[Congressional Record Volume 141, Number 140 (Monday, September 11, 1995)]
[Senate]
[Pages S13152-S13178]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    THE FAMILY SELF-SUFFICIENCY ACT

  The Senate continued with the consideration of the bill.
  Mr. HELMS. Mr. President, the last thing I want to do is shorten any 
remarks that the distinguished Senator from New York wished to make. He 
is a fine orator and a good Senator and a good friend.
  Let me ask a parliamentary inquiry, if I may. Is there a time 
limitation on each amendment this day?
  The PRESIDING OFFICER. There is no time limitation on each amendment, 
but the Dodd amendment does have a 4-hour time limitation with a vote 
scheduled for 5 this evening, so debate on that particular amendment 
could begin no later than 1 o'clock.
  Mr. HELMS. I see. So I will not be burdening the Senate if I take a 
few minutes longer than 5 or 10 minutes with my remarks, if no Senator 
is here to offer an amendment.
  The PRESIDING OFFICER. I think the Senator may proceed.
  Mr. HELMS. I thank the Chair.


                           Amendment No. 2523

  Mr. HELMS. Mr. President, I call up amendment, No. 2523, and ask it 
be stated.
  The PRESIDING OFFICER. The clerk will report.
  The bill clerk read as follows:

       The Senator from North Carolina [Mr. Helms] proposes an 
     amendment numbered 2523.

  Mr. HELMS. Mr. President, I ask unanimous consent that reading of the 
amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  [The text of the amendment is printed in the Friday, September 8, 
1995 edition of the Record.]
  Mr. HELMS. Mr. President, I had the clerk read what I considered to 
be the most relevant part of the amendment. It has to do with people 
sitting around on their posteriors and doing no work at all--not 
wanting to do any work at all--yet drawing food stamps regularly and 
purchasing anything they want to purchase with them, regardless of the 
statute. I say this as a Senator who has been here for almost 23 years, 
as a Senator who has served as chairman of the Senate Agriculture 
Committee, during which time I did my best to crack down on the abuse 
of the Food Stamp Program.
  I recall getting the inspectors general to conduct a pilot program in 
a number of States, and I specified that my State be first, the State 
of North Carolina. The inspectors went to cities like Fayetteville and 
Wilmington, Laurel Hill and Durham, Charlotte and High Point, Winston-
Salem, Greensboro and Asheville. Everywhere they went, they found 
terrific fraud in the Food Stamp Program. That is the reason I am 
offering this amendment today.
  Now, there are going to be Senators who will speak in opposition to 
it--including at least one who is a very close personal friend of mine, 
Mr. Cochran--as I understand it.
  I intend to hold the floor until Senator Cochran can get here so that 
he can speak against my amendment, which I wish he would not do. But he 
does what he does in good conscience and I respect him for it.
  Mr. President, I have seen the good intentions of Members of the 
Senate and the House of Representatives and others who have sponsored 
and advocated the Food Stamp Program. Instead, this program has moved 
rapidly into a multibillion dollar boondoggle with the American 
taxpayers footing the bill. I doubt there are very many citizens who, 
themselves, have not seen examples of exactly what I am talking about.
  The Federal Food Stamp Program, over the past 3 decades, has clearly 
been a major contributor to the Federal debt which, I might add, Mr. 
President, will surpass the $5 trillion mark before the end of this 
year.
  Mr. President, as an aside, I went into the Cloakroom not long ago 
and posed a little question to several Senators. I asked, ``How many 
million in a trillion?'' I received five different answers from 
Senators who participate in the fiscal policy of this country. If the 
Chair wants to know how many million in a trillion, I will tell him. 
There are a million million in a trillion. That gives you a perspective 
of what we are doing to the young people in allowing this debt to 
increase and increase and increase while efforts to enact a balanced 
budget amendment to the Constitution are filibustered.
  I say that as a preface to my having offered an amendment to the Dole 
substitute amendment to H.R. 4, the Work Opportunities Act. If Congress 
truly expects to achieve meaningful welfare reform, Congress 
absolutely, in my judgment, must insist upon responsibility and common 
sense in the operation of the Federal Food Stamp Program. On many, many 
occasions, I urged the Agriculture Committee and the various witnesses 
and nominees who have come before the committee to reexamine their 
spending priorities when it comes to Federal nutrition programs.
  I have pleaded, time and time again, that the Agriculture Committee 
decide, and decide now, whether the U.S. Department of Agriculture will 
be restored, as an entity, to its original purpose--that is to say, a 
department dedicated to America's farmers and agriculture--instead of 
the social services instrumentality that it has become during the past 
30 years.
  For the record, the USDA's 1995 feeding assistance and nutrition 
programs cost the American taxpayers an estimated $39 billion with more 
than 40 million Americans participating in the free food and free 
services program. That is for 1 year. The Food Stamp Program alone 
costs $27 billion of which $3 billion is squandered due to waste, 
abuse, and fraud--as I described earlier when inspectors went into my 
own State of North Carolina. And what is true in North Carolina is true 
in every State in the Union.
  Mr. President, to put these figures into perspective, 62 percent of 
the entire USDA budget goes for food and consumer services with the 
Food Stamp Program comprising 42 percent of the entire budget. I wonder 
how many Americans realize that. It is easy to understand why the 
farmers I hear from are sick and tired of being shoved around by the 
Federal agency created to serve them.
  I recall my years as chairman of the Ag Committee in the 1980's. I 
focused attention time and time again, on specific, precise 
identification of the waste and fraud found in the Food Stamp Program. 
I found a program in desperate need of repair--that was 10 years ago--
because of the countless numbers of people willing to take advantage of 
a Federal Government handout--and they still are. The only difference 
is there are more of them today than there were then. I discovered then 
what Reader's Digest reported in its February, 1994 issue:

       . . . food stamps have become a second currency used to pay 
     for drugs, prostitution, weapons, cars--even a house.''

  People have even bought homes. They have gone to houses of 
assignation, and the proprietors of such enterprises accept food 
stamps.
  Unfortunately, the political climate today is the same as it has 
always been. Attempts to restructure Federal programs to meet the needs 
of the poor while trying to use wisely the money of the American 
taxpayers brings the same old cadre of people saying this is heartless 
and this is cruel. It is not. It is an attempt to straighten this 
Government out--one small facet of it, but one expensive facet 
nonetheless.
  Those who support the status quo of maintaining unlimited resources 
for social programs without regard to the cost of these programs to the 
taxpayers of today, and tomorrow, have simply ignored two significant 
facts crucial to 

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the welfare debate--and I would be derelict in my duty if I did not 
bring that up.
  First, Congress--not some bureaucracy downtown--the U.S. House of 
Representatives and the U.S. Senate, is responsible for the expensive 
and costly social service programs and the resulting runaway debt. 
These programs may have been recommended from downtown, or by some 
politician who was thinking of the next election instead of the next 
generation, but the final, ultimate responsibility for the debt, for 
the creation of these foolish programs, lies right here where we work. 
We cannot put it on any President or any department or any bureaucrat. 
It was done right here.
  Every day that the Senate has been in session, for more than 3 years, 
I have reported--maybe some Senators have noticed it--the most recently 
available exact total of the Federal debt down to the penny. For 
example, as of the close of business on Thursday, September 7, the 
exact total stood at $4,968,651,845,437.79. (On a per capita basis 
every man, woman and child owes $18,861.09.)
  The second point, which naturally follows the first, is that Congress 
must restore fiscal responsibility and integrity to federal social 
service and welfare programs. Nobody else is going to do it. Nobody 
else can do it. If we do not do it, it will not be done, which brings 
me to the current discussion on precisely how the Federal Government is 
going to remedy the broken and irreparably destructive welfare system. 
I intentionally used the word ``irreparably'' because the current 
system built on a foundation of a government handout with nothing in 
return is beyond restoration. The concept is bad. It is bad for the 
taxpayer. It is bad for the personal morality of the lawmakers who 
permit it to happen, and in fact, encourage it to happen. And, it is 
bad for the recipient of welfare who is able to work but just will not 
work.
  So that is why I am here this morning. We must instill into the 
welfare instrumentality and infrastructure the components of the 
underpinnings of what I like to call the Miracle of America. Can you 
imagine what laughter would have ensued if a little over 200 years ago 
at Philadelphia the Founding Fathers had been confronted with the 
suggestion that they pay people not to work--if somebody had suggested 
a Food Stamp Program? I think Thomas Jefferson would have rolled on the 
floor in protest.
  We absolutely owe it to the people of America to do what we can--and 
do it now--to build an accountable work ethic, personal responsibility 
and common sense in public policy. If we do not do this, we fail in our 
duty.
  So the pending amendment, which I have offered to the Dole substitute 
amendment, will require able-bodied individuals who receive food stamp 
benefits to work at least 40 hours every month--not every week, 40 
hours every month--before they receive food stamp benefits. This 
amendment will save the American taxpayers $5.6 billion.
  My amendment focuses on people who are able to work. I do not want 
anybody coming to the Senate floor moaning and groaning, ``How about 
the sick and the infirm?'' And do not try to tell me that there are not 
some kind of jobs available. It may not be the kind of jobs or the kind 
of work that these people want to do. The problem is they do not want 
to work.
  The underlying substitute amendment simply does not go far enough in 
work requirements, as far as I am concerned. It allows recipients to 
receive benefits for an entire year while requiring that they work only 
6 months.
  This loophole--and I admire the author of the substitute--allows 
recipients to sit on their rear ends and do nothing and yet continue to 
receive those benefits that cost the taxpayers billions of dollars.
  My pending amendment sets the parameters so that able-bodied citizens 
receiving food stamp benefits--and this includes approximately 2.5 
million people--must work before he or she receives their monthly 
allotment of food stamp benefits. In the meantime, while earning their 
food assistance, recipients will have ample time to look for further 
permanent employment so that they can move altogether off of the 
welfare rolls.
  One additional important fact: the pending amendment exempts 
children; it exempts their parents; it exempts the disabled; it exempts 
the elderly. The pending amendment focuses--as I stated before--on the 
2.5 million able-bodied food stamp recipients.
  In my judgment, Congress simply can no longer look the other way when 
it comes to restoring responsibility to the Federal nutrition and 
welfare programs. Congress can no longer allow unlimited tax dollars to 
be used on misguided, although well-intentioned, social programs. It is 
time to stop throwing taxpayers' money at pie-in-the-sky Federal 
programs instead of working to get to the root of the problem. This is 
one step toward reaching the root of the problem.
  It goes without saying that I hope Senators will help accomplish this 
goal with their support of this amendment.
  Mr. President, I understood the distinguished Senator, my friend from 
Mississippi, Mr. Cochran, was to be here about 11 or 11:15 so that he 
could speak in opposition to my amendment. I hope the Chair will 
recognize the Senator from Mississippi at such time as he may appear in 
the Chamber for that purpose.
  I yield the floor.
  Mr. THOMAS. Mr. President, I would like to speak in general terms 
about the bill that is before us, not particularly on the amendment 
offered by the Senator from South Carolina, but I will be brief and be 
happy to yield if Senator Cochran comes to the floor.
  Mr. President, I, of course, have watched with great interest over 
the last week as we have talked about welfare, and much of it has been 
in great detail, as it should be. But I rise basically to support the 
Dole amendment. I rise to urge that we pass this bill. There will be 
changes. There should be changes. There should be great debates. There 
are differences of view. But those things can, indeed, be resolved.
  The point is we have come to the time, the monumental time in which 
we can reform welfare--almost everyone says welfare needs to be 
reformed--and yet we go on and on in great detail and, indeed, risk the 
opportunity of passage of this bill.
  So I rise to suggest to my colleagues that we need to move forward. 
We need to consider the amendments. We need to consider the ideas. 
Mostly, however, we need to be committed to taking this opportunity to 
passing welfare reform. It is a historic time. It is the first time in 
most of our memories when we have had an opportunity to really look at 
what are basically Great Society programs that have not been reviewed, 
have not been changed in a very long time, have not been questioned as 
to whether or not they are fulfilling the purpose for which they were 
devised, have not been measured in terms of their effectiveness, in 
terms of accomplishing that goal.
  No one would oppose the idea that we need to help people who need 
help, but the purpose is to help them back into the workplace, back 
into the private sector so that they can help themselves.
  Nobody would argue that making a career of welfare is a great thing 
to do. No one wants to do that. So we have for the first time an 
opportunity to make these measurements, and I certainly am encouraged 
that we are doing it.
  I have to admit that we are somewhat discouraged in that this is not 
the first time this year we have entered into one of great debates when 
we have had people stand up on both sides of the aisle and say we 
certainly want a welfare bill, we want a nonpartisan bill, we want to 
move it, and then go into a very partisan posture of seeing that it 
does not move, of having 150 amendments that have to be treated.
  So I hope, Mr. President, that we are prepared to complete this task 
and complete it in a responsible time, to complete welfare reform for 
the first time in many years.
  We have to deal, of course, with the perverse incentives that are 
there, the incentives that encourage people to be locked into welfare, 
that encourage the idea of additional children while on welfare, that 
encourage the idea of one-parent families. These are things that no one 
agrees with, but these are in fact at least partially the results of 
things that we have been doing. In short, the system conflicts with the 
basic principles of this country in terms of equality and opportunity, 
and that is what we are seeking to do.
  There is a need for a new approach. I have dealt with this, as most 
of us 

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have, for a good long time, starting in the Wyoming Legislature when we 
had the same kinds of debates. But I am persuaded that this is one of 
those things--and there are many of them--in which the needs in Wyoming 
are quite different than the needs in New York or New Jersey or indeed 
in California, so that we do need to allow the States to be the 
laboratories in which we devise the best delivery plans we can.
  That is partly what this is all about. The States know the kinds of 
programs. We have developed programs in Wyoming, nonpartisan programs, 
by the way, that are designed to bring people back into the workplace, 
and to a large extent they are working.
  Workfare programs in Wyoming, known as Wyoming opportunity acts, were 
started by a Democratic Governor several years ago. They are very 
limited. They are only in two or three counties out of 23, and we have 
had difficulty getting waivers from the Federal Government to do those 
things. But they are a move in the right direction, and that is the 
kind of flexibility we do need.
  Obviously, the Federal Government will have a role, setting a 
framework for the States, requiring work, encouraging child care, 
stressing personal responsibility, cracking down on fraud, but we need 
to give the States the flexibility to devise the plan that works there.
  I urge that we move forward. Many of the things that are talked about 
as being partisan are really the great debates. There are differences 
of view. There is a substantial difference between the general 
philosophy of our friends on the other side of the aisle and this side 
of the aisle.
  We have to resolve those. That is what it is all about. That is why 
we take votes. And that is why we have a process. I guess I am urging 
more than anything, however, that we collectively commit ourselves to 
completing this task, to accomplishing the reform of welfare.
  The President in his initial entry into national public life said we 
are going to change welfare as we know it. Unfortunately, there has not 
been much activity from the White House--very little activity from the 
White House. This week's radio program however says let us keep 
politics out of the welfare bill. I am for that. Let us identify those 
issues that we need to talk about. There are differences. We can 
resolve them. We need to do that.
  Unfortunately, the White House says, let us keep politics out of it; 
and then turns loose the Press Secretary and many others in the 
administration to come in in various areas.
  So, Mr. President, I just believe strongly that the 1994 election and 
the continuing polling indicates a particular message; that is, 
Americans want action and they want something changed. They want 
reform. The American people do not want us to debate this in great 
detail and then leave it, walk away from it without some resolution. I 
think they indicated we are sincere and serious about breaking the 
cycle of welfare and giving the States flexibility.
  Those are issues that almost no one can argue with. We certainly need 
to be concerned about the distribution formula, about the maintenance 
of effort in the States, about training. We had to do some of these 
things in our Senate legislature. We had perverse incentives. We found 
it was more attractive for a single mother to stay on welfare than to 
go off to a minimum-wage job and lose health benefits and lose child 
care. We had to change that.
  So, Mr. President, I am very optimistic about our chances to do 
something that has not been done for a very long time. And I urge my 
fellow Members of the Senate to move forward, resolve these questions--
they can be resolved; that is what the system is for--and produce a 
result this week.
  Mr. President, I yield the floor.
  Mr. LEAHY addressed the Chair.
  The PRESIDING OFFICER. The Senator from Vermont.
  Mr. LEAHY. Mr. President, what is the parliamentary situation?
  The PRESIDING OFFICER. We have the Helms amendment currently pending.
  Mr. LEAHY. Is there a time limit on that?
  The PRESIDING OFFICER. There is no limit on the amendment per se. We 
have the Dodd amendment that does have a time limit of 4 hours, which 
would speak to commencing debate at around 1.
  Mr. LEAHY. I thank the Chair. And I thank Senator Moynihan and 
Senator Helms. I had wondered about a time limit. I did not know 
whether one had been entered into. I wanted to make sure.
  Mr. President, I would like to speak to a number of amendments to be 
offered: the one by the distinguished Senator from North Carolina, 
Senator Helms, No. 2523; but also ones to be offered by Senator 
Ashcroft, No. 2562; Senator Shelby 2527; Senator McCain, No. 2542.
  I realize we will be voting on all of these, but I will oppose them, 
and I know of others who may. I want to lay out my reasoning. I would 
start with the amendment of the distinguished Senator from North 
Carolina, No. 2523.
  I oppose it because I believe that instead of encouraging people to 
work, it actually punishes hard-working Americans and it also punishes 
pregnant women. I know that the distinguished Senator from Indiana, 
Senator Lugar, chairman of the Agriculture Committee, which, of course, 
is the committee of jurisdiction over the food stamp program, strongly 
opposes the amendment of Senator Helms. In this case both the chairman 
and I, as ranking Member, join in opposing it.
  In doing that, I want to lay out some basic facts. I want to remind 
everybody here that over 80 percent of food stamp benefits go to 
families with children. Over 90 percent go to families with children, 
the elderly or disabled.
  Keep in mind where this is going. The average food stamp benefit is 
around 76 cents per meal, per person. And if you read this amendment, 
and follow it to its logical conclusion, it says if you work hard for 
15 years, pay your taxes for 15 years, abide by the law for 15 years, 
but your factory closes, and you are taking more than a month to find 
another job--maybe the main employer in the whole area closes--you 
cannot get food stamp assistance after that time.
  And even though you put all this money into your taxes, though you 
paid for the program for 15 years, you are out. The amendment looks 
back 30 days. If a person has not worked in the last 30 days they are 
denied food stamps.
  Well, we all remember the earthquake in California, and hurricanes in 
Florida--these disasters caused major disruptions to employment. Or 
think of an area where you have one primary employer, say a large 
factory, that closes--you are going to take a lot more than 30 days to 
find a job. But if you have not worked in those last 30 days, even 
though you are out actively trying to find a job, you are denied food 
stamps.
  Incidentally, the amendment makes no exception for women who are 
pregnant with their first child. If their employer goes out of 
business, these pregnant women must find another job or work for free 
for the county or the State before they get any food assistance. I do 
not think it is fair for pregnant women, and it certainly is not going 
to help their unborn child.
  Now, my understanding is that Senators Lugar and Cochran agree with 
me that this amendment is not one to be supported, and it is not fair 
to hard-working Americans who play by the rules, the factory workers 
who are laid off and need some temporary food assistance. One of the 
reasons we have the food stamp program and why it is part of the safety 
net is because we cannot say, ``Too bad, go get a job. Then we will 
give you food stamps.'' It is a time when they are out looking for a 
job and cannot get a job that they need the food stamps. Usually if you 
are able to get a decent job, you are not eligible for food stamps 
anyway and you do not need them.
  I think hard-working Americans deserve a better break than that. They 
should, of course, try to find work. Everybody should. But they should 
not be punished because their factory moved or they went out of 
business or they had to lay off employees.
  There are an awful lot of people who have paid the cost of the food 
stamp program, and of every other program the Federal Government has 
been involved in from the Department of Defense to agriculture. Those 
people are going to be affected by this. 

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  Now, the amendment by Senator Ashcroft, I oppose because of its 
affect on the elderly and disabled. Under the Ashcroft amendment, once 
anyone has received 24 months of assistance in their lifetime, they can 
no longer receive food stamps unless they are working. Elderly and 
disabled Americans may work very hard for decades and then become cut 
off from benefits by that amendment.
  The amendment also denies States the right to make a decision, a 
decision that is offered in the bill by the distinguished majority 
leader, to choose whether to take a block grant or to participate in 
the food stamp program. Under Senator Ashcroft's amendment States no 
longer have that option. It is a mandatory block grant. Senator Dole's 
bill contains that option. And I agree with the handling of this by 
Senator Dole--States should not be forced to take block grants.
  The amendment also imposes on States, whether they want it or not, an 
unfair formula for providing funds.
  The formula penalizes those States that are growth States, especially 
those in the Sun Belt. It penalizes those States that face recessions. 
And I think every one of us knows that recessions often hit individual 
States harder than the country as a whole, and that each one of us have 
seen times when our State may be hit by a recession when other States 
are not.
  During the last recession, my home State of Vermont was one of the 
first States affected by the recession.
  Vermont suffered significant job losses throughout the recession. 
Just when Vermont would most need its food assistance, the amendment 
would say, ``Too bad. Have a hungry day.''
  I think States should at least have the ability to decide whether to 
take that block grant, and this Congress should not impose it.
  So I urge my colleagues to vote against the Ashcroft amendment, since 
it takes away the State's right to decide, it hurts the elderly and 
disabled, and it hurts some States at the expense of others.
  Now let me speak to the third amendment offered by the distinguished 
Senator from Alabama, Senator Shelby. I strongly oppose this amendment. 
I believe it would lead to a huge increase in childhood hunger among 
low-income Americans. More and more children live in poverty in this 
country. But Senator Shelby's amendment takes food assistance away from 
low-income families and provides it to higher-income families who may 
not need the assistance.
  The bill of the distinguished majority leader, the Senator from 
Kansas, already makes huge cuts in food stamp funding, but under the 
Shelby amendment to the Dole bill, a lot of the funds that are left 
would be diverted to higher income families. That means low-income 
children go hungry.
  Again, remember what I said earlier, 80 percent of food stamp 
benefits go to families with children; 90 percent go to families with 
children, the elderly or the disabled. But in this case, the money is 
actually diverted to higher-income families.
  Under the current law, just to explain this, food stamp benefits are 
carefully targeted to the most needy Americans. Almost all the benefits 
go to those who live in poverty. But under the Shelby amendment, much 
of the food stamp money can be diverted to benefit higher-income 
families.
  It also allows States to divert substantial portions of the block 
grant away from food assistance.
  That, in my mind, is enough reason to defeat the amendment, but there 
is something even worse. The funds are diverted in a manner that 
reduces work programs. The one thing I think we all agree on is to try 
to get people back to work. I know I want--and this has been my 
position for years--to get participants off food stamps and into the 
work force. But this amendment allows diversion of funds away from 
work-related activities that help create jobs and help get people back 
to work. It is counterproductive.
  The best way to get families back on their feet is to help them find 
a job. We should not reduce job-search efforts or job training.
  Lastly, Mr. President, I oppose the amendment of the distinguished 
Senator from Arizona, Senator McCain. The amendment would have some 
unusual, and I have to believe, unintended effects. Let us go back 
first to the bill of the majority leader. Under Senator Dole's bill, 
food stamp assistance could be used to provide subsidies to private 
employers to hire food stamp recipients. It is called wage 
supplementation. It has to be done carefully, but if it is done 
carefully, it can be a very good idea. Under Senator Dole's bill, 
corporations can use this Federal money to subsidize wages for up to 6 
months. Then the employer has to decide, do you hire the person or let 
them go?
  Senator McCain's amendment allows for a permanent subsidy for jobs 
for private employers. It takes money away from others who need help 
getting off food stamps and into the work force. We have already cut 
back the amount of money substantially in food stamps. So I oppose that 
amendment also.
  Mr. President, none of these issues are easy when it comes to food 
stamps. There are improvements that can be made to the program. We have 
made some substantial ones over the years. One improvement that I 
strongly support--in fact, I have written an amendment to do this--is 
to get us as quickly as possible on to an EBT Program, an electronic 
benefits transfer program. It would save tens of millions of dollars in 
just the cost of printing and handling food stamps. We tend to forget 
that there are millions and millions and millions of dollars that are 
spent just in printing these coupons, in collecting them and storing 
them, and even millions in carefully destroying them.
  Electronic benefits transfer would use a credit-card type of system, 
with the computer ability to say, if you have 46 dollars' worth of 
benefits, you know exactly where the $46 was spent, whether it was 
spent at a legitimate grocery store or fraudulently spent elsewhere.
  Electronic benefits transfer would help us catch those who defraud 
the program. There are people in all parts of this country who are 
using this program, which was designed to help hungry children, the 
poor, the elderly, and the disabled, to rip off the taxpayers. We have 
had instances of stores, tiny little stores, that are doing hundreds of 
thousands of dollars of business a month on food stamps. It is obvious 
they are not selling that. They are a front to cash in these food 
stamps.
  Under my plan, with electronic benefits transfer, we could find those 
stores more easily. We could identify them much more quickly. We could 
give the U.S. attorney far more evidence for prosecution. And, frankly, 
Mr. President, those who are defrauding the program in this way should 
go to jail. They should be taken off the program, the store should be 
taken off the program, the person using the food stamps should be 
barred from the program, and the person should be prosecuted and sent 
to jail.
  I hear a lot of talk about what might prove to be a deterrent and 
what might not. I found during my years as a prosecutor nothing proved 
a better deterrent than the knowledge if you committed a crime you are 
going to do the time. I found the best deterrent was not to say, ``Oh, 
we have all these laws on the books, you potentially could get nailed 
for this.'' If people know they are not going to get caught, that does 
not make any difference.
  I will give one example. I used to give to police officers at the 
police academy, when I was a prosecutor, a lecture. I said: You have 
two warehouses side by side, both filled with television sets. One is 
well lit and has an alarm system. It is going to notify the police 
immediately if there is a breakin. The other is down the street around 
the corner off the view of the main thoroughfare, has no lights around 
it, has an old lock and has no alarm system. Now, the penalty for 
breaking into those warehouses and stealing the television sets is 
exactly the same, whether you break into the one with the alarm system 
and well lit, or the one around the corner where nobody is going to see 
you and you get away with it. The law is exactly the same. The penalty 
is exactly the same. The answer, of course, is simple. You are going to 
break into the one where you think you will not get caught. The penalty 
was not the deterrent. The deterrent was that you might get caught, you 
might get prosecuted, you might 

[[Page S 13156]]
go to jail. The same thing should be done with food stamp fraud.
  If you are running a small store, some of which are about the size of 
our offices, and doing more food stamp business a month than a 
supermarket, and if you know you are going to go to jail, not just that 
you will be taken off the program and not allowed to sell, but you are 
going to go to jail if you do it, you are going to think twice about 
defrauding the program, especially if the Federal authorities have a 
new tool that gives the prosecution an ironclad ability to nail you. We 
must provide that tool.
  We have to do that because there is one thing we have to remember: 
Those who commit fraud in the food stamp program are taking money from 
every American taxpayer, people who work very hard. Sometimes a husband 
and wife are holding down three jobs or four jobs between them just to 
pay the bills. They should not have to pay for those who are defrauding 
the system. For those of us who feel we should do something to help 
hungry children, it is also taking money away from them.
  There are studies that show if we go to this, we could save $400 
million over 10 years. Frankly, I would like to see us save even more, 
and I suspect we will.
  It will not be just the paperwork where we will save money or the 
printing and collecting and distribution of paper coupons. We will save 
money by reducing fraud. I think the benefits will be enormous.
  My amendment allows States the option to convert statewide to EBT. I 
sent a ``Dear Colleague'' letter Friday, before we went out, to all of 
the offices. I know each one of us eagerly awaits ``Dear Colleague'' 
letters so that we can read them before we do everything else. If there 
are any other Senators who just came back and have not had a chance, as 
I eagerly read all of yours, hopefully, they will read mine. This is a 
way to save money. I see the Senator from Mississippi.
  I yield the floor.
  Mr. COCHRAN. Mr. President, I regret that I must oppose the amendment 
of my good friend, the distinguished Senator from North Carolina. I 
agree with him that our public assistance programs ought to encourage 
work and not dependency. But it seems to me that this amendment affects 
the wrong people.
  For example, individuals who have a long job history, but who are 
laid off when a factory closes, would be denied benefits under the 
amendment. This result concerns me. Individuals who have never been on 
the Food Stamp Program and who have always worked seem to me to be 
those whom this program ought to help--people who face a temporary 
setback.
  In the case I have described, individuals who have been laid off when 
a factory closes may face high local unemployment conditions and may 
find it difficult to get a job.
  A major goal of the Agriculture Committee was to preserve a safety 
net for people who have played by the rules and need a helping hand 
through hard times, while ending the free ride for those who have taken 
advantage of the system.
  As a matter of fact, there are numerous provisions in the bill to 
promote work and to deny benefits to those who will not work even 
though they are able-bodied and could be working. For example, States 
will--for the first time--be able to permanently disqualify repeat 
violators of work rules under this bill.
  Mr. President, we have worked to analyze a number of suggestions for 
reducing the costs of this program, for tightening the rules, and 
making true reform come to pass. We think this is a balanced and 
thoughtful approach that we are recommending to the Senate for its 
action. I hope the Senate will support the committee's effort.
  Mr. LUGAR. Mr. President, our public assistance programs should 
encourage work, not dependency. The Senator from North Carolina and I 
agree on this. However, this amendment affects the wrong people.
  It would deny food stamps to able-bodied 18- to 55-year-old persons 
without dependents unless they work at least part time. Many people who 
fit that description are not long-term food stamp recipients.
  Individuals who have long job histories but who are laid off when a 
factory closes would be denied benefits under this amendment. This 
result should concern all of us. Individuals who have never been on the 
Food Stamp Program and who have always worked are exactly the kinds of 
people that the Food Stamp Program should help--people who face a 
temporary setback.
  Individuals who have been laid off when a factory closes may face 
high local unemployment and may find it difficult to get a job. The 
case of the people I have described is not unusual. Over half of all 
food stamp recipients will only stay on for a matter of months, and 
they will most likely leave because their earnings increase.
  A major goal of the Agriculture Committee was to preserve a safety 
net for people who have played by the rules and need a helping hand 
through hard times, while ending the free ride for those categories of 
recipients who have most taken advantage of the system. Under the 
leadership bill, able bodied, nonelderly adults without dependent 
children will have their benefits time limited if they are not in a job 
or employment program at least halftime. The time limit in the 
leadership bill prohibits the receipt of food stamps for those who were 
not working for 6 months out of a year. According to the Congressional 
Budget Office, approximately 700,000 people would be subject to this 
requirement in an average month. USDA's estimate is higher. However, 
under the leadership bill, the Secretary of Agriculture may waive this 
provision in areas with over 8-percent unemployment or if there are 
insufficient local jobs.
  The amendment by the Senator from North Carolina does not contain any 
waiver language. In addition, AFDC block grant recipients who violate 
an AFDC work program requirement will be sanctioned under the Food 
Stamp Program. For an AFDC recipient who has been disqualified from 
food stamps due to an AFDC work violation, the food stamp 
disqualification continues until compliance even if the recipient loses 
AFDC eligibility.
  Numerous other provisions in the bill promote work. For example, 
States will--for the first time--be able to permanently disqualify 
repeat violators of work rules.
  Mr. President, I urge Senators to vote against this amendment.
  Mr. HELMS. Mr. President, I will not consume very much more time. 
Thad Cochran knows of my respect for him. There is no Senator in this 
body for whom I have greater respect. But I have to say to him, as I 
say to the distinguished Senator from Vermont, I do not know which 
amendment they are talking about, but they are certainly not talking 
about the pending amendment by Jesse Helms.
  For example, both Senators have said and have voiced a lamentation 
that people who are temporarily out of work would be cut off of food 
stamps. Clearly, on page 2 of the amendment, it says, ``For the 
purposes of paragraph (1), an individual may perform community service 
or work for a State or political subdivision of a State through a 
program established by a State or political subdivision.''
  Then, Mr. President, the distinguished Senator from Vermont mentioned 
people needing food stamps in earthquake situations--workers are needed 
for community service then more than ever. They should not be desirous 
of just sitting around while somebody cleans up the mess.
  I, then, heard that we ought not to deny pregnant women food stamps. 
Mr. President, there are pregnant women all over this country working 
today. As long as they are able to work, they do. Some of them--who 
have worked in my office and at my television station before I lost my 
mind and ran for the Senate--worked until a few days before they went 
to the hospital. I am not saying that they ought to do that. But, to 
say that a pregnant woman should automatically get food stamps does not 
make sense. It is not fair to all the pregnant women who get up and go 
to work every day by the millions in this country.
  Excluded from this amendment--let me repeat--excluded are children 
under 18, parents with dependents under 18, mentally or physically 
disabled, members of a household caring for incapacitated people, and 
people over 55 years of age. 

[[Page S 13157]]

  Although many families with children receive some food stamp 
assistance, the overwhelming majority of them also receive aid from 
another Federal program, another costly Federal program--the AFDC. 
Welfare benefits are already given to these families.
  Mr. President, we are supposed to be dedicated to working toward a 
balanced budget. The Heritage Foundation has estimated that 9 out of 
every 10 recipients will automatically drop off the roll if you require 
them to work under the pending amendment.
  Also, according to the Congressional Budget Office, the pending Helms 
amendment will save $5.6 billion of the taxpayers' money over the next 
7 years.
  As for the role of the States, the Republican welfare bill removes a 
mountain of redtape and administrative costs are cut tenfold. In 
addition, the U.S. Department of Agriculture, in a report from 1986, 
states that enforcing strong work requirements will save $3 on welfare 
costs for every dollar the State invests in a work program.
  Currently, there are 15 million State and local employees within 
23,000 county and municipal governments. If absolutely nobody were to 
drop off the welfare rolls because of the Helms amendment--and this is 
next to impossible because of the Heritage Foundation estimate which I 
just stated--this amendment would increase the State and local 
employment rolls by only 3 percent, and then only for workers working 
one-fourth of the time.
  Finally, it is easier for States to keep track of recipients when 
they sign up for work and benefits at the same time and place. Trying 
to keep track of recipients in private sector jobs while making sure 
that they are in fact working could be an administrative nightmare.
  Therefore, I must respectfully decline to accept the criticism of the 
Helms amendment by my friend from Vermont and my friend from 
Mississippi.
  Finally, Mr. President, I ask unanimous consent that the article of 
February 1994, from the Readers Digest to which I referred earlier, 
entitled ``The Food Stamp Racket,'' be printed in the Record.
  There being no objection, the article was ordered to be printed in 
the Record, as follows:

                         The Food-Stamp Racket

                         (By Daniel R. Levine)

       Spyros Stanley was one of the wealthiest people in 
     Charleston, W.Va. He owned a bar and practically every 
     parking lot in the city. But, according to investigators, he 
     had also purchased $23,000 worth of food stamps--for a 
     fraction of their value--from welfare recipients and crack-
     cocaine dealers. Stanley was buying the stamps to purchase 
     food for himself and his bar.
       In Brooklyn, N.Y., J & D Meats, Inc., looked like a typical 
     big-city wholesaler, bustling with delivery trucks, vans and 
     forklifts. Its finances, however, were anything but typical. 
     J & D's owners were illegally trading meat for food stamps. 
     The wholesaler was converting the stamps to cash by 
     depositing them into the bank account of a retail meat market 
     it had once owned, but which was then out of business. In 
     nine years, J & D Meats redeemed $82-million worth of food 
     stamps at its bank.
       In Hampton, Va., food stamps became Lazaro Sotolongo's road 
     to riches. Penniless when he arrived from Cuba in 1980, 
     Sotolongo set up a drug ring that sold crack for food stamps 
     at 50 cents on the dollar. He converted the food stamps to 
     cash by selling them to unscrupulous authorized retailers. 
     Over three years he took in more than $8 million.
       Says Constant Chevalier, Midwest regional inspector general 
     of the U.S. Department of Agriculture (USDA):
       ``We've seen just about every type of fraud and abuse of 
     the food-stamp program you could think of.''
       In 1968, 2.2 million Americans received food stamps at a 
     cost of $173 million. Today, 27 million Americans are 
     enrolled in a food-stamp program that costs taxpayers $24 
     billion a year.
       Food stamps are available to anyone meeting certain 
     eligibility requirements, including individuals whose monthly 
     income is 30 percent above the poverty line. The eligibility 
     requirements are so generous that a family of four earning 
     $18,660 a year (and an individual earning $9,072) can qualify 
     for limited benefits. Maximum benefits for a family of four 
     with no income are $375 a month, while a family of eight can 
     receive up to $676 a month. The value of the stamps is 
     inflated to 103 percent of the cost of the government's basic 
     nutrition plan. This three-percent boost costs $850 million 
     each year.
       Even when required by law, getting Congress to cut food-
     stamp benefits is nearly impossible. Benefits are indexed for 
     food-price inflation once a year. But when food prices 
     dropped 1.3 percent between 1991 and 1992, Congress blocked 
     the law's automatic reduction in food-stamp
      benefits, throwing a potential savings of $330 million out 
     the window.
       At the same time President Clinton and Congress talk of 
     reducing the federal deficit, food-stamp spending will 
     increase by $3 billion over the next five years. Now is a 
     good time to take a look at what years of skyrocketing 
     spending have already produced.
       Second Currency. Once a month, a large percentage of food-
     stamp recipients receive ``authorization to participate'' 
     (ATP) cards in the mail that show their monthly allotment 
     based on household size and income. They take these to a post 
     office, bank or check-cashing store and exchange them for 
     food stamps, which are used to buy food in authorized retail 
     stores.
       But it's when recipients trade the stamps for cash or drugs 
     that the system breaks down. A typical fraud works this way: 
     A drug dealer approaches a food-stamp recipient outside an 
     issuance center and trades $50 worth of crack for $100 in 
     food stamps. The dealer then sells the stamps to a dishonest 
     authorized retailer for $75 in cash. The store then redeems 
     the stamps at a bank for their full value. As a result food 
     stamps have become a second currency used to pay for drugs, 
     prostitution, weapons, cars--even a house. Says Cathy E. 
     Krinick, a Virginia deputy commonwealth attorney, ``Food 
     stamps are more profitable than money.''
       In Camden, N.J., a USDA agent making an undercover 
     investigation into food-stamp fraud received a startling 
     offer in January 1991. Jack Ayboub, owner of a grocery store 
     authorized to accept food stamps, had already received $6700 
     in coupons from the agent for $3300 in cash. Now Ayoub 
     offered to trade a three-bedroom house for $30,000 in food 
     stamps and another house every two months using the same 
     scheme. After completing the first part of the deal, Ayoub 
     was arrested by federal agents.
       An art aficoinado in Albuquerque, N.M., used food stamps to 
     fund his collection. He also owned a general store authorized 
     by the USDA to accept food stamps. But instead of milk or 
     eggs, he gave customers cash at 30 to 50 cents on the dollar 
     for their stamps. Then he redeemed them at the bank for their 
     face value. With his profits, he bought $35,000 worth of 
     stolen art.
       Food stamps are also easily counterfeited. Dennie Lyons of 
     New Orleans printed more than $127,000 worth of bogus stamps 
     and tried to sell them around the country. When caught, he 
     was sentenced to four years in prison, and his wife, 
     Johnette, got five years' probation for aiding him. But it 
     wasn't long before her phony food stamps were replaced by 
     real ones--soon after her indictment, she was admitted to the 
     food-stamp program.
       Retailer Rip-Offs. Only stores authorized by the USDA's 
     Food and Nutrition Service (FNS) can accept and redeem food 
     stamps. But the procedures for receiving authorization are 
     woefully inadequate. A retailer can receive certification 
     merely by filing out an application and stating that staple 
     foods account for over
      50 percent of his sales. At the same time, however, there 
     are some 175 FNS people assigned to monitor and 
     investigate the activities of 213,000 authorized 
     retailers, of which 3200 are estimated to be illegally 
     exchanging stamps for crash.
       The FNS is so outmatched that even official sanctions don't 
     work. A USDA audit in 1992 found that there were ``no 
     effective procedures'' to prevent disqualified retailers from 
     continuing to accept and cash in food stamps. ``The 
     disqualification process is sorely lacking,'' says one 
     regional inspector general.
       Adds Craig L. Beauchamp, the USDA's assistant inspector 
     general for investigations, ``We are seeing more million-
     dollar-and-up frauds committed by retailers than we have ever 
     seen before.''
       In Toledo, Ohio, grocer Michael Hebeka was convicted of 
     fraud and permanently banned from the food-stamp program in 
     1984. Using falsified papers, he tricked officials into 
     believing he had sold his Ashland Market to an employee. Soon 
     the government reauthorized the store to accept food stamps, 
     and Hebeka was back in business. When he was caught a second 
     time in May 1991, he had already redeemed another $7.2 
     million in stamps.
       In Los Angeles, two small grocery stores bought food stamps 
     for half their face value in cash and redeemed them for their 
     full value. Between 1989 and 1992, they cashed in stamps 
     worth more than $20 million. For 16 months, one of the 
     markets averaged $19,000 a day in food-stamp redemptions--
     even though it had only $10,000 in inventory.
       In East St. Louis, Ill., Kenneth Coates, owner of Coates 
     Market, paid as little as 65 cents on the dollar for foods 
     stamps, which he cashed in for full value. Over a year and a 
     half, he redeemed $1.3 million, enabling him to pay for his 
     children's private schooling and have enough left over for 
     $150,000 worth of stocks, at least five rental houses and a 
     Mercedes-Benz. This wasn't the first time Coates Market had 
     defrauded the food-stamp program. Ten years earlier, it had 
     been disqualified for fraud--only to be readmitted after six 
     months.
       Bureautatic Nightmare. After Medicaid, the food-stamp 
     program is the most expensive in the federal welfare system, 
     and one of the most poorly run. Even when the number of 
     recipients has dropped, operating cost have gone up. In 1990 
     there were 600,000 fewer people on the rolls compared with 
     1981. But administrative costs soared from $1.1 billion 

[[Page S 13158]]
     to $2.5 billion. The bureaucracy has grown so unwieldy that 
     mismanagement and inefficiency permeate the program.
       Most welfare programs are jointly funded by state and 
     federal governments. But food stamps are entirely
      funded and regulated by Washington, while state and local 
     agencies are responsible for administering and 
     distributing the coupons. Essentially, states run the day-
     to-day operation of a program in which they have little 
     incentive to manage costs efficiently.
       Mistakes are rife. In 1992, $1.7-billion worth of food 
     stamps were overpaid or sent to ineligible people. The 
     government has fined states that have high error totals, but 
     the penalties are rarely taken seriously. During the past 11 
     years, $869 million in fines have been levied, and only $5 
     million collected.
       With over $20 billion in federal food stamps circulating 
     every year and little reason for the states to manage them 
     effectively, it's no surprise that the program is easy 
     pickings for crooks--even those ``inside'' the system.
       In Detroit, the department of social services sent $26,000 
     in food stamps to Mae Duncan. But she didn't exist. The name 
     was one of 26 invented by Patricia Allen, a 39-year-old 
     social worker. Over a nine-year period, she collected more 
     than $221,000 worth of food stamps. In Baton Rouge, La., two 
     sisters who were social-service caseworkers issued $50,000 in 
     food stamps to nonexistent recipients. And in St. Paul, 
     Minn., nobody noticed when a state clerk pocketed $180,000 
     worth of returned food stamps in nine months.
       Of the $24 billion taxpayers fork over for food stamps, 
     nearly $2 billion is lost to fraud, waste and abuse.
      Says welfare and social-policy expert Charles Murray of the 
     American Enterprise Institute, a Washington, D.C., think 
     tank, ``This is a program that for three decades has grown 
     year after year, without any evidence that it should 
     grow.''
       Clearly, radical reform is needed. Here's what can be done:
       1. Tighten eligibility. Food stamps should be focused on 
     helping the neediest Americans--those living at or below the 
     poverty line. Lowering the income eligibility ceiling to that 
     level (except for families with elderly and disabled members) 
     would guarantee that taxpayer dollars are going to those who 
     truly need assistance.
       2. Cut excesses. Reducing benefits so that they reflect 100 
     percent, rather than 103 percent, of the government's basic 
     food plan would save $850 million annually. And states with 
     excessive error rates in administering food stamps should be 
     forced to reimburse the federal government for the lost 
     money. If incentives are put into place, taxpayers could be 
     saved hundreds of millions of dollars each year, and 
     recipients would be served more efficiently.
       3. Crack down on criminals. Last August, Congress passed 
     legislation introduced by Sen. Mitch McConnell (R., Ky.) 
     toughening penalties against recipients and retailers 
     convicted of food-stamp trafficking. This is a good start, 
     but much more can be done. Recipients should be permanently 
     barred from the program the first time they are caught 
     trading food stamps for drugs, just as they are when they 
     trade for weapons, ammunition or explosives. Now they are 
     given two chances.
       As for retailers, information they provide the FNS, such as 
     sales-volume and coupon-redemption data, should be shared 
     with federal law-enforcement officials. Currently, only other 
     welfare agencies are allowed to see these numbers. Also, 
     tougher standards should be imposed before retailers can be 
     certified to redeem food stamps and after a store has been 
     disqualified. Regular store visits and interviews with the 
     owners should be the rule, not the exception. Some of the 
     savings from the program should be used to hire much-needed 
     additional FNS investigators.
       Ultimately, however, it is up to Congress to control the 
     rapid growth of food stamps. But over the program's 30-year 
     history, Congress has rarely taken the bold steps necessary 
     to rein in costs. Eliminating illicit trafficking and 
     ensuring that food stamps reach only the neediest Americans 
     in a cost-efficient manner should be a top national priority.

  Mr. HELMS. I yield the floor. I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. HELMS. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. HELMS. Mr. President, I ask for the yeas and nays on my 
amendment.
  The PRESIDING OFFICER. Is there a sufficient second? There is a 
sufficient second.
  The yeas and nays were ordered.
  Mr. HELMS. I thank the Chair. I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. MOYNIHAN. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Jeffords). Without objection, it is so 
ordered.
  Mr. MOYNIHAN. Mr. President, I am taking a moment to expand on the 
remarks I made toward the end of our debate on Friday concerning the 
amendment I offered, the Family Support Act of 1995, a measure which 
simply brought up to a new set of standards the Family Support Act of 
1988.
  We began in 1988 saying all States would have to have 20 percent of 
their eligible adult welfare recipients in work, job training, or job 
search by 1995.
  It was understood that as we got the hang of this, as States learned 
to handle what was a new idea, welfare should be an interim measure, as 
people moved to independence and became self-supporting. We agreed to 
change a program that began as a widows' pension and is no longer such.
  It was contemplated we would work our way up to higher levels of 
participation, and indeed in the Family Support Act of 1995 we move to 
50 percent by the year 2001, add money to the JOBS program, make 
improvements to the child support system, and build on a program which 
we have begun to feel is working.
  Dramatic improvement does not happen instantly when one passes 
legislation, not in an area like this, not in a situation where we have 
so many communities that have been reduced to an extraordinary 
incidence of dependence.
  I mentioned on Friday that, in the city of Chicago, 46 percent of 
children were on welfare at some time in the course of the year 1993; 
in Detroit, 67 percent; in New York, 39; in Philadelphia, 57; San 
Diego, 30. These are massive problems.
  It is not surprising that the first real reactions to the Family 
Support Act, the ones that were most innovative and effective, came in 
areas not necessarily rural, but not with the masses of poor who 
inhabit the great cities. Iowa is one of these areas with great 
significance.
  On the floor a month ago, Monday, August 7, my good friend and 
comanager here, the Senator from Iowa, [Mr. Grassley], said something 
very important. He said, ``. . . my State of Iowa began the 
implementation of its program in October 1993. In the last 2 years, the 
number of AFDC employed recipients has increased from 18 percent of all 
welfare recipients to 34 percent--I believe now the highest of any of 
the States--as a percentage of welfare recipients who are working.'' If 
I may interpolate, I think that is correct. We had set 20 percent as 
the initial goal. Iowa went right by it to 38 percent, more than 
halfway to the goal of fifty percent we had contemplated in the Family 
Support Act of 1995 presented to the Finance Committee. That bill 
failed 12 to 8 in the Finance Committee and received 41 votes here on 
the Senate floor; 54 to 41, if I recall.
  But that bill of 1988, which I say, once again, went out the Senate 
door 96 to 1, began to take hold. The program in Iowa that Senator 
Grassley was talking about is the program created under the Family 
Support Act. Mr. President, the Federal government pays at more than 60 
percent of the program costs in the JOBS program. The Family Support 
Act of 1995, which we voted on Friday, would take it from 60 percent to 
a minimum of 70 percent for all expenditures, including administrative 
costs. States have not in the past drawn down the full amount available 
to them to implement the JOBS program--by increasing the federal share, 
my bill would make possible the full implementation of the JOBS 
program.
  I might just add as a preface to some of the other things I am going 
to say, Iowa passed a reform bill 2 years ago. Indeed, on that 
occasion, Mr. President, I put into the Record the Iowa Family 
Investment Program, for which basic approval under the JOBS program was 
requested in April 1993 and approved in August 1993. They received a 
waiver to raise the asset limit for applicants to $5,000 for 
recipients, exempt equity value of an automobile up to $3,000, adjust 
annual CPI by income deposited in an IDA account not to be counted as 
income, and so forth.
  In Iowa, if you are out in the countryside and you do not have an 
automobile, you are not going to find a job. One of the debilitating 
things about welfare is that it has required its recipients not only to 
be paupers but to remain paupers. About 5 years ago a 

[[Page S 13159]]
mother was discovered in a Middle Western State who had been saving, 
had saved some $12,000 to put her daughter through college, and was, in 
consequence, a criminal.
  It just emiserates the population involved, and not a small number of 
persons. To say again, in some cities it is the majority of all the 
children living in the city--67 percent of the children in Detroit, 57 
percent of the children in Philadelphia.
  On Friday, Senator Harkin gave a very careful and thoughtful 
description of the program in Iowa, following on some of the remarks by 
his colleague. He said he wanted to bring to his colleagues' attention 
what has happened in Iowa ``since we changed our welfare system.'' He 
said:

       We enacted a welfare reform program in October 1993, and 
     almost 2 years later you can see what happened. Our total 
     spending on welfare has dropped, and dropped dramatically 
     since we had our welfare reform program.

  Mr. President, what Iowa has been doing is exactly what the Family 
Support Act hoped States would do. And Senator Harkin very properly 
said the program was enacted in October--that was following the 
approval from the Department of Health and Human Services in August. In 
Iowa, sixty-three percent of the JOBS funds are federal moneys.
  Iowa has every reason to be proud of its program. But is Iowa certain 
that the program will continue when the funds are discontinued? The 
JOBS program is abolished by both the Democratic bill, that we voted on 
earlier last week, and the Republican bill. We are taking something 
that has worked and decided, no, it has not worked fast enough. Or has 
not worked far enough? The proposal to undo this is the nearest thing 
to vandalism I can recall in 19 years in the Senate. We will regret it 
and we may return to it. Or we may, as in the case of the 
deinstitutionalization, forget what we did and wonder what this new, 
ominous, inexplicable problem of child poverty is?
  I say again, a 5-year limit in a situation where 76 percent of the 
recipients are on AFDC for more than 5 years, will lead to a situation 
out of control, if it is not already. We will not begin to see the 
effects for about 5 years. Five years is a very long time in our 
memory. I have said over and over again, how quickly we forgot that we 
emptied out our mental institutions and did not build the community 
health centers that President Kennedy contemplated.
  We will forget, perhaps, what we have done, what we did on the Senate 
floor in this September. And we are doing it in the face of the first 
really good evidence that the JOBS program is working. The Manpower 
Demonstration Research Corporation, last July, put out a report on the 
programs it had been following around the country, because we built 
evaluation into our studies. And the overwhelming evidence was that the 
Family Support Act was working. The most promising results involved a 
strategy that was tested in Atlanta, Riverside, and Grand Rapids, that 
emphasized rapid job entry. We learned something here.
  Training? No, no. Get into a job situation, and you will learn the 
job. You will learn on the job if you can learn to get to the job.
  The number of AFDC recipients dropped by 11 percentage points in 
those three. Employment rose by 8.1 percentage points. Expenditures 
dropped 22 percentage points, which was exactly what Senator Harkin was 
describing. And the MDRC, which is a very careful organization, 
observed that the 22 percentage point drop in expenditures exceeds the 
savings achieved by experimentally evaluated programs in the last 15 
years. We are finally beginning to understand this problem.
  What we are dealing with here is the aftermath of an enormous 
increase in out-of-wedlock births. President George Bush was the first 
President to speak of this, and did so in a commencement note of 1992. 
President Clinton raised the issue in his State of the Union Address in 
1994. Never before had Presidents touched on this subject. Never before 
have we debated it. We are doing so now, and as we must.
  In the current issue of The Economist, Mr. President, a journal not 
necessarily read widely in the United States but certainly respected, 
this week's cover story, ``The Disappearing Family,'' talks about the 
American experience, the awful experience. It includes a chart of the 
experience of this country for which I find myself cited as the source. 
It is the first time The Economist looked to me for data. Indeed we 
find that in every country in northern Europe there has been 
extraordinary increase in the ratio of births to unmarried mothers in 
the last 30 years. A few Western industrialized countries have not seen 
an extraordinary increase. Italy's rise has not been as shocking as 
ours, and Switzerland has had a fairly modest increase. Japan's ratio 
was 1 percent in 1970, and is 1 percent today.
  This is going to be a major subject of cross-cultural studies in the 
next century as we find ourselves asking what are the forces that make 
for the dissolution of the marriage unit in Western society that do not 
similarly affect Eastern societies?
  Just last Friday, as I believe, the Christian Coalition had a large 
conference here in Washington, and a number of Senators spoke. Mr. 
Ralph Reed is their director. They heard a stirring comment from Mr. 
Alan Keyes who spoke to them. This was the Christian Coalition's annual 
conference here in Washington. He said:

       And we know the breakdown of the marriage-based, two-parent 
     family is at the root of every problem, crime problem, 
     poverty problem, deteriorating education, even the problem of 
     entitlements, where we have backed away from the family 
     system that ought to take care of the children and the 
     elderly and try to turn that task over to a Government that 
     cannot get it right.

  You know, Mr. Keyes I believe is a candidate for the Republican 
Presidential nomination. He said:

       We are doing it wrong when we back away from the family 
     system, and we have allowed the destruction of the family 
     system because we are defining our freedom in a corrupt and a 
     centrist way that destroys the loyalty and law and sense of 
     obligation that is needed for family life. Now we know it is 
     true, and I have a question for you then. If you know it is 
     true, and you think it is right, then why on Earth would you 
     sit back this time, when it matters more than anything else 
     in this Nation that we put our No. 1 priority and put your 
     seal of approval behind people who put it on the back burner 
     and give it the backseat and only talk about it when they 
     force them to? What is the matter with you?

  He went on to say:

       The marriage-based family, the No. 1 priority of this 
     Nation's life, nothing is more important, not the budget, not 
     the deficit, not taxes, not the power of the Federal 
     Government over the State government. We will rebuild our 
     families or we will perish, and we know it.

  Well, that is language that is perhaps more in the mode of bearing 
witness than of giving testimony. But it is a purposely legitimate 
setting and a purposely legitimate speaker saying something which I 
happen to think is entirely the case, and I think it is so important 
that we are talking about it. We used not to talk about it. We could 
not do it. We did not do it 30 years ago, or 20 years ago. We started 
to talk about it 10 years ago, and now we have reached it. We do not 
know what to do with very little evidence, no data. Only in the last 
Congress did I get a welfare indicators report established by statute, 
and in 2 years' time we get our first study. The idea is to match the 
economic report that was created by the Employment Act of 1946. We are 
getting there. Long before you get good answers, you have to ask good 
questions. I think we have begun to do that. I take heart from it.
  I wish that my friend from Iowa would acknowledge that their success 
is success under a statute we passed in 1988, and it is well deserved. 
And we might do worse than to build on that success rather than 
dismantle the program. But there you are. That is a decision the Senate 
will make in good time.
  I see my friend from North Dakota is on the floor. I understand he 
wishes to speak. In any event, Mr. President, I yield the floor.
  Mr. GRASSLEY addressed the Chair.
  The PRESIDING OFFICER. The Senator from Iowa is recognized.
  Mr. GRASSLEY. Mr. President, just for a couple of minutes to respond 
to what the Senator from New York had to say, I would very readily 
admit that a certain amount of flexibility under the 1988 act gave 
States the opportunity to change their plan and come to Washington and 
request waivers. It gave us an opportunity for the political 
laboratories of our system of Government, our State legislatures, to 
try 

[[Page S 13160]]
something new and to experiment. Most of those States participating 
have been very successful. I think my State of Iowa has been the most 
successful.
  But I think that what we have seen is two phenomenon which dictates 
to me that we ought to move more aggressively toward flexibility to the 
States. The No. 1 thing is a dramatic increase in the number of people 
on welfare, 3.1 million now since the 1988 act went into effect. There 
was some leeway to States in that act that gave them an opportunity to 
make it possible for more people to get on welfare. I do not know 
whether that was intended or not, but it was an end result. So we have 
3.1 million more people on welfare. The second phenomenon is that it is 
costing more money, and I think at a time when we thought we were 
passing an act that was going to save some money, that tells me, as I 
look back to my involvement with the 1988 Act, that I failed in making 
that judgment.
  In the meantime, we have seen several States move dramatically 
forward, move people from welfare to work, save their taxpayers' money, 
and save the Federal taxpayers some money as well. And in that 7-year 
period of time, it has given me, and others of my colleagues, 
encouragement to have more faith in the States to do things even more 
dramatic and dynamic than they have done thus far under waivers.
  I would suggest that if there is one reason that I wish to be able to 
move forward based upon the success of the Iowa legislature and their 
plan, it is the fact that, in my judgment, that Iowa would have gone 
much, much further in reforming welfare if they did not have to tailor 
a program that would meet the requirements of some obscure bureaucrat 
in the Department of HHS in order to get approval. So that is why 
Republicans have a bill that gives so much more authority to the States 
than ever before.
  I will admit, in conclusion, that the stage was set for it by the 
1988 Family Support Act; but it set a stage that tells us now that we 
can do even more than what we could do under the 1988 act and we ought 
to do it.
  I yield the floor.


                           Amendment No. 2529

  Mr. CONRAD. Mr. President, I would like to call up my amendment No. 
2529.
  The PRESIDING OFFICER. If there is no objection, that will become the 
pending question.
  The Chair hears no objection.
  Mr. CONRAD. I thank the Chair. I thank my colleague from New York for 
the opportunity to discuss my amendment.
  Mr. President, the amendment that I offer I call a State flexibility 
amendment because it allows States to choose between the Dole AFDC and 
job training block grant and titles I and II of my own welfare reform 
plan, the WAGE Act, the Work and Gainful Employment Act, that I offered 
in May of this year. Titles I and II of the WAGE Act are based on four 
principles: First, work; second, protecting children; third, providing 
States flexibility; and fourth, preserving the family structure.
  I believe those are the fundamental principles of any serious welfare 
reform effort. My plan provides unprecedented flexibility to States 
while providing a safety net for children and an automatic economic 
stabilizer for States.
  Mr. President, I agree strongly with my colleagues that States should 
be given great flexibility to design and deliver welfare programs. My 
amendment expands this principle by giving States a choice between 
block grants, the pure block grant approach as contained in the Dole 
proposal, and my totally new approach to welfare that has a combination 
of a block grant and a temporary assistance program that includes an 
automatic economic stabilizer so that States are not put in a 
circumstance in which they may not be able to meet the needs of 
children in their States due to economic conditions or a natural 
calamity.
  Under my amendment, States are given a chance to choose the block 
grant approach in the Dole bill or the WAGE approach contained in my 
bill for 4 years, after which the State could choose to continue its 
program or switch to the other approach. In other words, the amendment 
that I am offering today expands the choice of individual States. They 
can choose the Conrad approach that contains a block grant as well as a 
temporary assistance program or they can choose the pure block grant 
approach of the Dole program.
  For the past month, my Republican colleagues have engaged in 
extensive and arduous discussions to work out a formula for States with 
high rates of population growth. While we may differ with the merits of 
the formula, the negotiations dealt with the most important issue 
confronting the Senate as we debate welfare reform, and that is 
economic uncertainty.
  None of us in this room can predict the economic future. History has 
taught us that the business cycle is not predictable, natural disasters 
are not predictable, State growth patterns are not predictable, and 
economic performance may differ dramatically between the States.
  Economic uncertainty must be at the forefront of this debate. It is 
precisely the fact of economic uncertainty that leads millions of 
people to welfare during times of crisis. Welfare programs, with all 
their flaws, provide the safety net that helps families survive plant 
closings, droughts, floods, layoffs, and other crises.
  When I set out to develop a welfare reform plan, I told my staff that 
the word ``entitlement'' was banned from their vocabulary. The word 
``entitlement'' sends all the wrong messages and underscores the 
devastating problems of our current system.
  Unfortunately, in the current system, there are no incentives to 
work. Welfare recipients learn quickly that work does not make them 
better off and that not working entitles them to a guaranteed monthly 
check. I think that is the reason the taxpayers have no respect for the 
welfare system as it currently exists. Our current welfare system 
violates American values of hard work and personal responsibility. We 
must reform the status quo and create a system that encourages work, 
self-sufficiency, and that strengthens family.
  I believe my welfare reform plan meets those tests. It does not 
entitle people to a free ride. Instead, it demands responsibility and a 
personal commitment to become self-sufficient in return for a 
transitional welfare check.
  Mr. President, when I go to my State and I talk to the people in 
every corner of North Dakota, they say to me, ``We're not unwilling to 
help somebody that has hit hard times or somebody that is permanently 
disabled or somebody that for some reason has fallen into a 
circumstance where they need some help for a time. And we're even 
willing to help people permanently who are disabled. But, you know, we 
are not willing to be shelling out to pay for somebody who could work 
who refuses to work. That's not fair.''
  Mr. President, they are exactly right. Unfortunately, the debate 
between entitlements and block grants has missed the fundamental issue 
highlighted by these intense Republican negotiations over formula, and 
that is economic uncertainty. I agree that the notion of the no-
responsibility entitlement philosophy of welfare needs fundamental 
change, but the automatic economic stabilization must be retained.
  States will experience hard times and prosperous times in the coming 
years. We cannot predict the economic winners and losers. The only 
thing we can predict is that the future will look very different in 
1996, 1997, and 1998 than it looks in 1995.
  Under the amendment that I am offering today, if States choose my 
transitional aid and WAGE programs, States will have almost complete 
flexibility to design welfare programs. At the same time, the funding 
mechanism will provide an automatic stabilizer to assure that States 
and regions in economic downturns receive the necessary funds.
  Under the State flexibility amendment that I am offering today, 
States would be allowed to choose, first, the Dole block grant, or 
second, the Conrad WAGE and transitional aid program. States would 
choose one approach for 4 years, after which the State could either 
keep the program they have chosen or switch to the other program.
  Under either approach, States would receive their proportional share 
of funding, assuming all States were participating in the same program.
  I would like to briefly describe the specifics of my WAGE and 
transitional aid program. There really are two elements here: 

[[Page S 13161]]

  The WAGE program which is a block grant for job training. The WAGE 
block grant gives States flexibility to provide job placement and 
supportive services to move individuals into jobs as quickly as 
possible. The WAGE block grant consolidates funding from five different 
current welfare programs.
  The JOBS Program, emergency assistance, AFDC child care, transitional 
child care, and the administrative costs of AFDC.
  Welfare would become what the American people want it to be, a 
temporary, employment-based program to move people into the work force. 
The States are given enormous flexibility under the WAGE block grant 
that is part of my overall proposal. States have complete flexibility 
to design employment programs. States may provide monetary incentives 
to case managers for successful job placements and retention, as well 
as to outsource job services and to use performance-based contracts. 
States determine eligibility criteria and participant requirements for 
the specific work and training programs. States have the option to 
require noncustodial parents with child support arrears to participate 
in WAGE. States can establish time limits of any duration that require 
individuals to work as a condition for benefits.
  However, a State may not terminate participants from WAGE if the 
participants have played by the rules and complied with the 
requirements set forth in the WAGE plan.
  States have the ability under the WAGE approach that I have 
introduced today to make the decisions on what the welfare reform 
program will be. We have heard the outcry that States ought to make 
these decisions. My approach allows States to make them within a 
certain broad framework. Self-sufficiency is the goal of my welfare 
reform plan. I am not interested in kicking kids into the streets with 
no support. If a parent is making a good-faith effort to get off 
welfare, as required by the State--and the State determines what is a 
good-faith effort, not the Federal Government--this parent should be 
encouraged to continue to strive for self-sufficiency.
  States are given complete flexibility to determine the sanctions 
imposed on individuals who fail to comply with the State's program 
requirements. Again, it is not the Federal Government deciding, it is 
the States deciding. If a sanction results in the complete elimination 
of aid to a family, States must take measures to ensure the well-being 
of the children.
  Mr. President, obviously there are certain requirements that are 
expected of the States. At the very minimum, States are required to 
administer a WAGE Program that promotes moving parents into private-
sector employment. States must develop a wage employability plan with 
the recipient that indicates the requirements necessary to move off of 
welfare.
  There is a personal contract that is entered into between the person 
seeking temporary assistance and the State. They line out a contract of 
what the recipient is going to do in return for what they receive.
  The States must ensure that children are protected by making certain 
that the child care is available for WAGE participants. The funding 
mechanism is very simple. The WAGE block grant is a cap entitlement to 
States based on historical funding for emergency assistance, AFDC child 
care, transitional child care, and the administrative costs of AFDC. 
The WAGE block grant includes additional funding each year to put 
people to work and to ensure that child care is available. The WAGE 
block grant grows 3 percent a year. States receive incentive payments 
for moving individuals off welfare and into employment, as well as for 
improvements in the number of individuals combining work and welfare.
  Mr. President, my plan is serious about work. Work rates in the WAGE 
Program are phased in, reaching 55 percent in fiscal year 2000. That is 
the highest participation rate of any welfare reform program that is 
before this body. States focus specifically on getting people into work 
with work preparation activities with a minimum of 20 hours a week. If 
the State decides they want to require more than that, that is their 
decision. Half of the participation rate must be met by individuals who 
are working. After 2 years individuals must be working in order to meet 
State participation rate requirements.
  In addition to the block grant approach that replaces current jobs 
programs, we also have eliminated AFDC and, in its place, created a 
transitional aid program. The transitional aid program maintains a 
basic safety net for America's children and provides an automatic 
stabilizer for States. This is where my plan differs fundamentally from 
the Dole plan that is before us, because the Dole plan contains only a 
block grant approach. My plan contains a block grant approach for the 
jobs programs, but has in the temporary assistance program, which 
replaces AFDC, a continuation of the automatic stabilizer. Because, 
again, Mr. President, none of us can predict what the future holds.
  If there are floods in Mississippi or a drought in North Dakota, or 
some kind of economic calamity in the State of Vermont, we do not think 
it makes sense just to have a flat amount of money going out there to 
deal with any kind of emergency. It does not make sense.
  We ought to continue the automatic stabilizer that allows this 
country to function as the United States of America, not just as 50 
separate States. Let the 50 individual States experiment with any kind 
of welfare program they want to create, yes, absolutely. We ought to 
have 50 States operating in that way. But, Mr. President, if there is 
an economic calamity, then this country ought to stand as one, all of 
the States standing together to help a sister State that may have 
experienced some incredible economic calamity or natural disaster. That 
is the strength of America. That is not something that ought to be 
abandoned.
  The transitional aid program, as I have indicated, maintains that 
basic safety net for America's children. And for the States as well.
  My plan fundamentally reforms welfare. It eliminates the Federal 
bureaucracy and overregulation that hampers State efforts to develop 
their own innovative welfare programs. The transitional aid program 
reduces the State plan to 14 elements, compared to the 45 in the 
current AFDC State plan. Instead of Federally mandated policies, States 
have the option to determine eligibility criteria, support and benefit 
levels and the form of those benefits, the treatment of earned and 
unearned income, the extent to which child support is disregarded when 
determining eligibility and benefits, the treatment of children's 
earnings, resource limits, restrictions imposed on eligibility for 
assistance for two-parent families.
  And States have the ability to determine the requirements on 
recipients whether it be work, school attendance, or whatever. States 
have the ability to determine sanctions for individuals who fail to 
comply with State requirements. States determine the payment or denial 
of benefits to children born to individuals receiving assistance. And 
States decide the timeframes for achieving self-sufficiency.
  Mr. President, for those on the other side of the aisle who say, 
``States ought to be the laboratory of experimentation in this 
country,'' I say, amen. Absolutely. Let us let the States experiment. 
Let us let all of the States have a chance to determine a welfare 
reform approach and see how it works. As the Senator from New York has 
said repeatedly, the only thing we can be certain about is that we do 
not know much about what works and what does not work. So let us give 
the States an opportunity to experiment. Let us let them have a chance 
to figure out what works and what does not work.
  But, Mr. President, while we are doing that, while we are engaging in 
this great experiment, let us maintain the automatic stabilizer, let us 
maintain the underlying financing of a system that permits the United 
States to function as one country, that says if Iowa, for some reason, 
gets in special difficulty, that we are not going to just leave the 
children of Iowa out there on their own, that the other States of this 
Union will come together and help that State.
  That makes sense, Mr. President.
  My plan, with respect to temporary assistance, requires that a family 
meet the following criteria to be eligible for the transitional aid 
program: They must have a needy child that is defined 

[[Page S 13162]]
by the State; they must comply with the WAGE employability plan; and 
they must cooperate and comply with paternity and child support 
measures.
  While I have indicated that States have substantial flexibility in 
the design of their transitional aid program, there are minimal Federal 
requirements: They must serve all families with needy children 
uniformly--uniformly--as defined by the State; they must operate a WAGE 
Program; they must operate a child support enforcement program; they 
must maintain categorical Medicaid eligibility for the transitional 
assistance program and provide transitional Medicaid for at least 1 
year. It could be longer at State option. And they must maintain 
assistance in some form to needy children and families in which the 
parent is complying fully with all WAGE and other requirements.
  The State designs the program. The State decides what it is, but if 
people are complying with that program, people cannot be kicked off for 
some other reason.
  Mr. President, under my plan, welfare remains a Federal-State 
partnership. States draw down Federal funds for the transitional aid 
program using the Medicaid matched rate. My plan gives States extensive 
flexibility to design these programs and to invest State funds toward 
these efforts. The Federal Government continues to finance the majority 
of program costs.
  In conclusion, my amendment allows States a choice. States can choose 
between the Dole approach and my approach, a new welfare program that 
combines the flexibility of block grants with an automatic stabilizer 
funding mechanism to respond to economic uncertainty.
  Since day one, the welfare debate has focused on devolution, how much 
authority should be turned over to the States. Every plan of either 
party expands State authority and lessens Federal oversight, and that 
is appropriate.
  There are many State officials, however, that have expressed grave 
concern about ending the current funding mechanism and completely block 
granting welfare. The Dole plan will create 50 different safety nets 
across the country, some of which will hold strong and some of which 
will tear and dissolve when the vagaries of the market create economic 
downturns or in the face of a natural disaster. If States do not want 
to take this chance, we should allow them to choose the alternative 
approach I have presented in my amendment.
  Mr. President, Americans are rightfully demanding welfare reform that 
focuses on work, personal responsibility, and accountability. My 
amendment focuses on the public's demands. It emphasizes work, it 
protects kids, it gives the States enormous flexibility.
  Mr. President, I believe it is the right mix of allowing States the 
right to determine what welfare reform ought to look like while at the 
same time continuing the automatic stabilizer that has proved such an 
important part of our ability to function as the United States of 
America.
  I ask support for this amendment to expand States' abilities to 
develop welfare programs to move parents toward self-sufficiency while 
protecting children.
  I thank the Chair and yield the floor.
  Mr. GRASSLEY addressed the Chair.
  The PRESIDING OFFICER. The majority manager is recognized.
  Mr. GRASSLEY. Mr. President, I have had a chance to sit with my 
friend from North Dakota as a member of the Senate Finance Committee 
where all this legislation on welfare reform comes from. I sense in him 
a true desire to work out compromises and solve some problems that he 
believes will result if we give too much leeway to the States.
  I presume his legislation, where he gives the States a choice of 
continuing with a Federal program or adopting their own, is the 
ultimate of discretion. I do not know who can find any fault with that 
discretion; however, there are goals that we have on this side of the 
aisle other than just choice and discretion to the States.
  One of those is the fact that we have a terribly bad budget problem 
from 30 years of irresponsible spending. Some of that irresponsible 
spending--not all of it, but some of it--is directly related to the 
fact that we have programs that we call entitlements. That means 
basically that whatever is going to be spent, if you qualify, it will 
be spent and there is not much congressional control over the amount of 
money to be spent.
  So his program would continue that entitlement. The Republican bill 
would end the entitlement aspect.
  Also, we on this side of the aisle with our bill save $70 billion. 
The Congressional Budget Office has put a cost on the Conrad amendment 
of $6.99 billion over the next 7 years.
  Mr. CONRAD. Will the Senator yield for a question or a point on that?
  Mr. GRASSLEY. Yes, I will.
  Mr. CONRAD. The amendment that I am offering as an amendment to the 
Dole welfare reform plan would reduce the savings by $7 billion. So is 
it not correct to say that the total package would still achieve $63 
billion of savings over the next 7 years? In other words, I do not 
think it is correct to compare a $70 billion savings under the Dole 
bill to a $7 billion cost under my plan.
  The correct comparison is a $70 billion savings over 7 years under 
the Dole plan, $63 billion of savings under the Conrad plan.
  Mr. GRASSLEY. I am reading from the CBO estimate which says that your 
bill will cost $7 billion over 7 years.
  Mr. CONRAD. The Senator is absolutely correct, if I might say, the 
document from CBO--which I ask unanimous consent to have printed in the 
Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

  PRELIMINARY ESTIMATE OF AMENDMENT PROVIDING STATE FLEXIBILITY TO PARTICIPATE IN THE TAP OR WAGE PROGRAMS (CONRAD), ESTIMATED RELATIVE TO S. 1120, THE 
                                                              WORK OPPORTUNITY ACT OF 1995                                                              
                                                    [By fiscal year, outlays in millions of dollars]                                                    
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                   1996         1997         1998         1999         2000         2001         2002     1996-2002Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Option to Participate in WAGE Program                                                                                                               
                                                                                                                                                        
Family Support Payments:                                                                                                                                
    Budget Authority.........................         -874       -1,184       -1,106         -987         -688         -825         -742          6,607 
    Outlays..................................         -838       -1,190       -1,107         -987         -689         -828         -743         -6,583 
Food Stamps:                                                                                                                                            
    Budget Authority.........................          -26          -75         -121         -183         -250         -308         -376         -1,339 
    Outlays..................................          -26          -75         -121         -183         -250         -308         -376         -1,339 
Medicaid:                                                                                                                                               
    Budget Authority.........................           25           68           68          128          153          137          126            722 
    Outlays..................................           25           68           68          128          153          137          126            722 
Earned Income Tax Credit:                                                                                                                               
    Budget Authority.........................            0            0            1            4           10           21           34             71 
    Outlays..................................            0            0            1            4           10           21           34             71 
Wage Block Grant:                                                                                                                                       
    Budget Authority.........................        1,123        1,695        1,914        2,176        2,414        2,478        2,530         14,329 
    Outlays..................................        1,111        1,678        1,885        2,149        2,383        2,449        2,504         14,159 
Foster Care:                                                                                                                                            
    Budget Authority.........................            0            0            0           -3           -9          -12          -15            -39 
    Outlays..................................            0            0            0           -3           -9          -12          -15            -39 
Total, All Accounts:                                                                                                                                    
    Budget Authority.........................          247          502          776        1,135        1,430        1,491        1,557          7,138 
    Outlays..................................          272          476          746        1,108        1,399        1,459        1,530          6,992 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Basis of Estimate:                                                                                                                                      

[[Page S 13163]]
                                                                                                                                                        
The amendment would allow states to choose whether to participate in the Temporary Assistance for Needy Families (TAP) Block Grant as described in Title
  1 of S. 1120 of the Work and Gainful Employment Act (WAGE) Program described in this amendment. The WAGE program would maintain AFDC benefits as an   
  entitlement, but grant states new flexibility to design their programs. A new capped entitlement block grant would be created which would combine AFDC
  administrative costs, Emergency Assistance, AFDC Child Care and Transitional Child Care. The block grant would require no state match and would grow  
  at 3% a year. Additional funds would be added to the block grant that are equal to 1995 federal JOBS spending and that would grow at a fixed amount   
  equal to $200 million in 1996, rising to $2,200 million in 2002. CBO assumes that two thirds of sales would opt to participate in the block grant     
  program established under S. 1120 and one-third would opt to participate in the Wage program established by this amendment.                           
This estimate does not include AFDC benefit savings associated with provisions limiting eligibility of non-citizens to benefits. If these savings were  
  included, the cost of the amendment would be reduced.                                                                                                 
The estimate assumes that technical changes would be made in the amendment to ensure cost neutrality with an effective date later than 10/1/96. If      
  technical changes were made to include At-Risk Child Care spending in the base amount of the WAGE Block Grant, the cost of this amendment would       
  increase by $300 million per year for each year 1996-2002.                                                                                            


  (Mr. FRIST assumed the chair.)
  Mr. CONRAD. Mr. President, that document makes clear that my 
amendment would reduce the $70 billion of savings by $7 billion over 7 
years to still achieve $63 billion of savings, but to give the States 
this added flexibility, which I think is critical.
  Mr. GRASSLEY. Mr. President, while we are waiting to get that 
deciphered, I want to go on to another point that I wanted to make 
about the bill that is before us.
  The Senator from North Dakota speaks about 55 percent of the people 
who would have to be working. That 55 percent seems higher than the 50 
percent in the Republican plan, but it depends upon what group you talk 
about.
  On the Republican plan, our goal and requirement is that 50 percent 
of everybody on welfare, the category of everybody on welfare, would 
have to be working.
  In the bill of the Senator from North Dakota, he would have these 
categories of people exempted from the 55 percent rule: Parents of 
children under 12 weeks of age or, at the State's option, up to 1 year; 
individuals who are ill or incapacitated, as defined by the States; 
individuals needed in the home on a full-time basis to care for a 
disabled child or other household members; individuals over 60 years of 
age; individuals under age 16, other than teenage parents. I am not 
going to argue about the Senator's rationale for exempting certain 
populations.
  So his goal is 55 percent of a group that has several exemptions in 
it as required to work. Whereas, in our bill, we have 50 percent of a 
whole, without exemption.
  So for those reasons--the fact that it does not save as much money as 
our proposal saves, and the fact that it does not have as high a goal 
of people to work by the year 2000--we feel that this bill, even though 
it does give an option to the States of whether to choose the Federal 
entitlement or a program defined by the individual State, does not go 
far enough in eliminating a major problem with the welfare system of 
the last 40 or 50 years. That problem is the Federal entitlement. It 
seems to me the maintenance of a Federal entitlement is a litmus test 
of whether or not we are going to have business in welfare reform or 
whether or not we are going to have a completely new approach.
  The plan offered by Senator Dole is a completely new approach--no 
longer a Federal entitlement, no longer an environment in which there 
will be an encouragement for dependency; but instead a requirement 
where we are going to move more people from welfare to work.
  I yield the floor.
  Mr. CONRAD addressed the Chair.
  The PRESIDING OFFICER. The Senator from North Dakota is recognized.
  Mr. CONRAD. Mr. President, let me just say, with respect to the 
Republican plan, it is true that they have 50 percent of the total, but 
that total is a different total than the total I am talking about, 
because they take 15 percent of the caseload right off the top. They 
have 15 percent that are exempted right off the top. It is impossible 
to know whether the categories that we have exempted--that is, a mother 
with a child under 12 weeks, we think it is appropriate that the mother 
stay home with the child. If somebody is sick and disabled and cannot 
work, it is appropriate that they not be expected to work. They come at 
it a little different way. They take 15 percent off the top and say the 
provisions do not apply to them. We come at it by specifically 
categorizing those people who should not be expected to be part of the 
work force.
  Mr. President, there is a larger issue of work here, as well, and 
that is, what is the fundamental complaint about welfare? The 
fundamental complaint is that we are not moving people to work. The 
Republican plan is sadly deficient with respect to that issue. 
According to the testimony we had by the Congressional Budget Office, 
in 44 of the 50 States, there will not be a work requirement because 
there is not sufficient funding for child care to get the people to 
work, and that 44 of the 50 States would be better off taking a 5-
percent penalty than to have a work requirement. So if we want to talk 
about a work requirement, let us be honest about it.
  The work requirement in the Republican plan is a hoax. It says it is 
tough on work, but they do not provide the funds necessary for people 
to actually go to work, because they do not have the child care. So 
people are not going to be going to work. And States will not have the 
work requirement because they are better off; rather than providing the 
child care necessary to get people to work, they will take the 5-
percent penalty. That is CBO's analysis, not mine. CBO said that 44 of 
the 50 States will not have a work requirement under the Republican 
plan.
  Mr. President, the proposal I am offering says we want to devolve 
power to the States. We want to give States the ability to experiment. 
We want to have a chance to have 50 different States have 50 different 
programs, and let us see what works. Absolutely, I am all for it. Sign 
me up. That is what my amendment does.
  But my amendment also says there ought to be the economic stabilizer. 
I do not know if it has become an ideological question that you 
eliminate the role for the Federal Government just because it feels 
good--because rhetorically it feels good. I do not get it. Are we 
saying that if California has massive earthquakes, tough luck? Are we 
saying if North Dakota has a devastating drought, tough luck? Are we 
saying if Mississippi has massive flooding, tough luck, the United 
States is not in on the deal? I thought this was the United States of 
America. I thought this was a Union. That is the America I know.
  So there is this idea that we are going to cut States adrift and they 
can do whatever. Here is the money and good luck, I hope things work 
out. But if you have a disaster--a natural disaster or an economic 
calamity--and kids get put on the street, tough luck. I do not think 
much of that plan.
  I was in California and I saw a young woman on the street with two 
little kids--a middle-class woman, begging. I went up to her and I 
said, ``How did you get on the streets of San Francisco begging with 
these two little kids?'' I tell you, if you would have seen that woman, 
you would have seen a person that looks like she just came from the 
shopping center, grocery shopping with her two little kids. She was an 
attractive woman, nicely dressed, and the kids were nicely dressed. 
They were out on the streets begging. Why? Because her husband had 
taken a hike and her house had gotten foreclosed, and she was homeless 
with two little kids. Well, some of us believe that is not a 
circumstance that should be tolerated in America. That woman and those 
little kids ought to have a place to go.
  The Republican plan says we are so locked into ideology, the Federal 
Government should not have a role in anything, and we are willing to 
take that chance. Well, I am not willing to take that chance. I think 
if some State suffers a disaster, the United States of America ought to 
stand together and protect the kids--at least the kids. That is the 
difference.
  Mr. President, this is dramatic welfare reform that is being proposed 
in my amendment--dramatic. It is not the Federal Government deciding 
these programs; it is the States deciding. But if we get to the 
circumstance where there is a disaster and the State cannot meet the 
needs of the kids, then I think we live in a United States of America.
  I yield the floor.
  Mr. KENNEDY addressed the Chair.
  The PRESIDING OFFICER. The Senator from Massachusetts is recognized.
                           Amendment No. 2560

  The PRESIDING OFFICER. Under the previous order, the pending question 
is amendment 2560, and the time until 5 o'clock will be equally 
divided.

[[Page S 13164]]

  Mr. KENNEDY. Mr. President, I yield such time as I might use.
  The struggle for decent child care is a daily fact of life that all 
working families understand, regardless of their income.
  Some in Congress may want to ignore these realities, but a mother 
with young children who wants to work or go to school does not have 
that luxury.
  Today and every day, millions of American families face impossible 
and heart-wrenching choices--between the jobs they need and the 
children they love--between putting food on the table and finding safe 
and affordable care for their children.
  We have heard a lot about turning welfare into work--but precious 
little about who will care for the nearly 10 million children on AFDC 
while their parents meet the mandate to pursue job training or go to 
work. If we are serious about promoting work and strengthening families 
instead of punishing them, we must deal responsibly with the issue of 
child care.
  Today--at long last--is our chance to do this long overdue reality 
check on the pending Republican welfare reform proposal.
  Quality child care creates opportunity and increases productivity--
not just for one generation, but for two. Child care is not about 
giving parents a blank check. It is about giving them a fair chance. 
Failing to make child care a centerpiece of welfare reform makes a 
mockery of any such reform. It will only pass the real life tragedy of 
dependency from one generation to the next.
  Today, 21 million low-income children are eligible for Federal child 
care programs. Yet less than 7 percent of these children currently 
receive this essential support. Clearly more--not less--needs to be 
done.
  But too many of our Republican colleagues seem content with simply 
slashing benefits, and will do so at any cost. If that is the plan--the 
Dole program fits the bill. But those who seek truly to promote work 
and strengthen families understand the need to remove real world 
barriers to self-sufficiency.
  For many, even most, the greatest barrier to self-sufficiency is lack 
of child care. The Census Bureau found that 1 of 3 poor women not in 
the labor force identified child care as their greatest barrier to 
participation. One in five part-time workers said that they would work 
longer hours--if child care was available and affordable.
  A GAO study of participants in 61 welfare-to-work programs in 38 
States found that more than 60 percent of respondents reported that a 
lack of child care was their number one barrier to participation in the 
work force.
  The National Research Council recently documented that mothers with 
safe and adequate child care arrangements were more than twice as 
likely to successfully complete a job training program.
  The link between child care and self-sufficiency is well documented 
in report after report after report. The real question is--will the 
Senate act based on this mounting evidence.
  We know that 60 percent of AFDC families have at least one preschool 
child. It is simple common sense that they would need child care 
assistance to enroll in job search, community service, or workfare 
activities. But while there have been loud calls for cutting benefits 
and ending welfare, there has been a deafening silence on the need for 
child care. It is time to break the silence and put together a 
realistic program--a program not based on rhetoric but on reality and 
results.
  But when it comes to child care, the ever-evolving Dole bill 
continues to be fatally flawed. While we have now seen three 
modifications--one essential fact remains the same. The Dole bill does 
not dedicate a single dime to providing child care services to families 
on welfare. Behind Dole No. 1, Dole No. 2, and Dole No. 3--one reality 
remains clear--the primary goal is to reduce spending and not increase 
opportunity.
  The Republicans may choose to call their bill the Work Opportunity 
Act--but this noble claim is nothing more than a hollow promise when 
you look at the fine print. Simply put, their numbers just do not add 
up. They know it and CBO has confirmed it. This bill is not welfare 
reform--it is welfare fraud.
  Let us consider the facts.
  As we prepare to move millions of American families into job search 
and workfare programs--the Dole bill repeals the child care programs 
targeted to these families.
  That is outrageous. That is irresponsible. That is not a joke--it is 
a fraud. I ask--who will care for these children?
  In 1988, by a vote of 96 to 1, the Senate passed and President Reagan 
signed into law a guarantee that child care would be provided to each 
and every AFDC family pursuing job training or education or 
participating in workfare programs to enable them to develop the skills 
necessary to secure private sector jobs.
  That was not a radical idea then, and it should not be now. This is 
sound and sensible policy--adopted with strong bipartisan support. This 
policy appropriately acknowledged the critical link between child care 
and work. But in the Republican plan, this guarantee and the resources 
to make it real are gone, wiped out, taking with them the hopes and 
dreams of poor children and families in every State.
  Some may say that these funds are not eliminated--just given to the 
Governors with greater flexibility to spend them as they see fit. I 
only wish it was that simple.
  The Dole bill takes the funds for safety net benefits, job training, 
and child care--folds them into a single block grant--and freezes 
spending at the 1994 level through the turn of the century. As States 
feel the crunch of this dwindling Federal support, who will care for 
the children?
  If you want to imagine the predicament the Republicans are putting 
the Governors in, just think about a family budget. Take the average 
family's annual budget--include food, rent, child care, and work 
expenses. Cut it back to what they spent last year. Tell them they get 
no increases for the next 5 years--regardless of inflation, sickness, 
fire, or other unforeseen disasters. Undoubtedly they will run into 
serious financial trouble.
  That is exactly what is going to happen in State after State after 
State. Children and families are going to pay the price--and in the 
long run, so will the Nation.
  The Dole bill professes to increase work participation rates by 131 
percent over the next 5 years. That is an admirable goal, but who will 
be taking care of the children?
  The Department of Health and Human Services estimates that States 
will have to spend $11 billion more over the next 5 years on child care 
to make this happen. Senator Dole's plan budgets $12 billion less in 
real dollars.
  All of us are for work--but this will not work. That is why some have 
called this plan the ``mother of all unfunded mandates.''
  In Massachusetts alone, to meet the work requirement in the Dole 
bill, the State must increase participation from 10,000 to nearly 
30,000 in 5 years. This means funding tens of thousands of new child 
care slots at a cost to the State of nearly $89 million in the year 
2000 alone. The State is already falling behind as 4,000 families wait 
for the child care they need--without help from the Federal Government. 
Who will care for these children?
  Forty-four States are projected to simply throw up their hands and 
ignore the work requirements in the Dole bill, according to the 
nonpartisan Congressional Budget Office. CBO believes States would 
rather accept the sanctions for failing to comply, than try to reach 
the goals without the resources needed to make it possible.
  States are far better able to afford the 5-percent grant reduction 
than a 165-percent increase in child care needed to make the program 
work. Only a handful of States may even bother to comply with the work 
requirement. That does not sound like progress to me. It sounds like 
tough talk and no action. It may provide the savings needed for a tax 
cut for wealthy individuals and corporations--but it certainly will not 
change the welfare system. It may reduce the welfare rolls, but it will 
not increase the future prospects of millions of American children and 
their families.
  In fact, it is more likely to produce homelessness than opportunity. 
It is more likely to leave children home alone than in quality child 
care programs that can give them a decent head start in life. Is that 
the direction we want to go? I do not think so and I hope my colleagues 
do not think so.

[[Page S 13165]]

  Now let us review the ways that the various Dole plans have sought to 
fill this child care gap.
  First, the Dole bill and each of its modifications includes the child 
care and development block grant unanimously reported by the Labor 
Committee. But this grant program was created to provide child care 
services to low-income working families to help make ends meet. Low-
income families spend nearly one-third of their income on child care 
and they are too often only one pay check away from falling onto 
welfare.
  Low-income working families need this help too--and we must do a 
better job of making work pay. The average cost of a child in child 
care is almost $5,000 a year--yet the take home pay from a minimum wage 
job is stuck at $8,500 a year. This is not manageable and it is not 
acceptable.
  States already have long waiting list of working families who are 
desperate for this assistance. For example, California has 255,000 on 
its waiting list, Texas has 36,000, Illinois has 20,000, New Jersey has 
25,000, and Minnesota has 7,000, just to name a few. In many States, 
young children will graduate high school before their names reach the 
top of the child care waiting list.
  If the resources provided for this program are diverted to filling 
the child care void for welfare families created by the Dole bill, it 
will surely jeopardize the livelihoods of the 750,000 working families 
who currently depend on this assistance.
  Such an approach is callous and counterproductive. In Massachusetts, 
of mothers who left welfare for work and then returned to welfare, 35 
percent cited child care problems as the reason. Additional support at 
this critical time could have made all the difference. But the Dole 
bill will pull the rug out from under these families, just as they are 
getting on their feet.
  And despite the clear reality that this program was created for low-
income working families, and that it falls far short of being able to 
meet the rapidly growing need for child care services for welfare 
families, the Dole bill allows governors to transfer 30 percent of 
these essential resources to other purposes.
  At every turn, the Dole bill chips away at child care for poor 
families struggling to make a better life for themselves and their 
children. This simply adds insult to injury and makes a bad situation 
worse. I ask again, who will care for the children?
  For all of these reasons, the original Dole bill was rightly called 
Home Alone. It freed parents to work, but did nothing about child care. 
It left children home alone. In the end, it would wind up forcing more 
families onto welfare than we help get off welfare. That's certainly 
not reform.
  And then came the sequels.
  Home Alone II--or as I call it--Home Alone by 2--sought to address 
the need for child care by exempting mothers with babies under the age 
of one from the work requirement.
  But once you reached the age of one they said, you're old enough to 
care for yourself. You do not need child care. You are on your own. 
This may have been welcome news to the 10 percent of families on 
welfare with a child under the age of one. But it was a continuing 
nightmare for the mothers of preschoolers and school-aged children who 
had to face the choice of leaving their children home alone or losing 
their benefits and livelihood.
  Home alone is not a joke or a Hollywood film. It is a real life 
tragedy for American families pressed to the wall. Just listen to the 
horror stories from families who have been put in this awful position--
and have paid an unbelievable price.
  Think about 6-year-old Jermaine James of Fairfax County and his 6-
year-old friend Amanda, who were being cared for by his 8-year-old 
sister Tina. When a fire broke out in their apartment, Tina ran for 
help, inadvertently locking the younger children in the burning 
apartment. They died before the fire department could get to them. 
Sandra James and her husband needed two jobs to support their family 
and still could not afford child care. They tied to stagger their 
schedules but did not always succeed.
  Think about 7-month-old Craig Pinner of San Francisco who drowned in 
the bathtub while his 9-year-old brother was trying to bathe him. His 
mother was working part time and participating in job training. She 
usually left the child with her family, but her car had broken down and 
she was no longer able to get them there. She was trying to find 
affordable child care but was unsuccessful.
  Think about 4-year-old Anthony and 5-year-old Maurice Grant of Dade 
County. While home alone they climbed into the clothes dryer to look at 
a magazine in a hiding place, pulled the door closed, and tumbled and 
burned to death. Their mother was waiting for child care assistance and 
generally left the children with neighbors. But sometimes these 
arrangements fell through and she had to leave them home alone for just 
a few hours.
  This did not happen in Hollywood--but in Virginia and Florida and 
California and elsewhere. We must do everything in our power to avoid 
putting families in this kind of a situation in the name of reform.
  The most recent Dole modification prevents families with children 
under 5 from being sanctioned for not participating in the work program 
if they can not find child care. But 66 percent of families on welfare 
have a preschool child.
  I believe our top priority and our primary strategy should be to 
assist families in securing the child care they need to enable them to 
work and achieve self-sufficiency. Is that not what real reform is all 
about?
  Exemptions and other protections should be our fall-back plan and not 
our national policy. If we are serious about promoting work and 
protecting children, we need to find the money to provide the child 
care that is needed. Home alone should not become stay at home under 
the present system.
  As States face the difficult task of trying to move millions of 
people from welfare to work, we should not only give them additional 
flexibility but the tools they need to get the job done. We should help 
States push for real change--not just in the ledger books but in the 
real lives of their citizens who depend on them. If States are forced 
to do more with less, children will pay the price. That is not fair and 
it is not smart.
  Investments in children pay off--not just in their lives--but for 
society as a whole. That is why the business community has been so 
outspoken about the importance of early childhood development programs. 
They know that the work force of tomorrow is being cared for--or not--
today. Children deserve more than custodial care. They need structure 
and positive individual attention. Above all, they need a sale place to 
learn and grow.
  I am pleased to join Senators Dodd, Moseley-Braun, Mikulski, Murray, 
Kohl, Kerrey, Jeffords, and others in offering this important child 
care amendment. Its purpose is simple and straightforward--it seeks to 
provide the child care assistance necessary to make the Dole bill work. 
It is not an attempt to change the intent of the bill, but to put 
resources behind the rhetoric to ensure real results.
  The amendment is not about building bureaucracy or creating new 
entitlements. It is about providing States with the funding they need 
to meet, rather than ignore, the Dole bill's work requirements. It 
ensures children will be cared for in safe and appropriate child care 
settings. And it continues much-needed support for working families, 
rather than pitting them against families seeking self-sufficiency. It 
is a realistic pro-work and pro-family proposal.
  We are in a budgetary era where we have to make some very difficult 
choices. But if we avoid these choices, we are not representing the 
real needs of the American people. We are taking care of the special 
interests of corporate America, and removing these special interests 
from the debate. Well, it is high time to make them a part of the 
debate, and take advantage of the billions of dollars in misguided tax 
expenditures that are provided to large corporations across the 
country.
  We have spent enormous amounts of time debating the need for a 
balanced budget, and all of its ramifications on domestic spending--yet 
we have refused to take a long, hard look at tax expenditures and 
loopholes, which work against the goal of a balanced budget on a 
trillion dollar scale.
  We at least owe it to the American people to close these loopholes 
that are truly egregious. Corporate America 

[[Page S 13166]]
and wealthy Americans with expensive tax lawyers have learned to 
navigate through them, but they do not represent good policy. They take 
away jobs for working families and those who want to work. And we can 
use those dollars to provide desperately needed child care.
  At the present time, tax expenditures are not even reviewed on an 
annual basis.
  When a tax loophole is approved, it is placed on the books and 
remains there unchallenged. It is no wonder that loopholes continue to 
grow and expand the budget deficit.
  Over the next 7 years, these tax expenditures will eat up $4.5 
trillion--$4.5 trillion. Many of these tax expenditures are necessary 
to spur investment in particular industries and goals, whether it is 
high technology, exporting, manufacturing, or achieving the American 
dream of buying a home.
  The global economy within which we are now competing demands that we 
provide necessary tax incentives for investment in this country that 
will create new jobs for working families.
  But it is time to take a closer look at corporate tax breaks. Often 
only the wealthiest can take advantage of them.
  Primary examples of the tax expenditures that should be reviewed and 
thoroughly overhauled are the loopholes that United States and foreign-
owned multinational corporations now use to minimize their U.S. taxes.
  Companies are now taxed on their U.S.-generated income. They have a 
significant incentive to minimize the calculation of their U.S. income, 
and therefore their U.S. taxation--called transfer pricing. They shift 
income away from the United States and shift deductible expenses into 
the United States for tax purposes.
  As this chart shows, the General Accounting Office has reported that, 
in 1991, 73 percent of foreign-based corporations doing business in the 
United States paid no Federal income taxes. And more than 60 percent of 
U.S.-based companies paid no U.S. income taxes. The number of large 
nontaxpaying firms has doubled in recent years.
  IBM, for example, was fortunate enough to accumulate $25 billion in 
U.S. sales in 1987. That same year, its 1987 annual report stated that 
one-third of its worldwide profits were earned by its U.S. operations. 
Clearly, its U.S. operations were appeared profitable and successful. 
Yet, its tax return reported almost no U.S. earnings.
  Multinational corporations should pay their fair share of taxes. They 
should be required to pay taxes on their U.S. share of worldwide sales, 
assets, and payroll.
  This is not a new problem. To the contrary, we have been trying to 
close these types of loopholes for almost 20 years. We knew then, as we 
know now, that it was a loophole that necessitated action. The only 
difference now is that it is a much bigger problem, much more 
pervasive, and much more costly to the Federal Treasury.
  Our current tax laws have the unacceptable consequence of allowing 
multinational corporations to lurk in foreign tax havens, hide behind 
foreign subsidiaries and corporate shells, suck income and profits out 
of the United States, and then thumbing their noses at Federal tax 
officials and State tax commissioners in every State.
  Multinational corporations can also take advantage of the so-called 
title passage rule; $3.5 billion per year is lost because large 
multinational corporations sell U.S. goods abroad and avoid all U.S. 
taxes through some sleight of hand while the goods are on the high seas 
during the export process.
  We have known about this serious loophole for some time. In fact, 
this loophole was closed by both the House and the Senate during 
deliberations on the Tax Reform Act of 1986. But for some reason it was 
dropped in conference.
  As an example, a U.S. company makes a sale and ships the products 
from a U.S. port to a foreign country. Under normal circumstances, the 
shipment would generate the payment of taxes to the United States. But 
under a special rule, that company passes title to the products on the 
high seas, and avoids all Federal taxes. On top of that, the company 
pays taxes on the products in the country to which they are being 
exported, and uses those taxes to claim tax credits against other U.S. 
taxes it may owe. It is a lose-lose proposition all the way around for 
the United States.
  This provision applies only to multinational companies. It is of no 
use to domestic, smaller companies.
  Some will suggest that closing such loopholes will hurt exports and 
prevent the expansion of our markets to create new jobs for the 
economy. But these are unnecessary loopholes that were never meant to 
be used in these ways. When these provisions originally became law, 
Congress had no idea of the loopholes being created.
  Additional tax breaks for multinational corporations are available by 
setting up corporations that exist only on paper. They are called 
foreign sales corporations, and provide exporters with the opportunity 
to exempt 30 percent of their export income from U.S. taxation.
  Many other similar loopholes exist, such as tax credits provided to 
U.S. companies for payments made to foreign countries, or tax deferrals 
for U.S. companies on income of foreign operations that is not 
repatriated to this country.
  These tax breaks cost the U.S. Treasury billions of dollars each 
year.
  And, of course, there are other types of corporate welfare:
  The peanut program and other agricultural subsidies provide billions 
of dollars to large corporations, although the family farmer was the 
intended recipient. Senator Santorum has filed legislation to phase out 
the peanut program.
  The excessive mining subsidies provided through an 1872 law have 
never been changed. Senator Bumpers was on the floor last week 
discussing the fact that the Secretary of the Interior was forced to 
sell 110 acres of Federal land to a large corporation for $275--$2.50 
an acre. Yet the land has more than $1 billion in mineral value.
  The House Republicans capital gains tax cut now will add $31 billion 
to the already existing $57 billion capital gains subsidy that now 
exists.
  The repeal of the alternative minimum tax will cost the U.S. Treasury 
almost $17 billion, and enable many wealthy corporations to reduce 
their taxes to zero by playing the loophole game.
  The accelerated depreciation loophole was partially closed in 1986 
and 1993, but still generates more than $100 billion in tax subsidies.
  The billionaires' tax loophole allows super-wealthy individuals to 
renounce their U.S. citizenship and avoid U.S. taxes.
  The bill before us seeks to balance the budget on the backs of poor 
children. Over the next 5 years, the Dole bill cuts $50 billion for 
programs and services targeted to children and families in the toughest 
of circumstances. Current spending on AFDC benefits and job training 
and child care for families on welfare represents less than 1.5 percent 
of the Federal budget. It is true that we need to reduce the deficit--
but the pain should be more evenly distributed.
  We need to make difficult choices to balance the budget. But when we 
are choosing between children and the wealthy individuals and 
corporations that have shrewd tax attorneys, the choice is clear. 
Children should prevail. Welfare reform should include reform of 
corporate welfare too.
  The futures of 10 million children are in our hands--and Congress 
should not leave them home alone under welfare reform, when reform of 
corporate welfare can provide the resources necessary to do the right 
thing on child care.
  Mr. President, we have had a good opportunity, I think, in the past 
few days to address the issue on welfare reform. Quite obviously, there 
is a very strong commitment on both sides of the aisle to move 
legislation that is going on to enhance employment and employment 
possibility and diminish welfare dependency for the citizens. No one 
really wants that more than those that are participating in that 
process and system.
  We have also begun, really, the debate on a key element about how 
effective we can be, and that is the debate that we talked about 
briefly during the time when this issue was called up last week; more 
precisely, on Friday last, when Senator Dodd introduced the amendment, 
which I welcomed the opportunity to cosponsor, which is before the 
Senate at this time.
  It is entirely appropriate as we start this week and the Nation gives 
focus 

[[Page S 13167]]
and attention to the U.S. Senate as to where we are going to end up on 
this debate, and where we are going to end up legislatively, to give 
full focus and thanks to a key element of this debate and of this 
legislation. That is, the availability in this legislation to provide 
for good, quality, decent child care for working families.
  That is a key element. Republicans and Democrats alike understand 
that in the debate of last week, in the very brief exchange that I had 
with my colleague from Pennsylvania, Senator Santorum, who is a 
supporter of the legislation.
  I went over after the discussion and reminded and talked with him 
about the legislation that he had introduced and worked for in the 
House of Representatives. A key element of that program was the child 
care program. I daresay, even as they went through the discussion 
earlier today with the Kassebaum amendment, talking about child care, 
it is something that reaches across both political spectrums, a 
recognition that if we are not going to have good quality child care we 
are not really going to have a meaningful welfare reform.
  The idea of this legislation is to get people to work but not at the 
expense of the children in this country--not to be unduly harsh, 
punitive, to the children of this country.
  I think we all understand the old adage that none of us had a chance 
to choose our parents. Children do not have a chance to make a judgment 
decision whether they will be born in poverty or to some degree of 
affluence. They have no control over it.
  We want to make sure as we move ahead on this legislation that we are 
not going to get carried away with the punitive aspects of it and say 
that we are going to have a welfare reform, and as a result of it have 
a particularly harsh, devastating, unrealistic, and cruel impact on the 
children of this country.
  One of the aspects that can be particularly cruel and harsh is 
separating children away from their parents in a way that denies those 
children, particularly at the early ages, from the kind of nurturing 
and care and affection and love as well as the food and resources and 
social services and health care, to ensure that they are going to have 
a good opportunity to be able to grow and to prosper.
  We do not need much of a review and debate, Mr. President, on what is 
happening to children. The fact is an increasing number of children in 
our country are falling into poverty. We do not need to review again 
the importance of those early years, both the expectant mother, the 
various studies and reports and experiences which have taken place, the 
Beethoven project that was of such importance in terms of Chicago, that 
shows what happens when you provide expectant mothers with well-baby 
care, and also the newborn children with the kind of attention and 
support and nurturing as well as nutrition, and move them in helping 
them developing their various kinds of skills and talents, and what 
kind of results that they have in terms of their early years as 
compared to those that do not have those kinds of attention.
  We do not need those additional kinds of studies. We have seen those 
studies. The evidence is out there both for the smallest of children, 
infants, as well as children in their earliest of years, moving on 
through their early teens.
  We know what is really essential. We cannot guarantee if a child has 
healthy parents, if a child has good health care, if a child has given 
good nutrition, if the child is going to grow up without violence and 
surrounded by the other kinds of aspects which are so attendant to 
poverty, that that child is necessarily going to turn out to be an 
extraordinary success.
  What we do know is that you deny that expectant mother the nutrition 
and the care. You deny those children the early kinds of intervention. 
You set those children, really, apart from the nurturing experience of 
their parents or loved ones. We know that the opportunities for those 
individuals to move ahead in the society in a constructive and positive 
way are significantly diminished.
  I saw this morning a recognition by one of the Nation's publications 
where they were talking about the 100 companies that were family 
friendly. They were talking about again, the importance of one of the 
criteria being child care, and talking about the enormous changes that 
have taken place over the period of recent years, the economic 
realities where we went through in the 1980's and effectively required 
that they were going to have the mother enter the job market as well as 
the father, to make up for the needed resources to maintain a standard 
of living because of the freeze on wages and the freeze on employment 
opportunities.
  We will have an opportunity to debate that at another time in terms 
of the increases in the minimum wage and what has happened in terms of 
the incomes of working families in this country and the earned-income 
tax credit.
  All of this has demonstrated that with the restrictions on working 
families, with the limitations on income, the wives, the women in the 
families entered the job market in the period of the 1980's in order to 
try and maintain the joint income. We find now that opportunity does 
not exist in the 1990's with all kinds of attendant results which are 
putting additional kinds of pressures on the families.
  One of the dramatic results from the mother entering the job market 
is that there has been an increasing number of children being left 
alone at home, the home alone concept, which I have referred to in the 
past, is something which is a reality in this country and in our 
society and in the workplace.
  We have reviewed for the Senate earlier in this debate the number of 
children, the thousands, millions of children, who are left unattended 
during the course of the day, even at the time of the afternoon when 
they come back from school.
  We have to ask ourselves, what are the results of these factors, and 
why we are all as a society surprised when we see this extraordinary 
behavior by children in our society, the youngest people, to think that 
this comes right out of the blue, it comes completely off the wall.
  We have to ask ourselves what have been the circumstances and 
conditions that so many of these children grow up in, where basically 
they are left behind. The children are not the ones that have been left 
out. It has been too often, under too many circumstances, the parents 
that have left them behind. The children want to be included. It has 
been the actions of the parents that have left them behind.
  That, Mr. President, is important to recognize as we begin the debate 
and have had the debate on the questions of welfare reform. We are 
trying to take people that are able bodied, that can work, and give 
them the opportunity to work and make sure they will be productive 
members of our society.
  We have learned a very fundamental fact, Mr. President. It has been 
understood in city after city and community after community in State 
after State. That is, if you are expecting those individuals to take 
the jobs that they are going to need to have some kind of a training or 
some kind of skill, they are going to have to have day care. They will 
have to at least have the assurance that their children will have some 
degree of health care that is being provided for them in that 
employment. Those are things that are provided in the existing kind of 
program that we are altering and changing.
 Those were evidenced in the 1988 act. But what we are seeing now, 
rather than understanding that experience and rather than building on 
that experience, we are moving in an alternative and very different 
direction.

  We have to ask ourselves whether this is serious, meaningful reform. 
Are we really going to be presenting to the American people a program 
that is going to move people off welfare if we are not going to provide 
child care for their children? Not only are we not going to provide the 
care, but are we also going to eliminate the existing care that is 
actually provided under the three different programs under the Finance 
Committee that provides $1 billion a year for some 700,000--some 
643,000 children at the present time, that is being provided at the 
present time under the 1988 act? And also provided is 10 percent for 
150,000 children at the present time.
  Now, what has happened and where we are in this debate in the Senate 
as 

[[Page S 13168]]
we go through this, as the Dole amendment has effectively eliminated 
the $1.1 billion--that is out, that is gone--what we are saying to the 
643,000 children is, ``That program will not be there. That program 
will not be there for those working mothers who today are able to 
benefit from that program.'' We are saying to them, ``Tough luck for 
you. Tough luck for you. Because the program that is out there today 
that is providing child care for your child is gone under this program, 
effectively gone.''
  The $1 billion that was developed over here with the discretionary 
programs, with strong bipartisan support--Senator Dodd, Senator Hatch, 
Senator Kassebaum, other members of our committee that had developed it 
some years ago--that provides $1 billion for 750,000 children, 
effectively one-third is being taken off that to be used for other 
purposes. That is a very, very dramatic emasculation of the existing 
child care programs.
  Mr. President, if you look at what had been projected for child care 
over the period of time, over these future years, and look if we are 
going to conform with the recommendations that are included in the Dole 
proposal, we are basically saying half the people are going to have to 
work and of those able-bodied people who are going to have to work, 
half of those people are going to find child care on their own. How 
they are going to do it, we have not heard much of an explanation for 
it.
  I wish they could come and talk to the parents in my own State of 
Massachusetts, who are on lists and have been on lists, and in scores 
of other States, where you have, 10,000, 20,000, 30,000 parents who are 
trying to get child care today. They say, ``Somehow that will be 
done.''
  It is not being done in the cities. It is not being done in the 
States. But somehow Washington knows best. Remember that slogan? 
Washington knows best. Under the Dole proposal, Washington knows best. 
Half of the able-bodied people are going to be able to get it on their 
own. That is what Washington knows, in spite of the fact that you have 
scores of States that have tens of thousands not providing it at the 
local level, the local community. We ought to be able to learn 
something from what is happening at the local community.
  We are constantly being told we ought to learn something from what is 
happening back home. I can tell you what is happening back home. 
Working mothers, particularly single heads of household--but not just 
single heads of households, working families that are making just above 
the minimum wage, making that $15,000, $20,000, $22,000, $24,000, 
$28,000 a year, are finding it extremely difficult to be able to get 
any kind of child care. Many of those families, depending on the size 
of the family, are living in poverty.
  So, what are we finding out about what will be necessary? We are 
finding out what will be necessary from this chart here, over this 
period of time, under the projections of the Republican welfare 
program, under the total amounts of $16.8 billion that will be in this 
program, flat-funded over the period of time. Then we take the 
projections of what will be necessary, needed to provide child care for 
welfare recipients mandated under the Home Alone bill. HHS has 
estimated it will cost $11.2 billion of the 16.8. That leaves the other 
moneys available for all the other kinds of functions.
  We may hear, during the course of the debate, ``Well, Senator, you 
just don't get it. You just don't get it. What we are doing over here 
is, sure, we are canceling out the $1 billion that we have under the 
welfare program and we are giving maximum flexibility to a third of 
that other billion dollars under the discretionary to let the 
Governors--and we all know the Governors will do it. Therefore, your 
argument really does not hold a lot of water.''
  The answer to that is, 80 percent of the funding now that is provided 
here goes in the benefits of individuals. Let us have the testimony 
from those Governors who are going to do it, who say we are going to 
reduce the benefits, 80 percent of the benefits, not the child care, 
the benefits to individuals. When you look at what is happening in the 
States, you see that they are not doing it today. Why will we believe 
they will do it tomorrow when they are not doing it today? When you 
have all of these States that have these extraordinary lists for child 
care that are out there, they are not doing it today. They say, ``You 
give us all of this money, this $16.8 billion, and you just relax back 
there, because we are going to do it.''
  When I hear from these Governors how we are going to take that $16 
billion and we are going to spell that out, how we are going to really 
meet the child care needs, and what benefits they are going to cut for 
the people in their States--we have not heard it from one Governor, 
Democrat or Republican. Not one. But we are asked to take that on good 
faith. We are told that is what is going to happen. ``You just don't 
understand, Senator. You give the Governors this $16 billion. They will 
know how to deal with this correctly. They know how to balance. They 
know how to choose.'' Yet, when they are using 80 percent of the 
current funds for benefits and they refuse to tell us about how they 
are going to use these kind of funds to take care of those children, I 
think it is important for someone to speak for children, for someone to 
say they are not going to be the ones who will be left out and left 
behind.
  Mr. President, 10 million or 11 million of the 14 or 15 million 
Americans on welfare are children. And the principal debate is how we 
are going to get busy, in terms of how we are going to get their 
parents busy. All of us want to make sure that able-bodied people who 
can work ought to work and go to work. That is included in the program.
  But what we are going to do is at what price to the children? Someone 
has to speak for the children, and this amendment does it. That is what 
this amendment is about.
  When this issue was brought up earlier in terms of the majority 
leader, and I inquired of him last week about the issue of child care, 
he indicated that there was support on both sides of the aisle to try 
to address this issue. Later in the week the new legislation was 
introduced, the modified--this legislation ``as further modified'' was 
introduced. This is 791 pages. This is always interesting to me, having 
gone through the health care debate. Remember the times that we had all 
of our Republican colleagues who said, ``Look at this bill. Look at 
this bill. How could we ever wind our way through this bill? Look, it 
is 1,300 pages.''
  You had 1,400 last week, one with the Dole and one with the modified. 
No one is squawking about that. No one is complaining about that.
  Mr. President, 777 pages--we got the modified and we took a look at 
what was in the modification and all that was in the modification, what 
I call the Home Alone bill, all that was in the modification was to 
permit States, regarding mothers who had children up to 1--permit 
States, not mandate, not say to the States, ``You cannot have the 
punitive aspects''--permit the States not to enforce the punitive 
aspects of this legislation and effectively cut off all the benefits if 
the child is under 1.
  Then this issue was brought up again. It was said, look, we are still 
not adding child care. Effectively, what you are doing is taking about 
10 percent of those we want to be able to work and effectively 
excluding them, if all the States are going to do it, and I expect we 
think they would, if we believed that mothers, primarily, with children 
under 1, should not be penalized for deciding to stay home and care for 
their child rather than to go to work.
  So later in the week we have the other amendment, which is the third 
change that says we will permit them to exclude mothers who have 
children up to 5 years. That is 65 percent of the mothers on welfare. 
Do we understand? We are talking now about trying to reform the welfare 
program and we are saying effectively 65 percent of the people who are 
on welfare will not have to have the punitive provisions because they 
will not have to work because of the Snowe amendment. I mean, sometime 
people have to start to say what are we really debating here? What is 
this reform we are debating? All the measures that are being put in, I 
guess, are just being decided in some forum. We heard so much about the 
health care being decided behind closed doors. We have now three 
different positions 

[[Page S 13169]]
by the leadership on this issue that have moved from taking, I think 
emasculating, the child care programs to one position to saying we will 
permit the States to exclude at least 10 percent. Those are the mothers 
with small children up to 1. And then later in the week for children up 
to 5, which is 65 percent of this--all being done under a request to be 
able to modify the amendment as amended.
  Now we have to ask ourselves where are we? I want to say to our 
Republican friends, I applaud their initiative and I applaud their 
actions because, if this measure is going to go into force, that is 
going to at least provide some protection for those children. But the 
fact of the matter remains that it does not add a single dime to saying 
to those mothers that may have the opportunity to work and they can 
work, we are saying to those mothers we are providing child care for 
you so that you can get your training, you can get your education, you 
can make the job search, you can go out and begin the process of 
working yourself up through the economic ladder. We are challenging you 
to go out and work.
  How are you going to be able to do that? There is only one way to do 
it, and that is to provide child care. The real welfare bill will 
provide work and child care. That is why this amendment is so 
important. It is effectively providing the child care funding that is 
necessary and has been projected as necessary for those working 
mothers. It will provide restoring the existing program, or funding, 
that exists under the Finance Committee, and provide the additional $6 
billion to $5 billion, which is the existing child care funding lumped 
into the general block grant, and $6 billion in new money needed to 
make work requirements real.
  That will be taken, hopefully, from what we call the corporate 
welfare. We have reduced it in this amendment by the savings, by the 
$50-odd billion in savings. So that is specific. But our desire, 
Senator Dodd and myself, is that we take it from the corporate welfare.
  You can say, what are these types of corporate welfare? We will have 
a chance to go into those in some detail. I can still remember where we 
were in the debate on corporate welfare when we had the billionaire's 
tax, which is $1.6 billion. Remember that here in the Senate of the 
United States? We came back with a small conference report a number of 
months ago. We went on for days before we could at least get a vote 
about whether we ought to close the billionaire tax loophole, which 
says effectively that you can make it big in the United States and 
then, if you become a Benedict Arnold and reject your citizenship and 
become an expatriate, you do not have to pay your taxes. That is the 
billionaire's tax loophole.
  Some of us believe that they ought to pay their fair share, that 
anybody who has been here, has been a citizen and has been able to 
participate in the protections of freedom, independence, and liberty 
have some obligation, as greedy as they might be, and as desirous as 
they want to be of taking the money and running, we say we ought to 
close that loophole. That is $1.6 billion. That issue about trying to 
close that loophole passed overwhelmingly. I think it was 96 to 4 in 
the Senate.
  Do you think we have that particular proposal included, that $1.6 
billion, as a way of trying offset the child care? Do you not think the 
American people say, OK, that is $1.6 billion. There is $1.6 billion of 
that money for child care. Let us see if we cannot find the rest of it. 
Of course, we can. There is a whole series of different proposals that 
have been referred to as the corporate welfare proposal--we hear a lot 
about welfare--which I think ought to be considered.
  All this amendment says is that we will reduce the savings by $6 
billion, but it follows on with this amendment to say, let us find the 
$6 billion out of the billions of dollars--$424 billion under the 
budget resolution--of tax expenditures. We ought to be able to squeeze 
those expenditures just like we are squeezing the earned-income tax 
credit that benefits working families that are making $26,000; just 
like we are squeezing the students in this country, sons and daughters 
of working families that are talented, creative, and have the 
intellectual ability in order to go ahead. And we are squeezing them by 
the in-school interest payments, which will mean, for every student 
that borrows, $3,000 to $4,000 additional a year. We are squeezing 
those students out of $32 billion in education funds. We are squeezing 
those students anywhere from $8 billion to $9 billion in different ways 
in education generally, under the instruction of the Human Resources 
Committee, out of all the money that we are spending in education. We 
are squeezing them out of $8 billion to $10 billion.
  Out of $400 billion, we ought to be able to get $6 billion for child 
care. $1.6 billion right off the top. We voted 96 to 4 for it. Why do 
we not say, all right, there is $6 billion, let us take that right away 
and let us look at the other $400 billion and see if we cannot get $4 
billion out of there to make it up and make sure that in a welfare 
reform program that requires work that we are going to provide the 
child care? Why do we abandon them? Why do we abandon the children? Why 
do we abandon working families? Why do we abandon workers who want to 
get off welfare and go ahead? Why do we say that corporate welfare is 
more important than the well-being of the children of this country, the 
11 million of them that are the sons and daughters of welfare 
recipients?
  Mr. President, I see my friend and colleague who is a principal 
sponsor on the floor now. I will not take additional time. But I will 
point out that on this chart where we are talking about a total of $11 
billion, and we know that of this $11 billion $5 billion can be paid 
for by discontinuing the existing--and these are the changes that have 
been made over in the House--additional one-third of the $60 billion. 
They want $30 billion more in the capital gains tax. That is on the 
table over there.
  Some of these items are examples of corporate welfare: 5-year cost, 
$300 million; $18 billion shifting U.S. sales overseas--$18 billion. 
These are financial incentives to more jobs overseas and to make sure 
that the companies do not pay any taxes if they do so. That is a 
wonderful tax incentive. It seems that we ought to cut back a little 
bit on those measures.
  I am mindful that we will not be able to get uniformity among all the 
Members on these different items. That is not the purpose of raising 
this chart here. But all we are saying, Mr. President, is that under 
the Dodd-Kennedy amendment, we will provide the necessary child care 
program, No. 1; that we have the $5 billion under the existing programs 
that are authorized and appropriated under the existing financing. So 
we have to make up the $6 billion. And under the Dodd bill, that $6 
billion is made up on reducing the savings, and it is our position that 
we can find the $6 billion scattered across this range of corporate 
welfare starting with the billionaires' tax cut.
  We are wide open to consider any suggestions from any of our 
colleagues as to how you package together that additional $6 billion. I 
would suggest that the first part include the billionaires' tax cut, 
but we are wide open to how that can be done.
  Ultimately, if you say we cannot even do that, at least let us say 
that this measure deserves to be passed because with it being passed, 
we will provide child care for the children of this country. We will 
say to them, as all of us are wont of saying, that they are our future 
and they are our priority. They deserve the first priority. And rather 
than just saying it or speaking about this rhetorically, we will be 
doing something for the children of our future. That is what this 
amendment is about, and I believe it is the most important amendment we 
will have in this debate.
  I ask unanimous consent that the examples of corporate welfare be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

             Examples of corporate welfare--five year costs

       Shifting U.S. Income Overseas (Transfer Pricing), $300 
     million; Shifting U.S. Sales Overseas (Title Passage), $18.3 
     billion; Creation of Phantom Sales Corporations, $7.5 
     billion; Billionaires' Loophole, $1.6 billion; Peanut Program 
     Phase-Out, $264 million; Mining Subsidies for Major 
     Corporations, $280 million; Capital Gains Tax Break, $57.4 
     billion; Repeal of Alternative Minimum Tax, $16.9 billion; 
     Accelerated Depreciation of Buildings and Equipment, $115.1 
     billion; Market Promotion Program, $425 million.
     
[[Page S 13170]]


                   Corporate welfare--five year costs


           Shifting U.S. Income Overseas--cost: $300 million

       Tax loophole allows multi-national corporations to avoid 
     U.S. taxes by shifting income to foreign subsidiaries and 
     shifting costs to U.S. facilities.


           Shifting U.S. Sales Overseas--cost: $18.3 billion

       Tax loophole allows multi-national corporations to avoid 
     U.S. taxes by passing title for exported goods on the high 
     seas. Loophole was closed by both the House and the Senate 
     during deliberations on the Tax Reform Act of 1986--but was 
     dropped in conference.
       As a result of this and other tax breaks for multi-
     nationals, 62% of U.S. multi-national firms pay no U.S. 
     income taxes.


       Creation of Phantom Sales Corporations--cost: $7.5 billion

       Tax loophole allows exporting companies to set up phantom 
     subsidiaries that exist only on paper and exempt up to 30% of 
     their export income from U.S. taxation.


             Billionaires' Tax Loophole--cost: $1.6 billion

       Tax loophole allows billionaires to renounce their American 
     citizenship to avoid millions of dollars in taxes on income 
     and capital gains. Loophole applies to those with a minimum 
     $600,000 in unrealized gains, which generally would 
     necessitate a minimum $5 million net worth.
       Finance Committee and full Senate closed loophole with 1995 
     legislative action, but it was re-opened in Conference.
       Senate voted 96-4 on April 6, 1995 to close the loophole. 
     It is still open.
       Loophole allows an individual to enjoy all the benefits of 
     the U.S., grow rich because of them, and then renounce 
     citizenship to avoid taxes on the wealth generated in this 
     country.


              Peanut Program Phase Out--cost: $264 million

       Program introduced during the Depression to assist 
     struggling farmers by distributing poundage quotas to 
     individuals to grow and sell peanuts. Less than a third of 
     quota holders are farmers. Quotas are passed from generation 
     to generation.
       World market price for peanuts is $350 a ton, and American 
     price is $678 a ton. Companies who use peanuts have moved 
     plants to countries where peanuts are less expensive, costing 
     U.S. jobs. Since 1990, peanut butter plants have closed in 
     Virginia, Georgia, Alabama, Michigan, and New York.


                  Mining Subsidies--cost: $280 million

       Originally signed by President Grant to encourage 
     settlement of the West, the current mining law has allowed 
     the extraction of over $200 billion in mineral reserves with 
     minimal federal compensation. A company can ``patent''--or 
     buy--20-acre tracts of land at a price between $2.50 to $5.00 
     per acre. The land then becomes available for mining or any 
     other use, with no royalties for the government.
       Last week, Secretary of the Interior Bruce Babbitt was 
     forced to sell 110 acres of federal land in Idaho for $275. 
     The land was sold to a Danish company for $2.50 an acre, and 
     reportedly contains $1 billion of minerals.
       Last year, prior to a moratorium put in place, a Canadian 
     firm paid $10,000 for federal land in Nevada. The land has 
     mineral value of $10 billion.
       If the law stands, approximately 140,000 acres of public 
     lands containing more than $15 billion of publicly owned 
     minerals will be given away. One of the largest involves the 
     Jeritt Canyon Mine in Nevada. A South Africa company and FMC, 
     a U.S. corporation, propose to pay $5,080 for land with an 
     estimated mineral value of $1.1 billion.


              Capital Gains Tax Break--cost: $57.4 billion

       Capital gains tax break benefits the wealthiest 1% of the 
     population. Legislation passed by the House as part of the 
     Contract with America would expand this benefit by $31.9 
     billion.


         Repeal of Alternative Minimum Tax--cost: $16.9 billion

       Alternative minimum tax was instituted in 1986 Tax Reform 
     Act. Major corporations, despite massive profits in an 
     expanding economy, were paying zero taxes because of their 
     artful combination of tax loopholes. Examples include:
       DuPont--Despite $3.8 billion pre-tax profit, no taxes were 
     paid; Boeing--Despite U.S. profit of $2.3 billion, no taxes 
     were paid; and General Dynamics--Despite $2 billion pre-tax 
     profit, no taxes were paid.


   Accelerated depreciation of buildings and equipment--cost: $115.1 
                                billion

       Largest of all corporate tax loopholes are write-offs for 
     accelerated depreciation of buildings and equipment.
       Expanded as part of the 1981 Reagan tax plan, the tax break 
     was curtailed in the 1986 Tax Reform Act and the 1993 
     reconciliation bill. Legislation passed by the House as part 
     of the Contract with America would expand this benefit by 
     $16.7 billion.


              market promotion program--cost: $425 million

       Market Promotion Program funds consumer-related promotions 
     of products through advertising campaigns, trade shows, and 
     commodity analyses on foreign markets.
       In 1995, the Senate deleted funding, but the Conference 
     Committee restored $85 million. The House has just increased 
     1996 funding for the Program by 25%.
       Funds are used to subsidize large companies like Miller 
     Beer, McDonald's, General Mills, and M&M/Mars. American 
     taxpayers spent $29 million advertising Pillsbury Muffins 
     abroad and $10 million on Sunkist oranges. One report has 
     cited $100 million in expenditures for foreign-owned 
     corporations.
       House Majority Leader Armey: ``I wonder about our 
     commitment to deficit reduction if we cannot take Betty 
     Crocker, Ronald McDonald, and the Pillsbury Doughboy off the 
     dole.''
       Program should target its resources to smaller companies 
     attempting to expand their markets, not large multinational 
     corporations that hardly need public assistance.
  Mr. KENNEDY. I yield the floor.
  Mr. GRASSLEY. Mr. President, I yield myself such time as I might 
consume.
  Before I speak about the amendment that the Senator from 
Massachusetts just discussed, I wish to settle an issue that I 
discussed with my friend from North Dakota on his amendment concerning 
just exactly what CBO says the cost of that amendment is.
  I hope that there will not be any dispute on this point. The Conrad 
amendment costs money. He says it saves $63 billion. There is nothing 
in this amendment that he has before us that saves $63 billion. In 
fact, what he basically has done is add provisions to the Dole bill 
that cost $7 billion.
  I have the CBO estimate in my hand, and it says right here, $6.992 
billion is the cost over a 7-year period of time. So I hope that will 
put that to rest now as to the aspects of that amendment.
  In regard to the amendment that is before us, the Dodd amendment, I 
wish to remind my colleagues that the Dole modification to the original 
bill S. 1120 regarding child care--offered on September 8, last week--
prohibits States from sanctioning a single custodial parent if 
appropriate child care for a child age 5 and under is not available 
within a reasonable distance of the home or work site, or informal 
child care by a relative is unavailable or unsuitable, or appropriate 
and affordable formal child care arrangements are not available.
  So there will not be any sanctioning of any parent with a child under 
age 5 if these sort of suitable arrangements are not readily available.
  Let me point out that S. 1120, as introduced, provided and continues 
to provide two streams of funding for child care. I think we are 
getting the opinion from the other side that there is no concern 
whatsoever about provisions for child care. That simply is not so. And 
the original had provisions for child care. But to address some 
Members' concerns, that maybe it did not go far enough, those 
provisions I just stated were added.
  In the original S. 1120, the current AFDC-related child care 
provisions, like IV-A child care, transitional child care, and at-risk 
child care, are included as part of the cash assistance block grant to 
the States. Funding for that is $16.8 billion for each year, fiscal 
year 1996 through fiscal year 2000.
  The current child care and development block grant, the State 
dependent care planning and development grants, and child development 
associate credential scholarships are folded into a separate child care 
development block grant. Funding for these is authorized for fiscal 
year 1996 at $1 billion and such sums as necessary through the year 
2000.
  The Dodd amendment earmarks $1 billion of the cash assistance block 
grant for child care and provides an additional $5 billion to States 
for child care. Furthermore, it mandates that the child care provisions 
apply to children 12 and under, including prohibiting States from 
applying sanctions to those who do not fulfill their work requirements.
  Now, it seems as if liberals refuse to recognize that the main cash 
assistance block grant and the child care and development block grant 
will not constitute the only funding source available to AFDC children. 
Other funding sources for child care include Head Start, title 20 and 
chapter 1.
  While liberals attack the Work Opportunity Act of 1995 as somehow 
being a Home Alone bill, like we have no care whatsoever for children, 
they continue to ignore the fact that most of the JOBS participants did 
not report receiving child care funded by AFDC day care. In fact, 
according to the CRS, only 38 percent of all AFDC JOBS children age 5 
and under reported receiving IV-A paid child care in fiscal year 1993.
  The other side complains that the measures to sanction mothers who 

[[Page S 13171]]
  refuse to work are punitive because they may not be able to work due to 
a lack of available child care. However, this concern has been answered 
by the additional provisions offered on September 8 because the States 
will not sanction mothers that they determine cannot obtain appropriate 
child care. I hope we have addressed their concern satisfactorily.
  Liberals claim that the Congressional Budget Office figures prove 
that S. 1120 will impose an unfunded mandate on the States concerning 
child care costs. The CBO estimates show additional costs of $280 
million in fiscal year 1998, $830 million in fiscal year 1999, and $2.2 
billion in fiscal year 2000.
  However, the Congressional Budget Office estimates are based on the 
1994 caseload level for all 5 years. The fiscal year 1994 caseload was 
at a historically high level due to the massive expansion of the rolls 
following the Family Support Act of 1988.
  The Republican bill provides the mechanisms to give the States the 
flexibility that is needed in order to lower costs and improve the 
quality of child care. Our bill enables States to transfer up to 30 
percent of the available funds between the child care block grant and 
the main cash assistance block grant. This transfer of funds will 
permit States to make the proper provisions for both low-income and 
welfare children so that funding is available as parents shift from 
welfare to work. The ability to transfer funds between block grants 
then gives States the maximum flexibility to target resources where 
they are needed.
  We in Washington, DC, and the Congress of the United States, cannot 
expect to pour one mold here in Washington, DC, where we are going to 
solve all the child care problems or all the welfare problems as they 
exist in New York City or my State of Iowa in exactly the same way. We 
cannot expect a good use of the taxpayers' money to accomplish the 
most.
  We have to wake up to the fact in this body and in this town that our 
population is so heterogeneous, our Nation so geographically vast, that 
it is impossible to make these very critical decisions in Washington, 
DC, that are going to solve the welfare problems the way they ought to 
be solved with the best use of the taxpayers' money moving people from 
welfare to work in the process.
  Our bill gives States the flexibility to accomplish that. The reason 
that we give States the flexibility to do that is because so many of 
our States have shown the ability in their welfare reform legislation 
to move people from welfare to work and save the taxpayers money.
  This legislation builds upon the success of several States, albeit 
under waiver from the Department of HHS, to experiment, to use new 
dynamic approaches to welfare reform. But they are doing it. And we 
observe that. We observe that States are going to do it better than we 
can. In fact, considering the fact that 3.1 million more people are on 
welfare now than in 1988, the last time Congress acted, it ought to 
prove to us dramatically that our efforts toward welfare reform have 
failed.
  Now, in addition to what I said about the 30 percent that can be 
transferred between the block grants by the States--and that is a 
legitimate discretion to the States--our bill says that the States can 
determine the proportion of funds to be allocated for child care and 
the method of delivery. It could be cash, it could be vouchers, it 
could be reserved spaces in designated facilities. It gives to the 
States the method of delivery in the main cash assistance block grant, 
and the provision to improve the quality of care for children, enabling 
relatives and religious providers to care for children without onerous 
regulatory burdens. At the same time, we hope to be able to do it by 
lowering the cost of child care.
  Our bill strengthens current law regarding parental choice by 
eliminating the registration requirements for relatives who serve as 
child care providers as a condition of receiving a subsidy from the 
block grant, and includes provisions requiring that referrals honor 
parental choice of child care providers. Our bill permits the States to 
provide vouchers to recipients so they can contract for child care by 
charitable, religious, and private organizations through a voucher 
system.
  Our bill allows us to move beyond the point that Government is the 
answer to every problem and that only Government can solve our social 
problems. We have a number of examples that serve as a structure for 
charitable, religious and other private organizations, with a little 
help through a voucher system, that are able to help solve these 
problems in a much better way than the Government. We should not assume 
here in Washington that Government generally is the answer to every one 
of our problems. And when we assume that Government is an answer--
obviously, through this legislation, we are not assuming that the 
Federal Government is the only answer to every problem, but that there 
is a role for State and local governments.
  But an obvious step beyond that is not to assume that Government, and 
a Government program, is the answer, but that there are other 
organizations out there in our society--charitable, religious and 
private organizations--that can help, and maybe even do a better job of 
it than we in Government can do. So our bill does that.
  Our bill also allows States to count welfare mothers as fulfilling 
work requirements by providing child care services for other welfare 
mothers. To the other side I say, it is legitimate maybe to think in 
terms of problems that might be created, that children need to be taken 
care of when mothers are working. But the answer to that problem might 
be in the very neighborhood of the welfare mother who wants to go to 
work by giving income to another welfare mother who wants to provide 
child care in the home. This will help them move from welfare to work, 
maybe to establish a very successful occupation and business they would 
not otherwise be able to start.
  So neighbor helping neighbor is one answer to this problem, as well. 
You do not have to look just to some sophisticated organizations to 
provide child care. Give options to the families. Give neighbors an 
opportunity to help, particularly if that neighbor is somebody on 
welfare that wants to move to other sources of income. This gives that 
opportunity.
  Now, under our bill, States can meet work participation rates without 
incurring major additional child care costs by moving recipients with 
older children off the rolls and into work.
  According to the General Accounting Office, JOBS participants tend to 
be older and have older children than nonparticipants. The most recent 
data available from the Department of Health and Human Services 
indicates that for 39 percent of the AFDC families, the youngest child 
was 6 years old and over.
  The Dodd amendment constrains State flexibility by eliminating $1 
billion from the cash assistance block grant and making a decision here 
in Washington, DC. It earmarks it through congressional enactment for 
child care rather than leaving the decision to the States.
  In addition, it appropriates $5 billion--that is in addition to the 
$1 billion I just spoke about--in Federal funds for child care grants 
over the next 5 years, even though the need for these funds has not 
been demonstrated.
  Under the Republican bill, the child care block grant calls for such 
sums as are necessary in fiscal years 1997 through the year 2000. So if 
there is a need for increased funding, then funds can be appropriated 
through this provision rather than locking Congress into a decision to 
spend $5 billion right now.
  The Dodd amendment effectively provides sufficient funding for every 
parent to have child care for children 12 and under and enforces the 
entitlement by eliminating the State's ability to sanction parents who 
choose not to work.
  We assume that the States have the ability to make that decision, for 
children over 5 that they ought to have that right to make that 
decision.
 Our bill does that.

  I yield the floor.
  The PRESIDING OFFICER. Who yields time?
  Mr. DODD addressed the Chair.
  The PRESIDING OFFICER. The Senator from Connecticut.
  Mr. DODD. Mr. President, do I control the time?
  The PRESIDING OFFICER. Yes, you do.
  Mr. DODD. Mr. President, I yield myself such time as I may consume. 
How 

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much time remains? There is a voting time. Parliamentary inquiry, we do 
not have an allocation of time?
  The PRESIDING OFFICER. There is a vote set at 5 o'clock, with the 
time divided equally. You have about 82 minutes.
  Mr. DODD. I yield myself 10 minutes. If the Chair will notify me in 
10 minutes. If I need more time, I will yield some. I will try to stick 
to this time constraint.
  Let me quickly respond to my colleague from Iowa before he leaves the 
floor, if I may, on a point he has made on the earmark.
  Senator Hatch of Utah has an amendment pending which deals with the 
earmark which I think is pretty much unanimously supported. That is, to 
earmark out of the $48 billion, $5 billion for child care. I strongly 
support it. I think most people do.
  What we are talking about in the Dodd amendment is not only the Hatch 
amendment, the $5 billion, but an additional amendment that we would be 
putting into the Child Care Program. The reason we do that, I say to my 
colleague from Iowa, is, in effect, to try and really assist the Dole 
proposal so that it can be done, if we try to achieve the desired goal 
here, and that is to get as many people to work as possible.
  Under the Dole welfare reform proposal, 25 percent of all people on 
welfare are required, under the law, to be at work within 2 years, and 
then 50 percent of all people on AFDC to be at work by the year 2000.
  Mr. President, I have to be careful about numbers, but this is a 
report that was put together on the Republican leadership plan. I will 
tell you who put this together in a minute. It is an analysis of the 
projected numbers of people that would be required to be at work under 
the majority leader's bill.
  There are several columns. It goes State by State. The first column 
is the ``Projected number required in the year 2000 to participate in 
work under the Senate Republican leadership plan.'' Go over two columns 
and it is, ``Projected number required to actually participate,'' with 
a number in between, ``Projected number of leavers, combiners, and 
sanctioners that count toward participation.''
  I do not know what that means, except that it reduces the number. It 
must mean that people who otherwise would be exempt under the proposal, 
for one reason or another, because it reduces the first number by 
almost 50 percent.
  If you take the first number, the projected number by the year 2000, 
it is in excess of 2 million people who would have to be at work by the 
year 2000.
  In Tennessee, the number of people is 46,000. My State of Connecticut 
is 26,000. Iowa is 17,000. If you take the Tennessee number and the 
Connecticut number, as it is reduced down, the Tennessee number 
actually gets you down to 23,400. The Connecticut number reduces from 
26,000 down to about 13,500. It is exactly in half. I do not know quite 
how that happened. Let us just accept that number, somewhere between 2 
and 1 million. Fifty eight thousand will have to meet that criteria.
  Maybe someone can explain that middle column to me at some point, 
what a leaver and combiner is that reduces that number.
  The point is this. It is estimated that the number of child care 
slots that will be necessary to move these people from welfare to work 
is roughly increasing the number by 165 percent. If we do not do that, 
the States are going to be faced with penalties, a 5-percent penalty, 5 
percent on the block grant the State would get.
  As you calculate that, the 5-percent penalty is probably less than 
saddling the State with the cost. I will give you the numbers of what 
is estimated State by State. I will ask unanimous consent to print this 
in the Record.
  The estimated cost State by State related to child care alone, beyond 
what we presently have in the bill, would require an expenditure in 
Connecticut of $48 million. In Iowa, it is $32 million; California, 
$652 million; in Tennessee, it is $84 million, and each State goes 
down.
  I see my colleague from Utah. Utah is $14 million. This is what the 
States would have to come up with, we are told, in order to meet the 
child care requirements. Sixty-four percent of these people have 
children under the age of 5. You are either looking at reducing 
spending in other areas or coming up with a tax increase to meet that 
number. We are doing what Hatch proposed, and we are allocating of the 
$48 billion, $5 billion to child care.
  We are going a step further by saying the demand is such you have to 
have a resource allocation to avoid putting States in the position of 
having to pay the penalty because you are not able to get there unless 
they come up with this kind of revenue increase, which I think is going 
to be difficult in many cases. Or they probably would opt for the 
penalty, given the lower cost of paying the penalty.
  In the debate on welfare reform, we should not be in the business of 
trying to promote penalty payments or necessarily asking States to meet 
this criteria to come up with a tax increase on their own. What we are 
talking about is an allocating of existing resources under the block 
grant and additional resources to meet the demands.
  The number is somewhat in debate, depending upon, like most things in 
this town, when you start talking beyond the $5 billion. Everyone 
admits beyond the $5 billion, you need more resources. We are told 
roughly it is close to $6 billion over 5 years. Others will say it is 
$3 or $4 billion, and we are roughly in that range. Depending upon what 
happens with the numbers I outlined to begin with on how many people 
are actually moved to welfare, if it is the 2 million or the 1 million, 
that number, that $6 or $3 billion would probably change somewhat. But 
clearly, we need some if we are going to make this work.
  Again, I do not know anyone who disagrees with the notion that when 
you have young children--by the way, I applaud the majority leader's 
decision to take the exemption from 1 to 5 years. That is going to 
help, I believe. What it does too often is it gives people an excuse 
not to get from welfare to work. I appreciate trying to help out those 
families, but I believe our underlying goal ought to be, how do we move 
people from public assistance to work. Not giving them a reason not to, 
but rather, how do you achieve it, not just in economic terms, in 
dollars and cents. There is a societal benefit, in my view, that 
exceeds whatever dollars we invest or save here, that far exceeds the 
numbers that we benefit or costs us to do this.
  The value of work, a family at work is so much more important in many 
ways than the budgetary implications. There is nothing that is more 
salutary for a family, a neighborhood, a community than work.
  And so while I applaud the decision to exempt these families, and 
understand it, we ought to be doing everything we can not to create 
exemptions but to create opportunities for work. So while I fully 
understand and accept the concern about an additional $3 to $6 billion 
over 5 years, Mr. President--not 1 year; over 5 years--I happen to 
believe that is a good investment, if we stick to our common goal, and 
that is to do everything possible to make it possible for people on 
public assistance to get to work.
  There are other elements as well, the job training and so forth, the 
health care elements, but one of them clearly is the child care 
question.
  Again, you do not have to be on welfare to understand the child care 
question. As I said the other day, any family in this country with 
young children, regardless of their income, knows of the anxiety of 
child care, particularly if it is a single-parent family raising 
children or two-income earners out there. They worry about it every 
day, every week, every month, wondering about whether the child care 
will be there next week, is it good child care, is it safe--all of 
these questions that people worry about.
  No one is necessarily going to have to get into the shoes of a 
welfare recipient to appreciate the feelings of a mother or parent that 
is going off to work and wants to know where those children are. I 
might add, Mr. President, that in fact not only is this going to help 
people get to work, but, based on what Senator Hatch and I did a few 
years ago on child care--by the way, we had the same qualities, 
standards, and so forth, incorporated as part of our block grant as are 
included here. We happen to believe that the child care settings are a 
lot better than some of the settings we would be talking 

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about where some of these children would be.
  There is another educational element here. Not every single case, but 
most of the child care programs, church-based and community-based 
programs, are pretty good programs. They have sliding scales and so 
forth to make it possible. All we are saying here is that to really 
make our welfare reform program work, to really make the Dole bill 
work, you have to have some feature to this that makes it possible for 
people to be able to leave their homes in the morning, knowing full 
well that their most important asset, the thing they care about the 
most, their children, are taken care of. They are not going to go out 
the door--and they will pay any price--particularly if they have infant 
children, and even 5, 5\1/2\ years of age, even though there are 
preschool programs, they will not leave those children unattended. They 
will go to jail or pay fines.
  We ought to create an environment where it is inviting to go to work, 
not create obstacles. How do we take down the barriers? In any survey 
that I have read over the last 5, 6 years on welfare to work, if not 
the top reason, Mr. President, one of the top two or three reasons is 
the absence of child care. In fact, one of the problems is that in our 
urban areas, unlike suburban areas where you get more options of child 
care because there are a lot more people in the business of child care, 
in our urban settings, there is less of that. So the options available 
to people in our poorer areas--urban and particularly rural areas--is 
more difficult.
  The problems in rural America and urban America are more difficult in 
trying to find child care settings for people. A lot of people are not 
in the business of child care, for obvious economic reasons. The 
pressures are great in the areas where we find the larger 
concentrations of people on public assistance, in our poor areas, and 
there is not the kind of availability.
  What we are hoping to be able to do with this amendment--and I truly 
hope it is bipartisan--is bring everyone together on this one issue. 
Senator Hatch and I did that 5 years ago in our child care program. It 
really united a lot of people here around a common theme of trying to 
eliminate one of the major obstacles of going from welfare to work--to 
come up with a proposal that provides resources.
  This is not an entitlement. It is not that somebody has a right to go 
into court and demand these resources. It is truly an assistance to the 
States that have good child care programs, that have flexibility, that 
we are asking to do a lot. This is a mandate, a Federal law that says, 
within 2 years, you have to have 25 percent and, by the year 2000, 50 
percent have to be at work, or we penalize you 5 percent of your block 
grant.
  Now, again, that is a mandate. All we are suggesting here is to make 
it possible for these States to achieve those goals and those numbers--
whether it is the 2 million, Mr. President, or the 1 million. Again, I 
will try to sort out that number. It is somewhere in between here. 
Clearly, those are going to be difficult numbers to reach. In 
California, 358,000 people are going to have to find work slots. We 
know how difficult it is to find work for people. Here are 358,000 new 
jobs we are going to have to come up with in California. The number is 
17,000 in Iowa, 102,000 in Michigan, 200,000 in New York, 104,000 in 
Ohio, and 46,000 new jobs in Tennessee in the next 2 years. We all know 
of the pressures of people being laid off, losing jobs, with downsizing 
and so forth. So as we try to create new jobs and requiring people to 
move into them, to make it possible and ease that burden of child care 
seems to me to be critically important.
  One additional element. Again, I respect the 5-year-olds and less on 
the exemption. But if you have four children, and three of them are 
over 5 and one is under, you are exempted because you have one child 
under 5. So if you have three children--maybe 12, 13, and one is under 
5--you fall into the exemption category.
  We ought to be trying, as I say, not to create a situation where 
people say, ``How do I avoid this and continue to collect public 
assistance?'' But we ought to try to move people into that work 
category. Again, I respect the exemption and applaud it in some ways; I 
welcome it as an improvement here. What I really hope, Mr. President, 
is that we can come together here in the next few hours on this 
proposal. It is not draconian or radical. It is a simple enough idea. I 
think you build a much stronger base of support for the majority 
leader's bill with the result of the adoption of this. I think the 
President would welcome this, in terms of his signature. Also, I think 
it would really make it possible to reach the kind of numbers we are 
talking about here to be entering that work force, moving away from 
public assistance. And the tremendous value, beyond the dollars and 
cents we talk about, the value to those families and to those children, 
I think, does not show up on all these graphs and charts we talk about. 
It is hard to put a price tag on the value of somebody at home who has 
a job, and what it means to that family and neighborhoods and 
communities when people are working.
  For those reasons, I urge adoption of the amendment. I thank our 
colleague from Vermont for cosponsoring the bill. We adopted 
unanimously in the Labor and Human Resources Committee a sense-of-the-
Senate resolution which concludes by saying, ``It is the sense of the 
Senate that the Federal Government has a responsibility to provide 
funding and leadership with respect to child care.'' That is in 
anticipation of this bill coming along. And as the distinguished 
occupant of the chair is a member of that committee, I appreciated his 
support of that resolution. I hope that he, along with others, will be 
supportive of the amendment pending.
  I yield the floor.
  The PRESIDING OFFICER. Who yields time?
  Mr. KENNEDY. Mr. President, how much time remains on each side?
  The PRESIDING OFFICER. There are 67 minutes on that side and 97 
minutes to the Senator from Utah.
  Mr. KENNEDY. I yield 10 minutes to the Senator from Washington.
  Mrs. MURRAY. Mr. President, I began listening to this debate several 
weeks ago with the hope that some positive changes could be made to the 
current welfare system. Since then, I have spent weeks in my State 
talking with friends and parents and members of communities about this 
issue.
  I must admit, as we continue this debate, I have mixed feelings. I 
still believe the Senate can achieve real welfare reform that works for 
families. But I have been disheartened by the Senate's rejection of the 
work-first amendment, because I believe that amendment reflected a 
workable, nonpartisan, solution-oriented approach to fixing the welfare 
system.
  Now we are considering an amendment that goes to the very heart of 
the welfare debate: childcare services. Make no mistake about it, Mr. 
President: childcare is the key to successful welfare reform.
  Mr. President, I bring a unique perspective to this debate on the 
Senate floor. I am a mother with school-age children. I have been a 
preschool teacher, dealing with kids from all economic classes. I have 
run parent education classes, counseling young parents to help them 
develop their skills as mothers and fathers in the modern world.
  I can tell you what it's like to take a phone call from a young 
single mom at the end of her rope. She is burning the candle at both 
ends, trying to work, worrying all day long about her kids. For this 
parent, her paramount concern is childcare; she cannot focus on doing a 
good job without knowing her kids have adequate nourishment, 
supervision, and care during the day.
  Fully 34 percent of current welfare recipients have identified access 
to childcare as the single barrier between them and reentering the work 
force.
  To succeed in reforming welfare, we have to understand the everyday 
challenges of everyday parents. We have to speak their language, and 
know their issues. Only by knowing and understanding these challenges 
can we design a welfare reform proposal that truly gives struggling 
families a boost to economic stability. That, Mr. President, means we 
need to address childcare in this bill.
  For the past 5 months I've been participating in a unique program 
called Walk-a-Mile. Some of my colleagues, including Senator Simon, 
have also taken part. Walk-a-Mile started in Washington State as a 
collaborative effort between the University of Washington and the 
Northwest Resource 

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Center for Children, Youth, and Families.
  The program pairs a welfare recipient with an elected official, and 
the two speak frequently on the telephone about each others' 
experiences. I was lucky enough to be paired with June, a single mother 
of two from a Seattle suburb who survived an abusive relationship.
  During her time on welfare, June attended school and earned a degree 
from evergreen State College. Her classroom time was frequently 
interrupted, however, because her 6-year-old son Jonathan suffers from 
attention-deficit disorder, a side effect of the abuse suffered in 
their previous home.
  Since earning her degree, June was divided her time between looking 
for work and looking for childcare. She has been told by six different 
daycare providers that her son could not be cared for, because of his 
explosive and erratic behavior.
  Her dilemma is a familiar one: in the absence of childcare, she 
cannot work; yet she is qualified, and eager, to work today.
  How does this story related to the Dole bill? the pending legislation 
glosses over the childcare question, and leaves demand for childcare 
services unmet.
  In 1994, there were 3,000 children on waiting lists for childcare in 
my State. Nearly 23,000 other kids received childcare services that 
would be eliminated under the Dole bill. That adds up to 26,000 
children for whom childcare is thrown into question under this bill.
  The Dole bill would compel my State to spend $88 million in childcare 
in order to meet its work requirements. At the same time however, we 
stand to lose over $500 million in Federal funding over the same 
period.
  The bill cuts current services; it severely limits Federal funding; 
and forces my State to spend more of its own scarce money. Worse, it 
stands to create an expanded, unaddressed demand for childcare. This is 
a major unfunded mandate, and a major problem for Washington State.
  Mr. President, this is not reform; this is reshuffling the chairs on 
the Titanic.
  If we want to move people into the work force, we should do it. I 
think this is a very worthy and important goal. But we should be 
realistic about what that will take.
  As a preschool teacher, and parent education counselor, I can tell 
you--based on firsthand experience--given the choice between work and 
kids, a parent with limited options will stay on welfare if it's the 
best childcare option, just for the security of her family.
  This is why the Dodd-Kennedy amendment is so important. It addresses 
the need for childcare services, pure and simple.
  It provides resources in a fiscally prudent, credible way through 
direct grants to States with only one purpose: to fund childcare needs 
created by new work requirements. Funding levels would be set according 
to CBO estimates of the childcare demands created by the underlying 
Dole bill.
  What is the purpose of the amendment? It is not to give bureaucrats 
more money; it is not to place more regulations on States; the sole 
purpose is to move parents into the work force.
  I believe this is not only appropriate, but necessary.
  Think back to my Walk-a-Mile partner, June. For people like her, the 
Dodd-Kennedy amendment gives them peace of mind to invest themselves in 
education or training programs that will equip them to move into the 
work force, without worrying about whether their kids will be looked 
after during the day.
  Mr. President, I know what worries parents, and I know what scares 
the kids. I've seen it firsthand, and I've studied it closely over the 
past 3 years.
  We have a unique opportunity to do something concrete for real people 
in this bill. We can build a foundation for families. We can provide 
opportunity for children and their parents.
  Mr. President, 78,000 children in my State live in poverty. Their 
parents struggle every day to make ends meet. How do we know one of 
those kids will not be the next Einstein, or the next Cal Ripken, or 
the next Bill Gates?
  If we do not do our part to create a foundation to care for children 
and provide options for parents, our Nation stands to lose in the long 
run.
  These are the fears of moms and their children. This is why moms get 
trapped in dependency, and why their kids look for their solutions on 
the streets. And unless we do something to remove these fears, we will 
not accomplish reform.
  The Dodd-Kennedy amendment provides that foundation. The Senate must 
adopt this language, or something very close to it, if our reform 
effort is to succeed.
  Mr. President, I urge my colleagues to look carefully at this 
language. It is fiscally smart, and I believe it will help welfare 
parents turn the corner.
  I urge my colleagues to consult with their States. Do the math. Ask 
yourselves what happens to children under the Dole bill, in the absence 
of better childcare provisions.
  Ask yourself whether the work requirements are realistic in the 
absence of strong childcare provisions. If you don't know the answer, 
talk to someone like June, my Walk-a-Mile partner, someone with real 
experience who understands life on the lower half of the economic 
ladder in this country.
  If you do this, I believe you will have no choice but to reach the 
same conclusions I have: Moving welfare recipients into the work force 
can work, but only if we do it right. We simply must address critical 
childcare needs in this bill.
  I yield the floor.
  Mr. KENNEDY. Mr. President, how much time is on each side of this?
  The PRESIDING OFFICER. The Senator from Connecticut has 58 minutes; 
the Senator from Utah has 96 minutes.
  Mr. KENNEDY. Mr. President, I see both the Senator from Connecticut 
and Washington are here. We hoped to have an opportunity to debate this 
important measure with the leadership because it is, I think as I 
mentioned before, the most important amendment, I think, coming on 
welfare.
  We welcome the opportunity to make presentations. The proponent of 
the amendment, Senator Dodd, myself, Senator Murray and others on 
Friday outlined the amendment, and again today. We want to try and have 
a chance to enter into a debate on it.
  Mr. President, I yield myself 4 minutes.
  Mr. President, I ask to have printed in the Record a very excellent 
address on related matters provided as a keynote address to the 25th 
anniversary of the Campaign for Human Development by Cardinal Bernardin 
from Chicago.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

The Story of the Campaign for Human Development: Theological-Historical 
                                 Roots

                      (Joseph Cardinal Bernardin)

       I am delighted to serve as Honorary Chairman of this event 
     and to welcome you to Chicago for the 25th anniversary 
     celebration of the Campaign for Human Development. I thank 
     Bishop Garland and Father Hacala for the kind invitation to 
     speak at this gathering. This is the first address I have 
     undertaken since my illness, so it is indeed good to be here 
     with you!
       It is fitting that we are gathered here because since the 
     beginning, Chicago has been important to the Campaign and the 
     Campaign has been important to Chicago. As you may know, 
     Msgr. George Higgins of this Archdiocese wrote a Labor Day 
     message in 1969 that pointed the way to the Campaign.
       Auxiliary Bishop Michael Dempsey of Chicago was CHD's first 
     spokesperson.
       Msgr. Jack Egan organized the ``Friends of CHD'' in the 
     mid-1970s and for decades has been an inspiration to the 
     Campaign's work.
       The great work of community organizing began in Chicago, 
     and Chicago has many important networks and training centers.
       CHD enjoys a rich tradition of support here, both in the 
     form of active and enthusiastic participation by people in 
     organizations and projects funded by CHD, and in the generous 
     donations to the annual CHD collection. Again this past year, 
     despite many other urgent and worthwhile requests for 
     assistance, Catholics throughout the Archdiocese donated 
     nearly three quarters of a million dollars.
       An anniversary is a good time to reflect on the splendid 
     accomplishments of the past and to look to the significant 
     challenges of the future. This evening, I will highlight 
     CHD's historical and theological roots and share some 
     thoughts on its importance for the future.
       In his labor Day message in 1969, Msgr. George Higgins 
     urged the Catholic Church to make ``a generous portion of its 
     limited resources available for the development and self-
     determination of the poor and powerless.'' A the bishops' 
     meeting that fall, the late Msgr. Geno Baroni continued to 
     lay the groundwork for this initiative by urging the bishops 
     to take up the plight of the poor in a new, significant way.

[[Page S 13175]]

       In response, the bishops resolved (a) to raise $50 million 
     to assist self-help programs designed and operated by the 
     poor and aimed at eliminating the causes of poverty; (b) to 
     educate the more affluent about the root causes of poverty; 
     and (c) to change attitudes about the plight of the poor. The 
     bishops were inspired by Jesus' life and mission, by almost a 
     century of Catholic social teaching, and by Pope Paul VI, who 
     had called for determined efforts to ``break the hellish 
     circle of poverty'' and to ``eradicate the conditions which 
     impose poverty and trap generation after generation in an 
     agonizing cycle of dependency and despair.''
       As General Secretary of the National Conference of Catholic 
     Bishops at the time, I was directly involved in this exciting 
     endeavor. While enthusiasm among the bishops was high, 
     details about how the crusade would be implemented had yet to 
     be developed. As I have often noted, the bishops voted in 
     this collection and left it to me and staff to work out the 
     details! Despite the complexities involved in such an 
     enormous undertaking, I was motivated by my strong belief 
     that the idea behind what would become known as the Campaign 
     for Human Development was ``blessed from the beginning,'' and 
     was eager to get it underway.
       Even though we had to create a program, manage a national 
     collection, and decide how to distribute millions of dollars 
     in grants--all in only a few months--we were determined to 
     make it a success. Thanks to a dedicated staff, and many 
     others, some of whom are with us this evening, the Campaign 
     did get off to a good start. Indeed, the first CHD collection 
     was the most successful national Catholic collection ever 
     taken up in the United States, raising $8 million. And we 
     received a thousand requests for grants!
       The Campaign for Human Development has a threefold mission 
     of empowering the poor, educating people about poverty and 
     justice issues, and building solidarity between the poor and 
     non-poor, it is a remarkable expression of Catholic social 
     teaching. CHD embraces the basic principles of that teaching: 
     the God-given dignity, rights, and responsibilities of the 
     human person; the call to community and participation in that 
     community; the option for, and solidarity with, the poor.
       Chd funds have helped organizations effectively address the 
     larger issues of the community by promoting changes in 
     detrimental laws and policies and by opening lines of 
     communication with government, banking, business, and 
     industry. According to a recent study sponsored by the 
     Catholic University of America, CHD seed
      monies have generated billions of dollars' worth of 
     resources for underprivileged communities. That same study 
     indicates that CHD-funded projects currently benefit in 
     some way fully half of the poor in the United States!
       CHD-funded groups have helped to shape U.S. public policy 
     and improved life for families and communities in many ways. 
     They helped enact legislation to ban redlining, require 
     mortgage information disclosure, and require reinvestment in 
     communities. They helped enact federal standards that 
     virtually eliminated ``brown lung'' disease in the textile 
     industry. They helped pass the Family and Medical Leave Act 
     and strengthen enforcement of child support.
       However, more important than what CHD-funded groups have 
     done is how they have done it. While some political leaders 
     have lately begun to talk about ``empowerment,'' CHD has made 
     empowerment its very reason for existence. CHD has 
     successfully promoted self-determination and participation 
     for countless people.
       One of my joys as Archbishop is meeting individuals who, 
     thanks to CHD, now share more fully in decision-making 
     processes that affect them. For example, just yesterday the 
     following 1995 CHD grants for the Chicago area were announced 
     at a press conference:
       Chicago ACORN received $45,000 to fund the Chicago Parents 
     Organizing Project's efforts to unite parents and young 
     people to improve schools in low-income communities;
       Chicago's Homeless on the Move for Equality received 
     $30,000 to expand its operations to serve better the needs of 
     the homeless in Chicago;
       Illinois Fiesta Educativa of Chicago received $40,000 to 
     fund educational programs and services to Latinos with 
     disabilities; and
       Chicago Metropolitan Sponsors, with which I have been 
     personally involved, received $116,000 to address such social 
     issues as crime, unemployment, and education in Chicago and 
     surrounding suburbs.
       Twenty-five years, nearly $250 million dollars, and 3,000 
     funded projects later, CHD remains a leader in community 
     organizing and education about the impact of poverty, the 
     social structures that perpetuate it, and ways to overcome 
     it. CHD has consistently taught all of us about systemic 
     injustice that limits people's ability to improve their 
     lives. It has also changed attitudes among the poor by 
     fostering self-esteem, self-confidence, and self-reliance, as 
     well as encouraging a sense of hope about being able to 
     address injustice effectively and create a better life for 
     the poor. As CHD's ``25th Anniversary Challenge'' document 
     notes, ``CHD is an unusual combination of religious 
     commitment, street-smart politics, commitment to structural 
     change, and commitment to the development of the poor.''
       Pope John Paul II highlighted CHD's effectiveness when he 
     was in Chicago in 1979, saying, ``The projects assisted by 
     the Campaign have helped to create a more human and just 
     order, and they enable many people to achieve an increased 
     measure of rightful self-reliance.'' In a recent letter to 
     Cardinal Keeler, the President of our Episcopal Conference 
     (for whose presence this evening I am very grateful), the 
     Holy Father echoed similar sentiments of admiration and 
     respect. And in their 1986 pastoral letter, ``Economic 
     Justice for All,'' the U.S. Catholic bishops underscored 
     CHD's efforts, pointing out that: ``Our experience with CHD 
     confirms our judgment about the validity of self-help and 
     empowerment of the poor. The Campaign * * * provides a model 
     that we think sets a high standard for similar efforts.''
       Despite CHD's successes, tragically, poverty is more 
     entrenched today than ever before in our nation's history. 
     Indeed, reducing poverty today is even more daunting than a 
     quarter-century ago because it is often exacerbated by other 
     serious, societal problems that have increased significantly. 
     Out-of-wedlock births, particularly among teens; inadequate 
     housing, health care, education, and job opportunities; lack 
     of community involvement; and most of all, the collapse of 
     family structures--all are undermining our society and making 
     it all the more difficult for people to escape from the grips 
     of poverty. Moreover, senseless violence, rampant crime, drug 
     abuse, and gang warfare dramatically and tragically diminish 
     the quality of life in many communities.
       As a result, our country is even more divided today between 
     the ``haves'' and ``have-nots.'' There is an increased 
     concentration of wealth and political power alongside a 
     growing feeling of powerlessness among many of our citizens. 
     Rapidly developing technology, layoffs, diminishing health 
     benefits and retirement security, and more part-time jobs 
     offering little or no benefits have left the middle-class and 
     working-poor very insecure and growing more resentful toward 
     both government and the non-working poor who depend on 
     society for aid and assistance.
       Building solidarity between the ``haves'' and the ``have-
     nots'' is vital if we are to overcome poverty and the many 
     other problems facing our society. So, even though the 
     challenge of reducing poverty is greater today, the fact that 
     one of CHD's greatest strengths is its ability to bridge the 
     gaps--between the poor and the affluent, the powerful and the 
     powerless, workers and management--will enhance its 
     influence. However, as you and I know very well, it will 
     require much more than ``bridging the gaps.''
       Twenty-five years ago, Msgr. Baroni emphasized this point 
     when he spoke to the U.S. bishops about the urgent need to 
     address poverty, racism, and injustice in our nation. He 
     pointed out that ``something spiritual is lacking--the heart, 
     the will, the desire on the part of affluent America to 
     develop the goals and commitments necessary to end the 
     hardships of poverty and racism in our midst.''
       Today, for example, there appears to be a great desire to 
     address one dimension of poverty, namely, welfare reform. 
     Unfortunately, the debate about such reform seems to spring 
     not so much from an authentic concern for the poor as from 
     pragmatic concerns about the federal budget deficit and 
     taxpayers' pocketbooks. Now the federal budget and taxes are 
     realities that must be dealt with, but they should not be 
     resolved apart from a sincere and objective consideration of 
     the common good of all citizens.
       If we are to solve these problems, then, we must shift the 
     discussion about welfare reform from a merely pragmatic or 
     myopic concern to a more fully humane concern for all. To 
     address poverty realistically and humanely involves more than 
     appealing to people on an intellectual or a political level. 
     It requires calling people to a real conversion of heart for 
     the sake of the common good, which includes the well-being of 
     the poor and needy. It means nurturing a new spirit in the 
     Church and in our nation:
       a new spirit of compassion, generosity, and love for ``the 
     least among us'';
       a new spirit that rejects the vicious rhetoric and the push 
     for punitive measures that is so common today and instead 
     encourages a new, determined approach to addressing the root 
     causes of poverty;
       a new spirit that challenges those who are not poor to 
     disavow stereotypes of the poor and shatter myths that enable 
     people to look down upon the indigent;
       a new spirit that encourages an honest and informed 
     consideration of issues in the light of human values and a 
     moral commitment; and, ultimately;
       a new spirit that trusts in God's grace to transform our 
     hearts and to empower our communities and Church--from sin 
     and evil to love and justice.
       There is no doubt that welfare reform is an urgent national 
     priority. No one should support policies that are wasteful or 
     counter productive, policies that perpetuate poverty and 
     dependence. Rather, such reform should aim to enhance the 
     lives and dignity of poor children and families and enable 
     them to live productive lives. Saving money in the immediate 
     future should not be the only criterion because such short-
     term savings lay the groundwork for greater difficulties and 
     costs in the future. Remember also that welfare funds amount 
     to only 1% of the national budget. Reforms that effectively 
     punish the innocent children of unwed teenage mothers, 
     wittingly or unwittingly promote abortion, or burden states 
     to do more with less resources are not the answer.
       The success of Campaign for Human Development clearly shows 
     that combining personal responsibility and social 
     responsibility is a potent catalyst for change, renewal, 
     success, and hope for the future. Now is the 

[[Page S 13176]]
     time to demand a halt to the political rhetoric and posturing, which 
     are fueled by individual interests and those of special 
     interest groups. Now is the time for creative solutions and 
     bold strategies that invest in human dignity and potential 
     rather than scapegoat and punish the poor, further 
     exacerbating the already dire situations many poor people 
     face today. We know that true reform will not be easy, but we 
     also know that poor people, with the right kind of assistance 
     and opportunities, can make a better life for themselves and 
     can contribute to the common good.
       So, this evening, this weekend, and as we return home, let 
     us renew our commitment to economic and social justice for 
     all by continuing to engage people in their faith life and by 
     encouraging them to put their faith into action. It we do, we 
     can and will make a difference. I am convinced that CHD 
     harbors a vast reservoir of untapped potential.
       In a speech to students in South Africa, the late Senator 
     Robert Kennedy, said, ``Each time a man stands up for an 
     ideal or acts to improve the lot of others or strikes out 
     against injustice, he sends forth a tiny ripple of hope, and 
     crossing each other from a million different centers of 
     energy and daring, those ripples build a current that can 
     sweep down the mightiest walls of oppression and 
     resistance.'' (Senator Kennedy's widow, Ethel, is featured in 
     CHD's current radio ads, and his daughter, Kerry, now serves 
     on the USCC/CHD Committee.)
       The Campaign for Human Development began as a ripple and 
     has become a current cascading through lives and 
     communities--bringing new opportunity in its wake. It is a 
     sign of hope for the poor and for all Americans who seek 
     justice. You, my friends, help to make that hope possible!
       My dear sisters and brothers, let us thank God for the 
     grace of the past quarter of a century. Let us also open 
     ourselves to the inspiration and strength of the Holy Spirit 
     so that we will be able to: change hearts; face the 
     challenges and opportunities of the future; and nurture a new 
     spirit of compassion and solidarity with the most vulnerable 
     members of our society.
       May God who has begun a good work among us bring it to 
     fulfillment.

  Mr. KENNEDY. Mr. President, let me quote from a few paragraphs of 
Cardinal Bernardin in his excellent address on August 25. ``Today, for 
example, there appears to be a great desire to address one 
dimension''--he talks in the early part of the speech about the 
problems of poverty and welfare and the importance to eradicate, to 
break the hellish circles of poverty is to eradicate the conditions 
which impose poverty and trap generation after generation in an 
agonizing circle of dependency and despair. He could be talking about 
the whole welfare issue we are addressing here today.

       Today, for example, there appears to be a great desire to 
     address one dimension of poverty, namely, welfare reform. 
     Unfortunately, the debate about such reforms seems to spring 
     not so much from authentic concern for the poor, as from 
     pragmatic concern about the Federal budget deficit and 
     taxpayers' pocketbooks. Now, the Federal budget and taxes are 
     realities that must be dealt with, but they should not be 
     resolved apart from a sincere and objective consideration of 
     the common good of all citizens.
       If we are to solve these problems, then, we must shift the 
     discussion about welfare reform from a merely pragmatic and 
     myopic concern to a more fully humane concern for all. To 
     address poverty realistically and humanely involves more than 
     appealing to people on an intellectual or political level. It 
     requires calling people to a real conversion of heart for the 
     sake of the common good, which includes the well-being of the 
     poor and the needy.

  He continues:

       There is no doubt that welfare reform is an urgent national 
     priority. No one should support policies that are wasteful or 
     counterproductive, policies that perpetuate poverty and 
     dependence. Rather, such reform should aim to enhance the 
     lives and dignity of poor children and families and enable 
     them to live productive lives. Saving money in the immediate 
     future should not be the only criterion because such short-
     term savings lay the groundwork for greater difficulties and 
     costs in the future. Remember also that welfare funds amount 
     to only 1 percent of the national budget. Reforms that 
     effectively punish the innocent children of unwed teenage 
     mothers, wittingly or unwittingly, promote abortion or burden 
     States to do more with less resources are not the answer.

  He then continues:
       The success of Campaign for Human Development clearly shows 
     that combining personal responsibility and social 
     responsibility is a potent catalyst for change, renewal, 
     success, and hope for the future. Now is the time to demand a 
     halt to the political rhetoric and posturing, which are 
     fueled by individual interests and those of special interest 
     groups. Now is the time for creative solutions and bold 
     strategies that invest in human dignity and potential rather 
     than scapegoat and punish the poor, further exacerbating the 
     already dire situations many poor people face today. We know 
     that true reform will not be easy, but we also know that poor 
     people, with the right kind of assistance and opportunities, 
     can make a better life for themselves and can contribute to 
     the common good.

  The excellent address goes on.
  Mr. President, I daresay I would like to believe, although obviously 
the Cardinal was not focusing on this amendment, that is really what 
this amendment is all about, investing in people; in the human dignity 
of, in this instance, needy children. He states it, I think, in a very 
eloquent, uplifting and inspiring way. But it seems to me it is right 
on target for this debate.
  Mr. President, I will withhold the remainder of our time. We have a 
number of speakers who will be coming to the floor.
  I suggest the absence of a quorum, with the time to be evenly 
divided.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. BREAUX. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. BREAUX. Mr. President, I ask the distinguished manager of the 
amendment to yield to me 10 minutes.
  Mr. KENNEDY. I yield 10 minutes to the Senator from Louisiana.
  The PRESIDING OFFICER. The Senator from Louisiana is recognized.
  Mr. BREAUX. I thank the Senator for yielding.
  Mr. President and my colleagues, I take the floor to make comments in 
support of the Dodd-Kennedy amendment that is currently pending to the 
welfare reform bill. I do so with great enthusiasm because, like any 
effort, unless you have all the parts together you cannot accomplish 
the ultimate goal. In welfare reform there are a number of significant 
things that have to be done in order to pass a true reform bill. 
Congress cannot come on the floor, obviously, and pass a resolution 
that says welfare will be over with by the year 2000 and do nothing 
else. Any legislative effort that attacks this tremendous problem that 
we are facing as a Nation has to be composed of a number of significant 
measures in order to bring these measures together to accomplish real 
reform. It is not easy. It is not going to be cheap. But it is 
absolutely essential that we do it.
  One of the things that we as Democrats, and I think Republicans as 
well, agree on is that the welfare system as we know it today does not 
work very well for those who are on it, nor does it work very well for 
those who are paying for it. The system has generated generation after 
generation of people who are dependent on government help in order to 
survive. We in this Congress I think have an obligation to try to come 
up with a real reform bill that breaks that cycle. It is not going to 
be easy. I think it has to be bipartisan. We have to have our 
Republican colleagues join us when we have a good idea and I am willing 
to join them when they have a good idea. We do not have enough votes by 
ourselves to pass a welfare reform bill. We simply do not have a 
majority any longer. But I would suggest that they alone do not have 
enough votes to pass a bill that will be signed into law by this 
President unless we too are involved in helping to craft a measure that 
makes sense.
  Some have argued that the Federal Government and the States have been 
trying to solve the welfare problem for years and it has not brought 
about any real solution. Therefore, we are just going to give the whole 
mess to the States and let the States handle it because they are more 
inventive and have better ideas about how to solve the problem. I would 
suggest that approach is simply too simplistic and it is not going to 
work.
  This problem is big enough for both the Federal Government and the 
State governments working together to try to help solve this immense 
problem. I would suggest that State and local governments cannot solve 
it by themselves, and I would also suggest that the Federal Government 
cannot solve it by itself. Therefore, real reform has to be a coming 
together of the best ideas from the States and the Federal Government 
working together to provide money both from the State level and the 
Federal level in order to try to create sufficient funds to bring about 
real reform. 

[[Page S 13177]]

  There are those who suggest that, no, that is not the answer. We are 
just going to send all of the problems to the States and let them solve 
it. I have said that type of an approach is sort of like those of us in 
Washington putting all the problems of welfare into a big box and 
mailing it off to the States and say, ``Here. It is yours. You solve 
it.'' That is the block grant approach. When those State 
representatives and State officials open that box they are going to 
find a lot of problems. They are not going to find enough money to help 
them solve those problems. Therefore, it is absolutely essential, in my 
opinion, that we forge a joint venture, a partnership with the States 
and the Federal Government, to help bring about the best ideas and the 
best solutions to this problem working in partnership.
  The Federal Government should absolutely have to contribute money 
from the tax base that we have access to to help generate sufficient 
funds to solve the problems. But the States also have to participate.
  There are some who would suggest that the States should have no 
maintenance of effort at all. The Federal Government will pay the whole 
bill. But we will let the States get off without having to contribute 
anything. I think that is the wrong approach.
  Tomorrow, myself and others will be joining together to offer an 
amendment dealing with State maintenance of effort, to give the States 
an incentive to match Federal money to try to create a program that 
makes sense. I am absolutely convinced that if State officials, no 
matter how good and honest they are, know all the money in the program 
is going to be from Washington, they are less inclined to make the 
right decisions, to spend the money wisely, if they do not have to put 
up any of their own State dollars. Therefore, I think we have to urge 
them to participate, to maintain most of the effort they have made in 
the past and to join with us in a partnership arrangement to in fact 
solve this problem.
  Let me talk specifically just for a moment about the Dodd-Kennedy 
amendment. I do not think that there is a social scientist or a 
housewife or an individual in this country, no matter what their 
profession, who can look at the welfare problem in this country and say 
that we can solve it without addressing the problem of child care. We 
cannot solve welfare problems in this country just by passing a law 
that says all mothers should go to work and do nothing about the 
mothers who have small children at home, maybe 1 or 2 or 3 years old. 
We cannot pretend that if they have to go to work without something 
being done to help them with their child care, that is a real solution 
to welfare. In fact, that is not only not a solution, it in fact is a 
greater problem than we have right now. The Republican proposal 
requires--as does ours--that by the year 2000, 50 percent of the people 
who are now on welfare have to be in work. The Republican proposal and 
the Democratic proposal are the same essentially on that issue. The 
difference is how we get people to that point. The Republican proposal 
does not provide any additional financial assistance to pay for child 
care. That is the real defect in that approach.
  Our legislation, on the other hand, provides $9.5 billion in new 
funds over the next 7 years--which is more than paid for through 
spending cuts--to provide child care so people can go to work and we 
can have true reform.
  If the Republican proposal is adopted without the Dodd-Kennedy 
amendment, we are passing the largest unfunded mandate on to the States 
in the history of this country. We would do this at a time when the ink 
is not yet dry on the unfunded mandate legislation that so many people 
took so much credit for adopting--which recently this Congress passed 
and we sent to the President--saying that we are not going to pass an 
unfunded mandate on to the backs of the States any longer. But this 
bill without the Dodd-Kennedy amendment is, in fact, a huge unfunded 
mandate because it tells the States, Louisiana, or Massachusetts, or 
Utah, or any State in the Union, that they have to pay for the child 
care to put half of the people on welfare to work by the year 2000.
 But they are not going to be able to reach that goal without raising 
an incredible amount of State taxes in order to pay for the child care.

  I suggest that we ought to provide child care in partnership, the 
Federal Government and the States, and that is exactly what the Dodd-
Kennedy amendment does.
  Over the next 5 years, Health and Human Services says that about $11 
billion would be needed to meet the child care requirements of the Dole 
bill. The Dodd-Kennedy amendment provides those funds. The Republican 
bill does not provide those funds.
  I heard some suggest that the States will have more money because we 
will eliminate some of the red tape. How many times have we heard the 
argument that if you eliminate red tape, we will solve all the problems 
of Government? I have heard it time after time in the years that I have 
been in the Congress, both in this body and the other body that, well, 
if you eliminate red tape, the States would have enough money to do 
everything they have to do. That is a ridiculous notion. It is not 
true, and it is not factual.
  This reform is going to cost us money in order to achieve the long-
term results. I should point out that the long-term result will be 
financially beneficial to society. It will be beneficial to 
individuals. It will make them more responsible citizens, and it will 
teach them that there is no free lunch; that people have to work in 
order to be able to be successful in this country.
  But again, it has to be a partnership. I know that my State of 
Louisiana cannot come up with the necessary funds to meet that 50-
percent-work requirement in the year 2000. We are suffering, as many 
States are, from the lack of adequate funding for roads and hospitals 
and health care needs and all of the other needs that a State has to 
address.
  I suggest that child care is not a high priority among the people who 
get paid to lobby around State legislative bodies. Therefore, unless we 
require some type of a financial partnership to help provide for child 
care for mothers who are going to be required to go to work, those 
moneys will not be provided at the State and local level.
  The General Accounting Office recently released a research study 
which provided evidence of what I am saying I think in a very 
commonsense way. Their study, entitled Child Care Subsidies Increase 
the Likelihood That Low-Income Mothers Will Work, finds that among the 
factors which encourage low-income mothers to work, in fact, child care 
affordability is one of the decisive ones.
  I think we should listen to the General Accounting Office, which 
certainly is a bipartisan and nonpolitical organization, and their 
recommendation that we simply cannot have real reform in welfare, that 
we will not be able to get mothers who have small children to go to 
work, unless there is an answer to the very difficult child care 
problem. I have occasion from time to time in my State of Louisiana to 
visit welfare offices, to talk with groups that are trying to reform 
the welfare system, and great progress is being made, but in every one 
of these institutions, in every one of the talks I have been able to 
engage in, availability of child care was raised as such an important 
ingredient in the solution to this particular problem.
  Unless Congress acts in a forceful and affirmative way to guarantee 
child care funding will be available, I suggest that no matter how 
laudatory the other provisions of the bill happen to be, it will truly 
not be reform. What it will be is a major unfunded mandate on the backs 
of the States.
  I do not think we can find a Governor who is going to say they want 
to have to put 50 percent of the people to work without any help from 
the Federal Government. This is an absolutely essential, critical 
amendment. Without it, the bill I think will be fundamentally flawed 
and one that should not be signed into law.
  If we are going to do real reform, we have to recognize our 
responsibility in participating as a Federal Government along with the 
States and local governments to build the necessary funds to bring 
about a real reform bill.
  I congratulate Senators Dodd and Kennedy and all others who have 
joined with them in helping to craft this amendment. They have worked 
long and hard and tirelessly over the years to see to it that adequate 
child care is part of any reform package that 

[[Page S 13178]]
we will consider in this Congress. Without it, this bill will not be 
reform. It will be highly destructive and should not be signed. With 
it, it will go a long way to fundamental bipartisan reform legislation 
to which President Clinton should proudly affix his signature.
  Mr. President, I yield the floor.
  Mr. KENNEDY. Mr. President, how much time now remains on this side?
  The PRESIDING OFFICER. Thirty-five minutes.
  Mr. KENNEDY. For the proponents.
  And how much for the other side?
  The PRESIDING OFFICER. And 91 minutes for the opponents.
  Mr. KENNEDY. Mr. President, I yield myself 5 minutes.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________