I
103D CONGRESS
2D SESSION
H. R. 4473
To restore the American family, reduce illegitimacy, and reduce welfare
dependence.
IN THE HOUSE OF REPRESENTATIVES
MAY 23, 1994
Mr. TALENT (for himself, Mr. HUTCHINSON, Mr. CANADY, Mr. ARMEY, Mr.
BAKER of California, Mr. BALLENGER, Mr. BARTON of Texas, Mr. BLI-
LEY, Mr. BLUTE, Mr. BOEHNER, Mr. BURTON of Indiana, Mr. CALVERT,
Mr. COBLE, Mr. COLLINS of Georgia, Mr. CRANE, Mr. DICKEY, Mr.
DOOLITTLE, Mr. DORNAN, Mr. EWING, Mr. GRAMS, Mr. HANCOCK, Mr.
HASTERT, Mr. HOEKSTRA, Mr. HUNTER, Mr. ISTOOK, Mr. SAM JOHN-
SON of Texas, Mr. KINGSTON, Mr. LEVY, Mr. MANZULLO, Mr. MCCOL-
LUM, Mr. MCCRERY, Mr. MCHUGH, Mr. POMBO, Mr. ROHRABACHER,
Mr. ROTH, Mr. SOLOMON, Mr. STEARNS, Mr. STUMP, Mr. WALKER, and
Mr. ZELIFF) introduced the following bill; which was referred jointly to
the Committees on Ways and Means, Agriculture, Banking, Finance and
Urban Affairs, Education and Labor, Energy and Commerce, the Judici-
ary, Rules, Natural Resources, Public Works and Transportation, and
Government Operations
A BILL
To restore the American family, reduce illegitimacy, and
reduce welfare dependence.
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 ‘‘Real Welfare Reform
Act of 1994’’.
SEC. 2. REFERENCES IN ACT; TABLE OF CONTENTS.
(a) AMENDMENTS TO SOCIAL SECURITY ACT.—Ex-
cept as otherwise specifically provided, whenever in this
Act an amendment is expressed in terms of an amendment
to or repeal of a section or other provision, the reference
shall be considered to be made to that section or other
provision of the Social Security Act.
(b) TABLE OF CONTENTS.—The table of contents is
as follows:
Sec. 1. Short title.
Sec. 2. References in Act; table of contents.
TITLE I—WORK REQUIREMENTS FOR WELFARE RECIPIENTS
Sec. 101. Reform of the job opportunities and basic skills training program.
Sec. 102. Work requirement for able-bodied non-parents in food stamp pro-
gram.
Sec. 103. Requirement that certain AFDC applicants conduct job search activi-
ties.
Sec. 104. Effective date.
TITLE II—PROMOTION OF MARRIAGE AND SOCIAL
RESPONSIBILITY
Subtitle A—Welfare Benefits
Sec. 201. Promotion of families.
Sec. 202. Benefit provisions regarding additional children.
Sec. 203. Provisions relating to paternity establishment.
Subtitle B—Grants for Assistance to Children Born Out-Of-Wedlock
Sec. 211. Grants to States.
Subtitle C—Removal of Barriers to Interethnic Adoption
Sec. 221. Findings and purpose.
Sec. 222. Multiethnic placements.
Subtitle D—Tax Credit for Certain Low-Income Families
Sec. 231. Additional earned income credit for married individuals.
TITLE III—CHILD SUPPORT ENFORCEMENT
Sec. 301. National reporting of information relating to child support with re-
spect to certain employees.
Sec. 302. State information systems.
Sec. 303. National information systems.
Sec. 304. Income withholding.
Sec. 305. Uniform terms in orders.
Sec. 306. Improvements in paternity establishment.
Sec. 307. Waiver of fee for certain individuals receiving child support collection
or paternity determination services.
TITLE IV—SPECIFIC REFORMS IN WELFARE SPENDING
Sec. 401. Income eligibility guidelines for school lunch and breakfast programs.
Sec. 402. Repeal of expansions to food stamp program.
Sec. 403. Repeal of empowerment zones and enterprise communities.
Sec. 404. Reduction of benefits to AFDC families who also receive public hous-
ing benefits.
Sec. 405. Reduction of social services block grants.
Sec. 406. Restrictions on welfare benefits provided to aliens.
Sec. 407. Replacement of cash benefit with medical vouchers.
Sec. 408. Disability review required for SSI recipients who are 18 years of age.
Sec. 409. Amount of funds available for low-income home energy assistance.
TITLE V—STATE OPTIONS AND MISCELLANEOUS PROVISIONS
Sec. 501. Option to time limit welfare.
Sec. 502. Option to treat interstate immigrants under rules of former State
with respect to AFDC benefits.
Sec. 503. Evaluation of training programs.
Sec. 504. Elimination of welfare benefits with respect to fugitive felons and
probation and parole violators.
TITLE VI—CAPPING THE AGGREGATE GROWTH OF WELFARE
SPENDING
Sec. 601. Cap on growth of Federal spending on certain welfare programs.
Sec. 602. Establishment of welfare block grant program.
Sec. 603. Conversion of funding under certain welfare programs.
Sec. 604. Savings from welfare spending limits to be used for deficit reduction.
Sec. 605. Special rules with respect to grants for assistance to children born
out-of-wedlock.
Sec. 606. Eligibility under the medicaid program.
TITLE I—WORK REQUIREMENTS
FOR WELFARE RECIPIENTS
SEC. 101. REFORM OF THE JOB OPPORTUNITIES AND BASIC
SKILLS TRAINING PROGRAM.
(a) AMENDMENT TO STATE PLAN REQUIREMENT.—
Section 402(a)(19) (42 U.S.C. 602(a)(19)) is amended to
read as follows:
‘‘(19) provide that the State has in effect and
operation a welfare and dependency reduction pro-
gram which meets the requirements of part F;’’.
(b) REPLACEMENT OF EXISTING PROGRAM WITH A
NEW PROGRAM.—
(1) IN
GENERAL.—Part F of title IV (42
U.S.C. 481 et seq.) is amended to read as follows:
‘‘PART F—WORKFARE AND DEPENDENCY REDUCTION
PROGRAM
‘‘PURPOSE OF PROGRAM
‘‘SEC. 481. It is the purpose of this part to ensure
that individuals receiving welfare assistance contribute
services to their communities in exchange for such assist-
ance.
‘‘ESTABLISHMENT OF STATE PROGRAMS
‘‘SEC. 482. As a condition of its participation in the
program of aid to families with dependent children under
part A, each State shall establish and operate a workfare
and dependency reduction program (in this part referred
to as the ‘‘program’’) which meets the requirements of this
part.
‘‘PROGRAM PARTICIPATION REQUIREMENTS
‘‘SEC. 483. (a) PARTICIPATION REQUIREMENTS FOR
PARENTS IN THE AFDC UNEMPLOYED PARENT PRO-
GRAM.—
‘‘(1) PARTICIPATION REQUIREMENT FOR INDI-
VIDUALS.—In the case of any family eligible for aid
to families with dependent children by reason of the
unemployment of the parent who is the principal
earner, the State shall require one parent to partici-
pate in the community work service program de-
scribed in section 484 for not less than 32 hours per
week and to conduct job search activities for not less
than 8 hours per week.
‘‘(2) PARTICIPATION RATE REQUIREMENT FOR
STATES.—With respect to individuals described in
paragraph (1), each State shall maintain a partici-
pation rate (as determined under subsection (d)(1))
of 95 percent for quarters during fiscal year 1995
and succeeding fiscal years.
‘‘(b) PARTICIPATION REQUIREMENT FOR CERTAIN
NONCUSTODIAL PARENTS.—
‘‘(1) PARTICIPATION REQUIREMENT FOR INDI-
VIDUALS.—
‘‘(A) IN GENERAL.—A State shall require
any individual described in subparagraph (B) to
participate in a State community work service
program described in section 484 in accordance
with subparagraph (C).
‘‘(B) INDIVIDUALS DESCRIBED.—An indi-
vidual described in this subparagraph is an in-
dividual—
‘‘(i) who resides in the State;
‘‘(ii) whose place of residence or em-
ployment is known by the State;
‘‘(iii) who is the noncustodial parent
of a dependent child receiving aid to fami-
lies with dependent children under part A;
and
‘‘(iv) who is known by the State to
have failed to pay required child support
on behalf of such a child.
‘‘(C) PARTICIPATION
REQUIREMENTS.—If
an individual described in subparagraph (B)—
‘‘(i) is employed, such individual shall
be required to work under the State com-
munity work service program for not less
than 16 hours per week; or
‘‘(ii) is unemployed, such individual
shall be required to—
‘‘(I) work under the State com-
munity work service program for not
less than 24 hours per week; and
‘‘(II) conduct job search activities
for not less than 16 hours per week.
‘‘(2) 
PARTICIPATION
REQUIREMENT
FOR
STATES.—With respect to individuals described in
paragraph (1), each State shall maintain a partici-
pation rate (as determined under subsection (d)(2))
of—
‘‘(A) 50 percent for quarters during fiscal
year 1995; and
‘‘(B) 90 percent for quarters during fiscal
year 1996 and succeeding fiscal years.
‘‘(c) PARTICIPATION REQUIREMENT FOR ADULT RE-
CIPIENTS OF AFDC IN SINGLE-ADULT FAMILIES.—
‘‘(1) PARTICIPATION REQUIREMENT FOR INDI-
VIDUALS.—Except as provided in subsection (a), the
State shall require each adult recipient of aid to
families with dependent children in a single-adult
family to participate in—
include only children age 5 or older are partici-
pating in the program.
‘‘(B) FAMILY STATUS.—If a State classi-
fies a family as a single-adult family including
only children age 5 or older on or after the date
which is 10 months after the date of the enact-
ment of the Real Welfare Reform Act of 1994,
the family shall continue to be so classified re-
gardless of whether an additional child under
age 5 becomes a member of the family.
‘‘(4) STATE
OPTION
REGARDING
PLACEMENT
OF
INDIVIDUALS
IN
BENEFITS
TO
WAGES
PRO-
GRAM.—The State may conduct a job placement
program under which the State contracts with pri-
vate entities to place individuals described in para-
graph (1) with qualified employers under the bene-
fits to wages program under section 485.
‘‘(5) STATE OPTION TO PROVIDE EDUCATIONAL
ACTIVITIES OR JOB SKILLS TRAINING PROGRAM.—
Subject to the approval of the Secretary, a State
may require not more than 20 percent of the adult
recipients required to participate in the program
under paragraph (2), on average during any quarter,
to conduct educational or job skills training.
‘‘(6) NONSUBSIDIZED
EMPLOYMENT
COUNT-
ABLE AS PARTICIPATION.—
‘‘(A) IN
GENERAL.—An adult recipient
may satisfy the 30-hour per week work require-
ment under paragraph (1)(A) by working solely
in nonsubsidized employment or by combining
hours worked under a community work service
program and hours worked in nonsubsidized
employment.
‘‘(B) NONSUBSIDIZED EMPLOYMENT.—For
purposes of subparagraph (A), the term
‘nonsubsidized employment’ means employment
with a private employer for wages.
‘‘(7) ADULT RECIPIENT.—For purposes of this
subsection:
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the term ‘adult recipient’
means an individual whose needs are met in
whole or part with payments of aid to families
with dependent children.
‘‘(B) INDIVIDUALS EXCLUDED.—The term
‘adult recipient’ shall not include—
‘‘(i) a dependent child (unless such
child is the custodial parent of another de-
pendent child); or
‘‘(ii) any parent who is a member of
a family eligible for aid to families with de-
pendent children by reason of the unem-
ployment of the parent who is the principal
earner.
‘‘(8) SINGLE-ADULT FAMILY.—For purposes of
this subsection, the term ‘single-adult family’ means
a family receiving aid to families with dependent
children which includes one adult recipient and at
least one dependent child.
‘‘(d) DETERMINATION OF PARTICIPATION RATES.—
‘‘(1) UNEMPLOYED PARENTS.—A State’s par-
ticipation rate for purposes of subsection (a)(2) shall
be the number, expressed as a percentage, equal
to—
‘‘(A) the average weekly number of individ-
uals described in subsection (a)(1) who partici-
pated in the program under this part during
such quarter, divided by
‘‘(B) the average weekly number of such
individuals who were required under subsection
(a)(1) to participate in the program under the
part during such quarter.
‘‘(2) NONCUSTODIAL PARENTS.—A State’s par-
ticipation rate for purposes of subsection (b)(2) shall
be the number, expressed as a percentage, equal
to—
‘‘(A) the average weekly number of individ-
uals described in subsection (b)(1) who partici-
pated in the program under this part during
such quarter, divided by
‘‘(B) the average weekly number of such
individuals who were required under subsection
(b)(1) to participate in the program under the
part during such quarter.
‘‘(3) ADULT
RECIPIENTS
IN
SINGLE-ADULT
FAMILIES.—A State’s participation rate for purposes
of subsection (c)(2) shall be the number, expressed
as a percentage, equal to—
‘‘(A) the average weekly number of individ-
uals described in subsection (c)(1) who partici-
pated in the program under this part during
such quarter, divided by
‘‘(B) the average weekly number of such
individuals who were required under subsection
(c)(1) to participate in the program under this
part.
‘‘COMMUNITY WORK SERVICE PROGRAM
‘‘SEC. 484. (a) IN GENERAL.—Each State with a
plan approved under part A shall establish a community
work service program.
‘‘(b) PROGRAM DESCRIBED.—An individual partici-
pating in a State community work service program shall
work for a public or nonprofit private sector organization
performing such tasks as determined appropriate by such
organization.
‘‘(c) ENCOURAGEMENT TO PROVIDE CHILD CARE
SERVICES.—An individual participating in a State com-
munity work service program may satisfy the applicable
participation requirement under subsection (c)(1)(A) of
section 483 if such individual provides child care services
to other individuals participating in the program in the
manner, and for the period of time each week, determined
appropriate by the State.
‘‘(d) MODIFICATION TO PAYMENT SCHEDULE FOR
PARTICIPANTS.—Any payments of aid under part A or the
Food Stamp Act of 1977 to the family of an individual
participating in a State community work service program
shall be made on a biweekly basis.
‘‘(e) BENEFITS BASED ON PERFORMANCE.—If an in-
dividual fails to meet the participation requirements im-
posed on such individual under section 483 with respect
to a State community work service program due to an un-
excused absence, the amount of aid under part A and the
Food Stamp Act of 1977 to be received by the family of
the individual participating in such program shall be re-
duced in proportion to the number of hours of
uncompleted work or job search under such program.
‘‘BENEFITS TO WAGES PROGRAM
‘‘SEC. 485. (a) IN GENERAL.—Each State with a
plan approved under part A shall establish a benefits to
wages program.
‘‘(b) PROGRAM DESCRIBED.—Under a State benefits
to wages program, an individual shall work for a qualified
employer (as defined in subsection (d)) and the Secretary
shall pay a wage subsidy in the amount determined under
subsection (c) to such employer on behalf of such individ-
ual. Such wage subsidy shall be in lieu of all or part of
any benefits described in subsection (c) which the individ-
ual would otherwise be eligible to receive. The State bene-
fits to wages program shall be designed to place individ-
uals 
participating 
in 
the 
program 
in 
long-term
nonsubsidized employment.
‘‘(c) AMOUNT OF WAGE SUBSIDY.—The amount of
the wage subsidy for an individual for a month is an
amount determined appropriate by the State which does
not exceed the sum of—
‘‘(1) the monthly amount that would otherwise
be payable as aid to families with dependent children
to the family of such individual, and
‘‘(2) the monthly cash value of the food stamp
benefits that would otherwise be available to such in-
dividual’s household,
determined as of the first day of the first full month of
the employment of such individual by a qualified employer.
‘‘(d) QUALIFIED EMPLOYER.—
‘‘(1) IN GENERAL.—For purposes of this sub-
section, an employer is qualified to receive a wage
subsidy under this subsection if—
‘‘(A) the employer is a private entity;
‘‘(B) the employer is approved by the State
to participate in its benefits to wages program;
and
‘‘(C) gross wages (as defined in section
209 but without regard to any dollar limitation
contained in such section) received by an indi-
vidual participating in the benefits to wages
program for any month are not less than the
amount determined under paragraph (2).
‘‘(2) WAGES BASED ON PERFORMANCE.—
‘‘(A) IN GENERAL.—An employer shall pay
to an individual participating in the benefits to
wages program for any month an amount equal
to the product of—
‘‘(i) the greater of—
‘‘(I) the hourly wage subsidy
amount determined under subpara-
graph (B); or
‘‘(II) the greater of the Federal
minimum wage or the applicable State
minimum wage; and
‘‘(ii) the number of hours worked by
such individual during such month.
‘‘(B) HOURLY WAGE SUBSIDY AMOUNT.—
The hourly wage subsidy amount determined
under this subparagraph with respect to an in-
dividual for any month is an amount equal to—
‘‘(i) the amount of the wage subsidy
under subsection (c); divided by
‘‘(ii) the number of hours the individ-
ual is required to work in the benefits to
wages program for the month.
‘‘(3) SELECTION OF EMPLOYERS.—In selecting
employers under subparagraph (B) of paragraph (1),
the State shall give priority to those employers dem-
onstrating an ability to place individuals in long-
term nonsubsidized employment.
‘‘(e) TREATMENT OF WAGES.—Under the State ben-
efits to wages program, wages paid to an individual by
a qualified employer shall be considered earned income for
purposes of any provision of law, except that such wages
shall not be taken into account in determining the eligi-
bility of such individual for the programs described in sub-
section (c) during such individual’s participation in the
program.
‘‘(f) USE
OF FEDERAL FUNDS.—Notwithstanding
any other provision of law, for purposes of computing the
amount of the Federal payment to a State with respect
to any amount determined under subsection (c) with re-
spect to an individual, such amount shall be treated as
if paid to the individual under the applicable program.
‘‘(g) LIMIT ON PARTICIPATION.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), an individual’s participation in a State
benefits to wages program shall be limited to 18
months.
‘‘(2) STATE OPTION.—A State may reduce the
number of months referred to in paragraph (1) as
determined appropriate by the State.
‘‘PENALTIES ON INDIVIDUALS WHO FAIL TO MEET
PARTICIPATION REQUIREMENT
‘‘SEC. 486. (a) IN GENERAL.—Except as provided in
subsection (b) and section 484(e), the State shall have the
option to impose a penalty on any individual who fails to
adequately participate in the program consisting of—
‘‘(1) a reduction in the amount of aid to fami-
lies with dependent children received by the individ-
ual’s family, as determined appropriate by the State;
or
‘‘(2) a denial of eligibility for such aid to the
individual’s family on a temporary or permanent
basis, as determined appropriate by the State.
‘‘(b) PENALTIES RELATING TO NONCUSTODIAL PAR-
ENTS.—
‘‘(1) NO PENALTIES AGAINST FAMILY FOR NON-
COMPLIANCE OF NONCUSTODIAL PARENT.—No pen-
alty shall be imposed under this section or section
484(e) against a family receiving aid to families with
dependent children in the case of a noncustodial par-
ent’s failure to comply with section 483(a).
‘‘(2) PENALTY
FOR
CERTAIN
NONCUSTODIAL
PARENTS.—If an individual described in paragraph
(1) of section 483(a) knowingly and willfully fails to
participate in a State community work service pro-
gram in accordance with such section, such individ-
ual shall be subject to imprisonment in accordance
with State law.
‘‘NONDISPLACEMENT OF WORKERS
‘‘SEC. 487. No organization or entity participating in
a State community work service program or a State bene-
fits to wages program shall replace any employed worker
with an individual participating in the program under this
part. Such an individual may be placed in any position
offered by such organization or entity—
‘‘(1) that is a new position;
‘‘(2) that is a position that became available in
the normal course of conducting the business of the
organization or entity;
‘‘(3) that involves performing work that would
otherwise be performed on an overtime basis by a
worker who is not an individual participating in the
program under this part; or
‘‘(4) that is a position which became available
by shifting a current employee to an alternate posi-
tion’’.
(2) CONFORMING AMENDMENTS.—(A) Section
402(a) (42 U.S.C. 602(a)) is amended—
(i) by striking ‘‘and’’ at the end of para-
graph (44);
(ii) by striking the period at the end of
paragraph (45) and inserting ‘‘; and’’; and
(iii) by inserting after paragraph (45) the
following new paragraph:
‘‘(46) provide that the State agency shall pro-
vide assurances satisfactory to the Secretary that
the State has in effect laws providing for the impris-
onment of any individual who fails to comply with
section 483(b)(1) for a term determined appropriate
by the State.’’.
(B) Section 16 of the Food Stamp Act of 1977
(7 U.S.C. 2025) is amended by adding at the end
the following new subsection:
‘‘(l) If a State agency of a State informs the Sec-
retary that an individual who is participating in a benefits
to wages program under the welfare and dependency re-
duction program carried out under part F of title IV of
the Social Security Act is a member of a household that
participates in the food stamp program—
‘‘(1) the Secretary shall pay to the State an
amount equal to the value of the food stamp benefits
the household is otherwise eligible to receive under
this Act; and
‘‘(2) the State shall expend the amount in ac-
cordance with such part rather than for food stamp
benefits the household would receive but for the op-
eration of this subsection.’’.
(c) PAYMENTS TO STATES FOR WELFARE AND DE-
PENDENCY REDUCTION PROGRAMS.—
(1) IN
GENERAL.—Subsection (k) of section
403 (42 U.S.C. 603) is amended to read as follows:
‘‘(k)(1) For purposes of conducting its workfare and
dependency reduction program under part F, a State shall
receive payments for a calendar quarter in an amount
equal to the sum of—
‘‘(A) the product of—
‘‘(i) the applicable dollar amount under
paragraph (2)(A), and
‘‘(ii) the average weekly number of individ-
uals who are unemployed parents described in
section 483(a)(1) who participated in the pro-
gram under part F during such quarter;
‘‘(B) the product of—
‘‘(i) the applicable dollar amount under
paragraph (2)(A), and
‘‘(ii) the average weekly number of individ-
uals who are noncustodial parents described in
section 483(b)(1) who participated in the pro-
gram under part F during such quarter; and
‘‘(C) the product of—
‘‘(i) the applicable dollar amount under
paragraph (2)(B), and
‘‘(ii) the average weekly number of individ-
uals who are adult recipients of aid to families
with dependent children in single-adult families
described in section 483(c)(1) who participated
in the program under part F during such quar-
ter.
‘‘(2)(A) For purposes of subparagraphs (A) and (B)
of paragraph (1), the applicable dollar amount is—
‘‘(i) for fiscal year 1995, $250; and
‘‘(ii) for fiscal year 1996 and succeeding fiscal
years, the amount determined under this subpara-
graph for the preceding fiscal year updated by the
percentage change in the consumer price index for
all urban consumers (United States city average)
during such preceding fiscal year.
‘‘(B) For purposes of subparagraph (C) of paragraph
(1), the applicable dollar amount is—
‘‘(i) for fiscal year 1995, $625; and
‘‘(ii) for fiscal year 1996 and succeeding fiscal
years, the amount determined under this clause for
the preceding fiscal year updated by the percentage
change in the consumer price index for all urban
consumers (United States city average) during such
preceding fiscal year.’’.
(2) CONFORMING
AMENDMENT.—Section 403
(42 U.S.C. 603) is amended by striking subsection
(l).
(d) ADJUSTMENTS TO MATCHING PERCENTAGE FOR
AFDC ADMINISTRATIVE COSTS.—
(1) 
IN
GENERAL.—Section 
403(a)(3) 
(42
U.S.C. 603(a)(3)) is amended by striking ‘‘50 per-
cent’’ and inserting ‘‘the applicable percentage for
such quarter (as determined under subsection (o))’’.
(2) APPLICABLE
PERCENTAGE.—Section 403
(42 U.S.C. 603) is amended by adding at the end
the following new subsection:
‘‘(o)(1) The applicable percentage determined under
this subsection for a quarter is a percentage equal to the
average of the percentages determined under paragraph
(2) for each category of individuals described in paragraph
(3).
‘‘(2) The percentage determined under this para-
graph for a category of individuals described in paragraph
(3) for a quarter is—
‘‘(A) 50 percent if the average weekly number
of individuals in the category who actually partici-
pate in the State’s workfare and dependency reduc-
tion program under part F during the quarter ex-
ceeds 99 percent of the average weekly number of
individuals in the category required to participate in
such program in accordance with the applicable
State participation rate requirement for such cat-
egory under section 483;
‘‘(B) 40 percent, if the average weekly number
of individuals in the category who actually partici-
pate in such program for a quarter is at least 90
percent but less than 100 percent of the average
weekly number of individuals in the category re-
quired to participate in such program in accordance
with the applicable State participation rate require-
ment for such category under section 483;
‘‘(C) 25 percent, if the average weekly number
of individuals in the category who actually partici-
pate in such program for a quarter is at least 70
percent but less than 90 percent of the average
weekly number of individuals in the category re-
quired to participate in such program in accordance
with the applicable State participation rate require-
ment for such category under section 483; and
‘‘(D) 0 percent, if the average weekly number
of individuals in the category who actually partici-
pate in such program for a quarter is less than 70
percent of the average weekly number of individuals
in the category required to participate in such pro-
gram in accordance with the applicable State partici-
pation rate requirement for such category under sec-
tion 483.
‘‘(3) The categories of individuals described in this
paragraph are the following:
‘‘(A) Individuals who are unemployed parents
described in section 483(a)(1).
‘‘(B) Individuals who are noncustodial parents
described in section 483(b)(1).
‘‘(C) Individuals who are adult recipients of aid
to families with dependent children described in sec-
tion 483(c)(1).’’.
(e) EDUCATIONAL ACTIVITIES FOR CUSTODIAL PAR-
ENTS UNDER 19.—Section 402(a) (42 U.S.C. 602(a)), as
amended by subsection (b)(2), is amended—
(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 new paragraph:
‘‘(47) provide that—
‘‘(A) each custodial parent receiving aid
under the plan who has not attained 19 years
of age and has not successfully completed a
high-school education (or its equivalent) shall
participate in an educational activity; and
‘‘(B) the State agency may—
‘‘(i) require a parent described in sub-
paragraph (A) to participate in educational
activities directed toward the attainment of
a high-school diploma or its equivalent on
a full-time (as defined by the educational
provider) basis; or
‘‘(ii) require a parent described in
subparagraph (A) to participate in training
or work activities (in lieu of the edu-
cational activities under such subpara-
graph) if such parent fails to make good
progress in successfully completing such
educational activities or if it is determined
(prior to any assignment of the individual
to such educational activities) pursuant to
an educational assessment that participa-
tion in such educational activities is inap-
propriate for such parent.’’.
(f) AMENDMENTS REGARDING EARNED INCOME TAX
CREDIT.—
(1) IN
GENERAL.—Subsection (e) of section
3507 of the Internal Revenue Code of 1986 (relating
to earned income eligibility certificates) is amended
by adding at the end the following new paragraph:
‘‘(6) SPECIAL RULE WITH RESPECT TO CER-
TAIN
EMPLOYEES.—An employer shall obtain an
earned income eligibility certificate from each em-
ployee who is employed by such employer under the
benefits to wages program under section 485 of the
Social Security Act.’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall apply to taxable years begin-
ning after December 31, 1994.
SEC. 102. WORK REQUIREMENT FOR ABLE-BODIED NON-
PARENTS IN FOOD STAMP PROGRAM.
(a) IN GENERAL.—Section 6 of the Food Stamp Act
of 1977 (7 U.S.C. 2015) is amended by adding at the end
the following new subsection:
‘‘(i)(1) Except as otherwise provided in this sub-
section, no individual who is a member of a household that
is otherwise eligible to receive food stamps shall be eligible
to receive food stamps as a member of that or any other
household if the individual has not performed at least 32
hours of work on behalf of a State or a political subdivi-
sion of a State, through a program established by the
State or political subdivision, during the month preceding
the month of an allotment.
‘‘(2) A household member shall be exempt from the
requirements of paragraph (1) if the member is—
‘‘(A) a parent residing with a dependent child
under 18 years of age;
‘‘(B) a member of a household with responsibil-
ity for the care of an incapacitated person;
‘‘(C) mentally or physically unfit;
‘‘(D) under 18 years of age; or
‘‘(E) 63 years of age or older.
‘‘(3) No State or political subdivision of a State par-
ticipating in a program established under this subsection
shall replace any employed worker with an individual par-
ticipating in the program. Such an individual may be
placed in any position offered by the State or political sub-
division that—
‘‘(A) is a new position;
‘‘(B) is a position that became available in the
normal course of conducting the business of the
State or political subdivision;
‘‘(C) involves performing work that would oth-
erwise be performed on an overtime basis by a work-
er who is not an individual participating in the pro-
gram established under this subsection; or
‘‘(D) that is a position which became available
by shifting a current employee to an alternate posi-
tion.
‘‘(4)(A) The Secretary shall make a monthly payment
to each State and political subdivision of a State that oper-
ates a program established under this subsection for the
month preceding the month of an allotment.
‘‘(B) The amount of a payment that is made to a
State or political subdivision under subparagraph (A) shall
equal the product obtained by multiplying—
‘‘(i) $20 (as adjusted under subparagraph (C));
times
‘‘(ii) the number of individuals who performed
at least 32 hours of work on behalf of the State or
political subdivision, through a program established
by the State or political subdivision under this sub-
section, during the month preceding the month of
the allotment.
‘‘(C) The Secretary shall adjust the amount referred
to in subparagraph (B)(i) on October 1, 1995, and each
October 1 thereafter, to reflect changes in the Consumer
Price Index for All Urban Consumers published by the
Bureau of Labor Statistics, as appropriately adjusted by
the Bureau of Labor Statistics after consultation with the
Secretary concerning the application of the Index to this
paragraph, for the 12 months ending the preceding June
30.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 6(d)(4)(M)(ii) of the Food Stamp
Act of 1977 (7 U.S.C. 2015(d)(4)(M)(ii)) is amend-
ed by striking ‘‘section 16 (a), (c), and (h)’’ and in-
serting ‘‘subsections (a) and (c) of section 16’’.
(2) Section 16 of such Act (7 U.S.C. 2025) is
amended—
(A) by striking subsection (h); and
(B) by redesignating subsections (i) and (j)
as subsections (h) and (i), respectively.
(3) Section 20 of such Act (7 U.S.C. 2029) is
amended by striking subsection (g).
(4) Section 21 of such Act (7 U.S.C. 2030) is
amended—
(A) in subsection (b)(4)(B)—
(i) by striking ‘‘under—’’ and all that
follows through ‘‘subsections (a)’’ in clause
(i) and inserting ‘‘under subsections (a)’’;
and
(ii) by striking ‘‘program; and’’ and
all that follows through ‘‘except that’’ and
inserting ‘‘program, except that’’; and
(B) in subsection (c)(2)(B), by striking
‘‘subsections (a), (g), and (h) of section 16’’
and inserting ‘‘subsections (a) and (g) of sec-
tion 16’’.
(5) Section 22(d)(1)(B)(ii) of such Act (7
U.S.C. 2031(d)(1)(B)(ii)) is amended by striking
‘‘subsections (a), (g), (h)(2), and (h)(3) of section
16’’ and inserting ‘‘subsections (a) and (g) of section
16’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall become effective 180 days after the date
of enactment of this Act.
SEC. 103. REQUIREMENT THAT CERTAIN AFDC APPLICANTS
CONDUCT JOB SEARCH ACTIVITIES.
(a) DELAY IN BENEFIT FOR CERTAIN FAMILIES.—
Section 402(a) (42 U.S.C. 602(a)), as amended by section
101 (b)(2)(A) and (e), 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 new paragraph:
‘‘(48) provide that if a family is applying for
aid under the plan and such family—
‘‘(A) has sufficient liquid assets to meet
the basic needs of the family for a 1-month pe-
riod (as determined by the State); and
‘‘(B) does not include any children under
age 5;
such family shall not receive such aid until a mem-
ber of the family who has attained age 18 has con-
ducted job search activities determined appropriate
by the State for a 1-month period.’’.
(b) JOB SEARCH REQUIREMENT FOR CERTAIN INDI-
VIDUALS.—Section 402(a) (42 U.S.C. 602(a)), as amend-
ed by section 101 (b)(2)(A) and (e) and subsection (a),
is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(47);
(2) by striking the period at the end of para-
graph (48) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (48) the fol-
lowing new paragraph:
‘‘(49) provide that if a family applying for aid
under the plan—
‘‘(A) is not described in paragraph (48),
and
‘‘(B) does not include any children under
age 5,
a member of the family who has attained age 18
shall conduct job search activities determined appro-
(B) the illegitimacy rate among white
Americans has risen tenfold, from 2.29 percent
in 1960 to 22 percent today;
(C) the total of all out-of-wedlock births
between 1970 and 1991 has risen from 10 per-
cent to 30 percent and if the current trend con-
tinues, 50 percent of all births by the year 2015
will be out-of-wedlock;
(D) 82 percent of illegitimate births among
whites are to women with a high school edu-
cation or less;
(E) the one-parent family is six times more
likely to be poor than the two-parent family;
(F) children born into families receiving
welfare assistance are three times more likely to
be on welfare when they reach adulthood;
(G) teenage single parent mothering is the
single biggest contributor to low birth weight
babies;
(H) children born out-of-wedlock are more
likely to experience low verbal cognitive attain-
ment, child abuse, and neglect;
(I) young people from single parent or
stepparent families are two to three times more
likely to have emotional or behavioral problems
than those from intact families;
(J) young white women who were raised in
a single parent family are 164 percent more
likely to have children out-of-wedlock, 111 per-
cent more likely to become parents as teen-
agers, and 92 percent more likely to have their
marriages end in divorce;
(K) the younger the single parent mother,
the less likely she is to finish high school;
(L) young women who have children before
finishing high school are more likely to receive
welfare assistance for a longer period of time;
(M) between 1985 and 1990, the public
cost of births to teenage mothers under the aid
to families with dependent children program,
the food stamp program, and the medicaid pro-
gram has been estimated at $120 billion;
(N) the absence of a father in the life of
a child has a negative effect on school perform-
ance and peer adjustment;
(O) the likelihood that a young black man
will engage in criminal activities doubles if he
is raised without a father and triples if he lives
in a neighborhood with a high concentration of
single parent families; and
(P) the greater the incidence of single par-
ent families in a neighborhood, the higher the
incidence of violent crime and burglary; and
(4) in light of this demonstration of the crisis
in our Nation, the reduction of out-of-wedlock births
is an important government interest and the policy
contained in provisions of this title address the cri-
sis.
(b) ELIMINATION OF AFDC BENEFITS TO YOUNG
UNWED PARENTS.—
(1) IN GENERAL.—
(A) STATE
PLAN
AMENDMENT.—Section
402(a) (42 U.S.C. 602(a)), as amended by sec-
tions 101 (b)(2)(A) and (e) and 103 (a) and
(b), is amended—
(i) by striking ‘‘and’’ at the end of
paragraph (48);
(ii) by striking the period at the end
of paragraph (49) and inserting ‘‘; and’’;
and
(iii) by inserting after paragraph (49)
the following new paragraph:
‘‘(50)(A) except as provided in subparagraph
(B), if a child is born to an individual who is unmar-
ried and who has not attained age 21 (or another
age that exceeds 21, as determined appropriate by
the State), aid to families with dependent children
under the State plan shall not be payable with re-
spect to the child and the parents of the child; and
‘‘(B) provide that subparagraph (A) shall not
apply—
‘‘(i) if, after the birth of the child—
‘‘(I) the custodian of the child marries
an individual who assumes lawful paternity
or permanent legal guardianship and fi-
nancial responsibility for the child; or
‘‘(II) the child is legally adopted;
‘‘(ii) if the parents of the dependent child
were married during the 10-month period pre-
ceding the birth of the child and 1 parent died
prior to the birth of the child; or
‘‘(iii) with respect to the child after the
child has attained age 18.’’.
(B) EFFECTIVE DATE.—The amendments
made by subparagraph (A) shall apply to chil-
dren born on or after the date that is 1 year
after the date of the enactment of this Act.
(2) INCREASE IN APPLICABLE AGE.—
(A) IN GENERAL.—Section 402(a)(50)(A)
(42 U.S.C. 602(a)(50)(A)), as added by para-
graph (1), is amended by striking ‘‘21’’ each
place it appears and inserting ‘‘26’’.
(B) EFFECTIVE DATE.—The amendments
made by subparagraph (A) shall apply to chil-
dren born on or after the date that is 4 years
after the date of the enactment of this Act.
(c) FOOD STAMPS.—
(1) IN GENERAL.—
(A) ELIMINATION OF BENEFIT.—Section 6
of the Food Stamp Act of 1977 (7 U.S.C.
2015), as amended by section 102(a), is amend-
ed by adding at the end the following new sub-
section:
‘‘(j)(1) Except as provided in paragraph (2), if a child
is born to an individual who is unmarried and who has
not attained age 21 (or another age that exceeds 21, as
determined appropriate by the State), the child and the
parents of the child shall be ineligible to receive food
stamps.
‘‘(2) Paragraph (1) shall not apply—
‘‘(A) if after the birth of the child—
‘‘(i) the custodian of the child marries an
individual who assumes lawful paternity or per-
manent legal guardianship and financial respon-
sibility for the child; or
‘‘(ii) the child is legally adopted;
‘‘(B) if the parents of the child were married
during the 10-month period preceding the birth of
the child and 1 parent died prior to the birth of the
child; or
‘‘(C) with respect to the child after the child
has attained age 18.’’.
(B) 
CONFORMING
AMENDMENT.—Para-
graph (1) of the second sentence of section 3(o)
of such Act (7 U.S.C. 2012(o)) is amended by
inserting after the comma at the end the follow-
ing: ‘‘except as provided in subsection (j) of sec-
tion 6,’’.
(C) EFFECTIVE DATE.—The amendments
made by this paragraph shall apply to children
born on or after the date that is 1 year after
the date of enactment of this Act.
(2) INCREASE IN APPLICABLE AGE.—
(A) IN GENERAL.—Section 6(j)(1) of the
Food Stamp Act of 1977 (as added by para-
graph (1)) is amended by striking ‘‘21’’ each
place it appears and inserting ‘‘26’’.
(B) EFFECTIVE
DATE.—The amendment
made by this paragraph shall apply to children
born on or after the date that is 4 years after
the date of enactment of this Act.
(d) HOUSING PROGRAMS.—
(1) IN GENERAL.—
(A) PROMOTION OF FAMILIES.—The Unit-
ed States Housing Act of 1937 (42 U.S.C.
1437 et seq.) is amended—
(i) in section 6, by adding at the end
the following new subsection:
‘‘(q) PROMOTION OF FAMILIES.—
‘‘(1) IN GENERAL.—Each contract described in
subsection (a) shall provide that, if a child is born
to an individual who is unmarried and who has not
attained age 21, neither the child nor the parents of
the child shall be eligible to receive assistance under
this Act.
‘‘(2) EXCEPTION.—Paragraph (1) shall not
apply—
‘‘(A) if after the birth of the child—
‘‘(i) the custodian of the child marries
an individual who assumes lawful paternity
or permanent legal guardianship and fi-
nancial responsibility for the child; or
‘‘(ii) the child is legally adopted;
‘‘(B) if the parents of the child were mar-
ried during the 10-month period preceding the
birth of the child and 1 parent died prior to the
birth of the child; or
‘‘(C) with respect to the child after the
child has attained age 18.’’; and
(ii) in section 8, by adding at the end
the following new subsection:
‘‘(z) PROMOTION OF FAMILIES.—
‘‘(1) IN GENERAL.—Each contract to make as-
sistance payments described in subsection (a) shall
provide that, if a child is born to an individual who
is unmarried and who has not attained age 21, nei-
ther the child nor the parents of the child shall be
eligible to receive assistance under this section.
‘‘(2) EXCEPTION.—Paragraph (1) shall not
apply—
‘‘(A) if after the birth of the child—
‘‘(i) the custodian of the child marries
an individual who assumes lawful paternity
or permanent legal guardianship and fi-
nancial responsibility for the child; or
‘‘(ii) the child is legally adopted;
‘‘(B) if the parents of the child were mar-
ried during the 10-month period preceding the
birth of the child and 1 parent died prior to the
birth of the child; or
‘‘(C) with respect to the child after the
child has attained age 18.’’.
(B) EFFECTIVE DATE.—The amendments
made by subparagraph (A) shall apply to chil-
dren born on or after the date that is 1 year
after the date of the enactment of this Act.
(2) AUTOMATIC
INCREASE
IN
APPLICABLE
AGE.—
(A) IN
GENERAL.—Section 6(q) of the
United States Housing Act of 1937 (42 U.S.C.
1437d(q)), as added by paragraph (1)(A)(i), is
amended by striking ‘‘21’’ and inserting ‘‘26’’.
(B) IN
GENERAL.—Section 8(z) of the
United States Housing Act of 1937 (42 U.S.C.
1437f(z)), as added by paragraph (1)(A)(ii), is
amended by striking ‘‘21’’ and inserting ‘‘26’’.
(C) EFFECTIVE DATE.—The amendments
made by this paragraph shall apply to children
born on or after the date that is 4 years after
the date of the enactment of this Act.
(3) DISCRETIONARY INCREASE IN APPLICABLE
AGE.—Notwithstanding any other provision of law,
beginning on the effective date of the amendments
made by paragraph (1)(A), the Governor of each
State shall have the option to increase the minimum
age for assistance set forth in section 6(q) or 8(z)
of United States Housing Act of 1937, as added by
paragraph (1)(A), for individuals residing in the
State.
SEC. 202. BENEFIT PROVISIONS REGARDING ADDITIONAL
CHILDREN.
(a) AFDC.—
(1) IN GENERAL.—Section 402(a) (42 U.S.C.
602(a)), as amended by sections 101 (b)(2)(A) and
(e), 103(a) and (b), and 201(b), is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (49);
(B) by striking the period at the end of
paragraph (50) and inserting ‘‘; and’’; and
(C) by inserting after paragraph (50) the
following new paragraph:
‘‘(51)(A) provide that aid to families with de-
pendent children under the State plan shall not be
payable with respect to a child if the custodial par-
ent of such child was, at the time of the child’s
birth—
‘‘(i) a recipient of aid under the State
plan; or
‘‘(ii) an individual who received such aid
anytime during the 10-month period ending
with the birth of the child; and
‘‘(B) provide that subparagraph (A) shall not
apply with respect to the child after the child has at-
tained age 18.’’.
(2) EFFECTIVE DATE.—The amendments made
by paragraph (1) shall apply to children born on or
after the date that is 1 year after the date of the
enactment of this Act.
(b) FOOD STAMPS.—
(1) IN
GENERAL.—Section 6 of the Food
Stamp Act of 1977 (7 U.S.C. 2015), as amended by
section 102(a) and 201(c), is amended by adding at
the end the following new subsection:
‘‘(k) If a child is born to a parent that is a recipient
of aid to families with dependent children under a State
plan under section 402 of the Social Security Act, or a
parent who received such aid anytime during the 10-
month period ending with the birth of the child, the child
shall be ineligible to participate in the food stamp program
until the child attains age 18.’’.
(2) CONFORMING AMENDMENT.—Paragraph (1)
of the second sentence of section 3(o) of such Act
(7 U.S.C. 2012(o)), as amended by section
201(c)(1)(B), is amended by striking ‘‘subsection
(j)’’ and inserting ‘‘subsections (j) and (k)’’.
(3) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall apply to children born on or
after the date that is 1 year after the date of enact-
ment of this Act.
SEC. 203. PROVISIONS RELATING TO PATERNITY ESTAB-
LISHMENT.
(a) IN
GENERAL.—Section 402(a) (42 U.S.C.
602(a)), as amended by sections 101(b)(2)(A) and (e),
103 (a) and (b), 201(b), and 202(a), is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(50);
(2) by striking the period at the end of para-
graph (51) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (51) the fol-
lowing new paragraph:
‘‘(52) provide that—
‘‘(A) except as provided in subparagraphs
(B) and (C), if a family applying for aid under
this part includes a child who has not attained
age 18 and who was born on or after January
1, 1993, with respect to whom paternity has
not been established, aid to families with de-
pendent children paid to such family under the
State plan for any month shall be reduced—
‘‘(i) by the amount of aid allocable to
such child (until the child attains age 18);
and
‘‘(ii) if the parent or caretaker relative
of such child is not the parent or caretaker
relative of another child for whom aid is
available, by the amount of aid allocable to
such parent or caretaker relative;
‘‘(B) notwithstanding subparagraph (A),
aid under the State plan shall be available with
respect to a dependent child who is up to 4
months of age for whom paternity has not been
established if the parent or caretaker relative of
the child provides the name, address, and such
other identifying information as the State may
require of an individual who may be the father
of the child; and
‘‘(C) the State may exempt up to 10 per-
cent of all families applying for aid under this
part which include a child who was born on or
after January 1, 1993, and with respect to
whom parternity has not been established, from
the reduction imposed under subparagraph
(A).’’.
(b) PROVISION OF AID IN VIOLATION OF PATERNITY
ESTABLISHMENT
REQUIREMENTS.—Section 404 (42
U.S.C. 604) is amended by adding at the end the following
new subsection:
‘‘(e) If a State expends funds for aid to families with
dependent children in violation of the requirements of
paragraph (51) in any fiscal year but such expenditures
do not constitute a failure to substantially to comply with
such requirements, the Secretary shall reduce the amount
to be paid to such State under this part for the succeeding
fiscal year by an amount equal to the amount of funds
misused by such State.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to individuals applying
for aid to families with dependent children under part A
of title IV of the Social Security Act (42 U.S.C. 601 et
seq.) in calendar quarters beginning on or after the date
that is 60 days after the date of the enactment of this
Act.
Subtitle B—Grants for Assistance
to Children Born Out-Of-Wedlock
SEC. 211. GRANTS TO STATES.
Title IV (42 U.S.C. 601 et seq.) is amended by insert-
ing after part B the following:
‘‘PART C—GRANTS FOR ASSISTANCE TO CHILDREN
BORN OUT-OF-WEDLOCK
‘‘PURPOSE
‘‘SEC. 440. (a) IN GENERAL.—The purpose of this
part is to grant a qualified State the flexibility and re-
sources necessary to provide such services and activities
as the State deems appropriate to discourage out-of-wed-
lock births and care for children born out-of-wedlock.
‘‘(b) QUALIFIED STATE DEFINED.—For purposes of
this part, the term ‘qualified State’ means a State which—
‘‘(1) has a plan approved under section 402,
and
‘‘(2) has certified to the Secretary that—
‘‘(A) the payments made to the State
under this part will be used by the State in ac-
cordance with this part, and
‘‘(B) not less frequently than every 2
years, the State will audit the expenditures of
the amounts paid to the State under this part.
‘‘USE OF GRANT FUNDS
‘‘SEC. 441. (a) IN GENERAL.—Except as provided in
subsection (b), each qualified State that receives grant
funds under this part may use such funds—
‘‘(1) to establish or expand programs to reduce
out-of-wedlock pregnancies,
‘‘(2) to promote adoption,
‘‘(3) to establish and operate orphanages,
‘‘(4) to establish and operate closely supervised
residential group homes for unwed mothers, or
‘‘(5) in any manner that the State deems ap-
propriate to accomplish the purpose of this part.
‘‘(b) PROHIBITIONS ON USE OF FUNDS.—
‘‘(1) NO INDIVIDUAL PAYMENTS.—A qualified
State that receives grant funds under this part shall
not, directly or indirectly, use such funds for provid-
ing payments to an individual who is the parent of
a child born out-of-wedlock and such child if the
parent and the child live—
‘‘(A) in a household headed by such par-
ent,
‘‘(B) in the household of a relative, or
‘‘(C) in any other conventional residential
or community setting.
‘‘(2) NO
FUNDS
USED
FOR
ABORTION.—No
grant funds received by a qualified State under this
part shall be used for making abortion available as
a method of family planning or for any counseling
or advising with respect to abortion.
‘‘(c) PENALTY FOR MISUSE OF FUNDS.—If a quali-
fied State fails to comply with subsection (b) in any fiscal
year, the Secretary shall reduce the amount to be paid
to such State under this part for the succeeding fiscal year
by an amount equal to the amount of funds misused by
such State.
‘‘AMOUNT OF GRANT
‘‘SEC. 442. (a) IN GENERAL.—The Secretary shall
make a payment to each qualified State for fiscal years
1995 through 1999 in an amount equal to the Federal
savings amount for the State determined under subsection
(b)(1) for the applicable fiscal year.
‘‘(b) DETERMINATION OF GRANT AMOUNT.—
‘‘(1) 
IN
GENERAL.—The 
Federal 
savings
amount for a State for a fiscal year is an amount
that is 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 (as
determined under paragraph (3)).
‘‘(2) PER CAPITA AMOUNT.—The State per cap-
ita amount for a fiscal year determined under this
paragraph is the sum of—
‘‘(A) the average per capita amount that
the Secretary estimates the State will receive
under section 403 of the Social Security Act
during the fiscal year for providing aid to fami-
lies with dependent children to individuals eligi-
ble to receive such aid; and
‘‘(B) the average per capita amount that
the Secretary estimates individuals who are re-
ceiving aid to families with dependent children
in the State will receive under the food stamp
program under the Food Stamp Act of 1977
during the fiscal year.
‘‘(3) STATE EXCLUDED POPULATION.—
‘‘(A) IN
GENERAL.—The Congressional
Budget Office shall determine an excluded pop-
ulation for each qualified State for each fiscal
year in accordance with this paragraph.
‘‘(B) DETERMINATION.—A State’s ex-
cluded population for a fiscal year shall equal
the sum of—
‘‘(i) the number of excluded children
for the State for the fiscal year as deter-
mined under subparagraph (C);
‘‘(ii) the number of excluded parents
for the State for the fiscal year as deter-
mined under subparagraph (D); and
‘‘(iii) the number of individuals in the
phase-in population for the State for the
fiscal year as determined under subpara-
graph (E).
‘‘(C) EXCLUDED CHILDREN.—
‘‘(i) IN GENERAL.—The number of ex-
cluded children for a State for a fiscal year
shall be—
‘‘(I) for fiscal year 1995, zero;
‘‘(II) for fiscal year 1996, 50
percent of the monthly average num-
ber of base year excluded children (as
defined in clause (ii)) who were under
age 1 during the base year (as defined
in clause (iii));
‘‘(III) for fiscal year 1997, the
sum of—
‘‘(aa) the monthly average
number of base year excluded
children who were under age 1
during the base year; and
‘‘(bb) 50 percent of the
monthly average number of base
year excluded children who were
over age 1 and under age 2 dur-
ing the base year;
‘‘(IV) for fiscal year 1998, the
sum of—
‘‘(aa) the monthly average
number of base year excluded
children who were under age 2
during the base year; and
‘‘(bb) 50 percent of the
monthly average number of base
year excluded children who were
over age 2 and under age 3 dur-
ing the base year; and
‘‘(V) for fiscal year 1999, the
sum of—
‘‘(aa) the monthly average
number of base year excluded
children who were under age 3
during the base year; and
‘‘(bb) 50 percent of the
monthly average number of base
year excluded children who were
over age 3 and under age 4 dur-
ing the base year.
‘‘(ii) BASE
YEAR
EXCLUDED
CHIL-
DREN.—The term ‘base year excluded chil-
dren’ means children who received aid
under the State’s plan during the base
year who would not have been eligible for
such aid if section 402(a)(50) (as in effect
during the applicable fiscal year) had been
in effect at the time such children were
born.
‘‘(iii) BASE YEAR.—For purposes of
this part, the term ‘base year’ means—
‘‘(I) 1993, if the Congressional
Budget Office is able to determine an
excluded population for each State for
each fiscal year that such a deter-
mination is required using data pro-
vided by the National Integrated
Quality Control System operated by
the 
Department 
of 
Health 
and
Human Services and other relevant
data sources, or
‘‘(II) 1993, or another period de-
termined appropriate by the Sec-
retary, based on a survey conducted
or approved by the Secretary.
‘‘(D) EXCLUDED PARENTS.—The number
of excluded parents for a State for a fiscal year
shall be the number of parents excluded in con-
nection with the exclusion of their children
under subparagraph (C).
‘‘(E) PHASE-IN
POPULATION
ADJUSTED
FOR DATE OF ENACTMENT.—
‘‘(i) FISCAL
YEAR
1995.—For fiscal
year 1995, the phase-in population for a
State shall be the product of subclauses
(I), (II), and (III):
‘‘(I) 4.17 percent.
‘‘(II) The average monthly num-
ber of base year excluded children (as
defined in clause (ii) of subparagraph
(C)) in the State who were under age
1 during the base year (as defined in
clause (iii) of subparagraph (C)) and
the number of parents excluded in
connection with such children.
‘‘(III) The number of months (in
whole or in part) by which the date of
the enactment of the Real Welfare Re-
form Act of 1994 precedes October 1,
1994.
‘‘(ii) SUCCEEDING
FISCAL
YEARS.—
For fiscal year 1996 and succeeding fiscal
years, the phase-in population for a State
shall be the product of subclauses (I), (II),
(III), and (IV):
‘‘(I) 4.17 percent.
‘‘(II) The average monthly num-
ber of base year excluded children (as
defined in clause (ii) of subparagraph
(C)) in the State who were under age
1 during the base year (as defined in
clause (iii) of subparagraph (C)) and
the number of parents excluded in
connection with such children.
‘‘(III) The number of months (in
whole or in part) by which the date of
the enactment of the Real Welfare Re-
form Act of 1994 precedes or succeeds
October 1, 1994.
‘‘(IV)(aa) If the date of the en-
actment of the Real Welfare Reform
Act of 1994 precedes October 1,
1994, 1; or
‘‘(bb) If the date of the enact-
ment of the Real Welfare Reform Act
of 1994 succeeds October 1, 1994,
-1.’’.
Subtitle C—Removal of Barriers to
Interethnic Adoption
SEC. 221. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds that—
(1) nearly 500,000 children are in foster care in
the United States;
(2) tens of thousands of children in foster care
are waiting for adoption;
(3) 2 years and 8 months is the median length
of time that children wait to be adopted;
(4) child welfare agencies should work to elimi-
nate racial, ethnic, and national origin discrimina-
tion and bias in adoption and foster care recruit-
ment, selection, and placement procedures; and
(5) active, creative, and diligent efforts are
needed to recruit parents, from every race and cul-
ture, for children needing foster care or adoptive
parents.
(b) PURPOSE.—The purpose of this subtitle is to de-
crease the length of time that children wait to be adopted
and to prevent discrimination in the placement of children
on the basis of race, color, or national origin.
SEC. 222. MULTIETHNIC PLACEMENTS.
(a) ACTIVITIES.—
(1) PROHIBITION.—An agency, or entity, that
receives Federal assistance and is involved in adop-
tion or foster care placements may not—
(A) categorically deny to any person the
opportunity to become an adoptive or a foster
parent, on the basis of the race, color, or na-
tional origin of the adoptive or foster parent, or
the child, involved; or
(B) delay or deny the placement of a child
for adoption or into foster care, or otherwise
discriminate in making a placement decision, on
the basis of the race, color, or national origin
of the adoptive or foster parent, or the child, in-
volved.
(2) PERMISSIBLE CONSIDERATION.—An agency
or entity to which paragraph (1) applies may con-
sider the race, color, or national origin of a child as
a factor in making a placement decision if such fac-
tor is relevant to the best interests of the child in-
volved and is considered in conjunction with other
factors.
(3) DEFINITION.—As used in this subsection,
the term ‘‘placement decision’’ means the decision to
place, or to delay or deny the placement of, a child
in a foster care or an adoptive home, and includes
the decision of the agency or entity involved to seek
the termination of birth parent rights or otherwise
make a child legally available for adoptive place-
ment.
(b) LIMITATION.—The Secretary of Health and
Human Services shall not provide placement and adminis-
trative funds under section 474(a)(3) of the Social Secu-
rity Act (42 U.S.C. 674(a)(3)) to an agency or entity de-
scribed in subsection (a) that is not in compliance with
subsection (a).
(c) EQUITABLE RELIEF.—Any individual who is ag-
grieved by an action in violation of subsection (a), taken
by an agency or entity described in subsection (a), shall
have the right to bring an action seeking relief in a United
States district court of appropriate jurisdiction.
(d) CONSTRUCTION.—Nothing in this section shall be
construed to affect the application of the Indian Child
Welfare Act of 1978 (25 U.S.C. 1901 et seq.).
Subtitle D—Tax Credit for Certain
Low-Income Families
SEC. 231. ADDITIONAL EARNED INCOME CREDIT FOR MAR-
RIED INDIVIDUALS.
(a) IN GENERAL.—Paragraph (1) of section 32(a) of
the Internal Revenue Code of 1986 (relating to earned in-
come credit) is amended to read as follows:
‘‘(1) IN GENERAL.—There shall be allowed as a
credit against the tax imposed by this subtitle for
the taxable year an amount equal to the sum of—
‘‘(A) in the case of an eligible individual,
an amount equal to the credit percentage of so
much of the taxpayer’s earned income for the
taxable year as does not exceed the earned in-
come amount, and
‘‘(B) in the case of an eligible married in-
dividual, the applicable percentage of $1,000.’’.
(b) APPLICABLE PERCENTAGE.—Section 32(b) of the
Internal Revenue Code of 1986 (relating to percentages
and amounts) is amended by adding at the end the follow-
ing new paragraph:
‘‘(3) APPLICABLE PERCENTAGE.—The applica-
ble percentage for any taxable year is equal to 100
percent reduced (but not below 0 percent) by 10 per-
centage points for each $1,000 (or fraction thereof)
by which the taxpayer’s earned income for such tax-
able year exceeds $16,000.’’.
(c) 
ELIGIBLE
MARRIED
INDIVIDUALS.—Section
32(c) of the Internal Revenue Code of 1986 (relating to
definitions and special rules) is amended by adding at the
end the following new paragraph:
‘‘(4) ELIGIBLE
MARRIED
INDIVIDUALS.—The
term ‘eligible married individual’ means an eligible
individual (determined without regard to paragraph
(1)(A)(ii))—
‘‘(A) who is married (as defined in section
7703) and who has lived together with the indi-
vidual’s spouse at all times during such mar-
riage during the taxable year, and
‘‘(B) has earned income for the taxable
year of at least $8,500.’’.
(d) CONFORMING AMENDMENTS.—
(A) requires all employers in the State to
report to the State all basic employment infor-
mation on new hires;
(B) requires such information to be com-
pared with information in the State registry of
child support orders established pursuant to
section 466(a)(13) of the Social Security Act
and with requests from other States for infor-
mation on the location of noncustodial parents;
(C) maintains updated employment infor-
mation on all individuals employed in the State
in a manner that enables the State to effec-
tively respond to such requests; and
(D) requires all employers in the State, on
receipt of a notice from the State that an em-
ployee owes a qualified child support obligation,
to begin withholding from the income of the
employee the amount of the obligation, in the
manner described in section 466(b)(6)(A)(i) of
the Social Security Act.
(b) STATE
ROLE.—Section 466(a) (42 U.S.C.
666(a)) is amended by inserting after paragraph (10) the
following:
‘‘(11) Procedures under which the State shall
designate a public agency to—