text: SECTION 1. AMENDMENT.
  
      Section 403 of the Social Security Act (42 U.S.C. 603) is amended 
  by inserting after subsection (b) the following new subsection:
      ``(c)(1)(A) If the Secretary determines--
              ``(i) that a State is operating a general welfare 
          assistance program described in paragraph (3) during a calendar 
          quarter, or
              ``(ii) that more than 20 percent of the local governments 
          within a State that provide general welfare assistance are 
          operating programs described in paragraph (3) during a calendar 
          quarter,
  the Secretary shall reduce by 50 percent the amount that such State 
  would otherwise receive under subsection (a) with respect to 
  expenditures made by such State during such quarter for the 
  administration of the aid to families with dependent children program 
  under this part.
      ``(B) If a State receives a reduced payment in a calendar quarter 
  as a result of a determination by the Secretary under subparagraph 
  (A)(ii)--
              ``(i) such State shall reduce for such quarter the payments 
          made to each State office administering the aid to families 
          with dependent children program which is located within the 
          jurisdiction of the local governments described in subparagraph 
          (A)(ii) by an amount equal to 50 percent of the of Federal 
          share of the administrative expenses of such office; and
              ``(ii) such State shall not, as a result of such reduced 
          payment, reduce for such quarter the payments made to any State 
          office administering the aid to families with dependent 
          children program which is not located within the jurisdiction 
          of the local governments described in subparagraph (A)(ii).
      ``(2) If the Secretary determines that any local government within 
  a State that is not described in paragraph (1)(A) is operating a 
  general welfare assistance program described in paragraph (3) during a 
  calendar quarter, the State shall reduce for such quarter the payments 
  made to any State office administering the aid to families with 
  dependent children program which is located within the jurisdiction of 
  such local government by an amount equal to 50 percent of the of 
  Federal share of the administrative expenses of such office and such 
  amount shall be paid by the State to the Secretary.
      ``(3) A general welfare assistance program described in this 
  paragraph is a general welfare assistance program that--
              ``(A) provides benefits to able-bodied individuals (as 
          determined by the Secretary) who have attained age 18 and who 
          have no dependents (hereafter referred to in this subsection as 
          `able-bodied individuals');
              ``(B) does not have a workfare program that meets the 
          participation rate requirements under paragraph (4); and
              ``(C) does not meet any other requirements set forth in 
          regulations issued by the Secretary.
      ``(4)(A) The participation rate requirements under this paragraph 
  are as follows:
              ``(i) In the case of a workfare program which is 
          implemented after the date of the enactment of this subsection, 
          the participation rate for such program shall be--
                      ``(I) for the second year that the program is 
                  operated, 10 percent; and
                      ``(II) for any succeeding year, the percentage for 
                  the preceding year plus 2 percent.
              ``(ii) In the case of a workfare program which is operating 
          on the date of the enactment of this subsection, the 
          participation rate for such program shall be--
                      ``(I) for 1994--
                              ``(aa) in the case of a program with a 
                          participation rate below 10 percent for 1993, 
                          10 percent; and
                              ``(bb) in the case of a program with a 
                          participation rate between 10 percent and 50 
                          percent for 1993, the program's participation 
                          rate for 1993 plus 2 percent; and
                      ``(II) for any succeeding year, the percentage for 
                  the preceding year plus 2 percent.
      ``(B) The participation rates required under clauses (i) and (ii) 
  of subparagraph (A) shall not exceed 50 percent.
      ``(C) For purposes of this subsection, the term `participation 
  rate' means the percentage of the able-bodied individuals who receive 
  general welfare assistance participating in a workfare program.
      ``(5) On or before the date which is 5 years after the date of the 
  enactment of this subsection, the Secretary shall conduct a review of 
  State and local participation rates and submit to Congress a report 
  containing any of the Secretary's recommendations with respect to the 
  participation rate requirements established under paragraph (4).''.
  
  SEC. 2. APPLICATION OF AMENDMENT.
  
      (a) Except as provided in subsection (b), the amendment made by 
  section 1 shall apply to calendar quarters beginning on or after July 
  1, 1994.
      (b) In the case of a State which the Secretary determines requires 
  State legislation (other than legislation authorizing or appropriating 
  funds) in order to comply with the amendments made by section 1, the 
  State shall not be regarded as failing to comply with such amendments 
  solely on the basis of its failure to meet the requirements of such 
  amendments 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 the enactment of this Act. For purposes 
  of the preceding sentence, in the case of a State that has a 2-year 
  legislative session, each year of such session shall be deemed to be a 
  separate regular session of the State legislature.
target: Amends part A (Aid to Families with Dependent Children) (AFDC) of title IV of the Social Security Act to require States to implement workfare programs for able-bodied residents on welfare aged 18 or over with no dependents in order for the State to maintain its current level of Federal funding for AFDC administrative expenses.
feat_title: To discourage States and local governments from providing general welfare assistance to able-bodied individuals unless such individuals are participating in workfare programs.