SOCIAL SECURITY ACT-TITLE IV-GRANTS TO STATES FOR AID AND SERVICES TO
NEEDY FAMILIES WITH CHILDREN AND FOR CHILD-WELFARE SERVICES
1/Title IV of the Social Security Act is administered by the
Department of Health and Human Services (formerly Department of Health,
Education, and Welfare). The Office of Family Assistance administers benefit
payments under Title IV, Parts A and C. The Administration for Public
Services, Office of Human Development Services, administers social services
under Title IV, Parts B and E. The Office of Child Support Enforcement
administers the child support program under Title IV, Part D.
Title IV appears in the United States Code as subchapter IV, chapter 7, Title 42.
Regulations of the Secretary of Health and Human Services relating to Title
IV are contained in chapters II, III, and XIII, Title 45, Code of Federal
Regulations. Regulations of the Secretary of Labor relating to Title IV are
contained in subtitle A, Title 29, and chapter 29, Title 41, Code of Federal
Regulations.
See Vol. II, 31 U.S.C. 3720 and 3720A with respect to collection of payments
due to Federal agencies.
See Vol II, 31 U.S.C. 6504-6505 with respect to intergovernmental cooperation.
See Vol. II, 31 U.S.C. 7501-7507 with respect to uniform audit requirements for
State and local governments receiving Federal financial assistance.
See Vol. II, P.L. 82-183, ""Revenue Act of 1951'', 618, for the ""Jenner Amendment''
which prohibits denial of grants-in-aid under certain conditions.
See Vol. II, P.L. 88-352, ""Civil Rights Act of 1964'', 601, for prohibition
against discrimination in federally assisted programs.
See Vol. II, P.L. 89-73, ""Older Americans Act of 1965'', 213, with respect
to eligibility for Federal surplus property.
See Vol. II, P.L. 89-97, ""Social Security Amendments of 1965'', 121(b),
with respect to restrictions on payment to a State receiving payments
under Title XIX.
See Vol. II, P.L. 93-247, ""Child Abuse Prevention and Treatment Act'',
4(b)(3) and 7, with respect to coordination between programs
related to child abuse and neglect.
See Vol. II, P.L. 94-241, [Covenant to Establish Northern Mariana Islands],
1, for 502(a)(1) of H.J. Res. 549, with respect to
participation by the Commonwealth of the Northern Mariana Islands on the
same basis as Guam.
See Vol. II, P.L. 97-300, ""Job Training Partnership Act'', 106(e)(2), with
respect to performance standards; 202(b)(3)(B), with respect to
governors' incentive grants; and 501-505, with respect to
the payment of a bonus for the successful job placement of certain
employable dependent individuals.
See Vol. II, P.L. 98-378, ""Child Support Enforcement Amendments of 1984'',
number 23, with respect to the sense of the Congress that State and
local governments should focus on the problems of child custody, child
support, and related domestic issues.
See Vol. II, P.L. 99-570, 11005(d), with respect to treatment of homeless
individuals eligible under SSI and Medicaid programs.
See Vol. II, P.L. 100-203, ""Omnibus Budget Reconciliation Act of 1987'',
9118, with respect to homeless AFDC families; 9121, with
respect to a demonstration project to test the operation of Washington
State's Family Independence Program; 9122, with respect to a
demonstration project to test a New York State program; and 9138, with
respect to a study of infants and children with AIDS in foster care (which
the Secretary shall conduct).
See Vol. II, P.L. 100-204, 724(d), with respect to furnishing information to
the United States Commission on Improving the Effectiveness of the United
Nations; and 725(b), with respect to the detailing of Government
personnel.
See Vol. II, P.L. 100-235, 5-8, with respect to responsibilities of each
Federal agency for computer systems security and privacy.
See Vol. II, P.L. 100-485, 126, with respect to a Commission on interstate
child support; 128, with respect to a study of child-rearing costs;
302(e), with respect to a study on effects of extending eligibility for
child care; 406, with respect to a study of new national approaches to
welfare benefits for low-income families with children; 501, with respect
to family support demonstration projects; 502, with respect to
demonstration projects to encourage States to employ parents receiving
AFDC as paid child care providers; 504, with respect to demonstration
projects to address child access problems; 505, with respect to
demonstration projects to expand the number of job opportunities
available to certain low-income individuals; 506, with respect to
demonstration projects to provide counseling and services to high-risk
teenagers; and 608(e), with respect to the extension of a pilot program.
See Vol. II, P.L. 100-690, 5301(a)(1)(C) and (d)(1)(B), with respect to
benefits of drug traffickers and possessors.
See Vol. II, P.L. 101-239, 8015, with respect to demonstration of effectiveness
of Minnesota family investment plan; 10404, with respect to a demonstration
project using volunteer senior aides to provide medical assistance and
support to families with disabled or ill children, 10406, with respect to
treatment of triennial reviews of State foster care protections for
fiscal years before October 1, 1990.
See Vol. II, P.L. 101-166, 204, with respect to abortions.
See Vol. II, P.L. 101-508, 13301 and 13302, with respect to the OASDI Trust
Funds.
TABLE OF CONTENTS OF TITLE
2/This table of contents does not appear in the law.
Part A-Aid to Families With Dependent Children
Page
Sec. 401. Appropriation........................................... 252
Sec. 402. State plans for aid and services to needy families with
children.............................................. 252
Sec. 403. Payment to States....................................... 278
Sec. 404. Operation of State plans................................ 288
Sec. 405. Use of payments for benefit of child.................... 289
Sec. 406. Definitions............................................. 289
Sec. 407. Dependent children of unemployed parents................ 293
Sec. 408. AFDC quality control system............................. 298
Sec. 409. Exclusion from AFDC unit of child for whom Federal, State
or local foster care maintenance of adoption assistance
payments are made ...................................... 305
Sec. 410. Food stamp distribution................................. 306
[Sec. 411. Repealed.].............................................. 306
Sec. 412. Prorating shelter allowance of AFDC family living with
another household........................................ 306
Sec. 413. Technical assistance for developing management informa-
tion systems............................................. 306
[Sec. 414. Repealed.].............................................. 306
Sec. 415. Attribution of sponsor's income and resources to alien.. 306
Sec. 416. Fraud control........................................... 309
Sec. 417. Assistant Secretary for Family Support.................. 310
Part B-Child Welfare Services
Sec. 420. Appropriation........................................... 310
Sec. 421. Allotments to States.................................... 310
Sec. 422. State plans for child welfare services.................. 311
Sec. 423. Payment to States....................................... 312
Sec. 424. Reallotment............................................. 313
Sec. 425. Definitions............................................. 313
Sec. 426. Research, training, or demonstration projects........... 314
Sec. 427. Foster care protection required for additional Federal
payments................................................ 316
Sec. 428. Payments to Indian tribal organizations................. 317
[Part C - 430-445. Repealed.]
Part D-Child Support and Establishment of
Paternity
Sec. 451. Appropriation........................................... 317
Sec. 452. Duties of the Secretary................................. 318
Sec. 453. Parent Locator Service.................................. 323
Sec. 454. State plan for child and spousal support................ 325
Sec. 455. Payments to States...................................... 330
Sec. 456. Support obligations..................................... 332
Sec. 457. Distribution of proceeds................................ 333
Sec. 458. Incentive payments to States............................ 335
Sec. 459. Consent by the United States to garnishment and similar
proceedings for enforcement of child support and
alimony obligations..................................... 337
Sec. 460. Civil actions to enforce support obligations............ 338
Sec. 461. Regulations pertaining to garnishments.................. 338
Sec. 462. Definitions............................................. 339
Sec. 463. Use of Federal Parent Locator Service in connection with
the enforcement or determination of child custody and
in cases of parental kidnaping of a child............... 341
Sec. 464. Collection of past-due support from Federal tax refunds. 342
Sec. 465. Allotments from pay for child and spousal support owed
by members of the uniformed services on active duty..... 345
Sec. 466. Requirement of statutorily prescribed procedures to
improve effectiveness of child support enforcement...... 346
Sec. 467. State guidelines for child support awards............... 353
Sec. 468. Encouragement of States to adopt simple civil process
for voluntarily acknowledging paternity and a civil
procedure for establishing paternity in contested
cases................................................... 354
Sec. 469. Collection and reporting of child support enforcement
data.................................................... 354
Part E-Federal Payments for Foster Care and Adoption
Assistance
Sec. 470. Purpose: appropriation.................................. 354
Sec. 471. State plan for foster care and adoption assistance...... 355
Sec. 472. Foster care maintenance payments program................ 357
Sec. 473. Adoption assistance program............................. 360
Sec. 474. Payments to States; allotments to States................ 362
Sec. 475. Definitions............................................. 368
Sec. 476. Technical assistance; data collection and evaluation.... 370
Sec. 477. Independent living initiatives.......................... 371
[Sec. 478. Repealed]............................................... 374
Sec. 479. Collection of data relating to adoption and foster care. 374
Part F-Job Opportunities and Basic Skills Training Program
Sec. 481. Purpose and definitions................................... 376
a) Purpose................................................... 376
b) Meaning of terms.......................................... 376
Sec. 482. Establishment and operation of State programs............. 376
a) State plans for job opportunities and basic skills
training programs......................................... 376
b) Assessment and review of needs and skills of participants;
employability plan........................................ 377
c) Provision of program and employment information........... 378
d) Services and activities under the program................. 378
e) Work supplementation program.............................. 379
f) Community work experience program......................... 382
g) Job search program........................................ 383
h) Dispute resolution procedures............................. 384
i) Special provisions relating to Indian tribes.............. 384
Sec. 483. Coordination requirements................................. 386
Sec. 484. Provisions generally applicable to provision of services.. 387
Sec. 485. Contract authority........................................ 388
Sec. 486. Initial State evaluations................................. 388
Sec. 487. Performance standards..................................... 389
Part A-Aid to Families With Dependent Children
APPROPRIATION
Section 401 . [42 U.S.C. 601] For the purpose of encouraging the care of
dependent children in their own homes or in the homes of relatives by
enabling each State to furnish financial assistance and rehabilitation and
other services, as far as practicable under the conditions in such State,
to needy dependent children and the parents or relatives with whom they are
living to help maintain and strengthen family life and to help such parents
or relatives to attain or retain capability for the maximum self-support
and personal independence consistent with the maintenance of continuing
parental care and protection, there is hereby authorized to be appropriated
for each fiscal year a sum sufficient to carry out the purposes of this
part. The sums made available under this section shall be used for making
payments to States which have submitted, and had approved by the Secretary,
State plans for aid and services to needy families with children.
STATE PLANS FOR AID AND SERVICES TO NEEDY FAMILIES WITH CHILDREN
Sec. 402 . [42 U.S.C. 602] (a) A State plan for aid and services to needy
families with children must-
(1) provide that it shall be in effect in all political subdivisions of
the State, and, if administered by them, be mandatory upon them;
(2) provide for financial participation by the State;
(3) either provide for the establishment or designation of a single
State agency to administer the plan, or provide for the establishment or
designation of a single State agency to supervise the administration of the
plan;
(4) provide for granting an opportunity for a fair hearing before the
State agency to any individual whose claim for aid to families with
dependent children is denied or is not acted upon with reasonable
promptness;
(5) provide such methods of administration (including after January 1,
1940, methods relating to the establishment and maintenance of personnel
standards on a merit basis, except that the Secretary shall exercise no
authority with respect to the selection, tenure of office, and compensation
of any individual employed in accordance with such methods) as are found by
the Secretary to be necessary for the proper and efficient operation of the
plan;
(6) provide that the State agency will make such reports, in such form
and containing such information, as the Secretary may from time to time
require, and comply with such provisions as the Secretary may from time to
time find necessary to assure the correctness and verification of such
reports;
(7) except as may be otherwise provided in paragraph (8) or (31) and
section 415, provide that the State agency-
(A) shall, in determining need, take into consideration any other
income and resources of any child or relative claiming aid to families with
dependent children, or of any other individual (living in the same home as
such child and relative) whose needs the State determines
should be considered in determining the need of the child or relative
claiming such aid;
(B) shall determine ineligible for aid any family the combined value
of whose resources (reduced by any obligations or debts with respect to
such resources) exceeds $1,000 or such lower amount as the State may
determine, but not including as a resource for purposes of this
subparagraph 4
(i) a home owned and occupied by such child, relative, or other
individual and so much of the family member's ownership interest in one
automobile as does not exceed such amount as the Secretary may
prescribe,
(ii) under regulations prescribed by the Secretary, burial plots (one
for each such child, relative, and other individual), and funeral
agreements or
(iii) for such period or periods of time as the Secretary may prescribe,
real property which the family is making a good-faith effort to dispose
of, but any aid payable to the family for any such period shall be
conditioned upon such disposal, and any payments of such aid for that
period shall (at the time of the disposal) be considered overpayments to
the extent that they would not have been made had the disposal occurred
at the beginning of the period for which the payments of such aid were
made; and
(C) may, in the case of a family claiming or receiving aid under this
part for any month, take into consideration as income (to the extent the
State determines appropriate, as specified in such plan,
and notwithstanding any other provision of law)-
(i) an amount not to exceed the value of the family's monthly
allotment of food stamp coupons, to the extent such value duplicates the
amount for food included in the maximum amount that would be payable under
the State plan to a family of the same composition with no other income;
and
(ii) an amount not to exceed the value of any rent or housing
subsidy provided to such family, to the extent such value
duplicates the amount for housing included in the maximum amount
that would be payable under the State plan to a family of the same
composition with no other income; 5
(8) (A) provide that, with respect to any month, in making the
determination under paragraph (7), the State agency-
(i) shall disregard all of the earned income of each dependent child
receiving aid to families with dependent children who is (as determined by
the State in accordance with standards prescribed by the
Secretary) a full-time student or a part-time student who is not a
full-time employee attending a school, college, or university, or a
course of vocational or technical training designed to fit him for
gainful employment;
(ii) shall disregard from the earned income of any child or relative
applying for or receiving aid to families with dependent children, or of
any other individual (living in the same home as such relative and child)
whose needs are taken into account in making such determination, the
first $90 6 of the total of such earned income for such month;
(iii) after applying the other clauses of this subparagraph, 7
shall disregard from the earned income of any child, relative, or other
individual specified in clause (ii), an amount equal to expenditures for
care in such month for a dependent child, or an incapacitated individual
living in the same home as the dependent child, receiving aid to families
with dependent children and requiring such care for such month, to the
extent that such amount (for each such dependent child or incapacitated
individual) does not exceed $175 8 (or such lesser amount as the Secretary
may prescribe in the case of an individual not engaged in full-time
employment or not employed throughout the month), or, in the case such
child is under age 2, $200 9
(iv) shall disregard from the earned income of any child or relative
receiving aid to families with dependent children, or of any other
individual (living in the same home as such relative and child)whose needs
are taken into account in making such determination, an amount
equal to (I) the first $30 of the total of such earned income not
disregarded under any other clause of this subparagraph plus(II)one-third
of the remainder thereof 10 (v)may disregard the income of any dependent
child applying for or receiving aid to families with dependent children
which is derived from a program carried out under the Job Training
Partnership Act 11 (as originally enacted) 12 but only in such amounts, and
for such period of time (not to exceed six months with respect to earned
income) as the Secretary may provide in regulations;
(vi) shall disregard the first $50 of any child support payments for such
month received in that month, and the first $50 of child support
payments for each prior month received in that month if such payments were
made by the absent parent in the month when due, with respect to the
dependent child or children in any family applying for or receiving aid to
families with dependent children (including support payments collected and
paid to the family under section 457(b));
(vii) may disregard all or any part of the earned income of a dependent
child who is a full-time student and who is applying for aid to families
with dependent children, but only if the earned income of such child is
excluded for such month in determining the family's total income under
paragraph (18); and
(viii)shall disregard any refund of Federal income taxes made to a family
receiving aid to families with dependent children by reason of
section 32 of the Internal Revenue Code of 1986 (relating to earned income
tax credit) and any payment made to such a family by an employer under
section 3507 of such Code (relating to advance payment of earned income
credit); and 13
(B) provide that (with respect to any month) the State agency-
(i) shall not disregard, under clause (ii), (iii), or (iv) of
subparagraph (A), any earned income of any one of the persons specified in
subparagraph (A)(ii) if such person-
(I) terminated his employment or reduced his earned income without good
cause within such period (of not less than thirty days) preceding such
month as may be prescribed by the Secretary;
(II) refused without good cause, with in such period preceding such month
as may be prescribed by the Secretary, to accept employment in which he is
able to engage which is offered through the public employment offices of
the State, or is otherwise offered by an employer if the offer of such
employer is determined by the State or local agency administering the State
plan, after notification by the employer, to be a bona fide offer of
employment; or
(III) failed without good cause to make a timely report (as prescribed by
the State plan pursuant to paragraph (14)) to the State agency of earned
income received in such month; and
(ii)(I) shall not disregard-
(a) under subclause (II) of subparagraph(A)(iv), in a case where such
subclause has already been applied to the income of the persons involved
for four consecutive months while they were receiving aid under the plan,
or
(b) under subclause (I) of subparagraph (A)(iv), in a case where such
subclause has already been applied to the income of the persons involved
for twelve consecutive months while they were receiving aid under the plan,
any earned income of any of the persons specified in subparagraph (A)(ii),
if, with respect to such month, the income of the persons so specified was
in excess of their need, as determined by the State agency pursuant to
paragraph(7) (without regard to subparagraph (A)(iv) of this paragraph),
unless the persons received aid under the plan in one or more of the four
months preceding such month; and
(II) in the case of the earned income of a person with respect to whom
subparagraph(A)(iv) has been applied for four consecutive months, shall not
apply the provisions of subclause(II) of such subparagraph to any month
after such month, or apply the provisions of subclause (I) of such
subparagraph to any month after the eighth month following such month, for
so long as he continues to receive aid under the plan, and shall not apply
the provisions of either such subclause to any month thereafter until the
expiration of an additional period of twelve consecutive months during
which he is not a recipient of such aid; and (C) provide that in
implementing this paragraph the term ""earned income'' shall mean gross
earned income, prior to any deductions for taxes or for any other purposes;
(9) provide safeguards which restrict the use or disclosure of information
concerning applicants or recipients to purposes directly connected with (A)
the administration of the plan of the State approved under this part
(including activities under part F) 14 the plan or program of the State
under part B 15, D or E 16 of this title or under title I, X, XIV, XVI, XIX,
or XX, or the supplemental security income program established by title
XVI,(B) any investigation, prosecution, or criminal or civil proceeding,
conducted in connection with the administration of any such plan or
program, (C) the administration of any other Federal or federally assisted
program which provides assistance, in cash or in kind, or services,
directly to individuals on the basis of need, 17 and (D) any audit or
similar activity conducted in connection with the administration of any
such plan or program by any governmental entity which is authorized by law
to conduct such audit or activity, and (E) reporting and providing
information pursuant to paragraph (16) to appropriate authorities with
respect to known or suspected child abuse or neglect 18; and the safeguards
so provided shall prohibit disclosure, to any committee or legislative body
(other than an entity referred to in clause (D) with respect to an activity
referred to in such clause), of any information which identifies by name or
address any such applicant or recipient; but such safeguards shall not
prevent the State agency or the local agency responsible for the
administration of the State plan in the locality (whether or not the State
has enacted legislation allowing public access to Federal welfare records)
from furnishing a State or local law enforcement officer, upon his request,
with the current address of any recipient if the officer furnishes the
agency with such recipient's name and social security account number and
satisfactorily demonstrates that such recipient is a fugitive felon, that
the location or apprehension of such felon is within the officer's official
duties, and that the request is made in the proper exercise of those
duties; 19
(10)(A) provide that all individuals wishing to make application for aid to
families with dependent children shall have opportunity to do so, and that
aid to families with dependent children shall, subject to paragraphs (25)
and (26), be furnished with reasonable promptness to all eligible
individuals; and
(B) provide that an application for aid under the plan will be effective no
earlier than the date such application is filed with the State agency or
local agency responsible for the administration of the State plan,and the
amount payable for the month in which the application becomes effective, if
such application becomes effective after the first day of such month, shall
bear the same ratio to the amount which would be payable if the application
had been effective on the first day of such month as the number of days in
the month including and following the effective date of the application
bears to the total number of days in such month;
(11) provide for prompt notice (including the transmittal of all relevant
information) to the State child support collection agency (established
pursuant to part D of this title) of the furnishing of aid to families with
dependent children with respect to a child who has been deserted or
abandoned by a parent (including a child born out of wedlock without regard
to whether the paternity of such child has been established);
(12) provide, effective October 1, 1950, that no aid will be furnished any
individual under the plan with respect to any period with respect to which
he is receiving old-age assistance under the State plan approved under
section 2 of this Act;
(13) with respect to families who are required to report monthly to the
State agency pursuant to paragraph (14) (and at the option of the State
with respect to other families), provide that-20
(A) except as provided in subparagraph (B), the State agency (i) will
determine a family's eligibility for aid for a month on the basis of the
family's income, composition, resources, and other similar relevant
circumstances during such month, and (ii) will determine the amount of
such aid on the basis of the income and other relevant circumstances in
the first or, at the option of the State (but only where the Secretary
determines it to be appropriate, in the case of families who are
required to report monthly to the State agency pursuant to paragraph
(14)), second month preceding such month; and
(B) in the case of the first month, or at the option of the State (but
only where the Secretary determines it to be appropriate, in the case of
families who are required to report monthly to the State agency pursuant
to paragraph (14)), the first and second months, in a period of
consecutive months for which aid is payable, the State agency will
determine the amount of aid on the basis of the family's income and
other relevant circumstances in such first or second month;
(14) with respect to families in the category of recent work history or
earned income cases (and at the option of the State with respect to
families in other categories), (A) 21 provide that the State agency will
require each family to which it furnishes aid to families with dependent
children (or to which it would provide such aid but for paragraph (22) or
(32))to report, as a condition to the continued receipt of such aid (or to
continuing to be deemed to be a recipient of such aid), each month to the
State agency on-
(i) the income received, family composition, and other relevant
circumstances during the prior month; and
(ii) the income and resources it expects to receive, or any changes in
circumstances affecting continued eligibility or benefit amount, that it
expects to occur, in that month (or in future months);
except that 22 the State may select categories of recipients who may report
at specified less frequent intervals 23; and
(B) that, in addition to whatever action may be appropriate based on other
reports or information received by the State agency, the State agency will
take prompt action to adjust the amount of assistance payable, as may be
appropriate, on the basis of the information contained in the report (or
upon the failure of the family to furnish a timely report), and will give
an appropriate explanatory notice, concurrent with its action, to the
family;
(15) provide (A) for the development of a program, for each appropriate
relative and dependent child receiving aid under the plan and for each
appropriate individual (living in the same home as a relative and child
receiving such aid) whose needs are taken into account in making the
determination under paragraph(7), for preventing or reducing the incidence
of births out of wedlock and otherwise strengthening family life, and for
implementing such program by assuring that in all
appropriate cases (including minors who can be considered to be sexually
active) family planning services are offered to them and are provided
promptly (directly or under arrangements with others) to all individuals
voluntarily requesting such services, but acceptance of family planning
services provided under the plan shall be voluntary on the part of such
members and individuals and shall not be a prerequisite to eligibility for
or the receipt of any other service under the plan; and
(B) to the extent that services provided under this paragraph are
furnished by the staff of the State agency or the local agency
administering the State plan in each of the political subdivisions of the
State, for the establishment of a single organizational unit in such State
or local agency, as the case may be, responsible for the furnishing of such
services;
(16) provide that the State agency will -
(A) report to an appropriate agency or official, know or suspected
instances of physical of mental injury, sexual abuse or exploitation, or
negligent treatment or maltreatment of a child receiving and under this
part under circumstances which indicate that the child's health or
welfare is threatened thereby; and
(B) provide such information with respect to a situation described in
subparagraph (A) as the State agency may have; 24
(17) provide that if a child or relative applying for or receiving aid to
families with dependent children, or any other person whose need the State
considers when determining the income of a family, receives in any month an
amount of earned or unearned income which, together with all other income
for that month not excluded under paragraph (8), exceeds the State's
standard of need applicable to the family of which he is a member-
(A) such amount of income shall be considered income to such individual
in the month received, and the family of which such person is a member
shall be ineligible for aid under the plan for the whole number of
months that equals (i) the sum of such amount and all other income
received in such month, not excluded under paragraph (8), divided by
(ii) the standard of need applicable to such family, and
(B) any income remaining (which amount is less than the applicable
monthly standard) shall be treated as income received in the first month
following the period of ineligibility specified in subparagraph (A); 25
except that the State may at its option recalculate the period of
ineligibility otherwise determined under subparagraph (A) (but only with
respect to the remaining months in such period) in any one or more of
the following cases: (i) an event occurs which, had the family been
receiving aid under the State plan for the month of the occurrence,
would result in a change in the amount of aid payable for such month
under the plan,or (ii) the income received has become unavailable to the
members of the family for reasons that were beyond the control of such
members, or(iii) the family incurs, becomes responsible for, and pays
medical expenses (as allowed by the State) in a month of ineligibility
determined under subparagraph(A) (which expenses may be considered as an
offset against the amount of income received in the first month of such
ineligibility);
(18) provide that no family shall be eligible for aid under the plan for
any month if, for that month, the total income of the family (other than
payments under the plan), without application of paragraph (8), other than
paragraph (8)(A)(v) 24 exceeds 185 percent of the State's standard of need
for a family of the same composition, except that in determining the total
income of the family the State may exclude any earned income of a dependent
child who is a full-time student, in such amounts and for such period of
time (not to exceed 6 months) as the State may determine;
(19) provide-
(A) that the State has in effect and operation a job opportunities and
basic skills training program which meets the requirements of part F;
(B) that-
(i) the State will (except as otherwise provided in this
paragraph or part F), to the extent that the program is available in the
political subdivision involved and State resources otherwise permit-
(I) require all recipients of aid to families with dependent
children in such subdivision with respect to whom the State guarantees
child care in accordance with section 402(g) to participate in the program;
and
(II) allow applicants for and recipients of aid to families
with dependent children (and individuals who would be recipients of such
aid if the State had not exercised the option under section
407(b)(2)(B)(i)) 26 who are not required under subclause (I) to participate
in the program to do so on a voluntary basis;
(ii) in determining the priority of participation by individuals
from among those groups described in clauses (i), (ii), (iii), and (iv) of
section 403(l)(2)(B), the State will give first
consideration to applicants for or recipients of aid to families
with dependent children within any such group who volunteer to
participate in the program;
(iii) if an exempt participant drops out of the program without good
cause after having commenced participation in the program, he
or she shall thereafter not be given priority so long as other individuals
are actively seeking to participate; and
(iv) the State need not require or allow participation of an
individual in the program if as a result of such participation the amount
payable to the State for quarters in a fiscal year with respect to the
program would be reduced pursuant to section 403(l)(2);
(C) that an individual may not be required to participate in the
program if such individual-
(i) is ill, incapacitated, or of advanced age;
(ii) is needed in the home because of the illness or incapacity of
another member of the household;
(iii) subject to subparagraph (D)-
(I) is the parent or other relative of a child under 3 years of age
(or, if so provided in the State plan, under any age that is less than 3
years but not less than one year) who is personally providing care for the
child, or
(II) is the parent or other relative personally providing
care for a child under 6 years of age, if the State assures that child care
in accordance with section 402(g) will be guaranteed and that participation
in the program by the parent or relative will not be required for more than
20 hours a week;
(iv) works 30 or more hours a week;
(v) is a child who is under age 16 or attends, full-time, an
elementary, secondary, or vocational (or technical) school;
(vi) is pregnant if it has been medically verified that the child is
expected to be born in the month in which such
participation would otherwise be required or within the 6-month
period immediately following such month; or
(vii) resides in an area of the State where the program is not
available;
(D) that, in the case of a family eligible for aid to families with
dependent children by reason of the unemployment of the parent who is
the principal earner, subparagraph (C)(iii) shall apply only to one
parent, except that, in the case of such a family, the State may at
its option make such subparagraph inapplicable to both of the parents
(and require their participation in the program) if child care in
accordance with section 402(g) is guaranteed with respect to the
family;
(E) that-
(i) to the extent that the program is available in the political
subdivision involved and State resources otherwise permit, in the case of a
custodial parent who has not attained 20 years of age, has not successfully
completed a high-school education (or its equivalent), and is required to
participate in the program (including an individual who would otherwise be
exempt from participation in the program solely by reason of subparagraph
(C)(iii)), the State agency (subject to clause (ii)) will require such
parent to participate in an educational activity; and
(ii) the State agency may-
(I) require a parent described in clause (i) (notwithstanding the
part-time requirement in subparagraph (C)(iii)(II)) to
participate in educational activities directed toward the attainment of a
high school diploma or its equivalent on a full-time (as defined by the
educational provider) basis,
(II) establish criteria in accordance with regulations of the
Secretary under which custodial parents described in clause (i) who have
not attained 18 years of age may be exempted from the school attendance
requirement under such clause, or
(III) require a parent described in clause (i) who is age 18 or 19
to participate in training or work activities (in lieu of the educational
activities under such clause) if such parent fails to make good progress in
successfully completing such educational activities or if it is determined
(prior to any assignment of the individual to such educational
activities) pursuant to an educational assessment that participation in
such educational activities is inappropriate for such parent;
(F) that-
(i) if the parent or other caretaker relative or any dependent child
in the family is attending (in good standing) an institution of higher
education (as defined in section 481(a) of the Higher
Education Act of 1965), or a school or course of vocational or technical
training (not less than half time) consistent with the individual's
employment goals, and is making satisfactory progress in such institution,
school, or course, at the time he or she would otherwise commence
participation in the program under this section, such attendance may
constitute satisfactory participation in the program (by that caretaker or
child) so long as it continues and is consistent with such goals;
(ii) any other activities in which an individual described in clause
(i) participates may not be permitted to interfere with the
school or training described in that clause;
(iii) the costs of such school or training shall not constitute
federally reimbursable expenses for purposes of section 403; and
(iv) the costs of day care, transportation, and other services which
are necessary (as determined by the State agency) for such
attendance in accordance with section 402(g) are eligible for Federal
reimbursement;
(G) that-
(i) if an individual who is required by the provisions of this
paragraph to participate in the program or who is so required by
reason of the State's having exercised the option under subparagraph (D)
fails without good cause to participate in the program or refuses without
good cause to accept employment in which such individual is able to engage
which is offered through the public employment offices of the State, or is
otherwise offered by an employer if the offer of such employer is
determined to be a bona fide offer of employment-
(I) the needs of such individual (whether or not section 407
applies) shall not be taken into account in making the determination with
respect to his or her family under paragraph (7) of this subsection, and if
such individual is a parent or other caretaker relative, payments of aid
for any dependent child in the family in the form of payments of the
type described in section 406(b)(2) (which in such a case shall be without
regard to clauses (A) through (D) thereof) will be made unless the State
agency, after making reasonable efforts, is unable to locate an appropriate
individual to whom such payments can be made; and
(II) if such individual is a member of a family which is
eligible for aid to families with dependent children by reason of section
407, and his or her spouse is not participating in the program, the needs
of such spouse shall also not be taken into account in making such
determination;
(ii) any sanction described in clause (i) shall continue-
(I) in the case of the individual's first failure to comply, until
the failure to comply ceases;
(II) in the case of the individual's second failure to comply,
until the failure to comply ceases or 3 months (whichever is longer); and
(III) in the case of any subsequent failure to comply, until the
failure to comply ceases or 6 months (whichever is longer);
(iii) the State will promptly remind any individual whose failure to
comply has continued for 3 months, in writing, of the
individual's option to end the sanction by terminating such failure; and
(iv) no sanction shall be imposed under this subparagraph-
(I) on the basis of the refusal of an individual described in
subparagraph (C)(iii)(II) to accept employment, if the
employment would require such individual to work more than 20 hours a week,
or
(II) on the basis of the refusal of an individual to participate
in the program or accept employment, if child care (or day care for any
incapacitated individual living in the same home as a dependent child) is
necessary for an individual to participate in the program or accept
employment, such care is not available, and the State agency fails to
provide such care; and
(H) the State agency may require a participant in the program to
accept a job only if such agency assures that the family of such
participant will experience no net loss of cash income resulting from
acceptance of the job; and any costs incurred by the State agency as a
result of this subparagraph shall be treated as expenditures with
respect to which section 403(a)(1) or 403(a)(2) applies; 27
(20) provide that the State has in effect a State plan for foster care
and adoption assistance approved under part E of this title; 28
(21) provide-
(A) that, for purposes of this part, participation in a strike shall
not constitute good cause to leave, or to refuse to seek or accept
employment; and
(B)(i) that aid to families with dependent children is not payable to
a family for any month in which any caretaker relative with whom the child
is living is, on the last day of such month, participating
in a strike, and (ii) that no individual's needs shall be included in
determining the amount of aid payable for any month to a family under
the plan if, on the last day of such month, such individual is
participating in a strike;
(22) provide that the State agency will promptly take all necessary
steps to correct any overpayment or underpayment of aid under the State
plan, and, in the case of-
(A) an overpayment to an individual who is a current recipient of such
aid (including a current recipient whose overpayment occurred
during a prior period of eligibility), recovery will be made by repayment
by the individual or by reducing the amount of any future
aid payable to the family of which he is a member, except that such
recovery shall not result in the reduction of aid payable for any
month, such that the aid, when added to such family's liquid resources
and to its income (without application of paragraph (8)), is less than
90 percent of the amount payable under the State plan to a family of
the same composition with no other income (and, in the case of an
individual to whom no payment is made for a month solely by reason of
recovery of an overpayment, such individual shall be deemed to be a
recipient of aid for such month);
(B) an overpayment to any individual who is no longer receiving aid
under the plan, recovery shall be made by appropriate action under
State law against the income or resources of the individual or the
family; and
(C) an underpayment, the corrective payment shall be disregarded in
determining the income of the family, and shall be disregarded in
determining its resources in the month the corrective payment is made
and in the following month; except that no recovery need be attempted or
carried out under subparagraph (B) in any case, other than a case involving
fraud on the part of the recipient, where (as determined by the State
agency in accordance with criteria for determining cost-effectiveness, and
with dollar limitations, which shall be prescribed by the Secretary in
regulations) the cost of recovery would equal or exceed the amount of the
overpayment involved;
(23) provide that by July 1, 1969, the amounts used by the State to
determine the needs of individuals will have been adjusted to reflect fully
changes in living costs since such amounts were established, and any
maximums that the State imposes on the amount of aid paid to families will
have been proportionately adjusted;
(24) provide that if an individual is receiving benefits under title XVI
or his costs in a foster family home or child-care institution are covered
by the foster care maintenance payments being made to his or her minor
parent as provided in section 475(4)(B), then, for the period for which
such benefits are received or such costs are so covered,
such individual shall not be regarded as a member of a family for purposes
of determining the amount of the benefits of the family under this title
and his income and resources shall not be counted as income and resources
of a family under this title;
(25) provide that information is requested and exchanged for purposes of
income and eligibility verification in accordance with a State system which
meets the requirements of section 1137 of this Act;
(26) provide that, as a condition of eligibility for aid, each applicant
or recipient will be required-
(A) to assign the State any rights to support from any other person
such applicant may have (i) in his own behalf or in behalf of any other
family member for whom the applicant is applying for or
receiving aid, and (ii) which have accrued at the time such assignment is
executed;
(B) to cooperate with the State (i) in establishing the paternity of a
child born out of wedlock with respect to whom aid is claimed, and
(ii) in obtaining support payments for such applicant and for a child
with respect to whom such aid is claimed, or in obtaining any other
payments or property due such applicant or such child, unless (in either
case) such applicant or recipient is found to have good cause
for refusing to cooperate as determined by the State agency in
accordance with standards prescribed by the Secretary, which standards
shall take into consideration the best interests of the child on whose
behalf aid is claimed; and that, if the relative with whom a child is
living is found to be ineligible because of failure to comply with the
requirements of subparagraphs (A) and (B) of this paragraph, any aid
for which such child is eligible will be provided in the form of
protective payments as described in section 406(b)(2) (without regard
to clauses (A) through (D) of such section) unless the State agency,
after making reasonable efforts, is unable to locate an appropriate
individual to whom such payments can be made; and
(C) to cooperate with the State in identifying, and providing
information to assist the State in pursuing, any third party who may be
liable to pay for care and services available under the State's
plan for medical assistance under title XIX, unless such individual
has good cause for refusing to cooperate as determined by the State
agency in accordance with standards prescribed by the Secretary, which
standards shall take into consideration the best interests of the
individuals involved; but the State shall not be subject to an financial
penalty in the administration or enforcement of this
subparagraph as a result of any monitoring, quality control, or
auditing requirements;
(27) provide that the State has in effect a plan approved under part D
and operates a child support program in substantial compliance with such
plan;
(28) provide that, in determining the amount of aid to which an eligible
family is entitled, any portion of the amounts collected in any particular
month as child support pursuant to a plan approved under part D, and
retained by the State under section 457, which (under the State plan
approved under this part as in effect both during July 1975 and during that
particular month) would not have caused a reduction in the amount of aid
paid to the family if such amounts had been paid directly to the family,
shall be added to the amount of aid otherwise payable to such
family under the State plan approved under this part;
[(29) Repealed. 29]
(30) at the option of the State, provide for the establishment and
operation, in accordance with an (initial and annually updated) advance
automated 30 data processing planning document approved under subsection (e)
31 of an automated statewide management information system designed
effectively and efficiently, to assist management in the administration of
the State plan for aid to families with dependent children approved under
this part, so as
(A) to control and account for
(i) all the factors in the total eligibility determination process under
such plan for aid (including but not limited to
(I) identifiable correlation factors (such as social security numbers,
names, dates of birth, home addresses, and mailing addresses (including
postal ZIP codes), of all applicants and recipients of such aid and the
relative with whom any child who is such an applicant or recipient is
living) to assure sufficient compatibility among the systems of different
jurisdictions to permit periodic screening to determine whether an
individual is or has been receiving benefits from more than one
jurisdiction,
(II) checking records of applicants and recipients of such aid on a
periodic basis with other agencies, both intra- and inter-State, for
determination and verification of eligibility and payment pursuant to
requirements imposed by other provisions of this Act),
(ii) the costs, quality, and delivery of funds and services
furnished to applicants for and recipients of such aid,
(B) to notify the appropriate officials of child support, food stamp,
social service, and medical assistance programs approved under title XIX
whenever the case becomes ineligible or the amount of aid or services is
changed, and
(C) to provide for security against unauthorized access to, or use of,
the data in such system;
(31) provide that, in making the determination for any month under
paragraph (7), the State agency shall take into consideration so much of
the income of the dependent child's stepparent living in the same home as
such child as exceeds the sum of
(A) the first $75 of the total of such stepparent's earned income for
such month,
(B) the State's standard of need under such plan for a family of the
same composition as the stepparent and those other individuals living in
the same household as the dependent child and claimed by such stepparent as
dependents for purposes of determining his Federal personal income tax
liability but whose needs are not taken into account in making the
determination under paragraph (7),
(C) amounts paid by the stepparent to individuals not living in such
household and claimed by him as dependents for purposes of determining his
Federal personal income tax liability, and
(D) payments by such stepparent of alimony or child support with respect
to individuals not living in such household;
(32) provide that no payment of aid shall be made under the plan for any
month if the amount of such payment, as determined in accordance with the
applicable provisions of the plan and of this part, would be less than $10,
but an individual with respect to whom a payment of aid under the plan is
denied solely by reason of this paragraph is deemed to be a recipient of
aid but shall not be eligible to participate in a community work experience
program;
(33) provide that in order for any individual to be considered a
dependent child, a caretaker relative whose needs are to be taken into
account in making the determination under paragraph (7), or any other
person whose needs should be taken into account in making such a
determination with respect to the child or relative, such individual must
be either
(A) a citizen, or
(B) an alien lawfully admitted for permanent residence or otherwise
permanently residing in the United States under color of law (including any
alien who is lawfully present in the United States as a result of the
application of the provisions of section 207(c) of the Immigration and
Nationality Act 32 (or of section 203(a)(7) of such Act prior to April 1,
1980), or as a result of the application of the provisions of section 208
or 212(d)(5) of such Act);
(34) provide that both the standard of need applied to a family and the
amount of aid determined to be payable, when not a whole dollar amount,
shall be rounded to the next lower whole dollar amount;
[(35) Repealed.] 33
(36) provide, at the option of the State, that in making the
determination for any month under paragraph (7), the State agency shall not
include as income any support or maintenance assistance furnished to or on
behalf of the family which (as determined under regulations of the
Secretary by such State agency as the chief executive officer of the State
may designate) is based on need for such support and maintenance, including
assistance received to assist in meeting the costs of home energy
(including both heating and cooling), and which is (A) assistance
furnished in kind by a private nonprofit agency, or (B) assistance
furnished by a supplier of home heating oil or gas, by an entity whose
revenues are primarily derived on a rate-of-return basis regulated by a
State or Federal governmental entity, or by a municipal utility providing
home energy;
(37) provide that if any family becomes ineligible to receive aid to
families with dependent children because of hours of or income from
employment of the caretaker relative or because of paragraph
(8)(B)(ii)(II), having received such aid in at least 3 of the 6 months
immediately preceding the month in which such ineligibility begins, the
family shall remain eligible for medical assistance under the State's plan
approved under title XIX for an extended period or periods as provided in
section 1925, and that the family will be appropriately notified of such
extension (in the State agency's notice to the family of the termination
of its eligibility for such aid) as required by section 1925(a)(2);
34
(38) provide that in making the determination under paragraph (7) with
respect to a dependent child and applying paragraph (8), the State agency
shall (except as otherwise provided in this part) include-
(A) any parent of such child, and
(B) any brother or sister of such child, if such brother or sister
meets the conditions described in clauses (1) and (2) of section 406(a) or
in section 407(a) 35 if such parent, brother, or sister is living in the
same home as the dependent child, and any income of or available for such
parent, brother, or sister shall be included in making such determination
and applying such paragraph with respect to the family (notwithstanding
section 205(j), in the case of benefits provided under title II);
(39) provide that in making the determination under paragraph (7) with
respect to a dependent child whose parent 36 is under the age of 18, the
State agency shall (except as otherwise provided in this part) include any
income of such minor's own parents 37 who are living in the same home as
such minor and dependent child, to the same extent that income of a
stepparent is included under paragraph (31);
(40) provide, if the State has elected to establish and operate a fraud
control program under section 416, that the State will submit to the
Secretary (with such revisions as may from time to time be necessary) a
description of and budget for such program, and will operate such program
in full compliance with that section;
(41) provide that aid to families with dependent children will be
provided under the plan with respect to dependent children of unemployed
parents in accordance with section 407; 38
(42) provide that if, under section 407(b)(2)(B)(i), the State limits
the number of months for which a family may receive aid to families with
dependent children, the State shall provide medical assistance to all
members of the family under the State's plan approved under title XIX,
without time limitation; 39
(43) at the option of the State, provide that-
(A) subject to subparagraph (B), in the case of any individual who is
under the age of 18 and has never married, and who has a dependent
child in his or her care (or is pregnant and is eligible for aid to
families with dependent children under the State plan)-
(i) such individual may receive aid to families with dependent
children under the plan for the individual and such child (or for herself
in the case of a pregnant woman) only if such individual
and child (or such pregnant woman) reside in a place of residence
maintained by a parent, legal guardian, or other adult relative of
such individual as such parent's, guardian's, or adult relative's
own home, or reside in a foster home, maternity home, or other
adult-supervised supportive living arrangement; and
(ii) such aid (where possible) shall be provided to the parent,
legal guardian, or other adult relative on behalf of such
individual and child; and
(B) subparagraph (A) does not apply in the case where-
(i) such individual has no parent or legal guardian of his or her
own who is living and whose whereabouts are known;
(ii) no living parent or legal guardian of such individual allows
the individual to live in the home of such parent or
guardian;
(iii) the State agency determines that the physical or emotional
health or safety of such individual or such dependent child would be
jeopardized if such individual and such dependent child lived
in the same residence with such individual's own parent or legal
guardian;
(iv) such individual lived apart from his or her own parent or legal
guardian for a period of at least one year before either the
birth of any such dependent child or the individual having made
application for aid to families with dependent children under the plan; or
(v) the State agency otherwise determines (in accordance with
regulations issued by the Secretary) that there is good cause for waiving
such subparagraph; 40
(44) provide that the State agency shall-
(A) be responsible for assuring that the benefits and services under
the programs under this part, part D, and part F are furnished in an
integrated manner, and
(B) consistent with the provisions of this title, ensure that all
applicants for and recipients of aid to families with dependent children
are encouraged, assisted, and required to cooperate in the establishment of
paternity and the enforcement of child support obligations, and are
notified of the paternity establishment and child support services for
which they may be eligible; and 41
(45) provide (in accordance with regulations issued by the Secretary)
for appropriate measures to detect fraudulent applications for aid to
families with dependent children prior to the establishment of eligibility
for such aid. 42 The Secretary may waive any of the requirements imposed
under or in connection with paragraphs (13) and (14) of this subsection to
the extent necessary to make such requirements compatible with the
corresponding reporting and budgeting requirements by the Food Stamp Act of
1977 43, 44
(b) The Secretary shall approve any plan which fulfills the conditions
specified in subsection (a), except that he shall not approve any plan
which imposes as a condition of eligibility for aid to families with
dependent children, a residence requirement which denies aid with respect
to any child residing in the State
(1) who has resided in the State for one year immediately preceding the
application for such aid, or
(2) who was born within one year immediately preceding the application,
if the parent or other relative with whom the child is living has resided
in the State for one year immediately preceding the birth.
(c) The Secretary shall, on the basis of his review of the reports
received from the States under paragraph (15) of subsection (a), compile
such data as he believes necessary and from time to time publish his
findings as to the effectiveness of the programs developed and administered
by the States under such paragraph. The Secretary shall annually report to
the Congress (with the first such report being made on or before July 1,
1970) on the programs developed and administered by each State under such
paragraph (15).
[(d) Repealed.]45
(1) The Secretary shall not approve the initial and annually updated
advance automated data processing planning document, referred to in
subsection (a)(30), unless he finds that such document, when implemented,
will generally carry out the objectives of the statewide management system
referred to in such subsection, and such document-
(A) provides for the conduct of, and reflects the results of,
requirements analysis studies, which include consideration of the program
mission, functions, organization, services, constraints, and current
support, of, in, or relating to, such system,
(B) contains a description of the proposed statewide management system,
including a description of information flows, input data, and output
reports and uses,
(C) sets forth the security and interface requirements to be employed in
such statewide management system,
(D) describes the projected resource requirements for staff and other
needs, and the resources available or expected to be available to meet such
requirements,
(E) includes cost-benefit analyses of each alternative management
system, data processing services and equipment, and a cost allocation plan
containing the basis for rates, both direct and indirect, to be in effect
under such statewide management system,
(F) contains an implementation plan with charts of development events,
testing descriptions, proposed acceptance criteria, and backup and fallback
procedures to handle possible failure of contingencies, and
(G) contains a summary of proposed improvement of such statewide
management system in terms of qualitative and quantitative benefits.
(2)(A) The Secretary shall, on a continuing basis, review, assess, and
inspect the planning, design, and operation of, statewide management
information systems referred to in section 403(a)(3)(B), with a view to
determining whether, and to what extent, such systems meet and continue to
meet requirements imposed under such section and the conditions specified
under subsection (a)(30) of this section. If the Secretary finds with
respect to any statewide management information system referred to in
section 403(a)(3)(B) that there is a failure substantially to comply with
criteria, requirements, and other undertakings, prescribed by the advance
automated data processing planning document theretofore approved by the
Secretary with respect to such system, then the Secretary shall suspend his
approval of such document until there is no longer any such failure of such
system to comply with such criteria, requirements, and other undertakings
so prescribed. If the Secretary determines that such a system has not been
implemented by the State by the date specified for implementation in the
State's advance automated data processing planning document, then the
Secretary shall reduce payments to such State, in accordance with section
403(b), in an amount equal to 40 percent of the expenditures referred to in
section 403(a)(3)(B) with respect to which payments were made to the State
under section 403(a)(3)(B). The Secretary may extend the deadline for
implementation if the State demonstrates to the satisfaction of the
Secretary that the State cannot implement such system by the date specified
in such planning document due to circumstances beyond the State's control.
(f) (1) For temporary disqualification of certain newly legalized aliens
from receiving aid to families with dependent children, see subsection (h)
of section 245A of the Immigration and Nationality Act 46
subsection (f) of section 210 of such Act, and subsection (d)(7) of section
210A of such Act.
(2) In any case where an alien disqualified from receiving aid under such
subsection (h), (f), or (d)(7) is the parent of a child who is not so
disqualified and who (without any adjustment of status under such section
245A, 210, or 210A) is considered a dependent child under subsection
(a)(33), or is the brother or sister of such a child, subsection (a)(38)
shall not apply, and the needs of such alien shall not be taken into
account in making the determination under subsection (a)(7) with respect to
such child, but the income of such alien (if he or she is the parent of
such child) shall be included in making such determination to the same
extent that income of a stepparent is included under subsection (a)(31).
(g) (1)(A)
(i) 47 Each State agency must guarantee child care in accordance with
subparagraph (B)-
(I) 48 for each family with a dependent child requiring such care, to the
extent that such care is determined by the State agency to be necessary
for an individual in the family to accept employment or remain employed;
and
(II) 49 for each individual participating in an education and training
activity (including participation in a program that meets the
requirements of subsection (a)(19) and part F) if the State agency
approves the activity and determines that the individual is
satisfactorily participating in the activity.
(ii) Each State agency must guarantee child care, subject to the
limitations described in this section, to the extent that such care is
determined by the State agency to be necessary for an individual's
employment in any case where a family has ceased to receive aid to families
with dependent children as a result of increased hours of, or increased
income from, such employment or by reason of subsection (a)(8)(B)(ii)(II).
50
(iii) A family shall only be eligible for child care provided under clause
(ii) for a period of 12 months after the last month for which the family
received aid to families with dependent children under this part. 51
(iv) A family shall not be eligible for child care provided under clause
(ii) unless the family received aid to families with dependent 52 children
in at least 3 of the 6 months immediately preceding the month in which the
family became ineligible for such aid. 53
(v) A family shall not be eligible for child care provided under clause
(ii) unless the family includes a child who is, 54 (or, if needy, would be)
a dependent child. 55
(vi) A family shall not be eligible for child care provided under clause
(ii) for any month beginning after the caretaker relative who is a member
of the family has-
(I) without good cause, terminated his or her employment; or
(II) refused to cooperate with the State in establishing and enforcing
his or her child support obligations; without good cause as determined by
the State agency in accordance with standards prescribed by the Secretary
which shall take into consideration the best interest of the child for whom
child care is to be provided. 56 57
(vii) A family shall contribute to child care provided under clause (ii)
in accordance with a sliding scale formula which shall be established by
the State agency based on the family's ability to pay. 58
(B) The State agency may guarantee child care by-
(i) providing such care directly;
(ii) arranging the care through providers by use of purchase of service
contracts, or vouchers;
(iii) providing cash or vouchers in advance to the caretaker relative in
the family;
(iv) reimbursing the caretaker relative in the family; or
(v) adopting such other arrangements as the agency deems appropriate.
When the State agency arranges for child care, the agency shall take into
account the individual needs of the child.
(C)
(i) Subject to clause (ii), the State agency shall make payment for the
cost of child care provided with respect to a family in an amount that is
the lesser of-
(I) the actual cost of such care; and
(II) the dollar amount of the child care disregard for which the family
is otherwise eligible under subsection (a)(8)(A)(iii), or (if higher) an
amount established by the State.
(ii) The State agency may not reimburse the cost of child care provided
with respect to a family in an amount that is greater than the applicable
local market rate (as determined by the State in accordance with
regulations issued by the Secretary).
(D) The State may not make any change in its method of reimbursing child
care costs which has the effect of disadvantaging families receiving aid
under the State plan on the date of the enactment of this section, 59 by
reducing their income or otherwise.
(E) The value of any child care provided or arranged (or any amount
received as payment for such care or reimbursement for costs incurred for
the care) under this paragraph-
(i) shall not be treated as income for purposes of any other Federal or
federally-assisted program that bases eligibility for or the amount of
benefits upon need, and
(ii) may not be claimed as an employment-related expense for purposes of
the credit under section 21 of the Internal Revenue Code of 1986.
(2) In the case of any individual participating in the program under part
F, each State agency (in addition to guaranteeing child care under
paragraph (1)) shall provide payment or reimbursement for such
transportation and other work-related expenses (including other
work-related supportive services), as the State determines are necessary to
enable such individual to participate in such program.
(3)(A)
(i) 60 In the case of amounts expended for child care pursuant to
paragraph (1)(A) by any State to which section 1108 does not apply, the
applicable rate for purposes of section 403(a) shall be the Federal medical
assistance percentage (as defined in section 1905(b)).
(ii) In the case of amounts expended for child care pursuant to paragraph
(1)(A)(ii) (relating to the provision of child care for certain families
which cease to receive aid under this part) by any State to which section
1108 applies, the applicable rate for purposes of section 403(a) shall be
the Federal medical assistance percentage (as defined in section 1118). 61
(B) In the case of any amounts expended by the State agency for child care
under this subsection, only such amounts as are within such limits as the
State may prescribe (subject to the limitations of paragraph (1)(C)) shall
be treated as amounts for which payment may be made to a State under this
part and they may be so treated only to the extent that-
(i) such amounts do not exceed the applicable local market rate (as
determined by the State in accordance with regulations issued by the
Secretary);
(ii) the child care involved meets applicable standards of State and
local law; and
(iii)in the case of child care, the entity providing such care allows
parental access.
(4) The State must establish procedures to ensure that center-based child
care will be subject to State and local requirements designed to ensure
basic health and safety, including fire safety, protections. The State must
also endeavor to develop guidelines for family day care. The State must
provide the Secretary with a description of such State and local
requirements and guidelines.
(5) By October 1, 1992, the Secretary shall report to the Congress on the
nature and content of State and local standards for health and safety.
(6)(A) The Secretary shall make grants to States to improve their child
care licensing and registration requirements and procedures, to enforce
standards with respect to child care provided to children under this part,
and to provide for the training of child care providers. 62
(B) Subject to subparagraph (C), the Secretary shall make grants to each
State under subparagraph (A) in proportion to the number of children in the
State receiving aid under the State plan approved under subsection (a).
(C) The Secretary may not make grants to a State under subparagraph (A)
unless the State provides matching funds in an amount that is not less than
10 percent of the amount of the grant.
(D) For grants under this paragraph, there is authorized to be
appropriated to the Secretary $13,000,000 for each of the fiscal years 1990
and 1991, and $50,000,000 for each of fiscal years 1992, 1993, and 1994. 63
(E) Each State to which the Secretary makes a grant under this paragraph
shall expend not less than 50 percent of the amount of the grant to provide
for the training of child care providers. 64
(7) Activities under this section and subsection 65 shall be coordinated
in each State with existing early childhood education programs in that
State, including Head Start programs, preschool programs funded under
chapter 1 of the Education Consolidation and Improvement Act of 1981 66 and
school and nonprofit child care programs (including community-based
organizations receiving funds designated for preschool programs for
handicapped children). 67
(h) (1) Each State shall reevaluate the need standard and payment standard
under its plan at least once every 3 years, in accordance with a schedule
established by the Secretary, and report the results of the reevaluation to
the Secretary and the public at such time and in such form and manner as
the Secretary may require.
(2) The report required by paragraph (1) shall include a statement of-
(A) the manner in which the need standard of the State is determined,
(B) the relationship between the need standard and the payment standard
(expressed as a percentage or in any other manner determined by the
Secretary to be appropriate), and
(C) any changes in the need standard or the payment standard in the
preceding 3-year period.
(3) Not later than July 1, 1992, the Secretary shall issue a report on the
implementation of this subsection, based on information as has 68 been made
available to the Secretary by the States. 69
PAYMENT TO STATES 70
Sec. 403 . [42 U.S.C. 603] (a) From the sums appropriated there for, the
Secretary of the Treasury shall pay to each State which has an approved
plan for aid and services to needy families with children, for each
quarter, beginning with the quarter commencing October 1, 1958-
(1) in the case of any State other than Puerto Rico, the Virgin Islands,
Guam, and American Samoa, an amount equal to the sum of the following
proportions of the total amounts expended during such quarter as aid to
families with dependent children under the State plan-
(A) five-sixths of such expenditures, not counting so much of any
expenditure with respect to any month as exceeds the product of $18
multiplied by the total number of recipients of aid to families with
dependent children for such month (which total number, for purposes of
this subsection, means
(i) the number of individuals with respect to
whom such aid in the form of money payments is paid for such month,
plus (ii) the number of individuals, not counted under clause (i), with
respect to whom payments described in section 406(b)(2) are made in
such month and included as expenditures for purposes of this
paragraph or paragraph (2)); plus
(B) the Federal percentage of the amount by which such expenditures exceed
the maximum which may be counted under clause (A), not counting so much of
any expenditure with respect to any month as exceeds(i) the product of $32
multiplied by the total number of recipients of aid to families with
dependent children (other than such aid in the form of foster care) for
such month, plus
(ii) the product of $100 multiplied by the total number of recipients of
aid to families with dependent children in the form of foster care for such
month; and
(2) in the case of Puerto Rico, the Virgin Islands, Guam, and American
Samoa, an amount equal to one-half of the total of the sums expended during
such quarter as aid to families with dependent children under the State
plan, not counting so much of any expenditure with respect to any month as
exceeds $18 multiplied by the total number of recipients of such aid for
such month; and 71
(3) in the case of any State, an amount equal to the sum of the
following proportions of the total amounts expended during such quarter as
found necessary by the Secretary for the proper and efficient
administration of the State plan-
(A) 100 percent of so much of such expenditures as are for the costs of the
implementation and operation of the immigration status verification system
described in section 1137(d),
(B) 90 per centum of so much of the sums expended during such
quarter as are attributable to the planning, design, development, or
installation of such statewide mechanized claims processing and information
retrieval systems as (i) meet the conditions of section 402(a)(30),and
(ii) the Secretary determines are likely to provide more efficient,
economical, and effective administration of the plan and to be compatible
with the claims processing and information retrieval systems utilized in
the administration of State plans approved under title XIX, and State
programs with respect to which there is Federal financial participation
under title XX,
(C) 75 percent of so much of such expenditures as are for the costs
of carrying out a fraud control program under section 416, including
costs related to the investigation, prosecution, and administrative
hearing of fraudulent cases and the making of any resultant collections,
and
(D) one-half of the remainder of such expenditures (including any amounts
expended by the State to carry out initial evaluations under section
486(a)) 72 ; and 73 except that no payment shall be made with respect to
amounts expended in connection with the provision of any service described
in section 2002(a) of this Act other than services furnished pursuant to
section 402(g) 74 and
[(4) Repealed. 75]
(5) in the case of any State, an amount equal to 50 per centum of the
total amount expended under the State plan during such quarter as
emergency assistance to needy families with children. No payment shall be
made under this subsection with respect to amounts paid to supplement or
otherwise increase the amount of aid to families with dependent children
found payable in accordance with section 402(a)(13) if such amount is
determined to have been paid by the State in recognition of the current or
anticipated needs of a family (other than with respect to the first or
first and second months of eligibility), but any such amount, if determined
to have been paid by the State in recognition of the difference between the
current or anticipated needs of a family for a month based upon actual
income or other relevant circumstances for such month, and the needs of
such family for such month based upon income and other relevant
circumstances as retrospectively determined under section
402(a)(13)(A)(ii), shall not be considered income within the meaning of
section 402(a)(13) for the purpose of determining the amount of aid in the
succeeding months. 76
(b) The method of computing and paying such amounts shall be as follows:
(1) The Secretary shall, prior to the beginning of each quarter,
estimate the amount to be paid to the State for such quarter under the
provisions of subsection (a), such estimate to be based on (A) a report
filed by the State containing its estimate of the total sum to be expended
in such quarter in accordance with the provisions of such subsection and
stating the amount appropriated or made available by the State and its
political subdivisions for such expenditures in such quarter, and if such
amount is less than the State's proportionate share of the total sum of
such estimated expenditures, the source or sources from which the
difference is expected to be derived, (B) records showing the number of
dependent children in the State, and (C) such other investigation as the
Secretary may find necessary.
(2) The Secretary shall then certify to the Secretary of the Treasury
the amount so estimated by the Secretary, (A) reduced or increased, as the
case may be, by any sum by which he finds that his estimate for any prior
quarter was greater or less than the amount which should have been paid to
the State for such quarter, (B) reduced by a sum equivalent to the pro
rata share to which the United States is equitably entitled, as determined
by the Secretary, of the net amount recovered during any prior quarter by
the State or any political subdivision thereof with respect to aid to
families with dependent children furnished under the State plan, and (C)
reduced by such amount as is necessary to provide the ""appropriate
reimbursement of the Federal Government'' that the State is required to
make under section 457 out of that portion of child support collections
retained by it pursuant to such section; except that such increases or
reductions shall not be made to the extent that such sums have been
applied to make the amount certified for any prior quarter greater or less
than the amount estimated by the Secretary for such prior quarter.
(3) The Secretary of the Treasury shall thereupon, through the Fiscal
Service of the Department of the Treasury and prior to audit or settlement
by the General Accounting Office, pay to the State, at the time or times
fixed by the Secretary, the amount so certified.
[(c) Repealed. 77]
[(d) Repealed. 78]
(e) In order to assist in obtaining the information needed to carry out
subsection (b)(1) and otherwise to perform his duties under this part, the
Secretary shall establish uniform reporting requirements under which each
State will be required periodically to furnish such information and data as
the Secretary may determine to be necessary to ensure that sections
402(a)(37), 402(a)(43), and 402(g)(1)(A), are being effectively
implemented, including at a minimum the average monthly number of families
assisted under each such section, the types of such families, the amounts
expended with respect to such families, and the length of time for which
such families are assisted. The information and data so furnished with
respect to families assisted under section 402(g) shall be separately
stated with respect to families who have earnings and those who do not, and
with respect to families who are receiving aid under the State plan and
those who are not.
(f) Notwithstanding any other provision of this section, the amount
payable to any State under this part for quarters in a fiscal year shall
with respect to quarters in fiscal years beginning after June 30, 1973, be
reduced by 1 per centum (calculated without regard to any reduction under
section 403(g)) of such amount if such State-
(1) in the immediately preceding fiscal year failed to carry out the
provisions of section 402(a)(15)(B) as pertain to requiring the offering
and arrangement for provision of family planning services; or
(2) in the immediately preceding fiscal year (but, in the case of the
fiscal year beginning July 1, 1972, only considering the third and fourth
quarters thereof), failed to carry out the provisions of section
402(a)(15)(B) of the Social Security Act with respect to any individual
who, within such period or periods as the Secretary may prescribe, has
been an applicant for or recipient of aid to families with dependent
children under the plan of the State approved under this part.
[(g) Repealed. 79]
(h) (1) Notwithstanding any other provision of this Act, if a State's
program operated under part D is found as a result of a review conducted
under section 452(a)(4) not to have complied substantially with the
requirements of such part for any quarter beginning after September 30,
1983, and the Secretary determines that the State's program is not
complying substantially with such requirements at the time such finding is
made, the amounts otherwise payable to the State under this part for such
quarter and each subsequent quarter, prior to the first quarter throughout
which the State program is found to be in substantial compliance with such
requirements, shall be reduced (subject to paragraph (2)) by-
(A) not less than one nor more than two percent, or
(B) not less than two nor more than three percent, if the finding is the
second consecutive such finding made as a result of such a review, or
(C) not less than three nor more than five percent, if the finding is
the third or a subsequent consecutive such finding made as a result of
such a review.
(2)(A) The reductions required under paragraph (1) shall be suspended for
any quarter if-
(i) the State submits a corrective action plan, within a period
prescribed by the Secretary following notice of the finding under
paragraph (1), which contains steps necessary to achieve substantial
compliance within a time period which the Secretary finds to be
appropriate;
(ii) the Secretary approves such corrective action plan (and any
amendments thereto) as being sufficient to achieve substantial compliance;
and
(iii) the Secretary finds that the corrective action plan (and any
amendment thereto approved by the Secretary under clause (ii)), is being
fully implemented by the State and that the State is progressing in
accordance with the timetable contained in the plan to achieve substantial
compliance with such requirements.
(B) A suspension of the penalty under subparagraph (A) shall continue
until such time as the Secretary determines that-
(i) the State has achieved substantial compliance,
(ii) the State is no longer implementing its corrective action plan, or
(iii) the State is implementing or has implemented its corrective action
plan but has failed to achieve substantial compliance within the
appropriate time period (as specified in subparagraph (A)(i)).
(C)(i) In the case of a State whose penalty suspension ends pursuant to
subparagraph (B)(i), the penalty shall not be applied.
(ii) In the case of a State whose penalty suspension ends pursuant to
subparagraph (B)(ii), the penalty shall be applied as if the suspension had
not occurred.
(iii) In the case of a State whose penalty suspension ends pursuant to
subparagraph (B)(iii), the penalty shall be applied to all quarters ending
after the expiration of the time period specified in such subparagraph (and
prior to the first quarter throughout which the State program is found to
be in substantial compliance).
(3) For purposes of this subsection, section 402(a)(27), and section
452(a)(4), a State which is not in full compliance with the requirements of
this part shall be determined to be in substantial compliance with such
requirements only if the Secretary determines that any noncompliance with
such requirements is of a technical nature which does not adversely affect
the performance of the child support enforcement program.
[(i) Repealed] 80
[(j) Repealed] 81
(k) (1) Each State with a plan approved under part F shall be entitled to
payments under subsection (l) for any fiscal year in an amount equal to the
sum of the applicable percentages (specified in such subsection) of its
expenditures to carry out the program under part F (subject to limitations
prescribed by or pursuant to such part or this section on expenditures that
may be included for purposes of determining payment under subsection (l)),
but such payments for any fiscal year in the case of any State may not
exceed the limitation determined under paragraph (2) with respect to the
State.
(2) The limitation determined under this paragraph with respect to a
State for any fiscal year is-
(A) the amount allotted to the State for fiscal year 1987 under part C
of this title as then in effect, plus
(B) the amount that bears the same ratio to the amount specified in
paragraph (3) for such fiscal year as the average monthly number of adult
recipients (as defined in paragraph (4)) in the State in the preceding
fiscal year bears to the average monthly number of such recipients in all
the States for such preceding year.
(3) The amount specified in this paragraph is-
(A) $600,000,000 in the case of the fiscal year 1989,
(B) $800,000,000 in the case of the fiscal year 1990,
(C) $1,000,000,000 in the case of each of the fiscal years 1991, 1992,
and 1993,
(D) $1,100,000,000 in the case of the fiscal year 1994,
(E) $1,300,000,000 in the case of the fiscal year 1995, and
(F) $1,000,000,000 in the case of the fiscal year 1996 and each
succeeding fiscal year, reduced by the aggregate amount allotted to all the
States for fiscal year 1987 pursuant to part C of this title as then in
effect.
(4) For purposes of this subsection, the term "adult recipient" in the
case of any State means an individual other than a dependent child (unless
such child is the custodial parent of another dependent child) whose needs
are met (in whole or in part) with payments of aid to families with
dependent children.
(5) None of the funds available to a State for purposes of the programs or
activities conducted under part F shall be used for construction. 82
(l) (1)(A) In lieu of any payment under subsection (a), the Secretary
shall pay to each State with a plan approved under section 482(a) (subject
to the limitation determined under section 482(i)(2)) with respect to
expenditures by the State to carry out a program under part F (including
expenditures for child care under section 402(g)(1)(A)(i) 83, but only in
the case of a State with respect to which section 1108 applies), an amount
equal to-
(i) with respect to so much of such expenditures in a fiscal year as do
not exceed the State's expenditures in the fiscal year 1987 with respect
to which payments were made to such State from its allotment for such
fiscal year pursuant to part C of this title as then in effect, 90
percent; and
(ii) with respect to so much of such expenditures in a fiscal year as
exceed the amount described in clause (i)-
(I) 50 percent, in the case of expenditures for administrative costs
made by a State in operating such a program for such fiscal year
(other than the personnel costs for staff employed full-time in the
operation of such program) and the costs of transportation and other
work-related supportive services under section 402(g)(2), and
(II) the greater of 60 percent or the Federal medical assistance
percentage (as defined in section 1118 in the case of any State to
which section 1108 applies, or as defined in section 1905(b) in the
case of any other State), in the case of expenditures made by a State
in operating such a program for such fiscal year (other than for costs
described in subclause (I)).
(B) With respect to the amount for which payment is made to a State under
subparagraph (A)(i), the State's expenditures for the costs of operating a
program established under part F may be in cash or in kind, fairly
evaluated.
(2)(A) Notwithstanding paragraph (1), the Secretary shall pay to a State
an amount equal to 50 percent of the expenditures made by such State in
operating its program established under part F (in lieu of any different
percentage specified in paragraph (1)(A)) if less than 55 percent of such
expenditures are made with respect to individuals who are described in
subparagraph (B).
(B) An individual is described in this paragraph if the individual-
(i)(I) is receiving aid to families with dependent children, and
(II) has received such aid for any 36 of the preceding 60 months;
(ii)(I) makes application for aid to families with dependent children,
and
(II) has received such aid for any 36 of the 60 months immediately
preceding the most recent month for which application has been made;
(iii) is a custodial parent under the age of 24 who (I) has not
completed a high school education and, at the time of application for aid
to families with dependent children, is not enrolled in high school (or a
high school equivalency course of instruction), or (II) had little or no
work experience in the preceding year; or
(iv) is a member of a family in which the youngest child is within 2
years of being ineligible for aid to families with dependent children
because of age.
(C) This paragraph may be waived by the Secretary with respect to any
State which demonstrates to the satisfaction of the Secretary that the
characteristics of the caseload in that State make it infeasible to meet
the requirements of this paragraph, and that the State is targeting other
long-term or potential long-term recipients.
(D) The Secretary shall biennially submit to the Congress any
recommendations for modifications or additions to the groups of individuals
described in subparagraph (B) that the Secretary determines would further
the goal of assisting long-term or potential long-term recipients of aid to
families with dependent children to achieve self-sufficiency, which
recommendations shall take into account the particular characteristics of
the populations of individual States.
(3)(A) Notwithstanding paragraph (1), the Secretary shall pay to a State
an amount equal to 50 percent of the expenditures made by such State in a
fiscal year in operating its program established under part F (in lieu of
any different percentage specified in paragraph (1)(A)) if the State's
participation rate (determined under subparagraph (B)) for the preceding
fiscal year does not exceed or equal-
(i) 7 percent if the preceding fiscal year is 1990;
(ii) 7 percent if such year is 1991;
(iii) 11 percent if such year is 1992;
(iv) 11 percent if such year is 1993;
(v) 15 percent if such year is 1994; and
(vi) 20 percent if such year is 1995.
(B)(i) The State's participation rate for a fiscal year shall be the
average of its participation rates for computation periods (as defined in
clause (ii)) in such fiscal year.
(ii) The computation periods shall be-
(I) the fiscal year, in the case of fiscal year 1990,
(II) the first six months, and the seventh through twelfth months, in
the case of fiscal year 1991,
(III) the first three months, the fourth through sixth months, the
seventh through ninth months, and the tenth through twelfth months, in the
case of fiscal years 1992 and 1993, and
(IV) each month, in the case of fiscal years 1994 and 1995.
(iii) The State's participation rate for a computation period shall be the
number, expressed as a percentage, equal to-
(I) the average monthly number of individuals required or allowed by the
State to participate in the program under part F who have participated in
such program in months in the computation period, plus the number of
individuals required or allowed by the State to participate in such
program who have so participated in that month in such period for which
the number of such participants is the greatest, divided by
(II) twice the average monthly number of individuals required to
participate in such period (other than individuals described in
subparagraph (C)(iii)(I) or (D) of section 402(a)(19) with respect to whom
the State has exercised its option to require their participation).
For purposes of this subparagraph, an individual shall not be considered to
have satisfactorily participated in the program under part F solely by
reason of such individual being registered to participate in such program.
(C) Notwithstanding any other provision of this paragraph, no State shall
be subject to payment under this paragraph (in lieu of paragraph (1)(A))
for failing to meet any participation rate required under this paragraph
with respect to any fiscal year before 1991.
(D) For purposes of this paragraph, an individual shall be determined to
have participated in the program under part F, if such individual has
participated in accordance with such requirements, consistent with
regulations of the Secretary, as the State shall establish.
(E) If the Secretary determines that the State has failed to achieve the
participation rate for any fiscal year specified in the numbered clauses of
subparagraph (A), he may waive, in whole or in part, the reduction in the
payment rate otherwise required by such subparagraph if he finds that-
(i) the State is in conformity with section 402(a)(19) and part F;
(ii) the State has made a good faith effort to achieve the applicable
participation rate for such fiscal year; and
(iii) the State has submitted a proposal which is likely to achieve the
applicable participation rate for the current fiscal year and the
subsequent fiscal years (if any) specified therein. 84
(4)(A)(i) Subject to subparagraph (B), in the case of any family eligible
for aid to families with dependent children by reason of the unemployment
of the parent who is the principal earner, the State agency shall require
that at least one parent in any such family participate, for a total of at
least 16 hours a week during any period in which either parent is required
to participate in the program, in a work supplementation program, a
community work experience or other work experience program, on-the-job
training, or a State designed work program approved by the Secretary, as
such programs are described in section 482(d)(1). In the case of a parent
under age 25 who has not completed high school or an equivalent course of
education, the State may require such parent to participate in educational
activities directed at the attainment of a high school diploma (or
equivalent) or another basic education program in lieu of one or more of
the programs specified in the preceding sentence.
(ii) For purposes of clause (i), an individual participating in a
community work experience program under section 482 shall be considered to
have met the requirement of such clause if he participates for the number
of hours in any month equal to the monthly payment of aid to families with
dependent children to the family of which he is a member, divided by the
greater of the Federal or the applicable State minimum wage (and the
portion of such monthly payment for which the State is reimbursed by a
child support collection shall not be taken into account in determining the
number of hours that such individual may be required to work).
(B) The requirement under subparagraph (A) shall not be considered to have
been met by any State if the requirement is not met with respect to the
following percentages of all families in the State eligible for aid to
families with dependent children by reason of the unemployment of the
parent who is the principal earner:
(i) 40 percent, in the case of the average of each month in fiscal year
1994,
(ii) 50 percent, in the case of the average of each month in fiscal year
1995,
(iii) 60 percent, in the case of the average of each month in fiscal
year 1996, and
(iv) 75 percent in the case of the average of each month in each of the
fiscal years 1997 and 1998.
(C) The percentage of participants for any month in a fiscal year for
purposes of the preceding sentence shall equal the average of-
(i) the number of individuals described in subparagraph (A)(i) who have
met the requirement prescribed therein, divided by
(ii) the total number of principal earners described in such
subparagraph (but excluding those in families who have been recipients of
aid for 2 months or less if, during the period that the family received
aid, at least one parent engaged in intensive job search).
(D) If the Secretary determines that the State has failed to meet the
requirement under subparagraph (A) (determined with respect to the
percentages prescribed in subparagraph (B)), he may waive, in whole or in
part, any penalty if he finds that-
(i) the State is operating a program in conformity with section
402(a)(19) and part F,
(ii) the State has made a good faith effort to meet the requirement of
subparagraph (A) but has been unable to do so because of economic
conditions in the State (including significant numbers of recipients
living in remote locations or isolated rural areas where the availability
of work sites is severely limited), or because of rapid and substantial
increases in the caseload that cannot reasonably be planned for, and
(iii) the State has submitted a proposal which is likely to achieve the
required percentage of participants for the subsequent fiscal years. 85
(m) (1) During the 12-month period beginning on July 1, 1988 (in this
subsection referred to as the ""moratorium period''), the Secretary shall
not impose any reductions in payments to States pursuant to subsection (i)
(or prior regulations), or pursuant to any comparable provision of law
relating to the programs under this part in Puerto Rico, Guam, the Virgin
Islands, American Samoa, or the Northern Mariana Islands.
(2) During the moratorium period-
(A) the Secretary and the States shall continue to operate the quality
control systems in effect under this part, and to calculate the error
rates under the provisions referred to in paragraph (1), including the
process of requesting and reviewing waivers; and
(B) the Departmental Grant Appeals Board shall, notwithstanding
paragraph (1), review disallowances for fiscal year 1981 and thereafter
and hear appeals with respect thereto (but collection of disallowances
owed as a result of Departmental Grant Appeals Board decisions shall not
occur).
(n)(1) In addition to any payment under subsection (a) or (l), each State
shall be entitled to payment from the Secretary of an amount equal to the
lesser of-
(A) the Federal medical assistance percentage (as defined in section
1905(b)) of the expenditures by the State in providing child care services
pursuant to section 402(i), and in administering the provision of such
child care services, for any fiscal year; and
(B) the limitation determined under paragraph (2) with respect to the
State for the fiscal year.
(2)(A) The limitation determined under this paragraph with respect to a
State for any fiscal year is the amount that bears the same ratio to the
amount specified in subparagraph (B) for such fiscal year as the number of
children residing in the State in the second preceding fiscal year bears to
the number of children residing in the United States in the second
preceding fiscal year.
(B) The amount specified in this subparagraph is-
(i) $300,000,000 for fiscal year 1991;
(ii) $300,000,000 for fiscal year 1992;
(iii)$300,000,000 for fiscal year 1993;
(iv) $300,000,000 for fiscal year 1994;
(v) $300,000,000 for fiscal year 1995, and for each fiscal year
thereafter.
(C) If the limitation determined under subparagraph (A) with respect to
a State for a fiscal year exceeds the amount paid to the State under this
subsection for the fiscal year, the limitation determined under this
paragraph with respect to the State for the immediately succeeding fiscal
year shall be increased by the amount of such excess.
(3) Amounts appropriated for a fiscal year to carry out this part shall
be made available for payments under this subsection for such fiscal year.
86
OPERATION OF STATE PLANS
Sec. 404 . [42 U.S.C. 604] (a) In the case of any State plan for aid and
services to needy families with children which has been approved by the
Secretary, if the Secretary, after reasonable notice and opportunity for
hearing to the State agency administering or supervising the administration
of such plan, finds-
(1) that the plan has been so changed as to impose any residence
requirement prohibited by section 402(b), or that in the administration of
the plan any such prohibited requirement is imposed, with the knowledge of
such State agency, in a substantial number of cases; or
(2) that in the administration of the plan there is a failure to comply
substantially with any provision required by section 402(a) to be included
in the plan; the Secretary shall notify such State agency that further
payments will not be made to the State (or, in his discretion, that
payments will be limited to categories under or parts of the State plan not
affected by such failure) until the Secretary is satisfied that such
prohibited requirement is no longer so imposed, and that there is no longer
any such failure to comply. Until he is so satisfied he shall make no
further payments to such State (or shall limit payments to categories under
or parts of the State plan not affected by such failure). 87
(b) No payment to which a State is otherwise entitled under this part for
any period before September 1, 1962, shall be withheld by reason of any
action taken pursuant to a State statute which requires that aid be denied
under the State plan approved under this part with respect to a child
because of the conditions in the home in which the child resides; nor shall
any such payment be withheld for any period beginning on or after such date
by reason of any action taken pursuant to such a statute if provision is
otherwise made pursuant to a State statute for adequate care and assistance
with respect to such child.
(c) No State shall be found, prior to January 1, 1977, to have failed
substantially to comply with the requirements of section 402(a)(27) if, in
the judgment of the Secretary, such State is making a good faith effort to
implement the program required by such section.
(d) After December 31, 1976, in the case of any State which is found to
have failed substantially to comply with the requirements of section
402(a)(27), the reduction in any amount payable to such State required to
be imposed under section 403(h) shall be imposed in lieu of any reduction,
with respect to such failure, which would otherwise be required to be
imposed under this section.
USE OF PAYMENTS FOR BENEFIT OF CHILD 88
Sec. 405 . [42 U.S.C. 605] Whenever the State agency has reason to believe
that any payments of aid to families with dependent children made with
respect to a child are not being or may not be used in the best interests
of the child, the State agency may provide for such counseling and guidance
services with respect to the use of such payments and the management of
other funds by the relative receiving such payments as it deems advisable
in order to assure use of such payments in the best interests of such
child, and may provide for advising such relative that continued failure to
so use such payments will result in substitution therefor of protective
payments as provided under section406(b)(2), or in seeking appointment of a
guardian or legal representative as provided in section 1111, or in the
imposition of criminal or civil penalties authorized under State law if it
is determined by a court of competent jurisdiction that such relative is
not using or has not used for the benefit of the child any such payments
made for that purpose; and the provision of such services or advice by the
State agency (or the taking of the action specified in such advice) shall
not serve as a basis for withholding funds from such State under section
404 and shall not prevent such payments with respect to such child from
being considered aid to families with dependent children.
DEFINITIONS
Sec. 406 . [42 U.S.C. 606] When used in this part-
(a) The term ""dependent child'' means a needy child (1) who has been
deprived of parental support or care by reason of the death, continued
absence from the home (other than absence occasioned solely by reason of
the performance of active duty in the uniformed services of the United
States), or physical or mental incapacity of a parent, and who is living
with his father, mother, grandfather, grandmother, brother, sister,
stepfather, stepmother, stepbrother, stepsister, uncle, aunt, first cousin,
nephew, or niece, in a place of residence maintained by one or more of such
relatives as his or their own home, and (2) who is (A) under the age of
eighteen, or (B) at the option of the State, under the age of nineteen and
a full-time student in a secondary school (or in the equivalent level of
vocational or technical training), if, before he attains age nineteen, he
may reasonably be expected to complete the program of such secondary school
(or such training);
(b) The term ""aid to families with dependent children'' means money
payments with respect to a dependent child or dependent children, or, at
the option of the State, a pregnant woman but only if it has been medically
verified that the child is expected to be born in the month such payments
are made or within the three-month period following such month of payment,
and who, if such child had been born and was living with her in the month
of payment, would be eligible for aid to families with dependent children,
and includes (1) money payments to meet the needs of the relative with whom
any dependent child is living (and the spouse of such relative if living
with him and if such relative is the child's parent and the child is a
dependent child by reason of the physical or mental incapacity of a parent
or is a dependent child under section 407), and (2) payments with respect
to any dependent child (including payments to meet the needs of the
relative, and the relative's spouse, with whom such child is living, and
the needs of any other individual living in the same home if such needs are
taken into account in making the determination under section 402(a)(7))
which do not meet the preceding requirements of this subsection, but which
would meet such requirements except that such payments are made to another
individual who (as determined in accordance with standards prescribed by
the Secretary) is interested in or concerned with the welfare of such child
or relative, or are made on behalf of such child or relative directly to a
person furnishing food, living accommodations, or other goods, services, or
items to or for such child, relative, or other individual, but only with
respect to a State whose State plan approved under section 402 includes
provision for-
(A) determination by the State agency that the relative of the child
with respect to whom such payments are made has such inability to manage
funds that making payments to him would be contrary to the welfare of the
child and, therefore, it is necessary to provide such aid with respect to
such child and relative through payments described in this clause (2);
(B) undertaking and continuing special efforts to develop greater
ability on the part of the relative to manage funds in such manner as to
protect the welfare of the family;
(C) periodic review by such State agency of the determination under
clause (A) to ascertain whether conditions justifying such determination
still exist, with provision for termination of such payments if they do
not and for seeking judicial appointment of a guardian or other legal
representative, as described in section 1111, if and when it appears that
the need for such payments is continuing, or is likely to continue, beyond
a period specified by the Secretary; and
(D) opportunity for a fair hearing before the State agency on the
determination referred to in clause (A) for any individual with respect to
whom it is made. Payments with respect to a dependent child which are
intended to enable the recipient to pay for specific goods, services, or
items recognized by the State agency as a part of the child's need under
the State plan may (in the discretion of the State or local agency
administering the plan in the political subdivision) be made, pursuant to a
determination referred to in clause (2)(A), in the form of checks drawn
jointly to the order of the recipient and the person furnishing such goods,
services, or items and negotiable only upon endorsement by both such
recipient and such person; and payments so made shall be considered for all
of the purposes of this part to be payments described in clause (2). 91
Whenever payments with respect to a dependent child are made in the manner
described in clause (2) (including payments described in the preceding
sentence), a statement of the specific reasons for making such payments in
that manner (on which the determination under clause (2)(A) was based)
shall be placed in the file maintained with respect to such child by the
State or local agency administering the State plan in the political
subdivision. Payments of the type described in clause (2) shall not be
subject to the requirements of clauses (A) through (D) of such clause (2),
when they are made in the manner described in clause (2) at the request of
the family member to whom payment would otherwise be made in an
unrestricted manner.
(c) The term ""relative with whom any dependent child is living'' means
the individual who is one of the relatives specified in subsection (a) and
with whom such child is living (within the meaning of such subsection) in a
place of residence maintained by such individual (himself or together with
any one or more of the other relatives so specified) as his (or their) own
home.
[(d) Repealed. 89
(e) (1) The term ""emergency assistance to needy families with children''
means any of the following, furnished for a period not in excess of 30 days
in any 12-month period, in the case of a needy child under the age of 21
who is (or, within such period as may be specified by the Secretary, has
been) living with any of the relatives specified in subsection (a)(1) in a
place of residence maintained by one or more of such relatives as his or
their own home, but only where such child is without available resources,
the payments, care, or services involved are necessary to avoid destitution
of such child or to provide living arrangements in a home for such child,
and such destitution or need for living arrangements did not arise because
such child or relative refused without good cause to accept employment or
training for employment-
(A) money payments, payments in kind, or such other payments as the
State agency may specify with respect to, or medical care or any other
type of remedial care recognized under State law (for which such
individual is not entitled to medical assistance under the State plan
under title XIX) on behalf of, such child or any other member of the
household in which he is living, and
(B) such services as may be specified by the Secretary;
but only with respect to a State whose State plan approved under section
402 includes provision for such assistance.
(2) Emergency assistance as authorized under paragraph (1) may be provided
under the conditions specified in such paragraph to migrant workers with
families in the State or in such part or parts thereof as the State shall
designate. 90
(f) Notwithstanding the provisions of subsection (b), the term ""aid to
families with dependent children'' does not mean payments with respect to a
parent (or other individual whose needs such State determines should be
considered in determining the need of the child or relative claiming aid
under the plan of such State approved under this part) of a child who fails
to cooperate with any agency or official of the State in obtaining such
support payments for such child. Nothing in this subsection shall be
construed to make an otherwise eligible child ineligible for protective
payments because of the failure of such parent (or such other individual)
to so cooperate.
(g) Notwithstanding the provisions of subsection (b), the term ""aid to
families with dependent children'' does not mean any-
(1) amount paid to meet the needs of an unborn child; or
(2) amount paid (or by which a payment is increased) to meet the needs
of a woman occasioned by or resulting from her pregnancy, unless, as has
been medically verified, the woman's child is expected to be born in the
month such payments are made (or increased) or within the three-month
period following such month of payment.
(h) Each dependent child, and each relative with whom such a child is
living (including the spouse of such relative as described in subsection
(b)), who becomes ineligible for aid to families with dependent children as
a result (wholly or partly) of the collection or increased collection of
child or spousal support under part D, and who has received such aid in at
least three of the six months immediately preceding the month in which such
ineligibility begins, shall be deemed to be a recipient of aid to families
with dependent children for purposes of title XIX for an additional four
calendar months beginning with the month in which such ineligibility
begins. 91
DEPENDENT CHILDREN OF UNEMPLOYED PARENTS 92
Sec. 407 . [42 U.S.C. 607] (a) The term ""dependent child'' shall,
notwithstanding section 406(a), include a needy child who meets the
requirements of section 406(a)(2), who has been deprived of parental
support or care by reason of the unemployment (as determined in accordance
with standards prescribed by the Secretary) of the parent who is the
principal earner, and who is living with any of the relatives specified in
section 406(a)(1) in a place of residence maintained by one or more of such
relatives as his (or their) own home.
(b) (1) In providing for the provision of aid to families with dependent
children under the State's plan approved under section 402, in the case of
families that include dependent children within the meaning of subsection
(a) of this section, as required by section 402(a)(41), the State 's plan-
(A) subject to paragraph (2), 93 shall require 94 the payment of aid to
families with dependent children with respect to a dependent child as
defined in subsection (a) when-
(i) whichever of such child's parents is the principal earner has not been
employed (as determined in accordance with standards prescribed by the
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