to individuals who are or, within such period or periods as the Secretary may prescribe, have been or are likely to become applicants for or recipients of assistance under the plan; plus

"(C) one-half of the remainder of such expenditures.

The services referred to in paragraph (4) (A) and (B) of the preceding sentence shall include only

“(5) services provided by the staff of the State agency, or of the local agency administering the State plan in the political subdivision, and

"(6) subject to limitations prescribed by the Secretary, services which in the judgment of the State agency cannot be as economically or as effectively provided by the staff of such State or local agency and are not otherwise reasonably available to individuals in need of them, and which are provided by the State agency by contract with nonprofit private agencies. and

"(7) subject to limitations prescribed by the Secretary, services which in the judgment of the State agency cannot be as economically or as effectively provided by the staff of such State or local agency and are not otherwise reasonably available to individuals in need of them, and which are provided, pursuant to agreement with the State agency, by the State health authority or the State agency or agencies administering or supervising the administration of the State plan approved under the Vocational Rehabilitation Act or by any other State agency which the Secretary may determine to be appropriate (whether provided by its staff or by contract with public (local) or nonprofit private agencies).

The portion of the amount expended for administration of the State plan to which such paragraph (4)(A) applies and the portion thereof to which paragraph (4) (B) and (C) of such sentence applies shall be determined in accordance with such methods and procedures as may be permitted by the Secretary." (2) Section 403(a) of such Act is amended by striking out clause (3) and inserting in lieu thereof: “(3) in the case of any State, an amount equal to the sum of the following proportions of the total amounts expended during such quarter as found necessary by the Secretary of Health, Education, and Welfare for the proper and efficient administration of the State plan

“(A) 75 per centum of such expenditures which are for—

"(i) services which are prescribed pursuant to section 402 (a) (12) and are provided (in accordance with the next sentence) to any relative, specified in section 406 (a), with whom any dependent child (applying for or receiving aid to families with dependent children) is living in order to help such relative attain or retain capability for self-support or self-care, or services which are so prescribed and so provided in order to maintain and strengthen family life for any such child, or

"(ii) other services, specified by the Secretary as likely to prevent or reduce dependency, so provided to any such child or relative, or

"(iii) such of the services prescribed pursuant to section 402(a) (12), and of the services specified as provided in clause (ii), as the Secretary may specify as appropriate for any relative, specified in section 406 (a), with whom any child (who, within such period or periods as the Secretary may prescribe, has been or is likely to become an applicant for or recipient of aid to families with dependent children) is living, or as appropriate for such a child, and which are provided to such relative or child in accordance with the next sentence, or

"(iv) the training of personnel employed or preparing for employment by the State agency or by the local agency administering the plan in the political subdivision; plus

"(B) one-half of such expenditures (not included under clause (A)) for services provided (in accordance with the next sentence) to any child who is or, within such period or periods as the Secretary may prescribe, has been or is likely to become an applicant for or recipient of aid to families with dependent children, or so provided to any relative, specified in section 406 (a), with whom such a child is living; plus

"(C) one-half of the remainder of such expenditures.

The services referred to in clause (3) (A) and (B) of the preceding sentence shall include only

"(4) services provided by the staff of the State agency, or of the local agency administering the State plan in the political subdivision, and

8011862-2

"(5) subject to limitations prescribed by the Secretary, services which in the judgment of the State agency cannot be as economically or as effectively provided by the staff of such State or local agency and are not otherwise reasonably available to individuals in need of them, and which are provided by the State agency by contract with nonprofit private agencies, and

"(6) subject to limitations prescribed by the Secretary, services which in the judgment of the State agency cannot be as economically or as effectively provided by the staff of such State or local agency and are not otherwise reasonably available to individuals in need of them, and which are provided, pursuant to agreement with the State agency, by the State health authority or the State agency or agencies administering or supervising the administration of the State plan approved under the Vocational Rehabilitation Act or by any other State agency which the Secretary may determine to be appropriate (whether provided by its staff or by contract with public (local) or nonprofit private agencies).

The portion of the amount expended for administration of the State plan to which such clause (3) (A) applies and the portion thereof to which clause (3) (B) and (C) of such sentence applies shall be determined in accordance with such methods and procedures as may be permitted by the Secretary."

(3) Section 1003 (a) of such Act is amended by striking out clause (3) and inserting in lieu thereof: "(3) in the case of any State, an amount equal to the sum of the following proportions of the total amounts expended during such quarter as found necessary by the Secretary of Health, Education, and Welfare for the proper and efficient administration of the State plan

(A) 75 per centum of such expenditures which are for

"(i) services which are prescribed pursuant to section 1002(a) (13) and are provided (in accordance with the next sentence) to applicants for or recipients of aid to the blind to help them attain or retain capability for self-support or self-care, or

"(ii) other services, specified by the Secretary as likely to prevent or reduce dependency, so provided to such applicants or recipients, or "(iii) such of the services prescribed pursuant to section 1002 (a) (13), and of the services specified as provided in clause (ii), as the Secretary may specify as appropriate for individuals who, within such period or periods as the Secretary may prescribe, have been or are likely to become applicants for or recipients of aid to the blind, and which are provided to such individuals in accordance with the next sentence, or

"(iv) the training of personnel employed or preparing for employment by the State agency or by the local agency administering the plan in the political subdivision; plus

"(B) one-half of such expenditures (not included under clause (A)) for services provided (in accordance with the next sentence) to individuals who are or, within such period or periods as the Secretary may prescribe, have been or are likely to become applicants for or recipients of aid to the blind; plus

"(C) one-half of the remainder of such expenditures.

The services referred to in clause (3) (A) and (B) of the preceding sentence shall include only

"(4) services provided by the staff of the State agency, or of the local agency administering the State plan in the political subdivision, and

"(5) subject to limitations prescribed by the Secretary, services which in the judgment of the State agency cannot be as economically or as effectively provided by the staff of such State or local agency and are not otherwise reasonably available to individuals in need of them, and which are provided by the State agency by contract with nonprofit private agencies, and

"(6) subject to limitations prescribed by the Secretary, services which in the judgment of the State agency cannot be as economically or as effectively provided by the staff of such State or local agency and are not otherwise reasonably available to individuals in need of them, and which are provided pursuant to agreement with the State agency, by the State health authority or the State agency or agencies administering or supervising the administration of the State plan approved under the Vocational Rehabilitation Act or by any other State agency which the Secretary may determine to be appropriate (whether provided by its staff or by contract with public (local) or nonprofit private agencies).

The portion of the amount expended for administration of the State plan to which such clause (3) (A) applies and the portion thereof to which clause (3) (B) and (C) of such sentence applies shall be determined in accordance with such methods and procedures as may be permitted by the Secretary."

(4) Section 1403 (a) of such Act is amended by striking out clause (3) and inserting in lieu thereof: "(3) in the case of any State, an amount equal to the sum of the following proportions of the total amounts expended during such quarter as found necessary by the Secretary of Health, Education, and Welfare for the proper and efficient administration of the State plan-

"(A) 75 per centum of such expenditures which are for

"(i) services which are prescribed pursuant to section 1402(a) (12) and are provided (in accordance with the next sentence) to applicants for or recipients of aid to the permanently and totally disabled to help them attain or retain capability for self-support or self-care, or

"(ii) other services, specified by the Secretary as likely to prevent or reduce dependency, so provided to such applicants or recipients, or "(iii) such of the services prescribed pursuant to section 1402(a) (12), and of the services specified as provided in clause (ii), as the Secretary may specify as appropriate for individuals who, within such period or periods as the Secretary may prescribe, have been or are likely to become applicants for or recipients of aid to the permanently and totally disabled, and which are provided to such individuals in accordance with the next sentence, or

"(iv) the training of personnel employed or preparing for employment by the State agency or by the local agency administering the plan in the political subdivision; plus

"(B) one-half of such expenditures (not included under subparagraph (A)) for services provided (in accordance with the next sentence) to individuals who are or, within such period or periods as the Secretary may prescribe, have been or are likely to become applicants for or recipients of aid to the permanently and totally disabled; plus

"(C) one-half of the remainder of such expenditures.

The services referred to in clause (3) (A) and (B) of the preceding sentence shall include only

"(4) services provided by the staff of the State agency, or of the local agency administering the State plan in the political subdivision, and

"(5) subject to limitations prescribed by the Secretary, services which in the judgment of the State agency cannot be as economically or as effectively provided by the staff of such State or local agency and are not otherwise reasonably available to individuals in need of them, and which are provided by the State agency by contract with nonprofit private agencies, and

"(6) subject to limitations prescribed by the Secretary, services which in the judgment of the State agency cannot be as economically or as effectively provided by the staff of such State or local agency and are not otherwise reasonably available to individuals in need of them, and which are provided, pursuant to agreement with the State agency, by the State health authority or the State agency or agencies administering or supervising the administration of the State plan approved under the Vocational Rehabilitation Act or by any other State agency which the Secretary may determine to be appropriate (whether provided by its staff or by contract with public (local) or nonprofit private agencies).

The portion of the amount expended for administration of the State plan to which such clause (3) (A) applies and the portion thereof to which clause (3) (B) and (C) of such sentence applies shall be determined in accordance with such methods and procedures as may be permitted by the Secretary."

State Plan Provisions for Services

(b) (1) Section 2(a) of such Act is amended by striking out paragraph (10) (C), by inserting "and" after the semicolon at the end of paragraph (10) (A), by redesignating paragraphs (10) and (11) as paragraphs (11) and (12), respectively, and by inserting after paragraph (9) the following new paragraph:

"(10) provide that the State agency shall make available to applicants for or recipients of assistance under the plan at least those services to help them attain or retain capability for self-care which are prescribed by the Secretary; and include a description of the steps taken to assure, in the provision of these and any other services which the State agency makes

available to individuals under the State plan, maximum utilization of other agencies providing similar or related services ;".

(2) Section 402 (a) (12) of such Act is amended to read as follows: "(12) provide that the State agency shall make available at least those services to maintain and strengthen family life for children, and to help relatives specified in section 406 (a) with whom children (who are applicants for or recipients of aid to families with dependent children) are living to attain or retain capability for self-support or self-care, which are prescribed by the Secretary; and include a description of the steps taken to assure, in the provision of these and any other services which the State agency makes available to individuals under the State plan, maximum utilization of other agencies providing similar or related services".

(3) Section 1002 (a) (13) of such Act is amended to read as follows: "(13) provide that the State agency shall make available to applicants for or recipients of aid to the blind at least those services to help them attain or retain capability for self-support or self-care which are prescribed by the Secretary; and include a description of the steps taken to assure, in the provision of these and any other services which the State agency makes available to individuals under the State plan, maximum utilization of other agencies providing similar or related services".

(4) Section 1402 (a) (12) of such Act is amended to read as follows: "(12) provide that the State agency shall make available to applicants for or recipients of aid to the permanently and totally disabled at least those services to help them attain or retain capability for self-support or self-care which are prescribed by the Secretary; and include a description of the steps taken to assure, in the provision of these and any other services which the State agency makes available to individuals under the State plan, maximum utilization of other agencies providing similar or related services".

EXPANSION AND IMPROVEMENT OF CHILD WELFARE SERVICES

Increase in Authorization of Appropriations

SEC. 102. (a) Section 521 of the Social Security Act is amended by striking out "there is hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June 30, 1961, the sum of $25,000,000" and inserting in lieu thereof "there is hereby authorized to be appropriated $25,000,000 each for the fiscal year ending June 30, 1961, and the succeeding fiscal year, $30,000,000 for the fiscal year ending June 30, 1963, $35,000,000 for the fiscal year ending June 30, 1964, $40,000,000 each for the fiscal year ending June 30, 1965, and the succeeding fiscal year, $45,000,000 each for the fiscal year ending June 30, 1967, and the succeeding fiscal year, and $50,000,000 each for the fiscal year ending June 30, 1969, and succeeding fiscal years".

Coordination With Dependent Children Program and Extension of Child Welfare Services

(b) (1) Section 523 (a) of such Act is amended by striking out "each State with a plan for child-welfare services developed as provided in this part an amount equal to the Federal share" and inserting in lieu thereof "each State

"(1) with a plan for child-welfare services which has been developed as provided in this part and which provides for coordination between the services provided under such plan and the services provided for children under the State plan approved under title IV, with a view to provision of welfare and related services which will best promote the welfare of such children and their families, and

"(2) which makes a satisfactory showing that the State is extending the provision of child-welfare services in the State, with priority being given to communities with the greatest need for such services, after giving consideration to their relative financial need, and with a view to making available by July 1, 1975, in all political subdivisions of the State, for all children in need thereof, child-welfare services provided by the staff of the State public welfare agency (or of the local agency participating in the administration of the plan in the political subdivision), who shall, to the extent feasible, be trained child-welfare personnel, and

"(3) with a plan for child-welfare services so developed which provides, with respect to day care provided under the plan, for cooperative arrangements with the State health authority and the State agency primarily responsible for State supervision of public schools to assure maximum utilization of such agencies in the provision of necessary health services and education for children receiving such day care,

an amount equal to the Federal share".

(2) Such section 523(a) is further amended by striking out "costs of district, county, or other local child-welfare services" and inserting in lieu thereof "costs of State, district, county, or other local child-welfare services" and by striking out "runaway child who has not attained the age of eighteen" and inserting in lieu thereof “runaway child".

Allotments for Day Care

(c) (1) Section 522 (a) of such Act is amended (A) by striking out "The sums appropriated for each fiscal year under section 521" at the beginning of such section and inserting in lieu thereof "All but $10,000,000 of the total appropriated for a fiscal year under section 521 or, if such total is less than $35,000,000, all but the excess (if any) of such total over $25,000,000"; (B) by striking out "He shall allot to each State $50,000 or, if greater, such portion of $70,000 as the amount appropriated under section 521 for such year bears to the amount authorized to be so appropriated" and inserting in lieu thereof “He shall allot to each State $70,000 or, if the amount appropriated under section 521 for such year is less than $25,000,000, he shall allot to each State $50,000 or, if greater, such portion of $70,000 as the amount appropriated under such section bears to $25,000,000"; and (C) by striking out "the remainder of the sums so appropriated for such year" and inserting in lieu thereof "the remainder of the sum available for allotment under this subsection for such year".

(2) Title V of such Act is further amended by adding at the end thereof the following new section: "DAY CARE

"SEC. 527. (a) In order to assist the States to provide adequately for the care and protection of children whose parents are, for part of the day, working or seeking work, or otherwise absent from the home or unable for other reasons to provide parental supervision, the portion of the appropriation under section 521 which is not allotted under section 522 shall be allotted among the States solely for the provision, under the State plan developed as provided in this part, of day care in facilities (including private homes) which are licensed by the State, or are approved (as meeting the standards established for such licensing) by the State agency responsible for licensing facilities of this type, as follows: He shall allot to each State an amount which bears the same ratio to such portion of the appropriation as the product of (1) the population of the State under the age of 21 and (2) the allotment percentage of such State (as determined under section 524) bears to the sum of the corresponding products of all the States, except that the allotment of any State as so computed which is less than $10,000 shall be increased to that amount the total of the increases thereby required being derived by proportionately reducing the allotments to each of the remaining States (as so computed), but with such adjustments as may be necessary to prevent the allotment of any of such remaining States from being thereby reduced to less than such amount.

"(b) The amount of any allotment to a State under subsection (a) for any fiscal year which the State certifies to the Secretary will not be required for the purposes for which allotted shall be available for reallotment from time to time, on such dates as the Secretary may fix, to other States which the Secretary determines (1) have need in carrying out such purposes for sums in excess of those previously allotted to them under subsection (a), and (2) will be able to use such excess amounts during such fiscal year. Such reallotments shall be made on the basis of the need for additional funds in carrying out such purposes, after taking into consideration the population under the age of twenty-one, and the per capita income of each such State as compared with the population under the age of twenty-one, and the per capita income of all such States with respect to which such a determination by the Secretary has been made. Any amount so reallotted to a State shall be deemed part of its allotment under subsection (a)."