A bill to amend the Social Security Act to provide for a demonstration of the extent to which eliminating the 100-hour rule under the AFDC-U program, and requiring parents under such program to accept any reasonable job offers while preserving the eligibility of their families, would effectively encourage such parents to enter the permanent work force and thereby significantly reduce program costs.

Amends part A (General Provisions) of title XI of the Social Security Act to provide for a demonstration program which would require unemployed parents from families receiving aid under part A (Aid to Families with Dependent Children) of title IV of such Act to accept any reasonable full- or part-time job offered, without regard to the amount of the parent's resulting earnings as compared to the level of the family's aid. Requires the family's AFDC eligibility to be preserved notwithstanding a parent's resulting earnings, so long as earnings do not exceed the State's standard of need, without regard to the 100-hour rule.

Requires a State desiring to establish and conduct a project to submit an application to the Secretary of Health and Human Services. Sets forth requirements a project must meet in order to be approved. Permits approval of a project only if the county or political subdivision within which the project will be conducted has had an unemployment rate of at least ten percent in the immediately preceding four quarters, and: (1) at least 20 percent of the population is living below poverty level; (2) at least 20 percent of the population is receiving public assistance; and (3) at least 20 percent of the AFDC families are receiving aid under provisions making such aid available to families with unemployed parents.

Requires: (1) States and political subdivisions to report to the Secretary; and (2) the Secretary to report to the Congress.