SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Welfare and Medicaid Responsibility 
Exchange Act of 1994''.

SEC. 2. EXCHANGE OF FINANCIAL RESPONSIBILITIES FOR CERTAIN WELFARE 
              PROGRAMS AND THE MEDICAID PROGRAM.

    (a) In General.--In exchange for the Federal funds received by a 
State under section 3 for fiscal years 1996, 1997, 1998, 1999, and 2000 
such State shall provide cash and non-cash assistance to low income 
individuals in accordance with subsection (b).
    (b) Requirement To Provide a Certain Level of Low Income 
Assistance.--
            (1) In general.--The amount of cash and non-cash assistance 
        provided to low income individuals by a State for any quarter 
        during fiscal years 1996, 1997, 1998, 1999, and 2000 shall not 
        be less than the sum of--
                    (A) the amount determined under paragraph (2); and
                    (B) the amount determined under paragraph (3).
            (2) Maintenance of effort with respect to federal programs 
        terminated.--
                    (A) Quarter beginning october 1, 1995.--The amount 
                determined under this paragraph for the quarter 
                beginning October 1, 1995, is an amount equal to the 
                sum of--
                            (i) one-quarter of the base expenditures 
                        determined under subparagraph (C) for the 
                        State,
                            (ii) the product of the amount determined 
                        under clause (i) and the estimated increase in 
                        the consumer price index (for all urban 
                        consumers, United States city average) for the 
                        preceding quarter, and
                            (iii) the amount that the Federal 
                        Government and the State would have expended in 
                        the State in the quarter under the programs 
                        terminated under section 4 solely by reason of 
                        the increase in recipients which the Secretary 
                        of Health and Human Services and the Secretary 
                        of Agriculture estimate would have occurred if 
                        such programs had not been terminated.
                    (B) Succeeding quarters.--The amount determined 
                under this paragraph for any quarter beginning on or 
                after January 1, 1996, is an amount equal to the sum 
                of--
                            (i) the amount expended by the State under 
                        subsection (a) in the preceding quarter,
                            (ii) the product of the amount determined 
                        under clause (i) and the estimated increase in 
                        the consumer price index (for all urban 
                        consumers, United States city average) for the 
                        preceding quarter, and
                            (iii) the amount that the Federal 
                        Government and the State would have expended in 
                        the State in the quarter under the programs 
                        terminated under section 4 solely by reason of 
                        the increase in recipients which the Secretary 
                        of Health and Human Services and the Secretary 
                        of Agriculture estimate would have occurred if 
                        such programs had not been terminated.
                    (C) Determination of base amount.--The Secretary of 
                Health and Human Services, in cooperation with the 
                Secretary of Agriculture, shall calculate for each 
                State an amount equal to the total Federal and State 
                expenditures for administering and providing--
                            (i) aid to families with dependent children 
                        under a State plan under title IV of the Social 
                        Security Act (42 U.S.C. 601 et seq.),
                            (ii) benefits under the food stamp program 
                        under the Food Stamp Act of 1977 (7 U.S.C. 2011 
                        et seq.), including benefits provided under 
                        section 19 of such Act (7 U.S.C. 2028), and
                            (iii) benefits under the special 
                        supplemental program for women, infants, and 
                        children established under section 17 of the 
                        Child Nutrition Act of 1966 (42 U.S.C. 1786),
                for the State during the 12-month period beginning on 
                July 1, 1994.
            (3) Maintenance of effort with respect to state programs.--
        The amount determined under this paragraph for a quarter is the 
        amount of State expenditures for such quarter required to 
        maintain State programs providing cash and non-cash assistance 
        to low income individuals as such programs were in effect 
        during the 12-month period beginning on July 1, 1994.

SEC. 3. PAYMENTS TO STATES.

    (a) In General.--The Secretary of Health and Human Services shall 
make quarterly payments to each State during fiscal years 1996, 1997, 
1998, 1999, and 2000 in an amount equal to one-quarter of the amount 
determined under subsection (b) for the applicable fiscal year and such 
amount shall be used for the purposes described in subsection (c).
    (b) Payment Equivalent to Federal Welfare Savings.--
            (1) In general.--The amount available to be paid to a State 
        for a fiscal year shall be an amount equal to the amount 
        calculated under paragraph (2) for the State.
            (2) Amounts available.--
                    (A) Fiscal year 1996.--In fiscal year 1996, the 
                amount available under this subsection for a State is 
                equal to the sum of--
                            (i) the base amount determined under 
                        paragraph (3) for the State,
                            (ii) the product of the amount determined 
                        under clause (i) and the increase in the 
                        consumer price index (for all urban consumers, 
                        United States city average) for the 12-month 
                        period described in paragraph (3), and
                            (iii) the amount that the Federal 
                        Government and the State would have expended in 
                        the State in fiscal year 1996 under the 
                        programs terminated under section 4 solely by 
                        reason of the increase in recipients which the 
                        Secretary of Health and Human Services and the 
                        Secretary of Agriculture estimate would have 
                        occurred if such programs had not been 
                        terminated.
                    (B) Succeeding fiscal years.--In any succeeding 
                fiscal year, the amount available under this subsection 
                for a State is equal to the sum of--
                            (i) the amount determined under this 
                        paragraph for the State in the previous fiscal 
                        year,
                            (ii) the product of the amount determined 
                        under clause (i) and the estimated increase in 
                        the consumer price index (for all urban 
                        consumers, United States city average) during 
                        the previous fiscal year, and
                            (iii) the amount that the Federal 
                        Government and the State would have expended in 
                        the State in the fiscal year under the programs 
                        terminated under section 4 solely by reason of 
                        the increase in recipients which the Secretary 
                        of Health and Human Services and the Secretary 
                        of Agriculture estimate would have occurred if 
                        such programs had not been terminated.
            (3) Determination of base amount.--The Secretary of Health 
        and Human Services, in cooperation with the Secretary of 
        Agriculture, shall calculate the amount that the Federal 
        Government expended for administering and providing--
                    (A) aid to families with dependent children under a 
                State plan under title IV of the Social Security Act 
                (42 U.S.C. 601 et seq.),
                    (B) benefits under the food stamp program under the 
                Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), 
                including benefits provided under section 19 of such 
                Act (7 U.S.C. 2028), and
                    (C) benefits under the special supplemental program 
                for women, infants, and children established under 
                section 17 of the Child Nutrition Act of 1966 (42 
                U.S.C. 1786),
        in each State during the 12-month period beginning on July 1, 
        1994.
    (c) Purposes for Which Amounts May Be Expended.--
            (1) Medicaid program.--
                    (A) In general.--Notwithstanding any other 
                provision of law, during fiscal years 1996, 1997, 1998, 
                1999, and 2000 a State shall--
                            (i) except as provided in subparagraph (B), 
                        provide medical assistance under title XIX of 
                        the Social Security Act in accordance with the 
                        terms of the State's plan in effect on January 
                        1, 1994, and
                            (ii) use the funds it receives under this 
                        section toward the State's financial 
                        participation for expenditures made under the 
                        plan.
                    (B) Changes in eligibility during fiscal years 
                1998, 1999, and 2000.--During fiscal years 1998, 1999, 
                and 2000, a State may change State plan requirements 
                relating to eligibility for medical assistance under 
                title XIX of the Social Security Act if the aggregate 
                expenditures under such State plan for the fiscal year 
                do not exceed the amount that would have been spent if 
                a State plan described in subparagraph (A)(i) had been 
                in effect during such fiscal year.
                    (C) Waiver of requirements.--The Secretary of 
                Health and Human Services may grant a waiver of the 
                requirements under subparagraphs (A)(i) and (B) if a 
                State makes an adequate showing of need in a waiver 
                application submitted in such manner as the Secretary 
                determines appropriate.
            (2) Excess.--A State that receives funds under this section 
        that are in excess of the State's financial participation for 
        expenditures made under the State plan for medical assistance 
        under title XIX of the Social Security Act shall use such 
        excess funds to provide cash and non-cash assistance for low 
        income families.
    (d) Denial of Payments for Failure To Maintain Effort.--No payment 
shall be made under subsection (a) for a quarter if a State fails to 
comply with the requirements of section 2(b) for the preceding quarter.
    (e) Entitlement.--This section constitutes budget authority in 
advance of appropriations Acts, and represents the obligation of the 
Federal Government to provide the payments described in subsection (a).

SEC. 4. TERMINATION OF CERTAIN FEDERAL WELFARE PROGRAMS.

    (a) Termination.--
            (1) AFDC.--Part A of title IV of the Social Security Act 
        (42 U.S.C. 601 et seq.) is amended by adding at the end the 
        following new section:

                       ``termination of authority

    ``Sec. 418. The authority provided by this part shall terminate on 
October 1, 1995.''.
            (2) JOBS.--Part F of title IV of the Social Security Act 
        (42 U.S.C. 681 et seq.) is amended by adding at the end the 
        following new section:

                       ``termination of authority

    ``Sec. 488. The authority provided by this part shall terminate on 
October 1, 1995.''.
            (3) Special supplemental food program for women, infants, 
        and children (WIC).--Section 17 of the Child Nutrition Act of 
        1966 (42 U.S.C. 1786) is amended by adding at the end the 
        following new subsection:
    ``(q) The authority provided by this section shall terminate on 
October 1, 1995.''.
            (4) Food stamp program.--The Food Stamp Act of 1977 (7 
        U.S.C. 2011 et seq.) is amended by adding at the end the 
        following new section:

``SEC. 24. TERMINATION OF AUTHORITY.

    ``The authority provided by this Act shall terminate on October 1, 
1995.''.
    (b) References in Other Laws.--
            (1) In general.--Any reference in any law, regulation, 
        document, paper, or other record of the United States to any 
        provision that has been terminated by reason of the amendments 
        made in subsection (a) shall, unless the context otherwise 
        requires, be considered to be a reference to such provision, as 
        in effect immediately before the date of the enactment of this 
        Act.
            (2) State plans.--Any reference in any law, regulation, 
        document, paper, or other record of the United States to a 
        State plan that has been terminated by reason of the amendments 
        made in subsection (a), shall, unless the context otherwise 
        requires, be considered to be a reference to such plan as in 
        effect immediately before the date of the enactment of this 
        Act.

SEC. 5. FEDERALIZATION OF THE MEDICAID PROGRAM.

    Beginning on October 1, 2000--
            (1) each State with a State plan approved under title XIX 
        of the Social Security Act shall be relieved of administrative 
        or financial responsibility for the medicaid program under such 
        title of such Act,
            (2) the Secretary of Health and Human Services shall assume 
        such responsibilities and continue to conduct such program in a 
        State in any manner determined appropriate by the Secretary 
        that is in accordance with the provisions of title XIX of the 
        Social Security Act, and
            (3) all expenditures for the program as conducted by the 
        Secretary shall be paid by Federal funds.

SEC. 6. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR TECHNICAL 
              AND CONFORMING AMENDMENTS.

    The Secretary of Health and Human Services shall, within 90 days 
after the date of enactment of this Act, submit to the appropriate 
committees of Congress, a legislative proposal providing for such 
technical and conforming amendments in the law as are required by the 
provisions of this Act.
Welfare and Medicaid Responsibility Exchange Act of 1994 - Provides for the termination of AFDC (Aid to Families with Dependent Children), JOBS (Job Opportunities and Basic Skills Training Program), WIC (Special Supplemental Food Program for Women, Infants, and Children), and food stamp programs after FY 1995, shifting financial responsibility to the States for providing similar assistance to low-income individuals, with such assistance paid for out of a reduction in the State's share of Medicaid funding equivalent to the Federal welfare savings. 
Federalizes the Medicaid program after FY 2000, relieving States of their administrative or financial responsibility for it.
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