text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Adoption Equality Act of 1998''.
  
  SEC. 2. PROMOTION OF ADOPTION OF CHILDREN WITH SPECIAL NEEDS.
  
      (a) In General.--Section 473(a) of the Social Security Act (42 
  U.S.C. 673(a)) is amended by striking paragraph (2) and inserting the 
  following:
      ``(2)(A) For purposes of paragraph (1)(B)(ii), a child meets the 
  requirements of this paragraph if such child--
              ``(i) prior to termination of parental rights and the 
          initiation of adoption proceedings was in the care of a public 
          or licensed private child care agency or Indian tribal 
          organization either pursuant to a voluntary placement agreement 
          (provided the child was in care for not more than 180 days) or 
          as a result of a judicial determination to the effect that 
          continuation in the home would be contrary to the safety and 
          welfare of such child, or was residing in a foster family home 
          or child care institution with the child's minor parent (either 
          pursuant to such a voluntary placement agreement or as a result 
          of such a judicial determination); and
              ``(ii) has been determined by the State pursuant to 
          subsection (c) to be a child with special needs, which needs 
          shall be considered by the State, together with the 
          circumstances of the adopting parents, in determining the 
          amount of any payments to be made to the adopting parents.
      ``(B) Notwithstanding any other provision of law, and except as 
  provided in paragraph (7), a child who is not a citizen or resident of 
  the United States and who meets the requirements of subparagraph (A) 
  shall be treated as meeting the requirements of this paragraph for 
  purposes of paragraph (1)(B)(ii).
      ``(C) A child who meets the requirements of subparagraph (A), who 
  was determined eligible for adoption assistance payments under this 
  part with respect to a prior adoption (or who would have been 
  determined eligible for such payments had the Adoption and Safe 
  Families Act of 1997 been in effect at the time that such determination 
  would have been made), and who is available for adoption because the 
  prior adoption has been dissolved and the parental rights of the 
  adoptive parents have been terminated or because the child's adoptive 
  parents have died, shall be treated as meeting the requirements of this 
  paragraph for purposes of paragraph (1)(B)(ii).''.
      (b) Exception.--Section 473(a) of the Social Security Act (42 
  U.S.C. 673(a)) is amended by adding at the end the following:
      ``(7)(A) Notwithstanding any other provision of this subsection, no 
  payment may be made to parents with respect to any child that--
              ``(i) would be considered a child with special needs under 
          subsection (c);
              ``(ii) is not a citizen or resident of the United States; 
          and
              ``(iii) was adopted outside of the United States or was 
          brought into the United States for the purpose of being 
          adopted.
      ``(B) Subparagraph (A) shall not be construed as prohibiting 
  payments under this part for a child described in subparagraph (A) that 
  is placed in foster care subsequent to the failure, as determined by 
  the State, of the initial adoption of such child by the parents 
  described in such subparagraph.''.
      (c) Requirement for Use of State Savings.--Section 473(a) of the 
  Social Security Act (42 U.S.C. 673(a)), as amended by subsection (b), 
  is amended by adding at the end the following:
      ``(8) A State shall spend an amount equal to the amount of savings 
  (if any) in State expenditures under this part resulting from the 
  application of paragraph (2) on and after the effective date of the 
  amendment to such paragraph made by section 2(a) of the Adoption 
  Equality Act of 1998 to provide to children or families any service 
  (including post-adoption services) that may be provided under this part 
  or part B.''.
      (d) Effective Date.--The amendments made by this section shall take 
  effect on October 1, 1998.
  
  SEC. 3. REDUCTIONS IN PAYMENTS FOR ADMINISTRATIVE COSTS.
  
      (a) In General.--Section 1903 of the Social Security Act (42 U.S.C. 
  1396b) is amended--
              (1) in subsection (a)(7), by striking ``section 
          1919(g)(3)(B)'' and inserting ``subsection (x) and section 
          1919(g)(3)(C)''; and
              (2) by adding at the end the following:
      ``(x) Adjustments to Payments for Administrative Costs.--
              ``(1) Reductions in payments for administrative costs based 
          on determinations of amounts attributable to benefiting 
          programs.--
                      ``(A) In general.--Subject to paragraph (2), 
                  effective for each of fiscal years 1999 through 2002, 
                  the Secretary shall reduce, for each such fiscal year, 
                  the amount paid under subsection (a)(7) to each State 
                  by an amount equal to the amount determined for the 
                  medicaid program under section 16(k)(2)(B) of the Food 
                  Stamp Act of 1977 (7 U.S.C. 2025(k)(2)(B)). The 
                  Secretary shall, to the extent practicable, make the 
                  reductions required by this paragraph on a quarterly 
                  basis.
                      ``(B) Application.--If the Secretary does not make 
                  the determinations required by section 16(k)(2)(B) of 
                  the Food Stamp Act of 1977 (7 U.S.C. 2025(k)(2)(B)) by 
                  September 30, 1999--
                              ``(i) during the fiscal year in which the 
                          determinations are made, the Secretary shall 
                          reduce the amount paid under subsection (a)(7) 
                          to each State by an amount equal to the sum of 
                          the amounts determined for the medicaid program 
                          under section 16(k)(2)(B) of the Food Stamp Act 
                          of 1977 for fiscal year 1999 through the fiscal 
                          year during which the determinations are made; 
                          and
                              ``(ii) for each subsequent fiscal year 
                          through fiscal year 2002, subparagraph (A) 
                          applies.
                      ``(C) Application of appeal of determinations.--The 
                  provisions of section 16(k)(4) of the Food Stamp Act of 
                  1977 (7 U.S.C. 20205(k)(4)) apply to reductions in 
                  payments under this subsection in the same manner as 
                  they apply to reductions under section 16(k) of that 
                  Act.
              ``(2) Bonus payment for program alignment.--
                      ``(A) In general.--
                              ``(i) Amount.--In addition to any other 
                          payment made under this title to a State for a 
                          fiscal year, the Secretary shall pay to each 
                          State that satisfies the requirements of clause 
                          (ii) a portion of the amount by which--
                                      ``(I) any decrease in Federal 
                                  outlays for amounts paid under 
                                  subsection (a)(7) with respect to the 
                                  State for the fiscal year as a result 
                                  of the application of paragraph (1), as 
                                  determined by the Congressional Budget 
                                  Office, exceeds
                                      ``(II) any increase in Federal 
                                  outlays with respect to the State for 
                                  the fiscal year as a result of the 
                                  application of section 473(a), as 
                                  amended by section 2 of the Adoption 
                                  Equality Act of 1998, as determined by 
                                  the Congressional Budget Office.
                              ``(ii) Requirements.--A State satisfies the 
                          requirements of this clause if the Secretary 
                          determines that--
                                      ``(I) the State's income and 
                                  resource eligibility rules under 
                                  section 1931, taking into account the 
                                  income standards and methodologies 
                                  applied by the State, are not more 
                                  restrictive than the income and 
                                  resource eligibility rules applied by 
                                  the State for the temporary assistance 
                                  to needy families program funded under 
                                  part A of title IV (other than for a 
                                  welfare-to-work program funded under 
                                  section 403(a)(5)); and
                                      ``(II) the State assures the 
                                  Secretary that families applying for 
                                  assistance under the temporary 
                                  assistance to needy families program 
                                  funded under part A of title IV (other 
                                  than families applying solely for 
                                  assistance under a welfare-to-work 
                                  program funded under section 403(a)(5)) 
                                  may apply for medical assistance under 
                                  the State plan under this title without 
  having to submit a separate application for such medical assistance.
                      ``(B) Construction.--Nothing in subparagraph (A) 
                  shall be construed as--
                              ``(i) affecting the application of section 
                          1931;
                              ``(ii) affecting any application 
                          requirements established under this title or by 
                          regulation promulgated under the authority of 
                          this title, including the requirements 
                          established under section 1902(a)(8); or
                              ``(iii) conditioning the right of an 
                          individual to apply for medical assistance 
                          under the State plan under this title upon an 
                          application for assistance under any State 
                          program funded under part A of title IV.
              ``(3) Allocation of administrative costs.--
                      ``(A) In general.--No funds or expenditures 
                  described in subparagraph (B) may be used to pay for 
                  costs--
                              ``(i) eligible for reimbursement under 
                          subsection (a)(7) (or costs that would have 
                          been eligible for reimbursement but for this 
                          subsection); and
                              ``(ii) allocated for reimbursement to the 
                          medicaid program under a plan submitted by a 
                          State to the Secretary to allocate 
                          administrative costs for public assistance 
                          programs.
                      ``(B) Funds and expenditures.--Subparagraph (A) 
                  applies to--
                              ``(i) funds made available to carry out 
                          part A of title IV or title XX;
                              ``(ii) expenditures made as qualified State 
                          expenditures (as defined in section 
                          409(a)(7)(B));
                              ``(iii) any other Federal funds (except 
                          funds provided under subsection (a)(7)); and
                              ``(iv) any other State funds that are--
                                      ``(I) expended as a condition of 
                                  receiving Federal funds; or
                                      ``(II) used to match Federal funds 
                                  under a Federal program other than the 
                                  medicaid program.''.
      (b) Copies of Report on Review of Methodology Used To Make Certain 
  Determinations.--Section 502(b)(2) of the Agricultural Research, 
  Extension, and Education Reform Act of 1998 (Public Law 105-185; 112 
  Stat. 523) is amended by inserting ``, the Committee on Commerce of the 
  House of Representatives, the Committee on Finance of the Senate,'' 
  after ``Representatives''.
target: Adoption Equality Act of 1998 - Amends title IV part E (Federal Payments for Foster Care and Adoption Assistance) of the Social Security Act (SSA) to revise adoption assistance eligibility guidelines for children with special needs. 
  (Sec. 2) Makes eligible for such assistance only children with special needs who before termination of parental rights and the initiation of adoption proceedings were:  (1) in the care of a public or licensed private child care agency or Indian tribal organization, either pursuant to a voluntary placement agreement (provided the child was in care for not more than 180 days), or as a result of a judicial determination to the effect that continuation in the home would be contrary to the child's safety and welfare; or (2) residing in a foster family home or child care institution with the child's minor parent.  Requires a State to consider such special needs, together with the circumstances of the adopting parents, in determining the amount of Federal adoption subsidies paid to them. 
  Prohibits assistance with respect to any child who is not a U.S. citizen or resident and who was adopted outside the United States or was brought into it for adoption purposes. 
  (Sec. 3) Prescribes guidelines under which the Secretary of Health and Human Services shall reduce, for specified fiscal years, Federal payments to the States for administrative costs based on determinations of amounts attributable to the Medicaid program under the Food Stamp Act of 1977. 
  Requires the Secretary to make a bonus payment to any State:  (1) whose income and eligibility rules are not more restrictive than the income and resource eligibility rules applied by the State for the temporary assistance to needy families (TANF) program funded under SSA title IV part A; and (2) which assures the Secretary that families applying for TANF may apply for Medicaid under SSA title XIX.
feat_title: Adoption Equality Act of 1998