Federal Assistance for Community Services Act

Amends Title XX (Grants to States for Services) of the Social Security Act to increase the Federal share of expenditures for such services to include the entire cost of such services.

Increases from 50 percent to 75 percent the portion of the expenditures made to a State for social services which must be spent for families or individuals with incomes below the poverty line as determined for the State or for families or individuals who receive benefits under the programs of aid to families with dependent children, supplemental security income, or medicaid.

Eliminates the requirement for Federal standards for State-operated child day care centers. Requires the States to establish and enforce Statewide standards for day care facilities. Directs the Secretary of Health, Education, and Welfare to submit to Congress a model law or set of standards recommended for adoption by the States to govern the provision of day care services.

Repeals the prohibition against payments to States to cover the cost of educational services provided by the State without regard to cost or to the income of the beneficaries of such services.

Authorizes payments to States for services to individuals in hospitals, skilled nursing facilities, intermediate care facilities, or foster homes. Continues the prohibition against payments to States for services to individuals in prison.

Repeals the prohibition against payments to States for services to individuals who are eligible to receive payments under the medicare program.

Repeals the requirement for approval of all State plans for social services by the Secretary of Health, Education, and Welfare. Requires States to conduct an annual audit of any plan of services under this Act. Requires an annual assessment of the implementation of such plan by each State. Directs the annual publication of the reports of such audits and assessments.

Extends the prohibition against discrimination based on race, color, or national origin under any program receiving Federal financial assistance to include a prohibition on discrimination based on sex.