A bill to amend title IV of the Social Security Act to improve the aid to families with dependent children program by substituting block grants for open-ended Federal matching, to give the States a fiscal incentive to reduce error, waste, and fraud in the aid to families with dependent children program, to provide fiscal relief to the States so as to reduce overall State welfare spending and increase basic benefits for the truly needy, to encourage the States to require work as a condition of eligibility for aid to families with dependent children payments, to establish a demonstration project to provide a pilot test of the States' ability to design and implement their own welfare programs, and for other purposes.
Welfare Improvement Act of 1981 - Amends part A (Aid to Families with Dependent Children) of title IV of the Social Security Act to set forth a new formula for determining the amount of payments to a State under such part. Provides: (1) for an annual increase in such amount based upon the lesser of the percentage increases in the Consumer Price Index or the national wage level; and (2) that such amount shall be changed in accordance with a State's population.
Directs the Secretary of the Treasury to pay to each State with an "excess unemployment percentage" greater than zero, as determined according to this Act, a supplemental grant based on a specified formula.
Permits a State to require any individual whose needs are taken into account in determining AFDC eligibility to work as a condition of AFDC eligibility.
Establishes a five-year, eight-State demonstration project in which payments made to participating States pursuant to the AFDC program may be used without regard to the requirements and limitations otherwise applicable under the AFDC program.
Directs the Advisory Council on Intergovernmental Relations to report to the Secretary of Health and Human Services and to Congress concerning such project.
Became Public Law No: 97-35.
Introduced in House
Introduced in House
Referred to House Committee on Ways and Means.
Referred to Subcommittee on Public Assistance and Unemployment Compensation.
See H.R.3982.
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