Family Investment Act of 1987

Family Investment Act of 1987 - Amends part A (Aid to Families with Dependent Children) (AFDC) of title IV of the Social Security Act to authorize the appropriation for each fiscal year of a sum sufficient for the operation of State family investment plans approved by the Secretary of Health and Human Services. Sets forth the prerequisites for plan approval, including the requirement that such plans provide family living standard supplement payments covering the cost of basic necessities to all low-income families with dependent children residing in the State.

Requires the Secretary, within one year of this Act's enactment, to publish a uniform national methodology, developed by the National Academy of Sciences, which calculates family living standards taking into account cost variations among and within States. Sets the amount of assistance paid to a family at the difference between the applicable living standard and the family's income, excluding 25 percent of the family's earned income from such equation. Authorizes States to phase in the full family living standard within ten years, but prohibits family benefit payments from being reduced to a level below that which would have been payable under the Food Stamp program (of the Food Stamp Act of 1977), the Low-income Energy Assistance program (of the Low-income Home Energy Assistance Act of 1981), and the current AFDC program had such programs not been supplanted by this Act's benefit program. Directs States to regularly update and adjust family income standards and supplement payments.

Conditions eligibility for family living standard supplement payments on all physically and mentally capable adults, with certain exceptions, in low-income families with children participating in work, job-training, education, or related activities to the extent the State provides adequate child care services. Directs States to assign a case manager to each family seeking assistance and provide for the assessment of each family's needs and resources. Provides that such assessment shall be the basis of an agreement between the State and the family receiving assistance which sets forth the education, training, work activities, and community services which adults in the family are expected to engage in or perform pursuant to a plan aimed at the family's maximum potential for self-sufficiency and welfare independence. Requires such agreement to be reviewed and renegotiated at least once every six months. Directs States to give priority in education, training, employment, and case management services to long-term welfare recipients and those at greatest risk of long-term dependency.

Authorizes States to penalize parents who do not comply with their agreement with the State by requiring mandatory work in exchange for benefits, issuing vouchers in lieu of cash, or, as a last resort, reducing benefits for adults. Prohibits States from requiring an individual to work at a job that pays or has a value below the minimum wage or the prevailing wage for that job, whichever is higher. Authorizes States to place an individual in community work when other work cannot be found, provided the community work is consistent with the job training he or she received.

Directs States to provide child care and Medicaid (title XIX of the Act) services to all individuals participating in education, training, employment, or community services under this Act and continues their eligibility for such services for one year after the family's eligibility for family living standard supplements ends.

Reimburses States for 75 percent of the cost of providing family living standard supplement payments and operating welfare-to-work programs, and 50 percent of the administrative costs of such benefit and work programs.

Sets forth miscellaneous and administrative provisions.

Authorizes States to: (1) provide counseling and guidance services to parents or relatives who are not using supplement payments in the best interests of the child or children involved; and (2) advise such parents or relatives that continued misdirection of such payments will result in sanctions.

Amends part D (Child Support and Establishment of Paternity) of title IV of the Act to exclude the cost of making paternity determinations from the formula used to determine the amount of the incentive payment to a State for collecting child support payments.