Welfare Reform Through State Innovation Act

TABLE OF CONTENTS:

Title I: Initiatives to Move Welfare Recipients into the

Work Force

Title II: Initiatives to Strengthen Families and Break

the Cycle of Welfare Dependency

Title III: Initiatives to Diversify and Improve the

Performance of Welfare Services

Title IV: Offsetting Expenditure Reductions

Welfare Reform Through State Innovation Act - States that the purpose of this Act is to implement the demonstration projects established below as part of a comprehensive national program to: (1) terminate part A (Aid to Families with Dependent Children) (AFDC) of title IV of the Social Security Act (SSA) after two years; and (2) make employment available to such families where necessary.

(Sec. 4) Provides for demonstration project approval, evaluation, duration, and implementation when effective in breaking the cycle of welfare dependency, unemployment, and poverty.

(Sec. 5) Authorizes appropriations.

Title I: Initiatives to Move Welfare Recipients into the Work Force - Directs the Secretary of Health and Human Services (NHS) to provide for demonstration projects in States with approved applications which: (1) condition AFDC benefits on school attendance or job training for single parents under age 20 with at least one dependent child but no children under six months; (2) limit the time period for the receipt of such benefits; and (3) generally require the parent to live in an adult-supervised home and receive such benefits through a parent or legal guardian.

(Sec. 101) Requires participating States to make child care available and pay all education and job training costs in order to conduct such a demonstration project.

(Sec. 102) Amends the Job Training Partnership Act to authorize the Secretary to establish a pilot JOB CORPS program targeting young, disadvantaged mothers on AFDC with below school-age children.

Requires such program to include a parents as teachers program designed to educate parents in child development.

(Sec. 103) Directs the Secretary to provide for State demonstration projects which generally require a parent or other relative of a dependent child to undergo as part of the application process, 30 days of assisted job search or substance abuse treatment before the family may receive AFDC.

(Sec. 104) Amends SSA title IV part A to permit States to allow families on AFDC to save up to $10,000 in a qualified education and employment account and still be eligible for AFDC.

(Sec. 105) Amends SSA title IV part A and the Internal Revenue Code to allow various offsets against income for self-employment program participants owning small businesses with regard to purchasing capital equipment, repaying business loans, and retaining cash from the business for future business uses for purposes of determining earned income under the AFDC program.

Directs the Secretary to provide for demonstration projects in States which: (1) establish public-private partnerships for technical assistance to self-employed AFDC recipients; (2) train AFDC recipients as self-employed providers of child care services; and (3) promote ownership of extended family-owned businesses by AFDC recipients.

(Sec. 106) Amends SSA title IV part F (Job Opportunities and Basic Skills Training Program) (JOBS) to emphasize moving people into the work force, then providing post-employment education and training.

(Sec. 107) Directs the Secretary to provide for additional demonstration projects in States which move AFDC recipients into the work force.

Title II: Initiatives to Strengthen Families and Break the Cycle of Welfare Dependency - Directs the Secretary to provide for State demonstration projects which: (1) establish child centered programs through conversion of certain AFDC and JOBS payments into block grants; (2) provide no additional benefits with respect to children born while a family is on AFDC and allow increases in the earned income disregard; (3) provide incentives to marry; (4) reduce AFDC benefits if school attendance is irregular or preventive health care for dependent children is not obtained; (5) increase child support collection; (6) develop community-based programs for teenage pregnancy prevention and family planning; and (7) strengthen families and break the cycle of welfare dependency.

Title III: Initiatives to Diversify and Improve the Performance of Welfare Services - Directs the Secretary to provide for State demonstration projects which: (1) provide placement of AFDC recipients in private sector jobs; and (2) establish performance-based incentives for State public welfare providers.

Title IV: Offsetting Expenditure Reductions - Amends the Food Security Act of 1985 to make certain changes, including elimination of the "three-entity rule," to provide offsetting expenditure reductions.