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BRIEF SUMMARY OF MAJOR PROVISIONS OF H.R. 10606

PUBLIC ASSISTANCE

A. Increase in Federal matching formula for the aged, blind, and disabled

The Federal matching share in the case of the programs for the aged, the blind, and the disabled would be increased to twenty-nine thirty-fifths of the first $35 of the average monthly payment per recipient and the maximum for matching would be raised to $70 on a permanent basis. Under the present temporary provision, which was effective October 1, 1961, there is Federal matching on four-fifths of the first $31 with a maximum of $66. This provision will expire on June 30, 1962, whereupon the formula will revert to fourfifths of the first $30 with a maximum of $65. The change does not affect the special provision for medical care in the old-age assistance program. (HEW estimate), $161.1 million.1

B. Services and training in the public assistance programs

Cost

Under existing law, a State, at its option, may provide services toward this end under all the public assistance programs except medical assistance for the aged. The Federal Government matches these expenditures on a 50-50 basis, under the provision which governs administrative expenses.

The States would be required to provide certain minimum services for applicants and recipients, which the Secretary would prescribe, to help them to attain self-care (old-age assistance); self-support and self-care (the blind and the disabled); and to strengthen family life (aid to dependent children). There are no minimum required services for medical assistance to the aged.

The bill would authorize 75 percent Federal matching in all public assistance titles for certain services to be specified by the Secretary of Health, Education, and Welfare. These services could apply to applicants and recipients of assistance as well as those "likely to become" or who "have been" recipients, on the request of such persons (within such periods as the Secretary may prescribe). The 75 percent matching would also be available for training personnel who are employed, or who are preparing to work, in State welfare agencies.

Other services which the Secretary does not designate would be continued at 50 percent matching, as would all other administrative costs. Cost (HEW estimate), $40.8 million' (with over half going into the ADC program). C. Changes in the aid to dependent children (ADC) program

1. Additional authority to States to prevent abuses in aid to dependent children payments. It would be provided that various methods (short of denying assistance to the child) may be used by States to see that ADC payments are used in the best interests of the child. It would also be provided that, beginning October 1, 1962, and ending June 30, 1967, payments for up to 5 percent of recipients would be authorized to be made to third parties interested in the welfare of the child where it is determined that the parent is so incapable of managing funds that the child's welfare is affected. Certain safeguards and standards would be prescribed. Cost (HEW estimate), negligible.'

2. Payments on the basis of the unemployment of the parent.-This temporary provision of existing law, which is effective May 1, 1961, to June 30, 1962, would be extended for 5 years and be expanded to cover both parents instead of one as in existing law. A provision would be added which would deny aid to a parent for refusal to accept retraining without good cause.

Under prior law, ADC payments could be made only on the basis of the death, disability, or absence of the parent. Cost (HEW estimate), $85 million (of which $12 million is attributable to the second parent provision).

Cost figure for fiscal 1968.

3. Payments on the basis of the disability of the parent.-Federal matching would be expanded to cover payments for both parents of children who are needy because of the disability of the parent. At the present time the Federal Government matches for one adult recipient only. Cost (HEW estimate) $22 million.

4. Community work and training programs.-The bill would provide that beginning October 1, 1962, for a period of 5 years, Federal matching funds would be available in cases where payments are made under work programs which are a part of the ADC program and meet certain standards. Under interpretation of existing law there can be no matching as to payments made for work by a welfare agency and such payments currently are financed wholly by State and local funds. Cost (HEW estimate), negligible.1

5. Payments to children removed by court order into foster care.-Under temporary existing law, which is effective May 1, 1961, to June 30, 1962, payments can be made to ADC children removed by court order into foster home care. This provision would be made permanent. Payments under prior law were limited to children living with specified relatives. The bill also expands program to include children placed in private child care institutions as well as those receiving family home care as in existing law. Cost (HEW estimate), $4.1 million.1

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D. Other changes in public assistance programs

1. Incentive for employment through consideration of expenses.-The States would be required, in determining the amount of assistance to be provided for the needy aged, blind, disabled, and dependent children, to take into account necessary expenses that may reasonably be attributed to the earning of income. Under current administrative policy, the States may, at their option, consider such expenses.

Also, in determining "need" in the ADC program the States would be allowed to disregard certain earned or other income put aside for the child's future need (e.g., such items as education or preparation for employment). Cost (HEW estimate), negligible.12

2. Optional single State plan for aged, blind, disabled, and medical assistance for the aged. States would be allowed to operate these programs under a single plan. States which select the single plan would become eligible for Federal matching for medical care for recipients of aid to the blind and to the disabled on the same basis as now available for recipients of old-age assistance (i.e., up to $15 a month per recipient for vendor medical care). Such additional matching would not be available if States remained under their separate programs. Administration would be allowed, however, for separate existing blind agencies. Cost (HEW estimate), $7.4 million.13

3. Training of public assistance workers.-The provisions of present law authorizing Federal grants to States to increase the number of adequately trained public welfare personnel to work in public assistance programs, which are due to expire June 30, 1963, would be made permanent, with dollar limitations on authorized appropriations for grants to States for training of public assistance workers-$3.5 million in fiscal 1963 and $5 million a year thereafter. Cost (HEW estimate), negligible.'

4. Assistance to repatriated American citizens.-This provision of existing law, which was effective on June 30, 1961, and will expire on June 30, 1962, permits temporary assistance to citizens returning from foreign countries because of illness, destitution, or crisis. It would be extended for 2 years. Cost (HEW estimate), $400,000.1

5. Demonstration projects.-The bill would permit the Secretary of Health, Education, and Welfare to waive any State plan requirement which he deemed necessary (such as statewide applicability of plan) for pilot or demonstration projects designed to improve the public assistance programs and would provide alternative methods of financing such projects out of public assistance appropriations. Cost (HEW estimate), negligible.'

1 Cost figures for fiscal 1963.

$7 million a year after it goes into effect in July 1963. Increases to $16 million in 1964 and subsequent years.

6. Aid to the blind programs (Missouri and Pennsylvania).—The provision of the 1950 amendments, which granted an exemption to certain aid to the blind programs (in effect at that time) from the income and resources test of Federal law, would be placed on a permanent basis. It has been extended periodically and would, under existing law, expire in 1964.

CHILD WELFARE SERVICES

The authorization for child welfare services would be increased from the present $25 million per year to $30 million for 1963, $35 million in 1964, $40 million in 1965-66, $45 million in 1967-68, and $50 million in 1969 and thereafter. Of the amount between $25 and $35 million, there would be specific earmarking for day care of not more than $5 million in 1963 and not more than $10 million in subsequent years. Cost (HEW estimate), $5 million1 (increasing in subsequent years as noted above).

ADVISORY COUNCIL

The bill provides for an Advisory Council, to be appointed by the Secretary of Health, Education, and Welfare in 1964, to review the status of the public assistance and child welfare services programs and report their findings to the Secretary.

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CHANGES IN EXISTING LAW PROPOSED BY H.R. 10606
as passed by the House of Representatives
PUBLIC ASSISTANCE

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