(b) CONFORMING AMENDMENTS.—
(1) Section 402(a)(38)(B) of such Act (42
U.S.C. 602(a)(38)(B)) is amended by inserting ‘‘, if
the State exercises the option provided under para-
graph (41),’’ after ‘‘406(a) or’’.
(2) Section 406(a)(1) of such Act (42 U.S.C.
606(a)(1)) is amended by inserting ‘‘, if a resident
of a State that has exercised the option provided
under section 402(a)(41),’’ after ‘‘(1) who’’.
(3) Section 406(b)(1) of such Act (42 U.S.C.
606(b)(1)) is amended by inserting ‘‘, in the case of
a State that has exercised the option provided under
section 402(a)(41),’’ after ‘‘mental incapacity of a
parent or’’.
(4) Section 472(a) of such Act (42 U.S.C.
672(a)) is amended by inserting ‘‘, in the case of a
State that has exercised the option provided under
section 402(a)(41),’’ after ‘‘406(a) or’’.
(5) Section 473(a)(2)(A)(i) of such Act (42
U.S.C. 672(a)(2)(A)(i)) is amended by inserting ‘‘,
in the case of a State that has exercised the option
provided under section 402(a)(41),’’ after ‘‘406(a)
or’’.
SEC. 205. 2-PARENT FAMILIES INELIGIBLE FOR AFDC UNTIL
30 DAYS AFTER LOSS OF EMPLOYMENT.
Section 402(a)(10) of the Social Security Act (42
U.S.C. 602(a)(10)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (A);
(2) by adding ‘‘and’’ at the end of subpara-
graph (B); and
(3) by adding at the end the following:
‘‘(C) notwithstanding subparagraph (B), if the
State has a plan approved under part G, at the op-
tion of the State, provide that an application for aid
under the plan that is submitted on behalf of a fam-
ily that includes 2 unemployed parents shall not be
effective until the end of the 30-day period that be-
gins with the most recent date of employment of ei-
ther such parent;’’.
SEC. 206. INCREASE IN EARNED INCOME DISREGARD AND
ELIMINATION 
OF 
TIME 
LIMITATION 
ON
EARNED INCOME DISREGARD.
Section 402(a)(8) of the Social Security Act (42
U.S.C. 602(a)(8)) is amended—
(1) by striking ‘‘one-third of the remainder
thereof’’ and inserting ‘‘(aa) in the case of a State
which does not have a plan approved under part G,
1⁄3 of the remainder thereof, or, (bb) in the case of
a State which has such a plan, whichever of the fol-
lowing (but not both) as the State shall elect to dis-
regard: (1) not more than 1⁄2 of the remainder there-
of, or (2) all earned income of the caretaker relative
(if the caretaker relative has not attained 20 years
of age) which is derived from a summer youth em-
ployment and training program carried out under
part B of title II of the Job Training Partnership
Act (29 U.S.C. 1630 et seq.)’’; and
(2) in subparagraph (B)(ii), by striking
‘‘(ii)(I)’’ and inserting ‘‘(ii) at the option of the
State (I)’’.
SEC. 207. INCREASE IN ASSET LIMITATIONS.
Section 402(a)(7)(B) of the Social Security Act (42
U.S.C. 602(a)(7)(B)) is amended—
(1) by inserting ‘‘(or, in the case of a State
which has a plan approved under part G, $2,000)’’
after ‘‘$1,000’’; and
(2) in clause (i)—
(A) by striking ‘‘so much of’’; and
(B) by striking ‘‘as does not exceed such
amount as the Secretary may prescribe’’.
SEC. 208. AMENDMENTS TO THE FOOD STAMP ACT OF 1977.
(a) EXCLUSION FROM INCOME.—Section 5(d) of the
Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is amend-
ed—
(1) by striking ‘‘and (16)’’ and inserting
‘‘(16)’’, and
(2) by inserting before the period at the end the
following:
‘‘, and (17) at the option of the State agency, not more
than $90 per month during the 1-year period beginning
on the date a household member completes participation
in the program established by a State under part G of
title IV of the Social Security Act’’.
(b) DEDUCTION.—Section 5(e) of the Food Stamp
Act of 1977 (7 U.S.C. 2014(e)) is amended by adding at
the end the following:
‘‘All households that include a member who is a full-time
participant in the program established by a State under
part G of title IV of the Social Security Act shall be al-
lowed a deduction of $100 in each month of participation
in such program.’’.
(c) EMPLOYMENT CASH OUT OF FOOD STAMP BENE-
FITS.—Section 16 of the Food Stamp Act of 1977 (7
U.S.C. 2025) is amended by adding at the end the follow-
ing:
‘‘(l)(1) If a State that has a plan approved under part
G of title IV of the Social Security Act informs the Sec-
retary that an individual who—
‘‘(A) is engaged on a full-time basis in activities
under the self-sufficiency plan in effect under part
G of title IV of the Social Security Act;
‘‘(B) is a member of household all of whose
members receive benefits under a State plan ap-
proved under part A of title IV of the Social Secu-
rity Act; and
‘‘(C) consents to have the State receive an
amount equal to the value of the food stamp benefits
that would be received under the food stamp pro-
gram by such household but for the operation of this
subsection, then paragraph (2) shall apply with re-
spect to such amount, such State, and such house-
hold.
‘‘(2)(A) The Secretary shall pay such amount to the
State.
‘‘(B) The State shall expend such amount with re-
spect to such individual in accordance with subsection (b)
of section 495 of the Social Security Act.
‘‘(C) For purposes of—