A bill to amend part A of title IV of the Social Security Act to make the program of aid to families with dependent children a wholly Federal program, to be administered by local agencies under federally prescribed terms and conditions (embodying the eligibility formulas currently in effect in the several States but designed to encourage such States to apply nationally uniform standards), with the cost being fully borne by the Federal Government.

Provides that amounts appropriated for aid to families with dependent children under Title IV of the Social Security Act shall be used by the Secretary of Health, Education and Welfare in making grants to local agencies which are providing aid and services to needy families with children in accordance with plans developed by the Secretary under this Act.

Requires such plans to include provisions designed: (1) to safeguard and promote the welfare of the dependent children involved; (2) to insure fair and equitable treatment of all applicants for and recipients of aid to families with dependent children; (3) to insure that aid to families with dependent children will be furnished with reasonable promptness to all eligible individuals; (4) to provide for the referral to the Secretary of Labor or his representative, for participation under work incentive programs, of appropriate dependent children and relatives and other appropriate individuals living in the same home; and (5) to require effective and appropriate methods of administration of the program in each locality.

States that each plan developed by the Secretary shall provide that the eligibility of such individuals and families for aid to families with dependent children under the plan, and the amount of such aid, shall be determined by the State or local agency receiving the payment of aid. Provides that such payment of aid to an eligible individual or families shall not be less than the national average amount paid to individuals or families similarly situated during the calendar quarter preceding the quarter in which this Act is enacted.

Requires each local agency to submit such reports to the Secretary as the Secretary may require.

Directs the Secretary of the Treasury to pay to each local agency administering the program under this act an amount equal to: (1) the total amount expended during such quarter as aid to families with dependent children under the program in the locality involved; and (2) the total amount expended during such quarter as found necessary by the Secretary of Health, Education, and Welfare for the proper and efficient administration of the applicable plan and the program in such locality or localities.

States that, in order to assure that the purpose of this Act is being carried out effectively and without discrimination between applicants and recipients in different states, the Secretary shall from time to time determine and promulgate: (1) the minimum amount of aid to families with dependent children which (with such adjustments based on other income and resources as may be required by the Secretary) would have to be paid to eligible recipients under the program under this Act; and (2) the manner in which other income and resources should be taken into account in determining need for aid under the program under this part and the other conditions which it might be appropriate to impose in determining elibility for such aid.

Requires a non-Federal contribution to work incentive programs from appropriate agencies of the State or private organizations of twenty percent of the cost of such programs. Provides that if such contribution is not made the Secretary of Health, Education and Welfare may take such action as may be necessary to collect it.