I
103D CONGRESS
2D SESSION
H. R. 4566
To restore the American family, reduce illegitimacy, and reduce welfare
dependence.
IN THE HOUSE OF REPRESENTATIVES
JUNE 10, 1994
Mr. TALENT (for himself, Mr. HUTCHINSON, Mr. CANADY, Mr. ARMEY, Mr.
BAKER of California, Mr. BALLENGER, Mr. BARTON of Texas, Mr. BLI-
LEY, Mr. BLUTE, Mr. BOEHNER, Mr. BURTON of Indiana, Mr. CALVERT,
Mr. COBLE, Mr. COLLINS of Georgia, Mr. COX, Mr. CRANE, Mr. DICKEY,
Mr. DOOLITTLE, Mr. DORNAN, Mr. EWING, Mr. GRAMS, Mr. HANCOCK,
Mr. HASTERT, Mr. HOEKSTRA, Mr. HUNTER, Mr. ISTOOK, Mr. SAM
JOHNSON of Texas, Mr. KINGSTON, Mr. LEVY, Mr. LINDER, Mr.
MANZULLO, Mr. MCCOLLUM, Mr. MCCRERY, Mr. MCHUGH, Mr. POMBO,
Mr. ROHRBACHER, Mr. ROTH, Mr. SOLOMON, Mr. STEARS, Mr. STUMP,
Mr. WALKER, and Mr. ZELIFF) introduced the following bill; which was
referred jointly to the Committees on Ways and Means, Education and
Labor, Agriculture, Banking, Finance and Urban Affairs, the Judiciary,
Energy and Commerce, Government Operations, Rules, Natural Re-
sources, and Public Works and Transportation
A BILL
To restore the American family, reduce illegitimacy, and
reduce welfare dependence.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Real Welfare Reform
Act of 1994’’.
SEC. 2. REFERENCES IN ACT; TABLE OF CONTENTS.
(a) AMENDMENTS TO SOCIAL SECURITY ACT.—Ex-
cept as otherwise specifically provided, whenever in this
Act an amendment is expressed in terms of an amendment
to or repeal of a section or other provision, the reference
shall be considered to be made to that section or other
provision of the Social Security Act.
(b) TABLE OF CONTENTS.—The table of contents is
as follows:
Sec. 1. Short title.
Sec. 2. References in Act; table of contents.
TITLE I—WORK REQUIREMENTS FOR WELFARE RECIPIENTS
Sec. 101. Reform of the job opportunities and basic skills training program.
Sec. 102. Work requirement for able-bodied non-parents in food stamp pro-
gram.
Sec. 103. Requirement that certain AFDC applicants conduct job search activi-
ties.
Sec. 104. Effective date.
TITLE II—PROMOTION OF MARRIAGE AND SOCIAL
RESPONSIBILITY
Subtitle A—Welfare Benefits
Sec. 201. Promotion of families.
Sec. 202. Benefit provisions regarding additional children.
Sec. 203. Provisions relating to paternity establishment.
Subtitle B—Grants for Assistance to Children Born Out-Of-Wedlock
Sec. 211. Grants to States.
Subtitle C—Removal of Barriers to Interethnic Adoption
Sec. 221. Findings and purpose.
Sec. 222. Multiethnic placements.
Subtitle D—Tax Credit for Certain Low-Income Families
Sec. 231. Additional earned income credit for married individuals.
TITLE III—CHILD SUPPORT ENFORCEMENT
Sec. 301. National reporting of information relating to child support with re-
spect to certain employees.
Sec. 302. State information systems.
Sec. 303. National information systems.
Sec. 304. Income withholding.
Sec. 305. Uniform terms in orders.
Sec. 306. Improvements in paternity establishment.
Sec. 307. Waiver of fee for certain individuals receiving child support collection
or paternity determination services.
TITLE IV—SPECIFIC REFORMS IN WELFARE SPENDING
Sec. 401. Income eligibility guidelines for school lunch and breakfast programs.
Sec. 402. Repeal of expansions to food stamp program.
Sec. 403. Repeal of empowerment zones and enterprise communities.
Sec. 404. Reduction of benefits to AFDC families who also receive public hous-
ing benefits.
Sec. 405. Reduction of social services block grants.
Sec. 406. Restrictions on welfare benefits provided to aliens.
Sec. 407. Replacement of cash benefit with medical vouchers.
Sec. 408. Disability review required for SSI recipients who are 18 years of age.
Sec. 409. Amount of funds available for low-income home energy assistance.
TITLE V—STATE OPTIONS AND MISCELLANEOUS PROVISIONS
Sec. 501. Option to time limit welfare.
Sec. 502. Option to treat interstate immigrants under rules of former State
with respect to AFDC benefits.
Sec. 503. Evaluation of training programs.
Sec. 504. Elimination of welfare benefits with respect to fugitive felons and
probation and parole violators.
TITLE VI—CAPPING THE AGGREGATE GROWTH OF WELFARE
SPENDING
Sec. 601. Cap on growth of Federal spending on certain welfare programs.
Sec. 602. Establishment of welfare block grant program.
Sec. 603. Conversion of funding under certain welfare programs.
Sec. 604. Savings from welfare spending limits to be used for deficit reduction.
Sec. 605. Special rules with respect to grants for assistance to children born
out-of-wedlock.
Sec. 606. Eligibility under the medicaid program.
‘‘(A) IN GENERAL.—A State shall require
any individual described in subparagraph (B) to
participate in a State community work service
program described in section 484 in accordance
with subparagraph (C).
‘‘(B) INDIVIDUALS DESCRIBED.—An indi-
vidual described in this subparagraph is an in-
dividual—
‘‘(i) who resides in the State;
‘‘(ii) whose place of residence or em-
ployment is known by the State;
‘‘(iii) who is the noncustodial parent
of a dependent child receiving aid to fami-
lies with dependent children under part A;
and
‘‘(iv) who is known by the State to
have failed to pay required child support
on behalf of such a child.
‘‘(C) PARTICIPATION
REQUIREMENTS.—If
an individual described in subparagraph (B)—
‘‘(i) is employed, such individual shall
be required to work under the State com-
munity work service program for not less
than 16 hours per week; or
‘‘(ii) is unemployed, such individual
shall be required to—
‘‘(I) work under the State com-
munity work service program for not
less than 24 hours per week; and
‘‘(II) conduct job search activities
for not less than 16 hours per week.
‘‘(2) 
PARTICIPATION
REQUIREMENT
FOR
STATES.—With respect to individuals described in
paragraph (1), each State shall maintain a partici-
pation rate (as determined under subsection (d)(2))
of—
‘‘(A) 50 percent for quarters during fiscal
year 1995; and
‘‘(B) 90 percent for quarters during fiscal
year 1996 and succeeding fiscal years.
‘‘(c) PARTICIPATION REQUIREMENT FOR ADULT RE-
CIPIENTS OF AFDC IN SINGLE-ADULT FAMILIES.—
‘‘(1) PARTICIPATION REQUIREMENT FOR INDI-
VIDUALS.—Except as provided in subsection (a), the
State shall require each adult recipient of aid to
families with dependent children in a single-adult
family to participate in—
‘‘(A) the State community work service
program described in section 484 for not less
than 30 hours per week; or
‘‘(B) the benefits to wages program de-
scribed in section 485 for not less than 30
hours per week.
‘‘(2) 
PARTICIPATION
REQUIREMENT
ON
STATES.—With respect to individuals described in
paragraph (1), each State shall maintain a partici-
pation rate (as determined under subsection (d)(3))
of—
‘‘(A) 25 percent for calendar quarters dur-
ing fiscal year 1995; and
‘‘(B) 50 percent for calendar quarters dur-
ing fiscal year 1996 and succeeding fiscal years.
‘‘(3) WORK
PRIORITY
FOR
FAMILIES
WITH
OLDER CHILDREN.—
‘‘(A) IN GENERAL.—Except as provided in
section 402(a)(47)(A), if a single-adult family
includes at least one dependent child under age
5, the adult recipient in such family shall not
be required to participate in the program under
paragraph (1) unless at least 80 percent of all
adult recipients in single-adult families which
include only children age 5 or older are partici-
pating in the program.
‘‘(B) FAMILY STATUS.—If a State classi-
fies a family as a single-adult family including
only children age 5 or older on or after the date
which is 10 months after the date of the enact-
ment of the Real Welfare Reform Act of 1994,
the family shall continue to be so classified re-
gardless of whether an additional child under
age 5 becomes a member of the family.
‘‘(4) STATE
OPTION
REGARDING
PLACEMENT
OF
INDIVIDUALS
IN
BENEFITS
TO
WAGES
PRO-
GRAM.—The State may conduct a job placement
program under which the State contracts with pri-
vate entities to place individuals described in para-
graph (1) with qualified employers under the bene-
fits to wages program under section 485.
‘‘(5) STATE OPTION TO PROVIDE EDUCATIONAL
ACTIVITIES OR JOB SKILLS TRAINING PROGRAM.—
Subject to the approval of the Secretary, a State
may require not more than 20 percent of the adult
recipients required to participate in the program
under paragraph (2), on average during any quarter,
to conduct educational or job skills training.
‘‘(6) NONSUBSIDIZED
EMPLOYMENT
COUNT-
ABLE AS PARTICIPATION.—
‘‘(A) IN
GENERAL.—An adult recipient
may satisfy the 30-hour per week work require-
ment under paragraph (1)(A) by working solely
in nonsubsidized employment or by combining
hours worked under a community work service
program and hours worked in nonsubsidized
employment.
‘‘(B) NONSUBSIDIZED EMPLOYMENT.—For
purposes of subparagraph (A), the term
‘nonsubsidized employment’ means employment
with a private employer for wages.
‘‘(7) ADULT RECIPIENT.—For purposes of this
subsection—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the term ‘adult recipient’
means an individual whose needs are met in
whole or part with payments of aid to families
with dependent children.
‘‘(B) INDIVIDUALS EXCLUDED.—The term
‘adult recipient’ shall not include—
‘‘(i) a dependent child (unless such
child is the custodial parent of another de-
pendent child); or
‘‘(ii) any parent who is a member of
a family eligible for aid to families with de-
pendent children by reason of the unem-
ployment of the parent who is the principal
earner.
‘‘(8) SINGLE-ADULT FAMILY.—For purposes of
this subsection, the term ‘single-adult family’ means
a family receiving aid to families with dependent
children which includes one adult recipient and at
least one dependent child.
‘‘(d) DETERMINATION OF PARTICIPATION RATES.—
‘‘(1) UNEMPLOYED PARENTS.—A State’s par-
ticipation rate for purposes of subsection (a)(2) shall
be the number, expressed as a percentage, equal
to—
‘‘(A) the average weekly number of individ-
uals described in subsection (a)(1) who partici-
pated in the program under this part during
such quarter, divided by
‘‘(B) the average weekly number of such
individuals who were required under subsection
(a)(1) to participate in the program under the
part during such quarter.
‘‘(2) NONCUSTODIAL PARENTS.—A State’s par-
ticipation rate for purposes of subsection (b)(2) shall
be the number, expressed as a percentage, equal
to—
‘‘(A) the average weekly number of individ-
uals described in subsection (b)(1) who partici-
pated in the program under this part during
such quarter, divided by
‘‘(B) the average weekly number of such
individuals who were required under subsection
(b)(1) to participate in the program under the
part during such quarter.
‘‘(3) ADULT
RECIPIENTS
IN
SINGLE-ADULT
FAMILIES.—A State’s participation rate for purposes
of subsection (c)(2) shall be the number, expressed
as a percentage, equal to—
‘‘(A) the average weekly number of individ-
uals described in subsection (c)(1) who partici-
pated in the program under this part during
such quarter, divided by
‘‘(B) the average weekly number of such
individuals who were required under subsection
(c)(1) to participate in the program under this
part.
‘‘COMMUNITY WORK SERVICE PROGRAM
‘‘SEC. 484. (a) IN GENERAL.—Each State with a
plan approved under part A shall establish a community
work service program.
‘‘(b) PROGRAM DESCRIBED.—An individual partici-
pating in a State community work service program shall
work for a public or nonprofit private sector organization
performing such tasks as determined appropriate by such
organization.
‘‘(c) ENCOURAGEMENT TO PROVIDE CHILD CARE
SERVICES.—An individual participating in a State com-
munity work service program may satisfy the applicable
participation requirement under subsection (c)(1)(A) of
section 483 if such individual provides child care services
to other individuals participating in the program in the
manner, and for the period of time each week, determined
appropriate by the State.
‘‘(d) MODIFICATION TO PAYMENT SCHEDULE FOR
PARTICIPANTS.—Any payments of aid under part A or the
Food Stamp Act of 1977 to the family of an individual
participating in a State community work service program
shall be made on a biweekly basis.
‘‘(e) BENEFITS BASED ON PERFORMANCE.—If an in-
dividual fails to meet the participation requirements im-
posed on such individual under section 483 with respect
to a State community work service program due to an un-
excused absence, the amount of aid under part A and the
Food Stamp Act of 1977 to be received by the family of
the individual participating in such program shall be re-
duced in proportion to the number of hours of
uncompleted work or job search under such program.
‘‘BENEFITS TO WAGES PROGRAM
‘‘SEC. 485. (a) IN GENERAL.—Each State with a
plan approved under part A shall establish a benefits to
wages program.
‘‘(b) PROGRAM DESCRIBED.—Under a State benefits
to wages program, an individual shall work for a qualified
employer (as defined in subsection (d)) and the Secretary
shall pay a wage subsidy in the amount determined under
subsection (c) to such employer on behalf of such individ-
ual. Such wage subsidy shall be in lieu of all or part of
any benefits described in subsection (c) which the individ-
ual would otherwise be eligible to receive. The State bene-
fits to wages program shall be designed to place individ-
uals 
participating 
in 
the 
program 
in 
long-term
nonsubsidized employment.
‘‘(c) AMOUNT OF WAGE SUBSIDY.—The amount of
the wage subsidy for an individual for a month is an
amount determined appropriate by the State which does
not exceed the sum of—
‘‘(1) the monthly amount that would otherwise
be payable as aid to families with dependent children
to the family of such individual, and
‘‘(2) the monthly cash value of the food stamp
benefits that would otherwise be available to such in-
dividual’s household,
determined as of the first day of the first full month of
the employment of such individual by a qualified employer.
‘‘(d) QUALIFIED EMPLOYER.—
‘‘(1) IN GENERAL.—For purposes of this sub-
section, an employer is qualified to receive a wage
subsidy under this subsection if—
‘‘(A) the employer is a private entity;
‘‘(B) the employer is approved by the State
to participate in its benefits to wages program;
and
‘‘(C) gross wages (as defined in section
209 but without regard to any dollar limitation
contained is such section) received by an indi-
vidual participating in the benefits to wages
program for any month are not less than the
amount determined under paragraph (2).
‘‘(2) WAGES BASED ON PERFORMANCE.—
‘‘(A) IN GENERAL.—An employer shall pay
to an individual participating in the benefits to
wages program for any month an amount equal
to the product of—
‘‘(i) the greater of—
‘‘(I) the hourly wage subsidy
amount determined under subpara-
graph (B); or
‘‘(II) the greater of the Federal
minimum wage or the applicable State
minimum wage; and
‘‘(ii) the number of hours worked by
such individual during such month.
‘‘(B) HOURLY WAGE SUBSIDY AMOUNT.—
The hourly wage subsidy amount determined
under this subparagraph with respect to an in-
dividual for any month is an amount equal to—
‘‘(i) the amount of the wage subsidy
under subsection (c); divided by
‘‘(ii) the number of hours the individ-
ual is required to work in the benefits to
wages program for the month.
‘‘(3) SELECTION OF EMPLOYERS.—In selecting
employers under subparagraph (B) of paragraph (1),
the State shall give priority to those employers dem-
onstrating an ability to place individuals in long-
term nonsubsidized employment.
‘‘(e) TREATMENT OF WAGES.—Under the State ben-
efits to wages program, wages paid to an individual by
a qualified employer shall be considered earned income for
‘‘(1) a reduction in the amount of aid to fami-
lies with dependent children received by the individ-
ual’s family, as determined appropriate by the State;
or
‘‘(2) a denial of eligibility for such aid to the
individual’s family on a temporary or permanent
basis, as determined appropriate by the State.
‘‘(b) PENALTIES RELATING TO NONCUSTODIAL PAR-
ENTS.—
‘‘(1) NO PENALTIES AGAINST FAMILY FOR NON-
COMPLIANCE OF NONCUSTODIAL PARENT.—No pen-
alty shall be imposed under this section or section
484(e) against a family receiving aid to families with
dependent children in the case of a noncustodial par-
ent’s failure to comply with section 483(a).
‘‘(2) PENALTY
FOR
CERTAIN
NONCUSTODIAL
PARENTS.—If an individual described in paragraph
(1) of section 483(a) knowingly and willfully fails to
participate in a State community work service pro-
gram in accordance with such section, such individ-
ual shall be subject to imprisonment in accordance
with State law.
‘‘NONDISPLACEMENT OF WORKERS
‘‘SEC. 487. No organization or entity participating in
a State community work service program or a State bene-
fits to wages program shall replace any employed worker
with an individual participating in the program under this
part. Such an individual may be placed in any position
offered by such organization or entity—
‘‘(1) that is a new position;
‘‘(2) that is a position that became available in
the normal course of conducting the business of the
organization or entity;
‘‘(3) that involves performing work that would
otherwise be performed on an overtime basis by a
worker who is not an individual participating in the
program under this part; or
‘‘(4) that is a position which became available
by shifting a current employee to an alternate posi-
tion.
(2) CONFORMING AMENDMENTS.—(A) Section
402(a) (42 U.S.C. 602(a)) is amended—
(i) by striking ‘‘and’’ at the end of para-
graph (44);
(ii) by striking the period at the end of
paragraph (45) and inserting ‘‘; and’’; and
(iii) by inserting after paragraph (45) the
following new paragraph:
‘‘(46) provide that the State agency shall pro-
vide assurances satisfactory to the Secretary that
the State has in effect laws providing for the impris-
onment of any individual who fails to comply with
section 483(b)(1) for a term determined appropriate
by the State.’’.
(B) Section 16 of the Food Stamp Act of 1977
(7 U.S.C. 2025) is amended by adding at the end
the following new subsection:
‘‘(l) If a State agency of a State informs the Sec-
retary that an individual who is participating in a benefits
to wages program under the welfare and dependency re-
duction program carried out under part F of title IV of
the Social Security Act is a member of a household that
participates in the food stamp program—
‘‘(1) the Secretary shall pay to the State an
amount equal to the value of the food stamp benefits
the household is otherwise eligible to receive under
this Act; and
‘‘(2) the State shall expend the amount in ac-
cordance with such part rather than for food stamp
benefits the household would receive but for the op-
eration of this subsection.’’.
(c) PAYMENTS TO STATES FOR WELFARE AND DE-
PENDENCY REDUCTION PROGRAMS.—
(1) IN
GENERAL.—Subsection (k) of section
403 (42 U.S.C. 603) is amended to read as follows:
‘‘(k)(1) For purposes of conducting its workfare and
dependency reduction program under part F, a State shall
receive payments for a calendar quarter in an amount
equal to the sum of—
‘‘(A) the product of—
‘‘(i) the applicable dollar amount under
paragraph (2)(A), and
‘‘(ii) the average weekly number of individ-
uals who are unemployed parents described in
section 483(a)(1) who participated in the pro-
gram under part F during such quarter;
‘‘(B) the product of—
‘‘(i) the applicable dollar amount under
paragraph (2)(A), and
‘‘(ii) the average weekly number of individ-
uals who are noncustodial parents described in
section 483(b)(1) who participated in the pro-
gram under part F during such quarter; and
‘‘(C) the product of—
‘‘(i) the applicable dollar amount under
paragraph (2)(B), and
‘‘(ii) the average weekly number of individ-
uals who are adult recipients of aid to families
with dependent children in single-adult families
described in section 483(c)(1) who participated
in the program under part F during such quar-
ter.
‘‘(2)(A) For purposes of subparagraphs (A) and (B)
of paragraph (1), the applicable dollar amount is—
‘‘(i) for fiscal year 1995, $250; and
‘‘(ii) for fiscal year 1996 and succeeding fiscal
years, the amount determined under this subpara-
graph for the preceding fiscal year updated by the
percentage change in the consumer price index for
all urban consumers (United States city average)
during such preceding fiscal year.
‘‘(B) For purposes of subparagraph (C) of paragraph
(1), the applicable dollar amount is—
‘‘(i) for fiscal year 1995, $625; and
‘‘(ii) for fiscal year 1996 and succeeding fiscal
years, the amount determined under this clause for
the preceding fiscal year updated by the percentage
change in the consumer price index for all urban
consumers (United States city average) during such
preceding fiscal year.’’.
(2) CONFORMING
AMENDMENT.—Section 403
(42 U.S.C. 603) is amended by striking subsection
(l).
(d) ADJUSTMENTS TO MATCHING PERCENTAGE FOR
AFDC ADMINISTRATIVE COSTS.—