251
‘‘(ii) the work programs of the State
under this section are coordinated with the
job training programs established by title
II of the Job Training Partnership Act, or
(if such title is repealed by an Act that be-
comes law during the 104th Congress) the
Act that repeals such title; and
‘‘(iii) the State needs additional funds
to meet such requirements or certifies that
it intends to exceed such requirements.
‘‘(B) GRANTS.—The Secretary may make
a grant to any eligible State which submits an
application in accordance with subparagraph
(A) for a fiscal year in an amount equal to the
Federal medical assistance percentage of the
amount (if any) by which the total expenditures
of the State to meet or exceed the requirements
of section 407 for the fiscal year exceeds the
total expenditures of the State during fiscal
year 1994 to carry out part F (as in effect on
September 30, 1994).
‘‘(C) REGULATIONS.—The Secretary shall
issue regulations providing for the equitable dis-
tribution of funds under this paragraph.
252
‘‘(D) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—
‘‘(i) IN GENERAL.—There are author-
ized to be appropriated for grants under
this paragraph $3,000,000,000 for fiscal
year 1999.
‘‘(ii) AVAILABILITY.—Amounts appro-
priated pursuant to clause (i) are author-
ized to remain available until expended.
‘‘(b) CONTINGENCY FUND.—
‘‘(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
1997, 1998, 1999, 2000, and 2001 such sums as are
necessary for payment to the Fund in a total
amount not to exceed $2,000,000,000.
‘‘(3) GRANTS.—
‘‘(A) PROVISIONAL PAYMENTS.—If an eli-
gible State submits to the Secretary a request
for funds under this paragraph during an eligi-
253
ble month, the Secretary shall, subject to this
paragraph, pay to the State, from amounts ap-
propriated pursuant to paragraph (2), an
amount equal to the amount of funds so re-
quested.
‘‘(B) PAYMENT PRIORITY.—The Secretary
shall make payments under subparagraph (A)
in the order in which the Secretary receives re-
quests for such payments.
‘‘(C) LIMITATIONS.—
‘‘(i) 
MONTHLY
PAYMENT
TO
A
STATE.—The total amount paid to a single
State under subparagraph (A) during a
month shall not exceed 1⁄12 of 20 percent
of the State family assistance grant.
‘‘(ii) PAYMENTS
TO
ALL
STATES.—
The total amount paid to all States under
subparagraph (A) during fiscal years 1997
through 2001 shall not exceed the total
amount appropriated pursuant to para-
graph (2).
‘‘(4) ANNUAL RECONCILIATION.—Notwithstand-
ing paragraph (3), at the end of each fiscal year,
each State shall remit to the Secretary an amount
equal to the amount (if any) by which the total
254
amount paid to the State under paragraph (3) dur-
ing the fiscal year exceeds—
‘‘(A) the Federal medical assistance per-
centage for the State for the fiscal year (as de-
fined in section 1905(b), as in effect on Sep-
tember 30, 1995) of the amount (if any) by
which the expenditures under the State pro-
gram funded under this part for the fiscal year
exceed historic State expenditures (as defined in
section 409(a)(7)(B)(iii)); multiplied by
‘‘(B) 1⁄12 times the number of months dur-
ing the fiscal year for which the Secretary
makes a payment to the State under this sub-
section.
‘‘(5) ELIGIBLE MONTH.—As used in paragraph
(3)(A), the term ‘eligible month’ means, with respect
to a State, a month in the 2-month period that be-
gins with any month for which the State is a needy
State.
‘‘(6) NEEDY
STATE.—For purposes of para-
graph (5), a State is a needy State for a month if—
‘‘(A) the average rate of—
‘‘(i) total unemployment in such State
(seasonally adjusted) for the period con-
sisting of the most recent 3 months for
392
such provision or plan as in effect as of July 16,
1996, with respect to the State and eligibility for
medical assistance under this title shall be deter-
mined as if such provision or plan (as in effect as
of such date) remained in effect;
‘‘(2) any reference in section 1902(a)(5) or
1902(a)(55) to a State plan approved under part A
of title IV shall be deemed a reference to a State
program funded under such part;
‘‘(3) a State may provide that any income
standard under the State plan referred to in para-
graph (1) may be increased over a period (beginning
after July 16, 1996) by a percentage that does not
exceed the percentage increase in the consumer price
index for all urban consumers (all items; U.S. city
average) over such period;
‘‘(4) in applying section 1925, medical assist-
ance is required to be provided under such section
only if it is required to be provided under section
408(a)(13); and
‘‘(5) a State may terminate medical assistance
under this title for an individual because the individ-
ual fails to meet any requirement imposed pursuant
to section 407 if the individual was eligible for the
medical assistance—
393
‘‘(A) on the basis of receipt of assistance
under a State program funded under part A of
title IV, or
‘‘(B) pursuant to paragraph (1), on the
basis that the individual meets the requirements
for receipt of aid or assistance under the State
plan under part A of title IV (as in effect on
July 16, 1996).
‘‘(b) In the case of a waiver of a provision of part
A of title IV in effect with respect to a State as of July
16, 1996, if the waiver affects eligibility of individuals for
medical assistance under this title, such waiver may con-
tinue to be applied, at the option of the State, in relation
to this title after the date the waiver would otherwise ex-
pire.’’.
(b) PLAN AMENDMENT.—Section 1902(a) (42 U.S.C.
1396a(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(61),
(2) by striking the period at the end of para-
graph (62) and inserting ‘‘; and’’, and
(3) by inserting after paragraph (62) the fol-
lowing new paragraph:
‘‘(63) provide for continuing to administer eligi-
bility standards with respect to individuals who are