[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2134 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 2134

To restore the American family, reduce illegitimacy, and reduce welfare 
                              dependence.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                 May 19 (legislative day, May 16), 1994

 Mr. Faircloth (for himself, Mr. Grassley, Mr. Brown, Mr. Dole, Mr. 
        Lott, Mr. Wallop, Mr. Smith, Mr. Kempthorne, Mr. Burns, Mr. 
        Nickles, Mr. Thurmond, Mr. Helms, Mr. Craig, Mr. Hatch, Mr. 
        McConnell, and Mr. D'Amato) introduced the following bill; 
        which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To restore the American family, reduce illegitimacy, and reduce welfare 
                              dependence.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Welfare Reform Act of 1994''.

SEC. 2. REFERENCES IN ACT; TABLE OF CONTENTS.

    (a) Amendments to Social Security Act.--Except as otherwise 
specifically provided, whenever in this Act an amendment is expressed 
in terms of an amendment to or repeal of a section or other provision, 
the reference shall be considered to be made to that section or other 
provision of the Social Security Act.
    (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title.
Sec. 2. References in Act; table of contents.
           TITLE I--WORK REQUIREMENTS FOR WELFARE RECIPIENTS

Sec. 101. Reform of the job opportunities and basic skills training 
                            program.
Sec. 102. Work requirement for able-bodied non-parents in food stamp 
                            program.
Sec. 103. Requirement that certain AFDC applicants conduct job search 
                            activities.
Sec. 104. Effective date.
       TITLE II--PROMOTION OF MARRIAGE AND SOCIAL RESPONSIBILITY

                      Subtitle A--Welfare Benefits

Sec. 201. Promotion of families.
Sec. 202. Benefit provisions regarding additional children.
Sec. 203. Provisions relating to paternity establishment.
   Subtitle B--Grants for Assistance to Children Born Out-Of-Wedlock

Sec. 211. Grants to States.
         Subtitle C--Tax Credit for Certain Low-Income Families

Sec. 221. Additional earned income credit for married individuals.
             Subtitle D--Expansion of Abstinence Education

Sec. 231. Abstinence education grants.
                  TITLE III--CHILD SUPPORT ENFORCEMENT

Sec. 301. National reporting of information relating to child support 
                            with respect to certain employees.
Sec. 302. State information systems.
Sec. 303. National information systems.
Sec. 304. Income withholding.
Sec. 305. Uniform terms in orders.
Sec. 306. Improvements in paternity establishment.
Sec. 307. Waiver of fee for certain individuals receiving child support 
                            collection or paternity determination 
                            services.
             TITLE IV--SPECIFIC REFORMS IN WELFARE SPENDING

Sec. 401. Income eligibility guidelines for school lunch and breakfast 
                            programs.
Sec. 402. Repeal of expansions to food stamp program.
Sec. 403. Repeal of empowerment zones and enterprise communities.
Sec. 404. Reduction of benefits to AFDC families who also receive 
                            public housing benefits.
Sec. 405. Repeal of the Davis-Bacon Act.
Sec. 406. Reduction of social services block grants.
Sec. 407. Restrictions on welfare benefits provided to aliens.
Sec. 408. Replacement of cash benefit with medical vouchers.
Sec. 409. Disability review required for SSI recipients who are 18 
                            years of age.
Sec. 410. Amount of funds available for low-income home energy 
                            assistance.
          TITLE V--STATE OPTIONS AND MISCELLANEOUS PROVISIONS

Sec. 501. Option to time limit welfare.
Sec. 502. Option to treat interstate immigrants under rules of former 
                            State with respect to AFDC benefits.
Sec. 503. Evaluation of training programs.
Sec. 504. Elimination of welfare benefits with respect to fugitive 
                            felons and probation and parole violators.
       TITLE VI--CAPPING THE AGGREGATE GROWTH OF WELFARE SPENDING

Sec. 601. Cap on growth of Federal spending on certain welfare 
                            programs.
Sec. 602. Establishment of welfare block grant program.
Sec. 603. Conversion of funding under certain welfare programs.
Sec. 604. Savings from welfare spending limits to be used for deficit 
                            reduction.
Sec. 605. Special rules with respect to grants for assistance to 
                            children born out-of-wedlock.
Sec. 606. Eligibility under the medicaid program.

           TITLE I--WORK REQUIREMENTS FOR WELFARE RECIPIENTS

SEC. 101. REFORM OF THE JOB OPPORTUNITIES AND BASIC SKILLS TRAINING 
              PROGRAM.

    (a) Amendment to State Plan Requirement.--Section 402(a)(19) (42 
U.S.C. 602(a)(19)) is amended to read as follows:
            ``(19) provide that the State has in effect and operation a 
        welfare and dependency reduction program which meets the 
        requirements of part F;''.
    (b) Replacement of Existing Program with a New Program.--
            (1) In general.--Part F of title IV (42 U.S.C. 481 et seq.) 
        is amended to read as follows:

          ``Part F--Workfare and Dependency Reduction Program

                          ``purpose of program

    ``Sec. 481. It is the purpose of this part to ensure that 
individuals receiving welfare assistance contribute services to their 
communities in exchange for such assistance.

                   ``establishment of state programs

    ``Sec. 482. As a condition of its participation in the program of 
aid to families with dependent children under part A, each State shall 
establish and operate a workfare and dependency reduction program (in 
this part referred to as the ``program'') which meets the requirements 
of this part.

                  ``program participation requirements

    ``Sec. 483. (a) Participation Requirements for Parents in the AFDC 
Unemployed Parent Program.--
            ``(1) Participation requirement for individuals.--In the 
        case of any family eligible for aid to families with dependent 
        children by reason of the unemployment of the parent who is the 
        principal earner, the State shall require one parent to 
        participate in--
                    ``(A) the community work service program described 
                in section 484 for not less than 32 hours per week and 
                to conduct job search activities for not less than 8 
                hours per week; or
                    ``(B) the benefits to wages program described in 
                section 485 for not less than 40 hours per week.
            ``(2) Participation rate requirement for states.--With 
        respect to individuals described in paragraph (1), each State 
        shall maintain a participation rate (as determined under 
        subsection (d)(1)) of 95 percent for quarters during fiscal 
        year 1995 and succeeding fiscal years.
    ``(b) Participation Requirement for Certain Noncustodial Parents.--
            ``(1) Participation requirement for individuals.--
                    ``(A) In general.--A State shall require any 
                individual described in subparagraph (B) to participate 
                in a State community work service program described in 
                section 484 in accordance with subparagraph (C).
                    ``(B) Individuals described.--An individual 
                described in this subparagraph is an individual--
                            ``(i) who resides in the State;
                            ``(ii) whose place of residence or 
                        employment is known by the State;
                            ``(iii) who is the noncustodial parent of a 
                        dependent child receiving aid to families with 
                        dependent children under part A; and
                            ``(iv) who is known by the State to have 
                        failed to pay required child support on behalf 
                        of such a child.
                    ``(C) Participation requirements.--If an individual 
                described in subparagraph (B)--
                            ``(i) is employed, such individual shall be 
                        required to work under the State community work 
                        service program for not less than 16 hours per 
                        week; or
                            ``(ii) is unemployed, such individual shall 
                        be required to--
                                    ``(I) work under the State 
                                community work service program for not 
                                less than 24 hours per week; and
                                    ``(II) conduct job search 
                                activities for not less than 16 hours 
                                per week.
            ``(2) Participation requirement for states.--With respect 
        to individuals described in paragraph (1), each State shall 
        maintain a participation rate (as determined under subsection 
        (d)(2)) of--
                    ``(A) 50 percent for quarters during fiscal year 
                1995; and
                    ``(B) 90 percent for quarters during fiscal year 
                1996 and succeeding fiscal years.
    ``(c) Participation Requirement for Adult Recipients of AFDC in 
Single-Adult Families.--
            ``(1) Participation requirement for individuals.--Except as 
        provided in subsection (a), the State shall require each adult 
        recipient of aid to families with dependent children in a 
        single-adult family to participate in--
                    ``(A) the State community work service program 
                described in section 484 for not less than 30 hours per 
                week; or
                    ``(B) the benefits to wages program described in 
                section 485 for not less than 30 hours per week.
            ``(2) Participation requirement on states.--With respect to 
        individuals described in paragraph (1), each State shall 
        maintain a participation rate (as determined under subsection 
        (d)(3)) of--
                    ``(A) 25 percent for calendar quarters during 
                fiscal year 1995; and
                    ``(B) 50 percent for calendar quarters during 
                fiscal year 1996 and succeeding fiscal years.
            ``(3) Work priority for families with older children.--
                    ``(A) In general.--Except as provided in section 
                402(a)(47)(A), if a single-adult family includes at 
                least one dependent child under age 5, the adult 
                recipient in such family shall not be required to 
                participate in the program under paragraph (1) unless 
                at least 80 percent of all adult recipients in single-
                adult families which include only children age 5 or 
                older are participating in the program.
                    ``(B) Family status.--Beginning on the date which 
                is 10 months after the date of the enactment of the 
                Welfare Reform Act of 1994, a family that is classified 
                by a State as a single-adult family including only 
                children age 5 or older shall continue to be so 
                classified regardless of whether an additional child 
                under age 5 becomes a member of the family.
            ``(4) State option regarding placement of individuals in 
        benefits to wages program.--The State may conduct a job 
        placement program under which the State contracts with private 
        entities to place individuals described in paragraph (1) with 
        qualified employers under the benefits to wages program under 
        section 485.
            ``(5) State option to provide educational activities or job 
        skills training program.--Subject to the approval of the 
        Secretary, a State may require not more than 20 percent of the 
        adult recipients required to participate in the program under 
        paragraph (2), on average during any quarter, to conduct 
        educational or job skills training.
            ``(6) Nonsubsidized employment countable as 
        participation.--
                    ``(A) In general.--An adult recipient may satisfy 
                the 30-hour per week work requirement under paragraph 
                (1)(A) by working solely in nonsubsidized employment or 
                by combining hours worked under a community work 
                service program and hours worked in nonsubsidized 
                employment.
                    ``(B) Nonsubsidized employment.--For purposes of 
                subparagraph (A), the term `nonsubsidized employment' 
                means employment with a private employer for wages.
            ``(7) Adult recipient.--For purposes of this subsection--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `adult recipient' means an 
                individual whose needs are met in whole or part with 
                payments of aid to families with dependent children.
                    ``(B) Individuals excluded.--The term `adult 
                recipient' shall not include--
                            ``(i) a dependent child (unless such child 
                        is the custodial parent of another dependent 
                        child); or
                            ``(ii) any parent who is a member of a 
                        family eligible for aid to families with 
                        dependent children by reason of the 
                        unemployment of the parent who is the principal 
                        earner.
            ``(8) Single-adult family.--For purposes of this 
        subsection, the term `single-adult family' means a family 
        receiving aid to families with dependent children which 
        includes one adult recipient and at least one dependent child.
    ``(d) Individual Option to Use Vouchers.--
            ``(1) In general.--
                    ``(A) Option permitted.--If an unemployed parent 
                described in subsection (a) or an adult parent in a 
                single adult family described in subsection (c) is 
                required by a State to participate in the State 
                benefits to wages program in order to ensure that the 
                State meets the participation requirements under 
                subsection (a)(2) or (c)(2), such individual shall have 
                an option to participate in such program using a 
                voucher (in the amount determined under subparagraph 
                (B)) that is payable to the employer which employs the 
                individual.
                    ``(B) Amount of voucher.--For purposes of 
                subparagraph (A), the amount of a voucher shall be an 
                amount equivalent to the amount of the wage subsidy 
                described in section 485(c).
            ``(2) Vouchers subject to requirements of benefits to wages 
        program.--The requirements of the benefits to wages program 
        under section 485 shall apply to individuals or employers 
        participating in such program using the vouchers described in 
        paragraph (1)(A) in the same manner as such requirements would 
        apply to any other individuals or employers participating in 
        such program.
            ``(3) Special rule relating to individuals participating in 
        a community work service program.--If an unemployed parent 
        described in subsection (a) or an adult parent in a single 
        adult family described in subsection (c) is participating in a 
        State community work service program, such individual shall 
        have the option to change such individual's participation to 
        participation in the State benefits to wages program using the 
        vouchers described in paragraph (1).
    ``(e) Determination of Participation Rates.--
            ``(1) Unemployed parents.--A State's participation rate for 
        purposes of subsection (a)(2) shall be the number, expressed as 
        a percentage, equal to--
                    ``(A) the average weekly number of individuals 
                described in subsection (a)(1) who participated in the 
                program under this part during such quarter, divided by
                    ``(B) the average weekly number of such individuals 
                who were required under subsection (a)(1) to 
                participate in the program under the part during such 
                quarter.
            ``(2) Noncustodial parents.--A State's participation rate 
        for purposes of subsection (b)(2) shall be the number, 
        expressed as a percentage, equal to--
                    ``(A) the average weekly number of individuals 
                described in subsection (b)(1) who participated in the 
                program under this part during such quarter, divided by
                    ``(B) the average weekly number of such individuals 
                who were required under subsection (b)(1) to 
                participate in the program under the part during such 
                quarter.
            ``(3) Adult recipients in single-adult families.--A State's 
        participation rate for purposes of subsection (c)(2) shall be 
        the number, expressed as a percentage, equal to--
                    ``(A) the average weekly number of individuals 
                described in subsection (c)(1) who participated in the 
                program under this part during such quarter, divided by
                    ``(B) the average weekly number of such individuals 
                who were required under subsection (c)(1) to 
                participate in the program under this part.

                    ``community work service program

    ``Sec. 484. (a) In General.--Each State with a plan approved under 
part A shall establish a community work service program.
    ``(b) Program Described.--An individual participating in a State 
community work service program shall work for a public or nonprofit 
private sector organization performing such tasks as determined 
appropriate by such organization.
    ``(c) Encouragement to Provide Child Care Services.--An individual 
participating in a State community work service program may satisfy the 
applicable participation requirement under subsection (c)(1)(A) of 
section 483 if such individual provides child care services to other 
individuals participating in the program in the manner, and for the 
period of time each week, determined appropriate by the State.
    ``(d) Modification to Payment Schedule for Participants.--Any 
payments of aid under part A or the Food Stamp Act of 1977 to the 
family of an individual participating in a State community work service 
program shall be made on a biweekly basis.
    ``(e) Benefits based on performance.--If an individual fails to 
meet the participation requirements imposed on such individual under 
section 483 with respect to a State community work service program due 
to an unexcused absence, the amount of aid under part A and the Food 
Stamp Act of 1977 to be received by the family of the individual 
participating in such program shall be reduced in proportion to the 
number of hours of uncompleted work or job search under such program.

                      ``benefits to wages program

    ``Sec. 485. (a) In General.--Each State with a plan approved under 
part A shall establish a benefits to wages program.
    ``(b) Program Described.--Under a State benefits to wages program, 
an individual shall work for a qualified employer (as defined in 
subsection (d)) and the Secretary shall pay a wage subsidy in the 
amount determined under subsection (c) to such employer on behalf of 
such individual. Such wage subsidy shall be in lieu of all or part of 
any benefits described in subsection (c) which the individual would 
otherwise be eligible to receive. The State benefits to wages program 
shall be designed to place individuals participating in the program in 
long-term nonsubsidized employment.
    ``(c) Amount of wage subsidy.--The amount of the wage subsidy for 
an individual for a month is an amount determined appropriate by the 
State which does not exceed the sum of--
            ``(1) the monthly amount that would otherwise be payable as 
        aid to families with dependent children to the family of such 
        individual, and
            ``(2) the monthly cash value of the food stamp benefits 
        that would otherwise be available to such individual's 
        household,
determined as of the first day of the first full month of the 
employment of such individual by a qualified employer.
    ``(d) Qualified Employer.--
            ``(1) In general.--For purposes of this subsection, an 
        employer is qualified to receive a wage subsidy under this 
        subsection if--
                    ``(A) the employer is a private entity;
                    ``(B) the employer is approved by the State to 
                participate in its benefits to wages program; and
                    ``(C) gross wages (as defined in section 209 but 
                without regard to any dollar limitation contained is 
                such section) received by an individual participating 
                in the benefits to wages program for any month are not 
                less than the amount determined under paragraph (2).
            ``(2) Wages based on performance.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an employer shall pay to an 
                individual participating in the benefits to wages 
                program for any month an amount equal to the product 
                of--
                            ``(i) the greater of--
                                    ``(I) the hourly wage subsidy 
                                amount determined under subparagraph 
                                (C); or
                                    ``(II) the greater of the Federal 
                                minimum wage or the applicable State 
                                minimum wage; and
                            ``(ii) the number of hours worked by such 
                        individual during such month.
                    ``(B) State option.--Notwithstanding clause (i) of 
                subparagraph (A), a State may require an employer to 
                pay an individual participating in the benefits to 
                wages program up to $5 for each hour worked by such 
                individual if the dollar amount of the hourly wage 
                required to be paid by an employer under such clause is 
                less than $5.
                    ``(C) Hourly wage subsidy amount.--The hourly wage 
                subsidy amount determined under this subparagraph with 
                respect to an individual for any month is an amount 
                equal to--
                            ``(i) the amount of the wage subsidy under 
                        subsection (c); divided by
                            ``(ii) the number of hours the individual 
                        is required to work in the benefits to wages 
                        program for the month.
            ``(3) Selection of employers.--In selecting employers under 
        subparagraph (B) of paragraph (1), the State shall give 
        priority to those employers demonstrating an ability to place 
        individuals in long-term nonsubsidized employment.
    ``(e) Treatment of Wages.--Under the State benefits to wages 
program, wages paid to an individual by a qualified employer shall be 
considered earned income for purposes of any provision of law, except 
that such wages shall not be taken into account in determining the 
eligibility of such individual for the programs described in subsection 
(c) during such individual's participation in the program.
    ``(f) Use of Federal Funds.--Notwithstanding any other provision of 
law, for purposes of computing the amount of the Federal payment to a 
State with respect to any amount determined under subsection (c) with 
respect to an individual, such amount shall be treated as if paid to 
the individual under the applicable program.
    ``(g) Limit on Participation.--
            ``(1) In general.--Except as provided in paragraph (2), an 
        individual's participation in a State benefits to wages program 
        shall be limited to 18 months.
            ``(2) State option.--A State may reduce the number of 
        months referred to in paragraph (1) as determined appropriate 
        by the State.

 ``penalties on individuals who fail to meet participation requirement

    ``Sec. 486. (a) In General.--Except as provided in subsection (b) 
and section 484(e), the State shall have the option to impose a penalty 
on any individual who fails to adequately participate in the program 
consisting of--
            ``(1) a reduction in the amount of aid to families with 
        dependent children received by the individual's family, as 
        determined appropriate by the State; or
            ``(2) a denial of eligibility for such aid to the 
        individual's family on a temporary or permanent basis, as 
        determined appropriate by the State.
    ``(b) Penalties Relating to Noncustodial Parents.--
            ``(1) No penalties against family for noncompliance of 
        noncustodial parent.--No penalty shall be imposed under this 
        section or section 484(e) against a family receiving aid to 
        families with dependent children in the case of a noncustodial 
        parent's failure to comply with section 483(a).
            ``(2) Penalty for certain noncustodial parents.--If an 
        individual described in paragraph (1) of section 483(a) 
        knowingly and willfully fails to participate in a State 
        community work service program in accordance with such section, 
        such individual shall be subject to imprisonment in accordance 
        with State law.

                      ``nondisplacement of workers

    ``Sec. 487. No organization or entity participating in a State 
community work service program or a State benefits to wages program 
shall replace any employed worker with an individual participating in 
the program under this part. Such an individual may be placed in any 
position offered by such organization or entity--
            ``(1) that is a new position;
            ``(2) that is a position that became available in the 
        normal course of conducting the business of the organization or 
        entity; or
            ``(3) that involves performing work that would otherwise be 
        performed on an overtime basis by a worker who is not an 
        individual participating in the program under this part.
            (2) Conforming amendments.--(A) Section 402(a) (42 U.S.C. 
        602(a)) is amended--
                    (i) by striking ``and'' at the end of paragraph 
                (44);
                    (ii) by striking the period at the end of paragraph 
                (45) and inserting ``; and''; and
                    (iii) by inserting after paragraph (45) the 
                following new paragraph:
            ``(46) provide that the State agency shall provide 
        assurances satisfactory to the Secretary that the State has in 
        effect laws providing for the imprisonment of any individual 
        who fails to comply with section 483(b)(1) for a term 
        determined appropriate by the State.''.
            (B) Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 
        2025) is amended by adding at the end the following new 
        subsection:
    ``(l) If a State agency of a State informs the Secretary that an 
individual who is participating in a benefits to wages program under 
the welfare and dependency reduction program carried out under part F 
of title IV of the Social Security Act is a member of a household that 
participates in the food stamp program--
            ``(1) the Secretary shall pay to the State an amount equal 
        to the value of the food stamp benefits the household is 
        otherwise eligible to receive under this Act; and
            ``(2) the State shall expend the amount in accordance with 
        such part rather than for food stamp benefits the household 
        would receive but for the operation of this subsection.''.
    (c) Payments to States for Welfare and Dependency Reduction 
Programs.--
            (1) In general.--Subsection (k) of section 403 (42 U.S.C. 
        603) is amended to read as follows:
    ``(k)(1) For purposes of conducting its workfare and dependency 
reduction program under part F, a State shall receive payments for a 
calendar quarter in an amount equal to the sum of--
            ``(A) the product of--
                    ``(i) the applicable dollar amount under paragraph 
                (2)(A), and
                    ``(ii) the average weekly number of individuals who 
                are unemployed parents described in section 483(a)(1) 
                who participated in the program under part F during 
                such quarter;
            ``(B) the product of--
                    ``(i) the applicable dollar amount under paragraph 
                (2)(A), and
                    ``(ii) the average weekly number of individuals who 
                are noncustodial parents described in section 483(b)(1) 
                who participated in the program under part F during 
                such quarter; and
            ``(C) the product of--
                    ``(i) the applicable dollar amount under paragraph 
                (2)(B), and
                    ``(ii) the average weekly number of individuals who 
                are adult recipients of aid to families with dependent 
                children in single-adult families described in section 
                483(c)(1) who participated in the program under part F 
                during such quarter.
    ``(2)(A) For purposes of subparagraphs (A) and (B) of paragraph 
(1), the applicable dollar amount is--
            ``(i) for fiscal year 1995, $250; and
            ``(ii) for fiscal year 1996 and succeeding fiscal years, 
        the amount determined under this subparagraph for the preceding 
        fiscal year updated by the percentage change in the consumer 
        price index for all urban consumers (United States city 
        average) during such preceding fiscal year.
    ``(B)(i) Except as provided in clause (ii), for purposes of 
subparagraph (C) of paragraph (1), the applicable dollar amount is--
            ``(I) for fiscal year 1995, $625; and
            ``(II) for fiscal year 1996 and succeeding fiscal years, 
        the amount determined under this clause for the preceding 
        fiscal year updated by the percentage change in the consumer 
        price index for all urban consumers (United States city 
        average) during such preceding fiscal year.
    ``(ii) If an individual described in subparagraph (C) of paragraph 
(1) used a voucher under section 483(d) in connection with the 
individual's participation in a benefits to wages program or was placed 
in a benefits to wages program under section 485 through a job 
placement program under section 483(c)(4), for purposes of such 
subparagraph, the applicable dollar amount is--
            ``(I) for fiscal year 1995, $675; and
            ``(II) for fiscal year 1996 and succeeding fiscal years, 
        the amount determined under this clause for the preceding 
        fiscal year updated by the percentage change in the consumer 
        price index for all urban consumers (United States city 
        average) during such preceding fiscal year.
            (2) Conforming amendment.--Section 403 (42 U.S.C. 603) is 
        amended by striking subsection (l).
    (d) Adjustments to Matching Percentage for AFDC Administrative 
Costs.--
            (1) In general.--Section 403(a)(3) (42 U.S.C. 603(a)(3)) is 
        amended by striking ``50 percent'' and inserting ``the 
        applicable percentage for such quarter (as determined under 
        subsection (o))''.
            (2) Applicable percentage.--Section 403 (42 U.S.C. 603) is 
        amended by adding at the end the following new subsection:
    ``(o)(1) The applicable percentage determined under this subsection 
for a quarter is a percentage equal to the average of the percentages 
determined under paragraph (2) for each category of individuals 
described in paragraph (3).
    ``(2) The percentage determined under this paragraph for a category 
of individuals described in paragraph (3) for a quarter is--
            ``(A) 50 percent if the average weekly number of 
        individuals in the category who actually participate in the 
        State's workfare and dependency reduction program under part F 
        during the quarter exceeds 99 percent of the average weekly 
        number of individuals in the category required to participate 
        in such program in accordance with the applicable State 
        participation rate requirement for such category under section 
        483;
            ``(B) 40 percent, if the average weekly number of 
        individuals in the category who actually participate in such 
        program for a quarter is at least 90 percent but less than 100 
        percent of the average weekly number of individuals in the 
        category required to participate in such program in accordance 
        with the applicable State participation rate requirement for 
        such category under section 483;
            ``(C) 25 percent, if the average weekly number of 
        individuals in the category who actually participate in such 
        program for a quarter is at least 70 percent but less than 90 
        percent of the average weekly number of individuals in the 
        category required to participate in such program in accordance 
        with the applicable State participation rate requirement for 
        such category under section 483; and
            ``(D) 0 percent, if the average weekly number of 
        individuals in the category who actually participate in such 
        program for a quarter is less than 70 percent of the average 
        weekly number of individuals in the category required to 
        participate in such program in accordance with the applicable 
        State participation rate requirement for such category under 
        section 483.
    ``(3) The categories of individuals described in this paragraph are 
the following:
            ``(A) Individuals who are unemployed parents described in 
        section 483(a)(1).
            ``(B) Individuals who are noncustodial parents described in 
        section 483(b)(1).
            ``(C) Individuals who are adult recipients of aid to 
        families with dependent children described in section 
        483(c)(1).''.
    (e) Educational Activities for Custodial Parents Under 19.--Section 
402(a) (42 U.S.C. 602(a)), as amended by subsection (b)(2), is 
amended--
            (1) by striking ``and'' at the end of paragraph (45);
            (2) by striking the period at the end of paragraph (46) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (46) the following new 
        paragraph:
            ``(47) provide that--
                    ``(A) each custodial parent receiving aid under the 
                plan who has not attained 19 years of age and has not 
                successfully completed a high-school education (or its 
                equivalent) shall participate in an educational 
                activity; and
                    ``(B) the State agency may--
                            ``(i) require a parent described in 
                        subparagraph (A) to participate in educational 
                        activities directed toward the attainment of a 
                        high-school diploma or its equivalent on a 
                        full-time (as defined by the educational 
                        provider) basis; or
                            ``(ii) require a parent described in 
                        subparagraph (A) to participate in training or 
                        work activities (in lieu of the educational 
                        activities under such subparagraph) if such 
                        parent fails to make good progress in 
                        successfully completing such educational 
                        activities or if it is determined (prior to any 
                        assignment of the individual to such 
                        educational activities) pursuant to an 
                        educational assessment that participation in 
                        such educational activities is inappropriate 
                        for such parent.''.
    (f) Amendments Regarding Earned Income Tax Credit.--
            (1) In general.--Subsection (e) of section 3507 of the 
        Internal Revenue Code of 1986 (relating to earned income 
        eligibility certificates) is amended by adding at the end the 
        following new paragraph:
            ``(6) Special rule with respect to certain employees.--An 
        employer shall obtain an earned income eligibility certificate 
        from each employee who is employed by such employer under the 
        benefits to wages program under section 485 of the Social 
        Security Act.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to taxable years beginning after December 31, 1994.

SEC. 102. WORK REQUIREMENT FOR ABLE-BODIED NON-PARENTS IN FOOD STAMP 
              PROGRAM.

    (a) In General.--Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 
2015) is amended by adding at the end the following new subsection:
    ``(i)(1) Except as otherwise provided in this subsection, no 
individual who is a member of a household that is otherwise eligible to 
receive food stamps shall be eligible to receive food stamps as a 
member of that or any other household if the individual has not 
performed at least 32 hours of work on behalf of a State or a political 
subdivision of a State, through a program established by the State or 
political subdivision, during the month preceding the month of an 
allotment.
    ``(2) A household member shall be exempt from the requirements of 
paragraph (1) if the member is--
            ``(A) a parent residing with a dependent child under 18 
        years of age;
            ``(B) a member of a household with responsibility for the 
        care of an incapacitated person;
            ``(C) mentally or physically unfit;
            ``(D) under 18 years of age; or
            ``(E) 63 years of age or older.
    ``(3) No State or political subdivision of a State participating in 
a program established under this subsection shall replace any employed 
worker with an individual participating in the program. Such an 
individual may be placed in any position offered by the State or 
political subdivision that--
            ``(A) is a new position;
            ``(B) is a position that became available in the normal 
        course of conducting the business of the State or political 
        subdivision; or
            ``(C) involves performing work that would otherwise be 
        performed on an overtime basis by a worker who is not an 
        individual participating in the program established under this 
        subsection.
    ``(4)(A) The Secretary shall make a monthly payment to each State 
and political subdivision of a State that operates a program 
established under this subsection for the month preceding the month of 
an allotment.
    ``(B) The amount of a payment that is made to a State or political 
subdivision under subparagraph (A) shall equal the product obtained by 
multiplying--
            ``(i) $20 (as adjusted under subparagraph (C)); times
            ``(ii) the number of individuals who performed at least 32 
        hours of work on behalf of the State or political subdivision, 
        through a program established by the State or political 
        subdivision under this subsection, during the month preceding 
        the month of the allotment.
    ``(C) The Secretary shall adjust the amount referred to in 
subparagraph (B)(i) on October 1, 1995, and each October 1 thereafter, 
to reflect changes in the Consumer Price Index for All Urban Consumers 
published by the Bureau of Labor Statistics, as appropriately adjusted 
by the Bureau of Labor Statistics after consultation with the Secretary 
concerning the application of the Index to this paragraph, for the 12 
months ending the preceding June 30.''.
    (b) Conforming Amendments.--
            (1) Section 6(d)(4)(M)(ii) of the Food Stamp Act of 1977 (7 
        U.S.C. 2015(d)(4)(M)(ii)) is amended by striking ``section 16 
        (a), (c), and (h)'' and inserting ``subsections (a) and (c) of 
        section 16''.
            (2) Section 16 of such Act (7 U.S.C. 2025) is amended--
                    (A) by striking subsection (h); and
                    (B) by redesignating subsections (i) and (j) as 
                subsections (h) and (i), respectively.
            (3) Section 20 of such Act (7 U.S.C. 2029) is amended by 
        striking subsection (g).
            (4) Section 21 of such Act (7 U.S.C. 2030) is amended--
                    (A) in subsection (b)(4)(B)--
                            (i) by striking ``under--'' and all that 
                        follows through ``subsections (a)'' in clause 
                        (i) and inserting ``under subsections (a)''; 
                        and
                            (ii) by striking ``program; and'' and all 
                        that follows through ``except that'' and 
                        inserting ``program, except that''; and
                    (B) in subsection (c)(2)(B), by striking 
                ``subsections (a), (g), and (h) of section 16'' and 
                inserting ``subsections (a) and (g) of section 16''.
            (5) Section 22(d)(1)(B)(ii) of such Act (7 U.S.C. 
        2031(d)(1)(B)(ii)) is amended by striking ``subsections (a), 
        (g), (h)(2), and (h)(3) of section 16'' and inserting 
        ``subsections (a) and (g) of section 16''.
    (c) Effective Date.--The amendments made by this section shall 
become effective 180 days after the date of enactment of this Act.

SEC. 103. REQUIREMENT THAT CERTAIN AFDC APPLICANTS CONDUCT JOB SEARCH 
              ACTIVITIES.

    (a) Delay in Benefit for Certain Families.--Section 402(a) (42 
U.S.C. 602(a)), as amended by section 101 (b)(2)(A) and (e), is 
amended--
            (1) by striking ``and'' at the end of paragraph (46);
            (2) by striking the period at the end of paragraph (47) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (47) the following new 
        paragraph:
            ``(48) provide that if a family is applying for aid under 
        the plan and such family--
                    ``(A) has sufficient liquid assets to meet the 
                basic needs of the family for a 1-month period (as 
                determined by the State); and
                    ``(B) does not include any children under age 5;
        such family shall not receive such aid until a member of the 
        family who has attained age 18 has conducted job search 
        activities determined appropriate by the State for a 1-month 
        period.''.
    (b) Job Search Requirement for Certain Individuals.--Section 402(a) 
(42 U.S.C. 602(a)), as amended by section 101 (b)(2)(A) and (e) and 
subsection (a), is amended--
            (1) by striking ``and'' at the end of paragraph (47);
            (2) by striking the period at the end of paragraph (48) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (48) the following new 
        paragraph:
            ``(49) provide that if a family applying for aid under the 
        plan--
                    ``(A) is not described in paragraph (48), and
                    ``(B) does not include any children under age 5,
        a member of the family who has attained age 18 shall conduct 
        job search activities determined appropriate by the State 
        during the first 1-month period for which the family receives 
        such aid.''.

SEC. 104. EFFECTIVE DATE.

    Except as otherwise specifically provided, the amendments made by 
this title shall take effect on October 1, 1994.

       TITLE II--PROMOTION OF MARRIAGE AND SOCIAL RESPONSIBILITY

                      Subtitle A--Welfare Benefits

SEC. 201. PROMOTION OF FAMILIES.

    (a) Sense of the Congress.--It is the sense of the Congress that--
            (1) marriage is the foundation of a successful society;
            (2) marriage is an essential social institution which 
        promotes the interests of children and society at large;
            (3) the negative consequences of an out-of-wedlock birth on 
        the child, the mother, and society are well documented as 
        follows:
                    (A) the illegitimacy rate among black Americans was 
                26 percent in 1965, but today the rate is 68 percent 
                and climbing;
                    (B) the illegitimacy rate among white Americans has 
                risen tenfold, from 2.29 percent in 1960 to 22 percent 
                today;
                    (C) the total of all out-of-wedlock births between 
                1970 and 1991 has risen from 10 percent to 30 percent 
                and if the current trend continues, 50 percent of all 
                births by the year 2015 will be out-of-wedlock;
                    (D) 82 percent of illegitimate births among whites 
                are to women with a high school education or less;
                    (E) the one-parent family is six times more likely 
                to be poor than the two-parent family;
                    (F) children born into families receiving welfare 
                assistance are three times more likely to be on welfare 
                when they reach adulthood;
                    (G) teenage single parent mothering is the single 
                biggest contributor to low birth weight babies;
                    (H) children born out-of-wedlock are more likely to 
                experience low verbal cognitive attainment, child 
                abuse, and neglect;
                    (I) young people from single parent or stepparent 
                families are two to three times more likely to have 
                emotional or behavioral problems than those from intact 
                families;
                    (J) young white women who were raised in a single 
                parent family are 164 percent more likely to have 
                children out-of-wedlock, 111 percent more likely to 
                become parents as teenagers, and 92 percent more likely 
                to have their marriages end in divorce;
                    (K) the younger the single parent mother, the less 
                likely she is to finish high school;
                    (L) young women who have children before finishing 
                high school are more likely to receive welfare 
                assistance for a longer period of time;
                    (M) between 1985 and 1990, the public cost of 
                births to teenage mothers under the aid to families 
                with dependent children program, the food stamp 
                program, and the medicaid program has been estimated at 
                $120 billion;
                    (N) the absence of a father in the life of a child 
                has a negative effect on school performance and peer 
                adjustment;
                    (O) the likelihood that a young black man will 
                engage in criminal activities doubles if he is raised 
                without a father and triples if he lives in a 
                neighborhood with a high concentration of single parent 
                families; and
                    (P) the greater the incidence of single parent 
                families in a neighborhood, the higher the incidence of 
                violent crime and burglary; and
            (4) in light of this demonstration of the crisis in our 
        Nation, the reduction of out-of-wedlock births is an important 
        government interest and the policy contained in provisions of 
        this title address the crisis.
    (b) Elimination of AFDC Benefits to Young Unwed Parents.--
            (1) In general.--
                    (A) State plan amendment.--Section 402(a) (42 
                U.S.C. 602(a)), as amended by sections 101 (b)(2)(A) 
                and (e) and 103 (a) and (b), is amended--
                            (i) by striking ``and'' at the end of 
                        paragraph (48);
                            (ii) by striking the period at the end of 
                        paragraph (49) and inserting ``; and''; and
                            (iii) by inserting after paragraph (49) the 
                        following new paragraph:
            ``(50)(A) except as provided in subparagraph (B), if a 
        child is born to an individual who is unmarried and who has not 
        attained age 21 (or another age that exceeds 21, as determined 
        appropriate by the State), aid to families with dependent 
        children under the State plan shall not be payable with respect 
        to the child and the parents of the child; and
            ``(B) provide that subparagraph (A) shall not apply--
                    ``(i) if, after the birth of the child--
                            ``(I) the custodian of the child marries an 
                        individual who assumes lawful paternity or 
                        permanent legal guardianship and financial 
                        responsibility for the child; or
                            ``(II) the child is legally adopted;
                    ``(ii) if the parents of the dependent child were 
                married during the 10-month period preceding the birth 
                of the child and 1 parent died prior to the birth of 
                the child; or
                    ``(iii) with respect to the child after the child 
                has attained age 18.''.
                    (B) Effective date.--The amendments made by 
                subparagraph (A) shall apply to children born on or 
                after the date that is 1 year after the date of the 
                enactment of this Act.
            (2) Increase in applicable age.--
                    (A) In general.--Section 402(a)(50)(A) (42 U.S.C. 
                602(a)(50)(A)), as added by paragraph (1), is amended 
                by striking ``21'' each place it appears and inserting 
                ``26''.
                    (B) Effective date.--The amendments made by 
                subparagraph (A) shall apply to children born on or 
                after the date that is 4 years after the date of the 
                enactment of this Act.
    (c) Food Stamps.--
            (1) In general.--
                    (A) Elimination of benefit.--Section 6 of the Food 
                Stamp Act of 1977 (7 U.S.C. 2015), as amended by 
                section 102(a), is amended by adding at the end the 
                following new subsection:
    ``(j)(1) Except as provided in paragraph (2), if a child is born to 
an individual who is unmarried and who has not attained age 21 (or 
another age that exceeds 21, as determined appropriate by the State), 
the child and the parents of the child shall be ineligible to receive 
food stamps.
    ``(2) Paragraph (1) shall not apply--
            ``(A) if after the birth of the child--
                    ``(i) the custodian of the child marries an 
                individual who assumes lawful paternity or permanent 
                legal guardianship and financial responsibility for the 
                child; or
                    ``(ii) the child is legally adopted;
            ``(B) if the parents of the child were married during the 
        10-month period preceding the birth of the child and 1 parent 
        died prior to the birth of the child; or
            ``(C) with respect to the child after the child has 
        attained age 18.''.
                    (B) Conforming amendment.--Paragraph (1) of the 
                second sentence of section 3(o) of such Act (7 U.S.C. 
                2012(o)) is amended by inserting after the comma at the 
                end the following: ``except as provided in subsection 
                (j) of section 6,''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to children born on or after the 
                date that is 1 year after the date of enactment of this 
                Act.
            (2) Increase in applicable age.--
                    (A) In general.--Section 6(j)(1) of the Food Stamp 
                Act of 1977 (as added by paragraph (1)) is amended by 
                striking ``21'' each place it appears and inserting 
                ``26''.
                    (B) Effective date.--The amendment made by this 
                paragraph shall apply to children born on or after the 
                date that is 4 years after the date of enactment of 
                this Act.
    (d) Housing Programs.--
            (1) In general.--
                    (A) Promotion of families.--The United States 
                Housing Act of 1937 (42 U.S.C. 1437 et seq.) is 
                amended--
                            (i) in section 6, by adding at the end the 
                        following new subsection:
    ``(q) Promotion of Families.--
            ``(1) In general.--Each contract described in subsection 
        (a) shall provide that, if a child is born to an individual who 
        is unmarried and who has not attained age 21, neither the child 
        nor the parents of the child shall be eligible to receive 
        assistance under this Act.
            ``(2) Exception.--Paragraph (1) shall not apply--
                    ``(A) if after the birth of the child--
                            ``(i) the custodian of the child marries an 
                        individual who assumes lawful paternity or 
                        permanent legal guardianship and financial 
                        responsibility for the child; or
                            ``(ii) the child is legally adopted;
                    ``(B) if the parents of the child were married 
                during the 10-month period preceding the birth of the 
                child and 1 parent died prior to the birth of the 
                child; or
                    ``(C) with respect to the child after the child has 
                attained age 18.''; and
                            (ii) in section 8, by adding at the end the 
                        following new subsection:
    ``(z) Promotion of Families.--
            ``(1) In general.--Each contract to make assistance 
        payments described in subsection (a) shall provide that, if a 
        child is born to an individual who is unmarried and who has not 
        attained age 21, neither the child nor the parents of the child 
        shall be eligible to receive assistance under this section.
            ``(2) Exception.--Paragraph (1) shall not apply--
                    ``(A) if after the birth of the child--
                            ``(i) the custodian of the child marries an 
                        individual who assumes lawful paternity or 
                        permanent legal guardianship and financial 
                        responsibility for the child; or
                            ``(ii) the child is legally adopted;
                    ``(B) if the parents of the child were married 
                during the 10-month period preceding the birth of the 
                child and 1 parent died prior to the birth of the 
                child; or
                    ``(C) with respect to the child after the child has 
                attained age 18.''.
                    (B) Effective date.--The amendments made by 
                subparagraph (A) shall apply to children born on or 
                after the date that is 1 year after the date of the 
                enactment of this Act.
            (2) Automatic increase in applicable age.--
                    (A) In general.--Section 6(q) of the United States 
                Housing Act of 1937 (42 U.S.C. 1437d(q)), as added by 
                paragraph (1)(A)(i), is amended by striking ``21'' and 
                inserting ``26''.
                    (B) In general.--Section 8(z) of the United States 
                Housing Act of 1937 (42 U.S.C. 1437f(z)), as added by 
                paragraph (1)(A)(ii), is amended by striking ``21'' and 
                inserting ``26''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to children born on or after the 
                date that is 4 years after the date of the enactment of 
                this Act.
            (3) Discretionary increase in applicable age.--
        Notwithstanding any other provision of law, beginning on the 
        effective date of the amendments made by paragraph (1)(A), the 
        Governor of each State shall have the option to increase the 
        minimum age for assistance set forth in section 6(q) or 8(z) of 
        United States Housing Act of 1937, as added by paragraph 
        (1)(A), for individuals residing in the State.

SEC. 202. BENEFIT PROVISIONS REGARDING ADDITIONAL CHILDREN.

    (a) AFDC.--
            (1) In general.--Section 402(a) (42 U.S.C. 602(a)), as 
        amended by sections 101 (b)(2)(A) and (e), 103 (a) and (b), and 
        201(b), is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (49);
                    (B) by striking the period at the end of paragraph 
                (50) and inserting ``; and''; and
                    (C) by inserting after paragraph (50) the following 
                new paragraph:
            ``(51)(A) provide that aid to families with dependent 
        children under the State plan shall not be payable with respect 
        to a child if the custodial parent of such child was, at the 
        time of the child's birth--
                    ``(i) a recipient of aid under the State plan; or
                    ``(ii) an individual who received such aid anytime 
                during the 10-month period ending with the birth of the 
                child; and
            ``(B) provide that subparagraph (A) shall not apply with 
        respect to the child after the child has attained age 18.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall apply to children born on or after the date that is 1 
        year after the date of the enactment of this Act.
    (b) Food Stamps.--
            (1) In general.--Section 6 of the Food Stamp Act of 1977 (7 
        U.S.C. 2015), as amended by section 102(a) and 201(c), is 
        amended by adding at the end the following new subsection:
    ``(k) If a child is born to a parent that is a recipient of aid to 
families with dependent children under a State plan under section 402 
of the Social Security Act, or a parent who received such aid anytime 
during the 10-month period ending with the birth of the child, the 
child shall be ineligible to participate in the food stamp program 
until the child attains age 18.''.
            (2) Conforming amendment.--Paragraph (1) of the second 
        sentence of section 3(o) of such Act (7 U.S.C. 2012(o)), as 
        amended by section 201(c)(1)(B), is amended by striking 
        ``subsection (j)'' and inserting ``subsections (j) and (k)''.
            (3) Effective date.--The amendment made by paragraph (1) 
        shall apply to children born on or after the date that is 1 
        year after the date of enactment of this Act.

SEC. 203. PROVISIONS RELATING TO PATERNITY ESTABLISHMENT.

    (a) In General.--Section 402(a) (42 U.S.C. 602(a)), as amended by 
sections 101(b)(2)(A) and (e), 103 (a) and (b), 201(b), and 202(a), is 
amended--
            (1) by striking ``and'' at the end of paragraph (50);
            (2) by striking the period at the end of paragraph (51) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (51) the following new 
        paragraph:
            ``(52) provide that--
                    ``(A) except as provided in subparagraphs (B) and 
                (C), if a family applying for aid under this part 
                includes a child who has not attained age 18 and who 
                was born on or after January 1, 1993, with respect to 
                whom paternity has not been established, aid to 
                families with dependent children paid to such family 
                under the State plan for any month shall be reduced--
                            ``(i) by the amount of aid allocable to 
                        such child (until the child attains age 18); 
                        and
                            ``(ii) if the parent or caretaker relative 
                        of such child is not the parent or caretaker 
                        relative of another child for whom aid is 
                        available, by the amount of aid allocable to 
                        such parent or caretaker relative;
                    ``(B) notwithstanding subparagraph (A), aid under 
                the State plan shall be available with respect to a 
                dependent child who is up to 4 months of age for whom 
                paternity has not been established if the parent or 
                caretaker relative of the child provides the name, 
                address, and such other identifying information as the 
                State may require of an individual who may be the 
                father of the child; and
                    ``(C) the State may exempt up to 10 percent of all 
                families applying for aid under this part which include 
                a child who was born on or after January 1, 1993, and 
                with respect to whom paternity has not been 
                established, from the reduction imposed under 
                subparagraph (A).''.
    (b) Provision of Aid in Violation of Paternity Establishment 
Requirements.--Section 404 (42 U.S.C. 604) is amended by adding at the 
end the following new subsection:
    ``(e) If a State expends funds for aid to families with dependent 
children in violation of the requirements of paragraph (51) in any 
fiscal year but such expenditures do not constitute a failure to 
substantially to comply with such requirements, the Secretary shall 
reduce the amount to be paid to such State under this part for the 
succeeding fiscal year by an amount equal to the amount of funds 
misused by such State.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to individuals applying for aid to families with 
dependent children under part A of title IV of the Social Security Act 
(42 U.S.C. 601 et seq.) in calendar quarters beginning on or after the 
date that is 60 days after the date of the enactment of this Act.

   Subtitle B--Grants for Assistance to Children Born Out-Of-Wedlock

SEC. 211. GRANTS TO STATES.

    Title IV (42 U.S.C. 601 et seq.) is amended by inserting after part 
B the following:

    ``Part C--Grants for Assistance to Children Born Out-Of-Wedlock

                               ``purpose

    ``Sec. 440. (a) In General.--The purpose of this part is to grant a 
qualified State the flexibility and resources necessary to provide such 
services and activities as the State deems appropriate to discourage 
out-of-wedlock births and care for children born out-of-wedlock.
    ``(b) Qualified State Defined.--For purposes of this part, the term 
`qualified State' means a State which--
            ``(1) has a plan approved under section 402, and
            ``(2) has certified to the Secretary that--
                    ``(A) the payments made to the State under this 
                part will be used by the State in accordance with this 
                part, and
                    ``(B) not less frequently than every 2 years, the 
                State will audit the expenditures of the amounts paid 
                to the State under this part.

                          ``use of grant funds

    ``Sec. 441. (a) In General.--Except as provided in subsection (b), 
each qualified State that receives grant funds under this part may use 
such funds--
            ``(1) to establish or expand programs to reduce out-of-
        wedlock pregnancies,
            ``(2) to promote adoption,
            ``(3) to establish and operate orphanages,
            ``(4) to establish and operate closely supervised 
        residential group homes for unwed mothers, or
            ``(5) in any manner that the State deems appropriate to 
        accomplish the purpose of this part.
    ``(b) Prohibitions on Use of Funds.--
            ``(1) No individual payments.--A qualified State that 
        receives grant funds under this part shall not, directly or 
        indirectly, use such funds for providing payments to an 
        individual who is the parent of a child born out-of-wedlock and 
        such child if the parent and the child live--
                    ``(A) in a household headed by such parent,
                    ``(B) in the household of a relative, or
                    ``(C) in any other conventional residential or 
                community setting.
            ``(2) No funds used for abortion.--No grant funds received 
        by a qualified State under this part shall be used for making 
        abortion available as a method of family planning or for any 
        counseling or advising with respect to abortion.
    ``(c) Penalty for Misuse of Funds.--If a qualified State fails to 
comply with subsection (b) in any fiscal year, the Secretary shall 
reduce the amount to be paid to such State under this part for the 
succeeding fiscal year by an amount equal to the amount of funds 
misused by such State.

                           ``amount of grant

    ``Sec. 442. (a) In General.--The Secretary shall make a payment to 
each qualified State for fiscal years 1995 through 1999 in an amount 
equal to the Federal savings amount for the State determined under 
subsection (b)(1) for the applicable fiscal year.
    ``(b) Determination of Grant Amount.--
            ``(1) In general.--The Federal savings amount for a State 
        for a fiscal year is an amount that is equal to the product 
        of--
                    ``(A) the State per capita amount for the fiscal 
                year (as determined under paragraph (2)); and
                    ``(B) the State's excluded population (as 
                determined under paragraph (3)).
            ``(2) Per capita amount.--The State per capita amount for a 
        fiscal year determined under this paragraph is the sum of--
                    ``(A) the average per capita amount that the 
                Secretary estimates the State will receive under 
                section 403 of the Social Security Act during the 
                fiscal year for providing aid to families with 
                dependent children to individuals eligible to receive 
                such aid; and
                    ``(B) the average per capita amount that the 
                Secretary estimates individuals who are receiving aid 
                to families with dependent children in the State will 
                receive under the food stamp program under the Food 
                Stamp Act of 1977 during the fiscal year.
            ``(3) State excluded population.--
                    ``(A) In general.--The Congressional Budget Office 
                shall determine an excluded population for each 
                qualified State for each fiscal year in accordance with 
                this paragraph.
                    ``(B) Determination.--A State's excluded population 
                for a fiscal year shall equal the sum of--
                            ``(i) the number of excluded children for 
                        the State for the fiscal year as determined 
                        under subparagraph (C);
                            ``(ii) the number of excluded parents for 
                        the State for the fiscal year as determined 
                        under subparagraph (D); and
                            ``(iii) the number of individuals in the 
                        phase-in population for the State for the 
                        fiscal year as determined under subparagraph 
                        (E).
                    ``(C) Excluded children.--
                            ``(i) In general.--The number of excluded 
                        children for a State for a fiscal year shall 
                        be--
                                    ``(I) for fiscal year 1995, zero;
                                    ``(II) for fiscal year 1996, 50 
                                percent of the monthly average number 
                                of base year excluded children (as 
                                defined in clause (ii)) who were under 
                                age 1 during the base year (as defined 
                                in clause (iii));
                                    ``(III) for fiscal year 1997, the 
                                sum of--
                                            ``(aa) the monthly average 
                                        number of base year excluded 
                                        children who were under age 1 
                                        during the base year; and
                                            ``(bb) 50 percent of the 
                                        monthly average number of base 
                                        year excluded children who were 
                                        over age 1 and under age 2 
                                        during the base year;
                                    ``(IV) for fiscal year 1998, the 
                                sum of--
                                            ``(aa) the monthly average 
                                        number of base year excluded 
                                        children who were under age 2 
                                        during the base year; and
                                            ``(bb) 50 percent of the 
                                        monthly average number of base 
                                        year excluded children who were 
                                        over age 2 and under age 3 
                                        during the base year; and
                                    ``(V) for fiscal year 1999, the sum 
                                of--
                                            ``(aa) the monthly average 
                                        number of base year excluded 
                                        children who were under age 3 
                                        during the base year; and
                                            ``(bb) 50 percent of the 
                                        monthly average number of base 
                                        year excluded children who were 
                                        over age 3 and under age 4 
                                        during the base year.
                            ``(ii) Base year excluded children.--The 
                        term `base year excluded children' means 
                        children who received aid under the State's 
                        plan during the base year who would not have 
                        been eligible for such aid if section 
                        402(a)(50) (as in effect during the applicable 
                        fiscal year) had been in effect at the time 
                        such children were born.
                            ``(iii) Base year.--For purposes of this 
                        part, the term `base year' means--
                                    ``(I) 1993, if the Congressional 
                                Budget Office is able to determine an 
                                excluded population for each State for 
                                each fiscal year that such a 
                                determination is required using data 
                                provided by the National Integrated 
                                Quality Control System operated by the 
                                Department of Health and Human Services 
                                and other relevant data sources, or
                                    ``(II) 1993, or another period 
                                determined appropriate by the 
                                Secretary, based on a survey conducted 
                                or approved by the Secretary.
                    ``(D) Excluded parents.--The number of excluded 
                parents for a State for a fiscal year shall be the 
                number of parents excluded in connection with the 
                exclusion of their children under subparagraph (C).
                    ``(E) Phase-in population adjusted for date of 
                enactment.--
                            ``(i) Fiscal year 1995.--For fiscal year 
                        1995, the phase-in population for a State shall 
                        be the product of subclauses (I), (II), and 
                        (III).
                                    ``(I) 4.17 percent.
                                    ``(II) The average monthly number 
                                of base year excluded children (as 
                                defined in clause (ii) of subparagraph 
                                (C)) in the State who were under age 1 
                                during the base year (as defined in 
                                clause (iii) of subparagraph (C)) and 
                                the number of parents excluded in 
                                connection with such children.
                                    ``(III) The number of months (in 
                                whole or in part) by which the date of 
                                the enactment of the Welfare Reform Act 
                                of 1994 precedes October 1, 1994.
                            ``(ii) Succeeding fiscal years.--For fiscal 
                        year 1996 and succeeding fiscal years, the 
                        phase-in population for a State shall be the 
                        product of subclauses (I), (II), (III), and 
                        (IV).
                                    ``(I) 4.17 percent.
                                    ``(II) The average monthly number 
                                of base year excluded children (as 
                                defined in clause (ii) of subparagraph 
                                (C)) in the State who were under age 1 
                                during the base year (as defined in 
                                clause (iii) of subparagraph (C)) and 
                                the number of parents excluded in 
                                connection with such children.
                                    ``(III) The number of months (in 
                                whole or in part) by which the date of 
                                the enactment of the Welfare Reform Act 
                                of 1994 precedes or succeeds October 1, 
                                1994.
                                    ``(IV)(aa) If the date of the 
                                enactment of the Welfare Reform Act of 
                                1994 precedes October 1, 1994, 1; or
                                    ``(bb) If the date of the enactment 
                                of the Welfare Reform Act of 1994 
                                succeeds October 1, 1994, -1.''.

         Subtitle C--Tax Credit for Certain Low-Income Families

SEC. 221. ADDITIONAL EARNED INCOME CREDIT FOR MARRIED INDIVIDUALS.

    (a) In General.--Paragraph (1) of section 32(a) of the Internal 
Revenue Code of 1986 (relating to earned income credit) is amended to 
read as follows:
            ``(1) In general.--There shall be allowed as a credit 
        against the tax imposed by this subtitle for the taxable year 
        an amount equal to the sum of--
                    ``(A) in the case of an eligible individual, an 
                amount equal to the credit percentage of so much of the 
                taxpayer's earned income for the taxable year as does 
                not exceed the earned income amount, and
                    ``(B) in the case of an eligible married 
                individual, the applicable percentage of $1,000.''
    (b) Applicable Percentage.--Section 32(b) of the Internal Revenue 
Code of 1986 (relating to percentages and amounts) is amended by adding 
at the end the following new paragraph:
            ``(3) Applicable percentage.--The applicable percentage for 
        any taxable year is equal to 100 percent reduced (but not below 
        0 percent) by 10 percentage points for each $1,000 (or fraction 
        thereof) by which the taxpayer's earned income for such taxable 
        year exceeds $16,000.''
    (c) Eligible Married Individuals.--Section 32(c) of the Internal 
Revenue Code of 1986 (relating to definitions and special rules) is 
amended by adding at the end the following new paragraph:
            ``(4) Eligible married individuals.--The term `eligible 
        married individual' means an eligible individual (determined 
        without regard to paragraph (1)(A)(ii))--
                    ``(A) who is married (as defined in section 7703) 
                and who has lived together with the individual's spouse 
                at all times during such marriage during the taxable 
                year, and
                    ``(B) has earned income for the taxable year of at 
                least $8,500.''
    (d) Conforming Amendments.--
            (1) Section 32(a)(2) of the Internal Revenue Code of 1986 
        is amended by striking ``paragraph (1)'' and inserting 
        ``paragraph (1)(A)''.
            (2) Section 32(i) of such Code is amended to read as 
        follows:
    ``(i) Inflation Adjustments.--
            ``(1) In general.--In the case of any taxable year 
        beginning after the applicable calendar year, each dollar 
        amount referred to in paragraph (2)(B) shall be increased by an 
        amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3), for the calendar year in which 
                the taxable year begins, by substituting for `calendar 
                year 1992' in subparagraph (B) thereof--
                            ``(i) `calendar year 1993' in the case of 
                        the dollar amounts referred to in paragraph 
                        (2)(B)(i), and
                            ``(ii) `calendar year 1994' in the case of 
                        the dollar amounts referred to in paragraph 
                        (2)(B)(ii).
            ``(2) Definitions, etc.--For purposes of paragraph (1)--
                    ``(A) Applicable calendar year.--The term 
                `applicable calendar year' means--
                            ``(i) 1994 in the case of the dollar 
                        amounts referred to in paragraph (2)(B)(i), and
                            ``(ii) 1995 in the case of the dollar 
                        amounts referred to in paragraph (2)(B)(ii).
                    ``(B) Dollar amounts.--The dollar amounts referred 
                to in this subparagraph are--
                            ``(i) each dollar amount contained in 
                        subsection (b)(2)(A), and
                            ``(ii) the $16,000 amount contained in 
                        subsection (b)(3) and the dollar amount 
                        contained in subsection (c)(4)(B).
            ``(3) Rounding.--If any dollar amount after being increased 
        under paragraph (1) is not a multiple of $10, such dollar 
        amount shall be rounded to the nearest multiple of $10 (or, if 
        such dollar amount is a multiple of $5, such dollar amount 
        shall be increased to the next higher multiple of $10).''
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1994.

             Subtitle D--Expansion of Abstinence Education

SEC. 231. ABSTINENCE EDUCATION GRANTS.

    (a) In General.--The Secretary of Health and Human Services shall 
make grants to States and public and private entities for the purpose 
of establishing educational programs beginning in the sixth grade or 
later that emphasize the social, psychological, and health gains to be 
derived by abstaining from sexual activity while unmarried.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated $100,000,000 in fiscal year 1995, and $100,000,000 in each 
succeeding fiscal year to carry out the provisions of this section.

                  TITLE III--CHILD SUPPORT ENFORCEMENT

SEC. 301. NATIONAL REPORTING OF INFORMATION RELATING TO CHILD SUPPORT 
              WITH RESPECT TO CERTAIN EMPLOYEES.

    (a) Modified W-4 Reporting.--
            (1) Establishment of reporting system.--The Secretary of 
        the Treasury, in consultation with the Secretary of Labor, 
        shall establish a system for the reporting of information 
        relating to child support obligations of employees, that meets 
        the requirements of this subsection.
            (2) Employee obligations.--
                    (A) Employees subject to child support wage 
                withholding.--The system shall require each employee 
                who owes a qualified child support obligation to 
                indicate, at the time such obligation first arises or 
                is modified, on a W-4 form that the employee is 
                otherwise required to file with the employer--
                            (i) the existence of the obligation;
                            (ii) the amount of the obligation;
                            (iii) the name and address of the person to 
                        whom the obligation is owed; and
                            (iv) whether health care insurance is 
                        available through the employer to the family of 
                        the employee.
                    (B) Employees in designated industries.--The system 
                shall require each employee, who is employed in a State 
                in an industry that the State has designated pursuant 
                to section 466(a)(12)(A) of the Social Security Act as 
                one with respect to which universal employment 
                reporting would improve child support enforcement in a 
                cost-effective manner, to annually file with the 
                employer a W-4 form indicating--
                            (i) whether the employee owes a qualified 
                        child support obligation; and
                            (ii) if so--
                                    (I) the amount of the obligation;
                                    (II) the name and address of the 
                                person to whom the obligation is owed; 
                                and
                                    (III) whether health care insurance 
                                is available through the employer to 
                                the family of the employee.
                    (C) One-time updating of w-4 information of all 
                employees.--The system shall require each employee to 
                file with the employer, during a period that the State 
                in which the employee is employed has prescribed 
                pursuant to section 466(a)(12)(B) of the Social 
                Security Act, a W-4 form indicating--
                            (i) whether the employee owes a qualified 
                        child support obligation; and
                            (ii) if so--
                                    (I) the amount of each such 
                                obligation;
                                    (II) the name and address of each 
                                person to whom the obligation is owed; 
                                and
                                    (III) whether health care insurance 
                                is available through the employer to 
                                the family of the employee.
                    (D) Qualified child support obligation.--As used in 
                this subsection, the term ``qualified child support 
                obligation'' means a legal obligation to provide child 
                support (as defined in section 462(b) of the Social 
                Security Act) which is to be collected, in whole or in 
                part, through wage withholding pursuant to an order 
                issued by a court of any State or an order of an 
                administrative process established under the law of any 
                State.
            (3) Employer obligations.--Each employer who receives 
        information from an employee pursuant to paragraph (2) of this 
        subsection shall--
                    (A) within 10 days after such receipt, forward the 
                information to the agency, designated pursuant to 
                section 466(a)(11)(A) of the Social Security Act, of 
                the State in which the employee is employed by the 
                employer; and
                    (B) withhold from the income of the employee the 
                amount indicated on the W-4 form (or, if the employer 
                has received from the State a notice that the amount is 
                incorrect, such other amount as the State indicates is 
                to be so withheld), in the manner described in section 
                466(b)(6)(A)(i) of such Act.
            (4) New hires in certain states excepted.--This subsection 
        shall not apply with respect to the employment in a State of 
        any employee not described in paragraph (2)(B) if the Secretary 
        of Health and Human Services determines that the State--
                    (A) requires all employers in the State to report 
                to the State all basic employment information on new 
                hires;
                    (B) requires such information to be compared with 
                information in the State registry of child support 
                orders established pursuant to section 466(a)(13) of 
                the Social Security Act and with requests from other 
                States for information on the location of noncustodial 
                parents;
                    (C) maintains updated employment information on all 
                individuals employed in the State in a manner that 
                enables the State to effectively respond to such 
                requests; and
                    (D) requires all employers in the State, on receipt 
                of a notice from the State that an employee owes a 
                qualified child support obligation, to begin 
                withholding from the income of the employee the amount 
                of the obligation, in the manner described in section 
                466(b)(6)(A)(i) of the Social Security Act.
    (b) State Role.--Section 466(a) (42 U.S.C. 666(a)) is amended by 
inserting after paragraph (10) the following:
            ``(11) Procedures under which the State shall designate a 
        public agency to--
                    ``(A) maintain the information provided by 
                employers pursuant to section 301(a)(3) of the Welfare 
                Reform Act of 1994 in accordance with regulations 
                prescribed by the Secretary which allow other States 
                easy access to the information through the Interstate 
                Locate Network established under section 453(g) of this 
                Act; and
                    ``(B) determine whether or not the information 
                described in subparagraph (A) of this paragraph 
                provided by an employer with respect to an employee is 
                accurate by comparing the information with the 
                information on file in the State registry of child 
                support orders established pursuant to section 
                466(a)(13) of this Act, and--
                            ``(i) if the information is confirmed by 
                        the information on file in the registry, notify 
                        any individual (or such individual's designee) 
                        who resides in the State and to whom the 
                        employee has a legal obligation to provide 
                        child support, of such information;
                            ``(ii) if the information is not so 
                        confirmed due to a discrepancy between the 
                        information and a copy of a child support order 
                        in the registry, notify the employer of the 
                        discrepancy and the correct information using 
                        the order developed under section 452(a)(12) of 
                        this Act; or
                            ``(iii) if the information is not so 
                        confirmed because the registry does not contain 
                        a copy of an order that imposes a child support 
                        obligation on the employee, search the child 
                        support order registries established pursuant 
                        to section 466(a)(13) of this Act of the States 
                        in which the obligation is most likely to have 
                        been imposed.
            ``(12) Procedures under which the State shall--
                    ``(A) designate at least 1 industry, for purposes 
                of section 301(a)(2)(B) of the Welfare Reform Act of 
                1994, as an industry with respect to which universal 
                employment reporting would improve child support 
                enforcement in a cost-effective manner;
                    ``(B) prescribe the period during which individuals 
                employed in the State are to be required to file with 
                their employers updated W-4 forms as required by 
                section 301(a)(2)(C) of such Act; and
                    ``(C) impose a fine--
                            ``(i) against any individual employed in 
                        the State who is required by section 301(a)(2) 
                        of such Act to file a W-4 form with any 
                        employer of the individual and fails to do so; 
                        and
                            ``(ii) in an amount equal to the average 
                        cost of noncompliance (as determined by the 
                        State) or $25, whichever is the lesser, on any 
                        employer who fails to comply with section 
                        301(a)(3) of such Act for any month.''.

SEC. 302. STATE INFORMATION SYSTEMS.

    (a) State Registries of Child Support Orders.--Section 466(a) (42 
U.S.C. 666(a)), as amended by section 301(b), is amended by inserting 
after paragraph (12) the following:
            ``(13) Procedures requiring the State agency designated 
        pursuant to paragraph (16) to maintain a child support order 
        registry, which must include--
                    ``(A) a copy of each child support order being 
                enforced under the State plan; and
                    ``(B) at the request of an individual who has or is 
                owed a legal obligation to provide child support 
                (within the meaning of section 462(b)), a copy of the 
                order that imposes the obligation.''.
    (b) Accessibility of State Information Related to Child Support.--
            (1) To other states.--Section 466(a) (42 U.S.C. 666(a)), as 
        amended by section 301(b)(1) and subsection (a) of this 
        section, is amended by inserting after paragraph (13) the 
        following:
            ``(14)(A) Procedures requiring all records of the State to 
        which the agency administering the plan has access and 
        determines may be useful in locating noncustodial parents or 
        collecting child support to be made accessible to any agency of 
        any State for such purpose, through the Interstate Locate 
        Network established under section 453(g), in accordance with 
        safeguards established to prevent release of information if the 
        release might jeopardize the safety of any individual.
            ``(B) The State may impose reasonable fees for access to 
        State records provided pursuant to subparagraph (A).''.
            (2) To private parties.--Section 466(a) (42 U.S.C. 666(a)), 
        as amended by section 301(b)(1), subsection (a) of this 
        section, and paragraph (1) of this subsection, is amended by 
        inserting after paragraph (14) the following:
            ``(15) Procedures under which--
                    ``(A) noncustodial parents (and their designees) 
                must be given access to State parent locator services 
                to aid in the establishment or enforcement of 
                visitation rights, in accordance with safeguards 
                established to prevent release of information if the 
                release might jeopardize the safety of any individual; 
                and
                    ``(B) custodial parents (and their designees) must 
                be given access to State parent locator services to aid 
                in the establishment and enforcement of child support 
                obligations against noncustodial parents.''.

SEC. 303. NATIONAL INFORMATION SYSTEMS.

    (a) Expansion of Parent Locator Service.--Section 453 (42 U.S.C. 
653) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(1)'' after ``transmit''; and
                    (B) by striking ``enforcing support obligations 
                against such parent'' and inserting ``establishing 
                parentage, establishing, modifying, and enforcing child 
                support obligations, and (2) to any noncustodial parent 
                (or the designee of the noncustodial parent) 
                information as to the whereabouts of the custodial 
                parent when such information is to be used to locate 
                such parent for the purpose of enforcing child 
                visitation rights and obligations'';
            (2) in subsection (b), by inserting after the 2nd sentence 
        the following: ``Information shall not be disclosed to a 
        custodial parent or a noncustodial parent if the disclosure 
        would jeopardize the safety of the child or either of such 
        parents.'';
            (3) in subsection (d), by inserting ``and such reasonable 
        fees'' after ``such documents''; and
            (4) by striking ``absent parent'' each place such term 
        appears and inserting ``noncustodial parent''.
    (b) Establishment of Interstate Locate Network.--Section 453 (42 
U.S.C. 653) is amended by adding at the end the following:
    ``(g) The Secretary shall establish an Interstate Locate Network 
linking the Parent Locator Service and all State databases relating to 
child support enforcement, which--
            ``(1) any State may use to--
                    ``(A) locate any noncustodial parent who has a 
                legal obligation to provide child support (as defined 
                in section 462(b)), with respect to whom such an 
                obligation is being sought, or against whom visitation 
                rights are being enforced, by accessing the records of 
                any Federal, State, or other source of locate or child 
                support information, directly from one computer system 
                to another; or
                    ``(B) direct a locate request to another State or a 
                Federal agency, or, if the source of locate information 
                is unknown, broadcast such a request to selected States 
                or to all States;
            ``(2) allows on-line and batch processing of locate 
        requests, with on-line access restricted to cases in which the 
        information is needed immediately (such as for court 
        appearances), and batch processing used to `troll' data bases 
        to locate individuals or update information periodically; and
            ``(3) enables courts to access information on the 
        Interstate Locate Network through a computer terminal located 
        in the court.''.
    (c) Information Sharing Regulations.--Section 452(a) (42 U.S.C. 
652(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (9);
            (2) by striking the period at the end of the 2nd sentence 
        of paragraph (10) and inserting ``; and''; and
            (3) by inserting after paragraph (10) the following:
            ``(11) prescribe regulations governing information sharing 
        among States, within States, and between the States and the 
        Parent Locator Service--
                    ``(A) to ensure that a State may broadcast a 
                request for information for the purpose of locating a 
                noncustodial parent or collecting child support, and 
                receive a response to the request in not more than 48 
                hours; and
                    ``(B) to require a State that is attempting to 
                locate a noncustodial parent--
                            ``(i) to compare all outstanding cases with 
                        information in the employment records of the 
                        State; and
                            ``(ii) if, after complying with clause (i), 
                        the State is unable to locate the noncustodial 
                        parent, then--
                                    ``(I) if the State has reason to 
                                believe that the noncustodial parent is 
                                in another particular State or States, 
                                to request such State or States for 
                                information on the noncustodial parent; 
                                and
                                    ``(II) if not, to broadcast to all 
                                States a request for such 
                                information.''.

SEC. 304. INCOME WITHHOLDING.

    (a) State Role.--Section 466(a) (42 U.S.C. 666(a)), as amended by 
sections 301(b)(1) and 302, is amended by inserting after paragraph 
(15) the following:
            ``(16) Procedures under which the State shall designate a 
        public agency to--
                    ``(A) collect child support pursuant to the State 
                plan; and
                    ``(B) distribute, in accordance with section 457 
                and with all due deliberate speed, the amounts 
                collected as child support.
            ``(17) Procedures under which the State shall require any 
        court of the State that establishes or modifies a child support 
        order to transmit a copy of the order to the State agency 
        designated pursuant to paragraph (18), unless the order does 
        not provide for income withholding, and the noncustodial parent 
        and the custodial parent object.
            ``(18) Procedures under which the State shall designate a 
        State agency to use the uniform income withholding order 
        developed under section 452(a)(12) to notify the agency 
        administering the State plan, any employer of an individual 
        required to pay child support through income withholding 
        pursuant to an order issued or modified in the State, and the 
        agency designated pursuant to paragraph (16) of this subsection 
        of each State in which such an employer is located, of--
                    ``(A) the identity of the individual;
                    ``(B) the amount to be withheld; and
                    ``(C) the State agency to which the withheld amount 
                is to be paid.''.
    (b) Uniform Withholding Order.--Section 452(a) (42 U.S.C. 652(a)), 
as amended by section 303(c), is amended--
            (1) by striking ``and'' at the end of paragraph (10);
            (2) by striking the period at the end of paragraph (11) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (11) the following:
            ``(12) develop a uniform order to be used in all cases in 
        which income is to be withheld for the payment of child 
        support, which shall--
                    ``(A) contain the name of the individual whose 
                income is to be withheld, the number of children 
                covered by the order, and the individual or State to 
                whom the withheld income is to be paid, and
                    ``(B) be in the form necessary to allow for the 
                service of the order on all sources of income.''.
    (c) States Required To Have Laws Requiring Employers To Withhold 
Child Support Pursuant to Uniform Income Withholding Orders.--Section 
466(b) (42 U.S.C. 666(b)) is amended--
            (1) in paragraph (1), by inserting ``and in the case of 
        each individual employed in the State,'' before ``so much'';
            (2) in paragraph (6)(C), by inserting ``of this paragraph 
        and paragraph (9)(B) of this subsection'' after ``(A)''; and
            (3) in paragraph (9)--
                    (A) by inserting ``(A)'' after ``(9)''; and
                    (B) by adding at the end the following:
            ``(B)(i) As a condition of doing business in the State, any 
        individual or entity engaged in commerce in the State shall, 
        upon receipt of a valid income withholding order for any of its 
        employees--
                    ``(I) immediately provide a copy of the order to 
                the employee subject to the order; and
                    ``(II) notwithstanding paragraph (4) of this 
                subsection, withhold, within 10 days after receipt of 
                the order, income from the employee in the manner 
                described in paragraph (6)(A)(i) of this subsection.
            ``(ii) A valid income withholding order may be served on 
        the individual or entity directly or by first-class mail.
            ``(iii) Any individual or entity who complies with a valid 
        income withholding order may not be held liable for wrongful 
        withholding of income from the employee subject to the order.
            ``(iv) The State shall impose a civil fine in an amount 
        equal to the average cost of noncompliance (as determined by 
        the State) or $25, whichever is the lesser, on any such 
        individual or entity who receives a valid income withholding 
        order with respect to an employee of the individual or entity, 
        and who, due to negligence, fails to comply with the order 
        within 10 days after receipt.
            ``(v) Any individual or entity who imposes a fee for the 
        administration of child support income withholding and related 
        reporting of information shall not collect more than the 
        average cost of such administration, as determined by the 
        State.
            ``(vi) For purposes of this subparagraph, a valid income 
        withholding order is a withholding order developed under 
        section 452(a)(12) that has been issued by a court or agency of 
        a State and is regular on its face.''.

SEC. 305. UNIFORM TERMS IN ORDERS.

    Section 452(a) (42 U.S.C. 652(a)), as amended by sections 303(c) 
and 304(b), is amended--
            (1) in paragraph (11), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (12), by striking the period at the end of 
        the 2nd sentence and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(13) develop, in conjunction with State executive and 
        judicial organizations, a uniform abstract of a child support 
        order, for use by all State courts to record, with respect to 
        each child support order in the child support order registry 
        established under section 466(a)(12)--
                    ``(A) the date support payments are to begin under 
                the order;
                    ``(B) the circumstances upon which support payments 
                are to end under the order;
                    ``(C) the amount of child support payable pursuant 
                to the order expressed as a sum certain to be paid on a 
                monthly basis, arrearages expressed as a sum certain as 
                of a certain date, and any payback schedule for the 
                arrearages;
                    ``(D) whether the order awards support in a lump 
                sum (nonallocated) or per child;
                    ``(E) if the award is in a lump sum, the event 
                causing a change in the support award and the amount of 
                any change;
                    ``(F) other expenses covered by the order;
                    ``(G) the names of the parents subject to the 
                order;
                    ``(H) the social security account numbers of the 
                parents;
                    ``(I) the name, date of birth, and social security 
                account number (if any) of each child covered by the 
                order;
                    ``(J) the identification (FIPS code, name, and 
                address) of the court that issued the order;
                    ``(K) any information on health care support 
                required by the order; and
                    ``(L) the party to contact if additional 
                information is obtained.''.

SEC. 306. IMPROVEMENTS IN PATERNITY ESTABLISHMENT.

    Section 466(a) (42 U.S.C. 666(a)) is amended--
            (1) by striking ``at the option of the State,'' in 
        paragraph (2)(B), and
            (2) by adding at the end of paragraph (5) the following new 
        subparagraph:
            ``(C) Procedures under which--
                    ``(i) the opportunity to establish paternity 
                voluntarily and by simple affidavit is available to the 
                unmarried parents of a child at the time of the child's 
                birth by requiring hospitals and birthing facilities to 
                make explanatory materials and forms available to the 
                parents as part of the birth certificate process;
                    ``(ii) a simple, civil consent procedure is 
                available at any time for individuals who agree to 
                acknowledge parentage of a child;
                    ``(iii) an acknowledgment of parentage may be 
                incorporated in a witnessed, written statement that 
                includes a statement that--
                            ``(I) the individual signing such statement 
                        understands the consequences of acknowledging 
                        paternity,
                            ``(II) such individual is signing the 
                        statement voluntarily,
                            ``(III) such individual does not object to 
                        the court entering an order for parentage, 
                        based on the acknowledgment, without notice 
                        prior to the entry of the order and without the 
                        requirement of pleadings, service, summons, 
                        testimony, or a hearing, and
                            ``(IV) such individual understands that 
                        signing such statement may create an obligation 
                        to provide child support; and
                    ``(iv) if under State law a court order is required 
                to establish paternity, an acknowledgment of parentage 
                as provided for under clause (iii) shall be filed with 
                a State court of appropriate jurisdiction within 10 
                days and a paternity order based on such acknowledgment 
                shall be established without the requirement of 
                pleadings, service, summons, testimony, or a 
                hearing.''.

SEC. 307. WAIVER OF FEE FOR CERTAIN INDIVIDUALS RECEIVING CHILD SUPPORT 
              COLLECTION OR PATERNITY DETERMINATION SERVICES.

    Section 454 (42 U.S.C. 654) is amended by striking ``and'' at the 
end of paragraph (23), by striking the period at the end of paragraph 
(24) and inserting ``; and'', and by inserting after paragraph (24) the 
following new paragraph:
            ``(25) notwithstanding subparagraphs (B), (C), and (D) of 
        paragraph (6), provide that no fee shall be imposed for child 
        support collection or paternity determination services provided 
        with respect to an individual who is denied assistance under 
        part A of this title due to the amendments made by title II of 
        the Welfare Reform Act of 1994.''.

             TITLE IV--SPECIFIC REFORMS IN WELFARE SPENDING

SEC. 401. INCOME ELIGIBILITY GUIDELINES FOR SCHOOL LUNCH AND BREAKFAST 
              PROGRAMS.

    The third sentence of section 9(b)(1)(A) of the National School 
Lunch Act (42 U.S.C. 1758(b)(1)(A)) is amended by striking ``185 
percent'' and inserting ``130 percent''.

SEC. 402. REPEAL OF EXPANSIONS TO FOOD STAMP PROGRAM.

    (a) In General.--Chapter 3 of title XIII of Public Law 103-66, and 
the amendments made by such chapter, are repealed as of the enactment 
of such chapter.
    (b) Administration.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et 
seq.) shall be applied and administered as if chapter 3 of title XIII 
of Public Law 103-66, and the amendments made by such chapter, had not 
been enacted.

SEC. 403. REPEAL OF EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES.

    (a) Repeal.--Part I of subchapter C of title XIII of the Revenue 
Reconciliation Act of 1993 is hereby repealed.
    (b) Application of Internal Revenue Code.--The Internal Revenue 
Code of 1986 shall be applied and administered as if the provision 
described in subsection (a) had not been enacted.

SEC. 404. REDUCTION OF BENEFITS TO AFDC FAMILIES WHO ALSO RECEIVE 
              PUBLIC HOUSING BENEFITS.

    (a) Repeal of Optional Consideration of Housing Subsidies.--Section 
402(a)(7)(C) (42 U.S.C. 602(a)(7)(C)) is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) by striking clause (ii); and
            (3) by striking ``law)--'' through ``(i) an amount'' and 
        inserting ``law) an amount''.
    (b) Reduction of Payments to AFDC Families Who Receive Public 
Housing Benefits.--
            (1) In general.--Section 402(a) (42 U.S.C. 602(a)), as 
        amended by sections 101(b)(2)(A) and (e), 103(a) and (b), 
        201(b), 202(a), and 203(a), is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (51);
                    (B) by striking the period at the end of paragraph 
                (52) and inserting ``; and''; and
                    (C) by inserting after paragraph (52) the following 
                new paragraph:
            ``(53) in the case of a family receiving aid under this 
        part for any month and occupying a unit in public housing or 
        housing assisted under section 8 of the United States Housing 
        Act of 1937 or a State housing program, reduce the payment of 
        aid under the plan to such family by 25 percent each month.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall apply with respect to payments under part A of title IV 
        of the Social Security Act for calendar quarters beginning on 
        or after October 1, 1994.

SEC. 405. REPEAL OF THE DAVIS-BACON ACT.

    (a) In General.--The Act of March 31, 1931 (commonly known as the 
Davis-Bacon Act; 40 U.S.C. 276a et seq.), is repealed.
    (b) Reduction in Budget Caps.--
            (1) Discretionary spending.--Upon the enactment of this 
        section, the Director of the Office of Management and Budget 
        shall make downward adjustments in the discretionary spending 
        limits (new budget authority and outlays), as adjusted, set 
        forth in 601(a)(2) of the Congressional Budget Act of 1974 for 
        each of fiscal years 1994 through 1998 by an amount equal to 
        the discretionary savings resulting from the enactment of this 
        section attributable to each such fiscal year.
            (2) Section 602 allocations.--
                    (A) House appropriations committee.--The 
                allocations in effect under section 602(a)(1) of the 
                Congressional Budget Act of 1974 for fiscal year 1994 
                for the Committee on Appropriations of the House of 
                Representatives are reduced by the amount of 
                discretionary savings in outlays and budget authority 
                determined under paragraph (1).
                    (B) Senate appropriations committee.--The 
                allocations in effect under section 602(a)(2) of the 
                Congressional Budget Act of 1974 for fiscal year 1994 
                for the Committee on Appropriations of the Senate are 
                reduced by the amount of discretionary savings in 
                outlays and budget authority determined under paragraph 
                (1).
                    (C) Suballocations.--Each Committee on 
                Appropriations is authorized and directed to 
                immediately adjust its suballocations among its 
                subcommittees for fiscal year 1994 to reflect the lower 
                allocations provided by this paragraph in a manner that 
                accurately reflects the changes in law made by this Act 
                and promptly report to its House of Congress 
                suballocations revised under this paragraph.
                    (D) Effect.--The allocations and suballocations as 
                adjusted by this paragraph shall be deemed to be 
                allocations made under section 602(a)(1) and 
                suballocations made under section 602(b)(1) of the 
                Congressional Budget Act of 1974.
            (3) Section 601.--Section 601(a)(2) of the Congressional 
        Budget Act of 1974 is amended by inserting ``or as adjusted 
        pursuant to subsection (a) of section 405 of the Welfare Reform 
        Act of 1994'' before the period at the end.

SEC. 406. REDUCTION OF SOCIAL SERVICES BLOCK GRANTS.

    Section 2003(c) (42 U.S.C. 1397b(c)) is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking ``each fiscal year after 
        fiscal year 1989.'' and inserting ``fiscal years 1990, 1991, 
        1992, 1993, and 1994; and''; and
            (3) by adding at the end the following new paragraph:
            ``(6) $1,800,000,000 for each fiscal year after fiscal year 
        1994.''.

SEC. 407. RESTRICTIONS ON WELFARE BENEFITS PROVIDED TO ALIENS.

    (a) Benefits Limited to Citizens.--On and after the date of the 
enactment of this Act, notwithstanding any other provision of law, no 
benefits shall be available under the following programs to any 
individual who is not a United States citizen:
            (1) The program of medical assistance under title XIX of 
        the Social Security Act, except emergency services (as defined 
        for purposes of section 1916(a)(2)(D) of the Social Security 
        Act).
            (2) The Maternal and Child Health Services Block Grant 
        Program under title V of the Social Security Act.
            (3) The program established in section 330 of the Public 
        Health Service Act (relating to community health centers).
            (4) The program established in section 1001 of the Public 
        Health Service Act (relating to family planning methods and 
        services).
            (5) The program established in section 329 of the Public 
        Health Service Act (relating to migrant health centers).
            (6) The program of aid and services to needy families with 
        children under part A of title IV of the Social Security Act.
            (7) The child welfare services program under part B of 
        title IV of the Social Security Act.
            (8) The supplemental security income program under title 
        XVI of the Social Security Act.
            (9) The program of foster care and adoption assistance 
        under part E of title IV of the Social Security Act.
            (10) The food stamp program, as defined in section 3(h) of 
        the Food Stamp Act of 1977 (7 U.S.C. 2012(h)).
            (11) The school lunch program carried out under the 
        National School Lunch Act (42 U.S.C. 1751 et seq.).
            (12) The special supplemental food program for women, 
        infants, and children carried out under section 17 of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786).
            (13) The nutrition programs carried out under part C of 
        title III of the Older Americans Act of 1965 (42 U.S.C. 3030e 
        et seq.).
            (14) The school breakfast program carried out under section 
        4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
            (15) The child and adult care food program carried out 
        under section 17 of the National School Lunch Act (42 U.S.C. 
        1766).
            (16) The Emergency Food Assistance Act of 1983 (7 U.S.C. 
        612c note).
            (17) The summer food service program for children carried 
        out under section 13 of the National School Lunch Act (42 
        U.S.C. 1761).
            (18) The commodity supplemental food program authorized by 
        section 4(a) of the Agriculture and Consumer Protection Act of 
        1973 (7 U.S.C. 612c note).
            (19) The special milk program carried out under section 3 
        of the Child Nutrition Act of 1966 (42 U.S.C. 1772).
            (20) The program of rental assistance on behalf of low-
        income families provided under section 8 of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f).
            (21) The program of assistance to public housing under 
        title I of the United States Housing Act of 1937 (42 U.S.C. 
        1437 et seq.).
            (22) The loan program under section 502 of the Housing Act 
        of 1949 (42 U.S.C. 1472).
            (23) The program of interest reduction payments pursuant to 
        contracts entered into by the Secretary of Housing and Urban 
        Development under section 236 of the National Housing Act (12 
        U.S.C. 1715z-1).
            (24) The program of loans for rental and cooperative 
        housing under section 515 of the Housing Act of 1949 (42 U.S.C. 
        1485).
            (25) The program of rental assistance payments pursuant to 
        contracts entered into under section 521(a)(2)(A) of the 
        Housing Act of 1949 (42 U.S.C. 1490a(a)(2)(A)).
            (26) The program of assistance payments on behalf of 
        homeowners under section 235 of the National Housing Act (12 
        U.S.C. 1715z).
            (27) The program of rent supplement payments on behalf of 
        qualified tenants pursuant to contracts entered into under 
        section 101 of the Housing and Urban Development Act of 1965 
        (12 U.S.C. 1701s).
            (28) The loan and grant programs under section 504 of the 
        Housing Act of 1949 (42 U.S.C. 1474) for repairs and 
        improvements to rural dwellings.
            (29) The loan and assistance programs under sections 514 
        and 516 of the Housing Act of 1949 (42 U.S.C. 1484, 1486) for 
        housing for farm labor.
            (30) The program of grants for preservation and 
        rehabilitation of housing under section 533 of the Housing Act 
        of 1949 (42 U.S.C. 1490m).
            (31) The program of grants and loans for mutual and self-
        help housing and technical assistance under section 523 of the 
        Housing Act of 1949 (42 U.S.C. 1490c).
            (32) The program of site loans under section 524 of the 
        Housing Act of 1949 (42 U.S.C. 1490d).
            (33) The program under part B of title IV of the Higher 
        Education Act of 1965.
            (34) The program under subpart 1 of part A of title IV of 
        the Higher Education Act of 1965.
            (35) The program under part C of title IV of the Higher 
        Education Act of 1965.
            (36) The program under subpart 3 of part A of title IV of 
        the Higher Education Act of 1965.
            (37) The program under part E of title IV of the Higher 
        Education Act of 1965.
            (38) The program under subpart 4 of part A of title IV of 
        the Higher Education Act of 1965.
            (39) The program under title IX of the Higher Education Act 
        of 1965.
            (40) The program under subpart 5 of part A of title IV of 
        the Higher Education Act of 1965.
            (41) The programs established in sections 338A and 338B of 
        the Public Health Service Act and the programs established in 
        part A of title VII of such Act (relating to loans and 
        scholarships for education in the health professions).
            (42) The program established in part A of title XIX of the 
        Public Health Service Act (relating to block grants for 
        preventive health and health services).
            (43) The programs established in subparts I and II of part 
        B of title XIX of the Public Health Service Act.
            (44)(A) The program of training for disadvantaged adults 
        and youth under part A of title II of the Job Training 
        Partnership Act (29 U.S.C. 1601 et seq.), as in effect before 
        July 1, 1993.
            (B)(i) The program of training for disadvantaged adults 
        under part A of title II of the Job Training Partnership Act 
        (29 U.S.C. 1601 et seq.), as in effect on and after July 1, 
        1993.
            (ii) The program of training for disadvantaged youth under 
        part C of title II of the Job Training Partnership Act (29 
        U.S.C. 1641 et seq.), as in effect on and after July 1, 1993.
            (45) The Job Corps program under part B of title IV of the 
        Job Training Partnership Act (29 U.S.C. 1692 et seq.).
            (46) The summer youth employment and training programs 
        under part B of title II of the Job Training Partnership Act 
        (29 U.S.C. 1630 et seq.).
            (47) The programs carried out under the Older American 
        Community Service Employment Act (42 U.S.C. 3001 et seq.).
            (48) The programs under title III of the Older Americans 
        Act of 1965.
            (49) The programs carried out under part B of title II of 
        the Domestic Volunteer Service Act of 1973 (42 U.S.C. 5011-
        5012).
            (50) The programs carried out under part C of title II of 
        the Domestic Volunteer Service Act of 1973 (42 U.S.C. 5013).
            (51) The program under the Low-Income Energy Assistance Act 
        of 1981 (42 U.S.C. 8621 et seq.).
            (52) The weatherization assistance program under title IV 
        of the Energy Conservation and Production Act (42 U.S.C. 6851).
            (53) The program of block grants to States for social 
        services under title XX of the Social Security Act.
            (54) The programs carried out under the Community Services 
        Block Grant Act (42 U.S.C. 9901 et seq.).
            (55) The program of legal assistance to eligible clients 
        and other programs under the Legal Services Corporation Act (42 
        U.S.C. 2996 et seq.).
            (56) The program for emergency food and shelter grants 
        under title III of the Stewart B. McKinney Homeless Assistance 
        Act (42 U.S.C. 11331 et seq.).
            (57) The programs carried out under the Child Care and 
        Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.).
            (58) A State program for providing child care under section 
        402(i) of the Social Security Act.
    (b) Education of Children of Illegal Aliens.--
            (1) Statement of policy.--It is the policy of the Congress 
        that States and local educational agencies should not be 
        required to provide a free public elementary or secondary 
        education to any individual who is not within one of the 
        following classes of individuals:
                    (A) Citizens of the United States.
                    (B) Aliens lawfully admitted to the United States 
                for permanent residence.
                    (C) Aliens who are permanently residing in the 
                United States under color of law (including residence 
                as an asylee, refugee, or parolee).
            (2) Notification of authorities.--A State or local 
        educational agency shall notify the Attorney General whenever 
        such State or agency learns that a child who is not within a 
        class of individuals under subparagraph (A), (B), or (C) of 
        paragraph (1) is enrolled in a public elementary or secondary 
        school served by such State or agency, respectively.
            (3) Deportation.--
                    (A) In general.--After receiving notification under 
                paragraph (2), the Attorney General shall immediately 
                take action under section 242 of the Immigration and 
                Nationality Act to bring deportation proceedings 
                against a child described in such paragraph, and any 
                relative living with such child who is not within a 
                class of individuals under subparagraph (A), (B), or 
                (C) of paragraph (1).
                    (B) Requirement.--Notwithstanding any other 
                provision of law, a State or local educational agency 
                shall not be required to provide a free public 
                education to any individual described in subparagraph 
                (A) during the period such individual is awaiting 
                deportation.
            (4) Definitions.--For the purpose of this section--
                    (A) the term ``local educational agency'', 
                ``elementary school'' and ``secondary school'' have the 
                meanings given such terms in section 1471 of the 
                Elementary and Secondary Education Act of 1965, and
                    (B) the term ``State'' means the 50 States, the 
                District of Columbia, Puerto Rico, American Samoa, 
                Guam, and the Virgin Islands.

SEC. 408. REPLACEMENT OF CASH BENEFIT WITH MEDICAL VOUCHERS.

    (a) In General.--Section 1611(b) (42 U.S.C. 1382(b)) is amended by 
adding at the end the following new paragraph:
            ``(3) Notwithstanding paragraphs (1) and (2), the benefit 
        under this title for a child who has not attained 18 years of 
        age shall be vouchers issued pursuant to subsection (j).''.
    (b) Issuance of Vouchers for Treatment of Disabling Conditions of 
Children Eligible for SSI Benefits.--Section 1611 (42 U.S.C. 1382) is 
amended by adding at the end the following new subsection:

                           ``voucher program

    ``(j)(1) The Secretary of Health and Human Services shall issue to 
each child eligible for benefits under this title who has not attained 
18 years of age vouchers which may be used to cover the cost of any 
item--
            ``(A) that is associated with treating the blindness or 
        disability of the child;
            ``(B) for which a medical expense deduction may be claimed 
        under section 213 of the Internal Revenue Code of 1986 by the 
        child or any taxpayer who may claim the child as a dependent; 
        and
            ``(C) the cost of which is not covered by the program of 
        medical assistance approved under title XIX of the State in 
        which the child resides.
    ``(2) The annual dollar amount of the vouchers issued under this 
subsection with respect to a child shall not exceed the annual amount 
of the cash benefit to which the child would (but for this subsection) 
have been entitled under this title.
    ``(3)(A) The Secretary shall pay to each qualified provider of 
health care goods or services that submits to the Secretary a voucher 
issued under this subsection, the face amount of the voucher.
    ``(B) For purposes of subparagraph (A), the term `qualified 
provider' means a provider that is licensed by a State or by a 
professional health care organization approved by the Secretary.
    ``(4) The parents of a child who receives vouchers under this 
subsection may submit to the Secretary vouchers issued under this 
subsection for transportation costs incurred in providing medical or 
therapeutic assistance to such child and the Secretary shall make 
payments to such parents under such vouchers pursuant to the rules 
relating to transportation costs under section 213 of the Internal 
Revenue Code of 1986.''.

SEC. 409. DISABILITY REVIEW REQUIRED FOR SSI RECIPIENTS WHO ARE 18 
              YEARS OF AGE.

    (a) In General.--Section 1614(a)(3)(G) (42 U.S.C. 1382(a)(3)(G)) is 
amended--
            (1) by inserting ``(i)'' after ``(G)''; and
            (2) by adding after and below the end the following:
    ``(ii)(I) During the 1-year period that begins on the date a 
recipient of benefits under this title by reason of disability attains 
18 years of age, the applicable State agency or the Secretary (as may 
be appropriate) shall redetermine the eligibility of the recipient for 
such benefits by reason of disability, by applying the criteria used in 
determining eligibility for such benefits of applicants who have 
attained 18 years of age.
    ``(II) A review under subclause (I) shall be considered a 
substitute for a review required under clause (i).''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to individuals who attain 18 years of age in or after the 9th 
month after the month in which this Act is enacted.

SEC. 410. AMOUNT OF FUNDS AVAILABLE FOR LOW-INCOME HOME ENERGY 
              ASSISTANCE.

    Notwithstanding any other provision of law, the amount of funds 
available for obligation in any fiscal year for programs and activities 
under the Low-Income Home Energy Assistance Act of 1981 (title XXVI of 
Public Law 97-35; 42 U.S.C. 8621 et seq.) shall be the amount of funds 
appropriated for that fiscal year for such programs and activities 
pursuant to the authorization of appropriations in section 2602(b) of 
such Act (42 U.S.C. 8621(b)) reduced by $400,000,000.

          TITLE V--STATE OPTIONS AND MISCELLANEOUS PROVISIONS

SEC. 501. OPTION TO TIME LIMIT WELFARE.

    (a) AFDC Program.--
            (1) In general.--Section 402(a) (42 U.S.C. 602(a)), as 
        amended by sections 101(b)(2)(A) and (e), 103 (a) and (b), 
        201(b), 202(a), 203(a), and 404(b), is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (52);
                    (B) by striking the period at the end of paragraph 
                (53) and inserting ``; and''; and
                    (C) by inserting after paragraph (53) the following 
                new paragraph:
            ``(54) at the option of the State--
                    ``(A) provide that aid shall be available to a 
                family otherwise eligible under the plan only for a 
                period of time determined appropriate by the State; and
                    ``(B) provide that in the case of a family applying 
                for aid under the State plan that has moved to the 
                State from another State which has a limit under 
                subparagraph (A) in effect, the State may apply such 
                limit to the family in determining--
                            ``(i) the eligibility of the family for aid 
                        under this part; and
                            ``(ii) the amount of aid available to the 
                        family under this part.''.
            (2) Eligibility for medicaid program.--Section 402 (42 
        U.S.C. 602) is amended by inserting after subsection (c) the 
        following new subsection:
    ``(d) An individual shall continue to be eligible for medical 
assistance under the State plan under title XIX if, but for the 
exercise by the State of the option under subsection (a)(54), the 
individual would be eligible for aid to families with dependent 
children under this part.''.
    (b) Food Stamp Program.--Section 6 of the Food Stamp Act of 1977 (7 
U.S.C. 2015), as amended by sections 102(a), 201(c), and 202(b), is 
amended by adding at the end the following new subsection:
    ``(l)(1) A State may provide that food stamps shall be available to 
households residing in the State that are otherwise eligible under this 
Act only for a period of time determined appropriate by the State.
    ``(2) If a household moves to a State from another State which has 
a limit under paragraph (1) in effect, the State to which the household 
moves may apply such limit to such household in determining--
            ``(A) the eligibility of the household for food stamps; and
            ``(B) the amount of the allotment of the household.''.
    (c) Housing Programs.--The United States Housing Act of 1937 (42 
U.S.C. 1437 et seq.), as amended in section 201(d), is amended--
            (1) in section 6, by adding at the end the following new 
        subsection:
    ``(r) Option to Time Limit Assistance.--Each contract described in 
subsection (a) shall provide that--
            ``(1) the Governor of each State shall have the option to 
        limit the period of time during which any individual residing 
        in the State who is otherwise eligible to receive assistance 
        under this Act may receive such assistance; and
            ``(2) if an individual moves to a State from another State 
        which has a limit under paragraph (1) in effect, the Governor 
        of the State to which the individual moves may apply such limit 
        to such individual in determining--
                    ``(A) the eligibility of the individual for 
                assistance under this Act; and
                    ``(B) the amount of assistance available to the 
                individual under this Act.''; and
            (2) in section 8, by adding at the end the following new 
        subsection:
    ``(aa) Option to Time Limit Assistance.--Each contract to make 
assistance payments described in subsection (a) shall provide that--
            ``(1) the Governor of each State shall have the option to 
        limit the period of time during which any individual residing 
        in the State who is otherwise eligible to receive assistance 
        under this section may receive such assistance; and
            ``(2) if an individual moves to a State from another State 
        which has a limit under paragraph (1) in effect, the Governor 
        of the State to which the individual moves may apply such limit 
        to such individual in determining--
                    ``(A) the eligibility of the individual for 
                assistance under this section; and
                    ``(B) the amount of assistance available to the 
                individual under this section.''.

SEC. 502. OPTION TO TREAT INTERSTATE IMMIGRANTS UNDER RULES OF FORMER 
              STATE WITH RESPECT TO AFDC BENEFITS.

    Section 402(a) (42 U.S.C. 602(a)), as amended by sections 
101(b)(2)(A) and (e), 103 (a) and (b), 201(b), 202(a), 203(a), 404(b), 
and 501, is amended--
            (1) by striking ``and'' at the end of paragraph (53);
            (2) by striking the period at the end of paragraph (54) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (54) the following new 
        paragraph:
            ``(55) except as provided in paragraph (54) (regarding time 
        limits on receipt of aid), at the option of the State, in the 
        case of a family applying for aid under the State plan that has 
        moved to the State from another jurisdiction of the United 
        States with a State plan approved under this part, and has 
        resided in the State for less than 24 months consecutively (as 
        determined by the State), apply the rules that would have been 
        applied by such jurisdiction if the family had not moved from 
        such other jurisdiction in determining--
                    ``(A) the eligibility of the family for benefits, 
                and
                    ``(B) the amount of benefits payable to the family 
                under the State plan,
        during the 24-month period beginning on the date the family 
        moved to the State (as determined by the State).''.

SEC. 503. EVALUATION OF TRAINING PROGRAMS.

    (a) In General.--The Secretary of Labor, in cooperation with the 
States, shall conduct ongoing evaluations of Federal and State job 
training programs. Such evaluations shall--
            (1) be conducted through experiments using control groups 
        chosen by scientific random assignment; and
            (2) determine whether job training programs effectively 
        raise the hourly wage rates of individuals receiving training 
        through such programs.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated $15,000,000 for fiscal years 1995 through 2000 to carry 
out the purposes of this section.

SEC. 504. ELIMINATION OF WELFARE BENEFITS WITH RESPECT TO FUGITIVE 
              FELONS AND PROBATION AND PAROLE VIOLATORS.

    (a) Medicaid Program.--
            (1) Ineligibility for medical assistance.--Section 1902(a) 
        (42 U.S.C. 1396a(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (61);
                    (B) by striking the period at the end of paragraph 
                (62) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(63) provide that no medical assistance shall be 
        available under the plan to any individual who--
                    ``(A) is taking an action described in section 
                1073(1) of title 18, United States Code, or
                    ``(B) is violating a condition of probation or 
                parole imposed under Federal or State law.''.
            (2) Exchange of information with law enforcement 
        agencies.--Section 1902(a)(7) (42 U.S.C. 1396a(a)(7)) is 
        amended by inserting the following after the semicolon: ``but 
        such safeguards shall not prevent the State agency from 
        furnishing a Federal, State, or local law enforcement officer, 
        upon such officer's request, with the current address of any 
        recipient if the officer furnishes the agency with such 
        recipient's name and notifies the agency that--
                    ``(A) such recipient--
                            ``(i) is taking an action described in 
                        section 1073(1) of title 18, United States Code 
                        or violating a condition of probation or parole 
                        imposed under Federal or State law; or
                            ``(ii) has information that is necessary 
                        for the officer to conduct the officer's 
                        official duties;
                    ``(B) the location or apprehension of such 
                recipient is within the officer's official duties; and
                    ``(C) the request is made in the proper exercise of 
                those duties;''.
    (b) AFDC Program.--
            (1) Ineligibility for aid.--Section 402(a), as amended by 
        sections 101(b)(2)(A) and (e), 103 (a) and (b), 201(b), 202(a), 
        203(a), 404(b), 501, and 502, (42 U.S.C. 602(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (54);
                    (B) by striking the period at the end of paragraph 
                (55) and inserting ``; and''; and
                    (C) by inserting after paragraph (55) the following 
                new paragraph:
            ``(56) provide that no aid shall be available under the 
        plan to any individual who--
                    ``(A) is taking an action described in section 
                1073(1) of title 18, United States Code, or
                    ``(B) is violating a condition of probation or 
                parole imposed under Federal or State law.''.
            (2) Exchange of information with law enforcement 
        agencies.--Section 402(a)(9) (42 U.S.C. 602(a)(9)) is amended 
        by striking ``State or local'' through ``official duties'' and 
        inserting ``Federal, State, or local law enforcement officer, 
        upon such officer's request, with the current address of any 
        recipient if the officer furnishes the agency with such 
        recipient's name and notifies the agency that such recipient is 
        taking an action described in section 1073(1) of title 18, 
        United States Code, is violating a condition of probation or 
        parole imposed under Federal or State law, or has information 
        that is necessary for the officer to conduct the officer's 
        official duties, that the location or apprehension of such 
        recipient is within the officer's official duties''.
    (c) Food Stamp Program.--
            (1) Ineligibility for food stamps.--Section 6 of the Food 
        Stamp Act of 1977 (7 U.S.C. 2015), as amended by sections 
        102(a), 201(c), 202(b), and 501(b), is amended by adding at the 
        end the following new subsection:
    ``(m) No member of a household who is otherwise eligible to 
participate in the food stamp program shall be eligible to participate 
in the program as a member of that or any other household while the 
individual is--
            ``(1) taking an action described in section 1073(1) of 
        title 18, United States Code; or
            ``(2) violating a condition of probation or parole imposed 
        under Federal or State law.''.
            (2) Exchange of information with law enforcement 
        officers.--Section 11(e)(8) of such Act (7 U.S.C. 2020(e)(8)) 
        is amended--
                    (A) by striking ``and (C)'' and inserting ``(C)''; 
                and
                    (B) by inserting before the semicolon at the end 
                the following: ``, and (D) notwithstanding any other 
                provision of law, all information obtained under this 
                Act from a member of a household shall be made 
                available, on request, to a Federal, State, or local 
                law enforcement officer if the officer furnishes the 
                State agency with the name of the member and notifies 
                the agency that (i) the member (I) is taking an action 
                described in section 1073(1) of title 18, United States 
                Code, or violating a condition of probation or parole 
                imposed under Federal or State law, or (II) has 
                information that is necessary for the officer to 
                conduct the officer's official duties, (ii) the 
                location or apprehension of the member is within the 
                official duties of the officer, and (iii) the request 
                is made in the proper exercise of the duties''.
    (d) SSI Program.--
            (1) Ineligibility for aid.--Section 1611(e) (42 U.S.C. 
        1382(e)) is amended by inserting after paragraph (3) the 
        following new paragraph:
    ``(4) No person shall be an eligible individual or eligible spouse 
for purposes of this title with respect to any month if throughout such 
month such individual or spouse--
                    ``(A) is taking an action described in section 
                1073(1) of title 18, United States Code, or
                    ``(B) is violating a condition of probation or 
                parole imposed under Federal or State law.''.
            (2) Exchange of information with law enforcement 
        agencies.--Section 1631(e) (42 U.S.C. 1383(e)) is amended by 
        inserting after paragraph (3) the following new paragraph:
    ``(4) Notwithstanding any other provision of law, the Secretary 
shall furnish any Federal, State, or local law enforcement officer, 
upon such officer's request, with the current address of any recipient 
of benefits under this title, if the officer furnishes the agency with 
such recipient's name and notifies the agency that--
            ``(A) such recipient--
                    ``(i) is taking an action described in section 
                1073(1) of title 18, United States Code or violating a 
                condition of probation or parole imposed under Federal 
                or State law; or
                    ``(ii) has information that is necessary for the 
                officer to conduct the officer's official duties;
            ``(B) the location or apprehension of such recipient is 
        within the officer's official duties; and
            ``(C) the request is made in the proper exercise of those 
        duties.''.
    (e) Housing Programs.--
            (1) Eligibility for assistance.--The United States Housing 
        Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
                    (A) in section 6(l)--
                            (i) in paragraph (5), by striking ``and'' 
                        at the end;
                            (ii) in paragraph (6), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by inserting immediately after 
                        paragraph (6) the following new paragraph:
            ``(7) provide that it shall be cause for immediate 
        termination of the tenancy of a public housing tenant if such 
        tenant--
                    ``(A) is taking an action described in section 
                1073(1) of title 18, United States Code; or
                    ``(B) is violating a condition of probation or 
                parole imposed under Federal or State law.''; and
                    (B) in section 8(d)(1)(B)--
                            (i) in clause (iii), by striking ``and'' at 
                        the end;
                            (ii) in clause (iv), by striking the period 
                        at the end and inserting ``; and''; and
                            (iii) by adding after clause (iv) the 
                        following new clause:
                            ``(v) it shall be cause for termination of 
                        the tenancy of a tenant if such tenant--
                                    ``(I) is taking an action described 
                                in section 1073(1) of title 18, United 
                                States Code; or
                                    ``(II) is violating a condition of 
                                probation or parole imposed under 
                                Federal or State law;''.
            (2) Provision of information to law enforcement agencies.--
        Title I of the United States Housing Act of 1937 (42 U.S.C. 
        1437 et seq.) is amended by adding at the end the following new 
        section:

``SEC. 26. PROVISION OF INFORMATION TO LAW ENFORCEMENT AGENCIES.

    ``Notwithstanding any other provision of law, each public housing 
agency shall furnish to any Federal, State, or local law enforcement 
agency, upon request, the current address of any recipient of 
assistance under this Act if the law enforcement agency--
            ``(1) furnishes the public housing agency with such 
        recipient's name; and
            ``(2) notifies such agency that--
                    ``(A) such recipient--
                            ``(i) is taking an action described in 
                        section 1073(1) of title 18, United States Code 
                        or violating a condition of probation or parole 
                        imposed under Federal or State law; or
                            ``(ii) has information that is necessary 
                        for the officer to conduct the officer's 
                        official duties;
                    ``(B) the location or apprehension of such 
                recipient is within the official duties of the agency; 
                and
                    ``(C) the request is made in the proper exercise of 
                such duties.''.
    (f) Effective Dates.--The amendments made by this section shall be 
effective on the date of the enactment of this Act.

       TITLE VI--CAPPING THE AGGREGATE GROWTH OF WELFARE SPENDING

SEC. 601. CAP ON GROWTH OF FEDERAL SPENDING ON CERTAIN WELFARE 
              PROGRAMS.

    (a) Restrictions on Spending.--The total amount of Federal spending 
for a fiscal year for the programs listed in subsection (b) shall not 
exceed--
            (1) in fiscal year 1995, an amount equal to the sum of--
                    (A) the total Federal spending for fiscal year 1994 
                on the programs listed in section 603;
                    (B) the total Federal spending for fiscal year 1994 
                on the refundable portion of the earned income credit 
                under section 32 of the Internal Revenue Code of 1986; 
                and
                    (C) the total Federal spending for fiscal year 1994 
                on the head start programs carried out under the Head 
                Start Act;
                    (D) the total Federal spending for fiscal year 1994 
                on cash, medical, and social services assistance 
                furnished to refugees and entrants under title IV of 
                the Immigration and Nationality Act and section 501 of 
                the Refugee Education Assistance Act of 1980; and
                    (E) the total Federal spending for fiscal year 1994 
                on the special supplemental food program for women, 
                infants, and children carried out under section 17 of 
                the Child Nutrition Act of 1966; and
            (2) in fiscal year 1996 and succeeding fiscal years, an 
        amount equal to the sum of--
                    (A) the total Federal spending permitted under this 
                subsection for the preceding fiscal year; and
                    (B) 3.5 percent of such spending.
    (b) Programs Subject to Spending Limit.--The programs listed in 
this subsection are the following:
            (1) The welfare block grant program established under 
        section 602.
            (2) The refundable portion of the earned income credit 
        under section 32 of the Internal Revenue Code of 1986.
            (3) Grants for assistance to children born out-of-wedlock 
        under part C of title IV of the Social Security Act.
            (4) The head start programs carried out under the Head 
        Start Act.
            (5) The cash, medical, and social services assistance 
        programs for refugees and entrants under title IV of the 
        Immigration and Nationality Act and section 501 of the Refugee 
        Education Assistance Act of 1980.
            (6) The special supplemental food program for women, 
        infants, and children carried out under section 17 of the Child 
        Nutrition Act of 1966.
    (c) Reconciliation of Growth Limits.--
            (1) Allocations.--The joint explanatory statement 
        accompanying a conference report on a concurrent resolution on 
        the budget described in section 301 of the Congressional Budget 
        Act of 1974 for a fiscal year shall include allocations to each 
        committee based on the spending cap imposed by subsection (a) 
        for such fiscal year.
            (2) Reconciliation directives.--The reconciliation 
        directives described in section 310 of the Congressional Budget 
        Act of 1974 shall specify reductions for each committee 
        necessary to comply with the spending caps imposed by 
        subsection (a) for such fiscal year.
            (3) Consultation with committees.--In conducting any 
        activities required under paragraphs (1) and (2), the 
        Committees on the Budget of the House of Representatives and 
        the Senate shall consult with the following committees of 
        Congress:
                    (A) The Committee on Ways and Means of the House of 
                Representatives.
                    (B) The Committee on Finance of the Senate.
                    (C) The Committee on Agriculture of the House of 
                Representatives.
                    (D) The Committee on Agriculture, Nutrition, and 
                Forestry of the Senate.
                    (E) The Committee on Education and Labor of the 
                House of Representatives.
                    (F) The Committee on Labor and Human Resources of 
                the Senate.
                    (G) The Committee on Banking, Finance and Urban 
                Affairs of the House of Representatives.
                    (H) The Committee on Banking, Housing, and Urban 
                Affairs of the Senate.
                    (I) The Committee on Energy and Commerce of the 
                House of Representatives.
    (d) Refundable Portion of EITC.--For purposes of this title, the 
refundable portion of the earned income credit under section 32 of the 
Internal Revenue Code of 1986 is the amount treated as an overpayment 
of tax under section 6401(b)(1) of such Code which is allocable to such 
credit.

SEC. 602. ESTABLISHMENT OF WELFARE BLOCK GRANT PROGRAM.

    (a) Grants Authorized.--
            (1) In general.--For fiscal year 1995 and succeeding fiscal 
        years, the Secretary of Health and Human Services (hereafter 
        referred to in this section as the ``Secretary'') shall make 
        grants to the States in accordance with this section.
            (2) Limit on total amount of grants.--
                    (A) In general.--The aggregate amount of grants 
                made to States under this section for a fiscal year 
                shall not exceed the total Federal spending permitted 
                under section 601(a) for the fiscal year reduced by the 
                sum of the amount to be expended by the Federal 
                Government for the fiscal year, as estimated by the 
                Congressional Budget Office, for--
                            (i) the refundable portion of the earned 
                        income credit under section 32 of the Internal 
                        Revenue Code of 1986;
                            (ii) grants for assistance to children born 
                        out-of-wedlock under part C of title IV of the 
                        Social Security Act;
                            (iii) the head start programs carried out 
                        under the Head Start Act;
                            (iv) cash, medical, and social services 
                        assistance furnished to refugees and entrants 
                        under title IV of the Immigration and 
                        Nationality Act and section 501 of the Refugee 
                        Education Assistance Act of 1980; and
                            (v) the special supplemental food program 
                        for women, infants, and children carried out 
                        under section 17 of the Child Nutrition Act of 
                        1966.
                    (B) Adjustments.--If the programs listed in clauses 
                (i) through (iii) of subparagraph (A) are amended by 
                law after the Congressional Budget Office has completed 
                the estimates required under such subparagraph, the 
                aggregate amount of grants made to States under this 
                section (as determined under subparagraph (A)) shall be 
                reduced by the amount by which the total Federal 
                spending on such programs, as amended, will exceed the 
                amount determined under such estimates.
            (3) Allocation to the states.--
                    (A) In general.--Except as provided in subparagraph 
                (B), a State shall receive a grant under this section 
                for a fiscal year equal to the amount which bears the 
                same ratio to the total amount appropriated for grants 
                under this section for the fiscal year as the total 
                amount of Federal funds received by the State under the 
                programs listed in section 603 for fiscal year 1994 
                bears to the total amount of Federal funds received by 
                all States under the programs listed in section 603 for 
                fiscal year 1994.
                    (B) Special rule for public housing authorities.--
                In the case of a State which is a public housing 
                authority, any grant made under subparagraph (A) with 
                respect to such authority shall be directly allocated 
                to the highest governmental unit of general authority 
                (other than the Federal Government) in the jurisdiction 
                in which the such authority is located.
    (b) Provision of Aid to Low-Income Households.--
            (1) In general.--A State shall use the amounts received 
        under this section to provide aid to low-income households 
        located in the State. Except as provided in subsection (c), a 
        State shall have the authority to provide such aid in any 
        manner determined appropriate by the State, including the 
        authority to determine--
                    (A) the type of benefits constituting such aid;
                    (B) the level of benefits constituting such aid;
                    (C) the eligibility criteria for such aid; and
                    (D) the appropriateness of any reports to the 
                Secretary with respect to such aid.
            (2) Definition of low-income household.--For purposes of 
        this section, the term ``low-income household'' means a 
        household with an annual income that is less than 175 percent 
        of the Federal poverty income guidelines issued by the 
        Department of Health and Human Services.
    (c) Special Rules Regarding Use of Funds.--
            (1) No funds used for abortion.--A State may not use grant 
        funds received under this section for making abortion available 
        as a method of family planning or for any counseling or 
        advising with respect to abortion.
            (2) Work requirements.--
                    (A) In general.--If a State uses grant funds 
                received under this section to provide direct cash 
                assistance during a fiscal year to a population that is 
                equivalent to a population described in subparagraph 
                (B), the requirements concerning work, job search, and 
                job training provided under subparagraph (C) shall 
                apply to each equivalent population receiving 
                assistance.
                    (B) Populations described.--The populations 
                described in this subparagraph are the populations that 
                would be required to participate in--
                            (i) the State's welfare and dependency 
                        reduction program under subsection (a)(1) of 
                        section 483 of the Social Security Act (as 
                        amended by section 101 of this Act) if such 
                        program were in effect during the fiscal year; 
                        and
                            (ii) the State's welfare and dependency 
                        reduction program under subsection (c)(1) of 
                        section 483 of the Social Security Act (as 
                        amended by section 101 of this Act) if such 
                        program were in effect during the fiscal year.
                    (C) Requirements on states.--With respect to any 
                population which receives direct cash assistance under 
                this section and which is equivalent to a population 
                described in subparagraph (B), the State shall meet the 
                following requirements:
                            (i) The State shall meet the corresponding 
                        State participation rate requirements 
                        established under subsections (a)(2) and (c)(2) 
                        of section 483 of the Social Security Act (as 
                        amended by section 101 of this Act) that would 
                        be in effect if the State's welfare and 
                        dependency reduction program were in effect 
                        during the fiscal year.
                            (ii)(I) Except as provided in subclause 
                        (II), the State shall not reduce the number of 
                        hours of required participation in work and job 
                        search activity specified under subsections 
                        (a)(1) and (c)(1) of section 483 of the Social 
                        Security Act (as amended by section 101 of this 
                        Act) that would be in effect if the State's 
                        welfare and dependency reduction program were 
                        in effect during the fiscal year.
                            (II) For purposes of subclause (I), a State 
                        may reduce the number of hours of required 
                        participation as specified under subsection 
                        (c)(1) of section 483 of the Social Security 
                        Act in the case of an individual who provides 
                        child care services to other individuals 
                        conducting work, job search, and job training 
                        activities in accordance with this 
                        subparagraph.
                            (iii) In establishing participation 
                        requirements for a population which is 
                        receiving direct cash assistance under this 
                        section and which is equivalent to the 
                        population described in section 483(c)(1) of 
                        the Social Security Act (as amended by section 
                        101 of this Act) the State shall comply with 
                        the provisions of section 483(c)(3) of such Act 
                        (as amended by section 101 of this Act) 
                        relating to work priorities for families with 
                        older children, that would be in effect if the 
                        State's welfare and dependency reduction 
                        program were in effect during the fiscal year.
                            (iv) In meeting its participation 
                        requirements under this paragraph with respect 
                        to a population which is receiving direct cash 
                        assistance under this section, the State shall 
                        comply with the provisions of section 483(d) of 
                        such Act (as amended by section 101 of this 
                        Act) relating to an individual option to seek 
                        employment using a voucher that would be in 
                        effect if the State's welfare and dependency 
                        reduction program were in effect during the 
                        fiscal year.
                            (v) In operating any work program in 
                        accordance with this paragraph, the State shall 
                        follow a system of payment based on performance 
                        which directly prorates assistance based on the 
                        satisfactory completion of the required hours 
                        of specified activity, similar to the system 
                        established under section 484(e) of the Social 
                        Security Act (as amended by section 101 of this 
                        Act).
                            (vi) The State shall require individuals 
                        who are noncustodial parents who fail to pay 
                        child support for children who receive direct 
                        cash or food assistance under this section and 
                        who are equivalent to children who would be 
                        eligible for aid to families with dependent 
                        children if such program were in effect during 
                        the fiscal year, to comply with the provisions 
                        of section 483(b) of the Social Security Act 
                        (as amended by section 101 of this Act) that 
                        would be in effect if the State's welfare and 
                        dependency reduction program were in effect 
                        during the fiscal year.
                    (D) Other recipients.--If a State uses grant funds 
                received under this section to provide direct food or 
                cash assistance during a fiscal year to a population 
                that is equivalent to the population that would be 
                subject to the State work program under section 6(i) of 
                the Food Stamp Act of 1977 (as amended by section 102 
                of this Act) if such program were in effect during the 
                fiscal year, such equivalent population shall be 
                subject to the provisions of section 6(i) of the Food 
                Stamp Act of 1977 (as amended by section 102 of this 
                Act) as if such program were in effect during the 
                fiscal year.
                    (E) State experimentation.--
                            (i) In general.--Except as provided in 
                        clause (ii), for purposes of experimentation, a 
                        State may waive within a limited locality 
                        within the State the requirements under 
                        subparagraphs (C) and (D). A State conducting 
                        an experiment under this subparagraph shall 
                        have the full authority to establish within the 
                        locality of the experiment--
                                    (I) the categories of recipients of 
                                aid who will be required to participate 
                                in some form of work, job search, or 
                                job training activity; and
                                    (II) the types of activity which 
                                will be required.
                            (ii) Limitation.--Clause (i) shall apply to 
                        a State only if the State meets the following 
                        requirements:
                                    (I) The State shall notify the 
                                Secretary of the modifications to the 
                                requirements under subparagraphs (C) 
                                and (D) that the State proposes to make 
                                and shall receive the approval of the 
                                Secretary.
                                    (II) The State shall assure the 
                                Secretary that the overall average 
                                weekly aggregate number of recipients 
                                of assistance under this section within 
                                the locality of the experiment who will 
                                be required to participate in some form 
                                of work, job search, or job training 
                                will not be less than the average 
                                weekly number required to participate 
                                in such activities under subparagraphs 
                                (C) and (D).
                    (F) Work requirements eliminated for groups which 
                no longer receive benefits.--The State shall not be 
                required to impose work, job search, or job training 
                requirements on any--
                            (i) subgroup of a population that is 
                        equivalent to a subgroup of a population 
                        described in subparagraph (B), if the State 
                        ceases to provide direct cash assistance to 
                        such subgroup; or
                            (ii) subgroup of a population that is 
                        equivalent to a subgroup of the population that 
                        would be subject to the State work program 
                        under section 6(i) of the Food Stamp Act of 
                        1977 (as amended by section 102 of this Act) if 
                        such program were in effect, if the State 
                        ceases to provide direct food or cash 
                        assistance to such subgroup.
            (3) Benefits to young unwed parents.--
                    (A) Cash assistance.--Any individual described in 
                section 402(a)(50)(A) of the Social Security Act (as 
                added by section 201(b) of this Act) shall be denied 
                cash assistance paid out of grant funds received by the 
                State under this section in the same manner as such 
                individual would be denied aid to families with 
                dependent children under such section if funding for 
                the aid to families with dependent children program was 
                not terminated under section 603.
                    (B) Food assistance.--Any individual described in 
                section 6(j)(1) of the Food Stamp Act of 1977 (as added 
                by section 201(c) of this Act) shall be denied direct 
                food assistance paid out of grant funds received by the 
                State under this section in the same manner as such 
                individual would be denied food stamps under such 
                section if funding for the food stamp program was not 
                terminated under section 603.
                    (C) Housing assistance.--Any individual described 
                in sections 6(q) and (8)(z) of the United States 
                Housing Act of 1937 (as added by section 201(d) of this 
                Act) shall be denied housing assistance paid out of 
                grant funds received by the State under this section in 
                the same manner as such individual would be denied 
                housing assistance under such section if funding for 
                the housing assistance program was not terminated under 
                section 603.
            (4) Benefit provisions regarding additional children.--A 
        State may not use grant funds received under this section for 
        providing direct cash, food, or housing aid to a child if the 
        custodial parent of such child is, at the time of the child's 
        birth--
                    (A) a recipient of direct cash aid paid for out of 
                grant funds received by the State under this section; 
                or
                    (B) an individual who received such aid anytime 
                during the 10-month period ending with the birth of the 
                child.
            (5) Requirements for paternity establishment.--The 
        provisions of section 402(a)(52) of the Social Security Act (as 
        added by section 203(a) of this Act) shall apply to any family 
        applying for direct cash aid paid out of grant funds received 
        by a State under this section in the same manner as such 
        provisions would apply to a family applying for aid under the 
        aid to families with dependent children program if funding for 
        such program was not terminated under section 603.
            (6) Requirements relating to aid for noncitizens.--A State 
        shall not use grant funds received under this section for 
        providing aid to an individual who is not a United States 
        citizen.
            (7) Aid denied to fugitive felons and probation or parole 
        violators.--
                    (A) In general.--A State shall not use grant funds 
                received under this section for providing aid to an 
                individual who--
                            (i) is taking an action described in 
                        section 1073(1) of title 18, United States 
                        Code, or
                            (ii) is violating a condition of probation 
                        or parole imposed under Federal or State law.
                    (B) Exchange of information with law enforcement 
                agencies.--A State receiving grant funds under this 
                section shall furnish to a Federal, State, or local law 
                enforcement officer, upon such officer's request, the 
                current address of any individual receiving aid under 
                this section if the officer furnishes the State with 
                such individual's name and notifies the State that--
                            (i) such individual--
                                    (I) is taking an action described 
                                in section 1073(1) of title 18, United 
                                States Code or violating a condition of 
                                probation or parole imposed under 
                                Federal or State law; or
                                    (II) has information that is 
                                necessary for the officer to conduct 
                                the officer's official duties;
                            (ii) the location or apprehension of such 
                        recipient is within the officer's official 
                        duties; and
                            (iii) the request is made in the proper 
                        exercise of those duties.
            (8) Civil rights laws.--A State shall not violate any 
        requirement established by statute or regulation under the 
        following Acts in providing aid sing grant funds received under 
        this section:
                    (A) Title VI of the Civil Rights Act of 1965.
                    (B) Section 504 of the Rehabilitation Act of 1973.
                    (C) Title IX of the Education Amendments of 1972.
                    (D) The Age Discrimination Act of 1975.
                    (E) The Americans With Disabilities Act of 1990.
            (9) Recommendation with respect to certain provisions.--
        Except as provided in paragraphs (2), (3), (4), (5), (6), and 
        (7) it is recommended that a State provide aid out of grant 
        funds received under this section in accordance with the 
        principles of the provisions contained in the amendments made 
        by titles I, II, V, and VI of this Act.
            (10) Child support and paternity establishment.--A State 
        receiving grant funds under this section shall conduct child 
        support and paternity establishment activities in accordance 
        with part D of title IV of the Social Security Act.
    (d) No Entitlement To Receive Aid.--An individual shall not be 
entitled to receive aid out of grant funds received by a State under 
this section.
    (e) Definition of State.--For purposes of this section, the term 
``State'' means any governmental unit (other than a public housing 
authority) that received Federal funds under a program listed in 
section 603 during fiscal year 1994.

SEC. 603. CONVERSION OF FUNDING UNDER CERTAIN WELFARE PROGRAMS.

    Notwithstanding any other provision of law, effective October 1, 
1994, funding under the following programs is terminated and any State 
obligations under such programs are terminated:
            (1) Cash aid.--
                    (A) The program of aid and services to needy 
                families with children under title IV of the Social 
                Security Act (excluding the child support and 
                establishment of paternity program under part D of such 
                title) (Budget account number: 75-1501-0-1-609).
                    (B) The supplemental security income program under 
                title XVI of the Social Security Act (Budget account 
                number: 75-0406-0-1-609).
                    (C) The foster care and adoption assistance program 
                under part E of title IV of the Social Security Act 
                (Budget account number: 75-1545-1-1-506).
                    (D) Emergency assistance to needy families with 
                children under title I, parts A and D of title IV, and 
                titles X, XI, XIV, and XVI of the Social Security Act 
                (Budget account number: 75-1501-0-1-609).
                    (E) General assistance to Indians (Budget account 
                number: 14-2100-0-1-452).
            (2) Medical aid.--
                    (A) Indian health services (Budget account number: 
                75-0390-0-1-551).
                    (B) The Maternal and Child Health Services Block 
                Grant Program under title V of the Social Security Act. 
                (Budget account number: 75-0350-0-1-551).
                    (C) The program established in section 330 of the 
                Public Health Service Act (relating to community health 
                centers) (Budget account number: 75-0350-0-1-550).
                    (D) The program established in section 329 of the 
                Public Health Service Act (relating to migrant health 
                centers) (Budget account number: 75-0350-0-1-550).
            (3) Food aid.--
                    (A) The food stamp program under the Food Stamp Act 
                of 1977 (Budget account number: 12-3505-0-1-605).
                    (B) The school lunch program carried out under the 
                National School Lunch Act (Budget account number: 12-
                3539-0-1-605).
                    (C) The emergency food assistance program under the 
                Emergency Food Assistance Act of 1983 (Budget account 
                number: 12-3635-0-1-351).
                    (D) The nutrition programs carried out under part C 
                of title III of the Older Americans Act of 1965 (Budget 
                account number: 12-3503-0-1-351).
                    (E) The school breakfast program carried out under 
                section 4 of the Child Nutrition Act of 1966 (Budget 
                account number: 12-3539-0-1-605).
                    (F) The child and adult care food program carried 
                out under section 17 of the National School Lunch Act 
                (Budget account number: 12-3539-0-1-605).
                    (G) The summer food service program for children 
                carried out under section 13 of the National School 
                Lunch Act (Budget account number: 12-3539-0-1-605).
                    (H) The needy families food distribution program 
                under section 4(b) of the Food Stamp Act of 1977 
                (Budget account number: 12-3503-0-1-605).
                    (I) The commodity supplemental food program for 
                children and elderly persons authorized by the 
                Agriculture and Consumer Protection Act of 1973 (Budget 
                account number: 12-3512-0-1-605).
                    (J) The special milk program carried out under 
                section 3 of the Child Nutrition Act of 1966 (Budget 
                account number: 12-3502-0-1-605).
            (4) Housing aid.--
                    (A) Lower income housing assistance under section 8 
                of the United States Housing Act of 1937 (42 U.S.C. 
                1772) (Budget account number: 86-0139-0-1-604).
                    (B) Low-rent public housing under the United States 
                Housing Act of 1937 (Budget account number: 86-4098-0-
                3-604).
                    (C) Rural housing loans for low-income families 
                under section 502 of the Housing Act of 1949 (Budget 
                account number: 12-2081-0-1-371).
                    (D) Interest reduction payments under section 236 
                of the National Housing Act (Budget account number: 86-
                0148-0-1-604).
                    (E) Rural rental housing loans under section 515 of 
                the Housing Act of 1949 (Budget account number: 12-
                2081-0-1-371).
                    (F) Rural rental assistance under section 521 of 
                the Housing Act of 1949 (Budget account number: 12-
                0137-0-1-604).
                    (G) Homeownership assistance for lower income 
                families under section 235 of the National Housing Act 
                (Budget account number: 86-0148-0-1-604).
                    (H) Rent supplements under section 101 of the 
                Housing and Urban Development Act of 1965 (Budget 
                account number: 86-0129-0-1-604).
                    (I) Indian housing improvement grants under part 
                256 of title 25 Code of Federal Regulations (Budget 
                account number: 14x-2301-0-1-452).
                    (J) Rural housing repair loan grants for very low-
                income rural home owners under section 504 of the 
                Housing Act of 1949 (Budget account number: 12-2081-0-
                1-371).
                    (K) Farm labor housing loans under section 514 of 
                the Housing Act of 1949 (Budget account number: 12-
                2081-0-1-371).
                    (L) Rural housing self-help technical assistance 
                grants under section 523 of the Housing Act of 1949 
                (Budget account number: 12-2006-0-1-604).
                    (M) Rural housing self-help technical assistance 
                loans under section 523 of the Housing Act of 1949 
                (Budget account number: 12-2080-0-1-371).
                    (N) Farm labor housing grants under section 516 of 
                the Housing Act of 1949 (Budget account number: 12-
                2004-0-1-604).
                    (O) Rural housing preservation grants for low-
                income rural homeowners under section 533 of the 
                Housing Act of 1949 (Budget account number: 12-2070-0-
                1-604).
            (5) Energy aid.--
                    (A) Programs under the Low-Income Energy Assistance 
                Act of 1981 (Budget account number: 75-1502-0-1-609).
                    (B) The weatherization assistance program under 
                title IV of the Energy Conservation and Production Act 
                (Budget account number: 89-0215-0-1-999).
            (6) Education aid.--
                    (A) The Federal Pell Grant Program under subpart 1 
                of part A of title IV of the Higher Education Act of 
                1965 (Budget account number: 91-0200-0-1-502).
                    (B) Grants under subpart 1 of part A of chapter 1 
                of title I of the Elementary and Secondary Education 
                Act of 1965 (Budget account number: 91-0900-0-1-501).
                    (C) Federal supplemental educational opportunity 
                grants under subpart 3 of part A of title IV of the 
                Higher Education Act of 1965 (Budget account number: 
                91-0200-1-502).
                    (D) Programs for Migratory Children under subpart 1 
                of part D of chapter 1 of title I of the Elementary and 
                Secondary Education Act of 1965 (Budget account number: 
                91-0900-0-501).
                    (E) Federal TRIO Programs under chapter I of 
                subpart 2 of part A of title IV of the Higher Education 
                Act of 1965 (Budget account number: 91-0201-0-1-502).
                    (F) Grants to States for State Student Incentives 
                under subpart 4 of part A of title IV of the Higher 
                Education Act of 1965 (Budget account number: 91-0200-
                0-1-502).
                    (G) Grants to Institutions and Consortia to 
                Encourage Women and Minority Participation in Graduate 
                Education under part A of title IX of the Higher 
                Education Act of 1965 (Budget account number: 91-0900-
                0-1-502).
                    (H) Programs under the Follow Through Act (Budget 
                account number: 91-1000-0-1-501).
            (7) Jobs and training aid.--
                    (A) The adult training program carried out under 
                part A of title II of the Job Training Partnership Act 
                (Budget account number: 16-0174-0-1-504-00.01).
                    (B) The summer youth employment and training 
                program carried out under part B of title II of the Job 
                Training Partnership Act (Budget account number: 16-
                0174-0-1-504-00.02).
                    (C) The Job Corps carried out under part B of title 
                IV of the Job Training Partnership Act (Budget account 
                number: 16-0174-0-1-504-00.12).
                    (D) The older American community service employment 
                program carried out under title V of the Older 
                Americans Act of 1965 (Budget account number: 16-0175-
                0-1-504).
                    (E) The JOBS program carried out under part F of 
                title IV of the Social Security Act (Budget account 
                number: 75-1509-0-1-504).
                    (F) The Foster Grandparent Program carried out 
                under part B of title II of the Domestic Volunteer 
                Service Act of 1973 (Budget account number: 44-0103-0-
                506).
                    (G) The Senior Companion Program carried out under 
                part C of title II of the Domestic Volunteer Service 
                Act of 1973 (Budget account number: 44-0103-0-1-506).
                    (H) The employment and training programs for Native 
                Americans and migrant and seasonal farmworkers 
                supported under sections 501 and 502 of the Job 
                Training Partnership Act (Budget account number: 16-
                0174-0-1-504).
                    (I) Indian and Native American employment and 
                training program (Budget account number: 16-0174-0-1-
                504).
            (8) Social services.--
                    (A) The Social Services Block Grant under title XX 
                of the Social Security Act (Budget account number: 75-
                1634-0-1-506).
                    (B) The community service block grant programs 
                carried out under the Community Services Block Grant 
                Act (Budget account number: 75-1504-0-1-506).
                    (C) The activities carried out under the Legal 
                Services Corporation Act (Budget account number: 20-
                0501-0-1-752).
                    (D) The emergency food and shelter program under 
                title III of the Steward B. McKinney Homeless 
                Assistance Act (Budget account number: 58-0103-1-605).
                    (E) The population research and voluntary family 
                planning programs carried out under title X of the 
                Public Health Service Act (Budget account number: 75-
                0350-0-1-550).
                    (F) The program under the Domestic Volunteer 
                Service Act of 1973 (Budget account number: (44-0103-0-
                1-506).
                    (G) The supportive services carried out under part 
                B of title III of the Older Americans Act of 1965 
                (Budget account number: (75-0142-1-506).
                    (I) Day care assistance under section 402(g) of the 
                Social Security Act (Budget account number: 75-1515-0-
                1-609).
            (9) Aid to low-income communities.--
                    (A) The community development block grant program 
                carried out under the Housing and Community Development 
                Act of 1974 (Budget account number: 86-0162-0-1-451).
                    (B) The urban development block grant program 
                carried out under the Housing and Community Development 
                Act of 1974 (Budget account number: 86-0170-0-1-451).
                    (C) Economic development administration under the 
                Public Works and Economic Development Act of 1965 
                (Budget account number: 13-2050-0-1-452).
                    (D) The Appalachian regional development program 
                under the Appalachian Regional Development Act of 1965 
                (Budget account number: 46-0200-0-1-452).
                    (E) The activities carried out under section 204 of 
                the Immigration Reform and Control Act of 1986 (Budget 
                account number: 75-1508-0-1-506).

SEC. 604. SAVINGS FROM WELFARE SPENDING LIMITS TO BE USED FOR DEFICIT 
              REDUCTION.

    (a) Deficit Reduction.--All savings to the Federal Government 
resulting from the spending cap imposed under section 601 shall be used 
for deficit reduction. Such savings shall not be used to fund increased 
spending under any programs that are not subject to the spending cap.
    (b) Adjustment of Discretionary Caps.--For purposes of the Omnibus 
Budget Reconciliation Act of 1993, the present discretionary spending 
caps shall be adjusted for the net increase in discretionary spending 
that results from the creation of the welfare block grant as a 
replacement for current welfare entitlement programs.

SEC. 605. SPECIAL RULES WITH RESPECT TO GRANTS FOR ASSISTANCE TO 
              CHILDREN BORN OUT-OF-WEDLOCK.

    (a) In General.--Effective upon the termination of funding under 
section 603 for the aid to families with dependent children program 
under part A of title IV of the Social Security Act--
            (1) the requirement of section 440(b)(1) of the Social 
        Security Act shall be satisfied by a State if the State had a 
        plan in effect under section 402 of such Act during the base 
        year (as defined in section 442(b)(2)(C)(iii) of such Act); and
            (2) notwithstanding section 442(a) of the Social Security 
        Act, the Federal savings amount for a State for a fiscal year 
        shall be determined under subsection (b).
    (b) Determination of Federal Savings Amount.--
            (1) In general.--The Federal savings amount for a State for 
        a fiscal year is an amount equal to the product of--
                    (A) the State per capita amount for the fiscal year 
                (as determined under paragraph (2)); and
                    (B) the State's excluded population for the fiscal 
                year (as determined under section 442(b)(3) of the 
                Social Security Act).
            (2) Per capita amount.--
                    (A) In general.--The State per capita amount for a 
                fiscal year determined under this paragraph is--
                            (i) for fiscal year 1995, the sum of--
                                    (I) the average per capita amount 
                                received by the State under section 403 
                                of the Social Security Act during the 
                                base year (as defined in section 
                                442(b)(3)(C)(iii) of the Social 
                                Security Act); and
                                    (II) the average per capita amount 
                                received by AFDC recipients (as defined 
                                in subparagraph (B)) in the State under 
                                the food stamp program under the Food 
                                Stamp Act of 1977 during such base 
                                year; and
                            (ii) for fiscal year 1996 and succeeding 
                        fiscal years, the amount determined under this 
                        paragraph for the preceding fiscal year 
                        updated, through the midpoint of the fiscal 
                        year, by projecting the estimated percentage 
                        change in the Consumer Price Index during the 
                        12-month period ending at that midpoint, with 
                        appropriate adjustments to reflect previous 
                        underestimations or overestimations under this 
                        subparagraph in the projected percentage change 
                        in the Consumer Price Index.
                    (B) Definition.--For purposes of subparagraph (A), 
                the term ``AFDC recipient'' means an individual who 
                received aid to families with dependent children under 
                part A of title IV of the Social Security Act during 
                the base year (as defined in section 442(b)(3)(C)(iii) 
                of the Social Security Act).

SEC. 606. ELIGIBILITY UNDER THE MEDICAID PROGRAM.

    (a) In General.--Section 1902(a)(10)(A)(i)(I) (42 U.S.C. 
1396a(a)(10)(A)(i)(I)) is amended to read as follows:
                                    ``(I)(aa) who are receiving aid or 
                                assistance under any plan of the State 
                                approved under title I, X, or XIV, or
                                    ``(bb) who would be eligible to 
                                receive aid or assistance under the 
                                State's plan under title XVI or part A 
                                or E of title IV, as approved on the 
                                day before the date of the enactment of 
                                the Welfare Reform Act of 1994, if such 
                                plan were in effect,''.
    (b) State Waiver.--A State may request a waiver from the Secretary 
of Health and Human Services to simplify the medicaid program 
eligibility criteria set forth in section 1902(a)(10)(A)(i)(I)(bb) (42 
U.S.C. 1396a(a)(10)(A)(i)(I)(bb)) of the Social Security Act. The 
Secretary shall review any such waiver request and grant approval only 
if Federal expenditures under the medicaid program will not be 
increased as a result of such approval.
    (c) Effective Date.--The amendment made by subsection (a) shall be 
effective on October 1, 1994.

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