A bill to amend part A of title IV of the Social Security Act to deny Federal payment of administrative costs under the AFDC program to States providing for State or local taxation of social security benefits.

Amends part A (Aid to Families with Dependent Children) (AFDC) of title IV of the Social Security Act to deny Federal payments for AFDC program administrative costs to States in which State or local taxes are imposed on benefits under title II (Old Age, Survivors and Disability Insurance) of the Act.