A bill to amend Title XVI of the Social Security Act to permit States to establish work program demonstration projects under the Aid to Families with Dependent Children program.

Authorizes a State which has an approved plan under Part A of Title IV (Aid to Families with Dependent Children) of the Social Security Act to establish and conduct for not longer than two years not more than three work demonstration projects designed to train recipients of aid under such Title for gainful employment.

Requires a State conducting such a project: (1) to conduct only one such project on a statewide basis; (2) to provide for safe and reasonable working conditions; (3) to prohibit the displacement of employed workers to accommodate participants in the project; (4) to provide workmen's compensation to all participants; (5) to provide that participation in such project be voluntary.

Permits a State to waive requirements under Title IV relating to statewide participation in programs, administration of programs by a single State agency, and disregard of earned income in determining eligibility for benefits under such Title.