75 STAT. 16. TEMPORARY INCREASE IN RATE OF TAX Temporary Increase SEC. 14. (a) Section 3301 of the Internal Revenue Code of 1954 26 USC 3301. (relating to the rate of the Federal unemployment tax) is amended by adding at the end thereof the following new sentence: "In the case of wages paid during the calendar years 1962 and 1963, the rate of such tax shall be 3.5 percent in lieu of 3.1 percent." No Change in Credits (b) Section 3302(d)(1) of such Code (relating to credits against 26 USC 3302. tax) is amended to read as follows: "(1) RATE OF TAX DEEMED TO BE 3 PERCENT. In applying subsection (c), the tax imposed by section 3301 shall be computed at the rate of 3 percent in lieu of 3.1 percent (or, in the case of the tax imposed with respect to the calendar years 1962 and 1963, in lieu of 3.5 percent)." SEC. 15. Notwithstanding section 901 (c) (1) (A) of the Social Se curity Act, the limitation on the amount authorized to be made avail- 42 USC 1101. able for the fiscal years ending on June 30, 1961, and 1962, for the purposes specified in such section 901 (c) (1) (A) is hereby increased to (1) $385,000,000 for the fiscal year ending June 30, 1961, and Approved March 24, 1961. 87th Congress, H. R. 4884 May 8, 1961 AN ACT To amend title IV of the Social Security Act to authorize Federal financial participation in aid to dependent children of unemployed parents, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That title IV of Social security. the Social Security Act is amended by adding at the end thereof the Aid to dependfollowing new section: "DEPENDENT CHILDREN OF UNEMPLOYED PARENTS "SEC. 407. Effective for the period beginning May 1, 1961, and ending with the close of June 30, 1962, the term 'dependent child' shall, notwithstanding section 406(a), include a needy child under the age of eighteen who has been deprived of parental support or care by reason of the unemployment (as defined by the State) of a parent and who is living with any of the relatives specified in section 406 (a) in a place of residence maintained by one or more of such relatives as his (or their) own home, but only with respect to a State whose State plan approved under section 402 "(1) includes aid for any such child, and 66 "(A) provision for entering into cooperative arrangements with the system of public employment offices in the State looking toward employment of the unemployed parents of such children, including appropriate provision for registration and periodic reregistration of the unemployed parent of any such child and for maximum utilization of the job placement services and other services and facilities of such offices, and "(B) provisions to assure that aid to dependent children is not provided to any such child or relative if, and for as long as, the unemployed parent refuses without good cause to accept employment, in which he is able to engage, which (i) is offered through such public employment offices, or (ii) is otherwise offered by an employer if the offer is determined by the State or local agency administering the State plan, after notification by such employer, to be a bona fide offer of such employment, and "(3) includes provision for entering into cooperative arrangements with the State agency responsible for administering or supervising the administration of vocational education in the State, looking toward maximum utilization of available public vocational education services and facilities in the State in order to encourage the retraining of individuals capable of being retrained. For purposes of the preceding sentence, a State plan may, at the option of the State, provide for the denial of all (or any part) of the aid under the plan to which any child or relative might otherwise be entitled for any month, if the unemployed parent of such child receives unemployment compensation under an unemployment compensation law of a State or of the United States for any week any part of which is included in such month." SEC. 2. Title IV of the Social Security Act is further amended by adding after section 407 (added by the first section of this Act) the following new section: ent children. 42 USC 606. 42 USC 602. 75 STAT. 75. 75 STAT. 76. 42 USC 606. 42 USC 602. 75 STAT. 76. 75 STAT. 77. 42 USC 603. 72 Stat. 1053. 42 USC 722. 70 Stat. 851. 42 USC 906. Pub. Law 87-31 May 8, 1961 "FEDERAL PAYMENTS FOR FOSTER HOME CARE OF DEPENDENT CHILDREN "SEC. 408. Effective for the period beginning May 1, 1961, and ending with the close of June 30, 1962 "(a) the term 'dependent child' shall, notwithstanding section 406(a), also include a child (1) who would meet the requirements of such section 406(a) or of section 407 except for his removal after April 30, 1961, from the home of a relative (specified in such section 406 (a)) as a result of a judicial determination to the effect that continuation therein would be contrary to the welfare of such child, (2) for whose placement and care the State or local agency administering the State plan approved under section 402 is responsible, (3) who has been placed in a foster family home as a result of such determination, and (4) who received aid under such State plan in or for the month in which court proceedings leading to such determination were initiated; "(b) the term 'aid to dependent children' shall, notwithstanding section 406(b), include also foster care in behalf of a child described in paragraph (a) of this section in the foster family home of any individual; "(c) the number of individuals counted under clause (A) of section 403 (a) (1) for any month shall include individuals (not otherwise included under such clause) with respect to whom expenditures were made in such month as aid to dependent children in the form of foster care; and "(d) services described in paragraph (f) (2) of this section shall be considered as part of the administration of the State plan for purposes of section 403 (a) (3) ; but only with respect to a State whose State plan approved under section 402 "(e) includes aid for any child described in paragraph (a) of this section, and "(f) includes provision for (1) development of a plan for each such child (including periodic review of the necessity for the child's being in a foster family home) to assure that he receives proper care and that services are provided which are designed to improve the conditions in the home from which he was removed or to otherwise make possible his being placed in the home of a relative specified in section 406(a), and (2) use by the State or local agency administering the State plan, to the maximum extent practicable, in placing such a child in a foster family home, of the services of employees, of the State public-welfare agency referred to in section 522(a) (relating to allotments to States for child welfare services under part 3 of title V) or of any local agency participating in the administration of the plan referred to in such section, who perform functions in the administration of such plan. For purposes of this section, the term 'foster family home' means a foster family home for children which is licensed by the State in which it is situated or has been approved, by the agency of such State responsible for licensing homes of this type, as meeting the standards established for such licensing." SEC. 3. (a) Subsection (a) of section 705 of the Social Security Act is amended by striking out "four succeeding fiscal years" and inserting in lieu thereof "five succeeding fiscal years". (b) Effective with respect to payments from allotments from appropriations made for fiscal years beginning after June 30, 1961, subsection (c) of such section is amended by striking out "80 per May 8, 1961 Pub. Law 87-31 centum of the total of its expenditures in carrying out the purposes of this section" and inserting in lieu thereof "its costs of carrying out the purposes of this section". SEC. 4. Section 404 of the Social Security Act is amended by insert- 42 USC 604. ing "(a)" after "404." and by adding at the end thereof the following new subsection: "(b) No payment to which a State is otherwise entitled under this title for any period before September 1, 1962, shall be withheld by reason of any action taken pursuant to a State statute which requires that aid be denied under the State plan approved under this title with respect to a child because of the conditions in the home in which the child resides." SEC. 5. (a) Subparagraph (C) of section 3(a)(1) of the Social Security Act is amended by striking out "$77" and "$12" and inserting 74 Stat. 990. in lieu thereof "$80" and "$15", respectively. (b) Subparagraph (B) of section 3 (a) (2) of such Act is amended by striking out "$41" and "$6" and inserting in lieu thereof "$42.50" and "$7.50", respectively. (c) The amendments made by subsections (a) and (b) shall apply in the case of expenditures made after June 30, 1961, under a State plan approved under title I of the Social Security Act. SEC. 6. (a) The phrase "shall not exceed $9,000,000" in section 1108 of the Social Security Act is (1) effective only for the fiscal year ending June 30, 1961, amended to read "shall not exceed $9,075,000"; (2) effective only for the fiscal year ending June 30, 1962, amended to read "shall not exceed $9,425,000"; (3) effective for fiscal years ending after June 30, 1962, amended to read "shall not exceed $9,125,000". (b) Effective for fiscal years ending after June 30, 1961, such section 1108 is further amended by striking out "$500,000", "$315,000", "$15,000", "$420,000", and "$20,000" and inserting in lieu thereof "$625,000", "$318,750", "$18,750", "$425,000", and "$25,000", respectively. 42 USC 303. 75 STAT. 77. 75 STAT. 78. 42 USC 301 49 Stat. 620. 306. 42 USC 1308. SEC. 7. Section 901 (c) (1) (B) of the Social Security Act is amended 74 Stat. 971. by adding at the end thereof the following sentence: "The term 'necessary expenses' as used in this subparagraph (B) Approved May 8, 1961. 42 USC 1101. 87th Congress, H. R. 6027 June 30, 1961 An Act 75 STAT. 131. To improve benefits under the old-age, survivors, and disability insurance program by increasing the minimum benefits and aged widow's benefits and by making additional persons eligible for benefits under the program, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may Social Security be cited as the "Social Security Amendments of 1961”. TITLE I—AMENDMENTS TO TITLE II OF THE INCREASE IN MINIMUM BENEFITS SEC. 101. (a) The table in section 215 (a) of the Social Security Act is amended by striking out all the figures in columns I, II, III, IV, and V down through the line which reads Amendments of 1961. 72 Stat. 1013. 42 USC 415. (b) The amendment made by subsection (a) shall apply only in the case of monthly insurance benefits under title II of the Social Security Act for months beginning on or after the effective date of this title, 42 USC 401-425. and in the case of lump-sum death payments under such title with respect to deaths on or after such effective date. REDUCED BENEFITS FOR MEN AT AGE 62 SEC. 102. (a) Section 202 of the Social Security Act is amended by 42 USC 402. striking out "retirement age" and "retirement age (as defined in section 216 (a))" each place they appear therein and inserting in lieu thereof "age 62". (b) (1) Subsections (q) and (r) of section 202 of such Act are amended to read as follows: "Adjustment of Old-Age, Wife's, or Husband's Insurance Benefit Amounts in Accordance With Age of Beneficiary "(q) (1) If the first month for which an individual is entitled to an old-age, wife's, or husband's insurance benefit is a month before the month in which such individual attains age 65, the amount of such benefit for each month shall, subject to the succeeding paragraphs of this subsection, be reduced by "(A) 5% of 1 percent of such amount if such benefit is an oldage insurance benefit, or 2536 of 1 percent of such amount if such benefit is a wife's or husband's insurance benefit; multiplied by "(B) (i) the number of months in the reduction period for such benefit (determined under paragraph (5)), if such benefit is for a month before the month in which such individual attains age 65, or "(ii) the number of months in the adjusted reduction period for such benefit (determined under paragraph (6)), if such benefit is for the month in which such individual attains age 65 or for any other month thereafter. 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