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‘‘(aa) the total amount re-
quired to be paid to the State
under part A (as in effect during
fiscal year 1994) for fiscal year
1994; and
‘‘(bb) the amount (if any)
paid to the State under this para-
graph for the immediately preced-
ing fiscal year; divided by
‘‘(II) the number of individuals,
according to the 1990 decennial census,
who were residents of the State and
whose income was below the poverty
line.
‘‘(ii) NATIONAL
AVERAGE
LEVEL
OF
STATE WELFARE SPENDING PER POOR PER-
SON.—The term ‘national average level of
State welfare spending per poor person’
means, with respect to a fiscal year, an
amount equal to—
‘‘(I) the total amount required to
be paid to the States under part A (as
in effect during fiscal year 1994) for
fiscal year 1994; divided by
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‘‘(II) the number of individuals,
according to the 1990 decennial census,
who were residents of any State and
whose income was below the poverty
line.
‘‘(iii) STATE.—The term ‘State’ means
each of the 50 States of the United States
and the District of Columbia.
‘‘(D) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated 1996,
1997, 1998, 1999, and 2000 such sums as are
necessary for grants under this paragraph, in a
total amount not to exceed $800,000,000.
‘‘(E) GRANTS REDUCED PRO RATA IF IN-
SUFFICIENT
APPROPRIATIONS.—If the amount
appropriated pursuant to this paragraph for a
fiscal year is less than the total amount of pay-
ments otherwise required to be made under this
paragraph for the fiscal year, then the amount
otherwise payable to each qualifying State for
the fiscal year under this paragraph shall be re-
duced by a percentage equal to the amount so
appropriated divided by such total amount.
‘‘(b) CONTINGENCY FUND.—
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‘‘(1) ESTABLISHMENT.—There is hereby estab-
lished in the Treasury of the United States a fund
which shall be known as the ‘Contingency Fund for
State Welfare Programs’ (in this section referred to as
the ‘Fund’).
‘‘(2) DEPOSITS INTO FUND.—Out of any money
in the Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal years
1996, 1997, 1998, 1999, and 2000 such sums as are
necessary for payment to the Fund in a total amount
not to exceed $800,000,000.
‘‘(3) COMPUTATION OF GRANT.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary of the Treasury shall
pay to each eligible State for a fiscal year an
amount equal to the Federal medical assistance
percentage for the State for the fiscal year (as
defined in section 1905(b), as in effect on the
date of the enactment of this part) of so much of
the expenditures by the State in the fiscal year
under the State program funded under this part
as exceed the historic State expenditures (as de-
fined in section 408(a)(7)(B)(iii)) for the State.
‘‘(B) LIMITATION.—The total amount paid
to a State under subparagraph (A) for any fiscal
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year shall not exceed an amount equal to 20 per-
cent of the State family assistance grant for the
fiscal year.
‘‘(C) METHOD OF RECONCILIATION.—If, at
the end of any fiscal year, the Secretary finds
that a State to which amounts from the Fund
were paid in the fiscal year did not meet the
maintenance of effort requirement under para-
graph (4)(B) for the fiscal year, the Secretary
shall reduce the grant payable to the State under
subsection (a)(1) for the immediately succeeding
fiscal year by such amounts.
‘‘(4) ELIGIBLE STATE.—
‘‘(A) IN
GENERAL.—For purposes of this
subsection, a State is an eligible State for a fis-
cal year, if—
‘‘(i)(I) the average rate of total unem-
ployment in such State (seasonally ad-
justed) for the period consisting of the most
recent 3 months for which data for all
States are published equals or exceeds 6.5
percent; and
‘‘(II) the average rate of total unem-
ployment in such State (seasonally ad-
justed) for the 3-month period equals or ex-
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ceeds 110 percent of such average rate for
either (or both) of the corresponding 3-
month periods ending in the 2 preceding
calendar years; and
‘‘(ii) has met the maintenance of effort
requirement under subparagraph (B) for the
State program funded under this part for
the fiscal year.
‘‘(B) 
MAINTENANCE
OF
EFFORT.—The
maintenance of effort requirement for any State
under this subparagraph for any fiscal year is
the expenditure by the State during the fiscal
year of an amount at least equal to 100 percent
of the level of historic State expenditures for the
State (as determined under section 408(e)).
‘‘(5) STATE.—As used in this subsection, the
term ‘State’ means each of the 50 States of the United
States and the District of Columbia.
‘‘(c) CONDITION OF GRANT.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this section, as a condition of receiving
a grant under this section, a State shall not provide
cash assistance to a family that includes an adult
who has received assistance under any State program
funded under this part for 60 months (whether or not
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consecutive) after September 30, 1995, except as pro-
vided in paragraphs (2) and (3).
‘‘(2) MINOR CHILD EXCEPTION.—In determining
the number of months for which an individual who
is a parent or pregnant, as the case may be, has re-
ceived assistance under the State program funded
under this part, there shall be disregarded any month
for which such assistance was provided with respect
to the individual and throughout which the individ-
ual was—
‘‘(A) a minor child; and
‘‘(B) not the head of a household or married
to the head of a household.
‘‘(3) HARDSHIP EXCEPTION.—
‘‘(A) IN GENERAL.—The State may exempt
a family from the application of paragraph (1)
by reason of hardship or if the family includes
an individual who has been battered or subjected
to extreme cruelty.
‘‘(B) LIMITATION.—The number of families
with respect to which an exemption made by a
State under subparagraph (A) is in effect for a
fiscal year shall not exceed 15 percent of the av-
erage monthly number of families to which the
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State is providing assistance under the program
funded under this part.
‘‘(C) BATTERED OR SUBJECT TO EXTREME
CRUELTY DEFINED.—For purposes of subpara-
graph (A), an individual has been battered or
subjected to extreme cruelty if the individual has
been subjected to—
‘‘(i) physical acts that resulted in, or
threatened to result in, physical injury to
the individual;
‘‘(ii) sexual abuse;
‘‘(iii) sexual activity involving a de-
pendent child;
‘‘(iv) being forced as the caretaker rel-
ative of a dependent child to engage in
nonconsensual sexual acts or activities;
‘‘(v) threats of, or attempts at, physical
or sexual abuse;
‘‘(vi) mental abuse; or
‘‘(vii) neglect or deprivation of medical
care.
‘‘(4) RULE OF INTERPRETATION.—Paragraph (1)
shall not be interpreted to require any State to pro-
vide assistance to any individual for any period of
time under the State program funded under this part.
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‘‘SEC. 403. USE OF GRANTS.
‘‘(a) GENERAL RULES.—Subject to this part, a State
to which a grant is made under section 402 may use the
grant—
‘‘(1) in any manner that is reasonably cal-
culated to increase the flexibility of States in operat-
ing a program designed to—
‘‘(A) provide assistance to needy families so
that children may be cared for in their own
homes or in the homes of relatives;
‘‘(B) end the dependence of needy parents
on government benefits by promoting job prepa-
ration, work, and marriage;
‘‘(C) prevent and reduce the incidence of
out-of-wedlock pregnancies and establish annual
numerical goals for preventing and reducing the
incidence of these pregnancies; and
‘‘(D) encourage the formation and mainte-
nance of two-parent families; and
‘‘(2) in any manner that the State was author-
ized to use amounts received under part A or F of
this title, as such parts were in effect on September
30, 1995.
‘‘(b) LIMITATION ON USE OF GRANT FOR ADMINISTRA-
TIVE PURPOSES.—
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‘‘(1) LIMITATION.—A State to which a grant is
made under section 402 shall not expend more than
15 percent of the grant for administrative purposes.
‘‘(2) EXCEPTION.—Paragraph (1) shall not
apply to the use of a grant for information technology
and computerization needed for tracking or monitor-
ing required by or under this part.
‘‘(c) AUTHORITY TO USE PORTION OF GRANT FOR
OTHER PURPOSES.—
‘‘(1) IN GENERAL.—A State may use not more
than 30 percent of the amount of the grant made to
the State under section 402 for a fiscal year to carry
out a State program pursuant to any or all of the fol-
lowing provisions of law:
‘‘(A) Part B of this title.
‘‘(B) Title XX of this Act.
‘‘(C) The Child Care and Development
Block Grant Act of 1990.
‘‘(2) APPLICABLE RULES.—Any amount paid to
the State under this part that is used to carry out a
State program pursuant to a provision of law speci-
fied in paragraph (1) shall not be subject to the re-
quirements of this part, but shall be subject to the re-
quirements that apply to Federal funds provided di-
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rectly under the provision of law to carry out the pro-
gram.
‘‘(d) AUTHORITY TO RESERVE CERTAIN AMOUNTS FOR
ASSISTANCE.—A State may reserve amounts paid to the
State under this part for any fiscal year for the purpose
of providing, without fiscal year limitation, assistance
under the State program funded under this part.
‘‘(e) AUTHORITY TO OPERATE EMPLOYMENT PLACE-
MENT PROGRAM.—A State to which a grant is made under
section 402 may use the grant to make payments (or pro-
vide job placement vouchers) to State-approved public and
private job placement agencies that provide employment
placement services to individuals who receive assistance
under the State program funded under this part.
‘‘(f) IMPLEMENTATION
OF
ELECTRONIC
BENEFIT
TRANSFER SYSTEM.—A State to which a grant is made
under section 402 is encouraged to implement an electronic
benefit transfer system for providing assistance under the
State program funded under this part, and may use the
grant for such purpose.
‘‘SEC. 404. ADMINISTRATIVE PROVISIONS.
‘‘(a) QUARTERLY.—The Secretary shall pay each grant
payable to a State under section 402 in quarterly install-
ments.
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‘‘(b) NOTIFICATION.—Not later than 3 months before
the payment of any such quarterly installment to a State,
the Secretary shall notify the State of the amount of any
reduction determined under section 411(a)(1)(B) with re-
spect to the State.
‘‘(c) COMPUTATION AND CERTIFICATION OF PAYMENTS
TO STATES.—
‘‘(1) COMPUTATION.—The Secretary shall esti-
mate the amount to be paid to each eligible State for
each quarter under this part, such estimate to be
based on a report filed by the State containing an es-
timate by the State of the total sum to be expended
by the State in the quarter under the State program
funded under this part and such other information as
the Secretary may find necessary.
‘‘(2) CERTIFICATION.—The Secretary of Health
and Human Services shall certify to the Secretary of
the Treasury the amount estimated by the Secretary
under paragraph (1) with respect to a State.
‘‘(d) PAYMENT METHOD.—Upon receipt of a certifi-
cation under subsection (c)(2) with respect to a State, the
Secretary of the Treasury shall, through the Fiscal Service
of the Department of the Treasury and before audit or set-
tlement by the General Accounting Office, pay to the State,
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at the time or times fixed by the Secretary of Health and
Human Services, the amount so certified.
‘‘SEC. 405. FEDERAL LOANS FOR STATE WELFARE PRO-
GRAMS.
‘‘(a) LOAN AUTHORITY.—
‘‘(1) IN
GENERAL.—The Secretary shall make
loans to any loan-eligible State, for a period to matu-
rity of not more than 3 years.
‘‘(2) LOAN-ELIGIBLE STATE.—As used in para-
graph (1), the term ‘loan-eligible State’ means a State
against which a penalty has not been imposed under
section 408(a)(1) at any time before the loan is to be
made.
‘‘(b) RATE OF INTEREST.—The Secretary shall charge
and collect interest on any loan made under this section
at a rate equal to the current average market yield on out-
standing marketable obligations of the United States with
remaining periods to maturity comparable to the period to
maturity of the loan.
‘‘(c) USE OF LOAN.—A State shall use a loan made
to the State under this section only for any purpose for
which grant amounts received by the State under section
402(a) may be used including—
‘‘(1) welfare anti-fraud activities; and
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The minimum
participation
‘‘If the fiscal year is:
rate is:
1996 ....................................................................
1997 ....................................................................
1998 ....................................................................
1999 ....................................................................
2000 ....................................................................
2001 ....................................................................
2002 or thereafter ..............................................
50.
‘‘(2) 2-PARENT FAMILIES.—A State to which a
grant is made under section 402 for a fiscal year
shall achieve the minimum participation rate speci-
fied in the following table for the fiscal year with re-
spect to 2-parent families receiving assistance under
the State program funded under this part:
The minimum
participation
‘‘If the fiscal year is:
rate is:
1996 ....................................................................
1997 ....................................................................
1998 ....................................................................
1999 or thereafter ..............................................
90.
‘‘(b) CALCULATION OF PARTICIPATION RATES.—
‘‘(1) ALL FAMILIES.—
‘‘(A) AVERAGE MONTHLY RATE.—For pur-
poses of subsection (a)(1), the participation rate
for all families of a State for a fiscal year is the
average of the participation rates for all families
of the State for each month in the fiscal year.
‘‘(B) MONTHLY
PARTICIPATION
RATES.—
The participation rate of a State for all families
of the State for a month, expressed as a percent-
age, is—
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‘‘(i) the number of families receiving
assistance under the State program funded
under this part that include an adult who
is engaged in work for the month; divided
by
‘‘(ii) the amount by which—
‘‘(I) the number of families receiv-
ing such assistance during the month
that include an adult receiving such
assistance; exceeds
‘‘(II) the number of families re-
ceiving such assistance that are subject
in such month to a reduction or termi-
nation of assistance pursuant to sec-
tion 408(a)(2) but have not been sub-
ject to such penalty for more than 3
months within the preceding 12-month
period (whether or not consecutive).
‘‘(2) 2-PARENT FAMILIES.—
‘‘(A) AVERAGE MONTHLY RATE.—For pur-
poses of subsection (a)(2), the participation rate
for 2-parent families of a State for a fiscal year
is the average of the participation rates for 2-
parent families of the State for each month in
the fiscal year.
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‘‘(B) MONTHLY
PARTICIPATION
RATES.—
The participation rate of a State for 2-parent
families of the State for a month shall be cal-
culated by use of the formula set forth in para-
graph (1)(B), except that in the formula the term
‘number of 2-parent families’ shall be substituted
for the term ‘number of families’ each place such
latter term appears.
‘‘(3) PRO RATA REDUCTION OF PARTICIPATION
RATE DUE TO CASELOAD REDUCTIONS NOT REQUIRED
BY FEDERAL LAW.—
‘‘(A) IN
GENERAL.—The Secretary shall
prescribe regulations for reducing the minimum
participation rate otherwise required by this sec-
tion for a fiscal year by the number of percent-
age points equal to the number of percentage
points (if any) by which—
‘‘(i) the number of families receiving
assistance during the fiscal year under the
State program funded under this part is
less than
‘‘(ii) the number of families that re-
ceived aid under the State plan approved
under part A of this title (as in effect on
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September 30, 1995) during the fiscal year
immediately preceding such effective date.
The minimum participation rate shall not be re-
duced to the extent that the Secretary determines
that the reduction in the number of families re-
ceiving such assistance is required by Federal
law.
‘‘(B) ELIGIBILITY
CHANGES
NOT
COUNT-
ED.—The regulations described in subparagraph
(A) shall not take into account families that are
diverted from a State program funded under this
part as a result of differences in eligibility cri-
teria under a State program funded under this
part and eligibility criteria under such State’s
plan under the aid to families with dependent
children program, as such plan was in effect on
the day before the date of the enactment of the
Personal Responsibility and Work Opportunity
Act of 1995. Such regulations shall place the
burden on the Secretary to prove that such fami-
lies were diverted as a direct result of differences
in such eligibility criteria.
‘‘(4) STATE OPTION TO INCLUDE INDIVIDUALS
RECEIVING ASSISTANCE UNDER A TRIBAL FAMILY AS-
SISTANCE PLAN.—For purposes of paragraphs (1)(B)
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and (2)(B), a State may, at its option, include fami-
lies receiving assistance under a tribal family assist-
ance plan approved under section 411.
‘‘(c) ENGAGED IN WORK.—
‘‘(1) ALL FAMILIES.—For purposes of subsection
(b)(1)(B)(i), a recipient is engaged in work for a
month in a fiscal year if the recipient is participat-
ing in such activities for at least the minimum aver-
age number of hours per week specified in the follow-
ing table during the month, not fewer than 20 hours
per week of which are attributable to an activity de-
scribed in paragraph (1), (2), (3), (4), (5), (7), or (8)
of subsection (d) (or, in the case of the first 4 weeks
for which the recipient is required under this section
to participate in work activities, an activity described
in subsection (d)(6)):
The minimum
‘‘If the month is
average number of
in fiscal year:
hours per week is:
1996 ..............................................................
1997 ..............................................................
1998 ..............................................................
1999 ..............................................................
2000 ..............................................................
2001 ..............................................................
2002 ..............................................................
2003 or thereafter ........................................
35.
‘‘(2) 2-PARENT FAMILIES.—For purposes of sub-
section (b)(2)(B)(i), an adult is engaged in work for
a month in a fiscal year if the adult is making
progress in such activities for at least 35 hours per
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week during the month, not fewer than 30 hours per
week of which are attributable to an activity described
in paragraph (1), (2), (3), (4), (5), (7), or (8) of sub-
section (d) (or, in the case of the first 4 weeks for
which the recipient is required under this section to
participate in work activities, an activity described
in subsection (d)(6)).
‘‘(3) LIMITATION ON VOCATIONAL EDUCATION AC-
TIVITIES COUNTED AS WORK.—For purposes of deter-
mining monthly participation rates under para-
graphs (1)(B)(i) and (2)(B)(i) of subsection (b), not
more than 20 percent of adults in all families and in
2-parent families determined to be engaged in work
in the State for a month may meet the work activity
requirement through participation in vocational edu-
cational training.
‘‘(d) WORK ACTIVITIES DEFINED.—As used in this
section, the term ‘work activities’ means—
‘‘(1) unsubsidized employment;
‘‘(2) subsidized private sector employment;
‘‘(3) subsidized public sector employment;
‘‘(4) work experience (including work associated
with the refurbishing of publicly assisted housing) if
sufficient private sector employment is not available;
‘‘(5) on-the-job training;
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‘‘(6) job search and job readiness assistance;
‘‘(7) community service programs;
‘‘(8) vocational educational training (not to ex-
ceed 12 months with respect to any individual);
‘‘(9) job skills training directly related to em-
ployment;
‘‘(10) education directly related to employment,
in the case of a recipient who has not attained 20
years of age, and has not received a high school di-
ploma or a certificate of high school equivalency; and
‘‘(11) satisfactory attendance at secondary
school, in the case of a recipient who—
‘‘(A) has not completed secondary school;
and
‘‘(B) is a dependent child, or a head of
household who has not attained 20 years of age.
‘‘SEC. 407. PROHIBITIONS.
‘‘(a) IN GENERAL.—
‘‘(1) NO ASSISTANCE FOR FAMILIES WITHOUT A
MINOR CHILD.—A State to which a grant is made
under section 402 may not use any part of the grant
to provide assistance to a family, unless the family
includes—
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‘‘(A) a minor child who resides with a cus-
todial parent or other adult caretaker relative of
the child; or
‘‘(B) a pregnant individual.
‘‘(2) REDUCED
ASSISTANCE
FOR
FAMILY
IF
ADULT REFUSES TO WORK.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), a State to which a grant is
made under section 402 may not fail to—
‘‘(i) reduce the amount of assistance
otherwise payable to a family receiving as-
sistance under the State program funded
under this part, pro rata (or more, at the
option of the State) with respect to any pe-
riod during a month in which an adult
member of the family refuses to engage in
work required in accordance with this sec-
tion; or
‘‘(ii) terminate such assistance,
subject to such good cause and other exceptions
as the State may establish.
‘‘(B) EXCEPTION.—Notwithstanding sub-
paragraph (A), a State may not reduce or termi-
nate assistance under the State program funded
under this part based on a refusal of an adult
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to work if the adult is a single custodial parent
caring for a child who has not attained 6 years
of age, and the adult proves that the adult has
a demonstrated inability (as determined by the
State) to obtain needed child care, for 1 or more
of the following reasons:
‘‘(i) Unavailability of appropriate
child care within a reasonable distance from
the individual’s home or work site.
‘‘(ii) Unavailability or unsuitability of
informal child care by a relative or under
other arrangements.
‘‘(iii) Unavailability of appropriate
and affordable formal child care arrange-
ments.
‘‘(3) REDUCTION
OR
ELIMINATION
OF
ASSIST-
ANCE FOR NONCOOPERATION IN CHILD SUPPORT.—If
the agency responsible for administering the State
plan approved under part D determines that an indi-
vidual is not cooperating with the State in establish-
ing, modifying, or enforcing a support order with re-
spect to a child of the individual, then the State—
‘‘(A) shall deduct from the assistance that
would otherwise be provided to the family of the
individual under the State program funded
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under this part the share of such assistance at-
tributable to the individual; and
‘‘(B) may deny the family any assistance
under the State program.
‘‘(4) NO ASSISTANCE FOR FAMILIES NOT ASSIGN-
ING CERTAIN SUPPORT RIGHTS TO THE STATE.—
‘‘(A) IN
GENERAL.—A State to which a
grant is made under section 402 may not fail to
require, as a condition of providing assistance to
a family under the State program funded under
this part, that a member of the family assign to
the State any rights the family member may
have (on behalf of the family member or of any
other person for whom the family member has
applied for or is receiving such assistance) to
support from any other person, not exceeding the
total amount of assistance so provided to the
family, which accrue (or have accrued) before the
date the family leaves the program, which as-
signment, on and after the date the the family
leaves the program, shall not apply with respect
to—
‘‘(i) if the assignment occurs on or
after October 1, 1997, and before October 1,
2000, any support (other than support col-
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lected pursuant to section 464) which ac-
crued before the family received such assist-
ance and which the State has not collected
by September 30, 2000; or
‘‘(ii) if the assignment occurs on or
after October 1, 2000, any support (other
than support collected pursuant to section
464) which accrued before the family re-
ceived such assistance and which the State
has not collected by the date the family
leaves the program.
‘‘(B) LIMITATION.—A State to which a
grant is made under section 402 may not re-
quire, as a condition of providing assistance to
any family under the State program funded
under this part, that a member of the family as-
sign to the State any rights to support described
in subparagraph (A) which accrue after the date
the family leaves the program.
‘‘(5) NO
ASSISTANCE
FOR
TEENAGE
PARENTS
WHO
DO
NOT
ATTEND
HIGH
SCHOOL
OR
OTHER
EQUIVALENT TRAINING PROGRAM.—A State to which
a grant is made under section 402 may not use any
part of the grant to provide assistance to an individ-
ual who has not attained 18 years of age, is not mar-
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ried, has a minor child at least 12 weeks of age in
his or her care, and has not successfully completed a
high-school education (or its equivalent), if the indi-
vidual does not participate in—
‘‘(A) educational activities directed toward
the attainment of a high school diploma or its
equivalent; or
‘‘(B) an alternative educational or training
program that has been approved by the State.
‘‘(6) NO
ASSISTANCE
FOR
TEENAGE
PARENTS
NOT LIVING IN ADULT-SUPERVISED SETTINGS.—
‘‘(A) IN GENERAL.—
‘‘(i) REQUIREMENT.—Except as pro-
vided in subparagraph (B), a State to
which a grant is made under section 402
may not use any part of the grant to pro-
vide assistance to an individual described
in clause (ii) of this subparagraph if the in-
dividual and the minor child referred to in
clause (ii)(II) do not reside in a place of
residence maintained by a parent, legal
guardian, or other adult relative of the in-
dividual as such parent’s, guardian’s, or
adult relative’s own home.
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‘‘(ii) INDIVIDUAL
DESCRIBED.— For
purposes of clause (i), an individual de-
scribed in this clause is an individual
who—
‘‘(I) has not attained 18 years of
age; and
‘‘(II) is not married, and has a
minor child in his or her care.
‘‘(B) EXCEPTION.—
‘‘(i) PROVISION OF, OR ASSISTANCE IN
LOCATING, ADULT-SUPERVISED LIVING AR-
RANGEMENT.—In the case of an individual
who is described in clause (ii), the State
agency referred to in section 401(a)(4) shall
provide, or assist the individual in locating,
a second chance home, maternity home, or
other appropriate adult-supervised support-
ive living arrangement, taking into consid-
eration the needs and concerns of the indi-
vidual, unless the State agency determines
that the individual’s current living arrange-
ment is appropriate, and thereafter shall re-
quire that the individual and the minor
child referred to in subparagraph (A)(ii)(II)
reside in such living arrangement as a con-
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dition of the continued receipt of assistance
under the State program funded under this
part (or in an alternative appropriate ar-
rangement, should circumstances change
and the current arrangement cease to be ap-
propriate).
‘‘(ii) 
INDIVIDUAL
DESCRIBED.—For
purposes of clause (i), an individual is de-
scribed in this clause if the individual is de-
scribed in subparagraph (A)(ii), and—
‘‘(I) the individual has no parent,
legal guardian or other appropriate
adult relative described in subclause
(II) of his or her own who is living or
whose whereabouts are known;
‘‘(II) no living parent, legal
guardian, or other appropriate adult
relative, who would otherwise meet ap-
plicable State criteria to act as the in-
dividual’s legal guardian, of such indi-
vidual allows the individual to live in
the home of such parent, guardian, or
relative;
‘‘(III) the State agency determines
that—
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‘‘(aa) the individual or the
minor child referred to in sub-
paragraph (A)(ii)(II) is being or
has been subjected to serious phys-
ical or emotional harm, sexual
abuse, or exploitation in the resi-
dence of the individual’s own par-
ent or legal guardian; or
‘‘(bb) substantial evidence ex-
ists of an act or failure to act that
presents an imminent or serious
harm if the individual and the
minor child lived in the same res-
idence with the individual’s own
parent or legal guardian; or
‘‘(IV) the State agency otherwise
determines that it is in the best inter-
est of the minor child to waive the re-
quirement of subparagraph (A) with
respect to the individual or the minor
child.
‘‘(iii) SECOND-CHANCE
HOME.—For
purposes of this subparagraph, the term
‘second-chance home’ means an entity that
provides individuals described in clause (ii)
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with a supportive and supervised living ar-
rangement in which such individuals are
required to learn parenting skills, including
child development, family budgeting, health
and nutrition, and other skills to promote
their long-term economic independence and
the well-being of their children.
‘‘(7) NO MEDICAL SERVICES.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), a State to which a grant is
made under section 402 may not use any part
of the grant to provide medical services.
‘‘(B) EXCEPTION
FOR
FAMILY
PLANNING
SERVICES.—As used in subparagraph (A), the
term ‘medical services’ does not include family
planning services.
‘‘(8) DENIAL OF ASSISTANCE FOR 10 YEARS TO A
PERSON FOUND TO HAVE FRAUDULENTLY MISREPRE-
SENTED RESIDENCE IN ORDER TO OBTAIN ASSIST-
ANCE IN 2 OR MORE STATES.—a State to which a
grant is made under section 402 may not use any
part of the grant to provide cash assistance to an in-
dividual during the 10-year period that begins on the
date the individual is convicted in Federal or State
court of having made a fraudulent statement or rep-
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resentation with respect to the place of residence of
the individual in order to receive assistance simulta-
neously from 2 or more States under programs that
are funded under this title, title XIX, or the Food
Stamp Act of 1977, or benefits in 2 or more States
under the supplemental security income program
under title XVI.
‘‘(9) DENIAL OF ASSISTANCE FOR FUGITIVE FEL-
ONS AND PROBATION AND PAROLE VIOLATORS.—
‘‘(A) IN
GENERAL.—A State to which a
grant is made under section 402 may not use
any part of the grant to provide assistance to
any individual who is—
‘‘(i) fleeing to avoid prosecution, or
custody or confinement after conviction,
under the laws of the place from which the
individual flees, for a crime, or an attempt
to commit a crime, which is a felony under
the laws of the place from which the indi-
vidual flees, or which, in the case of the
State of New Jersey, is a high misdemeanor
under the laws of such State; or
‘‘(ii) violating a condition of probation
or parole imposed under Federal or State
law.
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‘‘(B) EXCHANGE
OF
INFORMATION
WITH
LAW
ENFORCEMENT
AGENCIES.—If a State to
which a grant is made under section 402 estab-
lishes safeguards against the use or disclosure of
information about applicants or recipients of as-
sistance under the State program funded under
this part, the safeguards shall not prevent the
State agency administering the program from
furnishing a Federal, State, or local law enforce-
ment officer, upon the request of the officer, with
the current address of any recipient if the officer
furnishes the agency with the name of the recipi-
ent and notifies the agency that—
‘‘(i) such recipient—
‘‘(I) is fleeing to avoid prosecu-
tion, or custody or confinement after
conviction, under the laws of the place
from which the recipient flees, for a
crime, or an attempt to commit a
crime, which is a felony under the laws
of the place from which the recipient
flees, or which, in the case of the State
of New Jersey, is a high misdemeanor
under the laws of such State;
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‘‘(II) is violating a condition of
probation or parole imposed under
Federal or State law; or
‘‘(III) has information that is
necessary for the officer to conduct the
official duties of the officer; and
‘‘(ii) the location or apprehension of
the recipient is within such official duties.
‘‘(10) DENIAL OF ASSISTANCE FOR MINOR CHIL-
DREN WHO ARE ABSENT FROM THE HOME FOR A SIG-
NIFICANT PERIOD.—
‘‘(A) IN
GENERAL.—A State to which a
grant is made under section 402 may not use
any part of the grant to provide assistance for
a minor child who has been, or is expected by a
parent (or other caretaker relative) of the child
to be, absent from the home for a period of 45
consecutive days or, at the option of the State,
such period of not less than 30 and not more
than 90 consecutive days as the State may pro-
vide for in the State plan submitted pursuant to
section 401.
‘‘(B) STATE
AUTHORITY
TO
ESTABLISH
GOOD CAUSE EXCEPTIONS.—The State may es-
tablish such good cause exceptions to subpara-
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graph (A) as the State considers appropriate if
such exceptions are provided for in the State
plan submitted pursuant to section 401.
‘‘(C) DENIAL OF ASSISTANCE FOR RELATIVE
WHO FAILS TO NOTIFY STATE AGENCY OF AB-
SENCE OF CHILD.—A State to which a grant is
made under section 402 may not use any part
of the grant to provide assistance for an individ-
ual who is a parent (or other caretaker relative)
of a minor child and who fails to notify the
agency administering the State program funded
under this part, of the absence of the minor child
from the home for the period specified in or pro-
vided for under subparagraph (A), by the end of
the 5-day period that begins with the date that
it becomes clear to the parent (or relative) that
the minor child will be absent for such period so
specified or provided for.
‘‘(11) INCOME SECURITY PAYMENTS NOT TO BE
DISREGARDED IN DETERMINING THE AMOUNT OF AS-
SISTANCE TO BE PROVIDED TO A FAMILY.—If a State
to which a grant is made under section 402 uses any
part of the grant to provide assistance for any indi-
vidual who is receiving a payment under a State
plan for old-age assistance approved under section 2,
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a State program funded under part B that provides
cash payments for foster care, or the supplemental se-
curity income program under title XVI, then the
State may not disregard the payment in determining
the amount of assistance to be provided to the family
of which the individual is a member under the State
program funded under this part.
‘‘SEC. 408. PENALTIES.
‘‘(a) IN GENERAL.—Subject to subsections (b), (c), and
(d):
‘‘(1) FOR USE OF GRANT IN VIOLATION OF THIS
PART.—
‘‘(A) GENERAL PENALTY.—If an audit con-
ducted under chapter 75 of title 31, United
States Code, finds that an amount paid to a
State under section 402 for a fiscal year has
been used in violation of this part, the Secretary
shall reduce the grant payable to the State under
section 402(a)(1) for the immediately succeeding
fiscal year quarter by the amount so used.
‘‘(B) ENHANCED
PENALTY
FOR
INTEN-
TIONAL VIOLATIONS.—If the State does not prove
to the satisfaction of the Secretary that the State
did not intend to use the amount in violation of
this part, the Secretary shall further reduce the
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grant payable to the State under section
402(a)(1) for the immediately succeeding fiscal
year quarter by an amount equal to 5 percent of
the State family assistance grant.
‘‘(2) FOR FAILURE TO SUBMIT REQUIRED RE-
PORT.—
‘‘(A) IN GENERAL.—If the Secretary deter-
mines that a State has not, within 6 months
after the end of a fiscal year, submitted the re-
port required by section 410 for the fiscal year,
the Secretary shall reduce the grant payable to
the State under section 402(a)(1) for the imme-
diately succeeding fiscal year by an amount
equal to 4 percent of the State family assistance
grant.
‘‘(B) RESCISSION OF PENALTY.—The Sec-
retary shall rescind a penalty imposed on a
State under subparagraph (A) with respect to a
report for a fiscal year if the State submits the
report before the end of the immediately succeed-
ing fiscal year.
‘‘(3) FOR FAILURE TO SATISFY MINIMUM PAR-
TICIPATION RATES.—
‘‘(A) IN GENERAL.—If the Secretary deter-
mines that a State to which a grant is made
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under section 402 for a fiscal year has failed to
comply with section 406(a) for the fiscal year,
the Secretary shall reduce the grant payable to
the State under section 402(a)(1) for the imme-
diately succeeding fiscal year by an amount
equal to not more than 5 percent of the State
family assistance grant.
‘‘(B) PENALTY
BASED
ON
SEVERITY
OF
FAILURE.—The Secretary shall impose reduc-
tions under subparagraph (A) based on the de-
gree of noncompliance.
‘‘(4) FOR FAILURE TO PARTICIPATE IN THE IN-
COME
AND
ELIGIBILITY
VERIFICATION
SYSTEM.—If
the Secretary determines that a State program funded
under this part is not participating during a fiscal
year in the income and eligibility verification system
required by section 1137, the Secretary shall reduce
the grant payable to the State under section 402(a)(1)
for the immediately succeeding fiscal year by an
amount equal to not more than 2 percent of the State
family assistance grant.
‘‘(5) FOR FAILURE TO COMPLY WITH PATERNITY
ESTABLISHMENT AND CHILD SUPPORT ENFORCEMENT
REQUIREMENTS
UNDER
PART
D.—Notwithstanding
any other provision of this Act, if the Secretary deter-
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mines that the State agency that administers a pro-
gram funded under this part does not enforce the pen-
alties requested by the agency administering part D
against recipients of assistance under the State pro-
gram who fail to cooperate in establishing paternity
in accordance with such part, the Secretary shall re-
duce the grant payable to the State under section
402(a)(1) for the immediately succeeding fiscal year
(without regard to this section) by not more than 5
percent.
‘‘(6) FOR FAILURE TO TIMELY REPAY A FEDERAL
LOAN FUND FOR STATE WELFARE PROGRAMS.—If the
Secretary determines that a State has failed to repay
any amount borrowed from the Federal Loan Fund
for State Welfare Programs established under section
405 within the period of maturity applicable to the
loan, plus any interest owed on the loan, the Sec-
retary shall reduce the grant payable to the State
under section 402(a)(1) for the immediately succeed-
ing fiscal year quarter (without regard to this sec-
tion) by the outstanding loan amount, plus the inter-
est owed on the outstanding amount. The Secretary
may not forgive any outstanding loan amount or in-
terest owed on the outstanding amount.
‘‘(7) MAINTENANCE OF EFFORT.—
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‘‘(A) IN GENERAL.—The Secretary shall re-
duce the grant payable to the State under section
402(a)(1) for fiscal year 1996, 1997, 1998, 1999,
or 2000 by the amount (if any) by which State
expenditures under the State program funded
under this part for the then immediately preced-
ing fiscal year is less than the applicable per-
centage of historic State expenditures.
‘‘(B) DEFINITIONS.—As used in this para-
graph:
‘‘(i) STATE
EXPENDITURES
UNDER
THE STATE PROGRAM FUNDED UNDER THIS
PART.—
‘‘(I) 
IN
GENERAL.—The 
term
‘State expenditures under the State
program funded under this part’
means, with respect to a State and a
fiscal year, the sum of the expenditures
by the State under the program for the
fiscal year for—
‘‘(aa) cash assistance;
‘‘(bb) child care assistance;
‘‘(cc) education, job training,
and work;
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‘‘(dd) administrative costs;
and
‘‘(ee) any other use of funds
allowable under section 403(a)(1).
‘‘(II) EXCLUSION OF TRANSFERS
FROM OTHER STATE AND LOCAL PRO-
GRAMS.—Such term does not include
funding supplanted by transfers from
other State and local programs.
‘‘(ii) APPLICABLE PERCENTAGE.—The
term ‘applicable percentage’ means—
‘‘(I) for fiscal year 1996, 75 per-
cent; and
‘‘(II) for fiscal years 1997, 1998,
1999, and 2000, 75 percent reduced (if
appropriate) in accordance with sub-
paragraph (C)(iii).
‘‘(iii) 
HISTORIC
STATE
EXPENDI-
TURES.—The term ‘historic State expendi-
tures’ means, with respect to a State, the
lesser of—
‘‘(I) the expenditures by the State
under parts A and F of this title (as
in effect during fiscal year 1994) for
fiscal year 1994; or
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‘‘(II) the amount which bears the
same ratio to the amount described in
subclause (I) as—
‘‘(aa) the State family assist-
ance grant for the immediately
preceding fiscal year; bears to
‘‘(bb) the total amount of
Federal payments to the State
under section 403 (as in effect
during fiscal year 1994) for fiscal
year 1994.
‘‘(iv) EXPENDITURES BY THE STATE.—
The term ‘expenditures by the State’ does
not include any expenditures from amounts
made available by the Federal Government,
State funds expended for the medicaid pro-
gram under title XIX or the MediGrant
program under title XXI, or any State
funds which are used to match Federal
funds or are expended as a condition of re-
ceiving Federal funds under Federal pro-
grams other than under title I.
‘‘(C) APPLICABLE
PERCENTAGE
REDUCED
FOR
STATES
WITH
BEST
OR
MOST
IMPROVED
PERFORMANCE IN CERTAIN AREAS.—
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‘‘(i) SCORING
OF
STATE
PERFORM-
ANCE.—Beginning with fiscal year 1997,
the Secretary shall assign to each State a
score that represents the performance of the
State for the fiscal year in each category de-
scribed in clause (ii).
‘‘(ii) CATEGORIES.—The categories de-
scribed in this clause are the following:
‘‘(I) Increasing the number of
families that received assistance under
a State program funded under this
part in the fiscal year, and that, dur-
ing the fiscal year, become ineligible
for such assistance as a result of
unsubsidized employment.
‘‘(II) Reducing the percentage of
families that, within 18 months after
becoming 
ineligible 
for 
assistance
under the State program funded under
this part, become eligible for such as-
sistance.
‘‘(III) 
Increasing 
the 
amount
earned by families that receive assist-
ance under this part.
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‘‘(IV) Reducing the percentage of
families in the State that receive as-
sistance under the State program fund-
ed under this part.
‘‘(iii) REDUCTION OF MAINTENANCE OF
EFFORT THRESHOLD.—
‘‘(I) 
REDUCTION
FOR
STATES
WITH
GREATEST
SCORES
IN
EACH
CATEGORY
OF
PERFORMANCE.—The
applicable percentage for a State for a
fiscal year shall be reduced by 2 per-
centage points, with respect to each
category described in clause (ii) for
which the score assigned to the State
under clause (i) for the fiscal year is 1
of the 5 highest scores so assigned to
States.
‘‘(II) REDUCTION
FOR
STATES
WITH
GREATEST
IMPROVEMENT
IN
SCORES IN EACH CATEGORY OF PER-
FORMANCE.—The applicable percentage
for a State for a fiscal year shall be re-
duced by 2 percentage points for a
State for a fiscal year, with respect to
each category described in clause (ii)
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for which the difference between the
score assigned to the State under clause
(i) for the fiscal year and the score so
assigned to the State for the imme-
diately preceding fiscal year is 1 of the
5 greatest such differences.
‘‘(III) LIMITATION
ON
REDUC-
TION.—The applicable percentage for a
State for a fiscal year may not be re-
duced by more than 8 percentage
points pursuant to this clause.
‘‘(8) PENALTIES FOR SUBSTANTIAL NONCOMPLI-
ANCE OF STATE CHILD SUPPORT ENFORCEMENT PRO-
GRAM WITH REQUIREMENTS OF PART D.—
‘‘(A) IN GENERAL.—If a State program op-
erated under part D is found as a result of a re-
view conducted under section 452(a)(4) not to
have complied substantially with the require-
ments of such part for any quarter, and the Sec-
retary determines that the program is not com-
plying substantially with such requirements at
the time the finding is made, the Secretary shall,
subject to paragraph (2), reduce the grant pay-
able to the State under section 402(a)(1) for the
quarter and each subsequent quarter that ends
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before the 1st quarter throughout which the pro-
gram is found not to be in substantial compli-
ance with such requirements by—
‘‘(i) not less than 1 nor more than 2
percent;
‘‘(ii) not less than 2 nor more than 3
percent, if the finding is the 2nd consecutive
such finding made as a result of such a re-
view; or
‘‘(iii) not less than 3 nor more than 5
percent, if the finding is the 3rd or a subse-
quent consecutive such finding made as a
result of such a review.
‘‘(B) 
DISREGARD
OF
NONCOMPLIANCE
WHICH IS OF A TECHNICAL NATURE.—For pur-
poses of subparagraph (A) and section 452(a)(4),
a State which is not in full compliance with the
requirements of this part shall be determined to
be in substantial compliance with such require-
ments only if the Secretary determines that any
noncompliance with such requirements is of a
technical nature which does not adversely affect
the performance of the State’s program operated
under part D.
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‘‘(9) FOR
FAILURE
TO
EXPEND
ADDITIONAL
STATE FUNDS TO REPLACE GRANT REDUCTIONS.—If
the grant payable to a State under section 402(a)(1)
for a fiscal year is reduced by reason of any of the
preceding paragraphs of this subsection, the State
shall, during the immediately succeeding fiscal year,
expend under the State program funded under this
part an amount equal to the sum of—
‘‘(A) the applicable percentage of the his-
toric State expenditures; and
‘‘(B) 105 percent of the total amount of
such reductions under such preceding para-
graphs.
‘‘(b) REASONABLE CAUSE EXCEPTION.—The Secretary
may not impose a penalty on a State under subsection (a)
with respect to a requirement if the Secretary determines
that the State has reasonable cause for failing to comply
with the requirement.
‘‘(c) CORRECTIVE COMPLIANCE PLAN.—
‘‘(1) IN GENERAL.—
‘‘(A) NOTIFICATION
OF
VIOLATION.—Not-
withstanding any other provision of law, the
Federal Government shall, before assessing a
penalty against a State under subsection (a), no-
tify the State of the violation of law for which
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the penalty would be assessed and allow the
State the opportunity to enter into a corrective
compliance plan in accordance with this sub-
section which outlines how the State will correct
any such violations and how the State will in-
sure continuing compliance with the require-
ments of this part.
‘‘(B) 60-DAY PERIOD TO PROPOSE A COR-
RECTIVE COMPLIANCE PLAN.—Any State notified
under subparagraph (A) shall have 60 days in
which to submit to the Federal Government a
corrective compliance plan to correct any viola-
tions described in subparagraph (A).
‘‘(C) ACCEPTANCE OF PLAN.—The Federal
Government shall have 60 days to accept or re-
ject the State’s corrective compliance plan and
may consult with the State during this period to
modify the plan. If the Federal Government does
not accept or reject the corrective compliance
plan during the period, the corrective compliance
plan shall be deemed to be accepted.
‘‘(2) FAILURE
TO
CORRECT.—If a corrective
compliance plan is accepted by the Federal Govern-
ment, no penalty shall be imposed with respect to a
violation described in paragraph (1) if the State cor-
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rects the violation pursuant to the plan. If a State
has not corrected the violation in a timely manner
under the plan, some or all of the penalty shall be as-
sessed.
‘‘(d) LIMITATION ON AMOUNT OF PENALTY.—
‘‘(1) IN GENERAL.—In imposing the penalties
described in subsection (a), the Secretary shall not re-
duce any quarterly payment to a State by more than
25 percent.
‘‘(2) CARRYFORWARD
OF
UNRECOVERED
PEN-
ALTIES.—To the extent that paragraph (1) prevents
the Secretary from recovering during a fiscal year the
full amount of all penalties imposed on a State under
subsection (a) for a prior fiscal year, the Secretary
shall apply any remaining amount of such penalties
to the grant payable to the State under section
402(a)(1) for the immediately succeeding fiscal year.
‘‘SEC. 409. APPEAL OF ADVERSE DECISION.
‘‘(a) IN GENERAL.—Within 5 days after the date any
adverse decision is made or action is taken under this part
with respect to a State, the Secretary shall notify the chief
executive officer of the State of the adverse decision or ac-
tion, including any decision with respect to the State plan
submitted under section 401 or the imposition of a penalty
under section 408.
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decision (and the findings incorporated into the final
decision) by filing an action in—
‘‘(A) the district court of the United States
for the judicial district in which the principal or
headquarters office of the State agency is located;
or
‘‘(B) the United States District Court for
the District of Columbia.
‘‘(2) PROCEDURAL RULES.—The district court in
which an action is filed shall review the final decision
of the Board on the record established in the adminis-
trative proceeding, in accordance with the standards
of review prescribed by subparagraphs (A) through
(E) of section 706(2) of title 5, United States Code.
The review shall be on the basis of the documents and
supporting data submitted to the Board.
‘‘SEC. 410. DATA COLLECTION AND REPORTING.
‘‘(a) GENERAL REPORTING REQUIREMENT.—Begin-
ning July 1, 1996, each State shall collect on a monthly
basis, and report to the Secretary on a quarterly basis, the
following information on the families receiving assistance
under the State program funded under this part:
‘‘(1) The county of residence of the family.
‘‘(2) Whether a child receiving such assistance or
an adult in the family is disabled.
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‘‘(3) The ages of the members of such families.
‘‘(4) The number of individuals in the family,
and the relation of each family member to the young-
est child in the family.
‘‘(5) The employment status and earnings of the
employed adult in the family.
‘‘(6) The marital status of the adults in the fam-
ily, including whether such adults have never mar-
ried, are widowed, or are divorced.
‘‘(7) The educational status of each adult in the
family.
‘‘(8) The educational status of each child in the
family.
‘‘(9) Whether the family received subsidized hous-
ing, assistance under the State MediGrant plan ap-
proved under title XXI, food stamps, or subsidized
child care, and if the latter 2, the amount received.
‘‘(10) The number of months that the family has
received each type of assistance under the program.
‘‘(11) If the adults participated in, and the num-
ber of hours per week of participation in, the follow-
ing activities:
‘‘(A) Education.
‘‘(B) Subsidized private sector employment.
‘‘(C) Unsubsidized employment.
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‘‘(D) Public sector employment, work expe-
rience, or community service.
‘‘(E) Job search.
‘‘(F) Job skills training or on-the-job train-
ing.
‘‘(G) Vocational education.
‘‘(12) Information necessary to calculate partici-
pation rates under section 406.
‘‘(13) The type and amount of assistance re-
ceived under the program, including the amount of
and reason for any reduction of assistance (including
sanctions).
‘‘(14) From a sample of closed cases, whether the
family left the program, and if so, whether the family
left due to—
‘‘(A) employment;
‘‘(B) marriage;
‘‘(C) the prohibition set forth in section
407(a)(8);
‘‘(D) sanction; or
‘‘(E) State policy.
‘‘(15) Any amount of unearned income received
by any member of the family.
‘‘(16) The citizenship of the members of the fam-
ily.
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‘‘(b) USE OF ESTIMATES.—
‘‘(1) AUTHORITY.—A State may comply with
subsection (a) by submitting an estimate which is ob-
tained through the use of scientifically acceptable
sampling methods approved by the Secretary.
‘‘(2) SAMPLING
AND
OTHER
METHODS.—The
Secretary shall provide the States with such case sam-
pling plans and data collection procedures as the Sec-
retary deems necessary to produce statistically valid
estimates of the performance of State programs fund-
ed under this part. The Secretary may develop and
implement procedures for verifying the quality of
data submitted by the States.
‘‘(c) REPORT ON USE OF FEDERAL FUNDS TO COVER
ADMINISTRATIVE COSTS AND OVERHEAD.—The report re-
quired by subsection (a) for a fiscal quarter shall include
a statement of the percentage of the funds paid to the State
under this part for the quarter that are used to cover ad-
ministrative costs or overhead.
‘‘(d) REPORT
ON STATE EXPENDITURES
ON PRO-
GRAMS FOR NEEDY FAMILIES.—The report required by sub-
section (a) for a fiscal quarter shall include a statement
of the total amount expended by the State during the quar-
ter on programs for needy families.
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‘‘(e) REPORT ON NONCUSTODIAL PARENTS PARTICI-
PATING IN WORK ACTIVITIES.—The report required by sub-
section (a) for a fiscal quarter shall include the number of
noncustodial parents in the State who participated in work
activities (as defined in section 406(d)) during the quarter.
‘‘(f) REPORT ON TRANSITIONAL SERVICES.—The re-
port required by subsection (a) for a fiscal quarter shall
include the total amount expended by the State during the
quarter to provide transitional services to a family that has
ceased to receive assistance under this part because of em-
ployment, along with a description of such services.
‘‘(g) REPORT TO CONGRESS.—Not later than 6 months
after the end of fiscal year 1997, and each fiscal year there-
after, the Secretary shall transmit to the Congress a report
describing—
‘‘(1) whether the States are meeting—
‘‘(A) the participation rates described in
section 406(a); and
‘‘(B) the objectives of—
‘‘(i) increasing employment and earn-
ings of needy families, and child support
collections; and
‘‘(ii) decreasing out-of-wedlock preg-
nancies and child poverty;
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‘‘(2) the demographic and financial characteris-
tics of families applying for assistance, families re-
ceiving assistance, and families that become ineligible
to receive assistance;
‘‘(3) the characteristics of each State program
funded under this part; and
‘‘(4) the trends in employment and earnings of
needy families with minor children living at home.
‘‘SEC. 411. DIRECT FUNDING AND ADMINISTRATION BY IN-
DIAN TRIBES.
‘‘(a) GRANTS FOR INDIAN TRIBES.—
‘‘(1) TRIBAL FAMILY ASSISTANCE GRANT.—
‘‘(A) IN GENERAL.—For each of fiscal years
1997, 1998, 1999, and 2000, the Secretary shall
pay to each Indian tribe that has an approved
tribal family assistance plan a tribal family as-
sistance grant for the fiscal year in an amount
equal to the amount determined under subpara-
graph (B), and shall reduce the grant payable
under section 402(a)(1) to any State in which
lies the service area or areas of the Indian tribe
by that portion of the amount so determined that
is attributable to expenditures by the State.
‘‘(B) AMOUNT DETERMINED.—
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‘‘(i) IN GENERAL.—The amount deter-
mined under this subparagraph is an
amount equal to the total amount of the
Federal payments to a State or States
under section 403 for fiscal year 1994 (as
in effect during such fiscal year) attrib-
utable to expenditures by the State or States
under parts A and F of this title (as so in
effect) for fiscal year 1994 for Indian fami-
lies residing in the service area or areas
identified by the Indian tribe pursuant to
subsection (b)(1)(C).
‘‘(ii) 
USE
OF
STATE
SUBMITTED
DATA.—
‘‘(I) IN GENERAL.—The Secretary
shall use State submitted data to make
each determination under clause (i).
‘‘(II) DISAGREEMENT
WITH
DE-
TERMINATION.—If an Indian tribe or
tribal 
organization 
disagrees 
with
State submitted data described under
subclause (I), the Indian tribe or tribal
organization may submit to the Sec-
retary such additional information as
may be relevant to making the deter-
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mination under clause (i) and the Sec-
retary may consider such information
before making such determination.
‘‘(2) GRANTS
FOR
INDIAN
TRIBES
THAT
RE-
CEIVED JOBS FUNDS.—
‘‘(A) IN GENERAL.—The Secretary shall pay
to each eligible Indian tribe for each of fiscal
years 1996, 1997, 1998, 1999, and 2000 a grant
in an amount equal to the amount received by
the Indian tribe in fiscal year 1994 under sec-
tion 482(i) (as in effect during fiscal year 1994).
‘‘(B) ELIGIBLE
INDIAN
TRIBE.—For pur-
poses of subparagraph (A), the term ‘eligible In-
dian tribe’ means an Indian tribe or Alaska Na-
tive organization that conducted a job opportuni-
ties and basic skills training program in fiscal
year 1995 under section 482(i) (as in effect dur-
ing such fiscal year).
‘‘(C) USE OF GRANT.—Each Indian tribe to
which a grant is made under this paragraph
shall use the grant for the purpose of operating
a program to make work activities available to
members of the Indian tribe.
‘‘(D) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
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wise 
appropriated, 
there 
are 
appropriated
$7,638,474 for each fiscal year specified in sub-
paragraph (A) for grants under subparagraph
(A).
‘‘(b) 3-YEAR TRIBAL FAMILY ASSISTANCE PLAN.—
‘‘(1) IN GENERAL.—Any Indian tribe that de-
sires to receive a tribal family assistance grant shall
submit to the Secretary a 3-year tribal family assist-
ance plan that—
‘‘(A) outlines the Indian tribe’s approach to
providing welfare-related services for the 3-year
period, consistent with this section;
‘‘(B) specifies whether the welfare-related
services provided under the plan will be provided
by the Indian tribe or through agreements, con-
tracts, or compacts with intertribal consortia,
States, or other entities;
‘‘(C) identifies the population and service
area or areas to be served by such plan;
‘‘(D) provides that a family receiving as-
sistance under the plan may not receive duplica-
tive assistance from other State or tribal pro-
grams funded under this part;
‘‘(E) identifies the employment opportuni-
ties in or near the service area or areas of the
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Indian tribe and the manner in which the In-
dian tribe will cooperate and participate in en-
hancing such opportunities for recipients of as-
sistance under the plan consistent with any ap-
plicable State standards; and
‘‘(F) applies the fiscal accountability provi-
sions of section 5(f)(1) of the Indian Self-Deter-
mination and Education Assistance Act (25
U.S.C. 450c(f)(1)), relating to the submission of
a single-agency audit report required by chapter
75 of title 31, United States Code.
‘‘(2) APPROVAL.—The Secretary shall approve
each tribal family assistance plan submitted in ac-
cordance with paragraph (1).
‘‘(3) CONSORTIUM OF TRIBES.—Nothing in this
section shall preclude the development and submission
of a single tribal family assistance plan by the par-
ticipating Indian tribes of an intertribal consortium.
‘‘(c) MINIMUM WORK PARTICIPATION REQUIREMENTS
AND TIME LIMITS.—The Secretary, with the participation
of Indian tribes, shall establish for each Indian tribe receiv-
ing a grant under this section minimum work participa-
tion requirements, appropriate time limits for receipt of
welfare-related services under the grant, and penalties
against individuals—
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‘‘(1) consistent with the purposes of this section;
‘‘(2) consistent with the economic conditions and
resources available to each tribe; and
‘‘(3) similar to comparable provisions in section
406(d).
‘‘(d) EMERGENCY ASSISTANCE.—Nothing in this sec-
tion shall preclude an Indian tribe from seeking emergency
assistance from any Federal loan program or emergency
fund.
‘‘(e) ACCOUNTABILITY.—Nothing in this section shall
be construed to limit the ability of the Secretary to main-
tain program funding accountability consistent with—
‘‘(1) generally accepted accounting principles;
and
‘‘(2) the requirements of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C.
450 et seq.).
‘‘(f) PENALTIES.—
‘‘(1) Subsections (a)(1), (a)(6), and (b) of section
408, shall apply to an Indian tribe with an approved
tribal assistance plan in the same manner as such
subsections apply to a State.
‘‘(2) Section 408(a)(3) shall apply to an Indian
tribe with an approved tribal assistance plan by sub-
stituting ‘meet minimum work participation require-
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ments established under section 411(c)’ for ‘comply
with section 406(a)’.
‘‘(g) DATA COLLECTION
AND REPORTING.—Section
410 shall apply to an Indian tribe with an approved tribal
family assistance plan.
‘‘(h) SPECIAL RULE FOR INDIAN TRIBES IN ALAS-
KA.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this section, and except as provided in
paragraph (2), a tribal organization in the State of
Alaska that receives a tribal family assistance grant
under this section shall use the grant to operate a
program in accordance with the requirements com-
parable to the requirements applicable to the program
of the State of Alaska funded under this part. Com-
parability of programs shall be established on the
basis of program criteria developed by the Secretary
in consultation with the State of Alaska and the trib-
al organizations.
‘‘(2) WAIVER.—An Indian tribe described in
paragraph (1) may apply to the appropriate State
authority to receive a waiver of the requirement of
paragraph (1).
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‘‘SEC. 412. RESEARCH, EVALUATIONS, AND NATIONAL STUD-
IES.
‘‘(a) RESEARCH.—The Secretary shall conduct re-
search on the benefits, effects, and costs of operating dif-
ferent State programs funded under this part, including
time limits relating to eligibility for assistance. The re-
search shall include studies on the effects of different pro-
grams and the operation of such programs on welfare de-
pendency, illegitimacy, teen pregnancy, employment rates,
child well-being, and any other area the Secretary deems
appropriate. The Secretary shall also conduct research on
the costs and benefits of State activities under section 406.
‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVATIVE
APPROACHES TO REDUCING WELFARE DEPENDENCY AND
INCREASING CHILD WELL-BEING.—
‘‘(1) IN
GENERAL.—The Secretary may assist
States in developing, and shall evaluate, innovative
approaches for reducing welfare dependency and in-
creasing the well-being of minor children living at
home with respect to recipients of assistance under
programs funded under this part. The Secretary may
provide funds for training and technical assistance to
carry out the approaches developed pursuant to this
paragraph.
‘‘(2) EVALUATIONS.—In performing the evalua-
tions under paragraph (1), the Secretary shall, to the
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maximum extent feasible, use random assignment as
an evaluation methodology.
‘‘(c) DISSEMINATION
OF INFORMATION.—The Sec-
retary shall develop innovative methods of disseminating
information on any research, evaluations, and studies con-
ducted under this section, including the facilitation of the
sharing of information and best practices among States and
localities through the use of computers and other tech-
nologies.
‘‘(d) ANNUAL RANKING OF STATES AND REVIEW OF
MOST AND LEAST SUCCESSFUL WORK PROGRAMS.—
‘‘(1) ANNUAL
RANKING
OF
STATES.—The Sec-
retary shall rank annually the States to which grants
are paid under section 402 in the order of their suc-
cess in placing recipients of assistance under the
State program funded under this part into long-term
private sector jobs, reducing the overall welfare case-
load, and, when a practicable method for calculating
this information becomes available, diverting individ-
uals from formally applying to the State program
and receiving assistance. In ranking States under this
subsection, the Secretary shall take into account the
average number of minor children living at home in
families in the State that have incomes below the pov-
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erty line and the amount of funding provided each
State for such families.
‘‘(2) ANNUAL REVIEW OF MOST AND LEAST SUC-
CESSFUL WORK PROGRAMS.—The Secretary shall re-
view the programs of the 3 States most recently
ranked highest under paragraph (1) and the 3 States
most recently ranked lowest under paragraph (1) that
provide parents with work experience, assistance in
finding employment, and other work preparation ac-
tivities and support services to enable the families of
such parents to leave the program and become self-suf-
ficient.
‘‘(e) ANNUAL RANKING OF STATES AND REVIEW OF IS-
SUES RELATING TO OUT-OF-WEDLOCK BIRTHS.—
‘‘(1) ANNUAL RANKING OF STATES.—
‘‘(A) IN GENERAL.—The Secretary shall an-
nually rank States to which grants are made
under section 402 based on the following ranking
factors:
‘‘(i) ABSOLUTE OUT-OF-WEDLOCK RA-
TIOS.—The ratio represented by—
‘‘(I) the total number of out-of-
wedlock births in families receiving as-
sistance under the State program
under this part in the State for the
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most recent fiscal year for which infor-
mation is available; over
‘‘(II) the total number of births in
families receiving assistance under the
State program under this part in the
State for such year.
‘‘(ii) NET CHANGES IN THE OUT-OF-
WEDLOCK
RATIO.—The difference between
the ratio described in subparagraph (A)(i)
for the most recent fiscal year for which in-
formation is available and such State’s
ratio determined for the preceding year.
‘‘(2) ANNUAL REVIEW.—The Secretary shall re-
view the programs of the 5 States most recently
ranked highest under paragraph (1) and the 5 States
most recently ranked the lowest under paragraph (1).
‘‘(f) STATE-INITIATED STUDIES.—A State shall be eli-
gible to receive funding to evaluate the State’s family assist-
ance program funded under this part if—
‘‘(1) the State submits a proposal to the Sec-
retary for such evaluation,
‘‘(2) the Secretary determines that the design
and approach of the evaluation is rigorous and is
likely to yield information that is credible and will
be useful to other States, and
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‘‘(3) unless otherwise waived by the Secretary,
the State provides a non-Federal share of at least 10
percent of the cost of such study.
‘‘(g) FUNDING OF STUDIES AND DEMONSTRATIONS.—
‘‘(1) IN GENERAL.—Out of any money in the
Treasury of the United States not otherwise appro-
priated, there are appropriated $15,000,000 for each
fiscal year specified in section 402(a)(1) for the pur-
pose of paying—
‘‘(A) the cost of conducting the research de-
scribed in subsection (a);
‘‘(B) the cost of developing and evaluating
innovative approaches for reducing welfare de-
pendency and increasing the well-being of minor
children under subsection (b);
‘‘(C) the Federal share of any State-initi-
ated study approved under subsection (f); and
‘‘(D) an amount determined by the Sec-
retary to be necessary to operate and evaluate
demonstration projects, relating to this part, that
are in effect or approved under section 1115 as
of September 30, 1995, and are continued after
such date.
‘‘(2) ALLOCATION.—Of the amount appropriated
under paragraph (1) for a fiscal year—
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‘‘(A) 50 percent shall be allocated for the
purposes described in subparagraphs (A) and
(B) of paragraph (1), and
‘‘(B) 50 percent shall be allocated for the
purposes described in subparagraphs (C) and
(D) of paragraph (1).
‘‘SEC. 413. STUDY BY THE CENSUS BUREAU.
‘‘(a) IN GENERAL.—The Bureau of the Census shall
expand the Survey of Income and Program Participation
as necessary to obtain such information as will enable in-
terested persons to evaluate the impact of the amendments
made by subtitle A of the Personal Responsibility and Work
Opportunity Act of 1995 on a random national sample of
recipients of assistance under State programs funded under
this part and (as appropriate) other low income families,
and in doing so, shall pay particular attention to the issues
of out-of-wedlock birth, welfare dependency, the beginning
and end of welfare spells, and the causes of repeat welfare
spells.
‘‘(b) APPROPRIATION.—Out of any money in the
Treasury of the United States not otherwise appropriated,
there are appropriated $10,000,000 for each of fiscal years
1996, 1997, 1998, 1999, and 2000 for payment to the Bu-
reau of the Census to carry out subsection (a).
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‘‘SEC. 414. WAIVERS.
‘‘(a) CONTINUATION OF WAIVERS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), if any waiver granted to a State under sec-
tion 1115 or otherwise which relates to the provision
of assistance under a State plan under this part is
in effect or approved by the Secretary as of October
1, 1995, the amendments made by the Personal Re-
sponsibility and Work Opportunity Act of 1995 shall
not apply with respect to the State before the expira-
tion (determined without regard to any extensions) of
the waiver to the extent such amendments are incon-
sistent with the terms of the waiver.
‘‘(2) FINANCING
LIMITATION.—Notwithstanding
any other provision of law, beginning with fiscal year
1996, a State operating under a waiver described in
paragraph (1) shall receive the payment described for
such State for such fiscal year under section 402, in
lieu of any other payment provided for in the waiver.
‘‘(b) STATE OPTION TO TERMINATE WAIVER.—
‘‘(1) IN GENERAL.—A State may terminate a
waiver described in subsection (a) before the expira-
tion of the waiver.
‘‘(2) REPORT.—A State which terminates a
waiver under paragraph (1) shall submit a report to
the Secretary summarizing the waiver and any avail-
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able information concerning the result or effect of
such waiver.
‘‘(3) HOLD HARMLESS PROVISION.—
‘‘(A) IN
GENERAL.—Notwithstanding any
other provision of law, a State that, not later
than the date described in subparagraph (B),
submits a written request to terminate a waiver
described in subsection (a) shall be held harmless
for accrued cost neutrality liabilities incurred
under the terms and conditions of such waiver.
‘‘(B) DATE DESCRIBED.—The date described
in this subparagraph is the later of—
‘‘(i) January 1, 1996; or
‘‘(ii) 90 days following the adjourn-
ment of the first regular session of the State
legislature that begins after the date of the
enactment of the Personal Responsibility
and Work Opportunity Act of 1995.
‘‘(c) SECRETARIAL ENCOURAGEMENT
OF CURRENT
WAIVERS.—The Secretary shall encourage any State oper-
ating a waiver described in subsection (a) to continue such
waiver and to evaluate, using random sampling and other
characteristics of accepted scientific evaluations, the result
or effect of such waiver.
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‘‘(d) CONTINUATION
OF INDIVIDUAL WAIVERS.—A
State may elect to continue one or more individual waivers
described in subsection (a)(1).
‘‘SEC. 415. ASSISTANT SECRETARY FOR FAMILY SUPPORT.
‘‘The programs under this part and part D shall be
administered by an Assistant Secretary for Family Support
within the Department of Health and Human Services, who
shall be appointed by the President, by and with the advice
and consent of the Senate, and who shall be in addition
to any other Assistant Secretary of Health and Human
Services provided for by law.
‘‘SEC. 416. LIMITATION ON FEDERAL AUTHORITY.
‘‘No officer or employee of the Federal Government
may regulate the conduct of States under this part or en-
force any provision of this part, except to the extent ex-
pressly provided in this part.
‘‘SEC. 417. DEFINITIONS.
‘‘As used in this part:
‘‘(1) ADULT.—The term ‘adult’ means an indi-
vidual who is not a minor child.
‘‘(2) MINOR
CHILD.—The term ‘minor child’
means an individual who—
‘‘(A) has not attained 18 years of age; or
‘‘(B) has not attained 19 years of age and
is a full-time student in a secondary school (or
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in the equivalent level of vocational or technical
training).
‘‘(3) FISCAL
YEAR.—The term ‘fiscal year’
means any 12-month period ending on September 30
of a calendar year.
‘‘(4) INDIAN, INDIAN TRIBE, AND TRIBAL ORGANI-
ZATION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the terms ‘Indian’, ‘Indian
tribe’, and ‘tribal organization’ have the mean-
ing given such terms by section 4 of the Indian
Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
‘‘(B) SPECIAL RULE FOR INDIAN TRIBES IN
ALASKA.—The term ‘Indian tribe’ means, with
respect to the State of Alaska, only the following
Alaska Native regional nonprofit corporations:
‘‘(i) Arctic Slope Native Association.
‘‘(ii) Kawerak, Inc.
‘‘(iii) Maniilaq Association.
‘‘(iv) Association of Village Council
Presidents.
‘‘(v) Tanana Chiefs Conference.
‘‘(vi) Cook Inlet Tribal Council.
‘‘(vii) Bristol Bay Native Association.
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‘‘(viii) Aleutian and Pribilof Island
Association.
‘‘(ix) Chugachmuit.
‘‘(x) Tlingit Haida Central Council.
‘‘(xi) Kodiak Area Native Association.
‘‘(xii) Copper River Native Associa-
tion.
‘‘(xiii) Metlakatla Indian Tribe.
‘‘(5) STATE.—Except as otherwise specifically
provided, the term ‘State’ includes the several States,
the District of Columbia, the Commonwealth of Puer-
to Rico, the United States Virgin Islands, Guam, and
American Samoa.’’.
SEC. 12102. REPORT ON DATA PROCESSING.
(a) IN GENERAL.—Within 6 months after the date of
the enactment of this Act, the Secretary of Health and
Human Services shall prepare and submit to the Congress
a report on—
(1) the status of the automated data processing
systems operated by the States to assist management
in the administration of State programs under part
A of title IV of the Social Security Act (whether in
effect before or after October 1, 1995); and
(2) what would be required to establish a system
capable of—
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(A) tracking participants in public pro-
grams over time; and
(B) checking case records of the States to de-
termine whether individuals are participating in
public programs of 2 or more States.
(b) PREFERRED CONTENTS.—The report required by
subsection (a) should include—
(1) a plan for building on the automated data
processing systems of the States to establish a system
with the capabilities described in subsection (a)(2);
and
(2) an estimate of the amount of time required
to establish such a system and of the cost of establish-
ing such a system.
SEC. 12103. CONFORMING AMENDMENTS TO THE SOCIAL
SECURITY ACT.
(a) AMENDMENTS TO TITLE II.—
(1) 
Section 
205(c)(2)(C)(vi) 
(42 
U.S.C.
405(c)(2)(C)(vi)), as so redesignated by section
321(a)(9)(B) of the Social Security Independence and
Program Improvements Act of 1994, is amended—
(A) by inserting ‘‘an agency administering
a program funded under part A of title IV or’’
before ‘‘an agency operating’’; and
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(B) by striking ‘‘A or D of title IV of this
Act’’ and inserting ‘‘D of such title’’.
(2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is
amended by inserting ‘‘under a State program funded
under’’ before ‘‘part A of title IV’’.
(b) AMENDMENTS TO PART D OF TITLE IV.—
(1) Section 451 (42 U.S.C. 651) is amended by
striking ‘‘aid’’ and inserting ‘‘assistance under a
State program funded’’.
(2) 
Section 
452(a)(10)(C) 
(42 
U.S.C.
652(a)(10)(C)) is amended—
(A) by striking ‘‘aid to families with de-
pendent children’’ and inserting ‘‘assistance
under a State program funded under part A’’;
(B) by striking ‘‘such aid’’ and inserting
‘‘such assistance’’; and
(C) by striking ‘‘under section 402(a)(26) or
471(a)(17)’’ and inserting ‘‘pursuant to section
408(a)(4) or under section 471(a)(17)’’.
(3) 
Section 
452(a)(10)(F) 
(42 
U.S.C.
652(a)(10)(F)) is amended—
(A) by striking ‘‘aid under a State plan ap-
proved’’ and inserting ‘‘assistance under a State
program funded’’; and
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(B) by striking ‘‘in accordance with the
standards 
referred 
to 
in 
section
402(a)(26)(B)(ii)’’ and inserting ‘‘by the State’’.
(4) Section 452(b) (42 U.S.C. 652(b)) is amend-
ed in the first sentence by striking ‘‘aid under the
State plan approved under part A’’ and inserting
‘‘assistance under the State program funded under
part A’’.
(5) 
Section 
452(d)(3)(B)(i) 
(42 
U.S.C.
652(d)(3)(B)(i)) is amended by striking ‘‘1115(c)’’
and inserting ‘‘1115(b)’’.
(6) 
Section 
452(g)(2)(A)(ii)(I) 
(42 
U.S.C.
652(g)(2)(A)(ii)(I)) is amended by striking ‘‘aid is
being paid under the State’s plan approved under
part A or E’’ and inserting ‘‘assistance is being pro-
vided under the State program funded under part A
or aid is being paid under the State’s plan approved
under part E’’.
(7) 
Section 
452(g)(2)(A) 
(42 
U.S.C.
652(g)(2)(A)) is amended in the matter following
clause (iii) by striking ‘‘aid was being paid under the
State’s plan approved under part A or E’’ and insert-
ing ‘‘assistance was being provided under the State
program funded under part A or aid was being paid
under the State’s plan approved under part E’’.
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(8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is
amended in the matter following subparagraph (B)—
(A) by striking ‘‘who is a dependent child’’
and inserting ‘‘with respect to whom assistance
is being provided under the State program fund-
ed under part A’’;
(B) by inserting ‘‘by the State agency ad-
ministering the State plan approved under this
part’’ after ‘‘found’’; and
(C) by striking ‘‘under section 402(a)(26)’’
and inserting ‘‘with the State in establishing pa-
ternity’’.
(9) Section 452(h) (42 U.S.C. 652(h)) is amend-
ed by striking ‘‘under section 402(a)(26)’’ and insert-
ing ‘‘pursuant to section 408(a)(4)’’.
(10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is
amended by striking ‘‘aid under part A of this title’’
and inserting ‘‘assistance under a State program
funded under part A’’.
(11) Section 454(5)(A) (42 U.S.C. 654(5)(A))) is
amended—
(A) by striking ‘‘under section 402(a)(26)’’
and inserting ‘‘pursuant to section 408(a)(4)’’;
and
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(B) by striking ‘‘; except that this para-
graph shall not apply to such payments for any
month following the first month in which the
amount collected is sufficient to make such fam-
ily ineligible for assistance under the State plan
approved under part A;’’ and inserting a
comma.
(12) Section 454(6)(D) (42 U.S.C. 654(6)(D)) is
amended by striking ‘‘aid under a State plan ap-
proved’’ and inserting ‘‘assistance under a State pro-
gram funded’’.
(13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is
amended by striking ‘‘under section 402(a)(26)’’.
(14) 
Section 
466(a)(3)(B) 
(42 
U.S.C.
666(a)(3)(B)) is amended by striking ‘‘402(a)(26)’’
and inserting ‘‘408(a)(4)’’.
(15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is
amended by striking ‘‘aid’’ and inserting ‘‘assistance
under a State program funded’’.
(16) Section 469(a) (42 U.S.C. 669(a)) is
amended—
(A) by striking ‘‘aid under plans approved’’
and inserting ‘‘assistance under State programs
funded’’; and
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(B) by striking ‘‘such aid’’ and inserting
‘‘such assistance’’.
(c) REPEAL OF PART F OF TITLE IV.—Part F of title
IV (42 U.S.C. 681–687) is repealed.
(d) AMENDMENT TO TITLE X.—Section 1002(a)(7) (42
U.S.C. 1202(a)(7)) is amended by striking ‘‘aid to families
with dependent children under the State plan approved
under section 402 of this Act’’ and inserting ‘‘assistance
under a State program funded under part A of title IV’’.
(e) AMENDMENTS TO TITLE XI.—
(1) Section 1108 (42 U.S.C. 1308) is amended to
read as follows:
‘‘SEC. 1108. LIMITATION ON PAYMENTS TO PUERTO RICO,
THE VIRGIN ISLANDS, GUAM, AND AMERICAN
SAMOA.
‘‘(a) IN GENERAL.—Notwithstanding any other provi-
sion of this Act, the total amount certified by the Secretary
of Health and Human Services under titles I, X, XIV, and
XVI, and under parts A and B of title IV for payment to
any territory for a fiscal year shall not exceed the ceiling
amount for the territory for the fiscal year.
‘‘(b) DEFINITIONS.—As used in this section:
‘‘(1) TERRITORY.—The term ‘territory’ means
Puerto Rico, the Virgin Islands, Guam, and Amer-
ican Samoa.
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‘‘(2) 
CEILING
AMOUNT.—The 
term 
‘ceiling
amount’ means, with respect to a territory and a fis-
cal year, the mandatory ceiling amount with respect
to the territory plus the discretionary ceiling amount
with respect to the territory, reduced for the fiscal
year in accordance with subsection (e).
‘‘(3) MANDATORY CEILING AMOUNT.—The term
‘mandatory ceiling amount’ means—
‘‘(A) $103,538,000 with respect to for Puer-
to Rico;
‘‘(B) $4,812,000 with respect to Guam;
‘‘(C) $3,677,397 with respect to the Virgin
Islands; and
‘‘(D) $1,122,095 with respect to American
Samoa.
‘‘(4) DISCRETIONARY
CEILING
AMOUNT.—The
term ‘discretionary ceiling amount’ means, with re-
spect to a territory, the dollar amount specified in
subsection (c)(2) with respect to the territory.
‘‘(c) DISCRETIONARY GRANTS.—
‘‘(1) IN GENERAL.—The Secretary shall make a
grant to each territory for any fiscal year in the
amount appropriated pursuant to paragraph (2) for
the fiscal year for payment to the territory.
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‘‘(2) USE OF GRANT.—Any territory to which a
grant is made under paragraph (1) may expend the
amount under any program operated or funded under
any provision of law specified in subsection (a).
‘‘(3) LIMITATION ON AUTHORIZATION OF APPRO-
PRIATIONS.—For grants under paragraph (1), there
are authorized to be appropriated to the Secretary for
each fiscal year—
‘‘(A) $7,951,000 for payment to Puerto
Rico;
‘‘(B) $345,000 for payment to Guam;
‘‘(C) $275,000 for payment to the Virgin Is-
lands; and
‘‘(D) $190,000 for payment to American
Samoa.
‘‘(d) AUTHORITY TO TRANSFER FUNDS AMONG PRO-
GRAMS.—Notwithstanding any other provision of this Act,
any territory to which an amount is paid under any provi-
sion of law specified in subsection (a) may use part or all
of the amount to carry out any program operated by the
territory, or funded, under any other such provision of law.
‘‘(e) MAINTENANCE OF EFFORT.—The ceiling amount
with respect to a territory shall be reduced for a fiscal year
by an amount equal to the amount (if any) by which—
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‘‘(1) the total amount expended by the territory
under all programs of the territory operated pursuant
to the provisions of law specified in subsection (a) (as
such provisions were in effect for fiscal year 1995) for
fiscal year 1995; exceeds
‘‘(2) the total amount expended by the territory
under all programs of the territory that are funded
under the provisions of law specified in subsection (a)
for the fiscal year that immediately precedes the fiscal
year referred to in the matter preceding paragraph
(1).’’.
(2) Section 1109 (42 U.S.C. 1309) is amended
by striking ‘‘or part A of title IV,’’.
(3) Section 1115 (42 U.S.C. 1315) is amended—
(A) in subsection (a)(2)—
(i) by inserting ‘‘(A)’’ after ‘‘(2)’’;
(ii) by striking ‘‘403,’’;
(iii) by striking the period at the end
and inserting ‘‘, and’’; and
(iv) by adding at the end the following
new subparagraph:
‘‘(B) costs of such project which would not other-
wise be a permissible use of funds under part A of
title IV and which are not included as part of the
costs of projects under section 1110, shall to the extent
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and for the period prescribed by the Secretary, be re-
garded as a permissible use of funds under such
part.’’; and
(B) in subsection (c)(3), by striking ‘‘under
the program of aid to families with dependent
children’’ and inserting ‘‘part A of such title’’.
(4) Section 1116 (42 U.S.C. 1316) is amended—
(A) in each of subsections (a)(1), (b), and
(d), by striking ‘‘or part A of title IV,’’; and
(B) in subsection (a)(3), by striking ‘‘404,’’.
(5) Section 1118 (42 U.S.C. 1318) is amended—
(A) by striking ‘‘403(a),’’;
(B) by striking ‘‘and part A of title IV,’’;
and
(C) by striking ‘‘, and shall, in the case of
American Samoa, mean 75 per centum with re-
spect to part A of title IV’’.
(6) Section 1119 (42 U.S.C. 1319) is amended—
(A) by striking ‘‘or part A of title IV’’; and
(B) by striking ‘‘403(a),’’.
(7) Section 1133(a) (42 U.S.C. 1320b–3(a)) is
amended by striking ‘‘or part A of title IV,’’.
(8) Section 1136 (42 U.S.C. 1320b–6) is re-
pealed.
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(9) Section 1137 (42 U.S.C. 1320b–7) is amend-
ed—
(A) in subsection (b), by striking paragraph
(1) and inserting the following:
‘‘(1) any State program funded under part A of
title IV of this Act;’’; and
(B) in subsection (d)(1)(B)—
(i) by striking ‘‘In this subsection—’’
and all that follows through ‘‘(ii) in’’ and
inserting ‘‘In this subsection, in’’;
(ii) by redesignating subclauses (I),
(II), and (III) as clauses (i), (ii), and (iii);
and
(iii) by moving such redesignated ma-
terial 2 ems to the left.
(f) AMENDMENT TO TITLE XIV.—Section 1402(a)(7)
(42 U.S.C. 1352(a)(7)) is amended by striking ‘‘aid to fam-
ilies with dependent children under the State plan approved
under section 402 of this Act’’ and inserting ‘‘assistance
under a State program funded under part A of title IV’’.
(g) AMENDMENT TO TITLE XVI AS IN EFFECT WITH
RESPECT TO THE TERRITORIES.—Section 1602(a)(11), as
in effect without regard to the amendment made by section
301 of the Social Security Amendments of 1972 (42 U.S.C.
1382 note), is amended by striking ‘‘aid under the State
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plan approved’’ and inserting ‘‘assistance under a State
program funded’’.
(h) AMENDMENT TO TITLE XVI AS IN EFFECT WITH
RESPECT
TO
THE STATES.—Section 1611(c)(5)(A) (42
U.S.C. 1382(c)(5)(A)) is amended to read as follows: ‘‘(A)
a State program funded under part A of title IV,’’.
SEC. 12104. CONFORMING AMENDMENTS TO THE FOOD
STAMP ACT OF 1977 AND RELATED PROVI-
SIONS.
(a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C.
2014) is amended—
(1) in the second sentence of subsection (a), by
striking ‘‘plan approved’’ and all that follows through
‘‘title IV of the Social Security Act’’ and inserting
‘‘program funded under part A of title IV of the So-
cial Security Act (42 U.S.C. 601 et seq.) that the Sec-
retary determines complies with standards established
by the Secretary that ensure that the standards under
the State program are comparable to or more restric-
tive than those in effect on June 1, 1995’’;
(2) in subsection (d)—
(A) in paragraph (5), by striking ‘‘assist-
ance to families with dependent children’’ and
inserting ‘‘assistance under a State program
funded’’; and
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(B) by striking paragraph (13) and redesig-
nating paragraphs (14), (15), and (16) as para-
graphs (13), (14), and (15), respectively;
(3) in subsection (j), by striking ‘‘plan approved
under part A of title IV of such Act (42 U.S.C. 601
et seq.)’’ and inserting ‘‘program funded under part
A of title IV of the Act (42 U.S.C. 601 et seq.) that
the Secretary determines complies with standards es-
tablished by the Secretary that ensure that the stand-
ards under the State program are comparable to or
more restrictive than those in effect on June 1, 1995’’.
(b) Section 6 of such Act (7 U.S.C. 2015) is amend-
ed—
(1) in subsection (c)(5), by striking ‘‘the State
plan approved’’ and inserting ‘‘the State program
funded’’;
(2) in subsection (e)—
(A) by striking ‘‘aid to families with de-
pendent children’’ and inserting ‘‘benefits under
a State program funded’’; and
(B) by inserting before the semicolon the fol-
lowing: ‘‘that the Secretary determines complies
with standards established by the Secretary that
ensure that the standards under the State pro-
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gram are comparable to or more restrictive than
those in effect on June 1, 1995’’; and
(3) by adding at the end the following new sub-
section:
‘‘(i) ELIGIBILITY UNDER OTHER LAW.—Notwith-
standing any other provision of this Act, a household may
not receive benefits under this Act as a result of the house-
hold’s eligibility under a State program funded under part
A of title IV of the Social Security Act (42 U.S.C. 601 et
seq.), unless the Secretary determines that any household
with income above 130 percent of the poverty guidelines is
not eligible for the program.’’.
(c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4))
is amended by striking ‘‘State plans under the Aid to Fami-
lies with Dependent Children Program under’’ and insert-
ing ‘‘State programs funded under part A of’’.
(d) Section 17 of such Act (7 U.S.C. 2026) is amend-
ed—
(1) in the first sentence of subsection (b)(1)(A),
by striking ‘‘to aid to families with dependent chil-
dren under part A of title IV of the Social Security
Act’’ and inserting ‘‘or are receiving assistance under
a State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.)’’; and
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(2) in subsection (b)(3), by adding at the end the
following new subparagraph:
‘‘(I) The Secretary may not grant a waiver
under this paragraph on or after October 1, 1995.
Any reference in this paragraph to a provision of title
IV of the Social Security Act shall be deemed to be
a reference to such provision as in effect on September
30, 1995.’’;
(e) Section 20 of such Act (7 U.S.C. 2029) is amend-
ed—
(1) in subsection (a)(2)(B) by striking ‘‘operat-
ing—’’ and all that follows through ‘‘(ii) any other’’
and inserting ‘‘operating any’’; and
(2) in subsection (b)—
(A) in paragraph (1)—
(i) by striking ‘‘(b)(1) A household’’
and inserting ‘‘(b) A household’’; and
(ii) in subparagraph (B), by striking
‘‘training program’’ and inserting ‘‘activ-
ity’’;
(B) by striking paragraph (2); and
(C) by redesignating subparagraphs (A)
through (F) as paragraphs (1) through (6), re-
spectively.
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(f) Section 5(h)(1) of the Agriculture and Consumer
Protection Act of 1973 (Public Law 93–186; 7 U.S.C. 612c
note) is amended by striking ‘‘the program for aid to fami-
lies with dependent children’’ and inserting ‘‘the State pro-
gram funded’’.
(g) Section 9 of the National School Lunch Act (42
U.S.C. 1758) is amended—
(1) in subsection (b)—
(A) in paragraph (2)(C)(ii)(II)—
(i) by striking ‘‘program for aid to
families with dependent children’’ and in-
serting ‘‘State program funded’’; and
(ii) by inserting before the period at
the end the following: ‘‘that the Secretary
determines complies with standards estab-
lished by the Secretary that ensure that the
standards under the State program are
comparable to or more restrictive than those
in effect on June 1, 1995’’; and
(B) in paragraph (6)—
(i) in subparagraph (A)(ii)—
(I) by striking ‘‘an AFDC assist-
ance unit (under the aid to families
with dependent children program au-
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thorized’’ and inserting ‘‘a family
(under the State program funded’’; and
(II) by striking ‘‘, in a State’’
and 
all 
that 
follows 
through
‘‘9902(2)))’’ and inserting ‘‘that the
Secretary determines complies with
standards established by the Secretary
that ensure that the standards under
the State program are comparable to
or more restrictive than those in effect
on June 1, 1995’’; and
(ii) in subparagraph (B), by striking
‘‘aid to families with dependent children’’
and inserting ‘‘assistance under the State
program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et
seq.) that the Secretary determines complies
with standards established by the Secretary
that ensure that the standards under the
State program are comparable to or more
restrictive than those in effect on June 1,
1995’’; and
(2) in subsection (d)(2)(C)—
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(A) by striking ‘‘program for aid to families
with dependent children’’ and inserting ‘‘State
program funded’’; and
(B) by inserting before the period at the end
the following: ‘‘that the Secretary determines
complies with standards established by the Sec-
retary that ensure that the standards under the
State program are comparable to or more re-
strictive than those in effect on June 1, 1995’’.
(h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amended—
(1) by striking ‘‘program for aid to families with
dependent children established’’ and inserting ‘‘State
program funded’’; and
(2) by inserting before the semicolon the follow-
ing: ‘‘that the Secretary determines complies with
standards established by the Secretary that ensure
that the standards under the State program are com-
parable to or more restrictive than those in effect on
June 1, 1995’’.
SEC. 12105. CONFORMING AMENDMENTS TO OTHER LAWS.
(a) Subsection (b) of section 508 of the Unemployment
Compensation Amendments of 1976 (42 U.S.C. 603a; Pub-
lic Law 94–566; 90 Stat. 2689) is amended to read as fol-
lows:
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‘‘(b) PROVISION
FOR
REIMBURSEMENT
OF
EX-
PENSES.—For purposes of section 455 of the Social Security
Act, expenses incurred to reimburse State employment of-
fices for furnishing information requested of such offices—
‘‘(1) pursuant to the third sentence of section
3(a) of the Act entitled ‘An Act to provide for the es-
tablishment of a national employment system and for
cooperation with the States in the promotion of such
system, and for other purposes’, approved June 6,
1933 (29 U.S.C. 49b(a)), or
‘‘(2) by a State or local agency charged with the
duty of carrying a State plan for child support ap-
proved under part D of title IV of the Social Security
Act,
shall be considered to constitute expenses incurred in the
administration of such State plan.’’.
(b) Section 9121 of the Omnibus Budget Reconcili-
ation Act of 1987 (42 U.S.C. 602 note) is repealed.
(c) Section 9122 of the Omnibus Budget Reconciliation
Act of 1987 (42 U.S.C. 602 note) is repealed.
(d) Section 221 of the Housing and Urban-Rural Re-
covery Act of 1983 (42 U.S.C. 602 note), relating to treat-
ment under AFDC of certain rental payments for federally
assisted housing, is repealed.
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(e) Section 159 of the Tax Equity and Fiscal Respon-
sibility Act of 1982 (42 U.S.C. 602 note) is repealed.
(f) Section 202(d) of the Social Security Amendments
of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed.
(g) Section 903 of the Stewart B. McKinney Homeless
Assistance Amendments Act of 1988 (42 U.S.C. 11381 note),
relating to demonstration projects to reduce number of
AFDC families in welfare hotels, is amended—
(1) in subsection (a), by striking ‘‘aid to families
with dependent children under a State plan ap-
proved’’ and inserting ‘‘assistance under a State pro-
gram funded’’; and
(2) in subsection (c), by striking ‘‘aid to families
with dependent children in the State under a State
plan approved’’ and inserting ‘‘assistance in the State
under a State program funded’’.
(h) The Higher Education Act of 1965 (20 U.S.C. 1001
et seq.) is amended—
(1) in section 404C(c)(3) (20 U.S.C. 1070a–
23(c)(3)), by striking ‘‘(Aid to Families with Depend-
ent Children)’’; and
(2) 
in 
section 
480(b)(2) 
(20 
U.S.C.
1087vv(b)(2)), by striking ‘‘aid to families with de-
pendent children under a State plan approved’’ and
inserting ‘‘assistance under a State program funded’’.
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(i) The Carl D. Perkins Vocational and Applied Tech-
nology Education Act (20 U.S.C. 2301 et seq.) is amend-
ed—
(1) in section 231(d)(3)(A)(ii) (20 U.S.C.
2341(d)(3)(A)(ii)), by striking ‘‘the program for aid
to dependent children’’ and inserting ‘‘the State pro-
gram funded’’;
(2) 
in 
section 
232(b)(2)(B) 
(20 
U.S.C.
2341a(b)(2)(B)), by striking ‘‘the program for aid to
families with dependent children’’ and inserting ‘‘the
State program funded’’; and
(3) in section 521(14)(B)(iii) (20 U.S.C.
2471(14)(B)(iii)), by striking ‘‘the program for aid to
families with dependent children’’ and inserting ‘‘the
State program funded’’.
(j) The Elementary and Secondary Education Act of
1965 (20 U.S.C. 2701 et seq.) is amended—
(1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)),
by striking ‘‘Aid to Families with Dependent Chil-
dren Program’’ and inserting ‘‘State program funded
under part A of title IV of the Social Security Act’’;
(2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)),
by striking ‘‘the program of aid to families with de-
pendent children under a State plan approved under’’
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and inserting ‘‘a State program funded under part A
of’’; and
(3) 
in 
section 
5203(b)(2) 
(20 
U.S.C.
7233(b)(2))—
(A) in subparagraph (A)(xi), by striking
‘‘Aid to Families with Dependent Children bene-
fits’’ and inserting ‘‘assistance under a State
program funded under part A of title IV of the
Social Security Act’’; and
(B) in subparagraph (B)(viii), by striking
‘‘Aid to Families with Dependent Children’’ and
inserting ‘‘assistance under the State program
funded under part A of title IV of the Social Se-
curity Act’’.
(k) Chapter VII of title I of Public Law 99–88 (25
U.S.C. 13d–1) is amended to read as follows: ‘‘Provided fur-
ther, That general assistance payments made by the Bureau
of Indian Affairs shall be made—
‘‘(1) after April 29, 1985, and before October 1,
1995, on the basis of Aid to Families with Dependent
Children (AFDC) standards of need; and
‘‘(2) on and after October 1, 1995, on the basis
of standards of need established under the State pro-
gram funded under part A of title IV of the Social
Security Act,
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except that where a State ratably reduces its AFDC or State
program payments, the Bureau shall reduce general assist-
ance payments in such State by the same percentage as the
State has reduced the AFDC or State program payment.’’.
(l) The Internal Revenue Code of 1986 (26 U.S.C. 1
et seq.) is amended—
(1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by
striking all that follows ‘‘agency as’’ and inserting
‘‘being eligible for financial assistance under part A
of title IV of the Social Security Act and as having
continually received such financial assistance during
the 90-day period which immediately precedes the
date on which such individual is hired by the em-
ployer.’’;
(2) 
in 
section 
3304(a)(16) 
(26 
U.S.C.
3304(a)(16)), by striking ‘‘eligibility for aid or serv-
ices,’’ and all that follows through ‘‘children ap-
proved’’ and inserting ‘‘eligibility for assistance, or
the amount of such assistance, under a State program
funded’’;
(3) in section 6103(l)(7)(D)(i) (26 U.S.C.
6103(l)(7)(D)(i)), by striking ‘‘aid to families with
dependent children provided under a State plan ap-
proved’’ and inserting ‘‘a State program funded’’;