1995 US Code
Title 42 - THE PUBLIC HEALTH AND WELFARE
CHAPTER 6 - THE CHILDREN'S BUREAU
SUBCHAPTER IV_2 - SUBCHAPTER IV-GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH CHILDREN AND FOR CHILD-WELFARE SERVICES
Part A - Aid to Families With Dependent Children
Sec. 603 - Payments to States

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Publication TitleUnited States Code, 1994 Edition, Supplement 1, Title 42 - THE PUBLIC HEALTH AND WELFARE
CategoryBills and Statutes
CollectionUnited States Code
SuDoc Class NumberY 1.2/5:
Contained WithinTitle 42 - THE PUBLIC HEALTH AND WELFARE
CHAPTER 6 - THE CHILDREN'S BUREAU
SUBCHAPTER IV_2 - SUBCHAPTER IV-GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH CHILDREN AND FOR CHILD-WELFARE SERVICES
Part A - Aid to Families With Dependent Children
Sec. 603 - Payments to States
Containssection 603
Date1995
Laws in Effect as of DateJanuary 16, 1996
Positive LawNo
Dispositionstandard
Source CreditAug. 14, 1935, ch. 531, title IV, §403, 49 Stat. 628; Aug. 10, 1939, ch. 666, title IV, §402, 53 Stat. 1380; Aug. 10, 1946, ch. 951, title V, §502, 60 Stat. 992; June 14, 1948, ch. 468, §3(b), 62 Stat. 439; Aug. 28, 1950, ch. 809, title III, pt. 2, §322(a), pt. 6, §361(c), (d), 64 Stat. 550, 558; July 18, 1952, ch. 945, §8(b), 66 Stat. 778; Sept. 1, 1954, ch. 1206, title III, §303(a), 68 Stat. 1097; Aug. 1, 1956, ch. 836, title III, §§302, 312(c), 342, 351(a), 70 Stat. 847, 849, 852, 854; Aug. 28, 1958, Pub. L. 85-840, title V, §502, 72 Stat. 1048; July 25, 1962, Pub. L. 87-543, title I, §§101(a)(2), (b)(2)(A)-(C), 104(a)(3)(C), 108(b), (c), 76 Stat. 174, 180, 185, 190; July 30, 1965, Pub. L. 89-97, title I, §122, title IV, §401(c), 79 Stat. 353, 415; Jan. 2, 1968, Pub. L. 90-248, title II, §§201(c)-(e)(3), 205(b), 206(a), 207(b), 208, 241(b)(2), (3), 81 Stat. 879, 880, 892-894, 916; June 28, 1968, Pub. L. 90-364, title III, §301, 82 Stat. 273; July 9, 1969, Pub. L. 91-41, §3, 83 Stat. 45; Dec. 28, 1971, Pub. L. 92-223, §3(a)(8), (9), 85 Stat. 805; Oct. 20, 1972, Pub. L. 92-512, title III, §301(b)-(d), 86 Stat. 946, 947; Oct. 30, 1972, Pub. L. 92-603, title II, §§299E(d), 299F, 86 Stat. 1462, 1463; Jan. 4, 1975, Pub. L. 93-647, §§3(a)(3), (4), (e)(2), 5(b), 101(c)(6)(A), 88 Stat. 2348-2350, 2360; Aug. 9, 1975, Pub. L. 94-88, title II, §204, 89 Stat. 435; Nov. 12, 1977, Pub. L. 95-171, §3(a)(1), 91 Stat. 1354; Dec. 20, 1977, Pub. L. 95-216, title IV, §§401, 402(a), 91 Stat. 1559, 1560; June 9, 1980, Pub. L. 96-265, title IV, §§401(g), (h), 406(a), 407(c), 94 Stat. 462, 465, 467; Aug. 13, 1981, Pub. L. 97-35, title XXI, §§2181(a)(1), 2184(b)(1), title XXIII, §§2307(b), 2315(b), 2317(a), 2319(a)-(c), 2353(b)(1), (d), 95 Stat. 815, 817, 848, 855-857, 872; Sept. 3, 1982, Pub. L. 97-248, title I, §§154(b), 156(a)-(c), 157(a), 96 Stat. 397-399; July 18, 1984, Pub. L. 98-369, div. B, title VI, §2663(c)(2), (j)(2)(B)(i), (3)(B)(i), 98 Stat. 1166, 1170, 1171; Aug. 16, 1984, Pub. L. 98-378, §9(b), 98 Stat. 1316; Nov. 6, 1986, Pub. L. 99-603, title I, §121(b)(1), 100 Stat. 3390; Dec. 22, 1987, Pub. L. 100-203, title IX, §9102(c), 101 Stat. 1330-300; Oct. 13, 1988, Pub. L. 100-485, title II, §§201(c), (d), 202(b)(4)-(6), 204(b)(2), title III, §§302(b)(2), 304(b)(2), title VI, §§601(c)(1), 606, 609(a), 102 Stat. <!-- PDFPage:1201 -->2372, 2377, 2381, 2384, 2393, 2407, 2410, 2424; Dec. 19, 1989, Pub. L. 101-239, title VIII, §8004(b), 103 Stat. 2460; Nov. 5, 1990, Pub. L. 101-508, title V, §5081(b), 104 Stat. 1388-235; Aug. 10, 1993, Pub. L. 103-66, title XIII, §13741(a), 107 Stat. 663; July 27, 1995, Pub. L. 104-19, title I, 109 Stat. 215.
Statutes at Large References49 Stat. 628
53 Stat. 1380
60 Stat. 992
62 Stat. 439
64 Stat. 550
66 Stat. 778
68 Stat. 1097
70 Stat. 847
72 Stat. 1048
76 Stat. 174
79 Stat. 353
81 Stat. 880, 879, 94, 894
82 Stat. 273
83 Stat. 45
85 Stat. 805
86 Stat. 946, 1462
88 Stat. 2348-2350
89 Stat. 435
91 Stat. 1354, 1559, 126
94 Stat. 462, 532, 3574
95 Stat. 815, 872
96 Stat. 397-399, 376, 1196, 1912
98 Stat. 1166, 1316
100 Stat. 3390, 291, 2783
101 Stat. 1330-300
102 Stat. 2377, 2381, 2425
103 Stat. 2460
104 Stat. 1388-235
107 Stat. 663
109 Stat. 215
Public Law ReferencesPublic Law 85-840, Public Law 87-543, Public Law 89-97, Public Law 90-36, Public Law 90-248, Public Law 90-364, Public Law 91-41, Public Law 92-223, Public Law 92-512, Public Law 92-603, Public Law 93-647, Public Law 94-88, Public Law 95-30, Public Law 95-171, Public Law 95-216, Public Law 96-265, Public Law 96-272, Public Law 96-611, Public Law 97-35, Public Law 97-248, Public Law 97-276, Public Law 97-377, Public Law 98-369, Public Law 98-375, Public Law 98-378, Public Law 99-272, Public Law 99-514, Public Law 99-603, Public Law 100-203, Public Law 100-485, Public Law 101-239, Public Law 101-508, Public Law 103-66, Public Law 104-19


§603. Payments to States (a) Computation of amounts

From the sums appropriated therefor, the Secretary of the Treasury shall pay to each State which has an approved plan for aid and services to needy families with children, for each quarter, beginning with the quarter commencing October 1, 1958—

(1) in the case of any State other than Puerto Rico, the Virgin Islands, Guam, and American Samoa, an amount equal to the sum of the following proportions of the total amounts expended during such quarter as aid to families with dependent children under the State plan—

(A) five-sixths of such expenditures, not counting so much of any expenditure with respect to any month as exceeds the product of multiplied by the total number of recipients of aid to families with dependent children for such month (which total number, for purposes of this subsection, means (i) the number of individuals with respect to whom such aid in the form of money payments is paid for such month, plus (ii) the number of individuals, not counted under clause (i), with respect to whom payments described in section 606(b)(2) of this title are made in such month and included as expenditures for purposes of this paragraph or paragraph (2)); plus

(B) the Federal percentage of the amount by which such expenditures exceed the maximum which may be counted under clause (A), not counting so much of any expenditure with respect to any month as exceeds (i) the product of multiplied by the total number of recipients of aid to families with dependent children (other than such aid in the form of foster care) for such month, plus (ii) the product of 0 multiplied by the total number of recipients of aid to families with dependent children in the form of foster care for such month; and


(2) in the case of Puerto Rico, the Virgin Islands, Guam, and American Samoa, an amount equal to one-half of the total of the sums expended during such quarter as aid to families with dependent children under the State plan, not counting so much of any expenditure with respect to any month as exceeds multiplied by the total number of recipients of such aid for such month; and

(3) in the case of any State, 50 percent of the total amounts expended during such quarter as found necessary by the Secretary for the proper and efficient administration of the State plan, except that no payment shall be made with respect to amounts expended in connection with the provision of any service described in section 1397a(a) of this title other than services furnished pursuant to section 602(g) of this title; and

(4) Repealed. Pub. L. 90–248, title II, §201(e)(3), Jan. 2, 1968, 81 Stat. 880.

(5) in the case of any State, an amount equal to 50 per centum of the total amount expended under the State plan during such quarter as emergency assistance to needy families with children.


No payment shall be made under this subsection with respect to amounts paid to supplement or otherwise increase the amount of aid to families with dependent children found payable in accordance with section 602(a)(13) of this title if such amount is determined to have been paid by the State in recognition of the current or anticipated needs of a family (other than with respect to the first or first and second months of eligibility), but any such amount, if determined to have been paid by the State in recognition of the difference between the current or anticipated needs of a family for a month based upon actual income or other relevant circumstances for such month, and the needs of such family for such month based upon income and other relevant circumstances as retrospectively determined under section 602(a)(13)(A)(ii) of this title, shall not be considered income within the meaning of section 602(a)(13) of this title for the purpose of determining the amount of aid in the succeeding months.

(b) Method of computation and payment

The method of computing and paying such amounts shall be as follows:

(1) The Secretary shall, prior to the beginning of each quarter, estimate the amount to be paid to the State for such quarter under the provisions of subsection (a) of this section, such estimate to be based on (A) a report filed by the State containing its estimate of the total sum to be expended in such quarter in accordance with the provisions of such subsection and stating the amount appropriated or made available by the State and its political subdivisions for such expenditures in such quarter, and if such amount is less than the State's proportionate share of the total sum of such estimated expenditures, the source or sources from which the difference is expected to be derived, (B) records showing the number of dependent children in the State, and (C) such other investigation as the Secretary may find necessary.

(2) The Secretary of Health and Human Services shall then certify to the Secretary of the Treasury the amount so estimated by the Secretary of Health and Human Services, (A) reduced or increased, as the case may be, by any sum by which he finds that his estimate for any prior quarter was greater or less than the amount which should have been paid to the State for such quarter, (B) reduced by a sum equivalent to the pro rata share to which the United States is equitably entitled, as determined by the Secretary of Health and Human Services, of the net amount recovered during any prior quarter by the State or any political subdivision thereof with respect to aid to families with dependent children furnished under the State plan, and (C) reduced by such amount as is necessary to provide the “appropriate reimbursement of the Federal Government” that the State is required to make under section 657 of this title out of that portion of child support collections retained by it pursuant to such section; except that such increases or reductions shall not be made to the extent that such sums have been applied to make the amount certified for any prior quarter greater or less than the amount estimated by the Secretary of Health and Human Services for such prior quarter.

(3) The Secretary of the Treasury shall thereupon, through the Fiscal Service of the Department of the Treasury and prior to audit or settlement by the General Accounting Office, pay to the State, at the time or times fixed by the Secretary of Health and Human Services, the amount so certified.

(c), (d) Repealed. Pub. L. 100–485, title II, §202(b)(5), (6), Oct. 13, 1988, 102 Stat. 2377 (e) Uniform reporting requirements

In order to assist in obtaining the information needed to carry out subsection (b)(1) of this section and otherwise to perform his duties under this part, the Secretary shall establish uniform reporting requirements under which each State will be required periodically to furnish such information and data as the Secretary may determine to be necessary to ensure that sections 602(a)(37), 602(a)(43), and 602(g)(1)(A) of this title, are being effectively implemented, including at a minimum the average monthly number of families assisted under each such section, the types of such families, the amounts expended with respect to such families, and the length of time for which such families are assisted. The information and data so furnished with respect to families assisted under section 602(g) of this title shall be separately stated with respect to families who have earnings and those who do not, and with respect to families who are receiving aid under the State plan and those who are not.

(f) Reduction in amount; family planning services; aid to families with dependent children

Notwithstanding any other provision of this section, the amount payable to any State under this part for quarters in a fiscal year shall with respect to quarters in fiscal years beginning after June 30, 1973, be reduced by 1 per centum (calculated without regard to any reduction under subsection (g) of this section) of such amount if such State—

(1) in the immediately preceding fiscal year failed to carry out the provisions of section 602(a)(15)(B) of this title as pertain to requiring the offering and arrangement for provision of family planning services; or

(2) in the immediately preceding fiscal year (but, in the case of the fiscal year beginning July 1, 1972, only considering the third and fourth quarters thereof), failed to carry out the provisions of section 602(a)(15)(B) of this title with respect to any individual who, within such period or periods as the Secretary may prescribe, has been an applicant for or recipient of aid to families with dependent children under the plan of the State approved under this part.

(g) Repealed. Pub. L. 97–35, title XXI, §2181(a)(1), Aug. 13, 1981, 95 Stat. 815 (h) Reduction in amount; suspension; continuation; determination of substantial compliance by State

(1) Notwithstanding any other provision of this chapter, if a State's program operated under part D of this subchapter is found as a result of a review conducted under section 652(a)(4) of this title not to have complied substantially with the requirements of such part for any quarter beginning after September 30, 1983, and the Secretary determines that the State's program is not complying substantially with such requirements at the time such finding is made, the amounts otherwise payable to the State under this part for such quarter and each subsequent quarter, prior to the first quarter throughout which the State program is found to be in substantial compliance with such requirements, shall be reduced (subject to paragraph (2)) by—

(A) not less than one nor more than two percent, or

(B) not less than two nor more than three percent, if the finding is the second consecutive such finding made as a result of such a review, or

(C) not less than three nor more than five percent, if the finding is the third or a subsequent consecutive such finding made as a result of such a review.


(2)(A) The reductions required under paragraph (1) shall be suspended for any quarter if—

(i) the State submits a corrective action plan, within a period prescribed by the Secretary following notice of the finding under paragraph (1), which contains steps necessary to achieve substantial compliance within a time period which the Secretary finds to be appropriate;

(ii) the Secretary approves such corrective action plan (and any amendments thereto) as being sufficient to achieve substantial compliance; and

(iii) the Secretary finds that the corrective action plan (and any amendment thereto approved by the Secretary under clause (ii)), is being fully implemented by the State and that the State is progressing in accordance with the timetable contained in the plan to achieve substantial compliance with such requirements.


(B) A suspension of the penalty under subparagraph (A) shall continue until such time as the Secretary determines that—

(i) the State has achieved substantial compliance,

(ii) the State is no longer implementing its corrective action plan, or

(iii) the State is implementing or has implemented its corrective action plan but has failed to achieve substantial compliance within the appropriate time period (as specified in subparagraph (A)(i)).


(C)(i) In the case of a State whose penalty suspension ends pursuant to subparagraph (B)(i), the penalty shall not be applied.

(ii) In the case of a State whose penalty suspension ends pursuant to subparagraph (B)(ii), the penalty shall be applied as if the suspension had not occurred.

(iii) In the case of a State whose penalty suspension ends pursuant to subparagraph (B)(iii), the penalty shall be applied to all quarters ending after the expiration of the time period specified in such subparagraph (and prior to the first quarter throughout which the State program is found to be in substantial compliance).

(3) For purposes of this subsection, section 602(a)(27) of this title, and section 652(a)(4) of this title, a State which is not in full compliance with the requirements of this part shall be determined to be in substantial compliance with such requirements only if the Secretary determines that any noncompliance with such requirements is of a technical nature which does not adversely affect the performance of the child support enforcement program.

(i), (j) Repealed. Pub. L. 101–239, title VIII, §8004(b), Dec. 19, 1989, 103 Stat. 2460 (k) Payments to States for job opportunities and basic skills training program; fiscal year limitations; “adult recipient” defined; construction uses prohibited

(1) Each State with a plan approved under part F of this subchapter shall be entitled to payments under subsection (l) of this section for any fiscal year in an amount equal to the sum of the applicable percentages (specified in such subsection) of its expenditures to carry out the program under part F of this subchapter (subject to limitations prescribed by or pursuant to such part or this section on expenditures that may be included for purposes of determining payment under subsection (l) of this section), but such payments for any fiscal year in the case of any State may not exceed the limitation determined under paragraph (2) with respect to the State.

(2) The limitation determined under this paragraph with respect to a State for any fiscal year is—

(A) the amount allotted to the State for fiscal year 1987 under part C of this subchapter as then in effect, plus

(B) the amount that bears the same ratio to the amount specified in paragraph (3) for such fiscal year as the average monthly number of adult recipients (as defined in paragraph (4)) in the State in the preceding fiscal year bears to the average monthly number of such recipients in all the States for such preceding year.


(3) The amount specified in this paragraph is—

(A) 0,000,000 in the case of the fiscal year 1989,

(B) 0,000,000 in the case of the fiscal year 1990,

(C) ,000,000,000 in the case of each of the fiscal years 1991, 1992, and 1993,

(D) ,100,000,000 in the case of the fiscal year 1994,

(E) ,300,000,000 in the case of the fiscal year 1995, reduced by an amount equal to the total of those funds that are within each State's limitation for fiscal year 1995 that are not necessary to pay such State's allowable claims for such fiscal year (except that such amount for such year shall be deemed to be ,300,000,000 for the purpose of determining the amount of the payment under subsection (l) of this section to which each State is entitled), and

(F) ,000,000,000 in the case of the fiscal year 1996 and each succeeding fiscal year,


reduced by the aggregate amount allotted to all the States for fiscal year 1987 pursuant to part C of this subchapter as then in effect.

(4) For purposes of this subsection, the term “adult recipient” in the case of any State means an individual other than a dependent child (unless such child is the custodial parent of another dependent child) whose needs are met (in whole or in part) with payments of aid to families with dependent children.

(5) None of the funds available to a State for purposes of the programs or activities conducted under part F of this subchapter shall be used for construction.

(l) Federal financial participation in job opportunities and basic skills training program; computation of amounts

(1)(A) In lieu of any payment under subsection (a) of this section, the Secretary shall pay to each State with a plan approved under section 682(a) of this title (subject to the limitation determined under section 682(i)(2) of this title) with respect to expenditures by the State to carry out a program under part F of this subchapter (including expenditures for child care under section 602(g)(1)(A)(i) of this title, but only in the case of a State with respect to which section 1308 of this title applies), an amount equal to—

(i) with respect to so much of such expenditures in a fiscal year as do not exceed the State's expenditures in the fiscal year 1987 with respect to which payments were made to such State from its allotment for such fiscal year pursuant to part C of this subchapter as then in effect, 90 percent; and

(ii) with respect to so much of such expenditures in a fiscal year as exceed the amount described in clause (i)—

(I) 50 percent, in the case of expenditures for administrative costs made by a State in operating such a program for such fiscal year (other than the personnel costs for staff employed full-time in the operation of such program) and the costs of transportation and other work-related supportive services under section 602(g)(2) of this title, and

(II) the greater of 60 percent or the Federal medical assistance percentage (as defined in section 1318 of this title in the case of any State to which section 1308 of this title applies, or as defined in section 1396d(b) of this title in the case of any other State), in the case of expenditures made by a State in operating such a program for such fiscal year (other than for costs described in subclause (I)).


(B) With respect to the amount for which payment is made to a State under subparagraph (A)(i), the State's expenditures for the costs of operating a program established under part F of this subchapter may be in cash or in kind, fairly evaluated.

(2)(A) Notwithstanding paragraph (1), the Secretary shall pay to a State an amount equal to 50 percent of the expenditures made by such State in operating its program established under part F of this subchapter (in lieu of any different percentage specified in paragraph (1)(A)) if less than 55 percent of such expenditures are made with respect to individuals who are described in subparagraph (B).

(B) An individual is described in this paragraph if the individual—

(i)(I) is receiving aid to families with dependent children, and

(II) has received such aid for any 36 of the preceding 60 months;

(ii)(I) makes application for aid to families with dependent children, and

(II) has received such aid for any 36 of the 60 months immediately preceding the most recent month for which application has been made;

(iii) is a custodial parent under the age of 24 who (I) has not completed a high school education and, at the time of application for aid to families with dependent children, is not enrolled in high school (or a high school equivalency course of instruction), or (II) had little or no work experience in the preceding year; or

(iv) is a member of a family in which the youngest child is within 2 years of being ineligible for aid to families with dependent children because of age.


(C) This paragraph may be waived by the Secretary with respect to any State which demonstrates to the satisfaction of the Secretary that the characteristics of the caseload in that State make it infeasible to meet the requirements of this paragraph, and that the State is targeting other long-term or potential long-term recipients.

(D) The Secretary shall biennially submit to the Congress any recommendations for modifications or additions to the groups of individuals described in subparagraph (B) that the Secretary determines would further the goal of assisting long-term or potential long-term recipients of aid to families with dependent children to achieve self-sufficiency, which recommendations shall take into account the particular characteristics of the populations of individual States.

(3) Repealed. Pub. L. 100–485, title II, §204(b)(2), Oct. 13, 1988, 102 Stat. 2381.

(4)(A)(i) Subject to subparagraph (B), in the case of any family eligible for aid to families with dependent children by reason of the unemployment of the parent who is the principal earner, the State agency shall require that at least one parent in any such family participate, for a total of at least 16 hours a week during any period in which either parent is required to participate in the program, in a work supplementation program, a community work experience or other work experience program, on-the-job training, or a State designed work program approved by the Secretary, as such programs are described in section 682(d)(1) of this title. In the case of a parent under age 25 who has not completed high school or an equivalent course of education, the State may require such parent to participate in educational activities directed at the attainment of a high school diploma (or equivalent) or another basic education program in lieu of one or more of the programs specified in the preceding sentence.

(ii) For purposes of clause (i), an individual participating in a community work experience program under section 682 of this title shall be considered to have met the requirement of such clause if he participates for the number of hours in any month equal to the monthly payment of aid to families with dependent children to the family of which he is a member, divided by the greater of the Federal or the applicable State minimum wage (and the portion of such monthly payment for which the State is reimbursed by a child support collection shall not be taken into account in determining the number of hours that such individual may be required to work).

(B) The requirement under subparagraph (A) shall not be considered to have been met by any State if the requirement is not met with respect to the following percentages of all families in the State eligible for aid to families with dependent children by reason of the unemployment of the parent who is the principal earner:

(i) 40 percent, in the case of the average of each month in fiscal year 1994,

(ii) 50 percent, in the case of the average of each month in fiscal year 1995,

(iii) 60 percent, in the case of the average of each month in fiscal year 1996, and

(iv) 75 percent in the case of the average of each month in each of the fiscal years 1997 and 1998.


(C) The percentage of participants for any month in a fiscal year for purposes of the preceding sentence shall equal the average of—

(i) the number of individuals described in subparagraph (A)(i) who have met the requirement prescribed therein, divided by

(ii) the total number of principal earners described in such subparagraph (but excluding those in families who have been recipients of aid for 2 months or less if, during the period that the family received aid, at least one parent engaged in intensive job search).


(D) If the Secretary determines that the State has failed to meet the requirement under subparagraph (A) (determined with respect to the percentages prescribed in subparagraph (B)), he may waive, in whole or in part, any penalty if he finds that—

(i) the State is operating a program in conformity with section 602(a)(19) of this title and part F of this subchapter,

(ii) the State has made a good faith effort to meet the requirement of subparagraph (A) but has been unable to do so because of economic conditions in the State (including significant numbers of recipients living in remote locations or isolated rural areas where the availability of work sites is severely limited), or because of rapid and substantial increases in the caseload that cannot reasonably be planned for, and

(iii) the State has submitted a proposal which is likely to achieve the required percentage of participants for the subsequent fiscal years.

(m) Extension of quality control penalty moratorium

(1) During the 12-month period beginning on July 1, 1988 (in this subsection referred to as the “moratorium period”), the Secretary shall not impose any reductions in payments to States pursuant to subsection (i) of this section (or prior regulations), or pursuant to any comparable provision of law relating to the programs under this part in Puerto Rico, Guam, the Virgin Islands, American Samoa, or the Northern Mariana Islands.

(2) During the moratorium period—

(A) the Secretary and the States shall continue to operate the quality control systems in effect under this part, and to calculate the error rates under the provisions referred to in paragraph (1), including the process of requesting and reviewing waivers; and

(B) the Departmental Grant Appeals Board shall, notwithstanding paragraph (1), review disallowances for fiscal year 1981 and thereafter and hear appeals with respect thereto (but collection of disallowances owed as a result of Departmental Grant Appeals Board decisions shall not occur).

(n) Additional payments to States

(1) In addition to any payment under subsection (a) or (l) of this section, each State shall be entitled to payment from the Secretary of an amount equal to the lesser of—

(A) the Federal medical assistance percentage (as defined in section 1396d(b) of this title) of the expenditures by the State in providing child care services pursuant to section 602(i) of this title, and in administering the provision of such child care services, for any fiscal year; and

(B) the limitation determined under paragraph (2) with respect to the State for the fiscal year.


(2)(A) The limitation determined under this paragraph with respect to a State for any fiscal year is the amount that bears the same ratio to the amount specified in subparagraph (B) for such fiscal year as the number of children residing in the State in the second preceding fiscal year bears to the number of children residing in the United States in the second preceding fiscal year.

(B) The amount specified in this subparagraph is—

(i) 0,000,000 for fiscal year 1991;

(ii) 0,000,000 for fiscal year 1992;

(iii) 0,000,000 for fiscal year 1993;

(iv) 0,000,000 for fiscal year 1994; and

(v) 0,000,000 for fiscal year 1995, and for each fiscal year thereafter.


(C) If the limitation determined under subparagraph (A) with respect to a State for a fiscal year exceeds the amount paid to the State under this subsection for the fiscal year, the limitation determined under this paragraph with respect to the State for the immediately succeeding fiscal year shall be increased by the amount of such excess.

(3) Amounts appropriated for a fiscal year to carry out this part shall be made available for payments under this subsection for such fiscal year.

(Aug. 14, 1935, ch. 531, title IV, §403, 49 Stat. 628; Aug. 10, 1939, ch. 666, title IV, §402, 53 Stat. 1380; Aug. 10, 1946, ch. 951, title V, §502, 60 Stat. 992; June 14, 1948, ch. 468, §3(b), 62 Stat. 439; Aug. 28, 1950, ch. 809, title III, pt. 2, §322(a), pt. 6, §361(c), (d), 64 Stat. 550, 558; July 18, 1952, ch. 945, §8(b), 66 Stat. 778; Sept. 1, 1954, ch. 1206, title III, §303(a), 68 Stat. 1097; Aug. 1, 1956, ch. 836, title III, §§302, 312(c), 342, 351(a), 70 Stat. 847, 849, 852, 854; Aug. 28, 1958, Pub. L. 85–840, title V, §502, 72 Stat. 1048; July 25, 1962, Pub. L. 87–543, title I, §§101(a)(2), (b)(2)(A)–(C), 104(a)(3)(C), 108(b), (c), 76 Stat. 174, 180, 185, 190; July 30, 1965, Pub. L. 89–97, title I, §122, title IV, §401(c), 79 Stat. 353, 415; Jan. 2, 1968, Pub. L. 90–248, title II, §§201(c)–(e)(3), 205(b), 206(a), 207(b), 208, 241(b)(2), (3), 81 Stat. 879, 880, 892–894, 916; June 28, 1968, Pub. L. 90–364, title III, §301, 82 Stat. 273; July 9, 1969, Pub. L. 91–41, §3, 83 Stat. 45; Dec. 28, 1971, Pub. L. 92–223, §3(a)(8), (9), 85 Stat. 805; Oct. 20, 1972, Pub. L. 92–512, title III, §301(b)–(d), 86 Stat. 946, 947; Oct. 30, 1972, Pub. L. 92–603, title II, §§299E(d), 299F, 86 Stat. 1462, 1463; Jan. 4, 1975, Pub. L. 93–647, §§3(a)(3), (4), (e)(2), 5(b), 101(c)(6)(A), 88 Stat. 2348–2350, 2360; Aug. 9, 1975, Pub. L. 94–88, title II, §204, 89 Stat. 435; Nov. 12, 1977, Pub. L. 95–171, §3(a)(1), 91 Stat. 1354; Dec. 20, 1977, Pub. L. 95–216, title IV, §§401, 402(a), 91 Stat. 1559, 1560; June 9, 1980, Pub. L. 96–265, title IV, §§401(g), (h), 406(a), 407(c), 94 Stat. 462, 465, 467; Aug. 13, 1981, Pub. L. 97–35, title XXI, §§2181(a)(1), 2184(b)(1), title XXIII, §§2307(b), 2315(b), 2317(a), 2319(a)–(c), 2353(b)(1), (d), 95 Stat. 815, 817, 848, 855–857, 872; Sept. 3, 1982, Pub. L. 97–248, title I, §§154(b), 156(a)–(c), 157(a), 96 Stat. 397–399; July 18, 1984, Pub. L. 98–369, div. B, title VI, §2663(c)(2), (j)(2)(B)(i), (3)(B)(i), 98 Stat. 1166, 1170, 1171; Aug. 16, 1984, Pub. L. 98–378, §9(b), 98 Stat. 1316; Nov. 6, 1986, Pub. L. 99–603, title I, §121(b)(1), 100 Stat. 3390; Dec. 22, 1987, Pub. L. 100–203, title IX, §9102(c), 101 Stat. 1330–300; Oct. 13, 1988, Pub. L. 100–485, title II, §§201(c), (d), 202(b)(4)–(6), 204(b)(2), title III, §§302(b)(2), 304(b)(2), title VI, §§601(c)(1), 606, 609(a), 102 Stat. 2372, 2377, 2381, 2384, 2393, 2407, 2410, 2424; Dec. 19, 1989, Pub. L. 101–239, title VIII, §8004(b), 103 Stat. 2460; Nov. 5, 1990, Pub. L. 101–508, title V, §5081(b), 104 Stat. 1388–235; Aug. 10, 1993, Pub. L. 103–66, title XIII, §13741(a), 107 Stat. 663; July 27, 1995, Pub. L. 104–19, title I, 109 Stat. 215.)

Amendment of Section

Pub. L. 100–485, title II, §204(b)(2), Oct. 13, 1988, 102 Stat. 2381, provided that, effective Oct. 1, 1998, subsection (l)(4) of this section is repealed.


For repeal of amendments by section 304(b)(2) of Pub. L. 100–485, see Effective and Termination Dates of 1988 Amendment note below.

References in Text

Parts D and F of this subchapter, referred to in subsecs. (h)(1), (k), and (l), are classified to sections 651 et seq. and 681 et seq., respectively, of this title.

Part C of this subchapter, referred to in subsecs. (k)(2)(A), (3) and (l)(1)(A)(i), which was classified to section 630 et seq. of this title, was repealed by Pub. L. 100–485, title II, §202(a), Oct. 13, 1988, 102 Stat. 2377.

Amendments

1995—Subsec. (k)(3)(E). Pub. L. 104–19 inserted “reduced by an amount equal to the total of those funds that are within each State's limitation for fiscal year 1995 that are not necessary to pay such State's allowable claims for such fiscal year (except that such amount for such year shall be deemed to be ,300,000,000 for the purpose of determining the amount of the payment under subsection (l) of this section to which each State is entitled),” after “1995,”.

1993—Subsec. (a)(3). Pub. L. 103–66 amended par. (3) generally, substituting present provisions for provisions authorizing payments equal to sum of specified proportions of total amounts expended by Secretary for proper and efficient administration of State plan, such proportions being: (1) 100 percent of amounts expended to implement and operate an immigration status verification system; (2) 90 percent of amounts expended to implement and operate statewide mechanized claims processing and information retrieval systems; (3) 75 percent of amounts expended to carry out a fraud control program; and (4) one-half of remainder of such expenditures, including amounts expended to carry out initial evaluations.

1990—Subsec. (n). Pub. L. 101–508 added subsec. (n).

1989—Subsecs. (i), (j). Pub. L. 101–239 struck out subsec. (i) which related to reductions in payments to States with excessive erroneous excess payments, and subsec. (j) which related to incentive adjustments in payments to Puerto Rico, Guam, the Virgin Islands, and American Samoa.

1988—Subsec. (a)(1), (2). Pub. L. 100–485, §601(c)(1)(A), substituted “Guam, and American Samoa,” for “and Guam,”.

Subsec. (a)(3). Pub. L. 100–485, §§201(d), 202(b)(4), substituted “any amounts expended by the State to carry out initial evaluations under section 686(a) of this title); and” for “as expenditures under this subparagraph the value of any services furnished, and the amount of any payments made (to cover expenses incurred by individuals under a program of employment search), under section 602(a)(35)(B) of this title).” in subpar. (D) and substituted “pursuant to section 602(g) of this title” for “under section 602(a)(35)(B) of this title (as described in the parenthetical phrase in subparagraph (D)), and other than services the provision of which is required by section 602(a)(19) of this title to be included in the plan of the State, or which is a service provided in connection with a community work experience program or work supplementation program under section 609 or 614 of this title” in concluding provisions.

Subsec. (c). Pub. L. 100–485, §202(b)(5), struck out subsec. (c) which read as follows: “Notwithstanding any other provision of this chapter, the Federal share of assistance payments under this part shall be reduced with respect to any State for any fiscal year after June 30, 1973, by one percentage point for each percentage point by which the number of individuals certified, under the program of such State established pursuant to section 602(a)(19)(G) of this title, to the local employment office of the State as being ready for employment or training under section 632(b)(1), (2) or (3) of this title, is less than 15 per centum of the average number of individuals in such State who, during such year, are required to be registered pursuant to section 602(a)(19)(A) of this title.”

Subsec. (d). Pub. L. 100–485, §202(b)(6), struck out subsec. (d) which read as follows:

“(1) Notwithstanding any provision of subsection (a)(3) of this section, the applicable rate under such subsection shall be 90 per centum with respect to social and supportive services provided pursuant to section 602(a)(19)(G) of this title. In determining the amount of the expenditures made under a State plan for any quarter with respect to social and supportive services pursuant to section 602(a)(19)(G) of this title, there shall be included the fair and reasonable value of goods and services furnished in kind from the State or any political subdivision thereof.

“(2) Of the sums authorized by section 601 of this title to be appropriated for the fiscal year ending June 30, 1973, not more than 0,000,000 shall be appropriated to the Secretary for payments with respect to services to which paragraph (1) applies.”

Subsec. (e). Pub. L. 100–485, §606, added subsec. (e).

Subsecs. (i)(4), (j). Pub. L. 100–485, §601(c)(1)(B), substituted “the Virgin Islands, or American Samoa” for “or the Virgin Islands”.

Subsec. (k). Pub. L. 100–485, §201(c)(1), added subsec. (k).

Subsec. (l). Pub. L. 100–485, §201(c)(2), added subsec. (l).

Subsec. (l)(1)(A). Pub. L. 100–485, §§302(b)(2), 304(b)(2), temporarily substituted “602(g)(1)(A)(i) of this title” for “602(g)(1)(A) of this title” in introductory provisions. See Effective and Termination Dates of 1988 Amendment note below.

Subsec. (l)(3). Pub. L. 100–485, §204(b)(2), struck out par. (3) which authorized Secretary to pay to a State an amount equal to 50 percent of expenditures made by such State in a fiscal year in operating its program established under part F of this subchapter depending on the State's participation rate for the preceding fiscal year.

Subsec. (m). Pub. L. 100–485, §609(a), added subsec. (m).

1987—Subsec. (a)(3). Pub. L. 100–203 added subpar. (C), redesignated former subpar. (C) as (D), and in closing provisions substituted “(D)” for “(C)”.

1986—Subsec. (a)(3)(A). Pub. L. 99–603 added subpar. (A).

1984—Subsec. (a)(3). Pub. L. 98–369, §2663(j)(3)(B)(i), struck out “of Health, Education, and Welfare” after “Secretary” in provisions preceding subpar. (A).

Subsec. (b)(2). Pub. L. 98–369, §2663(j)(2)(B)(i), substituted “Health and Human Services” for “Health, Education, and Welfare” wherever appearing.

Subsec. (b)(3). Pub. L. 98–369, §2663(c)(2)(A), substituted “the Fiscal Service of the Department of the Treasury” for “the Division of Disbursement of the Treasury Department”.

Pub. L. 98–369, §2663(j)(2)(B)(i), substituted “Health and Human Services” for “Health, Education, and Welfare”.

Subsec. (h). Pub. L. 98–375 amended subsec. (h) generally. Prior to amendment, subsec. (h) read as follows: “Notwithstanding any other provision of this chapter, the amount payable to any State under this part for quarters in a fiscal year shall with respect to quarters beginning after December 31, 1976, be reduced by 5 per centum of such amount if such State is found by the Secretary as the result of the annual audit to have failed to have an effective program meeting the requirements of section 602(a)(27) of this title in any fiscal year beginning after September 30, 1976 (but, in the case of the fiscal year beginning October 1, 1976, only considering the second, third, and fourth quarters thereof).”

Subsec. (j). Pub. L. 98–369, §2663(c)(2)(B), struck out the comma after “excess payments” in cl. (ii) of last sentence.

1982—Subsec. (a). Pub. L. 97–248, §§156(b), 157(a), in provision following par. (5), struck out provision respecting increases according to subsec. (i) of this section in the amount paid to each State for calendar quarters beginning after Sept. 30, 1977, and prior to Apr. 1, 1978, and inserted provision relating to exclusions of amounts from income within the meaning of section 602(a)(13) of this title for purposes of determining amount of aid in succeeding months.

Subsec. (a)(3). Pub. L. 97–248, §154(b), inserted “(including as expenditures under this subparagraph the value of any services furnished, and the amount of any payments made (to cover expenses incurred by individuals under a program of employment search), under section 602(a)(35)(B) of this title)” in subpar. (C) and substituted “other than services furnished under section 602(a)(35)(B) of this title (as described in the parenthetical phrase in subparagraph (C)), and other than services” for “other than services” in provisions following subpar. (C).

Subsec. (i). Pub. L. 97–248, §156(a), substituted provisions setting forth computation, definition, etc., respecting limitation on Federal financial participation in erroneous assistance expenditures for provisions setting forth computations, limitations, etc., respecting increases in the amount payable, as determined under subsec. (a) of this section, or section 1318 of this title, to each State which has a State approved plan for any calendar quarter which begins after Sept. 30, 1977, and prior to Apr. 1, 1978.

Subsec. (j). Pub. L. 97–248, §156(c), substituted “In the case of Puerto Rico, Guam, or the Virgin Islands, if the dollar error rate of aid furnished by such State” for “If the dollar error rate of aid furnished by a State”.

1981—Subsec. (a). Pub. L. 97–35, §§2315(b), 2317(a), in provision following par. (5), inserted provision prohibiting payment with respect to amounts paid to supplement or otherwise increase the amount of aid payable in accordance with section 602(a)(13) of this title if such amount is determined to have been paid by the State in recognition of the current or anticipated needs of a family, other than with respect to the first and second months of eligibility, and struck out provision restricting the number of cases in which payments may be made by a State.

Subsec. (a)(1). Pub. L. 97–35, §2184(b)(1)(A), (B), struck out “(including expenditures for premiums under part B of subchapter XVIII of this chapter for individuals who are recipients of money payments under such plan and other insurance premiums for medical or any other type of remedial care or the cost thereof)” after “under the State plan” and in subpar. (A) substituted “plus (ii) the number of individuals, not counted under clause (i)” for “plus (ii) the number of other individuals with respect to whom expenditures were made in such month as aid to families with dependent children in the form of medical or any other type of remedial care, plus (iii) the number of individuals, not counted under clause (i) or (ii)”.

Subsec. (a)(2). Pub. L. 97–35, §2184(b)(1)(C), struck out “(including expenditures for premiums under part B of subchapter XVIII of this chapter for individuals who are recipients of money payments under such plan and other insurance premiums for medical or any other type of remedial care or the cost thereof)” after “under the State plan”.

Subsec. (a)(3). Pub. L. 97–35, §§2307(b), 2319(a), 2353(d), struck out subpar. (A), as in effect in the fifty States and the District of Columbia, which provided for payment of 75 per centum of so much of such expenditures as are for training of personnel employed or preparing for employment by the State agency or by the local agency administering the plan in the political subdivision and in provision following subpar. (C) inserted “, or which is service provided in connection with a community work experience program or work supplementation program under section 609 or 614 of this title” and substituted “section 1397a(a) of this title” for “section 1397a(a)(1) of this title”.

Pub. L. 97–35, §2319(b), struck out cl. (iii) of subpar. (A) as in effect in Puerto Rico, Guam, and the Virgin Islands, which provided for payment of 75 per centum of so much of such expenditures as are for the training, including short- and long-term training at educational institutions through grants to such institutions or by direct financial assistance to students enrolled at such institutions, of personnel employed or preparing for employment by the State agency or by the local agency administering the plan in the political subdivision.

Pub. L. 97–35, §2353(b)(1), struck out par. (3) as in effect in Puerto Rico, Guam, and the Virgin Islands, which required a payment to each State, beginning with the quarter commencing Oct. 1, 1958, of an amount equal to the sum of 75 per centum of so much of such expenditures as are for any services described in section 602(a)(14) and (15) of this title provided to any child or relative receiving aid under the plan or other individual, living in the same house as the child or relative, whose needs must be taken into account in making the determination under section 602(a)(7) of this title, for any services described in section 602(a)(14) and (15) of this title provided to any child or relative who is applying for aid or who, within periods prescribed by the Secretary, has been or is likely to become an applicant for or recipient of such aid, and for 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 one-half of the remainder of such expenditures and which defined what services were to be included.

Subsec. (d)(1). Pub. L. 97–35, §2319(c), substituted “Notwithstanding any provision of subsection (a)(3) of this section, the applicable rate under such subsection shall be 90 per centum” for “Notwithstanding subparagraph (A) of subsection (a)(3) of this section the rate specified in such subparagraph shall be 90 per centum (rather than 75 per centum)”.

Subsec. (e). Pub. L. 97–35, §2353(b)(1), struck out subsec. (e) as in effect in Puerto Rico, Guam, and the Virgin Islands, which provided for payment to States of 90 per centum of amounts attributable to offering, arranging, and furnishing of family planning services and supplies, directly or on a contract basis.

Subsec. (g). Pub. L. 97–35, §2181(a)(1), struck out subsec. (g) which provided for reduction of the amount payable to any State if such State fails to inform all families in the State receiving aid to families with dependent children of the availability of child health screening services, arrange for such services where requested, and arrange for corrective treatment the need for which is disclosed by such child health screening services.

1980—Subsec. (a)(3)(B), (C). Pub. L. 96–265, §406(a), added subpar. (B) and redesignated existing subpar. (B) as (C).

Subsec. (b)(2)(C). Pub. L. 96–265, §407(c), added subpar. (C).

Subsec. (c). Pub. L. 96–265, §401(g), substituted “section 632(b)(1), (2), or (3) of this title” for “part C”.

Subsec. (d)(1). Pub. L. 96–265, §401(h), inserted provision that in determining the amount of the expenditures made under a State plan for any quarter with respect to social and supportive services pursuant to section 602(a)(19)(G) of this title, there shall be included the fair and reasonable value of goods and services furnished in kind from the State or any political subdivision thereof.

1977—Subsec. (a). Pub. L. 95–216, §401(1), added last par. relating to calendar quarters beginning after Sept. 30, 1977, and before Apr. 1, 1978.

Pub. L. 95–171, §3(a)(1), in provisions following par. (5), substituted “20” for “10” percent.

Subsec. (i). Pub. L. 95–216, §401(2), added subsec. (i).

Subsec. (j). Pub. L. 95–216, §402(a), added subsec. (j).

1975—Subsec. (a). Pub. L. 94–88, in provisions following par. (5), substituted “section 602(a)(19)(F) or section 602(a)(26) of this title” for “section 602(a)(19)(F) of this title”.

Pub. L. 93–647, §3(e)(2), struck out “(subject to section 1320b of this title)” after “the Secretary of the Treasury shall”.

Subsec. (a)(3). Pub. L. 93–647, §3(a)(3), except with respect to Puerto Rico, Guam, and the Virgin Islands, amended provisions generally.

Subsec. (a)(3)(A)(iii). Pub. L. 93–647, §5(b), inserted, as in effect in Puerto Rico, Guam, and the Virgin Islands, “(including both short- and long-term training at educational institutions through grants to such institutions or by direct financial assistance to students enrolled in such institutions)” after “training”.

Subsec. (e). Pub. L. 93–647, §3(a)(4), except as in effect in Puerto Rico, Guam, and the Virgin Islands, struck out subsec. (e), which provided for payment to States of 90 per centum of amounts attributable to offering, arranging and furnishing of family planning services and supplies, directly or on contract basis.

Subsec. (h). Pub. L. 93–647, §101(c)(6)(A), added subsec. (h).

1972—Subsec. (a). Pub. L. 92–512, §301(d), substituted “shall (subject to section 1320b of this title) pay” for “shall pay” in provisions preceding par. (1).

Subsec. (a)(3)(D). Pub. L. 92–512, §301(b), substituted “under conditions which shall be” for “subject to limitations”.

Subsec. (a)(5). Pub. L. 92–512, §301(c), incorporated former subpar. (A) provisions in provisions designated as par. (5), and struck out at end “in the form of payments or care specified in paragraph (1) of section 606(e) of this title” and former subpar. (B) provision which provided for inclusion in the amount 75 per centum of the total amount expended under the State plan during the quarter as emergency assistance to needy families with children in the form of services specified in par. (1) of section 606(e) of this title.

Subsecs. (e) to (g). Pub. L. 92–603 added subsecs. (e) to (g).

1971—Subsecs. (c), (d). Pub. L. 92–223, §3(a)(8), (9), added subsecs. (c) and (d).

1969—Subsec. (a). Pub. L. 91–41, §3(b), struck out from introductory text “(subject to subsection (d))” after “Secretary of the Treasury shall”.

Subsec. (d). Pub. L. 91–41, §3(a), struck out subsec. (d) which imposed, for any quarter after June 1969, certain limitations on the number of dependent children under eighteen who, because of a parent's absence, may receive aid to families with dependent children with Federal financial participation.

1968—Subsec. (a). Pub. L. 90–248, §§207(b), 208(a), increased the percentage limitation from 5 to 10 and provided for the computation of such 10 per centum without taking into account individuals with respect to whom payments are made for any month in accordance with section 602(a)(19)(F) of this title, and substituted “shall (subject to subsection (d) of this section) pay” for “shall pay” in text preceding par. (1).

Subsec. (a)(1)(B). Pub. L. 90–248, §205(b), designated existing provisions as cl. (i), inserted “(other than such aid in the form of foster care)”, and added cl. (ii).

Subsec. (a)(3). Pub. L. 90–248, §201(d)(4), (e)(2), struck out in last sentence reference to subpar. (C) and from the introduction “whose State plan approved under section 602 of this title meets the requirements of subsection (c)(1) of this section” after “in the case of any State plan”, respectively.

Subsec. (a)(3)(A). Pub. L. 90–248, §201(c), substituted provisions of cls. (i) and (ii) for Federal payments for services described in section 602(a)(14) and (15) of this title to any child or relative who is receiving aid under the State plan, or to any other individual (living in the same home as such relative and child) or for such services to any child or relative who is applying for aid to families with dependent children or who has been or is likely to become an applicant for or recipient of such aid for former cls. (i)–(3) respecting such Federal payments for subsec. (c)(1) services to any relative with whom any dependent child (applying for or receiving aid) is living to help the relative attain or retain capability for self-support or self-care, or services to maintain and strengthen family life for such child; other services to prevent or reduce dependency; and such cl. (ii) and subsec. (c)(1) services as are appropriate for any relative with whom any child (who has been or is likely to become an applicant for or recipient of aid) is living, or as appropriate for such a child, if such services are requested by such relative, and redesignated former cl. (iv) as (3).

Subsec. (a)(3)(B). Pub. L. 90–248, §201(c), (d)(1)(A), struck out subpar. (B) provisions for Federal payments of one-half of expenditures (not included under subpar. (A)) for services provided any relative, with whom any child (who has been or is likely to become an applicant for or recipient of aid) is living, or to such child, if such services are requested by such relative or for services provided to any child who is an applicant for or recipient of such aid, or to any relative with whom such a child is living, and redesignated subpar. (C) as (B), respectively.

Subsec. (a)(3)(C). Pub. L. 90–248, §201(d)(1)(A), (B), (2), redesignated subpar. (D) as (C), substituted reference to subpar. “(D)” for “(E)”, and struck out in introductory text to subpar. (C) reference to subpar. “(B)”, respectively. Former subpar. (C) redesignated (B).

Subsec. (a)(3)(D), (E). Pub. L. 90–248, §§201(d)(1)(A), (C), (3), 241(b)(2), redesignated subpar. (E) as (D), substituted in the exception provision following subpar. (D) reference to subpar. “(C)” for “(D)”, and inserted following subpar. (D) “; and except that, to the extent specified by the Secretary, child-welfare services, family planning services, and family services may be provided from sources other than those referred to in subparagraphs (C) and (D)”, respectively. Former subpar. (D) redesignated (C), and substituted in proviso “part” for “subchapter”.

Subsec. (a)(4). Pub. L. 90–248, §201(e)(3), 81 Stat. 880, repealed par. (4) provisions respecting payments when approved State plan did not meet subsec. (c)(1) requirements in an amount equal to one-half of the total of sums expended during the quarter as found necessary by the Secretary for proper and efficient administration of the State plan.

Subsec. (a)(5). Pub. L. 90–248, §206(a), added par. (5)

Subsec. (c). Pub. L. 90–248, §201(e)(1), repealed subsec. (c) which set forth provisions respecting State qualification for subsec. (a)(3) payments when State plan required State agencies to provide services to maintain and strengthen family life for children and to help relatives with whom children (who are applicants for or recipients of aid) are living to attain capability for self-support or self-care and for stopping such subsec. (a)(3) payments after notice and hearing for noncompliance with such requirements in the administration and supervision of the State plan but providing subsec. (a)(4) payments instead.

Subsec. (c)(2). Pub. L. 90–248, §241(b)(3), substituted in last sentence “part” for “subchapter”.

Subsec. (d). Pub. L. 90–364 designated existing provisions as par. (1), inserted “(except the succeeding paragraphs of this subsection)” after “chapter” and substituted “June 30, 1969” for “June 30, 1968”, and added pars. (2) and (3).

Pub. L. 90–248, §208(b), added subsec. (d).

1965—Subsec. (a)(1). Pub. L. 89–97, §§122, 401(c), inserted “premiums under part B of subchapter XVIII of this chapter for individuals who are recipients of money payments under such plan and other” after “expenditures for” in parenthetical phrase appearing in so much of par. (1) as precedes clause (A); and changed the formula by which the federal share of aid to families with dependent children is determined by increasing the share of the average monthly assistance payment from 14/17ths of the first to 5/6ths of the first of such payment and raised the ceiling for federal participation from to a month per recipient, respectively.

Subsec. (a)(2). Pub. L. 89–97, §122, inserted “premiums under part B of subchapter XVIII of this chapter for individuals who are recipients of money payments under such plan and other” after “expenditures for” in parenthetical phrase.

1962—Subsec. (a). Pub. L. 87–543, §101(a)(2), substituted “aid and services to needy families with children” for “aid to dependent children”, in opening provision.

Subsec. (a)(1). Pub. L. 87–543, §§101(a)(2), 108(c), substituted “aid to families with dependent children”, in four places, and “such aid” in subpar. (A)(i) for “aid to dependent children”, and added subpar. (A)(iii).

Subsec. (a)(2). Pub. L. 87–543, §101(a)(2), substituted “aid to families with dependent children” and “such aid” for “aid to dependent children”.

Subsec. (a)(3). Pub. L. 87–543, §101(a)(2), (b)(2)(A), inserted in opening provisions “whose State plan approved under section 602 of this title meets the requirements of subsection (c)(1) of this section” after “any State”, and substituted provisions which increased the Federal share of expenses of administration of State public assistance plans by providing quarterly payments of the sum of 75 per centum of the quarterly expenses for certain prescribed services to help relatives attain and retain capability for self-support or self-care and to maintain and strengthen family life for dependent children, services likely to prevent or reduce dependency, and services appropriate for relatives and dependent children where such relatives request such services, and training of State or local public assistance personnel administering such plans and one-half of other administrative expenses for other services, permitted State health or vocational rehabilitation or other appropriate State agencies to furnish such services, except vocational rehabilitation services, and required the determination of the portion of expenses covered by the 75 and 50 per centum provisions in accordance with methods and procedures permitted by the Secretary for former provisions requiring quarterly payments of one-half of the quarterly expenses of administration of State plans, including staff services of State or local public assistance agencies to help relatives attain self-support or self-care and to maintain and strengthen family life for dependent children.

Subsec. (a)(4). Pub. L. 87–543, §101(b)(2)(B), added par. (4).

Subsec. (a), closing provisions. Pub. L. 87–543, §108(b), limited to the number of individuals with respect to whom protective payments are made in any month who may be included as recipients of aid to families with dependent children to 5 per centum of the number of other recipients of such aid during the month.

Subsec. (b)(2)(B). Pub. L. 87–543, §104(a)(3)(C), substituted “aid to families with dependent children” for “aid to dependent children”.

Subsec. (c). Pub. L. 87–543, §101(b)(2)(C), added subsec. (c).

1958—Subsec. (a). Pub. L. 85–840 substituted provisions authorizing the counting of the first of expenditures multiplied by the total number of recipients for provisions which authorized the counting of the first with respect to the first dependent child and the adult relative with whom the child is living and with respect to each of the other dependent children in the home, inserted provisions permitting sums spent for insurance premiums for medical or any other type of remedial care or the cost thereof to be included within the expenditures, excluded Guam from the provisions which allow an average monthly payment of and included Guam within the provisions which authorize an average monthly payment of , and permitted the counting of individuals with respect to whom expenditures were made as old-age assistance in the form of medical or any type of remedial care in determining the total number of recipients.

1956—Subsec. (a). Act Aug. 1, 1956, §302, substituted “during such quarter as aid to dependent children in the form of money payments under the State plan” for “during such quarter as aid to dependent children under the State plan” in cls. (1) and (2), “with respect to whom aid to dependent children in the form of money payments is paid for such month” for “with respect to whom aid to dependent children is paid for such month” in par. (a) of cl. (1), and inserted cl. (4).

Act Aug. 1, 1956, §312(c), struck out “, which shall be used exclusively as aid to dependent children,” after “the Virgin Islands, an amount” in cls. (1) and (2), and substituted “including services which are provided by the staff of the State agency (or of the local agency administering the State plan in the political subdivision), to relatives with whom such children (applying for or receiving such aid) are living, in order to help such relatives attain self-support or self-care, or which are provided to maintain and strengthen family life for such children” for “which amount shall be used for paying the costs of administering the State plan or for aid to dependent children, or both, and for no other purpose” in cl. (3).

Act Aug. 1, 1956, §342, substituted “October 1, 1956” for “October 1, 1952”, struck out “, which shall be used exclusively as aid to dependent children,” after “the Virgin Islands, an amount” in cls. (1) and (2), substituted “” for “” in three places, “” for “”, “” for “”, and “fourteen-seventeenths” for “four-fifths”, inserted “and not counting so much of such expenditure for any month with respect to a relative with whom any dependent child is living as exceeds ” in cl. (2), and substituted “Secretary of Health, Education, and Welfare” for “Secretary”, and “including services which are provided by the staff of the State plan, including services which are provided by the staff of the State agency (or of the local agency administering the State plan in the political subdivision) to relatives with whom such children (applying for or receiving such aid) are living, in order the help such relatives attain self-support or self-care, or which are provided to maintain and strengthen family life for such children” for “which amount shall be used for paying the costs of administering the State plan or for aid to dependent children, or both, and for no other purpose” in cl. (3).

Act Aug. 1, 1956, §351(a), inserted “, and not counting so much of such expenditure for any month with respect to a relative with whom any dependent child is living as exceeds ” in cl. (2).

1954—Subsec. (b)(1). Act Sept. 1, 1954, substituted “the State's proportionate share” for “one-half”.

1952—Subsec. (a). Act July 18, 1952, increased the Federal share of the State's average monthly payment to four-fifths of the first plus one-half of the remainder within individual maximums of , and to change formulas for computing the Federal share of public assistance for Puerto Rico and the Virgin Islands.

1950—Subsec. (a). Act Aug. 28, 1950, §322(a), changed the basis of computation of the Federal portion of aid to dependent children.

Subsec. (b). Act Aug. 28, 1950, §361(c), (d), substituted “Administrator” for “Board” and “he”, “him”, or “his” for “it”, or “its” wherever appearing.

1948—Subsec. (a). Act June 14, 1948, inserted for wherever appearing, for , and for .

1946—Subsec. (a). Act Aug. 10, 1946, §502(a), temporarily increased the maximum monthly State expenditure to which the Federal Government will contribute from for one dependent child and each for other dependent children in the same family to and , respectively, and increased the Federal contribution from one-half the State's expenditure for carrying out the State plan to a contribution to be used exclusively as aid to dependent children of two-thirds the State's expenditure up to monthly per child plus one-half the State's expenditure over , and a contribution of one-half the State's expenditure for administration. See Effective and Termination Date of 1946 Amendment note below.

Subsec. (b). Act Aug. 10, 1946, §502(b), temporarily substituted “the State's proportionate share” for “one-half”. See Effective and Termination Date of 1946 Amendment note below.

1939—Subsec. (a). Act Aug. 10, 1939, substituted “one-half” for “one-third”.

Subsec. (b). Act Aug. 10, 1939, substituted “one half” for “two thirds” in par. (1) and inserted in par. (2) provision reading: “(B) reduced by a sum equivalent to the pro rata share to which the United States is equitably entitled, as determined by the Board, of the net amount recovered during and prior quarter by the State or any political subdivision thereof with respect to aid to dependent children furnished under the state plan.”

Effective Date of 1993 Amendment

Amendment by Pub. L. 103–66 effective with respect to calendar quarters beginning on or after Apr. 1, 1994, with special rule for States whose legislature meets biennially, and does not have regular session scheduled in calendar year 1994, see section 13741(c) of Pub. L. 103–66, set out as a note under section 303 of this title.

Effective Date of 1990 Amendment

Amendment by Pub. L. 101–508 effective Oct. 1, 1990, see section 5081(e) of Pub. L. 101–508, set out as a note under section 602 of this title.

Effective Date of 1989 Amendment

Section 8004(b) of Pub. L. 101–239 provided that the amendment made by that section is effective Oct. 1, 1990.

Effective and Termination Dates of 1988 Amendment

Amendment by sections 201(c), (d) and 202(b)(4)–(6) of Pub. L. 100–485 effective Oct. 1, 1990, with provision for earlier effective dates in case of States making certain changes in their State plans and formally notifying the Secretary of Health and Human Services of their desire to become subject to the amendments by title II of Pub. L. 100–485 at such earlier effective dates, and with certain changes in the limitations applicable to the State for the fiscal year under subsec. (k)(2) of this section in the event such amendment becomes effective before Oct. 1, 1990, see section 204(a), (b)(1) of Pub. L. 100–485, set out as an Effective Date note under section 681 of this title.

Section 204(b)(2) of Pub. L. 100–485 provided that: “Section 403(l)(3) of the Social Security Act [subsec. (l) of this section] (as added by section 201(c)(2) of this Act) is repealed effective October 1, 1995 (except that subparagraph (A) of such section 403(l)(3) shall remain in effect for purposes of applying any reduction in payment rates required by such subparagraph for any of the fiscal years specified therein); and section 403(l)(4) of such Act (as so added) is repealed effective October 1, 1998.”

Amendment by section 302(b)(2) of Pub. L. 100–485 effective Apr. 1, 1990, and repealed effective Sept. 30, 1998, see section 304(b) of Pub. L. 100–485, set out as a note under section 602 of this title.

Section 601(d) of Pub. L. 100–485 provided that: “The amendments made by this section [amending this section and sections 1301, 1308, and 1318 of this title] shall become effective on October 1, 1988.”

Section 609(c) of Pub. L. 100–485 provided that: “The amendments made by subsections (a) and (b) [amending this section and provisions set out as a note below] shall take effect on July 1, 1988.”

Effective Date of 1987 Amendment

Amendment by Pub. L. 100–203 effective Apr. 1, 1988, see section 9102(d) of Pub. L. 100–203, set out as a note under section 602 of this title.

Effective Date of 1986 Amendment

Amendment by Pub. L. 99–603 effective Oct. 1, 1987, see section 121(c)(2) of Pub. L. 99–603, set out as a note under section 502 of this title.

Effective Date of 1984 Amendments

Amendment by Pub. L. 98–378 effective Oct. 1, 1983, see section 9(c) of Pub. L. 98–378, set out as a note under section 602 of this title.

Amendment by Pub. L. 98–369 effective July 18, 1984, but not to be construed as changing or affecting any right, liability, status, or interpretation which existed (under the provisions of law involved) before that date, see section 2664(b) of Pub. L. 98–369, set out as a note under section 401 of this title.

Effective Date of 1982 Amendment

Amendment by section 154(b) of Pub. L. 97–248 effective Oct. 1, 1982, see section 154(d) of Pub. L. 97–248, set out as a note under section 602 of this title.

Section 156(d) of Pub. L. 97–248 provided that:

“(1) The amendments made by subsections (a) and (b) [amending this section] shall become effective on October 1, 1982.

“(2) The inapplicability of section 403(j) of the Social Security Act [subsec. (j) of this section] to States other than Puerto Rico, Guam, and the Virgin Islands by reason of the amendment made by subsection (c) [amending this section] shall be effective with respect to six-month periods beginning after April 1983.”

Section 157(b) of Pub. L. 97–248 provided that: “The amendment made by this section [amending this section] shall become effective on October 1, 1982.”

Effective Date of 1981 Amendment

Section 2181(b) of Pub. L. 97–35, as amended by Pub. L. 97–248, title I, §137(a)(4), Sept. 3, 1982, 96 Stat. 376, provided that: “The amendment made by subsection (a)(1) [amending this section] shall apply to reductions for calendar quarters beginning on or after June 30, 1974, and the amendments made by subsection (a)(2) [amending section 1396a of this title] shall take effect on October 1, 1981, except that, in the case of a State plan under title XIX of the Social Security Act [subchapter XIX of this chapter] which the Secretary determines requires State legislation in order to incorporate the provisions required to be included by this section into such State plan, the State plan shall not be regarded as failing to comply with the requirements of such title solely on the basis of its failure to include the provisions required to be included in such State plan by subsection (a)(2) of this section before the first day of the first calendar quarter beginning after the close of the first regular session of the State legislature that begins after the date of enactment of this Act [Aug. 13, 1981], but the requirements previously set forth in paragraphs (1) through (3) of section 403(g) of the Social Security Act [pars. (1) through (3) of subsec. (g) of this section] (prior to its repeal by this section) shall apply under title XIX of such Act to such State on and after October 1, 1981, whether or not the provisions required to be included by this section in the State plan under title XIX have been incorporated into such State plan.”

Amendments by sections 2307(b), 2315(b), 2317(a), and 2319(c) of Pub. L. 97–35 effective Oct. 1, 1981, except as otherwise specifically provided, see section 2321 of Pub. L. 97–35, set out as a note under section 602 of this title.

Section 2319(d) of Pub. L. 97–35 provided that: “The repeals made by this section [repealing subsec. (a)(3)(A) of this section as in effect in the fifty States and the District of Columbia, and repealing subsec. (a)(3)(A)(iii) of this section as in effect in Puerto Rico, Guam, and the Virgin Islands] shall apply to expenditures made after September 30, 1981.”

Amendment by section 2353(b)(1), (d) of Pub. L. 97–35 effective Oct. 1, 1981, except as otherwise explicitly provided, see section 2354 of Pub. L. 97–35, set out as an Effective Date note under section 1397 of this title.

Effective Date of 1980 Amendment

Amendment by section 401(g), (h) of Pub. L. 96–265 effective Sept. 30, 1980, see section 401(i) of Pub. L. 96–265, set out as a note under section 602 of this title.

Amendment by section 406(a) of Pub. L. 96–265 effective with respect to expenditures made during calendar quarters beginning on or after July 1, 1981, see section 406(d) of Pub. L. 96–265, set out as an Effective Date note under section 613 of this title.

Section 407(d) of Pub. L. 96–265 provided that: “The amendments made by this section [amending this section and section 655 of this title] shall be effective in the case of calendar quarters commencing on or after January 1, 1981.”

Effective Date of 1977 Amendments

Section 402(b) of Pub. L. 95–216 provided that: “Payments may be made under the amendment made by subsection (a) [amending this section] only in the case of periods commencing on or after January 1, 1978.”

Section 3(a)(3) of Pub. L. 95–171 provided that: “The amendments made by this subsection [amending this section and section 606 of this title] shall apply with respect to payments of aid to families with dependent children made for months beginning on or after October 1, 1977.”

Effective Date of 1975 Amendments

Amendment by Pub. L. 94–88 effective Aug. 1, 1975, unless otherwise provided, see section 210 of Pub. L. 94–88, set out as a note under section 602 of this title.

Amendment by section 3 of Pub. L. 93–647 effective with respect to payments under sections 603 and 803 of this title for quarters commencing after Sept. 30, 1975, except that amendment by section 3(a) of Pub. L. 93–647 not effective with respect to the Commonwealth of Puerto Rico, the Virgin Islands, or Guam, see section 7(b) of Pub. L. 93–647, set out as a note under section 303 of this title.

Amendment by section 5(b) of Pub. L. 93–647 effective with respect to payments for quarters commencing after Sept. 30, 1975, see section 7(a) of Pub. L. 93–647, set out as a note under section 303 of this title.

Amendment by section 101(c)(6)(A) of Pub. L. 93–647 effective Aug. 1, 1975, see section 101(f) of Pub. L. 93–647, set out as an Effective Date note under section 651 of this title.

Effective Date of 1972 Amendment

Amendment by section 301(b) of Pub. L. 92–512 effective Jan. 1, 1973, and amendment by section 301(c), (d) of Pub. L. 92–512 effective July 1, 1972, see section 301(e) of Pub. L. 92–512, set out as a note under section 303 of this title.

Effective Date of 1971 Amendment

Enactment by Pub. L. 92–223 effective July 1, 1972, except as otherwise specified therein, see section 3(c) of Pub. L. 92–223, set out as a note under section 602 of this title.

Effective Date of 1968 Amendment

Section 205(e) of Pub. L. 90–248 provided that: “The amendments made by subsections (b) and (c) [amending this section and section 608 of this title] shall apply only with respect to foster care provided after December 1967.”

Amendment by section 201(c) of Pub. L. 90–248 applicable with respect to services furnished after June 30, 1968, or furnished after such earlier date as the State plan may provide, and amendment by section 201(d), (e) of Pub. L. 90–248 effective July 1, 1968 (or earlier if the State plan so provides) and provision for nonapplication of section 602(a)(15)(F) of this title when there are different State agencies for administration of services, see section 201(g) of Pub. L. 90–248, set out as a note under section 602 of this title.

Effective Date of 1965 Amendment

Amendment by section 401(c) of Pub. L. 89–97 applicable in the case of expenditures made after Dec. 31, 1965, under a State plan approved under subchapter I, IV, X, XIV, or XVI of this chapter, see section 401(f) of Pub. L. 89–97, set out as a note under section 303 of this title.

Effective Date of 1962 Amendment

Amendment by section 101(a)(2) of Pub. L. 87–543 applicable in the case of expenditures, under a State plan approved under subchapter I, IV, X, or XIV of this chapter, as the case may be, made after Aug. 31, 1962, and amendment by section 101(b)(2)(A)–(C) of Pub. L. 87–543 applicable in the case of expenditures, under a State plan approved under subchapter I, IV, X, or XIV of this chapter, as the case may be, made after June 30, 1963, see section 202(f) of Pub. L. 87–543, set out as a note under section 303 of this title.

Section 202(e) of Pub. L. 87–543, as amended by Pub. L. 90–36, §2, June 29, 1967, 81 Stat. 94; Pub. L. 90–248, title II, §207(c), Jan. 2, 1968, 81 Stat. 894, provided that: “The amendments made by sections 105 (other than subsection (c)) and 108 [amending this section and sections 606 and 609 of this title and enacting provisions set out as notes under this section and section 609 of this title] shall be applicable in the case of expenditures under a State plan approved under title IV of the Social Security Act [this subchapter], made during the period beginning October 1, 1962.”

Effective Date of 1958 Amendment

For effective date of amendment by Pub. L. 85–840, see section 512 of Pub. L. 85–840, set out as a note under section 303 of this title.

Effective and Termination Date of 1956 Amendment

Amendment by section 302 of act Aug. 1, 1956, effective July 1, 1957, see section 305 of act Aug. 1, 1956, set out as a note under section 303 of this title.

Amendment by section 342 of act Aug. 1, 1956, effective only for period beginning Oct. 1, 1956, and ending with close of June 30, 1959, see section 345 of act Aug. 1, 1956, set out as a note under section 303 of this title.

Section 351(d) of act Aug. 1, 1956, provided that: “The amendments made by this section [amending this section and sections 606 and 1308 of this title] shall be effective with respect to the fiscal year ending June 30, 1957, and all succeeding fiscal years.”

Effective and Termination Date of 1952 Amendment

Amendment by act July 18, 1952, effective for period beginning Oct. 1, 1952, and ending Sept. 30, 1956, see section 8(e) of act July 18, 1952, set out as an Effective and Termination Date note under section 303 of this title.

Effective Date of 1950 Amendment

Section 322(b) of act Aug. 28, 1950, provided that: “The amendment made by subsection (a) [amending this section] shall take effect October 1, 1950.”

Effective Date of 1948 Amendment

Amendment by act June 14, 1948, effective Oct. 1, 1948, see section 3(d) of act June 14, 1948, set out as a note under section 303 of this title.

Effective and Termination Date of 1946 Amendment

Amendment by section 502 of act Aug. 10, 1946, effective only for period beginning Oct. 1, 1946, and ending with close of June 30, 1950, see section 504 of act Aug. 10, 1946, as amended, set out as a note under section 303 of this title.

Effective Date of 1939 Amendment

Section 402 of act Aug. 10, 1939, provided that the amendment made by that section is effective Jan. 1, 1940.

No Sanctions With Respect to Disallowances Before Fiscal Year 1991

Section 8004(d) of Pub. L. 101–239 provided that: “No disallowance or other similar sanction shall be applied to a State for any fiscal year before fiscal year 1991 under section 403(i) of the Social Security Act [subsec. (i) of this section] or any predecessor statutory or regulatory provision relating to disallowances for erroneous payments made in carrying out a State plan approved under part A of title IV of such Act [this part].”

Implementation of Amendment by Pub. L. 101–239

For provisions requiring Secretary of Health and Human Services to take all actions necessary to assure that adequate numbers of staff are available to perform functions required by amendments made by section 8004 of Pub. L. 101–239, see section 8004(e) of Pub. L. 101–239, set out as a note under section 608 of this title.

Quality Control Studies and Penalty Moratorium

Pub. L. 99–272, title XII, §12301, Apr. 7, 1986, 100 Stat. 291, as amended by Pub. L. 99–514, title XVII, §1710, Oct. 22, 1986, 100 Stat. 2783; Pub. L. 100–485, title VI, §609(b), Oct. 13, 1988, 102 Stat. 2425, provided that:

“(a) Studies.—(1) The Secretary of Health and Human Services (hereafter referred to in this section as the ‘Secretary’) shall conduct a study of quality control systems for the Aid to Families with Dependent Children Program under title IV–A of the Social Security Act [this part] and for the Medicaid Program under title XIX of such Act [subchapter XIX of this chapter]. The study shall examine how best to operate such systems in order to obtain information which will allow program managers to improve the quality of administration, and provide reasonable data on the basis of which Federal funding may be withheld for States with excessive levels of erroneous payments.

“(2) The Secretary shall also contract with the National Academy of Sciences to conduct a concurrent independent study for the purpose described in paragraph (1). For purposes of such study, the Secretary shall provide to the National Academy of Sciences any relevant data available to the Secretary at the onset of the study and on an ongoing basis.

“(3) The Secretary and the National Academy of Sciences shall report the results of their respective studies to the Congress within one year after the date the Secretary and the National Academy of Sciences enter into the contract required under paragraph (2).

“(b) Moratorium on Penalties.—(1) During the 24-month period beginning with the first calendar quarter which begins after the date of the enactment of this Act [Apr. 7, 1986] (hereafter in this section referred to as the ‘moratorium period’), the Secretary shall not impose any reductions in payments to States pursuant to section 403(i) of the Social Security Act [subsec. (i) of this section] (or prior regulations), or pursuant to any comparable provision of law relating to the programs under title IV–A of such Act [this part] in Puerto Rico, Guam, the Virgin Islands, American Samoa, or the Northern Mariana Islands.

“(2) During the moratorium period, the Secretary and the States shall continue to operate the quality control systems in effect under title IV–A of the Social Security Act, and to calculate the error rates under the provisions referred to in paragraph (1).

“(c) Restructured Quality Control Systems.—(1) Not later than 6 months after the date on which the results of both studies required under subsection (a)(3) have been reported, the Secretary shall publish regulations which shall—

“(A) restructure the quality control systems under title XIX of the Social Security Act [subchapter XIX of this chapter] to the extent the Secretary determines to be appropriate, taking into account the studies conducted under subsection (a); and

“(B) establish, taking into account the studies conducted under subsection (a), criteria for adjusting the reductions which shall be made for quarters prior to the implementation of the restructured quality control systems so as to eliminate reductions for those quarters which would not be required if the restructured quality control systems had been in effect during those quarters.

“(2) Beginning with the first calendar quarter after the moratorium period, the Secretary shall implement the revised quality control systems under title XIX, and shall reduce payments to States—

“(A) for quarters after the moratorium period in accordance with the restructured quality control systems; and

“(B) for quarters in and before the moratorium period, as provided under the regulations described in paragraph (1)(B).

“(d) Effective Date.—This section shall become effective on the date of the enactment of this Act [Apr. 7, 1986].”

Reduction of Payments to States Not Having an Effective Child Support Plan

Pub. L. 97–377, title I, §113, Dec. 21, 1982, 96 Stat. 1912, provided that: “No reduction in the amount payable to any State under title IV of the Social Security Act [this subchapter] with respect to any of the fiscal years 1977 through 1983 shall be made prior to the date on which this resolution expires [not later than Sept. 30, 1983] on account of the provisions of section 403(h) of such Act [subsec. (h) of this section].”

Pub. L. 97–276, §127, Oct. 2, 1982, 96 Stat. 1196, provided that: “No reduction in the amount payable to any State under title IV of the Social Security Act [this subchapter] with respect to any of the fiscal years 1977 through 1982 shall be made prior to the date on which this resolution expires [not later than Dec. 17, 1982] on account of the provisions of section 403(h) of such Act [subsec. (h) of this section].”

Pub. L. 96–272, title III, §309, June 17, 1980, 94 Stat. 532, as amended by Pub. L. 96–611, §11(b)(1), Dec. 28, 1980, 94 Stat. 3574, provided that: “No reduction in the amount payable to any State under title IV of the Social Security Act [this subchapter] with respect to any of the fiscal years 1977 through 1980 shall be made prior to October 1, 1980, on account of the provisions of section 403(h) of such Act [subsec. (h) of this section].”

Continuing Effect of Current Regulations With Respect to Erroneous Payments Made by States Under a State Plan Approved Under This Part

Section 156(e) of Pub. L. 97–248 provided that: “The regulations currently in effect for fiscal year 1982 with respect to erroneous payments made by States under a State plan approved under part A of title IV of the Social Security Act [this part] (45 CFR 205.42) shall remain in effect with respect to erroneous payments made by States until new regulations reflecting the changes made by subsection (a) [amending this section] are promulgated and placed in effect.”

Disregard of Matching Funds Requirements in Use of Funds Appropriated Pursuant to Tax Reduction and Simplification Act of 1977

Secretary of Health and Human Services and Secretary of Labor authorized to carry out the work incentive program under this subchapter from the sums appropriated pursuant to the Tax Reduction and Simplification Act of 1977 (Pub. L. 95–30, May 23, 1977, 91 Stat. 126) without regard to the requirements for non-Federal matching funds contained in subsecs. (a)(3)(A) and (d) of this section, see section 401(a) of Pub. L. 95–30, set out as a note under section 602 of this title.

Federal Percentage of State Expenditures for Section 602(a)(14), (15) Services From Jan. 2, 1968, and Before July 1, 1969

Section 201(h) of Pub. L. 90–248 provided that notwithstanding subsec. (a)(3)(A) of this section, as amended by section 201(c) of Pub. L. 90–248, the rate specified in subsec. (a)(3)(A) of this section was to be 85 per centum, rather than 75 per centum, with respect to expenditures for services furnished pursuant to section 602(a)(14) and (15) of this title, made on or after Jan. 2, 1968, and prior to July 1, 1969.

Applicability of Certain Provisions to Puerto Rico, Guam, and the Virgin Islands

For applicability of subsec. (a)(3) of this section to Puerto Rico, Guam, and the Virgin Islands as it applies to the fifty States and the District of Columbia, see section 2353(b)(2) of Pub. L. 97–35, set out as a note under section 602 of this title.

Section 248(b) of Pub. L. 90–248, which designated the rate of payments for Puerto Rico, the Virgin Islands, and Guam, was repealed by Pub. L. 97–35, title XXIII, §2353(b)(3), Aug. 13, 1981, 95 Stat. 872.

Nonduplication of Payments to States: Prohibition of Payments After December 31, 1969

Prohibition of payments under this subchapter to States with respect to aid or assistance in form of medical or other type of remedial care for any period for which States received payments under subchapter XIX of this chapter or for any period after Dec. 31, 1969, see section 121(b) of Pub. L. 89–97, set out as a note under section 1396b of this title.

Report to President and Congress: Recommendations as to Continuation and Modification of Amendment

Section 108(d) of Pub. L. 87–543 provided that the Secretary submit to the President, for transmission to Congress prior to Jan. 1, 1967, a full report of the administration of the provisions of the amendments made by section 108 of Pub. L. 87–543 to this section and section 606 of this title, including the experiences of each of the States in making protective payments under the provisions of their respective State plans which are in accord with amendments to this section and section 606 of this title by section 108 of Pub. L. 87–543, together with his recommendations as to continuation and modification in these amendments.

Provision applicable in the case of expenditures under a State plan approved under this subchapter, made during the period beginning Oct. 1, 1962, and ending with the close of June 30, 1967, see section 202(e) of Pub. L. 87–543, set out as an Effective Date of 1962 Amendment note above.

State Plans in Effect July 25, 1962: Automatic Conformity to Amendments

State plans in effect July 25, 1962, deemed to have been conformed to amendment of subsec. (b)(2)(B) of this section by section 104(a) of Pub. L. 87–543, see section 104(b) of Pub. L. 87–543, set out as a note under section 601 of this title.

Cross References

Navajo and Hopi Indians, additional Federal contributions in connection with rehabilitation program, see section 639 of Title 25, Indians.

Section Referred to in Other Sections

This section is referred to in sections 602, 603a, 604, 608, 613, 652, 673, 682, 686, 1308, 1315, 1318, 1319 of this title; title 2 section 906; title 25 section 639.

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