[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 209 Introduced in Senate (IS)]
104th CONGRESS
1st Session
S. 209
To replace the Aid to Families with Dependent Children Program under
title IV of the Social Security Act and a portion of the food stamp
program under the Food Stamp Act of 1977 with a block grant to give the
States the flexibility to create innovative welfare-to-work programs,
to reduce the rate of out-of-wedlock births, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 12 (legislative day, January 10), 1995
Mr. Grassley (for himself and Mr. Thurmond) introduced the following
bill; which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To replace the Aid to Families with Dependent Children Program under
title IV of the Social Security Act and a portion of the food stamp
program under the Food Stamp Act of 1977 with a block grant to give the
States the flexibility to create innovative welfare-to-work programs,
to reduce the rate of out-of-wedlock births, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Welfare-to-Work
and Strong Families Act of 1995''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Purpose.
Sec. 4. Definition of State.
Sec. 5. Applications by States.
Sec. 6. State welfare-to-work and stronger families program described.
Sec. 7. State grants.
Sec. 8. Termination of certain Federal welfare programs.
Sec. 9. Secretarial submission of legislative proposal for amendments
to medicaid eligibility criteria and
technical and conforming amendments.
Sec. 10. Savings.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) The current welfare system is broken and requires
replacement.
(2) ``Work'' is what works best for American families.
(3) Since State and local governments know the best methods
of connecting welfare recipients to work and since each
community faces different circumstances, Federal assistance to
the States should be flexible.
(4) Government has the responsibility to provide a helping
hand to assist individuals but individuals have the
responsibility to use the assistance to help themselves.
(5) Between 1970 and 1991, the total number of all out-of-
wedlock births in the United States has increased from 10 to 30
percent and, if that rate of increase continues, by 2015, 50
percent of all births in the United States will be out-of-
wedlock.
(6) The negative consequences of out-of-wedlock births on
the child, mother, and society are well-documented as follows:
(A) Children born into families receiving welfare
assistance are 3 times more likely to receive welfare
assistance when they reach adulthood than children born
into families that do not receive welfare.
(B) Young women who have children before finishing
high school are more likely to receive welfare
assistance for a substantial period of time.
(C) A single parent family is 6 times more likely
to live in poverty than a two-parent family.
(7) Due to the crisis caused by the growing rate of out-of-
wedlock births in the United States, the Congress deems the
reduction of out-of-wedlock births to be an important
governmental interest.
SEC. 3. PURPOSE.
The purpose of this Act is to create a block grant program to
replace the aid to families with dependent children program under title
IV of the Social Security Act and a portion of the food stamp program
under the Food Stamp Act of 1977 and give the States the flexibility to
create innovative welfare-to-work programs and programs designed to
reduce the increasing rate of children born out-of-wedlock.
SEC. 4. DEFINITION OF STATE.
For purposes of this Act, the term ``State'' means each of the
several States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American
Samoa.
SEC. 5. APPLICATIONS BY STATES.
(a) In General.--Each State desiring to receive a grant to operate
a State welfare-to-work and stronger families program described in
section 6 shall annually submit an application to the Secretary of
Health and Human Services (hereafter in this Act referred to as the
``Secretary'') containing the matter described in subsection (b) in
such manner as the Secretary may require.
(b) Contents.--
(1) Fiscal year 1996.--An application for a grant to
operate a State welfare-to-work and stronger families program
during fiscal year 1996 shall contain a description of the
program in accordance with section 6.
(2) Subsequent fiscal years.--
(A) Contents.--
(i) In general.--Except as provided in
clause (ii), an application for a grant to
operate a State welfare-to-work and stronger
families program during fiscal year 1997 and
each subsequent fiscal year shall contain--
(I) a description of the program in
accordance with section 6;
(II) the State work percentage (as
determined under subparagraph (B)) for
each of the 2 preceding fiscal years;
(III) a statement of the number of
participants who became ineligible for
participation in the program due to
increased income for each of the 2
preceding fiscal years;
(IV) the State out-of-wedlock birth
rate percentage (as determined under
subparagraph (D)) for each of the 2
preceding fiscal years; and
(V) a statement of the amount of
non-Federal resources that the State
invested in the program in the
preceding fiscal year.
(ii) Special rule for fiscal year 1997.--An
application for fiscal year 1997 need only
contain the information described in subclauses
(II), (III), and (IV) of clause (i) for fiscal
year 1996.
(B) State work percentage.--For purposes of
subparagraph (A)(i)(II), the State work percentage
(prior to any adjustment under subparagraph (C)) for a
fiscal year is equal to--
(i) the average weekly number of
participants in the State welfare-to-work and
stronger families program who were employed in
private sector or public sector jobs for at
least 20 hours per week, divided by
(ii) the average weekly number of
participants in the State welfare-to-work and
stronger families program.
(C) Adjustment.--
(i) In general.--The State work percentage
determined under subparagraph (B) for a fiscal
year shall be adjusted by subtracting 1
percentage point from such State work
percentage for each 5 percentage points by
which the percentage of individuals described
in subparagraph (B)(i) who are also described
in clause (ii) of this subparagraph
participating in the program in such fiscal
year falls below 75 percent of the number of
individuals described in subparagraph (B)(i) in
such fiscal year.
(ii) Individual described.--An individual
described in this clause is a custodial parent
or other individual who is primarily
responsible for the care of a child under the
age of 18.
(D) State out-of-wedlock birth rate percentage.--
For purposes of subparagraph (A)(i)(IV), the State out-
of-wedlock birth rate percentage for a fiscal year is
equal to--
(i) the total number of children in the
State who were born out-of-wedlock during the
fiscal year, divided by
(ii) the total number of children in the
State who were born during the fiscal year.
(E) Monitoring of data.--The Secretary shall ensure
the validity of the data provided by a State under this
paragraph.
(c) Approval.--
(1) Fiscal years 1996 and 1997.--The Secretary shall
approve each application for a grant to operate a State
welfare-to-work and stronger families program--
(A) during fiscal year 1996, if the application
contains the information described in subsection
(b)(1); and
(B) during fiscal year 1997, if the application
contains the information described in subsection
(b)(2).
(2) Automatic approval in subsequent fiscal years.--The
Secretary shall approve any application for a grant to operate
a State welfare-to-work and stronger families program during
fiscal year 1998 and each succeeding fiscal year if--
(A) the State's application reports that--
(i) the State work percentage for the
preceding fiscal year is greater than the State
work percentage for the second preceding fiscal
year; or
(ii) more participants became ineligible
for participation in the State welfare-to-work
and stronger families program during the
preceding fiscal year due to increased income
than became ineligible for participation in the
program in the second preceding fiscal year as
a result of increased income;
(B) the State's application reports that the State
out-of-wedlock birth rate percentage for the preceding
fiscal year is less than the State out-of-wedlock birth
rate percentage for the second preceding fiscal year;
and
(C) the State's application reports that the number
of participants in the State welfare-to-work and
stronger families program for the preceding fiscal year
is less than the number of participants in the State
welfare-to-work and stronger families program for the
second preceding fiscal year.
(3) Secretarial review.--
(A) In general.--If a State application for a grant
under this Act is not automatically approved under
paragraph (2), the Secretary shall approve the
application upon a finding that the application--
(i) provides an adequate explanation of why
the application was not automatically approved;
and
(ii) provides a plan of remedial action
which is satisfactory to the Secretary.
(B) Adequate explanations.--An adequate explanation
under subparagraph (A) may include an explanation of
economic conditions in the State, failed program
innovations, or other relevant circumstances.
(4) Resubmission.--A State may resubmit an application for
a grant under this Act until the Secretary finds that the
application meets the requirements of paragraph (3)(A).
SEC. 6. STATE WELFARE-TO-WORK AND STRONGER FAMILIES PROGRAM DESCRIBED.
(a) In General.--A State welfare-to-work and stronger families
program described in this section shall--
(1) provide that during fiscal year 1996, the State shall
designate individuals who are eligible for participation in the
program and such individuals may include those individuals who
received benefits under the State plan approved under part A of
title IV of the Social Security Act during fiscal year 1995;
(2) provide that during fiscal year 1997 and each
subsequent fiscal year, the State shall designate individuals
who are eligible for participation in the program (as
determined by the State), with priority given to those
individuals most in need of such services;
(3) with respect to increasing the State work percentage,
be designed to move individuals from welfare to self-
sufficiency and may include--
(A) job placement and training;
(B) supplementation of earned income;
(C) nutrition assistance and education;
(D) education;
(E) vouchers to be used for rental of privately
owned housing;
(F) child care;
(G) State tax credits;
(H) health care;
(I) supportive services;
(J) community service employment;
(K) asset building programs; or
(L) any other assistance designed to move such
individuals from welfare to self-sufficiency; and
(4) with respect to reducing the State out-of-wedlock birth
rate percentage, be designed to strengthen two-parent families
and may include--
(A) education;
(B) family planning services (except abortion-
related services);
(C) a cap of benefits under the program with
respect to additional children conceived out-of-wedlock
after a participant has entered the program;
(D) the denial of benefits under the program to a
potential participant in the program if that potential
participant has a child born out-of-wedlock after a
date established by the State;
(E) State tax credits for marriage; or
(F) any other assistance designed to reduce out-of-
wedlock births and encourage marriage.
(b) No Entitlement.--Notwithstanding any criteria a State may
establish for participation in a State welfare-to-work and stronger
families program created in accordance with this Act, no individual
shall be considered to be entitled to participate in that program.
SEC. 7. STATE GRANTS.
(a) In General.--The Secretary shall annually award to each State
with an application approved under section 5(c) an amount equal to--
(1) in fiscal year 1996, 100 percent of the State's base
amount;
(2) in fiscal year 1997, the sum of 80 percent of the
State's base amount, 20 percent of the State's share of the
national grant amount, and any applicable bonus payment;
(3) in fiscal year 1998, the sum of 60 percent of the
State's base amount, 40 percent of the State's share of the
national grant amount, and any applicable bonus payment;
(4) in fiscal year 1999, the sum of 40 percent of the
State's base amount, 60 percent of the State's share of the
national grant amount, and any applicable bonus payment;
(5) in fiscal year 2000, the sum of 20 percent of the
State's base amount, 80 percent of the State's share of the
national grant amount, and any applicable bonus payment; and
(6) in fiscal year 2001 and each subsequent fiscal year,
the sum of 100 percent of the State's share of the national
grant amount and any applicable bonus payment.
(b) State Base Amount.--
(1) In general.--For purposes of subsection (a), a State's
base amount is equal to--
(A) for fiscal year 1996, 100 percent of the amount
determined under paragraph (2); and
(B) for fiscal year 1997 and succeeding fiscal
years, 96 percent of the amount determined under
paragraph (2).
(2) Amount determined.--The amount determined under this
paragraph for a State is an amount equal to the sum of--
(A) the amount of Federal financial participation
received by the State under section 403 of the Social
Security Act (42 U.S.C. 603) during fiscal year 1995;
and
(B) an amount equal to the sum of--
(i) the benefits under the food stamp
program under the Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.), including benefits
provided under section 19 of such Act (7 U.S.C.
2028), during fiscal year 1995 other than
benefits provided to elderly or disabled
individuals in the State (as determined under
section 3(r)) of such Act (7 U.S.C. 2012); and
(ii) the amount paid to the State under
section 16 of the Food Stamp Act of 1977 (7
U.S.C. 2025) during fiscal year 1995 for
administrative expenses for providing benefits
to nonelderly and nondisabled individuals.
(c) State Share of the National Grant Amount.--
(1) In general.--For purposes of subsection (a), the
State's share of the national grant amount for a fiscal year is
equal to the sum of the amounts determined under paragraph (2)
(relating to economic need) and paragraph (3) (relating to
State effort) for the State.
(2) Economic need.--The amount determined under this
paragraph is equal to the sum of the following amounts:
(A) State per capita income measure.--The amount
which bears the same ratio to one-quarter of the
national grant amount as the product of--
(i) the population of the State; and
(ii) the allotment percentage of the State
(as determined under paragraph (4)),
bears to the sum of the corresponding products for all
States.
(B) State unemployment measure.--The amount which
bears the same ratio to one-quarter of the national
grant amount as the number of individuals in the State
who are estimated as being unemployed (determined in
accordance with the Department of Labor's annual
estimates) bears to the number of individuals in all
States who are estimated as being unemployed (as so
determined).
(3) State effort.--The amount determined under this
paragraph is the amount which bears the same ratio to one-half
of the national grant amount as the product of--
(A) the dollar amount the State invested in the
State welfare-to-work and stronger families program in
the previous fiscal year, as reported in section
5(b)(2)(A)(i)(V); and
(B) the allotment percentage of the State (as
determined under paragraph (4)),
bears to the sum of the corresponding products for all States.
(4) Allotment percentage.--
(A) In general.--Except as provided in subparagraph
(C), the allotment percentage for any State shall be
100 percent, less the State percentage.
(B) State percentage.--The State percentage shall
be the percentage which bears the same ratio to 50
percent as the per capita income of such State bears to
the per capita income of all States.
(C) Exception.--The allotment percentage shall be
70 percent in the case of Puerto Rico, the Virgin
Islands, Guam, and American Samoa.
(5) Determination of grant amounts.--Each State's share of
the national grant amount shall be determined under this
subsection on the basis of the average per capita income of
each State and all States for the most recent fiscal year for
which satisfactory data are available from the Department of
Commerce and the Department of Labor.
(6) National grant amount.--The term ``national grant
amount'' means an amount equal to 96 percent of the sum of the
amounts determined under subsection (b)(2) for all States.
(d) Bonus Payments.--
(1) Criteria.--Beginning with fiscal year 1997, the
Secretary may use 4 percent of the sum of the amounts
determined under subsection (b)(2) for all States to award
additional bonus payments under this section to those States
which have the highest or most improved State work percentages
as determined under section 5(b)(2)(B) and the lowest or most
improved State out-of-wedlock birth rate percentages as
determined under section 5(b)(2)(D).
(2) Leading job placement and leading out-of-wedlock birth
rate reduction states.--The Secretary shall designate one State
as the leading job placement State and one State (which may be
the same State as the designated leading job placement State)
as the leading out-of-wedlock birth rate reduction State and
such State or States shall receive the highest bonus payments
under paragraph (1).
(3) Presidential award.--The President is authorized and
requested to acknowledge a State designated under paragraph (2)
with a special Presidential award.
(e) Use of Funds for Administrative Purposes.--A State shall not
use more than 10 percent of the amount it receives under this section
for the administration of the State welfare-to-work and stronger
families program.
(f) Capped Entitlement.--This section constitutes budget authority
in advance of appropriations Acts, and represents the obligation of the
Federal Government to provide the payments described in subsection (a)
(in an amount not to exceed the sum of the amounts determined under
subsection (b)(2) for all States).
SEC. 8. TERMINATION OF CERTAIN FEDERAL WELFARE PROGRAMS.
(a) Termination of AFDC and JOBS Programs.--
(1) AFDC.--Part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.) is amended by adding at the end the
following new section:
``termination of authority
``Sec. 418. The authority provided by this part shall terminate on
October 1, 1995.''.
(2) JOBS.--Part F of title IV of the Social Security Act
(42 U.S.C. 681 et seq.) is amended by adding at the end the
following new section:
``termination of authority
``Sec. 488. The authority provided by this part shall terminate on
October 1, 1995.''.
(b) Food Stamp Program To Serve Only Elderly and Disabled
Individuals.--
(1) Definitions.--Section 3 of the Food Stamp Act of 1977
(7 U.S.C. 2012) is amended--
(A) in subsection (g)--
(i) in paragraph (4), by striking ``(and
their spouses)'';
(ii) in paragraph (5)--
(I) by striking ``in the case of''
and inserting ``in the case of elderly
or disabled''; and
(II) by inserting ``disabled''
before ``children''; and
(iii) in paragraph (8), by inserting
``elderly or disabled'' before ``women and
children temporarily'';
(B) in subsection (i)--
(i) in the first sentence--
(I) in paragraph (1), by inserting
``elderly or disabled'' before
``individual''; and
(II) in paragraph (2), by inserting
``, each of whom is elderly or
disabled,'' after ``individuals'';
(ii) in the second sentence, by inserting
before the period at the end the following: ``,
if each of the individuals is elderly or
disabled'';
(iii) in the third sentence--
(I) by striking ``, together'' and
all that follows through ``of such
individual,''; and
(II) by striking ``, excluding the
spouse,''; and
(iv) in the fifth sentence--
(I) by striking ``coupons, and''
and inserting ``coupons, and elderly or
disabled''; and
(II) by inserting ``disabled''
after ``together with their''; and
(C) in subsection (r), by striking ```Elderly'' and
all that follows through ``who'' and inserting the
following: ```Elderly or disabled', with respect to a
member of a household or other individual, means a
member or other individual who''.
(2) Conforming amendments.--
(A) Eligibility.--Section 5 of the Food Stamp Act
of 1977 (7 U.S.C. 2014) is amended--
(i) in the first sentence of subsection
(c)--
(I) by striking ``program if--''
and all that follows through
``household's income'' and inserting
``program if the income of the
household'';
(II) by striking ``respectively;
and'' and inserting ``respectively.'';
and
(III) by striking paragraph (2);
and
(ii) in subsection (e)--
(I) in the first sentence, by
striking ``containing an elderly or
disabled member and determining benefit
levels only for all other households'';
(II) in the fifteenth sentence--
(aa) by striking
``containing an elderly or
disabled member''; and
(bb) in subparagraph (A),
by striking ``elderly or
disabled members'' and
inserting ``the members'';
(III) in the seventeenth sentence,
by striking ``elderly and disabled'';
and
(IV) by striking the fourth through
fourteenth sentences.
(B) Periodic reporting.--Section 6(c)(1)(A)(iii) of
the Food Stamp Act of 1977 (7 U.S.C.
2015(c)(1)(A)(iii)) is amended by striking ``and in
which all adult members are elderly or disabled''.
(3) Effective date.--The amendments made by this subsection
shall apply on and after October 1, 1995.
(c) References in Other Laws.--
(1) In general.--Any reference in any law, regulation,
document, paper, or other record of the United States to any
provision that has been terminated by reason of the amendments
made in subsection (a) shall, unless the context otherwise
requires, be considered to be a reference to such provision, as
in effect immediately before the date of the enactment of this
Act.
(2) State plans.--Any reference in any law, regulation,
document, paper, or other record of the United States to a
State plan that has been terminated by reason of the amendments
made in subsection (a), shall, unless the context otherwise
requires, be considered to be a reference to such plan as in
effect immediately before the date of the enactment of this
Act.
SEC. 9. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR AMENDMENTS
TO MEDICAID ELIGIBILITY CRITERIA AND TECHNICAL AND
CONFORMING AMENDMENTS.
The Secretary shall, within 90 days after the date of enactment of
this Act, submit to the appropriate committees of the Congress, a
legislative proposal providing eligibility criteria for medical
assistance under a State plan under title XIX of the Social Security
Act (42 U.S.C. 1396 et seq.) in lieu of the eligibility criteria under
section 1902(a)(10)(A)(i) of such Act (42 U.S.C. 1396a(a)(10)(A)(i))
relating to the receipt of aid to families with dependent children
under a State plan under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.) and such technical and conforming amendments in
the law as are required by the provisions of this Act.
SEC. 10. SAVINGS.
Any savings resulting from the provisions of this Act shall be
dedicated to reduction of the Federal budget deficit.
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