article: 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.
summary: 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.