143
(C) The Job Corps carried out under part
B of title IV of the Job Training Partnership
Act (Budget account number: 16–0174–0–1–
504–00.12).
(D) The older American community service
employment program carried out under title V
of the Older Americans Act of 1965 (Budget
account number: 16–0175–0–1–504).
(E) The JOBS program carried out under
part F of title IV of the Social Security Act
(Budget account number: 75–1509–0–1–504).
(F) The Foster Grandparent Program car-
ried out under part B of title II of the Domes-
tic Volunteer Service Act of 1973 (Budget ac-
count number: 44-0103–0–1–506).
(G) The Senior Companion Program car-
ried out under part C of title II of the Domestic
Volunteer Service Act of 1973 (Budget account
number: 44–0103–0–1–506).
(H) The employment and training pro-
grams for native americans and migrant and
seasonal farmworkers supported under sections
501 and 502 of the Job Training Partnership
Act (Budget account number: 16–0174–0–1–
504).
144
(I) Indian and Native American employ-
ment and training program (Budget account
number: 16–0174–0–1–504).
(8) SOCIAL SERVICES.—
(A) The Social Services Block Grant under
title XX of the Social Security Act (Budget ac-
count number: 75–1634–0–1–506).
(B) The community service block grant
programs carried out under the Community
Services Block Grant Act (Budget account
number: 75–1504–0–1–506).
(C) The activities carried out under the
Legal Services Corporation Act (Budget ac-
count number: 20–0501–0–1–752).
(D) The emergency food and shelter pro-
gram under title III of the Steward B. McKin-
ney Homeless Assistance Act (Budget account
number: 58–0103–1–605).
(E) The population research and voluntary
family planning programs carried out under
title X of the Public Health Service Act (Budg-
et account number: 75–0350–0–1–550).
(F) The program under the Domestic Vol-
unteer Service Act of 1973 (Budget account
number: (44–0103–0–1–506).
145
(G) The supportive services carried out
under part B of title III of the Older Americans
Act of 1965 (Budget account number: (75–
0142–1–506).
(H) Day care assistance under section
402(g) of the Social Security Act (Budget ac-
count number: 75–1515–0–1–609).
(9) AID TO LOW-INCOME COMMUNITIES.—
(A) The community development block
grant program carried out under the Housing
and Community Development Act of 1974
(Budget account number: 86–0162–0–1–451).
(B) The urban development block grant
program carried out under the Housing and
Community Development Act of 1974 (Budget
account number: 86–0170–0–1–451).
(C) Economic development administration
under the Public Works and Economic Develop-
ment Act of 1965 (Budget account number:
13–2050–0–1–452).
(D) The Appalachian regional development
program under the Appalachian Regional De-
velopment Act of 1965 (Budget account num-
ber: 46–0200–0–1–452).
146
(E) The activities carried out under section
204 of the Immigration Reform and Control
Act of 1986 (Budget account number: 75–
1508–0–1–506).
SEC. 604. SAVINGS FROM WELFARE SPENDING LIMITS TO
BE USED FOR DEFICIT REDUCTION.
(a) DEFICIT REDUCTION.—All savings to the Federal
Government resulting from the spending cap imposed
under section 601 shall be used for deficit reduction. Such
savings shall not be used to fund increased spending under
any programs that are not subject to the spending cap.
(b) ADJUSTMENT OF DISCRETIONARY CAPS.—For
purposes of the Omnibus Budget Reconciliation Act of
1993, the present discretionary spending caps shall be ad-
justed for the net increase in discretionary spending that
results from the creation of the welfare block grant as a
replacement for current welfare entitlement programs.
SEC. 605. SPECIAL RULES WITH RESPECT TO GRANTS FOR
ASSISTANCE TO CHILDREN BORN OUT-OF-
WEDLOCK.
(a) IN GENERAL.—Effective upon the termination of
funding under section 603 for the aid to families with de-
pendent children program under part A of title IV of the
Social Security Act—
147
(1) the requirement of section 440(b)(1) of the
Social Security Act shall be satisfied by a State if
the State had a plan in effect under section 402 of
such Act during the base year (as defined in section
442(b)(2)(C)(iii) of such Act); and
(2) notwithstanding section 442(a) of the Social
Security Act, the Federal savings amount for a
State for a fiscal year shall be determined under
subsection (b).
(b) 
DETERMINATION
OF
FEDERAL
SAVINGS
AMOUNT.—
(1) IN GENERAL.—The Federal savings amount
for a State for a fiscal year is an amount equal to
the product of—
(A) the State per capita amount for the
fiscal year (as determined under paragraph
(2)); and
(B) the State’s excluded population for the
fiscal year (as determined under section
442(b)(3) of the Social Security Act).
(2) PER CAPITA AMOUNT.—
(A) IN GENERAL.—The State per capita
amount for a fiscal year determined under this
paragraph is—
(i) for fiscal year 1995, the sum of—
148
(I) 
the 
average 
per 
capita
amount received by the State under
section 403 of the Social Security Act
during the base year (as defined in
section 442(b)(3)(C)(iii) of the Social
Security Act); and
(II) 
the 
average 
per 
capita
amount received by AFDC recipients
(as defined in subparagraph (B)) in
the State under the food stamp pro-
gram under the Food Stamp Act of
1977 during such base year; and
(ii) for fiscal year 1996 and succeed-
ing fiscal years, the amount determined
under this paragraph for the preceding fis-
cal year updated, through the midpoint of
the fiscal year, by projecting the estimated
percentage change in the Consumer Price
Index during the 12-month period ending
at that midpoint, with appropriate adjust-
ments to reflect previous underestimations
or overestimations under this subpara-
graph in the projected percentage change
in the Consumer Price Index.
149
(B) DEFINITION.—For purposes of sub-
paragraph (A), the term ‘‘AFDC recipient’’
means an individual who received aid to fami-
lies with dependent children under part A of
title IV of the Social Security Act during the
base 
year 
(as 
defined 
in 
section
442(b)(3)(C)(iii) of the Social Security Act).
SEC. 606. ELIGIBILITY UNDER THE MEDICAID PROGRAM.
(a) IN GENERAL.—Section 1902(a)(10)(A)(i)(I) (42
U.S.C. 1396a(a)(10)(A)(i)(I)) is amended to read as fol-
lows:
‘‘(I)(aa) who are receiving aid or
assistance under any plan of the State
approved under title I, X, or XIV, or
‘‘(bb) who would be eligible to re-
ceive aid or assistance under the
State’s plan under title XVI or part A
or E of title IV, as approved on the
day before the date of the enactment
of the Real Welfare Reform Act of
1994, if such plan were in effect,’’.
(b) STATE WAIVER.—A State may request a waiver
from the Secretary of Health and Human Services to sim-
plify the medicaid program eligibility criteria set forth in
section 
1902(a)(10)(A)(i)(I)(bb) 
(42 
U.S.C.
150
1396a(a)(10)(A)(i)(I)(bb)) of the Social Security Act. The
Secretary shall review any such waiver request and grant
approval only if Federal expenditures under the medicaid
program will not be increased as a result of such approval.
(c) EFFECTIVE DATE.—The amendment made by
subsection (a) shall be effective on October 1, 1994.
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