A bill to amend the Social Security Act to increase Federal payments to States under the AFDC and medicaid programs by an amount equal (in the case of any State) to 50 percent of the non-Federal share of the expenditures involved, and to require that the amount of any such increase be used to reduce the local share of such expenditures.

Amends the Social Security Act to increase Federal payments to States under the program of Aid to Families with Dependent Children and Medicaid by an amount equal (in the case of any State) to 50 percent of the non-Federal share of the expenditures involved, and to require as a condition of any State receiving such increase that the amount of such increase be paid to political subdivisions of the State which participate in the cost of the State plan, such payments being limited to the amount of the financial contribution of such subdivisions to the State plan.