‘‘(H) $3,000,000,000 in the case of fiscal year
1998, and
‘‘(I) $3,500,000,000 in the case of fiscal year
1999.’’.
(c) INCREASE
IN CHILD CARE PAYMENT FOR-
MULA.—
(1) IN GENERAL.—
(A) 
INCREASED
PERCENTAGE.—Section
402(g)(3)(A)(i) of the Social Security Act (42
U.S.C. 602(g)(3)(A)(i)) is amended to read as
follows:
‘‘(3)(A)(i) In the case of expenditures in any fiscal
year for child care pursuant to paragraph (1)(A) by any
State to which section 1108 does not apply, the applicable
rate for purposes of section 403(a) shall be—
‘‘(I) with respect to so much of such expendi-
tures as does not exceed the State’s expenditures in
the fiscal year 1994, the Federal medical assistance
percentage (as defined in section 1905(b)), and
‘‘(II) with respect to so much of such expendi-
tures as exceed the amount described in subclause
(I), the sum of—
‘‘(aa) the Federal medical assistance per-
centage (as defined in section 1905(b)), and
‘‘(bb) one-half of the difference between
100 percent and such Federal medical assist-
ance percentage.’’.
(B) EFFECTIVE DATE.—The amendments
made by subparagraph (A) shall apply with re-
spect to payments made on and after October
1, 1994.
(2) CONFORMING AMENDMENTS.—
(A) IN GENERAL.—Section 402(g)(3)(A)(i)
of 
the 
Social 
Security 
Act 
(42 
U.S.C.
602(g)(3)(A)(i)), as amended by paragraph
(1)(A) of this subsection, is amended—
(i) by striking ‘‘(i)’’ after ‘‘(A)’’;
(ii) by striking ‘‘subclause (I)’’ in
subclause (II) and inserting ‘‘clause (i)’’;
(iii) by redesignating subclauses (I)
and (II) as clauses (i) and (ii), respec-
tively; and
(iv) by redesignating items (aa) and
(bb) as subclauses (I) and (II), respec-
tively.
(B) EFFECTIVE DATE.—The amendments
made by subparagraph (A) shall take effect on
September 30, 1998.
SEC. 108. ASSESSMENT, MONITORING, AND EVALUATION.
(a) IN
GENERAL.—Section 402(a) (42 U.S.C.
602(a)), as amended by section 102(g)(1) of this Act, is
amended—
(1) by striking ‘‘and’’ at the end of paragraph
(45);
(2) by striking the period at the end of para-
graph (46) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (46) the fol-
lowing new paragraph:
‘‘(47) at the option of the State (on a statewide
basis or in a defined area of the State), provide that
the State agency (in order to increase the percentage
of families moving from welfare to self-sufficiency)—
‘‘(A) shall conduct an assessment, in con-
sultation with State and local elected officials,
current recipients of aid to families with de-
pendent children, recipients of community-based
service systems, and individuals with expertise
in business, education, child welfare, juvenile
justice, mental health, substance addiction,
housing, and labor—
‘‘(i) of the barriers which families that
receive aid to families with dependent chil-
dren face in achieving self-sufficiency, in-
cluding noneconomic barriers such as fam-
ily functions, parenting capacity, child de-
velopment, housing, substance abuse, and
mental illness;
‘‘(ii) of the capacity within the State
to provide employment opportunities to
families that receive aid to families with
dependent children and to address other
barriers such families face to achieving
self-sufficiency; and
‘‘(iii) of the number and skills of
workers needed to develop the family in-
vestment program under paragraph (29),
monitor progress, and adapt goals to meet
new challenges;
‘‘(B) shall establish a system to monitor
and evaluate both the economic gains related to
employment of individuals in households receiv-
ing aid to families with dependent children and
the social, health, educational, and developmen-
tal impact on children in such households that
result from efforts to achieve self-sufficiency;
and
‘‘(C) shall establish a system to determine
the number of individuals who achieve self-suffi-
ciency through the family investment program
under paragraph (29) and the rate of recidi-
vism.’’.
(b) EFFECTIVE DATE.—Except as provided in sec-
tion 111, the amendments made by this section shall take
effect on the first day of the first fiscal year beginning
after the date of the enactment of this Act.
SEC. 109. TIMELY PREVENTIVE HEALTH CARE FOR CHIL-
DREN.
(a) IN
GENERAL.—Section 402(a) (42 U.S.C.
602(a)), as amended by section 102(g)(1) and 108(a) of
this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(46);
(2) by striking the period at the end of para-
graph (47) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (47) the fol-
lowing new paragraph:
‘‘(48) provide that (unless the State agency
provides the Secretary with adequate certification
that the care described in subparagraph (A)(i)(I) is
not accessible in the area in which a family re-
sides)—
‘‘(A)(i) the State shall decrease the
amount of aid paid to a family under this part
(determined without regard to subparagraph
(b) EFFECTIVE DATE.—Except as provided in sec-
tion 111, the amendments made by this section shall take
effect on the first day of the first fiscal year beginning
after the date of the enactment of this Act.
SEC. 
110. 
WAGE 
SUPPLEMENTATION 
DEMONSTRATION
PROJECTS.
(a) IN GENERAL.—The Secretary of Health and
Human Services (hereafter in this section referred to as
the ‘‘Secretary’’) shall establish demonstration projects for
the purpose of developing a wage supplementation pro-
gram under which—
(1) certain individuals eligible for aid to fami-
lies with dependent children under title IV of the So-
cial Security Act (42 U.S.C. 601 et seq.) would be
given an incentive to work; and
(2) the State would use funds available to pay
benefits described in paragraph (1) and food stamp
benefits under the Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.) to make monthly incentive pay-
ments (in lieu of such benefits) to such individuals.
Each such program shall meet the requirements of sub-
section (b).
(b) WAGE
SUPPLEMENTATION
DEMONSTRATION
PROJECT.—
(1) IN
GENERAL.—A demonstration project
conducted under this section shall provide the follow-
ing:
(A) INCENTIVES TO WORK.—The project
shall—
(i) require as a condition of participa-
tion in the project that an eligible individ-
ual be employed by a participating em-
ployer;
(ii) provide that the State shall make
monthly incentive payments to any eligible
individual for each month of employment
in an amount equal to the benefits de-
scribed in subsection (a)(2) which would
otherwise be payable to the individual, de-
termined as of the first day of the first full
month of employment of such individual by
a participating employer; and
(iii) provide that such payments be in
lieu of such benefits.
(B) 
PERIOD
OF
PARTICIPATION.—A
project shall not permit an eligible individual to
participate in the demonstration project for a
period in excess of the lesser of—
(i) an aggregate period of 48 months,
or
(ii) a period consisting of the number
of months in which such individual was
employed by a participating employer.
(C) INCOME IN EXCESS OF LIMIT.—The
project shall set a limit (to be determined by
the State) on the monthly income (including
payments under subparagraph (A)(ii)) of the
family of an eligible individual and shall permit
the State to—
(i) reduce payments under subpara-
graph (A)(ii) in excess of the limit; or
(ii) determine an individual ineligible
for participation in the project if such in-
come is in excess of the limit.
(2) SPECIAL RULES FOR TREATMENT UNDER
FEDERAL
PROGRAMS.—Notwithstanding any other
provision of law, the following special rules shall
apply to an eligible individual participating in the
project:
(A) WAGES AS EARNED INCOME.—Wages
paid to an eligible individual by a participating
employer (but not payments under the project)
shall be considered earned income.
(B) TREATED AS ELIGIBLES.—Except for
purposes of determining eligibility for benefits
for which payments under the project are in
lieu of, an eligible individual participating in the
project shall be treated as eligible—
(i) for aid to families with dependent
children under part A of title IV of the So-
cial Security Act (42 U.S.C. 601 et seq.);
and
(ii) for food stamp benefits under the
Food Stamp Act of 1977 (7 U.S.C. 2011
et seq.) if such individual was otherwise el-
igible for food stamp benefits, determined
as of the first day of the first full month
of the employment of such individual by a
employer.
(C) 
ADDITIONAL
CHILD
SUPPORT
AMOUNTS.—An eligible individual who partici-
pates in the demonstration project shall remain
eligible for the project notwithstanding the re-
ceipt of any amounts paid to the family of the
individual under section 457(b)(4)(B) of the
Social Security Act (42 U.S.C. 657(b)(4)(B)).
(D) HOUSING.—Any wages paid to an eli-
gible individual by a participating employer dur-
ing the period of time that an eligible individual
participates in the demonstration project shall
not be taken into account in determining—
(i) the monthly rent under section
3(a) of the United States Housing Act of
1937 for any family residing in a dwelling
unit assisted under such Act; and
(ii) the monthly assistance payment
for any family under section 8(o)(2) of
such Act.
(3) ELIGIBLE INDIVIDUAL AND PARTICIPATING
EMPLOYER.—
(A) ELIGIBLE INDIVIDUAL.—For purposes
of this section, an individual is an eligible indi-
vidual if the individual is in a category of indi-
viduals which the State determines should be el-
igible to participate in the demonstration
project, and who would, at the time of place-
ment in the job involved, be eligible for aid to
families with dependent children under an ap-
proved State plan under title IV of the Social
Security Act (42 U.S.C. 601 et seq.).
(B) PARTICIPATING EMPLOYER.—
(i) IN
GENERAL.—For purposes of
this section, an employer is a participating
employer, with respect to an eligible indi-
vidual, if the employer provides the State
with a written agreement certifying—
(I) that the employment of the
eligible individual complies with the
rules described in subsections (b), (c),
(d), and (g) of section 484 of the So-
cial Security Act (42 U.S.C. 684);
(II) that the gross wages (as de-
fined in section 209 of the Social Se-
curity Act (42 U.S.C. 609) deter-
mined without regard to any dollar
limitation) paid to such eligible indi-
vidual by the employer during any
month will not be less than the prod-
uct of—
(aa) the greater of the Fed-
eral minimum wage or the appli-
cable State minimum wage, and
(bb) the number of hours
worked by such individual;
(III) that the employer will not
receive any wage subsidy under any
other provision of Federal law, includ-
ing part F of title IV of the Social Se-
curity Act with respect to the employ-
ment of such eligible individual; and
(IV) that the eligible individual
receives the same employer-provided
benefits (other than health care bene-
fits) that other employees of the em-
ployer receive.
(ii) CONTINUING CERTIFICATION RE-
QUIREMENT.—A 
participating 
employer
shall be required to submit a monthly re-
port to the State (in a form and in such
manner as the State requires) certifying
that the employer has complied with the
requirements of subclauses (I), (II), (III),
and (IV) of clause (i) with respect to an el-
igible individual during the period such in-
dividual participates under the project.
(c) DURATION.—A demonstration project under this
Act shall be conducted for not more than 5 years (includ-
ing any time necessary for final evaluation and reporting).
The Secretary may terminate a project if the Secretary
determines that the State conducting the project is not
in substantial compliance with the terms of the application
approved by the Secretary under this section.
(d) APPLICATIONS.—
(1) IN GENERAL.—Each State desiring to con-
duct a demonstration project under this section shall
prepare and submit to the Secretary an application,
at such time, in such manner, and containing such
information as the Secretary may require, including
an explanation of a plan for evaluating the project.
(2) APPROVAL OF APPLICATIONS.—A State that
submits an application under paragraph (1) may
begin a demonstration project under this section—
(A) upon approval of such application by
the Secretary; or
(B) at the end of the 60-day period begin-
ning on the date such application is submitted,
unless the Secretary denies the application dur-
ing such period.
(3) NOTICE
AND
COMMENT.—A State shall
issue a public notice on the date the State submits
an application under paragraph (1) which contains
a general description of the proposed demonstration
project. Any interested party may comment on the
proposed demonstration project to the State or the
Secretary during the 30-day period beginning on the
date the public notice is issued.
(e) EVALUATIONS.—Each State conducting a dem-
onstration project under this section shall submit to the
Secretary an annual and final evaluation that determines
the success of the State’s demonstration project under this
section in moving people from welfare dependency to self-
sufficiency.
(f) FUNDING FOR DEMONSTRATION PROJECTS.—For
each State that conducts a demonstration project under
this section—
(1) the portion of the monthly payments that
the State makes to a participant in the project
under subsection (b)(1)(A)(ii) that is attributable to
aid to families with dependent children under part A
of title IV of the Social Security Act (42 U.S.C. 601
et seq.) shall be considered expenditures under the
State plan for such aid;
(2) the expenses incurred by the State in the
administration of the demonstration project shall be
considered expenditures by the State for administra-
tive costs in operating a program under part F of
title IV of the Social Security Act (42 U.S.C. 601
et seq.); and
(3) the portion of the monthly payments that
the State makes to a participant in the project that
is attributable to the cash value of food stamp bene-
fits under the Food Stamp Act of 1977 (7 U.S.C.
2011 et seq.) shall be considered to be expenditures
for food stamp benefits under such Act.
(g) MAINTENANCE OF EFFORT.—Any funds available
for the activities covered by a demonstration project con-
ducted under this section shall supplement, and shall not
supplant, funds that are expended for similar purposes
under any State, regional, or local program.
SEC. 111. DELAY IN CERTAIN EFFECTIVE DATES.
In the case of a State that the Secretary of Health
and Human Services determines requires State legislation
(other than legislation appropriating funds) in order to
meet the additional requirements imposed by the amend-
ments made by section 101, 102, 104, 106, and 108, the
State shall not be regarded as failing to comply with the
requirements of such amendments before the first day of
the first calendar quarter beginning after the close of the
first regular session of the State legislature that begins
after October 1, 1994, if such State legislature did not
meet in a regular session after the date of the enactment
of this Act and before October 1, 1994. For purposes of
this subsection, in the case of a State that has a 2-year
legislative session, each year of the session shall be treated
as a separate regular session of the State legislature.
TITLE 
II—IMPROVEMENTS 
IN
THE COLLECTION OF CHILD
SUPPORT
SEC. 201. TRANSMISSION AND ASSIGNMENT OF CERTAIN
CHILD SUPPORT ORDERS TO THE IRS.
Section 466(a) (42 U.S.C. 666(a)) is amended by in-
serting after paragraph (11) the following new paragraph:
‘‘(12)(A) Procedures which require any State
court or administrative agency that issues or modi-
fies (or has issued or modified) a child support order
(including an order for the payment of past-due sup-
port) to transmit a copy of the order to the Internal
Revenue Service upon the completion of a 12-month
period during which less than 50 percent of the
court-ordered child support amount for such period
has been paid.
‘‘(B) Procedures which—
‘‘(i) require any individual with the right
to collect child support pursuant to an order is-
sued or modified in the State (whether before
or after the effective date of this paragraph) to
be presumed to have assigned to the Internal
Revenue Service the right to collect such sup-
port (including any past-due support) pursuant
to subparagraph (A), unless the individual af-
firmatively elects to retain such right at any
time; and
‘‘(ii) allow any individual who has made
the election referred to in clause (i) to rescind
or revive such election at any time.’’.
SEC. 202. COLLECTION OF CHILD SUPPORT BY INTERNAL
REVENUE SERVICE.
(a) IN GENERAL.—Chapter 77 of the Internal Reve-
nue Code of 1986 (relating to miscellaneous provisions)
is amended by adding at the end the following new section:
‘‘SEC. 7524. COLLECTION OF CHILD SUPPORT.
‘‘(a) IN GENERAL.—The Secretary shall establish a
program to collect child support (including past-due sup-
port) pursuant to child support orders which are assigned
to the Internal Revenue Service under section 466(a)(12)
of the Social Security Act.
‘‘(b) USE OF WAGE WITHHOLDING, ETC.—Such pro-
gram shall provide for the collection of child support re-
quired to be paid for any period through increases in wage
withholding under chapter 24 and estimated tax payments
under section 6654 during such period. Amounts required
to be paid through such withholding and payments shall
be treated as tax for purposes for this subtitle.
‘‘(c) ANNUAL RECKONING OF OBLIGATION.—
‘‘(1) IN GENERAL.—The entire amount of child
support required to be paid by any individual to the
Internal Revenue Service during any taxable year
shall be paid—
‘‘(A) not later than the last date (deter-
mined without regard to extensions) prescribed
for filing such individual’s return of tax im-
posed by chapter 1 for such taxable year, and
‘‘(B)(i) if such return is filed not later
than such date, with such return, or
‘‘(ii) in any case not described in subpara-
graph (A), in such manner as the Secretary
may by regulations prescribe.
‘‘(2) CREDIT FOR PERIODIC PAYMENTS.—The
amount required to be paid under paragraph (1)
shall be reduced by the aggregate payments of child
support made under subsection (b) by such individ-
ual through increases in wage withholding and esti-
mated tax payments.
‘‘(d) FAILURE TO PAY AMOUNT OWING.—If an indi-
vidual fails to pay the full amount required to be paid on
or before the last date described in subsection (c)(1), the
Secretary shall assess and collect the unpaid amount in
the same manner, with the same powers, and subject to
the same limitations applicable to a tax imposed by sub-
title C the collection of which would be jeopardized by
delay, except that—
‘‘(1) for such purposes, paragraphs (4), (6),
and (8) of section 6334(a) (relating to property ex-
empt from levy) shall not apply, and
‘‘(2) there shall be exempt from levy so much
of the salary, wages, or other income of an individ-
ual as is being withheld therefrom in garnishment
pursuant to a judgment entered by a court of com-
petent jurisdiction for the support of the individual’s
minor children.
‘‘(e) COLLECTIONS
DISPERSED
TO
INDIVIDUAL
SPECIFIED IN ORDER.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), amounts collected under this section pur-
suant to any child support order shall be paid to the
individual entitled to such amounts under such order
as quickly as possible. Any penalties and interest
collected with respect to such amounts also shall be
paid to such individual.
‘‘(2) FAMILIES
RECEIVING
STATE
ASSIST-
ANCE.—In the case of an individual with respect to
whom—
‘‘(A) an assignment of child support pay-
ments to a State under section 402(a)(26) or
471(a)(17) of the Social Security Act is in ef-
fect, or
‘‘(B) an application for State assistance
under section 454(6) is in effect,
amounts collected under this section shall be paid to
such State pursuant to section 457 of such Act.
‘‘(f) COORDINATION WITH UNDERPAYMENT PROVI-
SIONS.—If the Secretary is collecting—
‘‘(1) unpaid child support pursuant to an as-
sessment under this section, and
‘‘(2) unpaid tax pursuant to an assessment
under section 6203,
all amounts collected shall be treated as collected pursuant
to the assessment under this section to the extent of the
amount of such unpaid child support.
‘‘(g) LIMITATION ON JUDICIAL REVIEW.—No court
of the United States shall have jurisdiction to hear any
action, whether legal or equitable, brought to restrain or
review any assessment or collection authorized by this sec-
tion, nor shall any such assessment or collection be subject
to review by the Secretary in an administrative proceeding.
This subsection shall not preclude any legal, equitable, or
administrative action against the State by an individual
in any State court or before any State agency to determine
his liability for any amount assessed against him and col-
lected, or to recover any such amount collected from him,
under this section.
‘‘(h) REGULATIONS.—The Secretary shall prescribe
such regulations as may be appropriate to carry out the
purposes of this section.’’.
(b) ESTIMATE OF INCREASED INTERNAL REVENUE
FUNDING.—Within 1 year of the date of the enactment
of this Act, the Secretary of the Treasury shall submit
to the Congress an estimate of the additional cost per fis-
cal year for administering the program described in sec-
tion 7524 of the Internal Revenue Code of 1986 (as added
by this section).
(c) CLERICAL AMENDMENT.—The table of sections
for chapter 77 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new item:
‘‘Sec. 7524. Collection of child support.’’
SEC. 203. PUBLICATION OF DELINQUENT CHILD SUPPORT
OBLIGORS.
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) at the option of the State, provide that
with respect to any child support order enforced by
the State under this part in which no payment has
been made during a preceding 3-month period, the
State make available for publication on a semi-an-
nual basis a listing of all such orders by name of the
support obligor, verified city and State address of
such obligor, and any other information deemed ap-
propriate by the State, and publicize the existence of
such listing to such support obligors.’’.
SEC. 204. EFFECTIVE DATE.
(a) IN GENERAL.—Except as provided in subsection
(b), the amendments made by this title shall take effect
on the first day of the first fiscal year beginning after the
date of the enactment of this Act.
(b) EXCEPTION.—In the case of a State that the Sec-
retary of Health and Human Services determines requires
State legislation (other than legislation appropriating
funds) in order to meet the additional requirements im-
posed by the amendments made by this title, the State
shall not be regarded as failing to comply with the require-
ments of such amendments before the first day of the first
calendar quarter beginning after the close of the first reg-
ular session of the State legislature that begins after Octo-
ber 1, 1994, if such State legislature did not meet in a
regular session after the date of the enactment of this Act
and before October 1, 1994. For purposes of this sub-
section, in the case of a State that has a 2-year legislative