Adoption Assistance and Child Welfare Act of 1980
PL 96-272 (H.R.3434), enacted 06/17/1980

94 STAT. 500 
PUBLIC LAW 96-272—JUNE 17, 1980 
Public Law 96-272 
96th Congress 
An Act 
June 17,1980 
I
J
I
Q establish a program of adoption assistance, to strengthen the program of foster 
[H.R. 3434] 
care assistance for needy and dependent children, to improve the child welfare, 
social services, and aid to famihes with dependent children programs, and for 
other purposes. 
Be it enacted by the Senate and House of Representatives of the 
Adoption 
United States of 
America in Congress assembled. 
Assistance and 
Child Welfare 
Act of 1980. 
SHORT TITLE 
42 use 1305 
SECTION 1. This Act, with the following table of contents, may be 
"°**- 
cited as the "Adoption Assistance and Child Welfare Act of 1980". 
o 
io,-_.x.x, 
TABLE OF CONTENTS 
Sec. 1. Short title. 
TITLE I-POSTER CARE AND ADOPTION ASSISTANCE 
Sec. 101. Federal pajmients for foster care and adoption assistance. 
Sec. 102. Federal payments for dependent children voluntarily placed in foster care. 
Sec. 103. Child-welfare services. 
TITLE n—SOCIAL SERVICES 
Sec. 201. Determination of amount allocated to States. 
Sec. 202. Extension of 100-per centum Federal matching for child day care expendi-
tures. 
Sec. 203. Limitation on funds for training. 
Sec. 204. Use of restricted private funds for training programs. 
Sec. 205. Emergency shelter. 
Sec. 206. Multiyear plan; choice of fiscal year. 
Sec. 207. Social services funding for territories. 
Sec. 208. Permanent extension of provisions relating to child day care services and 
WIN tax credit. 
Sec. 209. Permanent extension of provisions relating to services for alcoholics and 
drug addicts. 
TITLE ni-OTHER SOCIAL SECURITY ACT PROVISIONS 
Sec. 801. Permanent extension of provisions relating to child support enforcement. 
Sec. 302. Incentives to report earnings under AFDC programs. 
Sec. 303. Prorating of shelter allowance. 
Sec. 304. Services for disabled children. 
Sec. 305. Public asnstance payments to territorial jurisdictions. 
Sec. 306. Period within which certain claims must be filed. 
Sec. 307. Incentives for States to collect child support obligations. 
Sec. 308. Exchange of information on terminated or suspended providers. 
Sec. 309. Postponement of imposition of certain penalties relating to child support 
requirements. 
Sec. 310. Continuing medicaid eligibility for certain recipients of Veterans' Adminis-
tration pensions. 
PUBLIC LAW 96-272—JUNE 17, 1980 
94 STAT. 501 
TITLE I—FOSTER CARE AND ADOPTION ASSISTANCE 
FEDERAL PAYMENTS FOR FOSTER CARE AND ADOPTION ASSISTANCE 
SEC. 101. (aXD Title IV of the Social Security Act is amended by 
adding at the end thereof the following new part: 
"PART E—FEDERAL PAYMENTS FOR FOSTER CARE AND ADOPTION 
ASSISTANCE 
"PURPOSE: APPROPRIATION 
"SEC. 470. For the purpose of enabling each State to provide, in 42 use 670. 
appropriate cases, foster ceire and adoption assistance for children 
who otherwise would be eligible for assistance under the State's plan 
approved under part A (or, in the case of adoption assistance, would ^2 use 60i. 
be eligible for benefits under title XVI), there are authorized to be ^2 use i38i. 
appropriated for each fiscal year (commencing with the fiscal year 
wMch begins October 1,1980) such siuns as may be necessary to carry 
out the provisions of this part. The sums made available under thi^ 
section shall be used for making payments to States which have 
submitted, and had approved by the Secretary, State plans under this 
part. 
"STATE PLAN FOR FOSTER CARE AND ADOPTION ASSISTANCE 
"SEC. 471. (a) In order for a State to be eligible for payments under 42 use 67i. 
this part, it shall have a plan approved by the Secretary which— 
"(1) provides for foster care maintenance payments in accord-
ance with section 472 and for adoption £issistance payments in 
accordance with section 473; 
"(2) provides that the State agency responsible for administer-
ing the program authorized by part B of this title shall adminis- ^^^t' P- 516. 
ter, or supervise the administration of, the program authorized 
by this part; 
"(3) provides that the plan shall be in effect in all political 
subdivisions of the State, and, if administered by them, be 
mandatory upon them; 
"(4) provides that the State shall assure that the programs at 
the locied level assisted under this part will be coordinated with 
the programs at the State or local level assisted under parts A 
and B of 
this title, under title XX of 
this Act, and under any other 42 use 60i post 
appropriate provision of 
Federal law; 
fgg-J^' ^^ ^ ^ 
"(5) provides that the State will, in the administration of its 
programs under this part, use such methods relating to the 
establishment and maintenance of personnel standards on a 
merit basis as are found by the Secretary to be necessary for the 
proper and efficient operation of the programs, except that the 
Secretary shall exercise no authority with respect to the 
selection, tenure of office, or compensation of any individual 
employed in accordance with such methods; 
"(6) provides that the State agency referred to in paragraph (2) state agency. 
(hereinafter in this part referred to as the 'State agency*) will 
make such reports, in such form and containing such informa-
tion as the Secretary may from time to time require, and comply 
with such provisions as the Secretary may from time to time fmd 
94 STAT. 502 
PUBLIC LAW 96-272—JUNE 17, 1980 
Information 
disclosure 
restriction. 
42 u s e 601, posf, 
p. 516, 42 u s e 
630, 651. 
42 u s e 301, 701, 
1201, 1351, 1381, 
1396, 1397. 
42 u s e 1381. 
Post, p. 516. 
42 u s e 1397b. 
Standards, 
review. 
Hearing. 
Audit. 
Goals. 
necessary to assure the correctness and verification of such 
reports; 
"(7) provides that the State agency will monitor and conduct 
periodic evaluations of activities carried out under this part; 
"(8) provides safeguards which restrict the use of or disclosure 
of information concerning individuals assisted under the State 
plan to purposes directly connected with (A) the administration 
of the plan of the State approved under this part, the plan or 
program of the State under part A, B, C, or D of this title or under 
title I, V, X, XIV, XVI (as in effect in Puerto Rico, Guam, and the 
Virgin Islands), XIX, or XX, or the supplemental security income 
program established by title XVI, (B) any investigation, prosecu-
tion, or criminal or civil proceeding, conducted in connection 
with the administration of any such plan or program, (C) the 
administration of any other Federal or federally assisted pro-
gram which provides assistance, in cash or in kind, or services, 
directly to individuals on the basis of need, and (D) any audit or 
similar activity conducted in connection with the administration 
of any such plan or program by any governmental agency which 
is authorized by law to conduct such audit or activity; and the 
safeguards so provided shall prohibit disclosure, to any commit-
tee or legislative body (other than an agency referred to in clause 
(D) with respect to an activity referred to in such clause), of any 
information which identifies by name or address any such 
applicant or recipient; except that nothing contained herein 
shall preclude a State from providing standards which restrict 
disclosures to purposes more limited than those specified herein, 
or which, in the case of adoptions, prevent disclosure entirely; 
"(9) provides that where any agency of the State has reason to 
believe that the home or institution in which a child resides 
whose care is being paid for in whole or in part with funds 
provided under this part or part B of this title is unsuitable for 
the child because of the neglect, abuse, or exploitation of such 
child, it shall bring such condition to the attention of the 
appropriate court or law enforcement agency; 
"(10) provides that the standards referred to in section 
2003(dXlXF) shall be applied by the State to any foster family 
home or child care institution receiving funds under this part or 
part B of this title; 
"(11) provides for periodic review of the standards referred to 
in the preceding paragraph and amounts paid as foster care 
maintenance payments and adoption assistance payments to 
assure their continuing appropriateness; 
"(12) provides for granting an opportunity for a fair hearing 
before the State agency to any individual whose claim for 
benefits available pursuant to this part is denied or is not acted 
upon with reasonable promptness; 
"(13) provides that the State shall arrange for a periodic and 
independently conducted audit of the programs assisted under 
this part and part B of this title, which shall be conducted no less 
frequently than once every three years; 
"(14) provides (A) specific goals (which shall be established by 
State law on or before October 1, 1982) for each fiscal year 
(commencing with the fiscal year which begins on October 1, 
1983) as to the maximum number of children (in absolute 
numbers or as a percentage of all children in foster care with 
respect to whom assisteuice under the plan is provided during 
PUBLIC LAW 96-272—JUNE 17, 1980 
94 STAT. 503 
Case plan and 
case review 
system. 
such year) who, at any time during such year, will remain in 
foster care after having been in such care for a period in excess of 
twenty-four months, and (B) a description of the steps which will 
be taken by the State to achieve such goals; 
"(15) effective October 1, 1983, provides that, in each case, 
reasonable efforts will be made (A) prior to the placement of a 
child in foster care, to prevent or eliminate the need for removal 
of the child from his home, and (B) to make it possible for the 
child to return to his home; and 
"(16) provides for the development of a case plan (as defined in 
section 475(1)) for each child receiving foster care maintenance 
payments under the State plan and provides for a case review 
system which meets the requirements described in section 
475(5)(B) with respect to each such child. 
"(b) The Secretary shall approve any plan which complies with the Plan approval 
provisions of subsection (a) of this section. However, in any case in 
which the Secretary finds, after reasonable notice and opportunity 
for a hearing, that a State plan which has been approved by the 
Secretary no longer complies with the provisions of subsection (a), or 
that in the administration of the plan there is a substantial failure to 
comply with the provisions of the plan, the Secretary shall notify the 
State that further pajrments will not be made to the State under this 
part, or that such payments will be made to the State but reduced by 
£in amount which the Secretary determines appropriate, until the 
Secretary is satisfied that there is no longer any such failure to 
comply, and until he is so satisfied he shall make no further 
payments to the State, or shall reduce such payments by the amount 
specified in his notification to the State. 
FOSTER CARE MAINTENANCE PAYMENTS PROGRAM 
42USC672,/jos«, 
p. 513. 
"SEC. 472. (a) Each State with a plan approved under this part shall 
make foster care maintenance payments (as defined in section 475(4)) 
under this part with respect to a child who would meet the require-
ments of section 406(a) or of section 407 but for his removal from the 42 use 606, 607 
home of 
a relative (specified in section 406(a)), i
f
— 
"(1) the removal from the home was the result of a judicial 
determination to the effect that continuation therein would be 
contrary to the welfare of such child and (effective October 1, 
1983) that reasonable efforts of the type described in section 
471(a)(15) have been made; 
"(2) such child's placement and care are the responsibility of 
(A) the State agency administering the State plan approved 
under section 471, or (B) any other public agency with whom the 
State agency administering or supervising the administration of 
the State plan approved under section 471 has made an agree-
ment which is still in effect; 
"(3) such child has been placed in a foster family home or child-
care institution as a result of a determination referred to in 
paragraph (1); and 
"(4) such child— 
"(A) received aid under the State plan approved under 
section 402 in or for the month in which court proceedings 42 use 602. 
leading to the removal of such child from the home were 
initiated, or 
"(BXi) would have received such aid in or for such month if 
application had been made therefor, or (ii) had been living 
94 STAT. 504 
PUBLIC LAW 96-272—JUNE 17, 1980 
42 use 606. 
"Foster family 
home." 
"Child-care 
institution." 
42 use 1396, 
1397. 
42 use 606. 
42 use 601. 
with a relative specified in section 406(a) within six months 
prior to the month in which such proceedings were initiated, 
and would have received such aid in or for such month if in 
such month he had been living with such a relative and 
application therefor had been made. 
"(b) Foster care maintenance payments may be made under this 
part only on behalf of a child described in subsection (a) of this section 
who is— 
"(1) in the foster family home of an individual, whether the 
payments therefor are 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 payments therefor 
are made to such institution or to a public or nonprofit private 
child-placement or child-care agency, which payments shall be 
limited so as to include in such payments only those items which 
are included in the term 'foster care maintenance payments' (as 
defined in section 475(4)). 
"(c) For the purposes of this part, (1) the term 'foster family home' 
means a foster family home for children which is licensed by the 
State in which it is situated or has been approved, by the agency of 
such State having responsibility for licensing homes of this type, as 
meeting the standards established for such licensing; and (2) the term 
'child-care institution' means a nonprofit private child-care institu-
tion, or a public child-care institution which accommodates no more 
than twenty-five children, which is licensed by the State in which it is 
situated or has been approved, by the agency of such State responsi-
ble for licensing or approval of institutions of this type, as meeting 
the standards established for such licensing, but the term shall not 
include detention facilities, forestry camps, training schools, or any 
other facility operated primarily for the detention of children who 
are determined to be delinquent. 
"(d) For purposes of titles XIX and XX, any child with respect to 
whom foster care maintenance payments are made under this section 
shall be deemed to be a dependent child as defined in section 406 and 
shall be deemed to be a recipient of aid to families with dependent 
children under part A of this title. 
42 use 673. 
Post, p. 514. 
42 use 606, 607. 
42 u s e 1381. 
42 use 602. 
ADOPTION ASSISTANCE PROGRAM 
"SEC. 473. (a)(1) Each State with a plan approved under this part 
shall, directly through the State agency or through another public or 
nonprofit private agency, make adoption assistance payments pursu-
ant to an adoption assistance agreement in amounts determined 
under paragraph (2) of this subsection to parents who, after the 
effective date of this section, adopt a child who— 
"(A)(i) at the time adoption proceedings were initiated, met the 
requirements of section 406(a) or section 407 or would have met 
such requirements except for his removal from the home of a 
relative (specified in section 406(a)) as a result of a judicial 
determination to the effect that continuation therein would be 
contrary to the welfare of such child, or 
"(ii) meets all of the requirements of title XVI with respect to 
eligibility for supplemental security income benefits, 
"(B)(i) received aid under the State plan approved under 
section 402 in or for the month in which court proceedings 
leading to the removal of Huch child from the home were 
initiated, or 
PUBLIC LAW 96-272—JUNE 17, 1980 
94 STAT. 505 
"(iiXD would have received such aid in or for such month if 
application had been made therefor, or (II) had been living with a 
relative specified in section 406(a) within six months prior to the 
month in which such proceedings were initiated, and would have 
received such aid in or for such month if in such month he had 
been living with such a relative and application therefor had 
been made, or 
"(iii) is a child described in subparagraph (AXii), and 
"(C) has been determined by the State, pursuant to subsection 
(c) of this section, to be a child with special needs. 
"(2) The amount of the adoption assistance payments shall be 
determined through agreement between the adoptive parents and the 
State or local agency administering the program under this section, 
which shall take into consideration the circumstances of the adopting 
parents and the needs of the child being adopted, and may be 
readjusted periodically, with the concurrence of the adopting parents 
(which may be specified in the adoption assistance agreement), 
depending upon changes in such circumstances. However, in no case 
may the amount of the adoption assistance payment exceed the foster 
care maintenance payment which would have been paid during the 
period if the child with respect to whom the adoption assistance 
payment is made had been in a foster family home. 
"(3) Notwithstanding the preceding paragraph, (A) no payment 
may be made to parents with respect to any child who has attained 
the age of eighteen (or, where the State determines that the child has 
a mental or physical handicap which warrants the continuation of 
assistance, the age of twenty-one), and (B) no payment may be made 
to parents with respect to any child if the State determines that the 
parents are no longer legally responsible for the support of the child 
or if the State determines that the child is no longer receiving any 
support from such parents. Parents who have been receiving adop-
tion assistance payments under this section shall keep the State or 
local agency administering the program under this section informed 
of circumstances which would, pursuant to this subsection, make 
them ineligible for such assistance payments, or eligible for assist-
ance payments in a different amount. 
"(4) For purposes of this part, individuals with whom a child (who 
has been determined by the State, pursuant to subsection (c), to be a 
child with special needs) is placed for adoption, pursuant to an 
interlocutory decree, shall be eligible for adoption assistance pay-
ments under this subsection, during the period of the placement, on 
the same terms and subject to the same conditions as if such 
individuals had adopted such child. 
"(b) For purposes of titles XIX and XX, any child with respect to 
whom adoption assistance payments are made under this section 
shall be deemed to be a dependent child as defined in section 406 and 
shall be deemed to be a recipient of aid to families with dependent 
children under part A of this title. 
"(c) For purposes of this section, a child shall not be considered a 
child with special needs unless— 
"(1) the State has determined that the child cannot or should 
not be returned to the home of his parents; and 
"(2) the State had first determined (A) that there exists with 
respect to the child a specific factor or condition (such as his 
ethnic background, age, or membership in a minority or sibling 
group, or the presence of factors such as medical conditions or 
physical, mental, or emotional handicaps) because of which it is 
42 use 606. 
Amount of 
payment. 
Restrictions. 
42 use 1396, 
1397. 
42 use 606. 
42 use 601. 
ehild with 
special needs. 
94 STAT. 506 
PUBLIC LAW 96-272—JUNE 17, 1980 
reasonable to conclude that such child cannot be placed with 
adoptive parents without providing adoption assistance, and (B) 
that, except where it would be against the best interests of the 
child because of such factors as the existence of significant 
emotional ties with prospective adoptive parents while in the 
care oif 
such parents as a foster child, a reasonable, but unsuccess-
ful, effort has been made to place the child with appropriate 
adoptive parents without providing adoption assistance under 
this section. 
"PAYMENTS TO STATES; ALLOTMENTS TO STATES 
42 use 674. 
"SEC. 474. (a) For each quarter beginning after September 30,1980, 
each State which has a plan aptproved under this ^art (subject to the 
limitations imposed by subsection G))) shall be entitled to a payment 
equal to the sum o
f
— 
"(1) an amount equal to the Federal medical assistance per-
4
2 use i396d. 
centage (as defined in section 1905(b) of this Act) of the total 
amount expended during such quarter as foster care mainte-
nance payments under section 472 for children in foster family 
homes or child-care institutions; plus 
"(2) an amount equal to the Federal medical assistance per-
centage (as defined in section 1905(b) of this Act) of the total 
amount expended during such quarter as adoption assistance 
payments under section 473 pursuant to adoption assistance 
agreements; plus 
"(3) an amount equal to the sum of the following proportions 
of the total amounts expended during such quarter as found 
necessary by the Secretary for the proper and efficient adminis-
tration of the State plan— 
"(A) 75 per centum of so much of such expenditures as are 
for the training (including both short- and long-term train-
ing at educational institutions through grants to such insti-
tutions or by direct financial assistance to students enrolled 
in such institutions) of personnel employed or preparing for 
employment by the State agency or by the local agency 
administering the plan in the political subdivision, and 
"(B) one-half of the remainder of such expenditures. 
"(bXD Notwithstanding the provisions of subsections (aXD and 
(aX3), the aggregate of the sums paj^able thereunder to any State 
42 use 1
3
0
8 
(other than a State subject to limitation under section 1108(a)) with 
Fost,pp.bZb,5zy, respect to expenditures relating to foster care, for the calendar 
quarters in any of the fiscal years 1981 through 1984 in which the 
conditions set forth in paragraph (2) are met, shall not exceed the 
State's allotment for such year. 
"(2XA) The limitation in paragraph (1) shall apply— 
"(i) with respect to fiscal year 1981, only if the amount 
appropriated imder section 420 for such fiscal year is equal to or 
greater than $163,550,000; 
"(ii) with respect to fiscal year 1982, only if the amount 
42 use 620. 
appropriated under section 420 for such fiscal year is equal to or 
greater than $220,000,000; 
"(iii) with respect to fiscal year 1983, only if the amount 
appropriated under section 420 for such fiscal year is equal to 
$266,000,000; and 
"(iv) with respect to fiscal year 1984, only if the amount 
appropriated under section 420 for such fiscal year is equal to 
$266,(J00,000. 
PUBLIC LAW 96-272—JUNE 17, 1980 
94 STAT. 507 
"(B) The limitations set forth in paragraph (1) with respect to the 
fiscal years 1982 through 1984 shall apply only if the required 
appropriation is made in advance in an appropriation Act (as author-
ized under section 420(b)) for the fiscal year preceding the fiscal year ^2 use 620. 
to which the limitation would apply. 
"(3) For purposes of this subsection, a State's allotment for any 
fiscad year shadl be the greater o
f
— 
"(A) the amount determined under paragraph (4); 
"(B) an amount which bears the same ratio to $100,000,000 as 
the under age eighteen population of such State bears to the 
under age eighteen population of the fifty States and the District 
of Columbia; or 
"(C) at the option of the State, an amount determined under 
paragraph (5), but only in the case of a State which meets the 
requirements of such paragraph (5). 
"(4) For purposes of paragraph (3XA), a State's allotment shall be State allotment 
determined as follows: 
crS'"^*'°" 
"(A) The allotment for any State for fiscal year 1980 shall be an 
amount equal to such State s base amount (as determined under 
subparagraph (c)) increased by 21.2 percent. 
"(B) The allotment for any State for each of the fiscal years 
1981 through 1984 shall be an amount equal to such State's 
allotment for the preceding fiscal year, increased or decreased by 
a percentage equal to twice the percentage increase or decrease 
(as the case may be) (but not to exceed an increase or decrezise of 
10 percent) in the CJonsumer Price Index prepared by the Depart-
ment of Labor, and used in determining cost-of-living adjust-
ments under section 215(i) of this Act, for the second quarter of 42 use 415. 
the preceding fiscal year as compared to such index for the 
second quarter of the second preceding fiscal year. For purposes 
of this subparagraph the Consumer Price Index for any quarter 
shall be the arithmetical mean of such index for the three 
months in such quarter. 
"(C) The base amount shall be equal to the amount of the 
Federal funds payable to such State for Hscal year 1978 under 
section 403 on account of expenditures for aid with respect to 4
2 use 603. 
which Federal financial participation is authorized in payments 
pursuant to section 408 (inclu(Ung administrative expenditures Post, p. 512. 
attributable to the provision of such aid as determined by the 
Secretary) and for those States which in fiscal year 1978 did not 
make foster care maintenance payments under section 408 on 
behalf of children otherwise eligible for such payment, solely 
because their foster care was provided by related persons, shall 
be equal to the total amount of Federal funds the State would 
have been entitled to be paid under section 403 on account of 
expenditures pursuant to section 408 for that fiscal year if such 
payments had been made. In the event that there is a dispute 
between any State and the Secretary as to the amount of such 
expenditures for such fiscal year, then, until the beginning of the 
fiscal year immediately following the fiscal year in which the 
dispute is finally resolved, the base amount shall be deemed to be 
the amount of Federal fimds which would have been payable 
under section 403 if the amount of such expenditures were equal 
to the amoimt thereof claimed by the State. 
"(5XA) For purposes of paragraph (3XC), a State's allotment for any 
fiscal year ending after September 30, 1980, and before October 1, 
1984, may, at the option of the State (and if the State meets the 
94 STAT. 508 
PUBLIC LAW 96-272—JUNE 17, 1980 
requirements of subparagraphs (B) and (O), be determined by appli-
cation of the provisions of paragraph (4) with the following modifica-
tions: 
"(i) The base amount for purposes of 
determining an allotment 
for any such fiscal year shall be equal to the base amount 
determined under paragraph (4XC) increased by a percentage 
equal to the percentage by which the average monthly number of 
children in such State receiving aid with respect to which 
Federal financial participation is authorized in payments pursu-
Post, p. 512. 
ant to section 408, or receiving foster care maintenance pay-
ments with respect to which Federal financial participation is 
authorized under this part, for such fiscal year exceeds the 
average monthly number of such children for fiscal year 1978. 
"(ii) For purposes of clause (i), the percentage determined 
under such clause shall not exceed 33.1 percent in the case of 
fiscal year 1981, 46.4 percent in the case of fiscal year 1982, 61.1 
percent in the case of fiscal year 1983, or 77.2 percent in the case 
of 
fiscal year 1984. 
"(B) No State may exercise the option to have its allotment amount 
determined under the provisions of this paragraph unless, for fiscal 
year 1978, the average monthly number of children in such State 
receiving aid for which Federal financial participation is authorized 
in pajrments pursuant to section 408 £is a percentage of the under age 
eighteen population of such State, was less than the average such 
percentage for the fifty States and the District of 
C!olumbia. 
"(C) No State may exercise the option to have its allotment 
determined under this paragraph for any fiscal year other than fiscal 
year 1981 after the first fiscal year (after fiscal year 1978) with 
respect to which the average monthly number of children in such 
State receiving aid for which Federal financial participation is 
authorized in pajnments pursuant to section 408, or receiving foster 
care maintenance pajnments for which Federal financial participa-
tion is authorized under this part, as a percentage of the under age 
eighteen population of such State, was equal to or greater than the 
average such percentage for the fifty States and the District of 
Columbia for the fiscal year 1978. Any allotment determined under 
this paragraph for a State which opted to have its allotment so 
determined under this paragraph for the fiscal year prior to the first 
fiscal year for which its option may not be exercised by reason of the 
preceding sentence shall be considered to be such State's allotment 
for such prior fiscal year for purposes of determining allotments for 
subsequent fiscal years under paragraph (4). 
"(D) In determining the number of children receiving aid for which 
Federal financial participation is authorized in payments under 
section 408 or under this part, for any fiscal year, with respect to any 
State and with respect to the national average for purposes of 
subparagraphs (B) and (C), there shall be included those children with 
respect to whom foster care maintenance payments were not made 
under section 408 or this part (though they were otherwise eligible for 
such payments) solely because their foster care was provided by 
related persons. In the event that there is a dispute between any 
State and the Secretary as to the number of such children (with 
respect to whom foster care maintenance payments were not made) 
for any fiscal year, then until the beginning of the fiscal year 
immediately foUowinjg the fiscal year in which the dispute is finally 
resolved, determinations under subparagraphs (B) and (C) shall be 
PUBLIC LAW 96-272—JUNE 17, 1980 
94 STAT. 509 
Interim and 
final allotment 
amounts. 
State 
reimbursements. 
made on the basis of the number of such children claimed by the 
State. 
"(E) The Secretary shall promulgate an interim allotment amount 
for purposes of this paragraph for each fiscal year for each State 
exercising its option to have its allotment determined under this 
paragraph, based on the most recent satisfactory data available, not 
later than six months after the beginning of such fiscal year. The 
amount of such allotment shall be adjusted, and the final allotment 
amount shall be promulgated, based on the most recent satisfactory 
data available, not later than nine months after the end of such fiscal 
year. 
"(6) Except in the case of a State which loses the option of having its 
allotment determined under paragraph (5) by reason of the provisions 
of paragraph (5XC), and subject to the provisions of such paragraph 
(5)(C), the amount of any allotment as determined in accordance with 
subparagraph (A), (B), or (C) of paragraph (3) for any fiscal year for 
any State shall be determined in accordance with the provisions of 
such subparagraph, without regard to the amount of such State's 
allotment for any prior fiscal year as determined in accordance with 
another such subparagraph. 
"(c)(1) Except as provided in paragraphs (3) and (4), for any of the 
fiscal years 1981 through 1984 during which the limitation under 
subsection (b)(1) is in effect, sums available to a State from its 
allotment under subsection (b) for carrying out this part, which the 
State does not claim as reimbursement for expenditures in such year 
pursuant to subsection (a) of this section, may be claimed by the State 
as reimbursement for expenditures in such year pursuant to part B of 
this title, in addition to sums available pursuant to section 420 for Post, p. 516. 
carrying out part B. 
"(2) Except as provided in paragraphs (3) and (4), for any of the 
fiscal years 1981 through 1984 during which the limitation under 
subsection (b)(1) is not in effect, a State may claim as reimbursement 
for expenditures for such year pursuant to part B of this title, in 
addition to amounts claimed under section 420, an amount equal to 
the amount by which the State's allotment amount for such fiscal 
year (as determined under subsection Ot))(3)) exceeds the amount 
claimed by such State for such fiscal year as reimbursement for 
expenses relating to foster care under subsection (a); except that the 
total amount claimed by such State for such fiscal year under this 
paragraph, when added to the amount that such State receives for 
such fiscal year under section 420, may not exceed the amount that 
would have been payable to such State under section 420 for such 
fiscal year if the relvant amount described in subsection (b)(2)(A) had 
been appropriated for such fiscal year. 
"(3) The provisions of paragraphs (1) and (2) shall not apply for any 
fiscal year with respect to any State which, with respect to such fiscal 
year, exercised its option to have its allotment amount determined 
under subsection (bX5). 
"(4XA) No State may claim an amount under the provisions of this 
subsection as reimbursement for expenditures for any fiscal year 
pursuant to part B of this title to the extent that such amount, plus 
the amount claimed by such State for such fiscal year under section 
420, exceeds the amount which would be allotted to such State under 
part B if the amount appropriated under section 420 were 
$141,000,000, unless such State has met the requirements set forth in 
section 427(a). 
Post, p. 519. 
94 STAT. 510 
PUBLIC LAW 96-272—JUNE 17, 1980 
"(B) If, for each of any two consecutive fiscal years, there is 
42 use 620. 
appropriated under section 420 a sum equal to $266,000,000, no State 
may claim any amount under the provisions of this subsection as 
reimbursement for expenditures for any succeeding fiscal year pursu-
Post, p. 516. 
ant to part B of this title unless such State has met the requirements 
Post, p. 519. 
set forth in section 427(b). 
"(C) If, for each of any two fiscal years during which the limitation 
under subsection (b)(1) is not in effect, the total amount claimed by a 
State as reimbursement for expenditures pursuant to part B under 
this subsection and under section 420 equals the amount which would 
be allotted to such State for such fiscal year under part B if the 
amount appropriated under section 420 were $266,000,000, such State 
may not claim any amount under the provisions of paragraph (2) as 
reimbursement for expenditures for any succeeding fiscal year pursu-
ant to part B of this title unless such State has met the requirements 
set forth in section 427(b). 
"DEFINITIONS 
p."5l6^^ 
^^^*' 
"(1) The term 'case plan' means a written document which 
includes at least the following: A description of the type of home 
or, institution in which a child is to be placed, including a 
discussion of the appropriateness of the placement and how the 
agency which is responsible for the child plans to carry out the 
judicial determination made with respect to the child in accord-
ance with section 472(aXl); and a plan for assuring that the child 
receives proper care and that services are provided to the 
parents, child, and foster parents in order to improve the condi-
tions in the parents* home, facilitate return of the child to his 
own home or the permanent placement of the child, and address 
the needs of the child while in foster care, including a discussion 
of the appropriateness of the services that have been provided to 
the child under the plan. 
"(2) The term 'parents' means biological or adoptive parents or 
legal guardians, as determined by applicable State law. 
"(3) The term 'adoption assistance agreement' means a written 
agreement, binding on the parties to the agreement, between the 
State agency, other relevant agencies, and the prospective adop-
tive parents of a minor child which at a minimum (A) specifies 
the amounts of the adoption assistance payments and any 
additional services and assistance which are to be provided as 
part of such agreement, and (B) stipulates that the agreement 
shall remain in effect regardless of the State of which the 
adoptive parents are residents at any given time. The ajgreement 
shall contain provisions for the protection (under an interstate 
compact approved by the Secretary or otherwise) of the interests 
of the child in cases where the adoptive parents and child move to 
another State while the agreement is effective. 
"(4) The term 'foster care maintenance payments' means 
payments to cover the cost of (and the cost of providing) food, 
clothing, shelter, daily supervision, school supplies, a child's 
personal incidentals, liability insurance with respect to a child, 
and reasonable travel to the child's home for visitation. In the 
case of institutional care, such term shall include the reasonable 
costs of administration and operation of such institution as are 
necessarily required to provide the items described in the preced-
ing sentence. 
PUBLIC LAW 96-272—JUNE 17, 1980 
94 STAT. 511 
"(5) The term 'case review system' means a procedure for 
assuring that— 
"(A) each child has a case plan designed to achieve 
placement in the least restrictive (most family like) setting 
available and in close proximity to the parents' home, 
consistent with the best interest and special needs of the 
child, 
"(B) the status of each child is reviewed periodically but no 
less frequently than once every six months by either a court 
or by administrative review (as defined in paragraph (6)) in 
order to determine the continuing necessity for and appro-
priateness of the placement, the extent of compliance with 
the case plan, and the extent of progress which has been 
made toward alleviating or mitigating the causes necessitat-
ing placement in foster care, and to project a likely date by 
which the child may be returned to the home or placed for 
adoption or legal guardianship, and 
"(C) with respect to each such child, procedural safeguards 
will be applied, among other things, to assure each child in 
foster care under the supervision of the State of a disposi-
tional hearing to be held, in a family or juvenile court or 
another court (including a tribal court) of competent juris-
diction, or by an administrative body appointed or approved 
by the court, no later than eighteen months after the 
original placement (and periodically thereafter during the 
continuation of foster care), which hearing shall determine 
the future status of the child (including, but not limited to, 
whether the child should be returned to the parent, should 
be continued in foster care for a specified period, should be 
placed for adoption, or should (because of the child's special 
needs or circumstances) be continued in foster care on a 
permanent or long-term basis); and procedural safeguards 
shall also be applied with respect to parental rights pertain-
ing to the removal of the child from the home of his parents, 
to a change in the child's placement, and to any determina-
tion affecting visitation privileges of parents. 
"(6) The term 'administrative review' means a review open to 
the participation of the parents of the child, conducted by a panel 
of appropriate persons at least one of whom is not responsible for 
the case management of, or the delivery of services to, either the 
child or the parents who are the subject of the review. 
"TECHNICAL ASSISTANCE; DATA COLLECTION AND EVALUATION 
"SEC. 476. (a) The Secretary may provide technical assistance to the 42 use 676. 
States to assist them to develop the programs authorized under this 
part and shall periodically (1) evaluate the programs authorized 
under this part and part B of this title and (2) collect and publish data Ante, p. 501, post, 
pertaining to the incidence and characteristics of foster care and P ^^^ 
adoptions in this country. 
"(b) Each State shall submit statistical reports as the Secretary Statistical 
may require with respect to children for whom payments are made gec°etar° 
under this part containing information with respect to such children 
^^^^ ^^^' 
including legal status, demographic characteristics, location, and 
length of 
any stay in foster care.". 
79-194 O-81-pt. 1 
36 : QL3 
94 STAT. 512 
PUBLIC LAW 96-272—JUNE 17, 1980 
Repeal. 
42 u s e 608. 
42 u s e 608 note. 
Ante, p. 501. 
Ante, p. 506. 
42 u s e 601. 
Supra. 
Post, p. 516. 
42 u s e 602. 
Ante, p. 501. 
Effective date. 
42 u s e 602 note. 
Supra. 
Effective date. 
42 u s e 675 note. 
Ante, p. 510. 
Interstate 
compacts. 
42 u s e 673a. 
Ante, p. 504. 
(2)(A) Effective with respect to expenditures made after September 
30,1980, section 408 of the Social Security Act is, subject to subpara-
graph (B), repealed. 
(B) The repeal made by subparagraph (A) shall not be applicable in 
the case of any State for any quarter prior to the first quarter, which 
begins after September 30, 1980, in which such State has in effect a 
State plan approved under part E of the Social Security Act, or (if 
earlier) such repeal shall be effective with respect to expenditures 
made after September 30, 1982. During any period with respect to 
which the repeal made by subparagraph (A)/is not applicable in the 
case of a State and during which a limitation is in effect under section 
474(b)(1) of the Social Security Act, the aggregate of the sums payable 
to the State, under the State's plan approved under part A of title IV 
of such Act, with respect to expenditures (including administrative 
expenditures as determined by the Secretary of Health, Education, 
and Welfare) authorized or incurred by reason of the provisions of 
section 408 of such Act shall not exceed the amount of the allotment 
which such State would have had for such period under section 474(b) 
if such State had had an approved plan under part E of such title IV. 
Any amount which would have been available to such State from its 
allotment for any period with respect which such repeal is not 
applicable in the case of a State (whether or not a limitation is in 
effect under section 474(b)(1) of such Act) under section 474(b) of the 
Social Security Act (if such State had had an approved plan under 
part E of title IV of such Act) which the State does not claim as 
reimbursement with respect to expenditures (including administra-
tive expenditures as determined by the Secretary) authorized or 
incurred by reason of the provisions of section 408 of such Act, may be 
claimed by the State as reimbursement for expenditures in such 
period pursuant to part B of title IV of such Act in the same manner 
as amounts available to States from allotments under section 474(b) 
of such Act, and not claimed as reimbursement under part E of title 
IV of such Act, are authorized to be claimed under section 474(c) of 
such Act. 
(3)(A) Section 402(a)(20) of such Act is amended to read as follows: 
"(20) provide that the State has in effect a State plan for foster 
care and adoption assistance approved under part E of this 
title;". 
(B) The amendment made by subparagraph (A) shall become 
effective with respect to any State at the same time as the repeal of 
section 408 becomes effective with respect to such State under the 
provisions of paragraph (2) of this subsection. 
(4)(A) Clause (B) of the first sentence of section 475(3) of the Social 
Security Act (as added by subsection (a) of this section) shall be 
effective with respect to adoption assistance agreements entered into 
on or after October 1,1983. 
(B) The Secretary of Health, Education, and Welfare shall take all 
possible steps to encourage and assist the various States to enter into 
interstate compacts (which are hereby approved by the Congress) 
under which the interests of any adopted child with respect to whom 
an adoption assistance agreement has been entered into by a State 
under section 473 of the Social Security Act will be adequately 
protected, on a reasonable and equitable basis which is approved by 
the Secretary, if and when the child and his or her adoptive parent (or 
parents) move to another State. 
PUBLIC LAW 96-272—JUNE 17, 1980 
94 STAT. 513 
(5XA) Subject to the repeal provided under paragraph (2), the last 
paragraph of 
section 408 of 
the Social Security Act is amended to read 
as follows: 
"For the purposes of this section, the term 'foster family home' 
means a foster f^nily home for children which is licensed by the 
State in which it is situated or has been approved, by the agency of 
such State having responsibility for licensing homes of this type, as 
meeting the standards established for such licensing; and the term 
*child-care institution' means a nonprofit private child-care institu-
tion, or a public child-care institution which accommodates no more 
than twenty-five children, which is licensed by the State in which it is 
situated or has been approved, by the agency of such State respon-
sible for licensing or approval of institutions of this type, as meeting 
the standards established for such licensing; but the term shall not 
include detention facilities, forestry camps, training schools, or any 
other facility operated primarily for the detention of children who 
are determined to be delinquent. . 
(B) The amendment made by subparagraph (A) shall be effective 
with respect to expenditures made on or after the date of the 
enactment of this Act. 
Ot)Xl) The Secretary of Health, Education, and Welfare shall con-
duct a study of programs of foster care and adoption assistance 
established under part IV-E of the Social Security Act (as added by 
subsection (a) of this section), and shall submit to the Congress, not 
later than October 1, 1983, a full and complete report thereon, 
together with his recommendations as to (A) whether such part IV-E 
should be continued, and if so, (B) the changes (if 
any) which should be 
made in such part IV-E. 
(2) Such report shall include, but not be limited to, the following: 
(A) a determination £is to (i) the extent of reduction that has 
occurred in the duration of foster care under such programs, (ii) 
the extent to which such progreims of adoption assistance have 
resulted in an increase in the adoption of children who otherwise 
would have remained in foster care under State plans approved 
under title IV-A or IV-E of the Social Security Act, and (iii) the 
extent to which the availability of Federal funding for adoption 
assistance under title IV-E of such Act has resulted in States' 
initiating or expanding programs for adoption assistance, and 
(B) specific legislative recommendations for ways to bring 
about further reduction in the duration of foster care for 
children. 
Ante, p. 512. 
"Foster family 
home." 
"Child-care 
institution." 
Effective date. 
42 u s e 608 note. 
Report to 
Congress. 
42 u s e 670 note. 
Ante, p. 501. 
42 u s e 601, ante, 
p. 501. 
FEDERAL PAYMENTS FOR DEPENDENT CHILDREN VOLUNTARILY PLACED 
IN FOSTER CARE 
SEC. 102. (aXD Effective with respect to expenditures made after 
September 30,1980, and before October 1,1983, section 472(a) of the 
Social Security Act (as added by section 101 of this Act) is amended— 
(A) by inserting "occurred pursuant to a voluntary placement 
agreement entered into by the child's parent or legal guardian, 
or" after "removal from the home" in paragraph (1); 
(B) by striking out "a determination" in paragraph (3) and 
inserting in lieu thereof "the voluntary placement agreement or 
judicial determination"; 
(C) by inserting "such agreement was entered into or" after 
"the month in which" in paragraph (4XA); and 
Ante, p. 503. 
94 STAT. 514 
PUBLIC LAW 96-272—JUNE 17, 1980 
Ante, p. 503. 
Post, p. 519. 
Ante, p. 501, post, 
p. 516. 
"Voluntary 
placement." 
"Voluntary 
placement 
agreement." 
Ante, p. 504. 
Ante, p. 506, 42 
use 603. 
Ante, p. 510. 
(D) by inserting "such agreement was entered into or" after 
"the month in which" in paragraph (4XBXii). 
(2) Section 472 of such Act (as so added) is further amended by 
redesignating subsection (d) as subsection (h), and by inserting after 
subsection (c) the following new subsections: 
"(d) Notwithstanding any other provision of this title, Federal 
payments may be made under this part with respect to amounts 
expended by any State as foster care maintenance pa3niients under 
this section, in the case of children removed from their homes 
pursuant to voluntary placement agreements as described in subsec-
tion (a), only if (at the time such amounts were expended) the State 
has fulfilled all of the requirements of section 427(b). 
"(e) No Federal payment may be made under this part with respect 
to amounts expended by any State as foster care maintenance 
payments under this section, in the case of any child who was 
removed from his or her home pursuant to a voluntary placement 
agreement as described in subsection (a) and has remained in volun-
tary placement for a period in excess of 180 days, unless there has 
been a judicial determination by a court of competent jurisdiction 
(within the first 180 days of such placement) to the effect that such 
placement is in the best interests of the child. 
"(f) For the purposes of this part and part B of this title, (1) the term 
'voluntary placement' means an out-of-home placement of a minor, 
by or with participation of a State agency, after the parents or 
guardians of the minor have requested the assistance of the agency 
and signed a voluntary placement agreement; and (2) the term 
'voluntary placement agreement' means a written agreement, bind-
ing on the parties to the agreement, between the State agency, any 
other agency acting on its behalf, and the parents or guardians of a 
minor child which specifies, at a minimum, the legal status of the 
child and the rights and obligations of the parents or guardians, the 
child, and the agency while the child is in placement. 
"(g) In any case where— 
"(1) the placement of a minor child in foster care occurred 
pursuant to a voluntary placement agreement entered into by 
the parents or guardians of such child as provided in subsection 
(a), and 
"(2) such parents or guardians request (in such manner and 
form as the Secretary may prescribe) that the child be returned 
to their home or to the home of a relative, 
the voluntary placement agreement shall be deemed to be revoked 
unless the State agency opposes such request and obtains a judicial 
determination, by a court of competent jurisdiction, that the return of 
the child to such home would be contrary to the child's best 
interests.". 
(3) Section 473(aXl) of such Act (as so added) is amended— 
(A) by inserting ", either pursuant to a voluntary placement 
agreement with respect to which Federal payments are provided 
under section 474 (or 403) or" immediately before "as a result of a 
judicial determination" in subparagraph (A)(i); 
(B) by inserting "such agreement was entered into or" after 
"the month in which" in subparagraph (BXi); and 
(C) by inserting "such agreement was entered into or" after 
"the month in which" in subparagraph (BXii). 
(4) Section 475(1) of such Act (as so added) is amended by inserting 
"voluntary placement agreement entered into or" before "judicial 
determination made". 
PUBLIC LAW 96-272—JUNE 17, 1980 
94 STAT. 515 
G)X1) Effective with respect to expenditures made after September 
30,1979 (but subject to the repeal provided under section 101(a)(2) (A) 
and (B)), section 408(a) of the Social Security Act is amended— 
(A) by inserting "pursuant to a voluntary placement agree-
ment entered into by the child's parent or legal guardian, or" 
after "(specified in such section 406(a))" in clause (1); 
(B) by striking out "such determination" in clause (3) and 
inserting in lieu thereof "such voluntary placement agreement 
or 
judicial determination"; 
(C) by inserting "such agreement was entered into or" after 
"the month in wmch" in clause (4XA); and 
(D) by inserting "such agreement was entered into or" after 
"the month in wmch" in clause (4)(BXii). 
(2) Section 408 of such Act is further amended by adding at the end 
thereof the following new paragraph: 
"For the purposes of this section, the provisions of subsections (d), 
(e), (f), and (g) of section 472 shall apply.". 
(c) The amendments made by subsections (a) and (b) shall be 
effective only with respect to expenditures made grfter September 30, 
1979, and before October 1,1983; and from and after October 1,1983, 
the provisions of law amended by such subsections shall read as they 
would if this section had not been enacted. 
(dXD For purposes of section 472 of the Social Security Act, a child 
who was voluntarily removed from the home of a relative and who 
had a judicial determination prior to October 1, 1978, to the effect 
that continuation therein would be contrary to the welfare of such 
child, shall be deemed to have been so removed as a result of such 
judicial determination if, and from the date that, a case plan and a 
review meeting the requirements of section 471(aX16) of such Act 
have been made with respect to such child and such child is deter-
mined to be in need of foster care as a result of such review. In the 
case of any child described in the preceding sentence, for purposes of 
section 472(aX4) of such Act, the date of the voluntary removal shall 
be deemed to be the date on which court proceedings are initiated 
which led to such removal. 
(2) For purposes of section 408 of the Social Security Act (but 
subject to the repeeil provided under section 101(aX2) (A) and (B)), in 
any case where a child was voluntarily removed from the home of a 
relative prior to October 1, 1979, and a judicial determination was 
made (prior to October 1,1978) to the effect that continuation in such 
home would have been contrary to the child's welfare— 
(A) such child shall be deemed to have been so removed as a 
result of a judicial determination to the effect that continuation 
in such home would be contrary to the welfare of such child, and 
(B) Federal financial participation under the applicable State 
plan approved under section 402 of the Social Security Act for 
quarters beginning prior to October 1,1979, shsdl not be denied 
with respect to aid furnished under such plan to or on behalf of 
such child. 
For purposes of subsection (aX4) of such section 408, the date of such 
child's voluntary removal shall be deemed to be the date on which 
court proceedings were initiated which led to such removal. 
(e) The Secretary of Health, Education, and Welfare, within three 
months after the close of each fiscal year with respect to which the 
amendments made by this section are in effect, shedl submit to the 
Congress a full and complete report on the number of children placed 
in foster care pursuant to voluntary placement agreements under 
Ante, p. 512. 
42 u s e 606. 
Ante, p. 503. 
Effective date. 
42 u s e 672 note, 
608, 672, 673, 
675. 
42 u s e 672 note. 
Ante, p. 501. 
42 u s e 608 note. 
Ante, p. 512. 
42 u s e 602. 
Ante, p. 512. 
Report to 
Congress. 
42 u s e 672 note. 
94 STAT. 516 
PUBLIC LAW 96-272—JUNE 17, 1980 
Ante, pp. 512, 
513. 
sections 408 and 472 of the Social Security Act and on the reasons for 
such placements together with a description of the extent to which 
such placements have contributed to the achievement of the objec-
tives of this title, including such recommendations as he may deem 
appropriate with respect to the continuation (in such section 472) of 
authority to make Federal payments for dependent children volun-
tarily placed in foster care. 
CHILD WELFARE SERVICES 
SEC. 103. (a) Part B of title IV of the Social Security Act is amended 
(subject to subsection (c) of this section) by striking out all that 
precedes section 426 and inserting in lieu thereof the following: 
"PART B—CHILD WELFARE SERVICES 
APPROPRIATION 
42 use 620. 
"SEC. 420. (a) For the purpose of enabling the United States, 
through the Secretary, to cooperate with State public welfare agen-
cies in establishing, extending, and strengthening child welfare 
services, there is authorized to be appropriated for each fiscal year 
the sum of $266,000,000. 
"(b) Funds appropriated for any fiscal year pursuant to the authori-
zation contained in subsection (a) shall be included in the appropri-
ation Act (or supplemental appropriation Act) for the fiscal year 
preceding the fiscal year for which such funds are available for 
obligation. In order to effect a transition to this method of timing 
appropriation action, the preceding sentence, shall apply notwith-
standing the fact that its initial application will result in the 
enactment in the same year (whether in the same appropriation Act 
or otherwise) of two separate appropriations, one for the then current 
fiscal year and one for the succeeding fiscal year. 
"ALLOTMENTS TO STATES 
42 use 621. 
"SEC. 421. (a) The sum appropriated pursuant to section 420 for 
each fiscal year shall be allotted by the Secretary for use by cooperat-
ing State public welfare agencies which have plans developed jointly 
by the State agency and the Secretary as follows: He shall first allot 
$70,000 to each State, and shall then allot to each State an amount 
which bears the same ratio to the remainder of such sum as the 
product of (1) the population of the State under the age of twenty-one 
and (2) the allotment percentage of the State (as determined under 
this section) bears to the sum of the corresponding products of all the 
States. 
"Allotment 
"(b) The 'allotment percentage' for any State shall be 100 per 
percentage." 
centum less the State percentage; and the State percentage shall be 
the percentage which bears the same ratio to 50 per centum as the 
per capita income of such State bears to the per capita income of the 
United States; except that (1) the allotment percentage shall in no 
case be less than 30 per centum or more than 70 per centum, and (2) 
the allotment percentage shall be 70 per centum in the case of Puerto 
Rico, the Virgin Islands, and Guam. 
Promulgation by 
"(c) The allotment percentage for each State shall be promulgated 
Secretary. 
^y the Secretary between October 1 and November 30 of each even-
numbered year, on the basis of the average per capita income of each 
State and of the United States for the three most recent calendar 
PUBLIC LAW 96-272—JUNE 17, 1980 
94 STAT. 517 
years for which satisfactory data are available from the Department 
of Commerce. Such promulgation shall be conclusive for each of the 
two fiscal years in the period beginning October 1 next succeeding 
such promulgation. 
"(d) For purposes of this section, the term 'United States' means 
the fifty Stat^ and the District of Columbia. 
"United States. 
STATE PLANS FOR CHILD WELFARE SERVICES 
"SEC. 422. (a) In order to be eligible for payment under this part, a 
State must have a plan for child welfare services which has been 
developed jointly by the Secretary and the State agency designated 
pursuant to subsection (bXl)> and which meets the requirements of 
subsection (b). 
"(b) Each plan for child welfare services under this part shall— 
"(1) provide that (A) the individual or agency designated 
pursuant to section 2003(dXlXC) to administer or supervise the 
administration of the State's services program will administer or 
supervise the administration of the plan (except as otherwise 
provided in section 103(d) of the Adoption Assistance and Child 
Welfare Act of 1980), and (B) to the extent that child welfare 
services are furnished by the staff of the State agency or local 
agency administering the plan, a single organizational unit in 
such State or local agency, as the case may be, will be responsible 
for furnishing such child welfare services; 
"(2) provide for coordination between the services provided for 
children under the plan and the services and assistance provided 
under title XX, under the State plan approved under part A of 
this title, under the State plan approved under part E of this 
title, and under other State programs having a relationship to 
the program under this part, with a view to provision of welfare 
and related services which will best promote the welfare of such 
children and their families; 
"(3) provide that the standards and requirements imposed with 
respect to child day care under title XX shall apply with respect 
to day C£ire services under this part, except insofar as eligibility 
for such services is involved; 
"(4) provide for the training and effective use of paid parapro-
fessional staff, with particular emphasis on the full-time or part-
time employment of persons of low income, as community 
service aides, in the administration of the plan, and for the use of 
nonpaid or partially paid volunteers in providing services and in 
assisting any advisory committees established by the State 
agency; 
"(5) contain a description of the services to be provided and 
specify the geographic areas where such services will be availa-
ble; 
"(6) contain a description of the steps which the State will take 
to provide child welfare services and to make progress in— 
"(A) covering additional political subdivisions, 
"(B) reaching additional children in need of services, and 
"(C) expanding and strengthening the range of existing 
services and developing new types of 
services, 
along with a description of the State's child welfare services staff 
development and training plans; 
"(7) provide, in the development of services for children, for 
utilization of the facilities and experience of voluntary agencies 
42 u s e 622. 
Post, p. 521. 
42 u s e 1397b. 
Ante, p. 516. 
42 u s e 1397. 
42 u s e 601. 
Ante, p. 501. 
Paraprofessionals 
and volunteers. 
Voluntary 
agencies, 
utilization. 
method. 
94 STAT. 518 
PUBLIC LAW 96-272—JUNE 17, 1980 
in accordance with State and local programs and arrangements, 
as authorized by the State; and 
"(8) provide that the agency administering or supervising the 
administration of the plan will furnish such reports, containing 
such information, and participate in such evaluations, as the 
Secretary may require. 
"PAYMENT TO STATES 
42 use 623. 
"SEC. 423. (a) From the sums appropriated therefor and the allot-
ment under this part, subject to the conditions set forth in this section 
and in section 427, the Secretary shall from time to time pay to each 
State that has a plan developed in accordance with section 422 an 
amount equal to 75 per centum of the total sum expended under the 
plan (including the cost of administration of the plan) in meeting the 
costs of State, district, county, or other local child welfare services. 
2!i^^«^*^*^°" 
"^^ '^he method of computing and making payments under this 
""^ " 
section shall be as follows: 
"(1) The Secretary shall, prior to the beginning of each period 
for which a payment is to be made, estimate the amount to be 
paid to the State for such period under the provisions of this 
section. 
"(2) From the allotment available therefor, the Secretary shall 
pay the amount so estimated, reduced or increased, as the case 
may be, by any sum (not previously adjusted under this section) 
by which he finds that his estimate of the amount to be paid the 
State for any prior period under this section was greater or less 
than the amount which should have been paid to the State for 
such prior period under this section. 
"(c)(1) No payment may be made to a State under this part, for any 
fiscal year beginning after September 30, 1979, with respect to State 
expenditures made for (A) child day care necessary solely because of 
the employment, or training to prepare for employment, of a parent 
or other relative with whom the child involved is living, (B) foster 
care maintenance payments, and (C) adoption assistance payments, 
to the extent that the Federal payment with respect to those 
expenditures would exceed the total amount of the Federal payment 
under this part for fiscal year 1979. 
"(2) Expenditures made by a State for any fiscal year which begins 
after September 30,1979, for foster care maintenance payments shall 
be treated for purposes of making Federal payments under this part 
with respect to expenditures for child welfare services, as if such 
foster care maintenance payments constituted child welfare services 
of a type to which the limitation imposed by paragraph (1) does not 
apply; except that the amount payable to the State with respect to 
expenditures made for other child welfare services and for foster care 
maintenance payments during any such year shall not exceed 100 per 
centum of the amount of the expenditures made for child welfare 
services for which payment may be made under the limitation 
imposed by paragrapih (1) as in effect without regard to this 
paragraph. 
"(d) No payment may be made to a State under this part in excess of 
the payment made under this part for fiscal year 1979, for any fiscal 
year beginning after September 30, 1979, if for the latter fiscal year 
the total of the State's expenditures for child welfare services under 
this part (excluding expenditures for activities specified in subsection 
PUBLIC LAW 96-272—JUNE 17, 1980 
94 STAT. 519 
(c)(1)) is less than the total of the State's expenditures under this part 
(excluding expenditures for such activities) for fiscal year 1979. 
"REALLOTMENT 
"SEC. 424. The amount of any allotment to a State under section ^2 use 624. 
421 for any fiscal year which the State certifies to the Secretary will 
not be required for carrying out the State plan developed as provided 
in section 422 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 carrying out their State plans 
so developed for sums in excess of those previously allotted to them 
under section 421 and (2) will be able to use such excess amounts 
during such fiscal year. Such reallotments shall be made on the basis 
of the State plans so developed, 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 section 421. 
"DEFINITIONS 
"SEC. 425. (a)(1) For purposes of this title, the term 'child welfare 
42 use 625. 
services' means public social services which are directed toward the 
accomplishment of the following purposes: (A) protecting and promot-
ing the welfare of all children, including handicapped, homeless, 
dependent, or neglected children; (B) preventing or remedying, or 
assisting in the solution of problems which may result in, the neglect, 
abuse, exploitation, or delinquency of children; (C) preventing the 
unnecessary separation of children from their families by identifying 
family problems, assisting families in resolving their problems, and 
preventing breakup of the family where the prevention of child 
removal is desirable and possible; (D) restoring to their families 
children who have been removed, by the provision of services to the 
child and the families; (E) placing children in suitable adoptive 
homes, in cases where restoration to the biological family is not 
possible or appropriate; and (F) assuring adequate care of children 
away from their homes, in cases where the child cannot be returned 
home or cannot be placed for adoption. 
"(2) Funds expended by a State for any calendar quarter to comply 
with the statistical report required by section 476(b), and funds 
expended with respect to nonrecurring costs of adoption proceedings 
in the case of children placed for adoption with respect to whom 
assistance is provided under a State plan for adoption assistance 
approved under part E of this title, shall be deemed to have been ^^te, p. 50i. 
expended for child welfare services. 
"(b) For other definitions relating to this part and to part E of this 
title, see section 475 of this Act.". 
^^te, p. 510. 
(b) Part B of title IV of such Act is amended by adding at the end 
thereof the following new sections: 
"FOSTER CARE PROTECTION REQUIRED FOR ADDITIONAL FEDERAL 
PAYMENTS 
"SEC. 427. (a) If, for any fiscal year after fiscal year 1979, there is 42 USC 627. 
appropriated under section 420 a sum in excess of $141,000,000, a 
State shall not be eligible for payment from its allotment in an 
94 STAT. 520 
PUBLIC LAW 96-272—JUNE 17, 1980 
amount greater than the amount for which it would be eligible if such 
appropriation were equal to $141,000,000, unless such State— 
"(1) has conducted an inventory of all children who have been 
in foster care under the responsibility of the State for a period of 
six months preceding the inventory, and determined the appro-
priateness of, and necessity for, the current foster placement, 
whether the child can be or should be returned to his parents or 
should be freed for adoption, and the services necessary to 
facilitate either the return of the child or the placement of the 
child for adoption or legal guardianship; and 
"(2) has implemented and is operating to the satisfaction of the 
Secretary— 
"(A) a statewide information system from which the 
status, demographic characteristics, location, and goals for 
the placement of every child in foster care or who has been in 
such care within the preceding twelve months can readily be 
determined; 
"(B) a case review system (as defined in section 475(5)) for 
each child receiving foster care under the supervision of the 
State; and 
"(C) a service program designed to help children, where 
appropriate, return to families from which they have been 
removed or be placed for adoption or legal guardianship. 
"Ob) If, for each of any two consecutive fiscal years after the fiscal 
year 1979, there is appropriated under section 420 a sum equal to 
$266,000,000, each State's allotment amount for any fiscal year after 
such two consecutive fiscal years shall be reduced to an amount equal 
to its allotment amount for the fiscal year 1979, unless such State— 
"(1) has completed an inventory of the type specified in 
subsection (a)(1); 
"(2) has implemented and is operating the program and sys-
tems specified in subsection (a)(2); and 
"(3) has implemented a preplacement preventive service pro-
gram designed to help children remain with their families. 
"(c) Any amounts expended by a State for the purpose of complying 
with the requirements of subsection (a) or (b) shall be conclusively 
presumed to have been expended for child welfare services. 
42 use 628. 
"Tribal 
organization/ 
"Indian tribe.' 
PAYMENTS TO INDIAN TRIBAL ORGANIZATIONS 
"SEC. 428. (a) The Secretary may, in appropriate cases (as deter-
mined by the Secretary) make payments under this part directly to 
an Indian tribal organization within any State which has a plan for 
child welfare services approved under this part. Such payments shall 
be made in such manner and in such amounts as the Secretary 
determines to be appropriate. 
"(b) Amounts paid under subsection (a) shall be deemed to be a part 
of the allotment (as determined under section 421) for the State in 
which such Indian tribal organization is located. 
"(c) For purposes of this section— 
"(1) the term 'tribal organization' means the recognized gov-
erning body of any Indian tribe, or any legally established 
organization of Indians which is controlled, sanctioned, or char-
tered by such governing body; and 
"(2) the term 'Indian tribe' means any tribe, band, nation, or 
other organized group or community of Indians (including any 
Alaska Native village or regional or village corporation as 
PUBLIC LAW 96-272—JUNE 17, 1980 
94 STAT. 521 
defined in or established pursuant to the Alaska Native Claims 
Settlement Act (PubUc Law 92-203; 85 Stat. 688)) which (A) is 
recognized as eligible for the special programs and services 
provided by the United States to Indians because of their status 
as Indians, or (B) is located on, or in proximity to, a Federal or 
State reservation or rancheria.". 
(c) In the case of Guam, Puerto Rico, and the Virgin Islands, and 
the Commonwealth of the Northern Mariana Islands, section 
422(b)(1) of such Act (as otherwise amended by subsection (a) of this 
section) shall be deemed to read as follows: 
"(1) provide that (A) the State agency designated pursuant to 
section 402(aX3) to administer or supervise the administration of 
the plan of the State approved under part A of this title will 
administer or supervise the administration of such plan for child 
welfare services, and (B) to the extent that child welfare services 
are furnished by the staff of the State agency or local agency 
administering such plan for child welfare services, the organiza-
tional unit in such State or local agency established pursuant to 
section 402(aX15) will be responsible for furnishing such child 
welfare services;". 
(d) Notwithstanding section 422(bXl) of the Social Security Act (as 
amended by subsection (a) of this section) if on December 1,1974, the 
agency of a State administering its plan for child welfare services 
under part B of title IV of that Act was not the agency designated 
pursuant to section 402(aX3) of that Act, such section 4220t>Xl) shall 
not apply with respect to such agency, but only so long as such agency 
is not the agency designated under section 2003(dXlXC) of that Act; 
and if on December 1,1974, the local agencv administering the plan of 
a State under part B of title IV of that Act in a subdivision of the 
State was not the local agency in such subdivision administering the 
plan of such State under part A of that title, such section 422(bXl) 
shall not apply with respect to such local agency, but only so long as 
such local agency is not the local agency administering the program 
of the State for the provision of services under title 3
Q
C of that Act. 
(e) Section 2002(aX8) of such Act is amended by striking out "or 
422" and inserting in lieu thereof "or 423". 
(fKD Notwithstanding any other provision of law, funds which are 
appropriated for fiscal year 1980 pursuant to section 420 of the Social 
Security Act, and for which States are eligible for payment under 
part B of title IV of that Act, shall remain available, to the extent so 
provided in an appropriation Act hereafter enacted, for payment 
with respect to expenditures for child welfare services under part B of 
title IV of 
that Act until September 30,1981. 
(2) Section 4200t>) of the Social Security Act (as added by subsection 
(a) of 
this section) shall apply only with respect to appropriation Acts, 
which appropriate funds for fiscal years after fiscal year 1981 
pursuant to the authorization contained in section 420 of the Social 
Security Act, enacted cdter the date of enactment of this Act. 
43 u s e 1601 
note. 
42 u s e 622 note. 
Ante, p. 517. 
42 u s e 602. 
42 u s e 601. 
42 u s e 622 note. 
Ante, p. 517. 
Ante, p. 516. 
42 u s e 602. 
42 u s e 1397b. 
42 u s e 1397. 
42 u s e 1397a. 
42 u s e 620 note. 
Ante, p. 516. 
TITLE n—SCX3IAL SERVICES 
DETERMINATION OF AMOUNT ALLOCATED TO STATES 
SEC. 201. (a) Section 2002(aX2XA) of the Social Security Act is 42 use i397a. 
amended by striking out clause (ii) and inserting in lieu thereof the 
following: 
94 STAT. 522 
PUBLIC LAW 96-272—JUNE 17, 1980 
42 use 1397a. 
42 use 415. 
42 use 1397a. 
"(ii) The amount specified for purposes of clause (i) for fiscal year 
1980 and each succeeding fiscal year shall be an amount (not 
exceeding $3,300,000,000) equal to the indexed ceiling amount for 
that fiscal year as determined under subparagraph (B).". 
db) Section 2002(aX2) of such Act is amended (subject to subsection 
(c) of this section) by striking out subparagraphs (B), (C), and (D), and 
by inserting after subparagraph (A) the following new subparagraph: 
"(BXi)(I) Except as otherwise provided in clauses (ii), (iii), and (iv), 
the indexed ceiling amount for any fiscal year shall be an amount 
equal to the indexed ceiling amount for the preceding fiscal year 
increased or decreased (as the case may be) by an amount determined 
under division (ID. 
"(II) For purposes of division (I) the amount of the increase or 
decrease (as the case may be) shall be an amount equal to 
$2,500,000,000, multiplied by a percentage equal to the positive or 
negative percentage change m the Consumer Price Index prepared by 
the Department of Labor, and used in determining cost-of-living 
adjustments under section 215(i) of this Act, for the second quarter of 
the preceding fiscal year as compared to such index for the second 
quarter of the second preceding fiscal year (rounded to the nearest 
one-tenth of 1 per centum). For purposes of this clause the Consumer 
Price Index for any quarter shall be the arithmetical mean of such 
index for the three months in such quarter. 
"(ii) If the percentage increase in the Consumer Price Index as 
determined under clause (iXII) for any fiscal year exceeds the infla-
tion rate for that fiscal year as shown for that year (or, if no rate is 
shown for that year, for the most recent preceding year for which a 
rate is shown) in the table which appears on page 25 of Senate Budget 
Committee Report Numbered 96-311, then for such fiscal year such 
inflation rate shall be used in making the determination under clause 
(iXII) instead of the percentage increase in the Consumer Price Index. 
"(iii) The indexed ceiling amount determined under clause (i) shall, 
if not a multiple of $100,000,000, be rounded to the next lesser amount 
that is a multiple of $100,000,000. 
"(iv) The indexed ceiling amount for fiscal year 1979 shall be 
$2,500,000,000." 
(c) With respect to 
fiscal 
year 1980 only— 
(1) subparagraphs (B) and (C) of section 2002(aX2) of such Act 
(as in effect immediately prior to the enactment of this Act) shall 
continue in effect, redesignated as subparagraphs (D) and (E), 
respectively; 
(2) the subparagraph of 
such section 2002(aX2) which is redesig-
nated as subparagraph (E) and continued in effect by paragraph 
(1) of this subsection is amended by striking out "subparagraph 
(B)" and "subparagraph (D)" and inserting in lieu thereof "sub-
paragraph (D) and "subparagraph (F)", respectively; and 
(3) subparagraph (D) of such section 2002(aX2) (as in effect 
immediately prior to the enactment of this Act) shall continue in 
effect, redesignated as subparagraph (F) and amended to read ajs 
follows: 
"(F) The amounts made available pursuant to subparagraph 
(E) for allotment in fiscal year 1980 shall be allotted by the 
Secretary to the States which have certified under subparagraph 
(D) that the amounts of their limitations for such fiscal year are 
less than their need for such year. The amount of such edlotment 
to any State (which shaU be in addition to any payments made to 
the State under subparagraph (A)) shall bear the same ratio to 
PUBLIC LAW 96-272—JUNE 17, 1980 
94 STAT. 523 
the total amount available for allotment in such year under this 
subparagraph as the population of such State bears to the 
population of the fifty States and the District of Columbia, but 
shall in no case exceed the amount by which such State certified 
that its limitation is less than its need for such fiscal year.". 
EXTENSION OF 100-PER CENTUM FEDERAL MATCHING FOR CHILD DAY 
CARE EXPENDITURES 
SEC. 202. (a) Section 2002(a) of the Social Security Act is amended 
by adding at the end thereof the following new paragraph: 
"(17XA) The total payment to a State under this section with 
respect to expenditures during any fiscal year for the provision of 
child day care services under this title (including expenditures for 
grants to qualified providers under section 2007) shall be equal to 100 
per centum of 
such expenditures to the extent that such expenditures 
(during that fiscal year) do not exceed— 
"(i) an amount which bears the same ratio to $200,000,000 as 
the amount of the State's limitation under paragraph (2XA) bears 
to the indexed ceiling amount for such fiscal year, in the case of 
fiscal year 1980 and fiscal year 1981; or 
"(ii) 8 per centum of the State's limitation under paragraph 
(2XA) for such fiscal year, in the case of fiscal year 1982 and any 
subsequent fiscal year. 
"(B) Federal funds payable to a State under this title (with respect 
to expenditures for child day care services) at the rate specified in 
subparagraph (A) shall, to the maximum extent that the State 
determines to be feasible, be employed in such a way as to increase 
the employment of welfare recipients and other low-income persons 
in jobs related to the provision of child day care services.". 
(b) Section 2002(aXl) of such Act is eimended by striking out "100 
per centum" and all that follows down through "2007" and inserting 
in lieu thereof "100 per centum of the expenditures during that 
quarter for child day care services (including expenditures for grants 
to qualified providers under section 2007) to the extent permitted by 
paragraph (17)". 
42 u s e 1397a. 
42 u s e 1397f. 
UMITATION ON FUNDS FOR TRAINING 
SEC. 203. (a) The first sentence of section 2002(aX2XAXi) of the 
Social Security Act is amended by striking out "in excess of an 42 use I397a. 
amount" and all that precedes it, and inserting in lieu thereof 
"Except as provided in clause (iii), no pa3rment may be made under 
this section to any State for any fiscal year in excess of an amount", 
(b) Section 2002(aX2XA) of such Act is further amended by adding 
after clause (ii) the following new clause: 
"(iii) Payment with respect to expenditures for personnel training 
or retraining directly related to the provision of services under this 
title shall be made to a State in excess of the limitation for such State 
promulgated under clause (i) for any fiscal year and without regard to 
such limitation; except that— 
"(I) notwithstanding any other provision of law, pajrment to a 
State with respect to such expenditures for fiscal years 1980 and 
1981 may not exceed an amount equal to 4 per centum of such 
State's limitation (for the fiscal year involved) under clause (i), 
or, if greater, an amount equal to the amount of the payment 
made under this title to such State with respect to such expendi-
94 STAT. 524 
PUBLIC LAW 96-272—JUNE 17, 1980 
Training plan, 
submittal to 
Secretary. 
42 u s e 1397a. 
Ante, p. 523. 
42 u s e 1397. 
tures for fiscal year 1979, or equal to (a) the amount which would 
be payable without regard to this subclause with respect to 
expenditures pursuant to an appropriation made prior to Octo-
ber 1,1979, by such State for fiscal year 1980, or, if less, (b) the 
amount determined under division (a) of this subclause reduced 
to the extent necessary and on a proportional basis so as to assure 
that the aggregate of the additional amounts payable to all 
States as a result of such division (a) does not exceed $6,000,000; 
and 
"(ID payment to a State with respect to such expenditures for 
fiscal year 1982 or any succeeding fiscal year may l>e made only if 
the State has submitted to the Secretary in accordance with 
paragraph (18) (prior to the beginning of the fiscal year involved) 
a training plan specifying how its funds expended for such 
training or retraining in that fiscal year will be used, and only 
with respect to expenditures included in such plan which are 
approved by the Secretary in accordance with criteria prescribed 
by him.", 
(c) Section 2002(a) of such Act is amended by adding after para-
graph (17) (as added by section 202(a) of this Act) the following new 
paragraph: 
"(18) Effective October 1,1981, no payment may be made under this 
section for training or retraining expenditures except in accordance 
with a training plan approved by the Secretary which, at a 
minimum— 
"(A) describes how training needs were assessed and how the 
assessment was used to structure the training programs, the 
individuals to be trained, and the training resources to be used; 
"(B) demonstrates that the training activities have a direct 
relationship to the title XX services program and to the Stote's 
staffing needs to carry out the title XX services program; and 
"(C) describes the State agency's plan to monitor training 
programs and to evaluate the agency's overall staff training and 
development program.". 
USE OF RESTRICTED PRIVATE FUNDS FOR TRAINING PROGRAMS 
42 use 1397a. 
SEC. 204. (a) Section 2002(aX7)(DXii) of the Social Security Act is 
amended by striking out "and" at the end thereof and inserting in 
lieu thereof the following: "except that during fiscal years 1980 and 
1981 the provisions of this clause shall not apply with respect to funds 
that are donated for the purpose of training or retraining as provided 
in subsection (aXl), if such training or retraining is carried out by a 
public or nonprofit entity, and". 
EMERGENCY SHELTER 
SEC. 205. (a) Section 2002(aXll) of the Social Security Act is 
amended— 
(1) by striking out "and" at the end of subparagraph (C); 
(2) by striking out the period at the end of subparagraph (D) 
and inserting in lieu thereof "; and"; and 
(3) by adding at the end thereof the following new 
subparagraph: 
"(E) any expenditure for the provision of 
emergency shelter, for 
not in excess of thirty days in any six-month period, provided as a 
PUBLIC LAW 96-272—JUNE 17, 1980 
94 STAT. 525 
protective service to an adult in danger of physical or mental 
injury, neglect, maltreatment, or exploitation.", 
(b) The amendments made by this section shall be effective on and Effective date. 
after October 1,1979. 
42usci397a 
MULTIYEAR PLAN; CHOICE OF FISCAL YEAR 
note. 
42 u s e 1397c. 
SEC. 206. (a) Section 2004(1) of the Social Security Act is amended to 
read as follows: 
"(1) for each services program period, the beginning of the 
fiscal year of the Federal Government, the State government, or 
the political subdivisions of such State is established as the 
beginning of the State's services program period, and the end of 
such fiscal year, the succeeding fiscal year, or the second succeed-
ing fiscal year is established as the end of the State's services 
program period; and". 
(b) Section 2004 of such Act is further amended— 
(1) by striking out "services program year" each place it 
appears and inserting in lieu thereof in each instance "services 
program period"; 
(2) by striking out "annual" in paragraph (2) (in the matter 
preceding subparagraph (A)) and in paragraph (4); 
(3) by striking out "during that year" in paragraph (2) (in the 
matter preceding subparagraph (A)) and inserting in lieu thereof 
"during that period"; 
(4) by striking out the period at the end of paragraph (5) and 
inserting in lieu thereof"; and"; and 
(5) by adding at the end thereof the following new paragraph: 
"(6) in the case of a State that adopts a services program 
planning period of longer than one year, the State agency 
publishes and makes generally available such information con-
cerning the comprehensive services program at such times as the 
Secretary may by regulation require.". 
(c) Section 2003(b) of such Act is amended— 
(1) by striking out "each services program year" and inserting 
in lieu thereof "each fiscal year (as selected by the State under 
section 2004(1)) within each services program period"; and 
(2) by striking out "any services program year" and inserting 
in lieu thereof "any services program period". 
(d) Sections 2003(dKl) and 2005 of such Act are each amended by 
striking out "services program year" and inserting in lieu thereof 
"services program period". 
(e) Section 2002(a)(3)(B) of such Act is amended by striking out 42 use I397a 
"annual". 
(f) The amendments made by this section shall be effective with 
respect to services program periods beginning after the date of the 
enactment of this Act. 
42 u s e 1397b. 
42 u s e 1397b, 
1397d. 
Effective date. 
42 u s e 1397a 
note. 
SOCIAL SERVICES FUNDING FOR TERRITORIES 
SEC. 207. (a) Section 2002(a)(2) of the Social Security Act is amended 
by adding after subparagraph (B) (as added by section 201(b) of this 
Act) the following new subparagraph: 
"(C) From the amounts made available under section 2001 for any 
fiscal year beginning with fiscal year 1980 (in addition to any sums 
appropriated for purposes of payments under the preceding provi-
sions of this subsection), the Secretary shall allocate— 
42 u s e 1397a. 
Ante, p. 521. 
94 STAT. 526 
PUBLIC LAW 96-272—JUNE 17, 1980 
42 use 303, 603, 
1203, 1353, 1383 
note. 
42 use 603. 
42 use 1397. 
42 use 1308, 
post, pp. 529, 530. 
"(i) to the jurisdictions of Puerto Rico, Guam, and the Virgin 
Islands, for purposes of payments under sections 3(a) (4) and (5), 
403(aX3), 1003(a) (3) and (4), 1403(a) (3) and (4), and 1603(a) (4) and 
(5), with respect to services, the sums of 
$15,000,000, $500,000 and 
$500,000, respectively, and 
"(ii) to the jurisdiction of the Northern Mariana Islands, for 
purposes of payments under section 403(aX3), with respect to 
services and for services programs for other individuals as 
defined by the Secretary, the sum of 
$100,000, 
in addition to any amounts otherwise available to such jurisdictions 
under this Act.". 
(b) The last sentence of section 2001 of such Act is amended by 
inserting before the period at the end thereof the following: "(and to 
territorial jurisdictions as described in subsection (a)(2XC) thereof)". 
(c) Section 1108(a) of such Act is amended by striking out "section 
2002(aX2XD)" and inserting in lieu thereof '^section 2002(aX2XC)". 
42 use 1397e-l 
note. 
93 Stat. 1295. 
26 use 50B. 
42 use 1397. 
26 use 40. 
26 use 50A. 
42 use 1397f. 
PERMANENT EXTENSION OF PROVISIONS RELATING TO CHILD DAY CARE 
SERVICES AND WIN TAX CREDIT 
SEC. 208. (a) Section 4(d) of Public Law 96-178 is amended by 
striking out "during the period beginning October 1,1979, and ending 
March 31,1980" and inserting in lieu thereof "on or after October 1, 
1979". 
(bXD Section 50B(i) of the Internal Revenue Code of 1954 (relating 
to special rules with respect to employment of day care workers) is 
amended to read as follows: 
"(i) SPECIAL RULES WITH RESPECT TO EMPLOYMENT OP DAY CARE 
WORKERS.— 
"(1) ELIGIBLE EMPLOYEE.—An individual who would be an 
'eli^ble employee' (as that term is defined for purposes of this 
section) except for the fact that such individual's employment is 
not on a substantially full-time basis, shall be deemed to be an 
eligible employee as so defined, if such employee's employment is 
related to the provision of child day care services and is per-
formed on either a full-time or part-time basis. 
"(2) ALTERNATIVE COMPUTATION WITH RESPECT TO CHILD DAY 
CARE SERVICES EUGIBLE EMPLOYEES PAID FROM FUNDS MADE AVAIL-
ABLE UNDER TITLE X
X OF THE SOCIAL SECURITY ACT.—The amount 
of the credit allowed a taxpayer under section 40, as determined 
under section 50A and the preceding provisions of this section, 
with respect to work incentive program expenses paid or in-
curred by him with respect to an eligible employee whose 
services are performed in connection with a child day care 
services program conducted by the taxpayer, and with respect to 
whom the taxpayer is reimbursed (in whole or in part) from 
funds made available pursuant to section 2007 of the Social 
Security Act, at the option of the taxpayer shall be equal to 100 
percent of the unreimbursed wages paid or incurred by the 
taxpayer with respect to such employee, but not more than the 
amoimt of 
the limitation in paragraph (4). 
"(3) UNREIMBURSED WAGES.—For purposes of this subsection, 
the term 'unreimbursed wages' means work incentive program 
expenses for which the taxpayer was not reimbursed under 
section 2007 of the Social Security Act or under any other grant 
or program. 
PUBLIC LAW 96-272—JUNE 17, 1980 
94 STAT. 527 
"(4) LIMITATION.—The amount of the credit, as determined 
under paragraph (2), with respect to any employee shall not 
exceed the lesser o
f
— 
"(A) an amount equal to $6,000 minus the amount of the 
funds reimbursed to the taxpayer with respect to such 
employee from funds made avauable pursuant to section 
2007 of 
the Social Security Act; or 
42 use i397f. 
"(B) with respect to work incentive program expenses 
attributable to service rendered— 
"(i) during the one-year period which begins on the 
day such employee begins work for the taxpayer, an 
amount equal to the lesser o
f
— 
"a) $3,000, or 
"(li) 50 percent of the sum of the amount of the 
unreimbursed wages of such employee and the 
amount reimbursed to the taxpayer with respect to 
such employee from funds made available pursuant 
to section 2007 of the Social Security Act; or 
"(ii) during the one-year period which begins on the 
day after the last day of the one-year period described in 
clause (i), an amount equal to the lesser o
f
— 
"a) $1,500, or 
"(II) 25 percent of the sum of the amount of the 
unreimbursed wages of such employee and the 
amount reimbursed to the taxpayer with respect to 
such employee from funds made available pursuant 
to section 2007 of the Social Security Act.". 
(2) Section 50B(hXlXB) of such Code is amended by inserting 26 use SOB. 
"(except as provided in subsection (i))" after "full-time basis". 
(3XA) The amendments made by paragraphs (1) and (2) shall be Sf^^^^^'^.i^*® 
effective with respect to taxable years begmning after December 31, ^^ ^^ ^"^ '^''^• 
1979. 
(B) The redesignation of subsection (i) of section 50B of the Internal 2
6 use SOB note. 
Revenue Code of 1954 as subsection 0
*
) by section 3(aXl) of Public Law 
96-178, shall remain in effect with respect to taxable years beginning ^^ ^tat. 1295. 
after December 31,1979. 
PERMANENT EXTENSION OF PROVISIONS RELATING TO SERVICES FOR 
ALCOHOUCS AND DRUG ADDICTS 
SEC. 209. Section 5(b) of Public Law 96-178 is amended by striking f^ ftet 1297. 
out "during the period begmning October 1,1978, and ending March ^0^ 
31,1980" and inserting in lieu thereof "on or after October 1,1978". 
TITLE ffl-OTHER SOCIAL SECURITY ACT PROVISIONS 
PERMANENT EXTENSION OF PROVISIONS RELATING TO CHILD SUPPORT 
ENFORCEMENT 
SEC. 301. (a) Section 2(b) of Public Law 96-178 is amended by 
fJ^^^lF^' 
Striking out "during the period beginning October 1,1978, and ending ^^ ^^^ ^^^ "
°
*
® 
March 31,1980" and h serting in lieu thereof "on or after October 1, 
1978". 
(b) Section 452(aX10) of the Social Security Act is amended by 42 use 6S2. 
adding at the end thereof (after and below subparagraph (H)) the 
following new sentence: 
79-194 
O—81—pt. 1 
37 : QL3 
94 STAT. 528 
PUBLIC LAW 96-272—JUNE 17, 1980 
"The information contained in any such report under subpara-
graph (A) shall specifically include (i) the total amount of child 
support payments collected as a result of services furnished 
durmg the fiscal year involved to individuals under section 
42 use 654. 
454(6), (ii) the cost to the States and to the Federal Government of 
furnishing such services to those individuals, and (iii) the extent 
to which the furnishing of such services was successful in 
providing sufficient supi)ort to those individuals to assure that 
they did not require assistance under the State plan approved 
42 use 601. 
under part A.". 
INCENTIVES TO REPORT EARNINGS UNDER AFDC PROGRAMS 
42 use 602. 
SEC. 302. (a) Section 402(aX8) of the Social Security Act is 
£unended— 
(1) by inserting "or" at the end of subparagraph (D) thereof; 
and 
(2) by adding after subparagraph (D) the following new 
subparagraph: 
"(E) any of the persons specified in clause (ii) of subpara-
graph (A) with respect to which there is a failure without 
good cause to make a timely report (as prescribed by the 
State plan) to the State agency;". 
Effective date. 
(b) The amendments made by subsection (a) shall take effect on the 
4
2 use 602 note, ^ate of the enactment of 
this Act. 
PRORATING OF SHELTER ALLOWANCE 
SEC. 303. Part A of title IV of the Social Security Act is amended by 
adding at the end thereof the following new section: 
"PRORATING OF SHELTER ALLOWANCE IN CERTAIN CASES WHERE CHILD 
U V E S WITH RELATIVE NOT LEGALLY RESPONSIBLE FOR HIS SUPPORT 
42 use 612. 
"SEC. 412. (a) Notwithstanding any other provision of this part, a 
State plan for £iid and services to needy families with children shall 
not be regarded as failing to comply with the requirements imposed 
under this part solely because, under such plan, in any case in which 
one or more children live in any household— 
"(IXA) in which the total income of such child or children and 
the closely related family members (as defined in subsection (b)) 
living in the same household eq[uals or exceeds the standard of 
need under such plan for a family equal in number to the toted 
number of such cliildren and closely related family members in 
the same household, or (B) where the income of children and 
family members cannot be determined due to failure to cooper-
ate, and 
"(2) which (A) does not include a relative (specified in section 
42 use 606. 
406(aXl)) who is legally responsible for the support of the child or 
children, or (B) includes one or more such relatives who is legally 
responsible for the support of the child or children but none of 
whom is eligible for aid under the State plan because such 
relative is being supported by another person or under another 
program, 
the amount of the aid furnished with respect to such child or children 
for shelter, utilities, and similar expenses, bears the same ratio to the 
total amount which would be furnished for such expenses, if all the 
closely related family members with whom such child or children are 
PUBLIC LAW 96-272—JUNE 17, 1980 
94 STAT. 529 
living were eligible for such aid, as the number of such children bears 
to the total number of such children and closely related family 
members. 
"(b) For purposes of subsection (a), the term 'closely related family 'Closely related 
members' of a child means those relatives of his who are specified in ^^^J^j-g.. 
section 406(aXl) and any other individual for whose support such a 42 use 606. 
relative is legally responsible, but does not include any such relative 
or other individual (1) with respect to whom benefits are provided 
under another public program eligibility for which is based on need, 
or (2) whose presence in the home would not increase the total 
amount which would be allowed for shelter, utilities, and similar 
expenses if he was eligible for aid. 
"(c) The amount of aid to families with dependent children for 
shelter, utilities, and similar expenses shall be identified, for pur-
poses of this section, in the following manner: 
"(1) If the State plan approved under this part provides for 
pajdng 100 per centum of the standard of need specified in the 
plan, and designates a portion of that standard, for families of 
specified sizes, to meet shelter, utilities, and similar expenses, 
then an amount equal to that portion shall be considered the 
total amount for such expenses for a family of the specified size. 
"(2) If such plan provides for meeting less than 100 per centum 
of such standard, and designates a portion of that standard, for 
families of specified sizes, to meet such expenses, then an amount 
equal to that portion, multipUed by the proportion of the stand-
ard of need which such State pays as aid to families with 
dependent children, shall be considered the total amount for 
such expenses for a family of 
the specified size. 
"(3) If such plan does not designate any portion of the standard 
of need for meeting such expenses, then such portion shall be 
prescribed by the Secretary, but in no event shall such portion 
exceed 30 per centum of the standard of need for a family of a 
specified size, multiplied by the proportion of such standard 
which the State pays as aid to families with dependent children. 
"(d) For purposes of subsection (a), the total income of the child or 
children and the closely related family members (as defined in 
subsection (b)) shall be determined as it would be if all such individ-
uals were applicants for aid imder the State plan and shall not 
include any income which any such individual is obligated to apply to 
the support of any other individual not living in the household.". 
SERVICES FOR DISABLED CHILDREN 
SEC. 304. Section 1615 of the Social Security Act is amended by 42 use i382d. 
redesignating the second subsection (c) as subsection (e), and by 
striMng out October 1,1979" in peiragraph (1) of such subsection (e) 
and inserting in lieu thereof "October 1,1982". 
PUBUC ASSISTANCE PAYMENTS TO TERRITORIAL JURISDICTIONS 
SEC. 305. (a) Section 1108(a) of the Social Security Act is amended— ^"*«' P ^26. 
(1) by striking out "with respect to the fiscal year 1972 and ^°^*' P ^^° 
each f^cal year thereafter other than the fiscal year 1979" in 
paragraphs (1)(E), (2)(E), and (3)(E) and inserting in lieu thereof in 
each instance "with respect to each of the fiscal years 1972 
through 1978"; and 
94 STAT. 530 
PUBLIC LAW 96-272—JUNE 17, 1980 
Ante, pp. 526, 
529. 
42 u s e 601, 
ante, p. 501. 
42 u s e 1318. 
(2) by striking out "with respect to the fiscal year 1979" in 
para^aphs (IXF), (2XF), and (3XF) and inserting in lieu thereof in 
each instance "with respect to the 
fiscal 
year 1979 and each fiscal 
year thereafter". 
(b) Section 1108(a) of such Act is further amended by striking out 
"under part A" in the matter preceding paragraph (1) and inserting 
in lieu thereof "imder parts A and E". 
(c) The last sentence of section 1118 of such Act is amended by 
striking out "when applied to quarters in the fiscal year ending 
September 30,1979". 
PERIOD WITHIN WHICH CERTAIN CLAIMS MUST BE FILED 
SEC. 306. (a) Part A of title XI of the Social Security Act is amended 
by adding after section 1131 the following new section: 
42 u s e 1320b-2. 
42 u s e 301, 601, 
701, 1201, 1351, 
1381, 1396, 1397. 
Effective date. 
42 u s e 1320b-2 
note. 
PERIOD WITHIN WHICH CERTAIN CLAIMS MUST BE FILED 
"SEC. 1132. (a) Notwithstanding any other provision of this Act (but 
subject to subsection (b)), any claim by a State for payment with 
respect to an expenditure made during any calendar quarter by the 
State— 
"(1) in carrying out a State plan approved under title I, IV, V, 
X, XIV, XVI, XIX, or XX of this Act, or 
"(2) under any other provision of this Act which provides (on 
an entitlement basis) for Federal financial participation in 
expenditures made under State plans or programs, 
shall be filed (in such form and manner as the Secretary shall by 
regulations prescribe) within the two-year period which begins on the 
first day of the calendar quarter immediately following such calendar 
quarter; and payment shall not be made under this Act on accoimt of 
any such expenditure if claim therefor is not made within such two-
year period; except that this subsection shall not be applied so as to 
deny payment with respect to any expenditure involving court-
ordered retroactive pajrments or audit exceptions, or adjustments to 
prior year costs. 
"(b) The Secretary shall waive the requirement imposed under 
subsection (a) with respect to the filing of any claim if he determines 
(in accordance with regulations) that there was good cause for the 
failure by the State to file such claim within the period prescribed 
under subsection (a). Any such waiver shall be only for such 
additional period of time as may be necessary to provide the State 
with a reasonable opportunity to file such claim. A failure to file a 
claim within such time period which is attributable to neglect or 
administrative inadequacies shall be deemed not to be for good 
cause.". 
(bXD The amendment made by subsection (a) shall be effective only 
in the case of claims filed on account of expenditures made in 
calendar quarters commencing on or after October 1,1979. 
(2) In the case of claims filed prior to the date of enactment of this 
Act on account of expenditures described in section 1132 of the Social 
Security Act made in calendar quarters commencing prior to October 
1,1979, there shall be no time limit for the payment of such claims. 
(3) In the case of such expenditures made in calendar quarters 
commencing prior to October 1, 1979, for which no claim has been 
filed on or bemre the date of 
enactment of 
this Act, payment shall not 
be made under this Act on account of any such expenditure unless 
PUBLIC LAW 96-272—JUNE 17, 1980 
94 STAT. 531 
claim therefor is filed (in such form and manner as the Secretary 
shsQl by regulation prescribe) prior to January 1,1981. 
(4) "Hie provisions of this subsection shall not be applied so as to 
deny payment with respect to any expenditure involving adjustments 
to prior year costs or court-ordered retroactive payments or audit 
exceptions. The Secretsuy may waive the requirements of paragraph 
(3) in the same manner as under section 1132(b) of the Social Security 
Act. 
(c) Notwithstanding any other provision of law, there shall be no 
time limit for the filing or payment of such claims except as provided 
in this section, unless such other provision of law, in imposing such a 
time limitation, specifically exempts such filing or payment from the 
provisions of 
this section. 
42 u s e 1320b-2 
note. 
INCENTIVES FOR STATES TO COLLECT CHILD SUPPORT OBUGATIONS 
SEC. 307. (a) The heading of section 458 of the Social Security Act is 
amended by inserting "STATES AND" after "TO". 
(b) Section 458(a) of 
such Act is amended— 
(1) by inserting "or a State on its own behalf makes," after 
"another State,", and 
(2) by striking out "or such other State" and inserting in 
lieu thereof ", such other State, or such State (in the case of a 
State which on its own behalf makes such enforcement and 
collection)". 
(c) Section 458 of such Act is further amended by adding at the end 
thereof the following new subsection: 
"(c) No pajnment under the preceding provisions of this section 
shall be made to any State or political subdivision thereof with 
respect to any amount collected and distributed by it unless such 
amount was collected and distributed in accordance with the State 
plan of the State approved by the Secretary as meeting the conditions 
required by section 454.". 
42 u s e 658. 
42 u s e 654. 
42 u s e 1396. 
42 u s e 1395CC. 
EXCHANGE OF INFORMATION ON TERMINATED OR SUSPENDED PROVIDERS 
SEC 308. (a) Section 1862(d) of the Social Security Act is amended 42 use I395y. 
by adding at the end thereof the following new paragraph: 
"(4) The Secretary shall promptly notify each State agency which 
administers or supervises the administration of a State plan 
approved under title XIX of any determination made imder the 
provisions of 
this subsection.". 
Qji) Section 1866(c) of such Act is amended by adding at the end 
thereof the following new paragraph: 
"(3) Where an agreement filed imder this title by a provider of 
services has been terminated by the Secretary, the Secretary shall 
promptly notify each State agency which administers or supervises 
the administration of a State plan approved under title XIX of such 
termination.". 
(c) Section 1902(a) of 
such Act is amended— 
(1) by striking out "and" at the end of paragraph (39); 
(2) by striking out the period at the end of paragraph (40) and 
inserting in lieu thereof ; and"; and 
(3) by inserting after paragraph (40) the following new 
paragraph: 
42 u s e 1396a. 
94 STAT. 532 
PUBLIC LAW 96-272—JUNE 17, 1980 
"(41) i)rovide that whenever a provider of services or any other 
person is terminated, suspended, or otherwise sanctioned or 
prohibited from participating under the State plan, the State 
agency shall promptly notify the Secretary of such action.". 
42 u s e 603 note. 
42 u s e 601. 
42 u s e 603. 
POSTPONEMENT OF IMPOSITION OF CERTAIN PENALTIES RELATING TO 
CHILD SUPPORT REQUIREMENTS 
SEC. 309. No reduction in the amount payable to any State under 
title IV of the Social Security Act with respect to fiscal year 1977 or 
fiscal year 1978 shall be made prior to October 1,1980, on account of 
the provisions of section 403(h) of such Act. 
Ante, p. 530. 
CONTINUING MEDICAID ELIGIBILITY FOR CERTAIN RECIPIENTS OP 
VETERANS' ADMINISTRATION PENSIONS 
SEC. 310. (a)(1) Part A of title XI of the Social Security Act is 
amended by adding after section 1132 (as added by section 305 of this 
Act) the following new section: 
42 u s e 1320b-3. 
42 u s e 301,1201, 
1351,1381, 601. 
38 u s e 521 note. 
42 u s e 1381. 
42 u s e 1396. 
Effective date. 
42 u s e 1320 b-3 
note. 
APPLICANTS OR RECIPIENTS UNDER PUBLIC ASSISTANCE PROGRAMS NOT 
TO BE REQUIRED TO MAKE ELECTION RESPECTING CERTAIN VETERANS' 
BENEFITS 
"SEC. 1133. (a) Notwithstanding any other provision of law (but 
subject to subsection (b)), no individual who is an applicant for or 
recipient of aid or assistance under a State plan approved under title 
I, X, XIV, or XVI, or part A of title IV, or of benefits under the 
Supplemental Security Income program established by title XVI 
shall— 
"(1) be required, as a condition of eligibility for (or of continu-
ing to receive) such aid, assistance, or benefits, to make an 
election under section 306 of the Veterans' and Survivors' 
Pension Improvement Act of 1978 with respect to pension paid by 
the Veterans' Administration, or 
"(2) by reason of failure or refusal to make such an election, be 
denied (or suffer a reduction in the amount of) such aid, assist-
ance, or benefits. 
"(b) The provisions of subsection (a) shall be applicable only with 
respect to an individual, who is an applicant for or recipient of aid, 
assistance, or benefits described in subsection (a), during a period 
with respect to which there is in effect— 
"(1) in case such individual is an applicant for or recipient of 
aid or assistance under a State plan referred to in subsection (a), 
in the State having such plan, or 
"(2) in case such individual is an applicant for or recipient of 
benefits under the Supplemental Security Income program 
established by title XVI, in the State in which the individual 
applies for or receives such benefits, 
a State plan for medical assistance, approved under title XIX, under 
which medical assistance is available to such individual only for 
periods for which such individual is a recipient of aid, assistance, or 
benefits described in subsection (a).". 
(2) The amendment made by paragraph (1) shall be effective on and 
after January 1, 1979; except that nothing contained in such amend-
ment shall be construed to authorize or require any payment (or 
increase in payment) of any aid or assistance or benefits referred to in 
section 1133(a) of the Social Security Act (as added by paragraph (1)) 
PUBLIC LAW 96-272—JUNE 17, 1980 
94 STAT. 533 
for any benefit period which begins prior to the date of enactment of 
this Act. 
(b)(1)(A) For purposes of section 1902(a)(10)(A) of the Social Security 
Act, any individual who, prior to the date of enactment of this Act 
and for the month of December 1978, was eligible for and received aid 
or assistance under a State plan approved under title I, X, XIV, or 
XVI, or part A of title IV of such Act, or was eligible for and received 
supplemental security income benefits under title XVI of such Act (or 
a supplementary payment described in section 13(c) of Public Law 
93-238), and was also in receipt of (or was a dependent, for purposes of 
chapter 15 of title 38, United States Code, as in effect on December 31, 
1978, of an individual in receipt of) pension from the Veterans' 
Administration for the month of December 1978 shall (subject to 
subparagraph (B)) be deemed to have been receiving such aid, 
assistance, supplemental security income, or supplementary pay-
ment, for each calendar month thereafter (prior to the month in 
which the provisions of this subparagraph cease to be effective with 
respect to him as determined under subparagraph (B)), if such 
individual would have been eligible therefor in December 1978 and in 
the month in which the provisions of this subparagraph cease to be 
effective with respect to him as determined under subparagraph (B) 
had the increase in income of such individual (or of the family of 
which such individual is a member), attributable to an election (made 
by such individual or another member of such individual's family) 
under section 306 of the Veterans' and Survivors' Pension Improve-
ment Act of 1978, not occurred. 
(B)(i) The provisions of subparagraph (A) shall take effect on 
January 1, 1979, and shall cease to be effective, in the case of any 
individual, for and after the first calendar month beginning more 
than 10 days after an "informed election" (as defined in subdivision 
(ii) of this subparagraph) has been made by such individual (or, if such 
individual is not eligible to make such an election, by a member of 
such individual's family who is eligible to make such an election 
which affects such individual's eligibility for aid, assistance, or 
benefits under a plan or program referred to in subparagraph (A)). 
(ii) The term "informed election" means an election made under 
section 306 of the Veterans' and Survivors' Pension Improvement Act 
of 1978 (or a reaffirmation of such an election which previously was 
made under such section 306) after the date of compliance by the 
Administrator of Veterans' Affairs (hereinafter in this section 
referred to as the "Administrator") with the provisions of paragraph 
(2)(A) with respect to the individual concerned. An individual who 
fails, within the time limits prescribed in paragraph (2)(B), to disaf-
firm an election previously made by such individual under such 
section 306 shall be deemed, for purposes of this section and such 
section 306, to have reaffirmed such election. 
(2)(A) The Administrator shall provide to each individual to whom 
section 1133 of the Social Security Act (as added by subsection (a)(1) of 
this section) applies and who is eligible to make or has made an 
election under section 306 of the Veterans' and Survivors' Pension 
Improvement Act of 1978, a written notice, in clear and understand-
able language, which (i) describes the consequences to such individual 
(and possibly to such individual's family), in terms of a determination 
or possible determination of ineligibility for medical assistance under 
a State plan approved under title XIX of the Social Security Act, of 
making an election with respect to pension under such section 306, (ii) 
describes the provisions of subparagraph (B) of this paragraph and 
42 u s e 1396a 
note. 
42 u s e 1396a. 
42 u s e 301, 
1201, 1351, 1381, 
601. 
42 u s e 1396a 
note. 
38 u s e 501 et 
seq. 
38 u s e 521 note. 
Effective date. 
"Informed 
election." 
38 u s e 521 note. 
42 u s e 1320b-3 
note. 
Ante, p. 532. 
38 u s e 521 note. 
42 u s e 1396. 
94 STAT. 534 
PUBLIC LAW 96-272—JUNE 17, 1980 
subsection (a) of 
this section, (iii) sets forth other relevant information 
that would be helpful to such individual in making an informed 
decision concerning such an election or the disafHrmation thereof, 
and (iv) in the case of any individual who has made such an election, 
is accompanied by a form prepared for the purpose of enabling such 
individual to file with the Administrator a written disaffirmation of 
such an election. 
(B) Notwithstanding any other provision of law— 
(i) any individual to whom section 1133 of the Social Security 
Ante, p. 532. 
Act (as added by subsection (aXl) of this section) applies may, 
within the 90-day period beginning with the day that there is 
mailed to such individual (at such individual's last known mail-
ing address) a notice referred to in subparagraph (A), disaffirm 
an election previously made by such individual under section 306 
of the Veterans' and Survivors' Pension Improvement Act of 
38 use 521 note. 
1978 by completing and mailing to the Administrator the form 
furnished such individual for such purpose by the Administrator 
pursuant to subparagraph (A), 
(ii) whenever any such individual files such a disaffirmation 
with the Administrator, the amount of pension payable to such 
individual shall be adjusted, beginning with the first calendar 
month which commences after the receipt by the Administrator 
of such disaffirmation, to the amount that such pension would 
have been if such an election by such individual had not been 
made, 
(iii) any individual who has filed a disaffirmation, pursuant to 
this subparagraph, of an election made by such individual under 
such section 306 may ag£un make an election thereunder, but 
such subsequent election may not be disaffirmed under this 
subsection, and 
(iv) no indebtedness to the United States, as a result of the 
disaffirmation by an individual, pursuant to this subparagraph, 
of an election made by such individual under such section 306 
shall be considered to arise from the payment of pension pursu-
ant to such an election. 
PUBLIC LAW 96-272—JUNE 17, 1980 
94 STAT. 535 
(C9 The Administrator shall promptly advise the Secretary of 
Health, Education, and Welfare, and provide identification of the 
individuals involved and other peortinent information with respect to 
(i) disafiBrmations (tf Sections made by individuals pursuant to 
subparagraph (B), (ii) individuals who, by failing to disaffirm within 
the 90-day period prescribed in subparagraph (B), are deemed 
to 
have 
reafOrmea elections previously made, and (iiD individuals who, after 
having disafBrmed an election under subparagraph (B), subsequently 
again make an election under section 806 of the Veterans' and 
Survivors' Pension Improvement Act of 1978. The Secretary, upon ^
^ use 521 note. 
receipt of any such inrormation with respect to an individual, shall 
promptly noofy tlie appropriate agencies administering Stete plans 
approved under title I, X, XIV, ^OX, and part A of title IV of the 
Social Security Act, and Stete agencies making supplemental pay- ii^^Jahm^^' 
mente pursuant to section 1616 of such Act or an agreement entered 42 use i382e 
into pursuant 
to 
section 212(a) of 
Public Law 93-66. 
8
7 stat. 155. 
Approved June 17, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 96-136 (eomm. on Ways and Means), No. 96-136, Pt. 2 (eomm. 
on Appropriations), and No. 96-900 (Comm. of Oonference). 
SENATE REPORT No. 96-336 (Oomm. on Finance). 
CONGRESSIONAL RECORD: 
Vol. 125 (1979): Aug. 2, considered and passed House. 
Oct. 25, 29, considered and passed Senate, amended. 
Vol. 126 (1980): June 13, House and Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS: 
Vol. 16, No. 25 (1980): June 17, Presidential statement.