(5) active, creative, and diligent efforts are
needed to recruit parents, from every race and cul-
ture, for children needing foster care or adoptive
parents.
(b) PURPOSE.—The purpose of this subtitle is to de-
crease the length of time that children wait to be adopted
and to prevent discrimination in the placement of children
on the basis of race, color, or national origin.
SEC. 222. MULTIETHNIC PLACEMENTS.
(a) ACTIVITIES.—
(1) PROHIBITION.—An agency, or entity, that
receives Federal assistance and is involved in adop-
tion or foster care placements may not—
(A) categorically deny to any person the
opportunity to become an adoptive or a foster
parent, on the basis of the race, color, or na-
tional origin of the adoptive or foster parent, or
the child, involved; or
(B) delay or deny the placement of a child
for adoption or into foster care, or otherwise
discriminate in making a placement decision, on
the basis of the race, color, or national origin
of the adoptive or foster parent, or the child, in-
volved.
(2) PERMISSIBLE CONSIDERATION.—An agency
or entity to which paragraph (1) applies may con-
sider the race, color, or national origin of a child as
a factor in making a placement decision if such fac-
tor is relevant to the best interests of the child in-
volved and is considered in conjunction with other
factors.
(3) DEFINITION.—As used in this subsection,
the term ‘‘placement decision’’ means the decision to
place, or to delay or deny the placement of, a child
in a foster care or an adoptive home, and includes
the decision of the agency or entity involved to seek
the termination of birth parent rights or otherwise
make a child legally available for adoptive place-
ment.
(b) LIMITATION.—The Secretary of Health and
Human Services shall not provide placement and adminis-
trative funds under section 474(a)(3) of the Social Secu-
rity Act (42 U.S.C. 674(a)(3)) to an agency or entity de-
scribed in subsection (a) that is not in compliance with
subsection (a).
(c) EQUITABLE RELIEF.—Any individual who is ag-
grieved by an action in violation of subsection (a), taken
by an agency or entity described in subsection (a), shall
have the right to bring an action seeking relief in a United
States district court of appropriate jurisdiction.
(d) CONSTRUCTION.—Nothing in this section shall be
construed to affect the application of the Indian Child
Welfare Act of 1978 (25 U.S.C. 1901 et seq.).
Subtitle D—Tax Credit for Certain
Low-Income Families
SEC. 231. ADDITIONAL EARNED INCOME CREDIT FOR MAR-
RIED INDIVIDUALS.
(a) IN GENERAL.—Paragraph (1) of section 32(a) of
the Internal Revenue Code of 1986 (relating to earned in-
come credit) is amended to read as follows:
‘‘(1) IN GENERAL.—There shall be allowed as a
credit against the tax imposed by this subtitle for
the taxable year an amount equal to the sum of—
‘‘(A) in the case of an eligible individual,
an amount equal to the credit percentage of so
much of the taxpayer’s earned income for the
taxable year as does not exceed the earned in-
come amount, and
‘‘(B) in the case of an eligible married in-
dividual, the applicable percentage of $1,000.’’.
(b) APPLICABLE PERCENTAGE.—Section 32(b) of the
Internal Revenue Code of 1986 (relating to percentages
and amounts) is amended by adding at the end the follow-
ing new paragraph:
‘‘(3) APPLICABLE PERCENTAGE.—The applica-
ble percentage for any taxable year is equal to 100
percent reduced (but not below 0 percent) by 10 per-
centage points for each $1,000 (or fraction thereof)
by which the taxpayer’s earned income for such tax-
able year exceeds $16,000.’’.
(c) 
ELIGIBLE
MARRIED
INDIVIDUALS.—Section
32(c) of the Internal Revenue Code of 1986 (relating to
definitions and special rules) is amended by adding at the
end the following new paragraph:
‘‘(4) ELIGIBLE
MARRIED
INDIVIDUALS.—The
term ‘eligible married individual’ means an eligible
individual (determined without regard to paragraph
(1)(A)(ii))—
‘‘(A) who is married (as defined in section
7703) and who has lived together with the indi-
vidual’s spouse at all times during such mar-
riage during the taxable year, and
‘‘(B) has earned income for the taxable
year of at least $8,500.’’.
(d) CONFORMING AMENDMENTS.—
(1) Section 32(a)(2) of the Internal Revenue
Code of 1986 is amended by striking ‘‘paragraph
(1)’’ and inserting ‘‘paragraph (1)(A)’’.
(2) Section 32(i) of such Code is amended to
read as follows:
‘‘(i) INFLATION ADJUSTMENTS.—
‘‘(1) IN GENERAL.—In the case of any taxable
year beginning after the applicable calendar year,
each dollar amount referred to in paragraph (2)(B)
shall be increased by an amount equal to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3), for the calendar
year in which the taxable year begins, by sub-
stituting for ‘calendar year 1992’ in subpara-
graph (B) thereof—
‘‘(i) ‘calendar year 1993’ in the case
of the dollar amounts referred to in para-
graph (2)(B)(i), and
‘‘(ii) ‘calendar year 1994’ in the case
of the dollar amounts referred to in para-
graph (2)(B)(ii).
‘‘(2) DEFINITIONS, 
ETC.—For purposes of
paragraph (1)—
‘‘(A) APPLICABLE CALENDAR YEAR.—The
term ‘applicable calendar year’ means—
‘‘(i) 1994 in the case of the dollar
amounts 
referred 
to 
in 
paragraph
(2)(B)(i), and
‘‘(ii) 1995 in the case of the dollar
amounts 
referred 
to 
in 
paragraph
(2)(B)(ii).
‘‘(B) 
DOLLAR
AMOUNTS.—The 
dollar
amounts referred to in this subparagraph are—
‘‘(i) each dollar amount contained in
subsection (b)(2)(A), and
‘‘(ii) the $16,000 amount contained in
subsection (b)(3) and the dollar amount
contained in subsection (c)(4)(B).
‘‘(3) ROUNDING.—If any dollar amount after
being increased under paragraph (1) is not a mul-
tiple of $10, such dollar amount shall be rounded to
the nearest multiple of $10 (or, if such dollar
amount is a multiple of $5, such dollar amount shall
be increased to the next higher multiple of $10).’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1994.
TITLE III—CHILD SUPPORT
ENFORCEMENT
SEC. 301. NATIONAL REPORTING OF INFORMATION RELAT-
ING TO CHILD SUPPORT WITH RESPECT TO
CERTAIN EMPLOYEES.
(a) MODIFIED W–4 REPORTING.—
(1) ESTABLISHMENT OF REPORTING SYSTEM.—
The Secretary of the Treasury, in consultation with
the Secretary of Labor, shall establish a system for
the reporting of information relating to child support
obligations of employees, that meets the require-
ments of this subsection.
(2) EMPLOYEE OBLIGATIONS.—
(A) EMPLOYEES SUBJECT TO CHILD SUP-
PORT WAGE WITHHOLDING.—The system shall
require each employee who owes a qualified
child support obligation to indicate, at the time
such obligation first arises or is modified, on a
W–4 form that the employee is otherwise re-
quired to file with the employer—
(i) the existence of the obligation;
(ii) the amount of the obligation;
(iii) the name and address of the per-
son to whom the obligation is owed; and
(iv) whether health care insurance is
available through the employer to the fam-
ily of the employee.
(B) EMPLOYEES IN DESIGNATED INDUS-
TRIES.—The system shall require each em-
ployee, who is employed in a State in an indus-
try that the State has designated pursuant to
section 466(a)(12)(A) of the Social Security Act
as one with respect to which universal employ-
ment reporting would improve child support en-
forcement in a cost-effective manner, to annu-
ally file with the employer a W–4 form indicat-
ing—
(i) whether the employee owes a quali-
fied child support obligation; and
(ii) if so—
(I) the amount of the obligation;
(II) the name and address of the
person to whom the obligation is
owed; and
(III) whether health care insur-
ance is available through the employer
to the family of the employee.
(C) ONE-TIME UPDATING OF W–4 INFOR-
MATION OF ALL EMPLOYEES.—The system shall
require each employee to file with the employer,
during a period that the State in which the em-
ployee is employed has prescribed pursuant to
section 466(a)(12)(B) of the Social Security
Act, a W–4 form indicating—
(i) whether the employee owes a quali-
fied child support obligation; and
(ii) if so—
(I) the amount of each such obli-
gation;
(II) the name and address of
each person to whom the obligation is
owed; and
(III) whether health care insur-
ance is available through the employer
to the family of the employee.
(D) QUALIFIED CHILD SUPPORT OBLIGA-
TION.—As used in this subsection, the term
‘‘qualified child support obligation’’ means a
legal obligation to provide child support (as de-
fined in section 462(b) of the Social Security
Act) which is to be collected, in whole or in
part, through wage withholding pursuant to an
order issued by a court of any State or an order
of an administrative process established under
the law of any State.
(3) EMPLOYER OBLIGATIONS.—Each employer
who receives information from an employee pursuant
to paragraph (2) of this subsection shall—
(A) within 10 days after such receipt, for-
ward the information to the agency, designated
pursuant to section 466(a)(11)(A) of the Social
Security Act, of the State in which the em-
ployee is employed by the employer; and
(B) withhold from the income of the em-
ployee the amount indicated on the W–4 form
(or, if the employer has received from the State
a notice that the amount is incorrect, such
other amount as the State indicates is to be so
withheld), in the manner described in section
466(b)(6)(A)(i) of such Act.
(4) NEW
HIRES
IN
CERTAIN
STATES
EX-
CEPTED.—This subsection shall not apply with re-
spect to the employment in a State of any employee
not described in paragraph (2)(B) if the Secretary
of Health and Human Services determines that the
State—
(A) requires all employers in the State to
report to the State all basic employment infor-
mation on new hires;
(B) requires such information to be com-
pared with information in the State registry of
child support orders established pursuant to
section 466(a)(13) of the Social Security Act
and with requests from other States for infor-
mation on the location of noncustodial parents;
(C) maintains updated employment infor-
mation on all individuals employed in the State
in a manner that enables the State to effec-
tively respond to such requests; and
(D) requires all employers in the State, on
receipt of a notice from the State that an em-
ployee owes a qualified child support obligation,
to begin withholding from the income of the
employee the amount of the obligation, in the
manner described in section 466(b)(6)(A)(i) of
the Social Security Act.
(b) STATE
ROLE.—Section 466(a) (42 U.S.C.
666(a)) is amended by inserting after paragraph (10) the
following:
‘‘(11) Procedures under which the State shall
designate a public agency to—
information and a copy of a child support
order in the registry, notify the employer
of the discrepancy and the correct informa-
tion using the order developed under sec-
tion 452(a)(12) of this Act; or
‘‘(iii) if the information is not so con-
firmed because the registry does not con-
tain a copy of an order that imposes a
child support obligation on the employee,
search the child support order registries
established pursuant to section 466(a)(13)
of this Act of the States in which the obli-
gation is most likely to have been imposed.
‘‘(12) Procedures under which the State shall—
‘‘(A) designate at least 1 industry, for pur-
poses of section 301(a)(2)(B) of the Real Wel-
fare Reform Act of 1994, as an industry with
respect to which universal employment report-
ing would improve child support enforcement in
a cost-effective manner;
‘‘(B) prescribe the period during which
individuals employed in the State are to be
required to file with their employers updated
W–4 forms as required by section 301(a)(2)(C)
of such Act; and
‘‘(C) impose a fine—
‘‘(i) against any individual employed
in the State who is required by section
301(a)(2) of such Act to file a W–4 form
with any employer of the individual and
fails to do so; and
‘‘(ii) in an amount equal to the aver-
age cost of noncompliance (as determined
by the State) or $25, whichever is the less-
er, on any employer who fails to comply
with section 301(a)(3) of such Act for any
month.’’.
SEC. 302. STATE INFORMATION SYSTEMS.
(a) STATE REGISTRIES
OF CHILD SUPPORT OR-
DERS.—Section 466(a) (42 U.S.C. 666(a)), as amended
by section 301(b), is amended by inserting after para-
graph (12) the following:
‘‘(13) Procedures requiring the State agency
designated pursuant to paragraph (16) to maintain
a child support order registry, which must include—
‘‘(A) a copy of each child support order
being enforced under the State plan; and
‘‘(B) at the request of an individual who
has or is owed a legal obligation to provide child
support (within the meaning of section 462(b)),
a copy of the order that imposes the obliga-
tion.’’.
(b) ACCESSIBILITY OF STATE INFORMATION RELAT-
ED TO CHILD SUPPORT.—
(1) TO
OTHER
STATES.—Section 466(a) (42
U.S.C. 666(a)), as amended by section 301(b)(1)
and subsection (a) of this section, is amended by in-
serting after paragraph (13) the following:
‘‘(14)(A) Procedures requiring all records of the
State to which the agency administering the plan
has access and determines may be useful in locating
noncustodial parents or collecting child support to be
made accessible to any agency of any State for such
purpose, through the Interstate Locate Network es-
tablished under section 453(g), in accordance with
safeguards established to prevent release of informa-
tion if the release might jeopardize the safety of any
individual.
‘‘(B) The State may impose reasonable fees for
access to State records provided pursuant to sub-
paragraph (A).’’.
(2) TO PRIVATE PARTIES.—Section 466(a) (42
U.S.C. 666(a)), as amended by section 301(b)(1),
subsection (a) of this section, and paragraph (1) of
this subsection, is amended by inserting after para-
graph (14) the following:
‘‘(15) Procedures under which—
‘‘(A) noncustodial parents (and their des-
ignees) must be given access to State parent lo-
cator services to aid in the establishment or en-
forcement of visitation rights, in accordance
with safeguards established to prevent release
of information if the release might jeopardize
the safety of any individual; and
‘‘(B) custodial parents (and their des-
ignees) must be given access to State parent lo-
cator services to aid in the establishment and
enforcement of child support obligations against
noncustodial parents.’’.
SEC. 303. NATIONAL INFORMATION SYSTEMS.
(a) EXPANSION OF PARENT LOCATOR SERVICE.—
Section 453 (42 U.S.C. 653) is amended—
(1) in subsection (a)—
(A) by inserting ‘‘(1)’’ after ‘‘transmit’’;
and
(B) by striking ‘‘enforcing support obliga-
tions against such parent’’ and inserting ‘‘es-
tablishing parentage, establishing, modifying,
and enforcing child support obligations, and (2)
to any noncustodial parent (or the designee of
the noncustodial parent) information as to the
whereabouts of the custodial parent when such
information is to be used to locate such parent
for the purpose of enforcing child visitation
rights and obligations’’;
(2) in subsection (b), by inserting after the 2nd
sentence the following: ‘‘Information shall not be
disclosed to a custodial parent or a noncustodial par-
ent if the disclosure would jeopardize the safety of
the child or either of such parents.’’;
(3) in subsection (d), by inserting ‘‘and such
reasonable fees’’ after ‘‘such documents’’; and
(4) by striking ‘‘absent parent’’ each place such
term appears and inserting ‘‘noncustodial parent’’.
(b) ESTABLISHMENT OF INTERSTATE LOCATE NET-
WORK.—Section 453 (42 U.S.C. 653) is amended by add-
ing at the end the following:
‘‘(g) The Secretary shall establish an Interstate Lo-
cate Network linking the Parent Locator Service and all
State databases relating to child support enforcement,
which—
‘‘(1) any State may use to—
‘‘(A) locate any noncustodial parent who
has a legal obligation to provide child support
(as defined in section 462(b)), with respect to
whom such an obligation is being sought, or
against whom visitation rights are being en-
forced, by accessing the records of any Federal,
State, or other source of locate or child support
information, directly from one computer system
to another; or
‘‘(B) direct a locate request to another
State or a Federal agency, or, if the source of
locate information is unknown, broadcast such
a request to selected States or to all States;
‘‘(2) allows on-line and batch processing of lo-
cate requests, with on-line access restricted to cases
in which the information is needed immediately
(such as for court appearances), and batch process-
ing used to ‘troll’ data bases to locate individuals or
update information periodically; and
‘‘(3) enables courts to access information on the
Interstate Locate Network through a computer ter-
minal located in the court.’’.
(c) INFORMATION SHARING REGULATIONS.—Section
452(a) (42 U.S.C. 652(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(9);
(2) by striking the period at the end of the 2nd
sentence of paragraph (10) and inserting ‘‘; and’’;
and
(3) by inserting after paragraph (10) the fol-
lowing:
‘‘(11) prescribe regulations governing informa-
tion sharing among States, within States, and be-
tween the States and the Parent Locator Service—
‘‘(A) to ensure that a State may broadcast
a request for information for the purpose of lo-
cating a noncustodial parent or collecting child
support, and receive a response to the request
in not more than 48 hours; and
‘‘(B) to require a State that is attempting
to locate a noncustodial parent—
‘‘(i) to compare all outstanding cases
with 
information 
in 
the 
employment
records of the State; and
‘‘(ii) if, after complying with clause
(i), the State is unable to locate the
noncustodial parent, then—
‘‘(I) if the State has reason to
believe that the noncustodial parent is
in another particular State or States,
to request such State or States for in-
formation on the noncustodial parent;
and
‘‘(II) if not, to broadcast to all
States a request for such informa-
tion.’’.
SEC. 304. INCOME WITHHOLDING.
(a) STATE
ROLE.—Section 466(a) (42 U.S.C.
666(a)), as amended by sections 301(b)(1) and 302, is
amended by inserting after paragraph (15) the following:
‘‘(16) Procedures under which the State shall
designate a public agency to—
‘‘(A) collect child support pursuant to the
State plan; and
‘‘(B) distribute, in accordance with section
457 and with all due deliberate speed, the
amounts collected as child support.
‘‘(17) Procedures under which the State shall
require any court of the State that establishes or
modifies a child support order to transmit a copy of
the order to the State agency designated pursuant to
paragraph (18), unless the order does not provide
for income withholding, and the noncustodial parent
and the custodial parent object.
‘‘(18) Procedures under which the State shall
designate a State agency to use the uniform income
withholding 
order 
developed 
under 
section
452(a)(12) to notify the agency administering the
State plan, any employer of an individual required to
pay child support through income withholding pursu-
ant to an order issued or modified in the State, and
the agency designated pursuant to paragraph (16) of
this subsection of each State in which such an em-
ployer is located, of—
‘‘(A) the identity of the individual;
‘‘(B) the amount to be withheld; and
‘‘(C) the State agency to which the with-
held amount is to be paid.’’.
(b) 
UNIFORM
WITHHOLDING
ORDER.—Section
452(a) (42 U.S.C. 652(a)), as amended by section 303(c),
is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(10);
(2) by striking the period at the end of para-
graph (11) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (11) the fol-
lowing:
‘‘(12) develop a uniform order to be used in all
cases in which income is to be withheld for the pay-
ment of child support, which shall—
‘‘(A) contain the name of the individual
whose income is to be withheld, the number of
children covered by the order, and the individ-
ual or State to whom the withheld income is to
be paid, and
‘‘(B) be in the form necessary to allow for
the service of the order on all sources of in-
come.’’.
(c) STATES REQUIRED TO HAVE LAWS REQUIRING
EMPLOYERS TO WITHHOLD CHILD SUPPORT PURSUANT
TO UNIFORM INCOME WITHHOLDING ORDERS.—Section
466(b) (42 U.S.C. 666(b)) is amended—
(1) in paragraph (1), by inserting ‘‘and in the
case of each individual employed in the State,’’ be-
fore ‘‘so much’’;
(2) in paragraph (6)(C), by inserting ‘‘of this
paragraph and paragraph (9)(B) of this subsection’’
after ‘‘(A)’’; and
(3) in paragraph (9)—
(A) by inserting ‘‘(A)’’ after ‘‘(9)’’; and
(B) by adding at the end the following:
‘‘(B)(i) As a condition of doing business in the
State, any individual or entity engaged in commerce
in the State shall, upon receipt of a valid income
withholding order for any of its employees—
‘‘(I) immediately provide a copy of the
order to the employee subject to the order; and
‘‘(II) notwithstanding paragraph (4) of
this subsection, withhold, within 10 days after
receipt of the order, income from the employee
in the manner described in paragraph (6)(A)(i)
of this subsection.
‘‘(ii) A valid income withholding order may be
served on the individual or entity directly or by first-
class mail.
‘‘(iii) Any individual or entity who complies
with a valid income withholding order may not be
held liable for wrongful withholding of income from
the employee subject to the order.
‘‘(iv) The State shall impose a civil fine in an
amount equal to the average cost of noncompliance
(as determined by the State) or $25, whichever is
the lesser, on any such individual or entity who re-
ceives a valid income withholding order with respect
to an employee of the individual or entity, and who,
due to negligence, fails to comply with the order
within 10 days after receipt.
‘‘(v) Any individual or entity who imposes a fee
for the administration of child support income with-
holding and related reporting of information shall
not collect more than the average cost of such ad-
ministration, as determined by the State.
‘‘(vi) For purposes of this subparagraph, a valid
income withholding order is a withholding order de-
veloped under section 452(a)(12) that has been is-
sued by a court or agency of a State and is regular
on its face.’’.
SEC. 305. UNIFORM TERMS IN ORDERS.
Section 452(a) (42 U.S.C. 652(a)), as amended by
sections 303(c) and 304(b), is amended—
(1) in paragraph (11), by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (12), by striking the period at
the end of the 2nd sentence and inserting ‘‘; and’’;
and
(3) by adding at the end the following:
‘‘(13) develop, in conjunction with State execu-
tive and judicial organizations, a uniform abstract of
a child support order, for use by all State courts to
record, with respect to each child support order in
the child support order registry established under
section 466(a)(12)—
‘‘(A) the date support payments are to
begin under the order;
‘‘(B) the circumstances upon which sup-
port payments are to end under the order;
‘‘(C) the amount of child support payable
pursuant to the order expressed as a sum cer-
tain to be paid on a monthly basis, arrearages
expressed as a sum certain as of a certain date,
and any payback schedule for the arrearages;
‘‘(D) whether the order awards support in
a lump sum (nonallocated) or per child;
‘‘(E) if the award is in a lump sum, the
event causing a change in the support award
and the amount of any change;
‘‘(F) other expenses covered by the order;
‘‘(G) the names of the parents subject to
the order;
‘‘(H) the social security account numbers
of the parents;
‘‘(I) the name, date of birth, and social se-
curity account number (if any) of each child
covered by the order;
‘‘(J) the identification (FIPS code, name,
and address) of the court that issued the order;
‘‘(K) any information on health care sup-
port required by the order; and
‘‘(L) the party to contact if additional in-
formation is obtained.’’.
SEC. 306. IMPROVEMENTS IN PATERNITY ESTABLISHMENT.
Section 466(a) (42 U.S.C. 666(a)) is amended—
(1) by striking ‘‘at the option of the State,’’ in
paragraph (2)(B), and
(2) by adding at the end of paragraph (5) the
following new subparagraph:
‘‘(C) Procedures under which—
‘‘(i) the opportunity to establish paternity
voluntarily and by simple affidavit is available
to the unmarried parents of a child at the time
of the child’s birth by requiring hospitals and
birthing facilities to make explanatory materials
and forms available to the parents as part of
the birth certificate process;
‘‘(ii) a simple, civil consent procedure is
available at any time for individuals who agree
to acknowledge parentage of a child;
‘‘(iii) an acknowledgment of parentage may
be incorporated in a witnessed, written state-
ment that includes a statement that—
‘‘(I) the individual signing such state-
ment understands the consequences of ac-
knowledging paternity,
‘‘(II) such individual is signing the
statement voluntarily,
‘‘(III) such individual does not object
to the court entering an order for parent-
age, based on the acknowledgment, without
notice prior to the entry of the order and
without the requirement of pleadings, serv-
ice, summons, testimony, or a hearing, and
‘‘(IV) such individual understands
that signing such statement may create an
obligation to provide child support; and
‘‘(iv) if under State law a court order is re-
quired to establish paternity, an acknowledg-
ment of parentage as provided for under clause
(iii) shall be filed with a State court of appro-
priate jurisdiction within 10 days and a pater-
nity order based on such acknowledgment shall
be established without the requirement of plead-
ings, service, summons, testimony, or a hear-
ing.’’.
SEC. 307. WAIVER OF FEE FOR CERTAIN INDIVIDUALS RE-
CEIVING CHILD SUPPORT COLLECTION OR
PATERNITY DETERMINATION SERVICES.
Section 454 (42 U.S.C. 654) is amended by striking
‘‘and’’ at the end of paragraph (23), by striking the period
at the end of paragraph (24) and inserting ‘‘; and’’, and
by inserting after paragraph (24) the following new para-
graph:
‘‘(25) notwithstanding subparagraphs (B), (C),
and (D) of paragraph (6), provide that no fee shall
be imposed for child support collection or paternity
determination services provided with respect to an
individual who is denied assistance under part A of
this title due to the amendments made by title II of
the Real Welfare Reform Act of 1994.’’.
TITLE IV—SPECIFIC REFORMS
IN WELFARE SPENDING
SEC. 401. INCOME ELIGIBILITY GUIDELINES FOR SCHOOL
LUNCH AND BREAKFAST PROGRAMS.
The third sentence of section 9(b)(1)(A) of the Na-
tional School Lunch Act (42 U.S.C. 1758(b)(1)(A)) is
amended by striking ‘‘185 percent’’ and inserting ‘‘130
percent’’.
SEC. 402. REPEAL OF EXPANSIONS TO FOOD STAMP PRO-
GRAM.
(a) IN GENERAL.—Chapter 3 of title XIII of Public
Law 103–66, and the amendments made by such chapter,
are repealed as of the enactment of such chapter.
(b) ADMINISTRATION.—The Food Stamp Act of 1977
(7 U.S.C. 2011 et seq.) shall be applied and administered
as if chapter 3 of title XIII of Public Law 103–66, and
the amendments made by such chapter, had not been en-
acted.
SEC. 403. REPEAL OF EMPOWERMENT ZONES AND ENTER-
PRISE COMMUNITIES.
(a) REPEAL.—Part I of subchapter C of title XIII
of the Revenue Reconciliation Act of 1993 is hereby re-
pealed.
(b) APPLICATION OF INTERNAL REVENUE CODE.—
The Internal Revenue Code of 1986 shall be applied and
administered as if the provision described in subsection (a)
had not been enacted.
SEC. 404. REDUCTION OF BENEFITS TO AFDC FAMILIES
WHO ALSO RECEIVE PUBLIC HOUSING BENE-
FITS.
(a) REPEAL
OF
OPTIONAL
CONSIDERATION
OF
HOUSING SUBSIDIES.—Section 402(a)(7)(C) (42 U.S.C.
602(a)(7)(C)) is amended—
(1) in clause (i), by striking ‘‘and’’ at the end;
(2) by striking clause (ii); and
(3) by striking ‘‘law)—’’ through ‘‘(i) an
amount’’ and inserting ‘‘law) an amount’’.
(b) REDUCTION OF PAYMENTS TO AFDC FAMILIES
WHO RECEIVE PUBLIC HOUSING BENEFITS.—
(1) IN GENERAL.—Section 402(a) (42 U.S.C.
602(a)), as amended by sections 101(b)(2)(A) and
(e), 103(a) and (b), 201(b), 202(a), and 203(a), is
amended—
(A) by striking ‘‘and’’ at the end of para-
graph (51);
(B) by striking the period at the end of
paragraph (52) and inserting ‘‘; and’’; and
(C) by inserting after paragraph (52) the
following new paragraph:
‘‘(53) in the case of a family receiving aid
under this part for any month and occupying a unit
in public housing or housing assisted under section
8 of the United States Housing Act of 1937 or a
State housing program, reduce the payment of aid
under the plan to such family by 25 percent each
month.’’.
(2) EFFECTIVE DATE.—The amendments made
by paragraph (1) shall apply with respect to pay-
ments under part A of title IV of the Social Security
Act for calendar quarters beginning on or after Oc-
tober 1, 1994.
SEC. 
405. 
REDUCTION 
OF 
SOCIAL 
SERVICES 
BLOCK
GRANTS.
Section 2003(c) (42 U.S.C. 1397b(c)) is amended—
(1) in paragraph (4), by striking ‘‘and’’ at the
end;
(2) in paragraph (5), by striking ‘‘each fiscal
year after fiscal year 1989.’’ and inserting ‘‘fiscal
years 1990, 1991, 1992, 1993, and 1994; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(6) $1,800,000,000 for each fiscal year after
fiscal year 1994.’’.
SEC. 406. RESTRICTIONS ON WELFARE BENEFITS PRO-
VIDED TO ALIENS.
(a) BENEFITS LIMITED TO CITIZENS.—On and after
the date of the enactment of this Act, notwithstanding any
other provision of law, no benefits shall be available under
the following programs to any individual who is not a
United States citizen:
(1) The program of medical assistance under
title XIX of the Social Security Act, except emer-
gency services (as defined for purposes of section
1916(a)(2)(D) of the Social Security Act).
(2) The Maternal and Child Health Services
Block Grant Program under title V of the Social Se-
curity Act.
(3) The program established in section 330 of
the Public Health Service Act (relating to commu-
nity health centers).
(4) The program established in section 1001 of
the Public Health Service Act (relating to family
planning methods and services).
(5) The program established in section 329 of
the Public Health Service Act (relating to migrant
health centers).
(6) The program of aid and services to needy
families with children under part A of title IV of the
Social Security Act.
(7) The child welfare services program under
part B of title IV of the Social Security Act.
(8) The supplemental security income program
under title XVI of the Social Security Act.
(9) The program of foster care and adoption
assistance under part E of title IV of the Social Se-
curity Act.
(10) The food stamp program, as defined in
section 3(h) of the Food Stamp Act of 1977 (7
U.S.C. 2012(h)).
(11) The school lunch program carried out
under the National School Lunch Act (42 U.S.C.
1751 et seq.).
(12) The special supplemental food program for
women, infants, and children carried out under sec-
tion 17 of the Child Nutrition Act of 1966 (42
U.S.C. 1786).
(13) The nutrition programs carried out under
part C of title III of the Older Americans Act of
1965 (42 U.S.C. 3030e et seq.).
(14) The school breakfast program carried out
under section 4 of the Child Nutrition Act of 1966
(42 U.S.C. 1773).
(15) The child and adult care food program
carried out under section 17 of the National School
Lunch Act (42 U.S.C. 1766).
(16) The Emergency Food Assistance Act of
1983 (7 U.S.C. 612c note).
(17) The summer food service program for chil-
dren carried out under section 13 of the National
School Lunch Act (42 U.S.C. 1761).
(18) The commodity supplemental food pro-
gram authorized by section 4(a) of the Agriculture
and Consumer Protection Act of 1973 (7 U.S.C.
612c note).
(19) The special milk program carried out
under section 3 of the Child Nutrition Act of 1966
(42 U.S.C. 1772).
(20) The program of rental assistance on behalf
of low-income families provided under section 8 of
the United States Housing Act of 1937 (42 U.S.C.
1437f).
(21) The program of assistance to public hous-
ing under title I of the United States Housing Act
of 1937 (42 U.S.C. 1437 et seq.).
(22) The loan program under section 502 of the
Housing Act of 1949 (42 U.S.C. 1472).
(23) The program of interest reduction pay-
ments pursuant to contracts entered into by the Sec-
retary of Housing and Urban Development under
section 236 of the National Housing Act (12 U.S.C.
1715z–1).
(24) The program of loans for rental and coop-
erative housing under section 515 of the Housing
Act of 1949 (42 U.S.C. 1485).
(25) The program of rental assistance pay-
ments pursuant to contracts entered into under sec-
tion 521(a)(2)(A) of the Housing Act of 1949 (42
U.S.C. 1490a(a)(2)(A)).
(26) The program of assistance payments on
behalf of homeowners under section 235 of the Na-
tional Housing Act (12 U.S.C. 1715z).
(27) The program of rent supplement payments
on behalf of qualified tenants pursuant to contracts
entered into under section 101 of the Housing and
Urban Development Act of 1965 (12 U.S.C. 1701s).
(28) The loan and grant programs under sec-
tion 504 of the Housing Act of 1949 (42 U.S.C.
1474) for repairs and improvements to rural dwell-
ings.
(29) The loan and assistance programs under
sections 514 and 516 of the Housing Act of 1949
(42 U.S.C. 1484, 1486) for housing for farm labor.
(30) The program of grants for preservation
and rehabilitation of housing under section 533 of
the Housing Act of 1949 (42 U.S.C. 1490m).
(31) The program of grants and loans for mu-
tual and self-help housing and technical assistance
under section 523 of the Housing Act of 1949 (42
U.S.C. 1490c).
(32) The program of site loans under section
524 of the Housing Act of 1949 (42 U.S.C. 1490d).
(33) The program under part B of title IV of
the Higher Education Act of 1965.
(34) The program under subpart 1 of part A of
title IV of the Higher Education Act of 1965.
(35) The program under part C of title IV of
the Higher Education Act of 1965.
(36) The program under subpart 3 of part A of
title IV of the Higher Education Act of 1965.
(37) The program under part E of title IV of
the Higher Education Act of 1965.
(38) The program under subpart 4 of part A of
title IV of the Higher Education Act of 1965.
(39) The program under title IX of the Higher
Education Act of 1965.
(40) The program under subpart 5 of part A of
title IV of the Higher Education Act of 1965.
(41) The programs established in sections 338A
and 338B of the Public Health Service Act and the
programs established in part A of title VII of such
Act (relating to loans and scholarships for education
in the health professions).
(42) The program established in part A of title
XIX of the Public Health Service Act (relating to
block grants for preventive health and health serv-
ices).
(43) The programs established in subparts I
and II of part B of title XIX of the Public Health
Service Act.
(44)(A) The program of training for disadvan-
taged adults and youth under part A of title II of
the Job Training Partnership Act (29 U.S.C. 1601
et seq.), as in effect before July 1, 1993.
(B)(i) The program of training for disadvan-
taged adults under part A of title II of the Job
Training Partnership Act (29 U.S.C. 1601 et seq.),
as in effect on and after July 1, 1993.
(ii) The program of training for disadvantaged
youth under part C of title II of the Job Training
Partnership Act (29 U.S.C. 1641 et seq.), as in ef-
fect on and after July 1, 1993.
(45) The Job Corps program under part B of
title IV of the Job Training Partnership Act (29
U.S.C. 1692 et seq.).
(46) The summer youth employment and train-
ing programs under part B of title II of the Job
Training Partnership Act (29 U.S.C. 1630 et seq.).
(47) The programs carried out under the Older
American Community Service Employment Act (42
U.S.C. 3001 et seq.).
(48) The programs under title III of the Older
Americans Act of 1965.
(49) The programs carried out under part B of
title II of the Domestic Volunteer Service Act of
1973 (42 U.S.C. 5011–5012).
(50) The programs carried out under part C of
title II of the Domestic Volunteer Service Act of
1973 (42 U.S.C. 5013).
(51) The program under the Low-Income En-
ergy Assistance Act of 1981 (42 U.S.C. 8621 et
seq.).
(52) The weatherization assistance program
under title IV of the Energy Conservation and Pro-
duction Act (42 U.S.C. 6851).
(53) The program of block grants to States for
social services under title XX of the Social Security
Act.
(54) The programs carried out under the Com-
munity Services Block Grant Act (42 U.S.C. 9901
et seq.).
(55) The program of legal assistance to eligible
clients and other programs under the Legal Services
Corporation Act (42 U.S.C. 2996 et seq.).
(56) The program for emergency food and shel-
ter grants under title III of the Stewart B. McKin-
ney Homeless Assistance Act (42 U.S.C. 11331 et
seq.).
(57) The programs carried out under the Child
Care and Development Block Grant Act of 1990 (42
U.S.C. 9858 et seq.).
(58) A State program for providing child care
under section 402(i) of the Social Security Act.
(b) 
EDUCATION
OF
CHILDREN
OF
ILLEGAL
ALIENS.—
(1) STATEMENT OF POLICY.—It is the policy of
the Congress that States and local educational agen-
cies should not be required to provide a free public
elementary or secondary education to any individual
who is not within one of the following classes of indi-
viduals:
(A) Citizens of the United States.
(B) Aliens lawfully admitted to the United
States for permanent residence.
(C) Aliens who are permanently residing in
the United States under color of law (including
residence as an asylee, refugee, or parolee).
(2) NOTIFICATION OF AUTHORITIES.—A State
or local educational agency shall notify the Attorney
General whenever such State or agency learns that
a child who is not within a class of individuals under
subparagraph (A), (B), or (C) of paragraph (1) is
enrolled in a public elementary or secondary school
served by such State or agency, respectively.
(3) DEPORTATION.—
(A) IN GENERAL.—After receiving notifica-
tion under paragraph (2), the Attorney General
shall immediately take action under section 242
of the Immigration and Nationality Act to bring
deportation proceedings against a child de-
scribed in such paragraph, and any relative liv-
ing with such child who is not within a class of
individuals under subparagraph (A), (B), or (C)
of paragraph (1).
(B) REQUIREMENT.—Notwithstanding any
other provision of law, a State or local edu-
cational agency shall not be required to provide
a free public education to any individual de-
scribed in subparagraph (A) during the period
such individual is awaiting deportation.
(4) DEFINITIONS.—For the purpose of this sec-
tion—
(A) the terms ‘‘local educational agency’’,
‘‘elementary school’’, and ‘‘secondary school’’
have the meanings given such terms in section
1471 of the Elementary and Secondary Edu-
cation Act of 1965, and
(B) the term ‘‘State’’ means the 50 States,
the District of Columbia, Puerto Rico, Amer-
ican Samoa, Guam, and the Virgin Islands.
SEC. 407. REPLACEMENT OF CASH BENEFIT WITH MEDICAL
VOUCHERS.
(a) IN
GENERAL.—Section 1611(b) (42 U.S.C.
1382(b)) is amended by adding at the end the following
new paragraph:
‘‘(3) Notwithstanding paragraphs (1) and (2),
the benefit under this title for a child who has not
attained 18 years of age shall be vouchers issued
pursuant to subsection (j).’’.
(b) ISSUANCE OF VOUCHERS FOR TREATMENT OF
DISABLING CONDITIONS OF CHILDREN ELIGIBLE FOR
SSI BENEFITS.—Section 1611 (42 U.S.C. 1382) is
amended by adding at the end the following new sub-
section:
‘‘VOUCHER PROGRAM
‘‘(j)(1) The Secretary of Health and Human Services
shall issue to each child eligible for benefits under this
title who has not attained 18 years of age vouchers which
may be used to cover the cost of any item—
‘‘(A) that is associated with treating the blind-
ness or disability of the child;
‘‘(B) for which a medical expense deduction
may be claimed under section 213 of the Internal
Revenue Code of 1986 by the child or any taxpayer
who may claim the child as a dependent; and
‘‘(C) the cost of which is not covered by the
program of medical assistance approved under title
XIX of the State in which the child resides.
‘‘(2) The annual dollar amount of the vouchers issued
under this subsection with respect to a child shall not ex-
ceed the annual amount of the cash benefit to which the
child would (but for this subsection) have been entitled
under this title.
‘‘(3)(A) The Secretary shall pay to each qualified pro-
vider of health care goods or services that submits to the
Secretary a voucher issued under this subsection, the face
amount of the voucher.
‘‘(B) For purposes of subparagraph (A), the term
‘qualified provider’ means a provider that is licensed by
a State or by a professional health care organization ap-
proved by the Secretary.
‘‘(4) The parents of a child who receives vouchers
under this subsection may submit to the Secretary vouch-
ers issued under this subsection for transportation costs
incurred in providing medical or therapeutic assistance to
such child and the Secretary shall make payments to such
parents under such vouchers pursuant to the rules relating
100
to transportation costs under section 213 of the Internal
Revenue Code of 1986.’’.
SEC. 408. DISABILITY REVIEW REQUIRED FOR SSI RECIPI-
ENTS WHO ARE 18 YEARS OF AGE.
(a) IN GENERAL.—Section 1614(a)(3)(G) (42 U.S.C.
1382(a)(3)(G)) is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(G)’’; and
(2) by adding after and below the end the fol-
lowing:
‘‘(ii)(I) During the 1-year period that begins on the
date a recipient of benefits under this title by reason of
disability attains 18 years of age, the applicable State
agency or the Secretary (as may be appropriate) shall re-
determine the eligibility of the recipient for such benefits
by reason of disability, by applying the criteria used in
determining eligibility for such benefits of applicants who
have attained 18 years of age.
‘‘(II) A review under subclause (I) shall be considered
a substitute for a review required under clause (i).’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to individuals who attain 18
years of age in or after the 9th month after the month
in which this Act is enacted.
101
SEC. 409. AMOUNT OF FUNDS AVAILABLE FOR LOW-INCOME
HOME ENERGY ASSISTANCE.
Notwithstanding any other provision of law, the
amount of funds available for obligation in any fiscal year
for programs and activities under the Low-Income Home
Energy Assistance Act of 1981 (title XXVI of Public Law
97–35; 42 U.S.C. 8621 et seq.) shall be the amount of
funds appropriated for that fiscal year for such programs
and activities pursuant to the authorization of appropria-
tions in section 2602(b) of such Act (42 U.S.C. 8621(b))
reduced by $400,000,000.
TITLE V—STATE OPTIONS AND
MISCELLANEOUS PROVISIONS
SEC. 501. OPTION TO TIME LIMIT WELFARE.
(a) AFDC PROGRAM.—
(1) IN GENERAL.—Section 402(a) (42 U.S.C.
602(a)), as amended by sections 101 (b)(2)(A) and
(e), 103 (a) and (b), 201(b), 202(a), 203(a), and
404(b), is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (52);
(B) by striking the period at the end of
paragraph (53) and inserting ‘‘; and’’; and
(C) by inserting after paragraph (53) the
following new paragraph:
‘‘(54) at the option of the State—
102
‘‘(A) provide that aid shall be available to
a family otherwise eligible under the plan only
for a period of time determined appropriate by
the State; and
‘‘(B) provide that in the case of a family
applying for aid under the State plan that has
moved to the State from another State which
has a limit under subparagraph (A) in effect,
the State may apply such limit to the family in
determining—
‘‘(i) the eligibility of the family for aid
under this part; and
‘‘(ii) the amount of aid available to
the family under this part.’’.
(2) ELIGIBILITY
FOR
MEDICAID
PROGRAM.—
Section 402 (42 U.S.C. 602) is amended by insert-
ing after subsection (c) the following new subsection:
‘‘(d) An individual shall continue to be eligible for
medical assistance under the State plan under title XIX
if, but for the exercise by the State of the option under
subsection (a)(54), the individual would be eligible for aid
to families with dependent children under this part.’’.
(b) FOOD STAMP PROGRAM.—Section 6 of the Food
Stamp Act of 1977 (7 U.S.C. 2015), as amended by sec-
103
tions 102(a), 201(c), and 202(b), is amended by adding
at the end the following new subsection:
‘‘(l)(1) A State may provide that food stamps shall
be available to households residing in the State that are
otherwise eligible under this Act only for a period of time
determined appropriate by the State.
‘‘(2) If a household moves to a State from another
State which has a limit under paragraph (1) in effect, the
State to which the household moves may apply such limit
to such household in determining—
‘‘(A) the eligibility of the household for food
stamps; and
‘‘(B) the amount of the allotment of the house-
hold.’’.
(c) HOUSING PROGRAMS.—The United States Hous-
ing Act of 1937 (42 U.S.C. 1437 et seq.), as amended
in section 201(d), is amended—
(1) in section 6, by adding at the end the fol-
lowing new subsection:
‘‘(r) OPTION TO TIME LIMIT ASSISTANCE.—Each
contract described in subsection (a) shall provide that—
‘‘(1) the Governor of each State shall have the
option to limit the period of time during which any
individual residing in the State who is otherwise eli-
104
gible to receive assistance under this Act may receive
such assistance; and
‘‘(2) if an individual moves to a State from an-
other State which has a limit under paragraph (1)
in effect, the Governor of the State to which the in-
dividual moves may apply such limit to such individ-
ual in determining—
‘‘(A) the eligibility of the individual for as-
sistance under this Act; and
‘‘(B) the amount of assistance available to
the individual under this Act.’’; and
(2) in section 8, by adding at the end the fol-
lowing new subsection:
‘‘(aa) OPTION TO TIME LIMIT ASSISTANCE.—Each
contract to make assistance payments described in sub-
section (a) shall provide that—
‘‘(1) the Governor of each State shall have the
option to limit the period of time during which any
individual residing in the State who is otherwise eli-
gible to receive assistance under this section may re-
ceive such assistance; and
‘‘(2) if an individual moves to a State from an-
other State which has a limit under paragraph (1)
in effect, the Governor of the State to which the in-