An Act to extend and improve the public assistance and child welfare services programs of the Social Security Act, and for other purposes
PL 87-543 (H.R.10606), enacted 07/25/1962

172 
PUBLIC LAW 87-543-JULY 25, 1962 
[76 S TAT. 
Public Law 87-543 
July 25,1962 
AN ACT 
[H. R. 10606] 
To extend and improve the public assistance and child welfare services programs 
of the Social Security Act, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
Public Welfare 
United States of America in Congress assembled^ That this Act, with 
Arnendments o
f 
^j^^ following table of conteiits, may be cited as the "Public Welfare 
Amendments of 1962". 
TABLE OF CONTENTS 
TITLE I—PUBIJC WELFARE AMENDMENTS 
PABT A—IMPROVEMENT IN SERVICES TO PREVENT OR REDUCE DEPENDENCY 
Sec. 101. Services and other administrative costs under public assistance pro-
grams. 
(a) Federal ^nancial participation in costs of services. 
(b) Requirements for full Federal matching of State administra-
tive expenditures. 
Sec. 102. Expansion and improvement of child welfare services. 
(a) Increase in authorization of appropriations. 
(b) Coordination with dependent children program and extension 
of child welfare services. 
(c) Allotments for day care. 
(d) Definition of child-welfare services. 
See. 103. Welfare services for each child under dependent children program. 
Sec. 104. Technical amendments to reflect emphasis on rehabilitation and other, 
services. 
Sec. 105. Community work and training programs. 
Sec. 103. Incentives for employment through consideration of expenses in earn-
ing income, and provision for future needs of dependent children. 
Sec. 107. Use of payments for benefit of child. 
Sec. 108. Protective payments under dependent children program. 
Sec. 109. Aid for both parents of dependent child. 
PART B 
IMPROVEMENT IN ADMINISTRATION THROUGH DEMONSTRATIONS, 
TRAINING, 
AND PUBLIC ADVISORY GROUPS 
Sec. 121. Advisory council on public welfare. 
Sec. 122. Waiver of State plan requirements for demonstrations. 
Sec. 123. Increase in adequately trained welfare personnel. 
PART C 
IMPROVEMENT 
OF PUBLIC 
WELFARE PROGRAMS 
THROUGH 
EXTENSION 
OF 
TEMPORARY PROVISION'S AND INCREASE IN FEDERAL SHARE OF PUBLIC ASSISTANCE 
PAYMENTS 
Sec. 131. Extension of aid with respect to dependent children of unemployed 
parents or in foster family homes. , 
(a) Extension with respect to children of unemployed parents. 
(b) Extension with respect to foster family home care. 
Sec. 132. Increase in Federal share of public assistance payments. 
Sec. 133. Extension of assistance to repatriated American citizens. 
Sec. 134. Refusal of unemployed parent to accept retraining. 
Sec. 135. Federal payments for foster care in child-care institutions. 
Sec. 136. Certain State plans not meeting income and resources requirements for 
the blind. 
PART D—SIMPLIFICATION OF CATEGORIES 
Sec. 141. Optional combined State plan for aged, blind, and disabled. 
PART E 
MISCELLANEOUS AND TECHNICAL AMENDMENTS 
Sec. 151. Increase in limitation on total public assistance payments to Puerto 
Rico, the Virgin Islands, and Guam. 
Sec. 152. Payments to relative of child when child is dependent. 
Sec. 153. Definitions of "State" and "United States". 
Sec. 154. Income and resources to be disregarded in determining need of individ-
ual for aid to the blind. 
76 STAT. ] 
PUBLIC LAW 87-543-JULY 25, 1962 
173 
TITLE I—PUBLIC WELFABBJ AMENDMENTS—Con. 
PABT E—MISCELLANEOUS AND TECHNICAL AMENDMENTS—Coil. 
Sec. 155. Responsibility for placement and foster care of dependent children. 
Sec. 156. Starting date for public assistance in form of medical or remedial care. 
Sec. 157. Certain earned income may be disregarded in determining need for old-
age assistance. 
TITLE II—GENERAL 
Sec. 201. Meaning of term "Secretary". 
Sec. 202. Effective dates. 
TITLE I—PUBLIC W E L F A R E AMENDMENTS 
PART A—IMPROVEMENT IN SERVICES T O PREVENT OR 
REDUCE 
DEPENDENCY 
SERVICES AND OTHER ADMINISTRATIVE COSTS UNDER PUBLIC 
ASSISTANCE PROGRAMS 
Federal Financial Participation in Costs of Services 
SEC. 101. (a) (1) Section 3(a) of the Social Security Act is amended 
74 stat. 989. 
by striking out paragraph (4) and inserting in lieu thereof the 
Poitf^.^m. 
following: 
"(4) in the case of any State, an amount equal to the sum of 
the following proportions of the total amounts expended during 
such quarter as found necessary by the Secretary of Health, 
Education, and Welfare for the proper and efficient adminis-
tration of the State plan— 
"(A) 75 per centum of so much of such expenditures as are 
for— 
"(i) services which are prescribed pursuant to subsec-
tion (c)(1) and are provided (in accordance with the 
Post, p. 179. 
next sentence) to applicants for or recipients of assist-
ance under the plan to help them attain or retain capa-
bility for self-care, or 
"(ii) other services, specified by the Secretary as likely 
to prevent or reduce dependency, so provided to such 
applicants or recipients, or 
"(iii) any of the services prescribed pursuant to sub-
section (c)(1), and of the services specified as provided 
in clause (ii), which the Secretary may specify as appro-
priate for individuals who, within such period or periods 
as the Secretary may prescribe, have been or are likely 
to become applicants for or recipients of assistance under 
the plan, if such services are requested by such individuals 
and are provided to such individuals in accordance with 
the next sentence, or 
"(iv) the training of personnel employed or preparing 
for employment by the State agency or by the local 
agency administering the plan in the political subdivi-
sion; plus 
"(B) one-half of so much of such expenditures (not in-
cluded under subparagraph (A)) as are for services provided 
(in accordance with the next sentence) to applicants for or 
recipients of assistance under the plan, and to individuals 
requesting such services who (within such period or periods 
as the Secretary may prescribe) have been or are likely to 
become applicants for or recipients of such assistance; plus 
174 
PUBLIC LAW 87-543-JULY 25, 1962 
[76 STAT. 
"(C) one-half of the remainder of such expenditures. 
The services referred to in subparagraphs (A) and (B) shall 
include only— 
"(D) services provided b^ the staff of the State agency, 
r , •
; or of the local agency administering the State plan m the 
political subdivision: Provided^ That no funds authorized 
under this title shall be available for services defined as voca-
tional rehabilitation services under the Vocational Rehabili-
68 Stat. 652. 
tatiou Act (i) which are available to individuals in need of 
29 use 31 note. 
them uuder programs for their rehabilitation carried on 
under a State plan approved under such Act, or (ii) which 
the State agency or agencies administering or supervising the 
administration of the State plan approved under such Act 
are able and willing to provide if reimbursed for the cost 
thereof pursuant to agreement under subparagraph (E), if 
provided by such staff, and 
"(E) subject to limitations prescribed by the Secretary, 
services which in the judgment of the State agency cannot be 
as economically or as effectively provided by the staff of such 
State or local agency and are not otherw^ise reasonably avail-
able to individuals in need of them, and which are provided, 
pursuant to agreement with the State agency, by the State 
health authority or the State agency or agencies administer-
ing or supervising the administration of the State plan for 
vocational rehabilitation services approved under the Voca-
- 
• ^, tional Rehabilitation Act or by any other State agency which 
' 
' ' the Secretary may determine to be appropriate (whether 
provided by its staff or by contract with public (local) or 
nonprofit private agencies) ; 
except that services described in clause (ii) of subparagraph 
(D) hereof may be provided only pursuant to agreement with 
such State agency or agencies administering or supervising the 
administration of the State plan for vocational rehabilitation 
services so approved. 
The portion of the amount expended for 
administration of the State plan to which subparagraph (A) 
applies and the portion thereof to which subparagraphs (B) and 
' 
(C) apply shall be determined in accordance with such methods 
and procedures as may be permitted by the Secretary." 
72 Stat. 1048; 
(2) Scctiou 403(a) of such Act is amended to read as follows: 
^*42''usc^603 
"(^) From the sums appropriated therefor, the Secretary of the 
Treasury shall pay to each State which has an approved plan for 
aid and services to needy families with children, for each quarter, be-
ginning with the quarter commencing October 1, 1958— 
" (1) in the case of any State other than Puerto Rico, the Virgin 
Islands, and Guam, an amount equal to the sum of the following 
proportions of the total amounts expended during such quarter 
as aid to families with dependent children under the State plan 
(including expenditures for insurance premiums for medical or 
^ 
any other type of remedial care or the cost thereof) — 
« 
"(A) fourteen-seventeenths 
of such expenditures, not 
counting so much of any expenditure with respect to any 
month as exceeds the product of $17 multiplied by the total 
number of recipients of aid to families with dependent chil-
dren for such month (which total number, for purposes of 
this subsection, means (i) the number of individuals with 
respect to whom such aid in the form of money payments is 
paid for such month, plus (ii) the number of other individ-
uals with respect to whom expenditures were made in such 
76 STAT. ] 
PUBLIC LAW 87-543-JULY 25, 1962 
175 
month as aid to families with dependent children in the form 
of medical or any other type of remedial care); plus 
"(B) the Federal percentage of the amount by which such 
expenditures exceed the maximum which may be counted 
under clause (A), not counting so much of any expenditure 
with respect to any month as exceeds the product of $30 
multiplied by the total number of recipients of aid to families 
with dependent children for such month; and 
" (2) in the case of Puerto Rico, the Virgin Islands, and Guam, 
an amount equal to one-half of the total of the sums expended 
during such quarter as aid to families with dependent children 
under the State plan (including expenditures for insurance 
premiums for medical or any other type of remedial care or the 
cost thereof), not counting so much of any expenditure with re-
spect to any month as exceeds $18 multiplied by the total number 
of recipients of such aid for such month; and 
"(3) in the case of any State, an amount equal to the sum of 
the following proportions of the total amounts expended during 
such quarter as found necessary by the Secretary of Health, Edu-
cation, and Welfare for the proper and efficient administration of 
the State plan— 
"(A) 75 per centum of so much of such expenditures as 
are for— 
"(i) services which are prescribed pursuant to sub-
* 
section (c) (1) and are provided (in accordance with the 
Post, p. iso. 
next sentence) to any relative, specified in section 406(a), 
53 stat. laso. 
with whom any dependent child (applying for or receiv- •
*
^ "^^ ^°*-
ing aid to families with dependent children) is living in 
order to help such relative attain or retain capability for 
self-support or self-care, or services which are so pre-
scribed and so provided in order to maintain and 
strengthen family life for any such child, or 
" (ii) other services, specified by the Secretary as likely 
to prevent or reduce dependency, so provided to any such 
child or relative, or 
"(iii) any of the services prescribed pursuant to sub-
section (c) (1), and of the services specified as provided 
in clause (ii), which the Secretary may specify as appro-
priate for any relative specified in section 406(a) with 
whom any child (who, within such period or periods as 
the Secretary may prescribe, has been or is likely to be-
come an applicant for or recipient of aid to families with 
dependent children) is living, or as appropriate for such 
a child, if such services are requested by such relative and 
are provided to such relative or child in accordance with 
the next sentence, or 
"(iv) the training of personnel employed or prepar-
ing for employment by the State agency or by the local 
agency administering the plan in the political subdivi- .. 
sion; plus 
"(B) one-half of so much of such expenditures (not 
included under subparagraph (A)) as are for services pro-
vided (in accordance with the next sentence) to any relative, 
specified in section 406(a), with whom any child (who, 
within such period or periods as the Secretary may prescribe, 
has been or is likely to become an applicant for or recipient 
of aid to families with dependent children) is living, or to 
such child, if such services are requested hj such relative 
or for services so provided to any child who is an applicant 
176 
PUBLIC LAW 87-543-JULY 25, 1962 
[76 STAT. 
for or recipient of such aid, or to any relative, specified in 
S3 Stat. 1380. 
section 406(a), with whom such a child is living; plus 
42 use 606. 
"(C) one-half of the remainder of such expenditures. 
The services referred to in subparagraphs (A) and (B) shall 
include only— 
"(D) services provided by the staff of the State agency, 
or of the local agency admmistering the State plan in the 
political subdivision: Provided, 
That no funds authorized 
under this title shall be available for services defined as voca-
tional rehabilitation services under the Vocational Rehabili-
68 Stat. 652. 
tation Act (i) which are available to individuals in need of 
29 use 31 note. 
them uudcr programs for their rehabilitation carried on under 
a State plan approved under such Act, or (ii) which the 
State agency or agencies administering or supervising the 
administration of the State plan approved under such Act 
are able and willing to provide if reimbursed for the cost 
thereof pursuant to agreement under subparagraph (E), if 
provided by such staff, and 
"(E) subject to limitations prescribed by the Secretary, 
services which in the judgment of the State agency cannot be 
as^conomically or as effectively provided by the staff of such 
State or local agency and are not otherwise reasonably avail-
able to individuals m need of them, and which are provided, 
Eursuant to agreement with the State agency, by the State 
ealth authority or the State agency or agencies adminis-
tering or supervising the administration of the State plan 
for vocational rehabilitation services approved under the 
Vocational Rehabilitation Act or by any other State agency 
which the Secretary may determine to be appropriate 
(whether provided by its staff or by contract with public 
(local) or nonprofit private agencies); 
except that services described in clause (ii) of subparagraph (D) 
hereof may be provided only pursuant to agreement with such 
State agency or agencies administering or supervising the admin-
istration of the State plan for vocational rehabilitation services so 
approved. The portion of the amount expended for administra-
tion of the State plan to which subparagraph (A) applies and 
the portion thereof to which subparagraphs (B) and (C) apply 
shall be determined in accordance with such methods and proce-
dures as may be permitted by the Secretary." 
Post, p. 195. 
(3) Section 1003(a) of such Act (as amended by section 132(b) 
^o^tf%^iso: 
«f <
^
^
^
i
s Act) is amended by striking out clause (3) and inserting in 
lieu thereof the following: 
" (3) in the case of any State, an amount equal to the sum of the 
following proportions of the total amounts expended during such 
quarter as found necessary by the Secretary of Health, Educa-
tion, and Welfare for the proper and efficient administration of the 
State plan— 
"(A) 75 per centum of so much of such expenditures as 
are for— 
"(i) services which are prescribed pursuant to subsec-
•Post, p. 181. 
tion (c) (1) and are provided (in accordance with the 
next sentence) to applicants for or recipients of aid to 
the blind to help them attain or retain capability for self-
support or self-care, or 
" (ii) other services, specified by the Secretary as likely 
to prevent or reduce dependency, so provided to such ap-
plicants or recipients, or 
76 STAT. ] 
PUBLIC LAW 87-543-JULY 25, 1962 
177 
"(iii) any of the services prescribed pursuant to sub-
section (c) (1), and of the services specified as provided 
Post. p. isi. 
in clause (ii), which the Secretary may specify as ap-
propriate for individuals who, within such period or 
periods as the Secretary may prescribe, have been or are 
likely to become applicants for or recipients of aid to the 
blind, if such services are requested by such individuals 
and are provided to such individuals in accordance with 
the next sentence, or 
" (iv) the training of personnel employed or preparing 
for employment by the State agency or by the local 
agency administering the plan in the political subdivi-
sion; plus 
"(B) one-half of so much of such expenditures (not in-
cluded under subparagraph (A)) as are for services provided 
(in accordance with the next sentence) to applicants for or 
recipients of aid to the blind, and to individuals requesting 
such services who (within such period or periods as the 
Secretary may prescribe) have been or are likely to become 
applicants for or recipients of such aid; plus 
"(C) one-half of the remainder of such expenditures. 
The services referred to in subparagraphs (A) and (B) shall 
include only— 
"(D) services provided by the staff of the State agency, 
or of the local agency administering the State plan in the 
political subdivision: Provided, 
That no funds authorized 
under this title shall be available for services defined as 
vocational rehabilitation services under the Vocational Reha-
bilitation Act (i) which are available to individuals in need 
gg stat. 6S2. 
of them under programs for their rehabilitation carried on 
29 use 31 note. 
under a State plan approved under such Act, or (ii) which 
the State agency or agencies administering or supervising 
the administration of the State plan approved under such 
Act are able and willing to provide if reimbursed for the 
cost thereof pursuant to agreement under subparagraph (E), 
if provided by such staff, and 
(E) subject to limitations prescribed by the Secretary, 
services which in the judgment of the State agency cannot be 
as economically or as effectively provided by the staff of such 
State or local agency and are not otherwise reasonably avail-
able to individuals in need of them, and which are provided, 
pursuant to agreement with the State agency, by the State 
health authority or the State agency or agencies administer-
ing or supervising the administration of the State plan for 
vocational rehabilitation services approved under the Voca-
tional Rehabilitation Act or by any other State agency which 
the Secretary may determine to be appropriate (whether 
provided by its staff or by contract with public (local) or 
nonprofit private agencies); 
except that services described in clause (ii) of subparagraph (D) 
hereof may be provided only pursuant to agreement with such 
State agency or agencies administering or supervising the admin-
istration of the State plan for vocational rehabilitation services 
so approved. 
The portion of the amount expended for adminis-
tration of the State plan to which subparagraph (A) applies and 
the portion thereof to which subparagraphs (B) and (C) apply 
shall be determined in accordance with such methods and pro-
cedures as may be permitted by the Secretary." 
78135 O-63—15 
178 
PUBLIC LAW 87-543-JUIY 25, 1962 
[76 STAT. 
(4) Section 1403(a) of such Act (as amended by section 132(c) of 
Post, p. 195. 
this Act) is amended by striking out clause (3) and inserting in lieu 
pLT^P.'m.- 
thereof the following: 
"(3) in the case of any State, an amount equal to the sum of the 
following proportions of the total amounts expended during such 
quarter as found necessary by the Secretary of Health, Education, 
and Welfare for the proper and efficient administration of the 
State plan— 
"(A) 75 per centum of so much of such expenditures as are 
for— 
"(i) services which are prescribed pursuant to sub-
Post, p. 181. 
section (c) (1) and are provided (in accordance with the 
next sentence) to applicants for or recipients of aid to 
the permanently and totally disabled to help them attain 
or retain capability for self-support or self-care, or 
" (ii) other services, specified by the Secretary as likely 
to prevent or reduce dependency, so provided to such 
applicants or recipients, or 
"(iii) any of the services prescribed pursuant to sub-
section (c) (1), and of the services specified as provided 
in clause (ii), which the Secretary may specify as ap-
propriate for individuals who, within such period or 
periods as the Secretary may prescribe, have been or are 
likely to become applicants tor or recipients of aid to the 
permanently and totally disabled, if such services are 
requested by such individuals and are provided to such 
individuals in accordance with the next sentence, or 
"(iv) the training of personnel employed or preparing 
for employment by the State agency or by the local 
agency administering the plan in the political subdivi-
sion; plus 
"(B) one-half of so much of such expenditures (not in-
cluded under subparagraph (A)) as are for services provided 
(in accordance with the next sentence) to applicants for or 
recipients of aid to the permanently and totally disabled, 
and to individuals requesting such services who (within such 
period or periods as the Secretary may prescribe) have been 
or are likely to become applicants for or recipients of such 
aid; plus 
"(C) one-half of the remainder of such expenditures. 
The services referred to in subparagraphs (A) and (B) shall 
include only— 
"(D) services provided by the staff of the State agency, or 
of the local agency administering the State plan in the politi-
cal subdivision: Provided, That no funds authorized under 
this title shall be available for services defined as vocational 
rehabilitation services under the Vocational Rehabilitation 
68 Stat. 65 2. 
Act (1) which are available to individuals in need of them 
29 use 31 note. 
under programs for their rehabilitation carried on under a 
State plan approved under such Act, or (ii) which the State 
agency or agencies administering or supervising the adminis-
tration of the State plan approved under such Act are able 
and willing to provide if reimbursed for the cost thereof pur-
suant to agreement under subparagraph (E), if provided by 
such staff, and 
"(E) subject to limitations prescribed by the Secretary, 
services which in the judgment of the State agency cannot be 
as economically or as effectively provided by the staff of such 
State or local agency and are not otherwise reasonably avail-
76 STAT. ] 
PUBLIC LAW 87-543-JULY 25, 1962 
179 
68 Stat. 652. 
29 u s e 31 note. 
74 Stat. 987. 
42 u s e 302. 
able to individuals in need of them, and which are provided, 
pursuant to agreement with the State agency, by the State 
health authority or the State agency or agencies administer-
ing or supervising the administration of the State plan for 
vocational rehabilitation services approved under the Vo-
cational Rehabilitation Act or by any other State agency 
which the Secretary may determine to be appropriate 
(whether provided by its staff or by contract with public 
(local) or nonprofit private agencies) ; 
except that services descrioed in clause (ii) of subparagraph (D) 
hereof may be provided only pursuant to agreement with such 
State agency or agencies administering or supervising the ad-
ministration of the State plan for vocational rehabilitation services 
so approved. 
The portion of the amount expended for adminis-
tration of the State plan to which subparagraph (A) applies 
and the portion thereof to which subparagraphs (B) and (C) 
apply shall be determined in accordance with such methods and 
procedures as may be permitted by the Secretary." 
.,. • ; 
Requirements for Full Federal Matching of State Administrative 
Expenditures 
(b) (1) (A) Paragraph (4) of section 3(a) of such Act, as amended 
Ante. p. 173. 
by subsection (a) of this section, is further amended by inserting, in 
the portion thereof which precedes subparagraph (A), "whose State 
plan approved under section 2 meets the requirements of subsection 
(e) (1)" after "any State", and b}^ striking out the period at the end 
of such paragraph and inserting in lieu thereof "; and". 
(B) Such section 3(a) is further amended by inserting at the end 
thereof the following new paragraph: 
"(5) in the case of any State whose State plan approved under 
section 2 does not meet the requirements of subsection (c)(1), 
an amount equal to one-half of the total of the sums expended 
during such quarter as found necessary by the Secretary for the 
proper and efficient administration of the State plan, mcluding 
services referred to in paragraph (4) and provided in accord-
ance with the provisions of such paragraph." 
(C) Section 3 of such Act is further amended by adding at the end 
thereof the following new subsection: 
"(c) (1) In order for a State to qualify for payments under para-
graph (4) of subsection (a), its State plan approved under section 2 
must provide that the State agency shall make available to applicants 
for or recipients of old-age assistance under such State plan at least 
those services to help them attain or retain capability for self-care 
which are prescribed by the Secretary. 
"(2) In the case of any State whose State plan included a provi-
sion meeting the requirements of paragraph (1), but with respect 
to which the Secretary finds, after reasonable notice and opportunity 
for hearing to the State agency administering or supervising the 
administration of such plan, that— 
"(A) the provision has been so changed that it no longer com-
plies with the requirements of paragraph (1), or 
"(B) in the administration of the plan there is a failure to 
comply substantially with such provision, 
the Secretary shall notify such State agency that further payments 
will not be made to the State under paragraph (4) of subsection (a) 
until he is satisfied that there will no longer be any such failure to 
comply. 
Until the Secretary is so satisfied further payments with 
respect to the administration of such State plan shall not be made 
under paragraph (4) of subsection (a) but shall instead be made, 
42 u s e 303. 
Ante, 
p. 173. 
180 
PUBLIC LAW 87-543-JULY 25, 1962 
[76 STAT. 
Ante, p. 175. 
42 use 602. 
42 use 603. 
53 Stat. 1380. 
42 u s e 606. 
75 Stat. 76. 
42 use 608-
Post, p. ia7. 
Ante, p. 176. 
42 use 1202. 
subject to the other provisions of this title, under paragraph (5) of 
such subsection." 
(2) (A) Paragraph (3) of section 403(a) of such Act, as amended 
by subsection (a) of this section, is further amended by inserting, in 
the portion thereof which precedes subparagraph (A), "whose State 
plan approved under section 402 meets the requirements of subsection 
(c) (1)" after "any State", and by striking out the period at the end 
of such paragraph and inserting in lieu thereof "; and". 
(B) Such section 403(a) is further amended by inserting after 
paragraph (3) thereof the following new paragraph: 
" (4) in the case of any State whose State plan approved under 
section 402 does not meet the requirements of subsection (c) (1), 
an amount equal to one-half of the total of the sums expended 
during such quarter as found necessary by the Secretary for the 
proper and efficient administration of the State plan, including 
services referred to in paragraph (3) and provided in accordance 
with the provisions of such paragraph." 
(C) Section 403 of such Act is further amended by adding at the 
end thereof the following new subsection: 
"(c) (1) In order for a State to qualify for payments under para-
graph (3) of subsection (a), its State plan approved under section 
402 must provide that the State agency shall make available at least 
those services to maintain and strengthen family life for children, and 
to help relatives specified in section 406(a) with whom children (who 
are applicants for or recipients of aid to families with dependent 
children) are living to attain or retain capability for self-support or 
self-care, which are prescribed by the Secretary. 
" (2) In the case of any State whose State plan included a provision 
meeting the requirements of paragraph (1), but with respect to which 
the Secretary finds, after reasonable notice and opportunity for hear-
ing to the State agency administering or supervising the administra-
tion of such plan, that— 
"(A) the provision has been so changed that it no longer 
complies with the requirements of paragraph (1), or 
"(B) in the administration of the plan there is a failure to 
comply substantially with such provision, 
the Secretary shall notify such State agency that further payments 
will not be made to the State under paragraph (3) of subsection (a) 
until he is satisfied that there will no longer be any such failure to 
comply. 
Until the Secretary is so satisfied further payments with 
respect to the administration of such State plan shall not be made 
under paragraph (3) of subsection (a) but shall instead be made, 
subject to the other provisions of this title, under paragraph (4) of 
such subsection." 
(D) Section 408(d) of such Act is amended by inserting "and (4)" 
after "section 403 (a) (3)". 
(E) Section 40&(b) of such Act (added by section 105 of this Act) 
is amended by inserting "and (4)" after "section 403(a) (3)". 
(3) (A) Paragraph (3) of section 1003(a) of such Act, as amended 
by subsection (a) of this section, is further amended by inserting, in 
the portion thereof which precedes subparagraph (A), "whose State 
plan approved under section 1002 meets the requirements of subsec-
tion (c) (1)" after "any State", and by striking out the period at the 
end of such paragraph and inserting in lieu thereof "; and". 
(B) Such section 1003(a) is further amended by inserting at the 
end thereof the following new paragraph: 
" (4) in the case of any State whose State plan approved under 
section 1002 does not meet the requirements of subsection (c) (1), 
an amount equal to one-half of the total of the sums expended 
76 STAT. ] 
PUBLIC LAW 87-543-JULY 25, 1962 
181 
during such quarter as found necessary by the Secretary for the 
proper and efficient administration of the State plan, including 
services referred to in paragraph (3) and provided in accordance 
with the provisions of such paragraph." 
(C) Section 1003 of such Act is further amended by adding at the 
42 use 1203. 
end thereof the following new subsection: 
"(c) (1) In order for a State to qualify for payments under para-
graph (3) of subsection (a), its State plan approved under section 
1002 must provide that the State agency shall make available to ap- 
Ante, p. ive-
plicants for or recipients of aid to the blind at least those services 
to help them attain or retain capability for self-support or self-care 
Avhich are prescribed by the Secretary. 
"(2) In the case of any State whose State plan included a provision 
meeting the requirements of paragraph (1), but with respect to which 
post, p. 195. 
the Secretary finds, after reasonable notice and opportunity for hear-
ing to the State agency administering or supervising the administra-
tion of such plan, that— 
"(A) the provision has been so changed that it no longer com-
plies with the requirements of paragraph (1), or 
"(B) in the administration of the plan there is a failure to 
comply substantially with such provision, 
the Secretary shall notify such State agency that further payments 
will not be made to the State under paragraph (3) of subsection (a) 
until he is satisfied that there will no longer be any such failure to 
comply. 
Until the Secretary is so satisfied further payments with 
respect to the administration of such State plan shall not be made 
under paragraph (3) of subsection (a) but shall instead be made, sub-
ject to the other provisions of this title, under paragraph (4) of such 
subsection." 
(4) (A) Paragraph (3) of section 1403(a) of such Act, as amended 
Ante, p. 178. 
by subsection (a) of this section, is further amended by inserting, in 
the portion thereof which precedes subparagraph (A), "whose State 
plan approved under section 1402 meets the requirements of subsection 
42 use i3S2. 
(c) (1)" after "any State", and by striking out the period at the end 
of such paragraph and inserting in lieu thereof "; and". 
(B) Such section 1403(a) is further amended by inserting at the 
42 use 1353. 
end tliereof the following new paragraph: 
"(4) in the case of any State whose State plan approved under 
section 1402 does not meet the requirements of subsection (c) (1), 
an amount equal to one-half of the total of the sums expended 
during such quarter as found necessary by the Secretary for the 
proper and efficient administration of the State plan, including 
services referred to in paragraph (3) and provided in accordance 
with the provisions of such paragraph." 
(C) Section 1403 of such Act is further amended by adding at the 
end thereof the following new subsection: 
"(c) (1) In order for a State to qualify for payments under para-
graph (3) of subsection (a), its State plan approved under section 
1402 must provide that the State agency shall make available to appli-
cants for or recipients of aid to the permanently and totally disabled 
at least those services to help them attain or retain capability for self-
support or self-care which are prescribed by the Secretary. 
"(2) In the case of any State whose State plan included a provision 
meeting the requirements of paragraph (1), but with res])ect to whicli 
Post, p. 195. 
the Secretary finds, after reasonable notice and opportunity for hear-
ing to the State agency administering or supervising the adminis-
tration of such plan, that— 
"(A) the provision has been so changed that it no longer com-
plies with the requirements of paragraph (1), or 
182 
PUBLIC LAW 87-543-JULY 25, 1962 
[76 STAT. 
Ante, 
p. 178. 
Ante, 
p. 181. 
"(B) in the administration of the plan there is a failure to com-
ply substantially with such provision, 
the Secretary shall notify such State agency that further payments 
will not be made to the State under paragraph (3) of subsection (a) 
until he is satisfied that there will no longer be any such failure to 
comply. Until the Secretary is so satisfied further payments with 
respect to the administration of such State plan shall not be made 
under paragraph (3) of subsection (a) but shall instead be made, 
subject to the other provisions of this title, under paragraph (4) of 
such subsection." 
72 Stat. 1052; 
74 Stat. 996. 
42 u s e 721. 
72 Stat. 1053. 
43 u s e 723. 
EXPANSION AND IMPROVEMENT OF CHILD WELFARE SERVICES 
Increase in Authorization of Appropriations 
SEC. 102. (a) Section 521 of the Social Security Act is amended by 
striking out "there is hereby authorized to be appropriated for each 
fiscal year, beginning with the fiscal year ending June 30,1961, the sum 
of $25,000,000" and inserting in lieu thereof "the following sums are 
hereby authorized to be appropriated: $25,000,000 each for the fiscal 
year ending June 30, 1961, and the succeeding fiscal year, $30,000,000 
for the fiscal year ending June 30,1963, $35,000,000 for the fiscal year 
ending June 30, 1964, $40,000,000 each for the fiscal year ending June 
30, 1965, and the succeeding fiscal year, $45,000,000 each for the fiscal 
year ending June 30,1967, and the succeeding fiscal year, and $50,000,-
000 each for the fiscal year ending June 30,1969, and succeeding fiscal 
years". 
Coordination With Dependent Children Program and Extension of 
Child Welfare Services 
(b) (1) Section 523 (a) of such Act is amended by striking out "each 
State with a plan for child-welfare services developed as provided in 
this part an amount equal to the Federal share" and inserting in lieu 
thereof "each State— 
"(1) that has a plan for child-welfare services which has been 
developed as provided in this part and which— 
"(A) provides for coordination between the services pro-
vided under such plan and the services provided for depend-
ent children under the State plan approved under title IV, 
with a view to provision of welfare and related services which 
will best promote the welfare of such children and their 
families, and 
"(B) provides, with respect to day care services (including 
the provision of such care) provided under the plan— 
"(i) for cooperative arrangements with the State 
health authority and the State agency primarily respon-
sible for State supervision of public schools to assure 
maximum utilization of such agencies in the provision of 
necessary health services and education for children 
receiving day care, 
"(ii) for an advisory committee, to advise the State 
public welfare agency on the general policy involved in 
the provision of day care services under the State plan, 
which shall include among its members representatives 
of other State agencies concerned with day care or serv-
ices related thereto and persons representative of pro-
fessional or civic or other public or nonprofit private 
agencies, organizations, or groups concerned with the 
provision of day care, 
76 STAT. ] 
PUBLIC LAW 87-543-JULY 25, 1962 
183 
"(iii) for such safeguards as may be necessary to 
assure provision of day care under the plan only in 
cases in which it is in the best interest of the child and 
the mother and only in cases in which it is determined, 
under criteria established by the State, that a need for 
such care exists; and, in cases in which the family is able 
to pay part or all of the costs of such care, for payment 
of such fees as may be reasonable in the light of such 
ability, and 
" (iv) for giving priority, in determining the existence 
of need for such day care, to members of low-income or 
other groups in the population and to geographical areas 
which have the greatest relative need for extension of 
such day care, and 
" (2) that makes a satisfactory showing that the State is extend-
ing the provision of child-welfare services in the State, with 
priority being given to communities with the greatest need for 
such services after giving consideration to their relative financial 
need, and with a view to making available by July 1, 1975, in all 
political subdivisions of the State, for all children m need thereof, 
child-welfare services provided by the staff (which shall to the 
extent feasible be composed of trained child-welfare personnel) 
of the State public welfare agency or of the local agency partici-
pating in the administration of the plan in the political sub-
division, 
an amount equal to the Federal share". 
(2) Such section 523(a) is further amended by striking out "costs 72 stat. ios3. 
of district, county, or other local child-welfare services" and inserting 
^nti^%Jii2. 
in lieu thereof "costs of State, district, county, or other local child-
welfare services". 
Allotments for Day Care 
(c) (1) Section 522(a) of such Act is amended— 
72 stat. 1053; 
(A) by striking out "The sums appropriated for each fiscal ^'^f^usc^m 
year under section 521" at the beginning of such section and insert- 
42 use 721.' 
ing in lieu thereof "All but $10,000,000 of the total appropriated 
for a fiscal year under section 521, or, if such total is less than 
$35,000,000, all but the excess (if any) of such total over 
$25,000,000,"; 
(B) by striking out "He shall allot to each State $50,000 or, if 
greater, such portion of $70,000 as the amount appropriated midet* 
section 521 for such year bears to the amount authorized to be 
so appropriated" and inserting in lieu thereof "He shall allot to 
each State $70,000 or, if the amount appropriated under section 
521 for such year is less than $25,000,000, lie shall allot to each 
State $50,000 or, if greater, such portion of $70,000 as the amount 
appropriated under such section bears to $25,000,000"; and 
(C) by striking out "the remainder of the sums so appropriated 
for such year" and inserting in lieu thereof "the remainder of the 
sum available for allotment under this subsection for such year". 
(2) Part 3 of title V of such Act is further amended by adding at 
42 use 721-726. 
the end thereof the following new section: 
a DAY CARE 
"SEC. 527. (a) In order to assist the States to provide adequately for 
the care and protection of children whose parents are, for part of the 
day, working or seeking work, or otherwise absent from the home or 
unable for other reasons to provide parental supervision, the portion 
of the appropriation under section 521 for any fiscal year which is not 
184 
PUBUC LAW 87-543-JULY 25, 1962 
[76 STAT. 
72 Stat. 1053. 
allotted under section 522 shall be allotted by the Secretary among the 
42 use 722^ 
States solely for use, under the State plan developed as provided in this 
part, for day care services, including the provision of day care in 
facilities (including private homes) which are licensed by the State, or 
are approved (as meeting the standards established for such licensing) 
by the State agency responsible for licensing facilities of this type, as 
follows: He shall allot to each State an amount which bears the same 
ratio to such portion of the appropriation as the product of (1) the 
population of the State under the age of 21 and (2) the allotment 
42 use 724. 
percentage of such State (as determined under section 524) bears to 
the sum of the corresponding products of all the States, except that 
the allotment of any State as so computed which is less than $10,000 
shall be increased to that amount, the total of the increases thereby re-
quired being derived by proportionately reducing the allotments to 
each of the remaining States (as so computed) having an allotment in 
excess of that amount, but with such adjustments as may be necessary 
to prevent the allotment of any of such remaining States from being 
thereby reduced to less than that amount. 
"(b) The amount of any allotment to a State under subsection (a) 
for any fiscal year which the State certifies to the Secretary will not 
be required for the purposes for which allotted shall be available for 
reallotment from time to time, on such dates as the Secretary may fix, 
to other States which the Secretary determines (1) have need in carry-
ing out such purposes for sums in excess of those previously allotted 
to them under subsection (a), and (2) will be able to use such excess 
amounts during such fiscal year. Such reallotments shall be made on 
the basis of the need for additional funds in carrying out such pur-
poses, after taking into consideration the population under the age of 
twenty-one, and the per capita income of each such State as compared 
with the population under the age of twenty-one, and the per capita 
income of all such States with respect to which such a determination 
by the Secretary has been made. Any amount so reallotted to a State 
shall be deemed part of its allotment under subsection (a)." 
Definition of Child-Welfare Services 
4 2 use 721, 
(d) (1) Section 521 of such Act is further amended by striking out 
Ante, p. 182. 
"public-Welfare services (hereinafter in this title referred to as 'child-
welfare services') for the protection and care of homeless, dependent, 
and neglected children, and children in danger of becoming delin-
quent" and inserting in lieu thereof "child-welfare services". 
(2) Part 3 of title V of such Act is further amended hj adding 
Ante, p. 183. 
after section 527 (added by subsection (c) (2) of this section) the 
following new section: 
"DErlNITION 
"SEC. 528. For purposes of this part, the term 'child-welfare services' 
means public social services which supplement, or substitute for, 
parental care and supervision for the purpose of (1) preventing or 
remedying, or assisting in the solution of problems which may result 
in, the neglect, abuse, exploitation, or delinquency of children, (2) 
protecting and caring for homeless, dependent, or neglected children, 
(3) protecting and promoting the welfare of children of working 
mothers, and (4) otherwise protecting and promoting the welfare of 
children, including the strengthening of their own homes where 
possible or, where needed, the provision of adequate care of children 
away from their homes in foster family homes or day-care or other 
child-care facilities." 
76 STAT.] 
PUBLIC LAW 87-543-JULY 25, 1962 
185 
WELFARE SERVICES FOR EACH CHILI) UNDER DEPENDENT CHILDREN PROGRAM 
SEC. 103. Section 402(a) of the Social Security Act is amended by 
striking out "and" after the semicolon at the end of clause (11), and 
by inserting before the period at the end of clause (12) the following: 
"; and (13) provide for the development and application of a program 
for such welfare and related services for each child who receives aid to 
families with dependent children as may be necessary in the light of 
the particular home conditions and other needs of such child, and pro-
vide for coordination of such programs, and any other services pro-
vided for children under the State plan, with the child-welfare services 
plan developed as provided in part 3 of title V, with a view toward 
providing welfare and related services which will best promote the 
welfare of such child and his family". 
42 u s e 602. 
TECHNICAL AMENDMENTS TO REFLECT EMPHASIS ON REHABILITATION AND 
OTHER SERVICES 
SEC. 104. (a) (1) The heading of title IV of the Social Security Act 
is amended to read as follows: 
42 use 601-608. 
"TITLE IV—GRANTS TO STATES FOR AID AND SERVICES 
TO NEEDY FAMILIES W I T H CHILDREN" 
(2) The heading of section 402 of such Act is amended to read as 
follows: 
42 use 602. 
"STATE PLANS FOR AID AND SERVICES TO NEEDY FAMILIES WITH CHILDREN 
(3) The following provisions of such Act are amended by striking 
out "aid to dependent children" each time it appears and inserting in 
lieu thereof "aid to families with dependent children": 
(A) clauses (4), (7), (8), (9), and (10) of section 402(a); 
(B) section 402(b); 
(C) section 403(b)(2)(B); 
(D) section 406(b) ; 
(E) clause (2) (B) of section 407; 
(F) section 408(b); 
(G) section 408(c); 
(H) section 1002(a) (T); and 
(I) section 1402(a)(7). 
(4) The second sentence of section 401 of such Act is amended by 
striking out "State plans for aid to dependent children" and inserting 
in lieu thereof "State plans for aid and services to needy families with 
children". 
(5) The following provisions of title IV of such Act are amended 
by striking out "plan for aid to dependent children" and inserting in 
lieu thereof "plan for aid and services to needy families with 
children": 
(A) the portion of section 402(a) which precedes clause (1) ; 
and 
(B) the portion of section 404 which precedes clause (1). 
(b) Each State plan approved under title IV of the Social Security 
Act and in effect on the date of the enactment of this Act shall be 
deemed for purposes of such title, without the necessity of any change 
in such plan, to have been conformed with the amendments made by 
subsection (a) of this section. 
(c) (1) The first sentence of section 1 of such Act is amended to 
read as follows: "For the purpose (a) of enabling each State, as far as 
practicable under the conditions in such State, to furnish 
financial 
42 use 603. 
42 use 606. 
42 use 607. 
42 use 608. 
42 use 1202. 
42 use 1352. 
42 use 601. 
42 use 602. 
42 use 604-
74 Stat. 98 7. 
42 use 301. 
186 
PUBLIC LAW 87-543-JULY 25, 1962 
[76 STAT. 
assistance to aged needy individuals, (b) of enabling each State, as far 
as practicable under the conditions in such State, to furnish medical 
assistance on behalf of aged individuals who are not recipients of old-
age assistance but whose income and resources are insufficient to meet 
the costs of necessary medical services, and (c) of encouraging each 
State, as far as practicable under the conditions in such State, to fur-
nish rehabilitation and other services to help individuals referred to 
in clause (a) or (b) to attain or retain capability for self-care, there is 
hereby authorized to be appropriated for each fiscal year a sum suffi-
cient to carry out the purposes of this title." 
42 use 601. 
(2) The first sentence of section 401 of such Act is amended (A) 
by inserting "and rehabilitation" after "financial assistance", and (B) 
by inserting "or retain capability for" after "attain". 
42 use 1201. 
(3) The first sentence of section 1001 of such Act is amended (A) 
by inserting "to furnish rehabilitation and other services" before "to 
lielp such individuals", and (B) by inserting "or retain capability for" 
after "attain". 
42 use 1351. 
(4) The first sentence of section 1401 of such Act is amended (A) 
by inserting "to furnish rehabilitation and other services" before "to 
help such individuals", and (B) by inserting "or retain capability for" 
after "attain". 
COMMUNITY WORK AND TRAINING PROGRAMS 
42 use 601-608. 
SEC. 105. (a) Title IV of the Social Security Act is amended by 
adding at the end thereof the following new section: 
(( 
COMMUNITY WORK AND TRAINING PROGRAMS 
"SEC. 409. (a) For the purpose of assisting the States in encourag-
ing, through community work and training programs of a constructive 
nature, the conservation of work skills and the development of new 
skills for individuals who have attained the age of 18 and are receiving 
aid to families with dependent children, under conditions which are de-
signed to assure protection of the health and welfare of such individ-
uals and the dependent children involved, expenditures (other than 
for medical or any other type of remedial care) for any month with 
respect to a dependent child (including payments to meet the needs of 
any relative or relatives, specified in section 406(a), with whom he is 
living) under a State plan approved under section 402 shall not be 
excluded from aid to families with dependent children because such 
expenditures are made in the form of payments for work performed 
in such month by any one or more of the relatives with whom such 
child is living if such work is performed for the State agency or any 
other public agency under a program (which need not be in effect in 
all political subdivisions of tlie State) administered by or under the 
supervision of such State agency, if there is State financial participa-
tion in such expenditures, and if such State plan includes— 
"(1) provisions which, in the judgment of the Secretary, pro-
vide reasonable assurance that— 
" (A) appropriate standards for health, safety, and other 
conditions applicable to the performance of such work by 
such relatives are established and maintained; 
"(B) payments for such work are at rates not less than 
the minimum rate (if any) provided by or under State law 
for the same type of work and not less than the rates prevail-
ing on similar work in the community; 
"(C) such work is performed on projects which serve a 
useful public purpose, do not result either in displacement 
76 STAT. ] 
PUBLIC LAW 87-543-JULY 25, 1962 
187 
of regular workers or in the performance by such relatives of 
work that would otherwise be performed by employees of 
public or private agencies, institutions, or organizations, and 
(except in cases of projects which involve emergencies or 
which are generally of a nonrecurring nature) are of a type 
which has not normally been undertaken in the past by the 
State or community, as the case may be; 
"(D) in determining the needs of any such relative, any 
additional expenses reasonably attributable to such work will 
be considered; 
"(E) any such relative shall have reasonable opportunities 
to seek regular employment and to secure any appropriate 
training or retraining which may be available; 
"(F) any such relative will, with respect to the work so 
performed, be covered under the State workmen's compensa-
tion law or be provided comparable protection; and 
"(G) aid under the plan will not be denied with respect to 
any such relative (or the dependent child) for refusal by such 
relative to perform any such work if he has good cause for 
such refusal; 
"(2) provision for entering into cooperative arrangements with 
the system of public employment offices in the State looking toward 
employment or occupational training of any such relatives per-
forming work under such program, including appropriate provi-
sion for registration and periodic reregistration of such relatives 
and for maximum utilization of the ]ob placement services and 
other services and facilities of such offices; 
r ; 
"(3) provision for entering into cooperative arrangements with 
' 
the State agency or agencies responsible for administering or 
supervising the administration of vocational education Jind adult 
education m the State, looking toward maximum utilization of 
available public vocational or adult education services and facili-
ties in the State in order to encourage the training or retraining 
of any such relatives performing work under such program and 
otherwise assist them in preparing for regular employment; 
"(4) provision foi' assuring appropriate arrangements for the 
care and protection of the child during the absence from the home 
of any such relative performing work under such program in 
order to assure that such absence and work will not be mimical 
to the welfare of the child; 
"(5) provision that there will be no adjustment or recovery by 
the State or any political subdivision thereof on account of any 
payments which are correctly made for such work; and 
"(6) such other provisions as the Secretary finds necessary to 
assure that the operation of such program will not interfere 
with achievement of the objectives set forth in section 401. 
42 use eoi. 
"(b) In the case of any State which makes expenditures in the 
form described in subsection (a) under its State plan approved under 
section 402, the proper and efficient administration of the Stat^ plan, 
42 use 602, 
for purposes of section 403(a) (3), may not include the cost of making ^°^ 
or acquiring materials or equipment in connection with the work per-
formed under a program referred to in subsection (a) or the cost of 
supervision of work under such program, and may include only such 
other costs attributable to such programs as are permitted by the 
Secretary." 
(b) The Secretary shall submit to the President, for transmission to 
Report to presi-
the Congress prior to January 1,1967, a full report of the administra-
tion of the provisions of tlie amendment made by subsection (a), 
including the experiences of each of the States in paying for work 
dent and Con-
gress. 
188 
PUBLIC LAW 87-543-JULY 25, 1962 
[76 STAT. 
under community work and training programs under the provisions of 
their respective State plans which are in accord with such amend-
ment, together with his recommendations as to continuation of and 
modifications in such amendment. 
(c) Expenditures (other than for medical or any other type of 
remedial care) made at any time during the period beginning July 1, 
1961, and ending w^ith the close of September 30, 1962, which would 
have been considered aid to dependent children or aid to families with 
dependent children, as the case may be, under a State plan approved 
42 use 601-608. Under title IV of the Social Security Act except that they were made 
in the form of payments for work performed by a relative with whom 
42 use 606,607. a dependent child (as defined in section 406 or 407 of such Act) is 
living, shall be deemed to have been made under a State plan ap-
proved under title IV of the Social Security Act and to constitute aid 
to dependent children or aid to families with dependent children, as 
the case may be, if (1) such expenditures were made under condi-
Antt), p. 186. 
tions which meet the requirements set forth in section 409 of such Act 
(added by subsection (a) of this section), other than subparagraphs 
(D) and (F) of subsection (a) (1) thereof and other than the require-
ment that the State agency (administering or supervising the 
administration of such plan) be administering or supervising the 
administration of the program under which such work is performed, 
and (2) at the time such expenditures were made, such State plan met 
the requirements of paragraphs (1), (2), and (3) of section 407 of the 
Social Security Act. The costs of administration of any such State 
plan may include, with respect to expenditures described in the pre-
ceding sentence, only such costs as are permitted in accordance with the , 
provisions of subsection (b) of such section 409. 
TNCr:NTIVES FOR ETIPLOYMENT THROUGH CONSIDERATION OF EXPENSES IN 
EARNING INCOME, AND PROVISION FOR FUTURE NEEDS OF DEPENDENT 
CHILDREN 
SEC. 106. (a) (1) Section 2(a) of the Social Security Act is amended 
by inserting before the semicolon at the end of subparagraph (A) of 
paragraph (10) ", as well as any expenses reasonably attributable to 
the earning of any such income". 
(2) Section 1002(a) (8) of such Act is amended by inserting before 
the first semicolon ", as well as any expenses reasonably attributable to 
the earning of any such income''. 
(3) Section 1402(a) (8) of such Act is amended by inserting before 
the semicolon at the end thereof ", as well as any expenses reasonably 
attributable to the earning of any such income". 
(b) Section 402(a) (7) of such Act is amended to read as follows: 
"(7) provide that the State agency sliall, in determining need, take 
into consideration any other income and resources of any child or rela-
tive claiming aid to families with dependent children, as well as any 
expenses reasonably attributable to the earning of any such income; 
except that, in making such determination, the State agency may, 
subject to limitations prescribed by the Secretary, permit all or any 
portion of the earned or other income to be set aside for future iden-
tifiable needs of a dependent child;". 
USE OF PAYMENTS FOR BENEFIT or CHILD 
SEC. 107. (a) Section 405 of the Social Security Act is amended to 
read as follows: 
"USE OF PAYMENTS FOR BENEFIT OF CHILD 
"SEC. 405. Whenever the State agency has reason to believe that 
any payments of aid to families with dependent children made with 
respect to a child are not being or may not be used in the best inter-
ests of the child, the State agency may provide for such counseling 
Ante, p. 187. 
74 Stat. 987. 
42 u s e 302. 
42 u s e 1202. 
64 Stat. 555. 
42 u s e 1352. 
42,use 602. 
42 u s e 60S. 
76 STAT. ] 
PUBLIC LAW 87-543-JULY 25, 1962 
189 
and guidance services with respect to the use of such payments and 
the management of other funds by the relative receiving such pay-
ments as it deems advisable in order to assure use of such payments 
in the best interests of such child, and may provide for advising such 
relative that continued failure to so use such payments will result in 
substitution therefor of protective payments as provided under sec-
tion 406(b)(2), or in seeking appointment of a guardian or legal infra. 
representative as provided in section 1111, or in the imposition of 
72 stat. 1052-
criminal or civil penalties authorized under State law if it is deter- 
^^ ^^^ ^^^^' 
mined by a court of competent jurisdiction that such relative is not 
using or has not used for the benefit of the child any such payments 
made for that purpose; and the provision of such services or advice 
by the State agency (or the taking of the action specified in such 
advice) shall not serve as a basis for withholding funds from such 
State under section 404 and shall not prevent such payments with 
42 use 604. 
respect to such child from being considered aid to families with 
dependent children." 
(b) Section 404(b) of such Act is amended by inserting before the 
7s stat. 77. 
period at the end thereof the following: "; nor shall any such pay- 
*^ "^^ ^°'^-
ment be withheld for any period beginning on or after such date by 
reason of any action taken pursuant to such a statute if provision is 
otherwise made pursuant to a State statute for adequate care and 
assistance with respect to such child". 
PROTECTIVE PAYMENTS UNDER DEPENDENT CHILDREN PROGRAM 
SEC. 108. (a) Section 406(b) of the Social Security Act is amended 
42 use eoe. 
by inserting " (1)" after "includes" and by inserting before the semi-
colon at the end thereof: ", and (2) payments with respect to any 
dependent child (including payments to meet the needs of the relative, 
and the relative's spouse, with whom such child is living) which do 
not meet the preceding requirements of this subsection, but which 
would meet such requirements except that such payments are made 
to another individual who (as determined in accordance with stand-
ards prescribed by the Secretary) is interested in or concerned with 
the welfare of such child and relative, but only with respect to a State 
whose State plan approved under section 402 includes provision for— 
42 use 602. 
"(A) determination by the State agency that the relative of the 
child with respect to whom such payments are made has such 
inability to manage funds that making payments to him would 
be contrary to the welfare of the child and, therefore, it is neces-
sary to provide such aid with respect to such child and relative 
through payments described in this clause (2); 
"(B) making such payments only in cases in which such pay- 
s 
ments will, under the rules otherwise applicable under the State 
plan for determining need and the amount of aid to families with 
dependent children to be paid (and in conjunction with other 
income and resources), meet all the need of the individuals with 
respect to whom such payments are made ; 
(C) undertaking and continuing special efforts to develop 
greater ability on the part of the relative to manage funds in 
such manner as to protect the welfare of the family; 
"(D) periodic review by such State agency of the determina-
tion under clause (A) to ascertain whether conditions justifying 
such determination still exist, with provision for termination of 
such payments if they do not and for seeking judicial appoint-
ment of a guardian or other legal representative, as described in 
section 1111, if and when it appears that the need for such pay- 
42 use 1311. 
ments is continuing, or is likely to continue, beyond a period 
specified by the Secretary; 
190 
PUBLIC LAW 87-543-JULY 25, 1962 
[76 STAT. 
75 Stat. 76. 
42 u s e 608. 
Ante. 
p. 174, 
and Intra. 
Ante, 
p. 189. 
Ante, 
pp. 174, 
175. 
Ante, p. 174. 
Ante, 
p. 175. 
Report to Presi-
dent and Congress. 
"(E) aid in the form of foster home care in behalf of children 
described in section 408(a); and 
"(F) opportunity for a fair hearing before the State agency 
on the determination referred to in clause (A) for any individual 
with respect to whom it is made". 
(b) Section 403(a) of such Act, as amended by the other provisions 
of this Act, is further amended by adding at the end thereof (after 
and below the last paragraph thereof) the following new sentence: 
"The number of individuals with respect to whom payments described 
in section 406(b) (2) are made for any month, who may be included 
as recipients of aid to families with dependent children for purposes 
of paragraj)h (1) or (2), may not exceed 5 per centum of the number 
of other recipients of aid to families with dependent children for such 
month." 
(c) Paragraph (1) (A) of such section 403(a) (as amended by sec-
tion 101(a) (2) of this Act) is amended by inserting immediately after 
"remedial care" the following: ", plus (iii) the number of individuals, 
not counted under clause (i) or (li), with respect to whom payments 
described in section 406(b) (2) are made in such month and included 
as expenditures for purposes of this paragraph or paragraph (2)". 
(d) The Secretary shall submit to the President, for transmission 
to the Congress prior to January 1,1967, a full report of the adminis-
tration of the provisions of the amendments made by this section, in-
cluding the experiences of each of the States in making protective pay-
ments under the provisions of their respective State plans which are in 
accord with such amendments, together with his recommendations as 
to continuation of and modifications in such amendments. 
Ante, 
p. 189. 
42 u s e 606. 
75 Stat. 75. 
42 u s e 607. 
42 u s e 1301-
1313. 
AID FOR BOTH PARENTS OF DEPENDENT CHILD 
SEC. 109. Section 406(b) of the Social Security Act, as amended by 
section 108 of this Act, is amended by inserting "(and the spouse of 
such relative if living with him and if such relative is the child's par-
ent and the child is a dependent child by reason of the physical or 
mental incapacity of a parent or is a dependent child under section 
407)" after "relative with whom any dependent child is living" in 
clause (1) thereof. 
PART B—IMPROVEMENT IN ADMINISTRATION THROUGH DEMONSTRA-
TIONS, TRAINING, AND PUBLIC ADVISORY GROUPS 
ADVISORY COUNCIL ON PUBLIC WELFARE 
SEC. 121. Title X I of the Social Security Act is amended by adding 
at the end thereof the following new section: • 
"API'OINTMENT OF ADVISORY COUNCIL AND OTHER ADVISORY GROUPS 
"SEC. 1114. (a) The Secretary shall, during 1964, appoint an Ad-
visory Council on Public Welfare for the purpose of reviewing the 
administration of the public assistance and child welfare services pro-
grams for which funds are appropriated pursuant to this Act and 
making recommendations for improvement of such administration, 
and reviewing the status of and making recommendations with respect 
to the public assistance programs for which funds are so appropriated, 
especially in relation to the old-age, survivors, and disability insur-
ance program, with respect to the fiscal capacities of the States and 
the Federal Government, and with respect to any other matters bear-
ing on the amount and proportion of the Federal and State shares in 
the public assistance and child welfare services programs. 
76 STAT. ] 
PUBLIC LAW 87-543-JULY 25, 1962 
191 
"(b) The Council shall be appointed by the Secretary without re-
gard to the civil-service laws and shall consist of twelve persons who 
shall, to the extent possible, be representatives of employers and em-
ployees in equal numbers, representatives of State or Federal agencies 
concerned with the administration or financing of the public assistance 
and child welfare services programs, representatives of nonprofit 
private organizations concerned with social welfare programs, other 
persons with special knowledge, experience, or qualifications with 
respect to such programs, and members of the public. 
" (c) The Council is authorized to engage such technical assistance 
as may be required to carry out its functions, and the Secretary shall, 
in addition, make available to the Council such secretarial, clerical, 
and other assistance and such pertinent data prepared by the Depart-
ment of Health, Education, and Welfare as it may require to carry 
out such functions. 
"(d) The Council shall make a report of its findings and recom-
mendations (including recommendations for changes in the provisions 
of the Social Security Act) to the Secretary, such report to be sub-
mitted not later than July 1, 1966, after which date such Council 
shall cease to exist. 
"(e) The Secretary shall also from time to time thereafter appoint 
an Advisory Council on Public Welfare, with the same functions and 
constituted in the same manner as prescribed for the Advisory Council 
in the preceding subsections of this section. Each Council so appointed 
shall report its findings and recommendations, as prescribed in sub-
section (d), not later than July 1 of the second year after the year 
in which it is appointed, after which date such Council shall cease to 
exist. 
"(f) The Secretary may also appoint, without regard to the civil-
service laws, such advisory committees as he may deem advisable to 
advise and consult with him in carrying out any of his functions under 
this Act. 
The Secretary shall report to the Congress annually on the 
number of such committees and on the membersnip and activities of 
each such committee. 
"(g) Members of the Council or of any advisory committee 
appointed under this section who are not regular full-time employees 
of the United States shall, while serving on business of the Council 
or anv such committee, be entitled to receive compensation at rates 
fixed by the Secretary, but not exceeding $75 per day, including travel 
time; and while so serving away from their homes or regular places of 
business, they may be allowed travel expenses, including per diem in 
lieu of subsistence, as authorized by section 5 of the Administrative 
Expenses Act of 1946 (5 U.S.C. 73b-2) for persons in Government 
service employed intermittently. 
"(h)(1) Any member of the Council or any advisory committee 
appointed under this Act, who is not a regular full-time employee of 
the United States, is hereby exempted, with respect to such appoint-
ment, from the operation of sections 281, 283, and 1914 of title 18 of 
the United States Code, and section 190 of the Revised Statutes (5 
U.S.C. 99), except as otherwise specified in paragraph (2) of this 
subsection. 
"(2) The exemption granted by paragraph (1) shall not extend— 
"(A) to the receipt or payment of salary in connection with 
the appointee's Government service from any source other than 
the employer of the appointee at the time of his appointment, or 
"(B) during the period of such appointment, to the prosecu-
tion or participation in the prosecution, by any person so ap-
pointed, of any claim against the Government involving any 
matter with which such person, during such period, is or was 
directly connected by reason of such appointment.'' 
Report, 
Terminatloa. 
49 Stat. 620. 
42 u s e 1305. 
Appointment. 
Report. 
Tennination. 
Advisory com-
mittees. 
Report to Con-
gress. 
Compensation. 
75 Stat. 339, 340. 
Conflict of in-
terest. 
62 Stat. 697, 793. 
192 
PUBLIC LAW 87-543-JULY 25, 1962 
[76 STAT. 
WAIVER OF STATE PLAN REQUIREMENTS FOR DEMONSTRATIONS 
42 use 1301- 
SEC. 122. Title X I of the Social Security Act is amended by adding 
after section 1114 (added by section 121 of this Act) the following 
new section: 
" D E M O N S T R A T I O N PROJECTS 
"SEC. 1115. In the case of any experimental, pilot, or demonstration 
project which, in the judgment of the Secretary, is likely to assist in 
42 use 301-306, promoting the objectives of title I, IV, X, XIV, or XVI in a State 
601-608, 1201- 
f. 
Gfof-io 
1206, 1351-1355, 
"^ O t a t e S 
Post, p. 197. 
"(a) the Secretary may waive compliance with any of the re-
42 use 302,602, 
quirements of section 2, 402, 1002, 1402, or 1602, as the case may 
p.^*i98.^^^^' '*"**' 
"^•> to the extent and for the period he finds necessary to enable 
such State or States to carry out such project, and 
"(b) costs of such project which would not otherwise be in-
cluded as expenditures under section 3, 403, 1003, 1403, or 1603, 
as the case may be, and which are not included as part of the 
70 Stat. 851. 
costs of projects under section 1110, shall, to the extent and for 
use 1310. 
^j^^ period prescribed by the Secretary, be regarded as expendi-
tures under the State plan or plans approved under such title, 
or for administration of such State plan or plans, as may be 
appropriate. 
In addition, not to exceed $2,000,000 of the aggregate amount appro-
priated for payments to States under such titles for any fiscal year 
ending prior to July 1,1967, shall be available, under such terms and 
conditions as the Secretary may establish, for payments to States to 
cover so much of the cost of such projects as is not covered by pay-
ments under such titles and is not included as part of the cost of 
projects for purposes of section 1110." 
INCREASE I N ADEQUATELY TRAINED WELFARE PERSONNEL 
SEC. 123. (a) Subsection (a) of section 705 of the Social Security 
70 Stat. 851; 
Act is amended by striking out "for the fiscal year ending June 30, 
^'4?use^ 906 
1958, the sum of $5,000,000, and for each of the five succeeding fiscal 
years such sums as the Congress may determine" and inserting in lieu 
thereof the following: "for the fiscal year ending June 30, 1963, the 
sum of $3,500,000, and for each fiscal year thereafter the sum of 
$5,000,000". 
70 Stat. 851. 
(h) Subsection (h) of such section is amended to read as follows: 
" (b) Such portion of the sums appropriated pursuant to subsection 
(a) for any fiscal year as the Secretary may determine, but not in 
excess of $1,000,000 in the case of the fiscal year ending June 30,1963, 
and $2,000,000 in the case of any fiscal year thereafter, shall be available 
for carrying out subsection (f). From the remainder of the sums so 
appropriated for any fiscal year, the Secretary shall make allotments 
to the States on the basis of (1) population. (2) relative need for 
trained public welfare personnel, particularly tor personnel to provide 
self-support and self-care services, and (3) financial need." 
(c) Such section 705 is further amended by adding at the end thereof 
the following new subsection: 
"(f) (1) The portion of the sums appropriated for any fiscal year 
which is determined by the Secretary under the first sentence of sub-
section (b) to be available for carrying out this subsection shall be 
available to enable him to provide (A) directljr or through grants to 
or contracts with public or nonprofit private institutions of higher 
learning, for training personnel who are employed or preparing for 
employment in the administration of public assistance programs, (B) 
directly or through grants to or contracts with public or nonprofit 
76 STAT. ] 
PUBLIC LAW 87-543-JULY 25, 1962 
193 
private agencies or institutions, for special cQurses of study or seminars 
of short duration (not in excess of one year) for training of such 
personnel, and (C) directlj^ or through grants to or contracts with 
fjublic or nonprofit private institutions of higher learning, for estab-
lishing and niaintaming fellowships or traineeships for such per-
sonnel at such institutions, with such stipends and allowances as may 
be permitted by the Secretary. 
"(2) Payments under paragraph (1) may be made in advance on 
the basis of estimates by the Secretary, or may be made by way of 
reimbursement, and adjustments may be made in future payments un-
der this subsection to take account of overpayments or underpayments 
in amounts previously paid. 
"(3) The Secretary may, to the extent he finds such action to be 
necessary, prescribe requirements to assure that any individual will 
repay the amount of his fellowship or traineeship received under this 
subsection to the extent such individual fails to serve, for the period 
prescribed by the Secretary, with a State or political subdivision 
thereof, or with the Federal Government, in connection with adminis-
tration of any State or local public assistance program. The Secretary 
may relieve any individual of his obligation to so repay, in whole or 
in part, whenever and to the extent that requirement of such repay-
ment would, in his judgment, be inequitable or would be contrary to 
the purposes of any of the public welfare programs established by 
this Act." 
(d) (1) Section 526(a) of such Act is amended by inserting before 
74 stat. 997. 
the period at the end thereof "; and for grants by the Secretary to 
^^ ^^^ ^^^" 
public or other nonprofit institutions of higher learning for special 
projects for training personnel for work in the field of child welfare, 
including traineeships with such stipends and allowances as may be 
permitted by the Secretary". 
(2) The heading of section 526 of such Act is amended by inserting 
", TRAINING," after "RESEARCH". 
PART C—IMPROVEMENT OF PUBLIC WEI^FARE PROGRAMS THROUGH 
EXTENSION OF TEMPORARY PROVISIONS AND INCREASE IN FEDERAL 
SHARE OF PUBLIC ASSISTANCE PAYMENTS 
EXTENSION OF AID WITH RESPECT TO DEPENDENT CHILDREN OF UNEMPLOYED 
P A R E N T S OR IN FOSTER FAMILY HOMES 
Extension With Respect to Children of Unemployed Parents 
SEC. 131. (a) So much of the first sentence of section 407 of the 
Social Security Act as precedes paragraph (1) thereof is amended 
75 stat. 7s. 
by striking out "1962" and inserting in lieu thereof "1967". 
*^ ^^^ ^"^• 
Extension With Respect to Foster Family Home Care 
(b) So much of the first sentence of section 408 of such Act as 
precedes paragraph (a) thereof is amended by striking out ", and 
42 use eos. 
ending with the close of June 30, 1962". 
INCREASE IN FEDERAL SHARE OF PUBLIC ASSISTANCE PAYMENTS 
SEC. 132. (a) Paragraphs (1) and (2) of section 3(a) of the Social 
Security Act are amended to read as follows: 
72 stat. 1047; 
"(1) in the case of any State other than Puerto Rico, the Virgin ^^4f*usc'3o'3. 
Islands, and Guam, an amount equal to the sum of the following 
proportions of the total amounts expended during such quarter as 
old-age assistance under the State plan (including expenditures 
42 use 1301. 
194 
PUBLIC LAW 87-543-JULY 25, 1962 
[76 STAT. 
for insurance premiums for medical or any other type of remedial 
care or the cost thereof) — 
"(A) 2%g of such expenditures, not counting so much of 
any expenditure with respect to any month as exceeds the 
product of $35 multiplied by the total number of recipients 
of old-age assistance for such month (which total number, 
for purposes of this subsection, means (i) the number of 
individuals who received old-age assistance in the form of 
money payments for such month, plus (ii) the number of 
other individuals with respect to whom expenditures were 
made in such month as old-age assistance in the form of 
medical or any other type of remedial care); plus 
"(B) the Federal percentage (as defined in section 1101 
72 stj»t. loso. 
(a) (8)) of the amount by which such expenditures exceed the 
"'"' *'"* 
maximum which may be counted under clause (A), not 
counting so much of any expenditure with respect to any 
month as exceeds the product of $70 multiplied by the total 
number of such recipients of old-age assistance for such 
month; plus 
"(C) the larger of the following: (i) the Federal medical 
percentage (as defined in section 6(c)) of the amount by 
which such expenditures exceed the maximum which may 
be counted under clause (B), not counting so much of any 
expenditure with respect to any month as exceeds (I) the 
product of $85 multiplied by the total number of such recipi-
ents of old-age assistance for such month, or (II) if smaller, 
the total expended as old-age assistance in the form of medi-
cal or any other type of remedial care with respect to such 
month plus the product of $70 multiplied by such total num-
ber of such recipients, or (ii) 15 per centum of the total of 
'I; 
the sums expended during such quarter as old-age assistance 
under the State plan in the form of medical or any other type 
of remedial care, not counting so much of any expenditure 
with respect to any month as exceeds the product of $15 
multiplied by the total number of such recipients of old-age 
assistance for such month; 
"(2) in the case of Puerto Rico, the Virgin Islands, and Guam, 
an amount equal to— 
"(A) one-half of the total of the sums expended during 
such quarter as old-age assistance under the State plan (in-
cluding expenditures for insurance premimns for medical or 
any other type of remedial care or the cost thereof), not 
counting so much of any expenditure with respect to any 
month as exceeds $37.50 multiplied by the total number of 
recipients of old-age assistance for such month; plus 
"(B) the larger of the following amounts: (i) one-half 
of the amount by which such expenditures exceed the maxi-
mum which may be counted under clause (A), not counting 
'^^ 
so much of any expenditure with respect to any month as 
'* 
' 
exceeds (I) the product of $45 multiplied by the total num-
ber of such recipients of old-age assistance for such month, 
or (II) if smaller, the total expended as old-age assistance 
in the form of medical or any other type of remedial care 
.
^ 
with respect to Such month plus the product of $37.50 multi-
plied by the total number of such recipients, or (ii) 15 per 
centum of the total of the sums expended during such quarter 
as old-age assistance under the State plan in the form of med-
ical or any other type of remedial care, not counting so much 
of any expenditure with respect to any month as exceeds the 
76 STAT. ] 
PUBLIC LAW 87-543-JULY 25, 1962 
195 
, .. 
product of $7.50 multiplied by the total number of such 
recipients of old-age assistance for such month;". 
(b) So much of section 1003(a) of such Act as precedes clause (3) 
72 stat. 1049; 
is amended to read as follows: 
^^42*u*sc I1203. 
"(a) From the sums appropriated therefor, the Secretary of the 
Treasury shall pay to each State which has an approved plan for aid 
to the blind, for each quarter, beginning with the quarter commencing 
October 1, 1958— 
" (1) in the case of any State other than Puerto Rico, the Virgin 
Islands, and Guam, an amount equal to the sum of the following 
proportions of the total amounts expended during such quarter 
as aid to the blind under the State plan (including expenditures 
for insurance premiums for medical or any other type of remedial 
care or the cost thereof) — 
"(A) 2%g of such expenditures, not counting so much of 
any expenditure with respect to any month as exceeds the 
product of $35 multiplied by the total number of recipients 
of aid to the blind for such month (which total number, for 
purposes of this subsection, means (i) the number of in-
dividuals who received aid to the blind in the form of money 
• 
payments for such month, plus (ii) the number of other in-
/ 
dividuals with respect to whom expenditures were made in 
such month as aid to the blind in the form of medical or any 
other type of remedial care); plus 
. > 
"(B) the Federal percentage of the amount by which such 
expenditures exceed the maximum which may be counted 
under clause (A), not counting so much of any expenditure 
with respect to any month as exceeds the product of $70 
multiplied by the total number of such recipients of aid to 
the blind for such month; and 
, 
"(2) in the case of Puerto Rico, the Virgin Islands, and Guam, 
an amount equal to one-half of the total of the sums expended 
. . . 
'\ 
during such quarter as aid to the blind under the State plan (in-
cluding expenditures for insurance premiums for medical or any 
other type of remedial care or the cost thereof), not counting so 
much of any expenditure with respect to any month as exceeds 
$37.50 multiplied by the total number of recipients of aid to the 
blind for such month; and". 
(c) So much of section 1403(a) of such Act as precedes clause (3) 
42 use i3S3. 
is amended to read as follows: 
"(a) From the sums appropriated therefor, the Secretary of the 
Treasury shall pay to each State which has an approved plan for aid 
to the permanently and totally disabled, for each quarter, beginning 
with the quarter commencing October 1,1958— 
" (1) in the case of any State other than Puerto Rico, the Virgin 
Islands, and Guam, an amount equal to the sum of the following 
proportions of the total amounts expended during such quarter as 
aid to the permanently and totally disabled under the State plan 
(including expenditures for insurance premiums for medical or 
any other type of remedial care or the cost thereof)— 
"(A) 2%g of such expenditures, not counting so much of 
any expenditure with respect to any month as exceeds the 
product of $35 multiplied by the total number of recipients 
of aid to the permanently and totally disabled for ^uch month 
(which total number, for purposes of this subsection, means 
(i) the number of individuals who received aid to the perma-
nently and totally disabled in the form of money payments 
for such month, plus (ii) the number of other individuals 
with respect to whom expenditures were made in such month 
196 
PUBLIC LAW 87-543-JULY 25, 1962 
[76 STAT. 
as aid to the pennaiieiitly and totally disabled in the form 
of medical or any other type of remedial care); plus 
"(B) the Federal percentage of the amount by which such 
expenditures exceed the maximum which may be counted 
under clause (A), not counting so much of any expenditure 
with respect to any month as exceeds the product of $70 
multiplied by the total number of such recipients of aid to 
the permanently and totally disabled for such month; and 
"(2) in the case of Puerto Rico, the Virgin Islands, and Guam, 
an amount equal to one-half of the total of the sums expended 
during such quarter as aid to the permanently and totally dis-
abled under the State plan (including expenditures for insurance 
premiums for medical or any other type of remedial care or the 
cost thereof), not counting so much of any expenditure with 
respect to any month as exceeds $37.50 multiplied by the total 
number of recipients of aid to the permanently and totally dis-
abled for such month; and". 
Repeal. 
(d) Sect^on 303(d) of the Social Security Amendments of 1961 
75 Stat. 143.78. (PubHc 1M\ 87-64), and section 6 of the Act of May 8, 1961 (Public 
notes"^'' " ° ' """* Law 87-31), are repealed. 
(e) Section 303(e) of the Social Security Amendments of 1961 
42 use 303note. (Public Law 87-64) is amended by striking out "July 1, 1962" and 
inserting in lieu thereof "October 1,1962". 
EXTENSION OF ASSISTANCE TO REPATRIATED AMERICAN CITIZENS 
42 use 1313. 
SEC. 133. Subsection (d) of section 1113 of the Social Security Act 
is amended by striking out "1962" and inserting in lieu thereof "1964". 
REFUSAL OF UNEMPLOYED PARENT TO ACCEPT RETRAINING 
42 use 607. 
SEC 134. Paragraph (3) of section 407 of the Social Security Act 
is amended by inserting " ( A ) " after "provision" and by inserting 
before the period at the end thereof ", and (B) for denying aid to 
families with dependent children to any such child or relative if, and 
for as long as, the unemployed parent refuses without good cause to 
undergo any such retraining". 
FEDERAL PAYMENTS FOR FOSTER CARE IN CHILD-CARE INSTITUTIONS 
SEC. 135. (a) Clause (3) of paragraph (a) of section 408 of the 
42 use 608. 
Social Security Act is amended by insertmg "or child-care institution" 
after "foster family home". 
(b) Paragraph (b) of such section is amended by striking out "of 
this section m the foster family home of any individual" and inserting 
in lieu thereof the following: "of this section— 
"(1) in the foster family home of any individual, whether the 
payment therefor is made to such individual or to a public or 
nonprofit private child-placement or child-care agency, or 
"(2) in a child-care institution, whether the payment therefor 
is made to such institution or to a public or nonprofit private 
child-placement or child-care agency, but subject to limitations 
prescribed by the Secretary with a view to including as 'aid to 
families with dependent children' in the case of such foster care 
in such institutions only those items which are included in such 
term in the case of foster care in the foster family home of an 
individual". 
(c) Clauses (1) and (2) of paragraph (f) of such section are each 
amended by inserting "or child-care institution" after "foster family 
home". 
76 STAT. ] 
PUBLIC LAW 87-543-JULY 25, 1962 
197 
(d) The last sentence of such section is amended by inserting before 
the period at the end thereof the following: "; and the term 'child-care 
institution' means a nonprofit private child-care institution which is 
licensed by the State in which it is situated or has been approved, by 
the agency of such State responsible for licensing or approval of insti-
tutions of this type, as meeting the standards established for such 
licensing". 
(e) The amendments made by the preceding provisions of this sec-
tion shall be effective only in the case of expenditures under a State 
plan approved under title IV of the Social Security Act made during 
42 use eoi-eos. 
the period beginning October 1, 1962, and ending with the close of 
September 30,1964. 
CERTAIN STATE PLANS NOT MEETING INCOME AND RESOURCES REQUIRE-
MENTS FOR THE BLIND 
SEC. 136. (a) Section 1002(b) of the Social Security Act is amended 
49 stat, 645. 
by adding at the end thereof (after and below paragraph (2)) the 
'^^ "^^ ^^°^* 
following new sentence: 
"In the case of any State (other than Puerto Rico and the Virgin 
Islands) which did not have on January 1,1949, a State plan for aid to 
the blind approved under this title, the Secretary shall approve a plan 
of such State for aid to the blind for purposes of this title, even though 
it does not meet the requirements 01 clause (8) of subsection (a) of 
74 stat. 997. 
this section, if it meets all other requirements of this title for an 
^ "^^ ^^°^' 
approved plan for aid to the blind; but payments under section 1003 
shall be made, in the case of any such plan, only with respect to 
expenditures thereunder which would be included as expenditures for 
the purposes of section 1003 under a plan approved under this section 
42 use 1203. 
withort regard to the provisions of this sentence." 
(b) Section 344 of the Social Security Act Amendments of 1950 is 
64 stat. 5S4; 
I'pnpalpd 
74 stat. 995. 
lepedieu. 
42 use 1202a 
and note. 
PART D—SIMPLIFICATION OF CATEGORIES 
OPTIONAL C O M B I N E D STATE PLAN FOR AGED, BLIND, AND DISABLED 
SEC. 141. (a) The Social Security Act is amended by adding after 
title XV the following new title: 
68 stat. 1130. 
42 u s e 1361-
"TITLE XVI—GRANTS TO STATES FOR AID TO THE ^^^^' 
AGED, BLIND, OR DISABLED, OR FOR SUCH AID AND 
MEDICAL ASSISTANCE FOR THE AGED 
"APPROPRIATION 
"SEC. 1601. For the purpose (a^ of enabling each State, as far as 
practicable under the conditions in such State, to furnish 
financial 
assistance to needy individuals who are 65 years of age or over, are 
blind, or are 18 years of age or over and permanently and totally 
disabled, (b) of enabling each State, as far as practicable under the 
conditions in such State, to furnish medical assistance on behalf of 
individuals who are 65 years of age or over and who are not recipients 
of aid to the aged, blind, or disabled but whose income and resources 
are insufficient to meet the costs of necessarj medical services, and (c) 
of encouraging each State, as far as i)racticable under the conditions 
in such State, to furnish rehabilitation and other services to help 
indiA^iduals referred to in clause (a) or (b) to attain or retain capa-
bility for self-support or self-care, there is hereby authorized to be 
198 
PUBLIC LAW 87-543-JULY 25, 1962 
[76 STAT 
appropriated for each fiscal year a sum sufficient to carry out the 
purposes of this title. The sums made available under this section shall 
be used for making payments to States which have submitted, and 
had approved by the Secretary of Health, Education, and Welfare, 
State plans for aid to the aged, blind, or disabled, or for aid to the 
aged, blind, or disabled and medical assistance for the aged. 
"STATE PLANS FOR AID TO THE AGED, BLIND, OR DISABLED, OR FOR SUCH 
AID AND MEDICAL ASSISTANCE FOR THE AGED 
"SEC. 1602. (a) A State plan for aid to the aged, blind, or disabled, 
or for aid to the aged, blind, or disabled and medical assistance for 
the aged, must— 
" (1) provide that it shall be in effect in all political subdivisions 
of the State, and, if administered by them, be mandatory upon 
them; 
" (2) provide for financial participation by the State; 
"(3) either provide for the establishment or designation of a 
single State agency to administer the plan, or provide for the 
establishment or designation of a single State agency to supervise 
the administration of the plan; 
"(4) provide for granting an opportunity for a fair hearing 
before the State agency to any individual whose claim for aid or 
assistance under the plan is denied or is not acted upon with rea-
sonable promptness; 
"(5) provide such methods of administration 
(including 
methods relating to the establishment and maintenance of per-
sonnel standards on a merit basis, except that the Secretary shall 
exercise no authority with respect to the selection, tenure of office, 
and compensation of any individual employed in accordance with 
such methods) as are found by the Secretary to be necessary for 
the proper and efficient operation of the plan ; 
"(6) provide that the State agency will make such reports, in 
such form and containing such information, as the Secretary may 
from time to time require, and comply with such provisions as the 
Secretary may from time to time find necessary to assure the cor-
rectness and verification of such reports; 
"(7) provide safeguards which restrict the use or disclosure of 
information concernmg applicants and recipients to purposes di-
rectly connected with the administration of the plan; 
"(8) provide that all individuals wishing to make application 
for aid or assistance under the plan shall have opportunity to do 
so, and that such aid or assistance shall be furnished with reason-
able promptness to all eligible individuals; 
"(9) provide, if the plan includes aid or assistance to or on 
behalf of individuals in private or public institutions, for the 
establishment or designation of a State authority or authorities 
which shall be responsible for establishing and maintaining stand-
ards for such institutions; 
"(10) provide a description of the services (if any) which the 
State agency makes available to applicants for or recipients of aid 
or assistance under the plan to help them attain self-support or 
self-care, including a description oi the steps taken to assure, in 
the provision of such services, maximum utilization of other 
agencies providing similar or related services; 
"(11) provide that no aid or assistance will be furnished any 
individual under the plan with respect to any period with respect 
to which he is receiving assistance under the State plan approved 
under title I or aid under the State plan approved under title 
42 use 301-306, 
IV, X, or X I V ; 
601-608, 1201- 
. 
1206, 135 1-1355. 
76 STAT. ] 
PUBLIC LAW 87-543-JULY 25, 1962 
199 
"(12) provide that, in determining whether an individual is 
blind, there shall be an examination by a physician skilled in the 
diseases of the eye or by an optometrist, whichever the individual 
may select; 
"(13) include reasonable standards, consistent with the objec-
tives of this title, for determining eligibility for and the extent of 
aid or assistance under the plan; 
"(14) provide that the State agency shall, in determining need 
for aid to the aged, blind, or disabled, take into consideration any 
other income and resources of an individual claiming such aid, 
as well as any expenses reasonably attributable to the earning of 
any such income; except that, in making such determination with 
respect to any individual who is blind, the State agency shall 
disregard (A) the first $85 per month of earned income plus one-
half of earned income in excess of $85 per month and (B) for 
a period not in excess of twelve months, such additional amounts 
of other income and resources, in the case of an individual who 
has a plan for achieving self-support approved by the State 
I 
agency, as may be necessary for the fulfillment of such plan, and 
in making such determination with respect to any other indi-
vidual who has attained age 65 and is claiming aid to the aged, 
blind, or disabled, of the first $50 per month of earned income 
the State agency may, after December 31, 1962, disregard not 
'? 
more than the first $10 thereof plus one-half of the remainder; and 
"(15) if the State plan includes medical assistance for the 
aged— 
"(A) provide for inclusion of some institutional and some 
,; 
noninstitutional care and services; 
"(B) provide that no enrollment fee, premium, or similar 
charge will be imposed as a condition of any individual's 
eligibility for medical assistance for the aged under the plan; 
"(C) provide for inclusion, to the extent required by regu-
lations prescribed by the Secretary, of provisions (conform-
ing to such regulations) with respect to the furnishing of 
such assistance to individuals who are residents of the State 
, 
but are absent therefrom; and 
vi 
"(D) provide that no lien may be imposed against the 
property of any individual prior to his death on account of 
medical assistance for the aged paid or to be paid on his 
? 
behalf under the plan (except pursuant to the judgment of 
a court on account of benefits incorrectly paid on behalf of 
such individual), and that there shall be no adjustment or 
recovery (except, after the death of such individual and his 
surviving spouse, if any, from such individual's estate) of 
J 
any medical assistance tor the aged correctly paid on behalf 
of such individual under the plan. 
Notwithstanding paragraph (3), if on January 1, 1962, and on the 
date on which a State submits its plan for approval under this title, 
the State agency which administered or supervised the administration 
of the plan of such State approved under title X was different from 
42 use 1201-
the State agency which administered or supervised the administration ^^°^' 
of the plan of such State approved under title I and the State agency 
42 use 301-306. 
which administered or supervised the administration of the plan of 
such State approved under title XIV, the State agency which admin- 
42 use 13s 1-
istered or supervised the administration of such plan approved under 
title X may be designated to administer or supervise the administra-
tion of the portion of the State plan for aid to the aged, blind, or 
disabled (or for aid to the aged, blind, or disabled and medical assist-
ance for the aged) which relates to blind individuals and a separate 
1355. 
Ante, 
p. 197. 
200 
PUBLIC LAW 87-543-JULY 25, 1962 
[76 STAT. 
State agency may be established or designated to administer or super-
vise the administration of the rest of such plan; and in such case the 
part of the plan which each such agency administers, or the adminis-
t ration of which each such agency supervises, shall be regarded as a 
separate plan for purposes of this title. 
"(b) The Secretary shall approve any plan which fulfills the condi-
tions specified in subsection (a), except that he shall not approve any 
plan which imposes, as a condition of eligibility for aid or assistance 
under the plan— 
" (1) an age requirement of more than sixty-five years; or 
"(2) any residence requirement which (A) in the case of appli-
cants for aid to the aged, blind, or disabled excludes any resident 
of the State who has resided therein five years during the nine 
years immediately preceding the application for such aid and has 
resided therein continuously for one year immediately preceding 
the application, and (B) in the case of applicants for medical 
assistance for the aged, excludes any individual who resides in the 
State; or 
"(3) any citizenship requirement which excludes any citizen of 
the United States. 
In the case of any State to which the provisions of section 344 of the 
64 Stat. 554; 
Social Security Act Amendments of 1950 were applicable on January 
^^42*080*2028 
-^' 1^62, and to which the sentence of section 100^(b) following para-
and note. ^^^ 
graph (2) thereof is applicable on the date on which its State plan for 
aid to the aged, blind, or disabled (or for aid to the aged, blind, or dis-
abled and medical assistance for the aged) was submitted for approval 
under this title, the Secretary shall approve the plan of such State 
for aid to the aged, blind, or disabled (or for aid to the aged, blind, 
or disabled and medical assistance for the aged) for purposes of 
this title, even though it does not meet the requirements of paragraph 
(14) of subsection (a), if it meets all other requirements of this title 
for an approved plan for aid to the aged, blind, or disabled (or for 
aid to the aged, blind, or disabled and medical assistance for the aged); 
but payments under section 1603 shall be made, in the case of any such 
plan, only with respect to expenditures thereunder which would be 
included as expenditures for the purposes of section 1603 under a plan 
approved under this section without regard to the provisions of this 
sentence. 
"(c) Subject to the last sentence of subsection (a), nothing in this 
title shall be construed to permit a State to have in effect with respect 
to any period more than one State plan approved under this title. 
"PAYMENTS TO STATES 
"SEC. 1603. (a) From the sums appropriated therefor, the Secretary 
shall pay to each State which has a plan approved under this title, 
for each quarter, beginning with the quarter commencing October 1, 
1962— 
" (1) in the case of any State other than Puerto Rico, the Vir^n 
Islands, and Guam, an amount equal to the sum of the following 
proportions of the total amounts expended during such quarter as 
aid to the aged, blind, or disabled under the State plan (including 
expenditures for insurance premiums for medical or any other 
type of remedial care or the cost thereof) — 
"(A) 2%g of such expenditures, not counting so much of 
any expenditure with respect to any month as exceeds the 
product of $35 multiplied by the total number of recipients of 
such aid for such month (which total number, for purposes 
of this subsection, means (i) the number of individuals who 
received such aid in the form of money payments for such 
76 STAT. ] 
PUBLIC LAW 87-543-JULY 25, 1962 
201 
month, plus (ii) the number of other individuals with re-
spect to whom expenditures were made in such month as aid to 
the aged, blind, or disabled in the form of medical or any 
other type of remedial care); plus 
"(B) the Federal percentage (as defined in section 1101 
(a)(8)) of the amount by which such expenditures exceed the 
72 stat. loso. 
maximum which may be counted under clause (A), not 
'*2 use 1301. 
counting so much of any expenditure with respect to any 
month as exceeds the product of $70 multiplied by the total 
number of recipients of aid to the aged, blind, or disabled for 
such month; plus 
"(C) the larger of the following: (i) the Federal medical 
percentage (as defined in section 6(c)) of the amount by 
74 stat. 991. 
which such expenditures exceed the maximum which may be 
^^ ^^^' 3°^-
counted under clause (B), not counting so much of any ex-
penditure with respect to any month as exceeds (I) the 
product of $85 multiplied by the total number of such re-
cipients of aid to the aged, blmd, or disabled for such month, 
or (II) if smaller, the total expended as aid to the aged, blind, 
or disabled in the form of medical or any other type of 
remedial care with respect to such month plus the product of 
$70 multiplied by such total number of such recipients, or 
(ii) 15 per centum of the total of the sums expended during 
such quarter as aid to the aged, blind, or disabled under the 
State plan in the form of medical or any other type of 
remedial care, not counting so much of any expenditure with 
respect to any month as exceeds the product of $1,5 multiplied 
by the total number of such recipients of aid to the ag»d, 
blind, or disabled for such month: 
" (2) in the case of Puerto Rico, the Virgin Islands, and Guam, 
an amount equal to— 
"(A) one-half of the total of the sums expended during 
such quarter as aid to the aged, blind, or disabled under the 
State plan (including expenditures for insurance premiums 
for medical or any other type of remedial care or the cost 
thereof), not counting so much of any expenditure with re-
spect to any month as exceeds $37.50 multiplied by the total 
number of recipients of aid to the aged, blind, or disabled 
for such month; plus 
"(B) the larger of the following amounts: (i) one-half 
of the amount by which such expenditures exceed the maxi-
mum which may be counted under clause (A), not counting 
so much- of any expenditure with respect to any month as 
exceeds (I) the product of $45 multiplied by the total num-
ber of such recipients of aid to the aged, blind, or disabled for 
such month, or (II) if smaller, the total expended as aid to 
the aged, blind, or disabled in the form of medical or any 
other type of remedial care with respect to such month plus 
the product of $37.50 multiplied by the total number of such 
recipients, or (ii) 15 per centum of the total of the sums ex-
pended during such quarter as aid to the aged, blind, or dis-
abled under the State plan in the form of medical or any 
other type of remedial care, not counting so much of any 
expenditure with respect to any month as exceeds the product 
of $7.50 multiplied oy the total number of such recipients 
of aid to the aged, blind, or disabled for such month; 
"(3) in the case of any State, an amount equal to the Federal 
medical percentage (as defined in section 6(c)) of the total 
amounts expended during such quarter as medical assistance for 
202 
PUBLIC LAW 87-543-JULY 25, 1962 
[76 STAT. 
the aged under the State plan (including expenditures for in-
surance premiums for medical or any other type of remedial care 
or the cost thereof); and 
"^4) in the case of any State whose State plan approved under 
Poat. p. 203. 
section 1602 meets the requirements of subsection (c)(1), an 
amount equal to the sum of the following proportions of the total 
amounts expended during such quarter as found necessary by the 
Secretary of Healthy Education, and Welfare for the proper and 
efficient administration of the State plan— 
"(A) 75 per centum of so much of such expenditures as 
are for— 
"(i) services which are prescribed pursuant to sub-
section (c) (1) and are provided (in accordance with the 
next sentence) to applicants for or recipients of aid or 
assistance under the plan to help them attain or retain 
; 
capability for self-support or self-care, or 
"(ii) other services, specified by the Secretary as 
likely to prevent or reduce dependency, so provided to 
such applicants or recipients, or 
"^iii) any of the services prescribed pursuant to sub-
section (c) (1), and of the services specified as provided 
in clause (ii), which the Secretary may specify as ap-
propriate for individuals who, within such period or 
periods as the Secretary may prescribe, have been or 
are likely to become applicants for or recipients of aid 
or assistance under the plan, if such services are re-
quested by such individuals and are provided to such 
individuals in accordance with the next sentence, or 
" (iv) the training of personnel employed or preparing 
for employment by the State agency or by the local 
agency administering the plan in the political subdivi-
sion; plus 
"(B) one-half of so much of such expenditures (not in-
cluded under subparagraph (A)) as are for services provided 
(in accordance with the next sentence) to applicants for or 
recipients of aid or assistance under the plan, and to indi-
viduals requesting such services who (within such period or 
periods as the Secretary may prescribe) have been or are 
likely to become applicants for or recipients of such aid or 
assistance; plus 
"(C) one-half of the remainder of such expenditures. 
The services referred to in subparagraphs (A) and (B) shall 
include only— 
"(D) services provided by the staff of the State agency, 
or of the local agency administering the State plan m the 
political subdivision: Provided^ That no funds authorized 
under this title shall be available for services defined as voca-
tional rehabilitation services under the Vocational Rehabili-
68 Stat. 652. 
tation Act (i) which are available to individuals in need of 
""^' 
them under programs for their rehabilitation carried on 
under a State plan approved under such Act, or (ii) which 
the State agency or agencies administering or supervising the 
administration of the State plan approved under such Act 
are able and willing to provide if reimbursed for the cost 
thereof pursuant to agreement under subparagraph (E), if 
provided by such staff, and 
"(E) subject to limitations prescribed by the Secretary, 
services which in the judgment of the State agency cannot 
be as economically or as effectively provided by the staff of 
29 use 31 note. 
76 STAT. ] 
PUBLIC LAW 87-543-JULY 25, 1962 
203 
such State or local agency and are not otherwise reasonably 
available to individuals in need of them, and which are pro-
vided, pursuant to agreement with the State agency, by the 
State health authority or the State agency or agencies admin-
istering or supervising the administration of the State plan 
for vocational rehabilitation services approved under the 
»
^ 
Vocational Rehabilitation Act or by any other State agency 
68 stat. 632. 
which the Secretary may determine to be appropriate 
^* ^^^ ^ "****' 
(whether provided by its staff or by contract with public 
(local) or nonprofit private agencies); 
> 
except that services described in clause (ii) of subparagraph (D) 
hereof may be provided only pursuant to agreement with such 
State agency or agencies administering or supervising the adpiin-
istration of the State plan for vocational rehabilitation services so 
approved. The portion of the amount expended for administra-
tion of the State plan to which subparagraph (A) applies and 
the portion thereof to which subparagraphs (B) and (C) apply 
shall be determined in accordance with such methods and pro-
cedures as may be permitted by the Secretary; and 
" (5) in the case of any State whose State plan approved under 
section 1602 does not meet the requirements of subsection (c) (1), 
Ante, p. i98. 
an amount equal to one-half of the total of the sums expended 
., 
during such quarter as found necessary by the Secretary for the 
proper and efficient administration of the State plan, including 
services referred to in paragraph (4) and provided in accordance 
with the provisions of such paragraph. 
"(b)(1) Prior to the beginning of each quarter, the Secretary shall 
B
? ^ ? .'« » 
estimate the amount to which a State will be entitled under subsection 
(a) for such quarter, such estimates to be based on (A) a report filed 
by the State containing its estimate of the total sum to be expended 
in such quarter in accordance with the provisions of such subsection, 
and stating the amount appropriated or made available by the State 
and its political subdivisions for such expenditures in such quarter, 
and if such amount is less than the State's proportionate share of the 
total sum of such estimated expenditures, the source or sources from 
which the difference is expected to be derived, and (B) such other 
investigation as the Secretary may find necessary. 
"(2) The Secretary shall then pay, in such installments as he may 
determine, to the State the amount so estimated, reduced or increased 
to the extent of any overpayment or underpayment which the Secre-
tary determines was made under this section to such State for any 
prior quarter and with respect to which adjustment has not already 
been made under this subsection. 
"(3) The pro rata share to which the United States is equitably 
entitled, as determined by the Secretary, of the net amount recovered 
during any quarter by the State or any political subdivision thereof 
with respect to aid or assistance furnished under the State plan, but 
excluding any amount of such aid or assistance recovered from the 
estate of a deceased recipient which is not in excess of the amount 
expended by the State or any political subdivision thereof for the 
funeral expenses of the deceased, shall be considered an overpayment 
to be adjusted under this subsection. 
"(4) Upon the making of any estimate by the Secretary under this 
subsection, any appropriations available for payments under this 
section shall be deemed obligated. 
"(c) (1) In order for a State to qualify for payments under para-
graph (4) of subsection (a), its State plan approved under section 
1602 must provide that the State agency shall make available to appli-
cants for or recipients of aid to the aged, blind, or disabled under 
204 
PUBLIC LAW 87-543-JULY 25, 1962 
[76 STAT. 
such State plan at least those services to help them attain or retain 
capability for self-support or self-care which are prescribed by the 
Secretary. 
" (2) In the case of any State whose State plan included a provision 
meeting the requirements of paragraph (1), but with respect to which 
the Secretary finds, after reasonable notice and opportunity for hear-
ing to the State agency administering or supervising the administra-
tion of such plan, that— 
"(A) the provision has been so changed that it no longer com-
plies with the requirements of paragraph (1), or 
"(B) in the administration of the plan there is a failure to 
comply substantially with such provision, 
the Secretary shall notify such State agency that further payments 
will not be made to'the State under paragraph (4) of subsection (a) 
until he is satisfied that there will no longer be any such failure to 
comply. 
Until the Secretary is so satisfied further payments with 
respect to the administration of such State plan shall not be made 
under paragraph (4) of subsection (a) but shall instead be made, 
subject to the other provisions of this title, under paragraph (5) of 
such subsection. 
u 
OPERATION o r STATE PLANS 
"SEC. 1604. If the Secretary, after reasonable notice and oppor-
tunity for hearing to the State agency administering or supervising 
the administration of the State plan approved under this title, finds— 
" (1) that the plan has been so changed that it no longer complies 
Ante, p. 198. 
with the provisious of section 1602; or 
"(2) that in the administration of the plan there is a failure 
to comply substantially with any such provision; 
the Secretary shall notify such State agency that further payments 
will not be made to the State (or, in his discretion, that payments 
will be limited to categories under or parts of the State plan not 
affected by such failure), until the Secretary is satisfied that there 
will no longer be any such failure to comply. 
Until he is so satisfied 
he shall make no further payments to such State (or shall limit pay-
ments to categories under or parts of the State plan not affected by 
such failure). 
"DEFINITIONS 
"SEC. 1605. (a) For the purposes of this title, the term 'aid to the 
aged, blind, or disabled' means money payments to, or (if provided in 
or after the third month before the month in which the recipient makes 
application for aid) medical care in behalf of or any type of remedial 
care recognized under State law in behalf of, needy individuals who 
are 65 years of age or older, are blind, or are 18 years of age or over 
and permanently and totally disabled, but does not include— 
" (1) any such payments to or care in behalf of any individual 
who is an inmate of a public institution (except as a patient in 
a medical institution) or any individual who is a patient in an 
institution for tuberculosis or mental diseases, or 
"(2) any such payments to any individual who has been diag-
nosed as having tuberculosis or psychosis and is a patient in a 
medical institution as a result thereof, or 
"(3) any such care in behalf of any individual, who is a 
patient in a medical institution as a result of a diagnosis that he 
has tuberculosis or psychosis, with respect to any period after the 
individual has been a patient in such an institution, as a result of 
such diagnosis, for forty-two days. 
76 STAT. ] 
PUBLIC LAW 87-543-JULY 25, 1962 
205 
« 3 
"(4) 
"(5) 
« ( 
"(b) For purposes of this title, the term 'medical assistance for the 
aged' means payment of part or all of the cost of the following care 
and services (if provided in or after the third month before the month 
in which the recipient makes application for assistance) for individ-
uals who are sixty-five years of age or older and who are not recipients 
of aid to the aged, blind, or disabled but whose income and resources 
are insufficient to meet all of such cost— 
"(1) inpatient hospital services; 
"(2) skilled nursing-home services; 
physicians'services; 
outpatient hospital or clinic services; 
home health care services; 
[6) private duty nursing services; 
"(7) physical therapy and related services; 
"(8) dental services; 
"(9) laboratory and X-ray services; 
"(10) prescribed drugs, eyeglasses, dentures, and prosthetic 
devices; 
"(11) diagnostic, screening, and preventive services; and 
" (12) any other medical care or remedial care recognized under 
State law; 
except that such term does not include any such payments with re-
spect to— 
"(A) care or services for any individusll who is an inmate of 
a public institution (except as a patient in a medical institution) 
or any individual who is a patient in an institution for tubercu-
losis or mental diseases; or 
"(B) care or services for any individual, who is a patient in a 
a medical institution as a result of a diagnosis of tuberculosis or 
psychosis, with respect to any period after the individual has been 
a patient in such an institution, as a result of such diagnosis, for 
forty-two days." 
(b) No payment may be made to a State under title I, X, or X I V of 
the Social Security Act for any period for which such State receives 
any payments under title XVI of such Act or any period thereafter. 
(c) Section 1109 of such Act is amended by striking out "sections 
2(a)(7), 402(a)(7), 1002(a)(8), and 1402(a)(8)" and inserting in 
lieu 
thereof 
"sections 
2(a) (10) (A), 
402(a)(7), 
1002(a)(8), 
1402(a)(8), and 1602(a) (14)" and by striking out "a State plan 
approved under title I, IV, X, or XIV" wherever it appears and 
inserting in lieu thereof "a State plan approved under title I, IV, 
X, XIV, or XVI". 
(d) Section 1111 of such Act is amended bv striking out "and XIV" 
and inserting in lieu thereof "XIV, and XVI . 
(e) Section 618 of the Kevenue Act of 1951 is amended by striking 
out "or X I V " and inserting in lieu thereof "XIV, or X V I (other than 
section 1603(a) (3) thereof)". 
(f) In the case of any State which has a State plan approved under 
title XVI of the Social Security Act, any overpayment or underpay-
ment which the Secretary determines was made to such State under 
section 3,1003, or 1403 of such Act with respect to a period before the 
approval of the plan under such title XVT, and with respect to which 
adjustment has not been already made under subsection (b) of 
such section 3, 1003, or 1403, shall, for purposes of section 1603(b) of 
such Act, be considered an overpayment or underpayment (as the case 
may be) made under section 1603 of such Act. 
42 u s e 301.-306, 
1201-1206, 1351-
1355. 
Ante, 
p. 197. 
42 u s e 1309. 
42 u s e 302, 
602, 1202, 1352. 
Ante, 
p. 199. 
42 u s e 60 1-60$ 
Ante, 
p. 186. 
42 u s e 13 U . 
65 Stat. 56Q. 
42 u s e 
302 
note. 
Ante, 
p. 201. 
42 u s e 303, 
1203, 1353. 
Ante, 
p. 203. 
206 
PUBLIC LAW 87-543-JULY 25, 1962 
[76 STAT. 
PART E—MISCELLANEOUS AND TECHNICAL AMENDMENTS 
INCREASE IN LIMITATION ON TOTAL PUBLIC ASSISTANCE PAYMENTS TO 
PUERTO RICO, THE VIRGIN ISLANDS, AND GUAM 
SEC. 151. Effective for fiscal years ending after June 30, 1962, sec-
42 use 1308. 
tion 1108 of the Social Security Act is amended to read as follows: 
" L I M I T A T I O N O N PAYMENTS TO PUERTO RICO, THE VIRGIN ISLANDS, AND 
GUAM 
"SEC. 1108. The total amount certified by the Secretary of Health, 
42 use 301-306. Educatiou, and Welfare under title I (other than section 3(a)(3) 
i20W206fV3t?-*' thereof), IV, X, XIV, and X V I (other than section 1603(a)(3) 
1355. 
' 
thereof) for payment to Puerto Kico with respect to any fiscal year 
Ante, p. 197. 
gj^^jj ^^^ excecd $9,800,000, of which $625,000 may be used only for 
payments certified with respect to section 3(a) (2) (B) or 1603(a) (2) 
(B); the total amount certified by the Secretary under such titles for 
payments to the Virgin Islands with respect to any fiscal year shall 
not exceed $330,000, of which $18,750 may be used only for payments 
certified with respect to section 3(a) (2) (B) or 1603(a) (2) ( B ) ; and 
the total amount certified by the Secretary under such titles for pay-
ment to Guam with respect to any fiscal year shall not exceed $450,000, 
of which $25,000 may be used only for payments certified with respect 
to section 3 (a) (2) (B) or 1603 (a) (2) (B). Notwithstanding the pro-
42 use 702, 712. visious of sections 502(a)(2), 512(a)(2), 522(a), and 527(a), and 
722; Ante. p. 183. yntil sucli time as the Congress may by appropriation or other law 
otherwise provide, the Secretary shall, in lieu of the initial (or, in the 
case of section 527(a), the minimum) allotment specified in such 
sections, allot such smaller amounts to Guam as he may deem ap-
propriate." 
PAYMENl'S TO RELATIVE OF CHILD WHEN CHILD IS DEPENDENT 
Ante. pp. 189, 
SEC. 152. Sectioii 406(b) of the Social Security Act is amended by 
^% use 606. 
striking out "for any month" and by striking out "if money pay-
ments have been made under the State plan with respect to such child 
for such month". 
SEC. 153. (a) Paragraph (1) of section 1101(a) of the Social Secu-
42 use 1301. 
rity Act is amended by striking out "X, ai\d XIV" and inserting in 
i3'\i"sc ^301- 
lieu thereof "X, X I , XIV, and XVI". 
(b) Paragraph (2) of such section is amended by striking out 
", the District of Columbia, and the Commonwealth of Puerto Rico". 
I N C O M E A N D RESOURCES TO B E DISREGARDED IN DETERMINING NEED OF 
INDIVIDUAL FOR AID TO THE BLIND 
SEC. 154. Effective July 1, 1963, so much of section 1002(a) (8) of 
42 use 1202. 
the Social Security Act as follows the first semicolon therein is 
amended to read as follows: "except that, in making such determina-
tion, the State agency shall disregard (A) the first $85 per month 
of earned income, plus one-half of earned income in excess of $85 per 
month, and (B) for a period not in excess of twelve months, such 
additional amounts of other income and resources, in the case of an 
individual who has a plan for achieving self-support approved by the 
State agency, as may be necessary for the fulfillment of such plan;". 
76 STAT. ] 
PUBLIC LAW 87-543-JULY 25, 1962 
207 
RESPONSIBILITY FOR PLACEMENT AND FOSTER CARE OF DEPENDENT 
CHILDREN 
SEC. 155. (a) Clause (2) of section 408(a) of the Social Security 
Act is amended to read: "(2) whose placement and care are the re- 
42 use eog. 
sponsibility of (A) the State or local agency administering the State 
plan approved under section 402, or (B) any other public agency 
42 use 602. 
with whom the State agency administering or supervising the admin-
istration of such State plan has made an agreement which is still 
in effect and which includes provision for assuring development of a 
plan, satisfactory to such State agency, for such child as provided 
in paragraph (f) (1) and such other provisions as may be necessary 
to assure accomplishment of the objectives of the State plan approved 
under section 402,". 
(b) The amendment made by subsection (a) shall apply only for 
the period beginning October 1, 1962, and ending with the close of 
June 30,1963. The Secretary shall submit to the President, for trans- 
Report to presi-
mission to the Congress prior to March 1, 1963, a full report of the ^"gg^"*^ ^°"' 
administration of the provisions of the amendment made by subsection 
(a), including the experiences of each of the States in arranging for 
foster care under the provisions of their respective State plans which 
are in accord with such amendment, together with his recommenda-
tions as to continuation of, and modifications in, such amendment. 
STARTING DATE FOR PUBLIC ASSISTANCE I N FORM OF MEDICAL OR REMEDIAL 
CARE 
SEC. 156. (a) (1) So much of section 6 (a) of the Social Security Act 
42 use 306. 
as precedes paragraph (1) thereof is amended by inserting "(if pro-
vided in or after the third month before the month in which the 
recipient makes application for assistance)" before "medical care". 
(2) So much of section 6(b) of such Act as precedes paragraph 
(1) thereof is amended by inserting "(if provided in or after the 
third month before the month in which the recipient makes application 
for assistance)" after "care and services". 
(b) So much of section 406(b) of such Act as precedes clause (1) 
Ante, pp. igg, 
thereof is amended by inserting "(if provided in or after the third *^°-
month before the month in which the recipient makes application for 
aid)" before "medical care". 
(c) Section 10O6 of such Act is amended by inserting " (if provided 
42 use 1206. 
in or after the third month before the month in which the recipient 
makes application for aid)" before "medical care". 
(d) Section 1405 of such Act is amended by inserting " (if provided 
42 use 1355. 
in or after the third month before the month in which the recipient 
makes application for aid)" before "medical care". 
(e) The amendments made by this section shall apply in the case 
of applications made after September 30, 1962, under a State plan 
approved under title I, IV, X, or X I V of the Social Security Act. 
42 use 301-306, 
601-608, 1201-
1206, 1351-1355. 
CERTAIN EARNED INCOME MAY BE DISREGARDED I N DETERMINING NEED FOR 
OLD-AGE 
ASSISTANCE 
SEC. 157. Section 2(a) (10) (A) of the Social Security Act (as 
42 use 302. 
amended by section 106(a)(1) of this Act) is further amended by 
Ante. p. ujs. 
inserting before the semicolon at the end thereof "; except that, in 
making such determination, of the first $50 per month of earned 
income the State agency may disregard, after December 31, 1962, not 
more than the first $10 thereof plus one-half of the remainder". 
208 
PUBLIC LAW 87-544r-JULY 25, 1962 
[76 STAT. 
TITLE II—GENERAL 
MEANING OF TERM 'SECRETARY 
5? 
SEC. 201. As used in this Act and in the provisions of the Social 
Security Act amended by this Act, the term "Secretary", unless the 
context otherwise requires, means the Secretary of Health, Education, 
and Welfare. 
EFFECTIVE DATES 
42 use 301-306, 
601-608, 120 1-
1206, 13S1-13SS. 
42 u s e 721. 
SEC. 202. (a) The amendments made by sections 102(b)(1), 103, 
106, and 134 shall become effective July 1, 1963. 
(b) The amendments made by sections 102(c), 123, and 132(d) 
shall be applicable in the case of fiscal years beginning after June 
30, 1962. 
(c) The amendments made by sections 102 (b) (2) and (d), and 152 
shall be applicable in the case of expenditures, under a State plan 
approved under title I, IV, X, or XIV of the Social Security Act or 
developed as provided in part 3 of title V of such Act, as the case 
may be, made after June 30, 1962. 
(d) The amendments made by sections 109 and 132 (other than 
subsections (d) and (e) thereof) shall be applicable in the case of 
expenditures, under a State plan approved under title I, IV, X, or XIV 
of the Social Security Act, as the case may be, made after September 
30, 1962. 
(e) The amendments made by sections 105 (other than subsection 
(c)) and 108 shall be applicable in the case of expenditures under a 
State plan approved under title IV of the Social Security Act, made 
during the period beginning October 1, 1962, and ending with the 
close of June 30, 1967. 
(f) The amendments made by section 101(a) shall be applicable 
in the case of expenditures, under a State plan approved under title 
I, IV, X, or XIV of the Social Security Act, as the case may be, made 
after August 31,1962. The amendments made by section 101 (b) shall 
be applicable in the case of expenditures, under a State plan approved 
under title I, IV, X, or XIV of the Social Security Act, as the case 
may be, made after June 30, 1963. 
Approved July 25, 1962. 
July 25, 1962 
[H. R. 8415] 
Public Law 87-544 
AN ACT 
To change the classes of persons eligible to receive payments of benefits withheld 
during the lifetime of deceased veterans while being furnished hospital or 
domiciliary care. 
Deceased vet-
erans. 
Beneficiaries, 
payments. 
72 Stat 1234. 
73 Stat. 436. 
38 u s e 521 
note. 
Be it enacted by the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That section 3203 
(a) (2) (A), title 38, United States Code, is amended by striking out 
the words "third, if no spouse or child" and all that follows down 
through "brothers and sisters in equal parts" and inserting in lieu 
thereof the following: "third, if no spouse or child, then to the 
dependent parents in equal parts". 
SEC. 2. The amendment made by this Act shall also apply to cases 
in which pension eligibility is subject to the provisions of section 9(b) 
of the Veterans' Pension Act of 1959. 
Approved July 25, 1962.