101
(i) $2,000 for the 1st eligible child;
plus
(ii) $1,000 for the 2nd eligible child
(if any); plus
(iii) $500 for each subsequent eligible
child (if any).
(4) METHODS TO BE TESTED.—In approving
applications to conduct demonstration projects under
this subsection, the Secretary shall ensure that the
applications approved under this subsection describe
projects which, in the aggregate, are designed to test
the following:
(A) 
ADMINISTRATIVE
VERSUS
OTHER
PROCESSING.—The feasibility of implementing
a statewide child support assurance benefit in a
State which processes child support and parent-
age cases administratively, as opposed to the
feasibility of implementing such a benefit in a
State which processes such cases only judicially
or quasi-judicially.
(B) ALLOWANCE OF GOOD CAUSE EXCEP-
TIONS.—The effects of prohibiting the provision
of a child support assurance benefit with re-
spect to a child unless an order for the support
of the child has been established and the care-
102
taker of the child has made a good faith effort
to enforce the order, as opposed to allowing
good cause exceptions to the prohibition.
(C) TIMING OF BENEFITS.—The effects of
providing child support assurance benefits im-
mediately upon the establishment of a child
support order, as opposed to providing such
benefits only after a period (determined by the
Secretary) of nonreceipt of child support. The
Secretary may select 1 or more such periods to
be tested in different demonstration projects.
(D) RELATIONSHIP
OF
BENEFITS
TO
OTHER INCOME AND BENEFITS.—The effects of
reducing the amount payable with respect to a
child under the State plan approved under part
A of title IV of the Social Security Act by a
portion (determined by the Secretary) of the
child support assurance benefit provided by the
State with respect to the child, as opposed to
reducing the child support assurance benefit
provided by the State with respect to the child
by a portion (determined by the Secretary) of
the earned income of the family of the child.
The Secretary may select 1 or more such por-
103
tions of benefits or of earned income to be test-
ed in different demonstration projects.
(5) PRIORITY TO BE GIVEN TO PROJECTS THAT
INCLUDE WORK INCENTIVES.—In approving applica-
tions to conduct demonstration projects under this
subsection, the Secretary shall give priority among
otherwise equivalent applications to applications that
describe projects that include work incentives for
participants.
(6) APPROVAL
OF
CERTAIN
APPLICATIONS.—
The Secretary shall approve not more than 5 appli-
cations to conduct demonstration projects under this
subsection which appear likely to contribute signifi-
cantly to the achievement of the purpose of this sub-
section.
(7) OTHER REQUIREMENTS.—Each State whose
application to conduct a demonstration project under
this subsection has been approved by the Secretary
shall conduct the project in accordance with such
regulations as the Secretary may prescribe.
(8) FUNDING.—From the sums appropriated to
carry out this subsection, the Secretary shall pay to
each State whose application to conduct a dem-
onstration project under this subsection has been ap-
104
proved by the Secretary, for each month, an amount
equal to—
(A) 90 percent of the aggregate amount of
the child support assurance benefits paid by the
State during the month if, during the month,
the project has met such performance goals as
the Secretary has established for the project; or
(B) 80 percent of such aggregate amount,
otherwise.
(9) MODIFIED PRIORITY OF DISTRIBUTION OF
CHILD SUPPORT COLLECTED FOR CHILDREN WITH
RESPECT
TO
WHOM
CHILD
SUPPORT
ASSURANCE
BENEFIT IS PAID.—In lieu of paragraph (1) of sec-
tion 457(e) of the Social Security Act, child support
collected from a noncustodial parent of a child with
respect to whom a child support assurance benefit is
paid under a demonstration project conducted under
this subsection shall (subject to section 457(d) of
such Act) be paid—
(A) first to the State, to the extent nec-
essary to reimburse the State for the portion of
the benefit not paid from funds provided under
paragraph (8) of this subsection; and
(B) then to the Federal Government, to
the extent necessary to reimburse the Federal
105
Government for the portion of the benefit paid
from funds provided under paragraph (8) of
this subsection.
(10) DURATION OF PROJECTS.—
(A) IN GENERAL.—Each State whose ap-
plication to conduct a demonstration project
under this subsection has been approved by the
Secretary shall conduct the project for not less
than 3 years and not more than 5 years.
(B) 
AUTHORITY
TO
TERMINATE
PROJECTS.—The Secretary may terminate a
demonstration project conducted under this
subsection if the Secretary determines that the
project is not being conducted consistent with
or satisfactorily under this subsection.
(11) EVALUATIONS.—Each State which con-
ducts a demonstration project under this subsection
shall prepare and submit to the Secretary an interim
and a final evaluation of the project with respect to
the impact of the project on—
(A) the economic and noneconomic well-
being of the participants in the project and of
the work force generally; and
(B) participation in and expenditures
under the program of the State under the State