SEC. 103. WORK SUPPLEMENTATION PROGRAM AMEND-
MENTS.
(a) AUTHORITY OF STATES TO ASSIGN PARTICI-
PANTS TO UNFILLED JOBS.—Section 484(c) of the Social
Security Act (42 U.S.C. 684(c)) is amended by striking
the last sentence.
(b) AUTHORITY OF STATES TO USE SUMS THAT
WOULD OTHERWISE BE EXPENDED FOR FOOD STAMP
BENEFITS TO PROVIDE SUBSIDIZED JOBS FOR PARTICI-
PANTS.—
(1) IN GENERAL.—Section 482(e)(1) of such
Act (42 U.S.C. 682(e)(1)) is amended—
(A) by inserting ‘‘, and the sums that
would otherwise be used to provide participants
in the program under this subsection with food
stamp benefits under the Food Stamp Act of
1977,’’ before ‘‘and use’’; and
(B) by inserting ‘‘and the food stamp ben-
efits that would otherwise be so provided to
them’’ before the period.
(2) SUBSIDIES PROVIDED TO EMPLOYERS AND
INCLUDED IN WAGES OF PARTICIPANTS; MINIMUM
EMPLOYER
CONTRIBUTION.—Section 482(e)(3) of
such Act (42 U.S.C. 682(e)(3)) is amended by add-
ing at the end the following:
‘‘(E) Each State operating a work supplementation
program under this subsection shall enter into an agree-
ment with the employer who is to provide an eligible indi-
vidual with a supplemented job under the program, under
which—
‘‘(i) the State is required to pay the employer
an amount specified in the agreement as the sub-
sidized portion of the wages of the eligible individ-
ual; and
‘‘(ii) the employer is required to pay the eligible
individual wages which, when added to an amount
that will be payable as aid to families with depend-
ent children to the individual if the individual is paid
such wages, are not less than 100 percent of the
sum of—
‘‘(I) the amount that would otherwise be
payable as aid to families with dependent chil-
dren to the eligible individual if the State did
not have a work supplementation program
under this subsection in effect; and
‘‘(II) if the State elects to subsidize jobs
for participants in the program through the res-
ervation of sums that would otherwise be used
to provide such participants with food stamp
benefits under the Food Stamp Act of 1977,
the amount paid to the State by the Secretary
of Agriculture that represents the cash value of
the food stamp benefits for which the household
of the eligible individual is a member is eligible
under such Act.
‘‘(F) For purposes of computing the amount of the
Federal payment to a State under paragraph (1) or (2)
of section 403(a), for expenditures incurred in making
payments to individuals and employers under the State’s
work supplementation program under this section, the
State may claim as such expenditures the maximum
amount payable to the State under paragraph (4) of this
subsection.
‘‘(G) Notwithstanding paragraph (1), a State may
use for any purpose the sums reserved under paragraph
(1) which are not used to subsidize jobs under this sub-
section attributable to savings achieved by operation of
subparagraph (E).’’.
(3) 
CONFORMING
AMENDMENT.—Section
482(e)(3)(A) of such Act (42 U.S.C. 682(e)(3)(A))
is amended by striking the 2nd sentence.
(4) EMPLOYMENT CASHOUT OF FOOD STAMP
BENEFITS.—Section 16 of the Food Stamp Act of
1977 (7 U.S.C. 2025) is amended by adding at the
end the following:
‘‘(l) If a State agency of a State that makes the elec-
tion described in section 482(e)(3)(E)(ii)(II) of the Social
Security Act informs the Secretary that an individual who
is participating in the work supplementation program car-
ried out under section 482(e) of such Act is a member
of a household that participates in the food stamp pro-
gram and all the members of the household receive bene-
fits under a State plan approved under part A of title IV
of such Act—
‘‘(1) the Secretary shall pay to the State an
amount equal to the value of the food stamp benefits
the household is eligible to receive under this Act;
‘‘(2) the State shall expend the amount in ac-
cordance with section 482(e)(3) of the Social Secu-
rity Act to make a payment to the individual in lieu
of food stamp benefits the household would receive
but for the operation of this subsection;
‘‘(3) for purposes of—
‘‘(A) sections 5 and 8(a) of this Act, the
amount shall be excluded from household in-
come and resources; and
‘‘(B) section 8(b) of this Act, the amount
shall be considered as the value of an allotment
provided to the household; and