a child and
adult care food program under this section shall annually
provide to family or group day care home sponsoring orga-
nizations located in the State a list of all schools in the
State in which at least 50 percent of the children are en-
rolled are certified to receive free or reduced price meals
under this Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.). The Secretary shall direct State
agencies administering the school lunch program under
this Act and the school breakfast program under the Child
Nutrition Act of 1966 to collect this information annually
235
and to provide it on a timely basis to the State agency
administering the program under this section.’’.
(c) GRANTS TO STATES TO PROVIDE ASSISTANCE TO
FAMILY OR GROUP DAY CARE HOMES.—Section 17(f)(3)
of such Act (42 U.S.C. 1766(f)(3)) is amended by insert-
ing after subparagraph (B) (as added by subsection
(b)(2)) the following new subparagraph:
‘‘(C)(i) From amounts appropriated to carry out this
section, the Secretary shall reserve $2,000,000 in fiscal
year 1995 and $5,000,000 in fiscal year 1996 to provide
grants to States for the purpose of providing grants to
family and day care home sponsoring organizations and
other appropriate organizations to secure and provide
training, materials, automated data processing assistance,
and other assistance for the staff of such sponsoring orga-
nizations and for family and group day care homes in
order to assist in the implementation of the requirements
contained in subparagraph (A).
‘‘(ii) From amounts appropriated to carry out this
section, the Secretary shall reserve $5,000,000 in fiscal
year 1997 and in each fiscal year thereafter to provide
grants to States for the purpose of making grants to fam-
ily or group day care home sponsoring organizations and
other appropriate organizations to assist low- or moderate-
income family or group day care homes (as such term is
236
defined in subparagraph (A)(ii)(II)) become licensed or
registered for the program under this section or overcome
other barriers to the program.’’.
(d) EFFECTIVE DATES.—(1) The amendments made
by subsections (a) and (b) shall take effect on July 1,
1996.
(2) The amendments made by subsection (c) shall
take effect on the date of the enactment of this Act.
Subtitle E—Deficit Reduction
SEC. 741. DEDICATION OF SAVINGS TO DEFICIT REDUC-
TION.
Upon the enactment of this Act, the Director of the
Office of Management and Budget shall make downward
adjustments in the discretionary spending limits (new
budget authority and outlays), as adjusted, set forth in
601(a)(2) of the Congressional Budget Act of 1974 for
each of fiscal years 1996 through 1998 as follows:
(1) For fiscal year 1996, reduce new budget au-
thority by $750,000,000 and reduce outlays by
$750,000,000.
(2) For fiscal year 1997, reduce new budget au-
thority by $750,000,000 and reduce outlays by
$750,000,000.
237
(3) For fiscal year 1998, reduce new budget au-
thority by $800,000,000 and reduce outlays by
$800,000,000.
Subtitle F—Tax Provisions
SEC.751. CERTAIN FEDERAL ASSISTANCE INCLUDIBLE IN
GROSS INCOME.
(a) IN GENERAL.—Part II of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
items specifically included in gross income) is amended by
adding at the end the following new section:
‘‘SEC. 91. CERTAIN FEDERAL ASSISTANCE.
‘‘(a) IN GENERAL.—Gross income shall include an
amount equal to the specified Federal assistance received
by the taxpayer during the taxable year.
‘‘(b) SPECIFIED FEDERAL ASSISTANCE.—For pur-
poses of this section—
‘‘(1) IN GENERAL.—The term ‘specified Federal
assistance’ means—
‘‘(A) aid provided under a State plan ap-
proved under part A of title IV of the Social
Security Act (relating to aid to families with de-
pendent children),
‘‘(B) assistance provided under any food
stamp program, and
238
‘‘(C) assistance provided under section 8 of
the United States Housing Act of 1937.
‘‘(2) SPECIAL RULE.—In the case of assistance
provided under a program described in subsection
(d)(2), such term shall include only the assistance
required to be provided under section 21 or 22 (as
the case may be) of the Food Stamp Act of 1977.
‘‘(c) INDIVIDUALS SUBJECT TO TAX.—For purposes
of this section—
‘‘(1) AFDC.—Aid described in subsection
(b)(1)(A) shall be treated as received by the relative
with whom the dependent child is living (within the
meaning of section 406(c) of the Social Security
Act).
‘‘(2) FOOD STAMPS AND SECTION 8 HOUSING.—
In the case of assistance described in subparagraph
(B) or (C) of subsection (b)(1)—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), such assistance shall be
treated as received ratably by each of the indi-
viduals taken into account in determining the
amount of such assistance for the benefit of
such individuals.
‘‘(B) ASSISTANCE TO CHILDREN TREATED
AS RECEIVED BY PARENTS, ETC.—The amount
239
of assistance which would (but for this subpara-
graph) be treated as received by a child shall be
treated as received as follows:
‘‘(i) If there is an includible parent,
such amount shall be treated as received
by the includible parent (or if there is
more than 1 includible parent, as received
ratably by each includible parent).
‘‘(ii) If there is no includible parent
and there is an includible grandparent,
such amount shall be treated as received
by the includible grandparent (or if there
is more than 1 includible grandparent, as
received ratably by each includible grand-
parent).
‘‘(iii) If there is no includible parent
or grandparent, such amount shall be
treated as received ratably by each includ-
ible adult.
‘‘(C) DEFINITIONS.—For purposes of sub-
paragraph (B)—
‘‘(i) CHILD.—The term ‘child’ means
any individual who has not attained age 16
as of the close of the taxable year. Such
term shall not include any individual who
240
is an includible parent of a child (as de-
fined in the preceding sentence).
‘‘(ii) ADULT.—The term ‘adult’ means
any individual who is not a child.
‘‘(iii) INCLUDIBLE.—The term ‘in-
cludible’ means, with respect to any indi-
vidual, an individual who is included in de-
termining the amount of assistance paid to
the household which includes the child.
‘‘(iv) PARENT.—The term ‘parent’ in-
cludes the stepfather and stepmother of
the child.
‘‘(v) 
GRANDPARENT.—The 
term
‘grandparent’ means any parent of a par-
ent of the child.
‘‘(d) FOOD STAMP PROGRAM.—For purposes of sub-
section (b), the term ‘food stamp program’ means—
‘‘(1) the food stamp program (as defined in sec-
tion 3(h) of the Food Stamp Act of 1977), and
‘‘(2) the portion of the program under sections
21 and 22 of such Act which provides food assist-
ance.’’
(b) REPORTING.—
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(1) IN GENERAL.—Subpart B of part III of
subchapter A of chapter 61 of such Code is amended
by adding at the end the following new section:
‘‘SEC. 6050Q. PAYMENTS OF CERTAIN FEDERAL ASSIST-
ANCE.
‘‘(a) REQUIREMENT
OF REPORTING.—The appro-
priate official shall make a return, according to the forms
and regulations prescribed by the Secretary, setting
forth—
‘‘(1) the aggregate amount of specified Federal
assistance paid to any individual during any cal-
endar year, and
‘‘(2) the name, address, and TIN of such indi-
vidual.
‘‘(b) STATEMENTS TO BE FURNISHED TO PERSONS
WITH RESPECT TO WHOM INFORMATION IS REQUIRED.—
Every person required to make a return under subsection
(a) shall furnish to each individual whose name is required
to be set forth in such return a written statement showing
—
‘‘(1) the name of the agency making the pay-
ments, and
‘‘(2) the aggregate amount of payments made
to the individual which are required to be shown on
such return.
242
The written statement required under the preceding sen-
tence shall be furnished to the individual on or before Jan-
uary 31 of the year following the calendar year for which
the return under subsection (a) was required to be made.
‘‘(c) DEFINITIONS AND SPECIAL RULE.—For pur-
poses of this section—
‘‘(1) APPROPRIATE OFFICIAL.—The term ‘ap-
propriate official’ means—
‘‘(A) in the case of specified Federal as-
sistance described in section 91(b)(1)(A), the
head of the State agency administering the plan
under which such assistance is provided,
‘‘(B) in the case of specified Federal as-
sistance described in section 91(b)(1)(B), the
head of the State agency administering the pro-
gram under which such assistance is provided,
and
‘‘(C) in the case of specified Federal assist-
ance described in section 91(b)(1)(C), the head
of the State pubic housing agency administering
the program under which such assistance is
provided.
‘‘(2) SPECIFIED
FEDERAL
ASSISTANCE.—The
term ‘specified Federal assistance’ has the meaning
given such term by section 91(b).
243
‘‘(3) AMOUNTS TREATED AS PAID.—The rules
of section 91(c) shall apply for purposes of deter-
mining to whom specified Federal assistance is
paid.’’
(2) PENALTIES.—
(A) 
Subparagraph 
(B) 
of 
section
6724(b)(1) of such Code is amended by redesig-
nating clauses (ix) through (xiv) as clauses (x)
through (xv), respectively, and by inserting
after clause (viii) the following new clause:
‘‘(ix) section 6050Q (relating to pay-
ments of certain Federal assistance),’’.
(B) Paragraph (2) of section 6724(d) of
such Code is amended by redesignating sub-
paragraphs (Q) through (T) as subparagraphs
(R) through (U), respectively, and by inserting
after subparagraph (P) the following new sub-
paragraph:
‘‘(Q) section 6050Q(b) (relating to pay-
ments of certain Federal assistance),’’.
(c) CLERICAL AMENDMENTS.—
(1) The table of sections for part II of sub-
chapter B of chapter 1 of such Code is amended by
adding at the end the following new item:
‘‘Sec. 91. Certain Federal assistance.’’
244
(2) The table of sections for subpart B of part
III of subchapter A of chapter 61 of such Code is
amended by adding at the end the following new
item:
‘‘Sec. 6050Q. Payments of certain Federal assistance.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to benefits received after December
31, 1995.
SEC. 752. EARNED INCOME TAX CREDIT DENIED TO INDI-
VIDUALS 
NOT 
AUTHORIZED 
TO 
BE 
EM-
PLOYED IN THE UNITED STATES.
(a) IN GENERAL.—Section 32(c)(1) of the Internal
Revenue Code of 1986 (relating to individuals eligible to
claim the earned income tax credit) is amended by adding
at the end the following new subparagraph:
‘‘(F) IDENTIFICATION NUMBER REQUIRE-
MENT.—The term ‘eligible individual’ does not
include any individual who does not include on
the return of tax for the taxable year—
‘‘(i) such individual’s taxpayer identi-
fication number, and
‘‘(ii) if the individual is married (with-
in the meaning of section 7703), the tax-
payer identification number of such indi-
vidual’s spouse.’’
245
(b) SPECIAL IDENTIFICATION NUMBER.—Section 32
of such Code is amended by adding at the end the follow-
ing new subsection:
‘‘(k) IDENTIFICATION NUMBERS.—Solely for pur-
poses of subsections (c)(1)(F) and (c)(3)(D), a taxpayer
identification number means a social security number is-
sued to an individual by the Social Security Administra-
tion (other than a social security number issued pursuant
to clause (II) (or that portion of clause (III) that relates
to clause (II)) of section 205(c)(2)(B)(i) of the Social Se-
curity Act).’’
(c) EXTENSION OF PROCEDURES APPLICABLE TO
MATHEMATICAL
OR
CLERICAL
ERRORS.—Section
6213(g)(2) of such Code (relating to the definition of
mathematical or clerical errors) is amended by striking
‘‘and’’ at the end of subparagraph (D), by striking the
period at the end of subparagraph (E) and inserting
‘‘, and’’, and by inserting after subparagraph (E) the fol-
lowing new subparagraph:
‘‘(F) an omission of a correct taxpayer
identification number required under section 32
(relating to the earned income tax credit) to be
included on a return.’’
246
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1995.
SEC. 753. PHASEOUT OF EARNED INCOME CREDIT FOR IN-
DIVIDUALS HAVING MORE THAN $2,500 OF
TAXABLE INTEREST AND DIVIDENDS.
(a) IN GENERAL.—Section 32 of the Internal Reve-
nue Code of 1986 is amended by redesignating subsections
(i) and (j) as subsections (j) and (k), respectively, and by
inserting after subsection (h) the following new subsection:
‘‘(i) PHASEOUT OF CREDIT FOR INDIVIDUALS HAV-
ING MORE THAN $2,500 OF TAXABLE INTEREST AND
DIVIDENDS.—If the aggregate amount of interest and
dividends includible in the gross income of the taxpayer
for the taxable year exceeds $2,500, the amount of the
credit which would (but for this subsection) be allowed
under this section for such taxable year shall be reduced
(but not below zero) by an amount which bears the same
ratio to such amount of credit as such excess bears to
$650.’’
(b) INFLATION ADJUSTMENT.—Subsection (j) of sec-
tion 32 of such Code (relating to inflation adjustments),
as redesignated by subsection (a), is amended by striking
paragraph (2) and by inserting the following new para-
graphs:
247
‘‘(2) INTEREST AND DIVIDEND INCOME LIMITA-
TION.—In the case of a taxable year beginning in a
calendar year after 1996, each dollar amount con-
tained in subsection (i) shall be increased by an
amount equal to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 1995’ for
‘calendar year 1992’ in subparagraph (B)
thereof.
‘‘(3) ROUNDING.—If any amount as adjusted
under paragraph (1) or (2) is not a multiple of $10,
such dollar amount shall be rounded to the nearest
multiple of $10.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1995.
SEC. 754. TREATMENT OF CHILDREN RECEIVING AFDC
BENEFITS UNDER EARNED INCOME CREDIT.
(a) IN GENERAL.—Subparagraph (A) of section
32(c)(3) of the Internal Revenue Code of 1986 (defining
qualifying child) is amended by striking ‘‘and’’ at the end
of clause (iii), by striking the period at the end of clause
248
(iv) and inserting ‘‘, and’’, and by adding at the end the
following new clause:
‘‘(v) who, if such individual is taken
into account in determining aid provided
under a State plan approved under part A
of title IV of the Social Security Act (relat-
ing to aid to families with dependent chil-
dren), is taken into account as a member
of the family of the taxpayer.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 1995.
TITLE VIII—SSI REFORM
SEC. 801. LIMITATION ON PAYMENT OF SUPPLEMENTAL SE-
CURITY INCOME BENEFITS FOR CHILDREN
BY REASON OF DISABILITY.
(a) IN GENERAL.—Title XVI of the Social Security
Act, as in effect pursuant to the amendment made by sec-
tion 301 of the Social Security Amendments of 1972, (42
U.S.C. 1381 et seq.) is amended by inserting after section
1611 the following:
‘‘SEC. 1611A. LIMITATION ON BENEFITS FOR CHILDREN BY
REASON OF DISABILITY.
‘‘(a) IN GENERAL.—The amount of benefits payable
under this title by reason of disability for any fiscal year,
249
to or for the use of individuals who have not attained 18
years of age, shall not exceed the amount appropriated
pursuant to section 1601(b) for the fiscal year.
‘‘(b) MANNER
OF REDUCING BENEFITS.—If the
Commissioner has reason to believe that the amount ap-
propriated pursuant to section 1601(b) for a fiscal year
will not be sufficient to enable the payment of benefits
otherwise payable under this title by reason of disability
for the fiscal year, to or for the use of individuals who
have not attained 18 years of age, then the Commissioner
shall reduce, by such equal percentage as is necessary to
comply with subsection (a), the amount of benefits other-
wise so payable under this title for each month that is
in the fiscal year and that begins after the first date the
Commissioner has such reason to believe.’’.
(b) LIMITATIONS
ON AUTHORIZATION
OF APPRO-
PRIATIONS FOR PAYMENT OF BENEFITS FOR CHILDREN
BY REASON OF DISABILITY.—Section 1601 of such title
(42 U.S.C. 1381) is amended—
(1) by inserting ‘‘(a)’’ before ‘‘For’’;
(2) by inserting ‘‘(but not for the purpose of
paying cash benefits by reason of disability to or for
the use of individuals who have not attained 18
years of age)’’ after ‘‘disabled’’; and
(3) by adding at the end the following:
250
‘‘(b) For the purpose of paying cash benefits under
this title by reason of disability to or for the use of individ-
uals who have not attained 18 years of age, there are au-
thorized to be appropriated not more than $4,520,000,000
for each fiscal year.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to benefits payable for months
after February 1996.
TITLE IX—EFFECTIVE DATE
SEC. 901. EFFECTIVE DATE.
Except as otherwise provided in this Act, this Act and
the amendments made by this Act shall take effect on Oc-
tober 1, 1996.
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