Noncitizen Benefit Clarification and Other Technical Amendments Act of1998

Noncitizen Benefit Clarification and Other Technical Amendments Act of 1998 - Amends the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRAWORA) to provide that the new restrictions it imposes on alien eligibility for Supplemental Security Income (SSI) under title XVI of the Social Security Act (SSA) (and thus Medicaid under SSA title XIX) shall not apply to a nonqualified alien who was receiving such benefits on August 22, 1996 (the date of enactment of PRAWORA).

(Sec. 3) Amends the North American Free Trade Agreement Implementation Act (NAFTA) to permanently extend the authorization of the Self-Employment Assistance programs.

(Sec. 4) Amends SSA title IV part D (Child Support and Establishment of Paternity) to direct the Secretary of Health and Human Services to reduce, by 20 percent, the penalty for State failure to meet the deadline for compliance with child support data processing and information retrieval requirements, for each performance measure under the child support enforcement incentive payment system for which the State does achieve maximum performance.

Amends the Child Support Performance and Incentive Act of 1998 to amend the effective date for State enactment of certain medical child support requirements (in order to allow State legislatures that meet biennially to pass such laws after October 1, 2001).

(Sec. 5) Amends PRAWORA to allow nonresident alien professionals to renew their U.S. professional licenses.

(Sec. 6) Amends SSA title IV part A (Temporary Assistance for Needy Families) with regard to welfare-to-work grants to eliminate the one year obligation requirement and allow a State to retain certain funds reserved for special projects (or for States small enough to have only one Service Delivery Area), without passing them through to a sub-State entity, even if all the money has not been obligated each fiscal year.

(Sec. 7) Amends SSA title XVI to exclude from SSI eligibility and Medicaid benefit calculations up to $2,000 in cash awards made by tax-exempt organizations to children with life-threatening conditions.

(Sec. 8) Amends part A (General Provisions) of SSA title XI to authorize the Social Security Administration to recover SSI overpayments by offsetting up to ten percent per month of any Old Age, Survivors and Disability Insurance benefits under SSA title II.