Family Support Act of 1988

(Conference report filed in House, H. Rept. 100-998) Family Support Act of 1988 - Title I: Child Support and Establishment of Paternity - Subtitle A: Child Support - Amends part D (Child Support and Establishment of Paternity) of title IV of the Social Security Act to require the withholding of child support payments from the non-custodial parent's wages upon the issuance or modification of a child support order for families receiving part D services. Waives such withholding requirement when both parents agree to an alternative arrangement or the State finds good cause to rely on an alternative arrangement. Requires immediate wage withholding for all new child support orders issued on or after January 1, 1994. Requires the Secretary of Health and Human Services to study the feasibility of requiring immediate income withholding with respect to all child support awards. Amends part A (Aid to Families with Dependent Children) (AFDC) of the Act to exclude the first $50 of child support payments which were due for a prior month from the determination of a family's need for AFDC payments in the month during which such payments were received. Makes child support award guidelines binding. Creates a rebuttable presumption in any judicial or administrative proceeding that the child support award which results from the application of such guidelines is correct. Directs States to review the appropriateness of guidelines for child support award amounts at least once every four years. Requires that child support awards for AFDC families be reviewed and adjusted in accordance with such guidelines at least once every three years unless such review would not be in the child's best interest and neither parent requests such review. Requires such review of any other child support award being enforced under part D if either parent requests such review. Gives parents at least 30 days notice of pending review and adjustment of a child support award. Directs the Secretary to complete a study, within two years of this Act's enactment, on the impact on child support awards and the courts of requiring a State to periodically review all child support orders in effect in such State. Requires the Secretary to enter into an agreement with each of four States by April 1, 1989, to conduct a two-year demonstration project testing and evaluating model procedures for reviewing child support award amounts. Requires States to inform AFDC families on a monthly basis, rather than annually, of the amount of child support collected on their behalf. Subtitle B: Establishment of Paternity - Establishes State performance standards for the establishment of paternity which require the State's paternity establishment percentage for a fiscal year to be: (1) at least 50 percent; (2) the State's percentage for FY 1988 increased by three percentage points for each fiscal year after FY 1989; or (3) equal to or greater than the average percentage for all States. Authorizes the Secretary to modify such requirements to take into account variables which may affect a State's ability to meet such requirements. Directs the Secretary to report annually to the Congress regarding the data upon which State paternity establishment percentages are based and the performance of States in establishing paternity. Requires the parties in a contested paternity case to submit to genetic tests upon the request of a party in such case. Authorizes States to charge parties who are not AFDC recipients for the costs of such tests. Encourages States to establish and implement simple civil processes for voluntarily acknowledging paternity and a civil procedure for establishing paternity in contested cases. Makes the provision requiring State procedures that permit the establishment of paternity in an individual who is under age 18 applicable, as of August 16, 1984, to any child for whom paternity has not been established or a paternity action has been brought but dismissed due to a statute of limitations of less than 18 years. Raises the Federal matching rate to 90 percent (from 68 percent in FY 1988) for laboratory costs incurred in determining paternity. Subtitle C: Improved Procedures for Child Support Enforcement and Establishment of Paternity - Requires the Secretary to establish time limits within which a State must accept and respond to requests for assistance in establishing and enforcing child support orders and distribute amounts collected as child support. Directs the Secretary to establish an advisory committee, composed of State officials involved in the Child Support Enforcement program, with which the Secretary must consult before issuing regulations regarding time limits on accepting and responding to child support establishment and enforcement requests. Requires the issuance of final regulations by the first day of the tenth month after this Act's enactment. Requires States which do not have an automated data processing and information retrieval system in effect to submit an automated data processing planning document to the Secretary by October 1, 1991, and have an operational system in effect by October 1, 1995. Authorizes the Secretary to waive the Act's requirements for such documents and systems if the State has an alternative system which is in substantial compliance with the Act's requirements and meets certain other child support requirements or provides assurances that steps will be taken to improve the States child support enforcement program. Repeals the 90 percent Federal matching rate for automated data systems. Directs the Secretary of Labor to give the Secretary prompt access to wage and unemployment compensation claims information and data maintained by the Department of Labor and State employment security agencies. Amends title III (Unemployment Compensation) of the Act to require States to cooperate in making such information available. Amends title II (Old Age, Survivors and Disability Insurance) of the Act to require States to collect the social security numbers of both parents when their child is born for use by State agencies administering Child Support Enforcement programs unless the State finds good cause for not requiring such numbers. Establishes the Commission on Interstate Child Support which, during FY 1990, must hold one or more national conferences on reform of interstate child support procedures. Directs the Commission to submit a report to the Congress by May 1, 1991, containing recommendations for improving the interstate establishment and enforcement of child support and for revising the Uniform Reciprocal Enforcement of Support Act. Terminates the Commission on July 1, 1991. Authorizes appropriations for such Commission. Excludes the cost of certain interstate child support enforcement projects from the computation of the incentive payment to a State for its child support collection efforts. Directs the Secretary to conduct a study of the pattern of expenditures on children in two-parent families, in single-parent families following divorce, and in single-parent families in which the parents were never married, giving particular attention to the relative standards-of-living in households in which both parents and all of the children do not live together. Directs the Secretary to report to the Congress on such study within two years of this Act's enactment. Authorizes appropriations for such study. Directs the Secretary to collect and maintain up-to-date child support enforcement data. Title II: Job Opportunities and Basic Skills Training Program - Amends the AFDC program to require States to establish a job opportunities and basic skills training program (Program) which helps needy families with children obtain the education, training, and employment that will help them avoid long-term welfare dependence. Requires non-exempt AFDC recipients to participate in such Program if State resources permit such level of participation and necessary child care is available to participants. Allows exempt AFDC recipients to participate on a voluntary basis. Directs the Secretary to permit up to five States to provide Program services, on a voluntary or mandatory basis, to non-custodial parents who are unemployed and unable to meet their child support obligations. Requires such States to evaluate and report to the Secretary on the effectiveness of providing such services to non-custodial parents. Exempts from Program participation an individual who: (1) is ill, incapacitated, or of advanced age; (2) is needed in the home because of the illness or incapacity of another member of the household; (3) is a parent or relative of a child under age three or, at the State's option, less than age three but not less than age one (such exception applies to only one parent in a two-parent family and may be made inapplicable to both parents if the State provides the family with child care); (4) works more than 30 hours or more per week; (5) is a child under age 16 or attending elementary, secondary, or vocational school full time; (6) is a woman in at least her third month of pregnancy; or (7) resides in an area of the State where the Program is not available. Prohibits States from requiring the participation of a parent or relative of a child under age six unless child care is guaranteed and participation is on a part-time basis. Requires non-exempt custodial parents who have not attained age 20 or successfully completed a high-school education to participate in an educational activity. Provides that if the parent, caretaker relative, or dependent child is attending a school or course of vocational or technical training when he or she would otherwise commence participation in the Program, such attendance may constitute satisfactory participation in the Program so long as it is consistent with his or her employment goals, though the costs of such schooling or training shall not be covered under the AFDC program. Provides that when a mandatory Program participant fails without good cause to comply with any requirement imposed on his or her participation in such Program: (1) such participant's needs shall not be taken into account in determining the family's need for AFDC Benefits; and (2) if such participant's spouse is not participating in the Program, the spouse's need shall not be taken into account in determining the family's need for AFDC benefits. Continues sanctions for a minimum of three months upon the participant's second failure to comply and for six months in any case of subsequent noncompliance. Directs States, after three months of a participant's noncompliance, to remind the participant in writing of his or her option to end the sanction. Prohibits a State from requiring an individual to accept a Program position which would result in a loss of income to such individual or his or her family. Requires States to make an initial assessment of the educational, child care, and other supportive service needs as well as the skills, prior work experience, and employability of each Program participant and on that basis develop an employability plan for the participant which, to the maximum extent possible, reflects the participant's preferences. Authorizes the State to then require each participant to enter into an agreement with the State which specifies the participant's obligations under the Program, the duration of his or her participation, and the activities the State will conduct and services it will provide in the course of such participation. Permits the State to assign a case manager to each participant and his or her family to assist the family in obtaining services which may assure the family's effective participation. Requires the State to furnish Program information to AFDC applicants and recipients. Requires State Programs to provide a broad range of services and activities. Authorizes any State to institute a work supplementation program under which such State reserves sums which would otherwise be payable to Program participants as AFDC benefits and uses such sums instead to subsidize jobs for such participants. Authorizes any State to establish a community work experience program to provide experience and training for individuals not otherwise able to obtain employment. Limits such programs to projects which serve a useful public purpose, utilizing, if possible, the participant's prior training, experience, and skills. Prohibits States from requiring AFDC recipients to work off their benefits in community work activities at less than the Federal or State minimum wage rate and, after nine months at the same job, at less than the wage rate for regular employees doing the same job. Requires that a participant's employability plan be reassessed after each six months of an individual's participation in a community work experience program and at the conclusion of each assignment under such program. Requires that community work activities be coordinated with job search activities so that job placement has priority over participation in the community work experience program. Authorizes States to require individuals to participate in job search activities for up to eight weeks after applying for AFDC benefits and for up to eight weeks in any 12-month period thereafter. Prohibits the requirement that individuals engage in job search activities for more than three weeks before the State makes its initial assessment of their needs and skills. Requires States to establish conciliation procedures for the resolution of disputes involving an individual's participation in the Program and have a hearing process to resolve disputes not resolved during the conciliation process. Prohibits the termination or reduction of AFDC benefits as a result of such dispute until the individual has an opportunity for a hearing. Allows Indian tribes and Alaska Native organizations to apply directly to the Secretary within six months of this Act's enactment to establish and administer their own Program. Requires that Program activities be coordinated with Job Training Partnership Act programs and any other relevant employment, training, and education programs available in the State. Requires that the proposed State plan be made available to the public and the State job training coordinating council for review and comments before being submitted to the Secretary of Labor. Requires that each Program assignment take into account the physical capacity, skills, experience, health, family responsibilities, and place of residence of each participant. Prohibits participants from being required to travel an unreasonable distance from home or remain away from home overnight. Requires that workers' compensation and tort claims protection be provided to participants on the same basis as they are provided to others in similar employment. Prohibits work assignments which displace a currently employed worker or position, fill the job of a worker who has been laid off or fired, or infringe on the promotional opportunities of a currently employed worker. Requires each State to establish and maintain a grievance procedure for participant complaints concerning work assignments. Authorizes each State, within one year of this Act's enactment, to: (1) evaluate the demographic characteristics of potential Program participants, giving particular attention to the demands of the State labor market, the training needed to meet those demands, and necessary changes in current service delivery systems; and submit such evaluation to the Secretary. Caps Federal funding for Program costs. Prohibits the use of such funds for construction. Sets the Federal matching rate for Program costs at 90 percent of a State's costs which do not exceed its FY 1987 costs under part C (Work Incentive Program) of title IV of the Act and the greater of 60 percent or the Medicaid (title XIX of the Act) matching rate for additional non-administrative costs. Sets such rate for administrative and work-related supportive service costs at 50 percent. Reduces the rate of Federal reimbursement for all non-administrative Program expenditures to 50 percent if: (1) less than 55 percent of such expenditures are targeted at individuals who have received AFDC benefits for 36 of the preceding 60 months, are custodial parents under age 24 who have not completed and are not enrolled in high school or had little or no work experience in the preceding year, or are members of families in which the youngest child is within two years of being ineligible for AFDC benefits because of age; or (2) State Program participation rates do not equal or exceed specified percentages. Requires the Secretary to: (1) publish final Program regulations within one year of this Act's enactment; (2) submit recommended Program performance standards to the Congress within three years of this Act's enactment; (3) transmit a proposal to the Congress for measuring State progress, providing technical assistance to enable States to meet performance standards, and modifying the Federal matching rate to reflect the relative effectiveness of the various States in carrying out the program; (4) study State implementation of the Program; (5) select five States to participate in three-year demonstration projects to study the relative effectiveness of different approaches for assisting long-term and potentially long-term AFDC recipients under the Program; (6) convene an advisory panel, within three months of this Act's enactment, to design, implement, and monitor a series of Program implementation and evaluation studies; and (7) study the application of the Program to Indians. Authorizes appropriations for the State implementation study for FY 1989 through 1991 and for the effectiveness study for FY 1990 and 1991. Title III: Supportive Services for Families - Directs States to guarantee child care services to AFDC families to the extent that such services are necessary for a family member's employment or participation in an education and training activity of which the State approves. Limits child care payments to applicable local market rates. Requires States to cover the transportation and other work-related expenses necessary for an individual's participation in the Program. Directs States to: (1) establish procedures to ensure that center-based child care will be subject to State and local health and safety requirements; (2) develop guidelines for family day care; and (3) provide the Secretary with such requirements and guidelines. Requires the Secretary to report to the Congress by October 1, 1992, on State and local health and safety standards. Authorizes appropriations for FY 1990 and 1991 for a program under which the Secretary makes grants to States to improve their child care licensing and registration requirements and procedures and to monitor the provision of child care to AFDC children. Requires States to provide matching funds equal to at least ten percent of the grant. Requires the coordination of this Act's child care activities with existing early childhood education programs. Provides a family which loses AFDC eligibility due to an increase of earned income or employment hours, or a loss of earning exclusions with one year of transitional child care if the State determines such care to be necessary for continuing employment and the family has received AFDC benefits for three of the preceding six months. Terminates transitional child care if the family ceases to include a dependent child or the caretaker relative engages in certain conduct prohibited under the AFDC program. Requires families to contribute to the costs of such care on the basis of their ability to pay for such care. Directs the Secretary to: (1) study whether individuals who have been AFDC recipients are again adopting such status in order to requalify for transitional AFDC benefits and, if such is the case, issue regulations, by October 1, 1991, to restrict such requalification; and (2) study and report by September 30, 1997, on the effectiveness of transitional child care in reducing welfare dependence. Amends title XIX (Medicaid) of the Act to require a State to continue a family's Medicaid eligibility for six months after the family loses AFDC eligibility because of increased earnings or employment hours, or a loss of earning exclusions if the family has received AFDC benefits for three of the preceding six months, and for an optional six additional months if the family has received the entire six months of extended Medicaid coverage. Terminates extended Medicaid coverage if the family ceases to include a dependent child or the caretaker relative engaged in certain conduct prohibited under the AFDC program. Authorizes States to provide the extended Medicaid coverage by paying a family's expenses for health insurance offered by the caretaker relative's employer or by the absent parent's employer during the optional six-month extension period, for enrollment in a group health plan offered to the caretaker relative, a group health plan offered by the State to its employees, or a health maintenance organization. Denies a family the optional six-month extension period if its earnings exceed 185 percent of the Federal poverty level. Requires States to impose a premium on families receiving the optional six months of extended coverage, but only if the family's monthly earnings exceed the Federal poverty level and the premium does not exceed three percent of such earnings. Terminates such extended Medicaid coverage after FY 1998. Requires the Secretary to conduct a study and issue a report by January 1, 1993, on the impact of such Medicaid extension provisions. Extends, from October 1, 1988 to October 1, 1989, the requirement that four months of extended Medicaid benefits be provided to families who become ineligible for AFDC benefits due to the collection of child support. Title IV: Related AFDC Amendments - Requires all States to provide AFDC benefits to every family which meets AFDC need standards and whose children are deprived of parental support due to the unemployment of its principal earner. Authorizes a State to limit the number of months for which a family may receive benefits under the unemployed parents program, but only if the State has a program to assist such parents in preparing for and obtaining employment. Prohibits States from denying benefits to such families unless they received benefits for six of the preceding 12 months on the basis of the principal earner's unemployment. Requires States which had an unemployed parents program as of September 26, 1988, to continue to operate such program without a time limitation. Authorizes States to: (1) require unemployed parents to engage in Program activities for up to 40 hours per week; and (2) make payments, at intervals no greater than one month, after the performance of Program activities. Authorizes States to count participation in specified training and education activities, including those established pursuant to this Act, towards up to four of the six quarters of work required in a 13-quarter period for eligibility on the basis of unemployment under the existing title IV program. Treats families who would be receiving AFDC payments if not for the State's decision to set durational limits on such payments as continuing to receive such payments so that eligibility with respect to the quarters of work requirement need not be reestablished. Amends the Medicaid program to require States to provide Medicaid coverage to families which would be receiving AFDC benefits on the basis of the unemployment of the principal earner had the State not set durational limits on such benefits. Directs the Secretary to conduct an evaluation of, and submit reports to the Congress on conventional and time-limited unemployed parents programs. Terminates unemployed parents program requirements on September 30, 1998. Excludes, in determining a family's need and eligibility for AFDC payments: (1) up to $175 per month ($200 per month for a child under age two) per child for child care costs after other disregard provisions have been applied; (2) the first $90 of earned income per month; and (3) earned income credits payable to the family under the Internal Revenue Code. Authorizes States to condition an unmarried minor parent's receipt of AFDC payments on his or her residence with a parent, legal guardian or other adult relative, or in an adult-supervised supportive living arrangement. Makes such requirement inapplicable if: (1) such individual has no living parent or legal guardian or is not allowed to live with such parent or legal guardian; (2) the health and safety of the child or minor parent would be jeopardized if such individual lived with the parent or legal guardian; (3) such individual has not lived at home for at least one year prior to the child's birth or making a claim for AFDC payments; or (4) the State otherwise finds good cause for waiving the requirement. Requires that (where possible) AFDC payments be made to the parent, legal guardian, or adult relative on behalf of the minor parent and child. Requires each State to make scheduled reevaluations of its need and payment standards for AFDC benefits at least once every three years and report to the Secretary and the public on the results of such reevaluations. Requires the Secretary to report promptly to the Congress regarding such results. Directs the Congressional Budget Office to report, within one year of this Act's enactment, on its study into the implementation of a minimum national payment standard under the AFDC program. Requires the National Academy of Sciences to conduct a study of a new national System of welfare benefits for low-income families with children, giving particular attention to what an appropriate national minimum benefit might be and how it should be calculated. Directs the Academy to report its recommendations to the Secretary (for prompt transmittal to the Congress) within two years of this Act's enactment. Title V: Demonstration Projects - Authorizes appropriations for FY 1990 through 1992 for grants to States to conduct demonstration projects testing: (1) the effect of in-home early childhood development programs and pre-school center-based development programs on families receiving AFDC benefits and participating in the Program; (2) financial incentives and interdisciplinary approaches to reducing school dropouts, encouraging skill development, and avoiding welfare dependence; and (3) more effective methods of providing coordination and services to ensure long-term family self-sufficiency through community-based comprehensive family support services involving a partnership between the State and community-based organizations. Requires the Secretary to make grants to up to five States for demonstration projects testing whether the employment of parents of dependent children receiving AFDC benefits as day care providers will facilitate the conduct of the Program and afford a significant number of families a realistic opportunity to avoid welfare dependence. Authorizes appropriations for such grant program for FY 1990 through 1992. Directs the Secretary to enter into agreements with up to eight States for the conduct of demonstration projects testing, with respect to individuals who received AFDC benefits by reason of the principal earner's unemployment, the use of a number greater than 100 for, or the complete elimination of limits on, the number of hours per month that such individuals may work and still be considered unemployed for AFDC purposes. Sets forth reporting requirements. Authorizes the Secretary to make grants to States for demonstration projects designed to increase compliance with child access provisions of court orders. Authorizes appropriations for FY 1990 and 1991. Directs the Secretary to report to the Congress on the effectiveness of such projects by July 1, 1992. Directs the Secretary to enter into agreements with from five to ten nonprofit organizations for the conduct of three-year demonstration projects providing technical and financial assistance to private employers to assist them in creating employment and business opportunities for AFDC beneficiaries and other individuals whose income is below the Federal poverty level. Requires the Secretary to submit evaluations of such projects to the Congress by January 1, 1993. Authorizes appropriations for such projects for FY 1990 through 1992. Directs the Secretary to enter into agreements with four States for the conduct of demonstration projects under which each such State establishes a Teen Care Plan providing a range of non-academic services and self-image counseling to high-risk teenagers in order to reduce the rates of teenage pregnancy, suicide, substance abuse, and school drop-out. Requires the Secretary to report to the Congress by October 1, 1992, on State evaluations of the effectiveness of such projects. Authorizes appropriations for such projects for FY 1990 through 1992. Directs the Secretary to extend until June 30, 1990, a waiver granted to Minnesota to conduct a prepaid Medicaid demonstration project. Title VI: Miscellaneous Provisions - Amends part A (General Provisions) of title XI of the Act to include American Samoa in the AFDC program. Limits Federal funding for American Samoa's program to $1,000,000 for any fiscal year. Increases the total amount of Federal payments which may be made to Puerto Rico, Guam, and the Virgin Islands in any fiscal year under titles I (Grants to States for Old-Age Assistance for the Aged), X (Grants to States for Aid to the Blind), XIV (Grants to States for Aid to the Permanently and Totally Disabled), XVI (Grants to States for Aid to the Aged, Blind, or Disabled), and parts A (Aid to Families with Dependent Children) and E (Foster Care and Adoption Assistance) of title IV of the Act. Requires that the Program and the programs under parts A and D of title IV of the Act be administered by an Assistant Secretary for Family Support within the Department of Health and Human Services, who shall be appointed by the President, by and with the advice and consent of the Senate. Makes States responsible for: (1) assuring that Program benefits and benefits under part A and D of title IV of the Act are provided in an integrated manner; and (2) ensuring that AFDC applicants and recipients are encouraged, assisted, and required to cooperate in establishing paternity and enforcing child support obligations, and are notified of the paternity establishment and child support services for which they may be eligible. Directs the Secretary to issue final regulations, within six months of this Act's enactment, requiring States to implement procedures to detect fraudulent applications for AFDC benefits prior to the establishment of eligibility for such benefits. Directs the Secretary to establish uniform reporting requirements requiring each State to periodically furnish the Secretary with information regarding the child care and transitional Medicaid coverage provided pursuant to this Act. Amends title XX (Block Grants to States for Social Services) to require each State to submit an annual report to the Secretary containing specified information regarding the use of such funds. Makes miscellaneous technical corrections to the Medicare Catastrophic Coverage Act of 1988. Extends until July 1, 1989, the moratorium on reducing AFDC payments to States which have high erroneous payment rates. Title VII: Funding Provisions - Amends the Deficit Reduction Act of 1984 to extend until January 10, 1994, the authority of the Internal Revenue Service to offset against any refund of Federal taxes the amount of certain non-tax debts owned to Federal agencies. Amends the Internal Revenue Code to require the disclosure of certain tax information to agencies requesting a Federal tax refund offset. Permits business expenses to be deducted above-the-line as reimbursed expenses only if incurred pursuant to a reimbursement or other expense allowance arrangement that requires the employee to substantiate the expenses covered by the arrangement to the person providing the reimbursement, and prohibits such employee from retaining amounts in excess of substantiated expenses. Limits the application of the dependent care credit or assistance exclusion for nonhandicapped children to children under age 13. (Currently such children must be under age 15.) Reduces the amount of a taxpayer's expenses which are eligible for the dependent care credit by the amount excludable from such taxpayer's income under the exclusion for employer-provided dependent care assistance benefits. Prohibits the dependent care credit and exclusion from being claimed unless the taxpayer reports on his or her tax return the correct name, address, and taxpayer identification number of the dependent care provider. Extends from age five to age two the age at which a dependent who is claimed as an exemption on a return must have his or her taxpayer identification number included on such return.

(Measure passed Senate, amended, in lieu of S. 1511, roll call #189 (93-3)) Family Security Act of 1988 - Replaces the Aid to Families with Dependent Children (AFDC) (part A of title IV of the Social Security Act) program with the Child Support Supplement (CSS) program. Title I: Child Support and Establishment of Paternity - Subtitle A: Child Support - Amends part D (Child Support and Establishment of Paternity) of title IV of the Social Security Act to require the withholding of child support payments from the non-custodial parent's wages upon the issuance or modification of a child support order for families receiving part D services. Waives such withholding requirement when both parents agree to an alternative arrangement or the State finds good cause to rely on an alternative arrangement. Requires immediate wage withholding for all new child support cases entered into after January 1, 1994. Requires the Secretary of Health and Human Services to study the feasibility of requiring immediate income withholding with respect to all child support awards. Amends part A of title IV of the Act to exclude the first $50 of child support payments which were due for a prior month from the determination of a family's need for CSS payments in the month during which such payments were received. Amends part D of title IV of the Act to require States to review State guidelines for child support award amounts at least once every five years. Makes such guidelines binding upon judges or other State officials unless the judge or official, pursuant to criteria established by the State, finds good cause to ignore such guidelines. Requires that child support awards for CSS families be reviewed and adjusted in accordance with such guidelines at least once every two years unless such review would not be in the child's best interest and neither parent requests such review. Requires such review and adjustment of a child support award for a non-CSS family upon the request of either parent. Gives parents at least 30 days notice of pending review or adjustment of a child support award. Directs the Secretary to enter into an agreement with each of four States by April 1, 1989, to conduct a two-year demonstration project testing and evaluating model procedures for reviewing child support award amounts. Requires States to inform CSS families on a monthly basis, rather than annually, of the amount of child support collected on their behalf. Subtitle B: Establishment of Paternity - Establishes State performance standards for the establishment of paternity which require the State's paternity establishment percentage for a fiscal year to be: (1) at least 50 percent; (2) the State's percentage for FY 1988 increased by three percentage points for each fiscal year after FY 1989; or (3) equal to or greater than the average percentage for all States. Authorizes the Secretary to modify such requirements to take into account variables which may affect a State's ability to meet such requirements. Directs the Secretary to report annually to the Congress regarding the data upon which State paternity establishment percentages are based and the performance of States in establishing paternity. Raises the Federal matching rate to 90 percent (from 68 percent in FY 1988) for laboratory costs incurred in determining paternity. Subtitle C: Improved Procedures for Child Support Enforcement and Establishment of Paternity - Requires the Secretary to establish time limits within which a State must accept and respond to requests for assistance in establishing and enforcing child support orders and distribute amounts collected as child support. Directs the Secretary to establish an advisory committee, composed of State officials involved in the Child Support Enforcement program, with which the Secretary must consult before issuing regulations regarding time limits on accepting and responding to child support establishment and enforcement requests. Requires the issuance of final regulations by the first day of the tenth month after this Act's enactment. Requires States to establish automatic data processing and information retrieval systems to assist in the administration of the Child Support Enforcement program within ten years of the State's submittal (by October 1, 1990) of an advance planning document for such system to the Secretary, or, if earlier, by the date specified by the State in such document. Authorizes the Secretary to waive the Act's requirements for such documents and systems if the State has an alternative system which is in substantial compliance with the Act's requirements. Sets the Federal share of establishing such a system at 90 percent so long as time limits have not been exceeded. Directs the Secretary of Labor to give the Secretary prompt access to wage and unemployment compensation claims information and data maintained by the Department of Labor and State employment security agencies. Amends title III (Unemployment Compensation) of the Act to require States to cooperate in making such information available. Amends title II (Old Age, Survivors and Disability Insurance) of the Act to require States to collect the social security numbers of both parents when their child is born for use by State agencies administering Child Support Enforcement programs unless the State finds good cause for not requiring such numbers. Establishes the Commission on Interstate Child Support which, by October 1, 1989, must hold one or more national conferences on reform of interstate child support procedures. Directs the Commission to submit a report to the Congress by October 1, 1990, containing recommendations for improving the interstate establishment and enforcement of child support and for revising the Uniform Reciprocal Enforcement of Support Act. Terminates the Commission on November 1, 1990. Authorizes appropriations for such Commission. Title II: Joint Opportunities and Basic Skills Training Program - Amends part A of title IV of the Act to require States to establish, within three years of this Act's enactment, a job opportunities and basic skills training program (Program) which helps needy children and parents avoid long-term welfare dependence. Requires private sector involvement in planning and Program design to assure that participants are trained for jobs that will actually be available in the community. Requires non-exempt CSS recipients to participate in such Program if State resources permit such level of participation and necessary child care is available to participants. Allows exempt CSS recipients to participate on a voluntary basis. Authorizes States to require or allow absent parents who are unemployed and unable to meet child support obligations to participate in the Program. Exempts from Program participation an individual who: (1) is ill, incapacitated, or of advanced age; (2) is needed in the home because of the illness or incapacity of another member of the household; (3) is a parent or relative of a child under age three or, at the State's option, less than age three but not less than age one (such exception applies to only one parent in a two-parent family and may be made inapplicable to both parents if the State provides the family with child care); (4) works more than 30 hours or more per week; (5) is a child under age 16 or attending elementary, secondary, or vocational school full time; (6) is a woman in the third trimester of pregnancy; or (7) resides in an area of the State where the Program is not available. Prohibits the requirement that the parent or a relative of a child under age six who is not the principal earner participate in the Program for more than 24 hours a week, except that such persons may be required to participate in Program educational activities for more than 24 hours a week. Provides that if an individual is attending a school or a course of vocational or technical training designed to lead to employment when he or she would otherwise commence participation in the Program, such attendance may constitute satisfactory participation in the Program, though the costs of such schooling or training shall not be covered by the CSS program. Requires States to make an initial assessment of the education and employment skills of each Program participant and on that basis develop an employability plan for each participant which, to the maximum extent possible, reflects the participant's preferences. Requires that in the case of participants who have attained age 22 and do not have a high-school diploma an emphasis be placed on meeting educational needs. Authorizes the State to: (1) require each participant to then negotiate a contract with the State which specifies the duration of his or her participation as well as the activities the State will conduct and services it will provide in the course of such participation; and (2) assign to each participating family a case manager who is responsible for obtaining, on the family's behalf, any other services which may assure the family's effective participation. Requires State Programs to provide a broad range of services and activities, including: (1) high school or equivalent education; (2) remedial education to achieve basic literacy and instruction in English as a second language; (3) post-secondary education as appropriate; (4) work supplementation programs; (5) community work experience programs; (6) job search, training, and placement services; and (7) other employment, education, and training activities as determined by the State and allowed by the Secretary. Requires non-exempt custodial parents who have not attained age 22 or successfully completed a high school education to participate in high school or equivalent education, or literacy or English language education. Authorizes States to require such parents to participate in training or work activities if they fail to make good progress in educational activities or if their participation in such activities is inappropriate. Requires that by FY 1995 one parent in each two-parent family receiving CSS benefits by reason of the principal earner's unemployment be made to work at least 16 hours per week in a community work experience program. Makes such work requirement applicable a year earlier in States that provide CSS benefits to such families by June 1, 1988. Requires each work assignment to be consistent with the physical capacity, skills, experience, health, family responsibilities, and place of residence of each participant and not involve unreasonable travel. Prohibits: (1) wage rates for work assignments from being set at less than the greater of the Federal or State minimum wage; and (2) work assignments which displace a currently employed worker or position, fill established unfilled position vacancies, infringe the promotional opportunities of current employees, or impair existing contracts for services or collective bargaining agreements. Requires States to establish a procedure for resolving employee complaints regarding such work assignments. Prohibits States from requiring participants to accept a job which would result in a loss of income to the participant's family. Requires that each Governor find his or her State Program consistent with the criteria for coordinating activities included in the Governor's Coordination and Special Services Plan prepared under the Job Training Partnership Act before submitting it to the Secretary. Authorizes any State to institute a work supplementation program under which such State reserves sums which would otherwise be payable to program participants as child support supplements and uses such sums instead to subsidize jobs for such participants. Authorizes any State to establish a community work experience program to provide experience and training for individuals not otherwise able to obtain employment. Limits such programs to projects which serve a useful public purpose, utilizing, if possible, the participant's prior training, experience, and skills. Requires that other Program activities be coordinated with the community work program so that job placement has priority over participation in such program. Authorizes States to require individuals to participate in job search activities for up to eight weeks after applying for child support supplements and for up to eight weeks in any 12-month period thereafter. Prohibits the requirement that individuals engage in job search activities for more than three weeks before the State makes an assessment of their education and employment skills. Subjects the families of individuals who are required to participate in the Program and fail to do so without good cause to the reduction or elimination of child support supplements. Continues sanctions for a minimum of three months if such individual failed to participate on a previous occasion and for six months if such noncompliance has occurred more than one time previously. Requires the State to notify recipients of any failure to comply with work or training requirements and the actions which must be taken to terminate the sanction. Requires States to establish conciliation procedures for the resolution of disputes involving an individual's participation in the Program and have a hearing process to resolve disputes not resolved during the conciliation process. Prohibits the termination or reduction of CSS benefits as a result of such dispute until the individual has an opportunity for a hearing. Caps Federal funding for Program costs. Sets the Federal matching rate for Program costs at 90 percent of a State's costs which do not exceed its FY 1987 costs under part C (Work Incentive Program) of title IV of the Act and the greater of 60 percent or the Medicaid (title XIX of the Act) matching rate for additional non-administrative costs. Sets such rate for administrative and work-related supportive service costs at 50 percent. Reduces the rate of Federal reimbursement for all non-administrative Program expenditures to 50 percent if: (1) less than 50 percent of such expenditures are targeted at individuals who have received child support supplements for 30 of the preceding 60 months, are custodial parents under age 24 who have not completed and are not enrolled in high school, or had little or no work experience in the preceding year; or (2) State Program participation rates do not equal or exceed specified percentages. Allows Indian tribes and Alaska Native organizations to apply directly to the Secretary within six months of this Act's enactment to establish and administer their own Program. Requires States to provide child care (or day care for an incapacitated individual living in the home of a dependent child) for families to the extent that it is necessary to an individual's participation in work, education, and training activities. Provides coverage for certain transportation and other work-related expenses. Amends part C of title IV of the Act to extend work incentive demonstration programs until September 30, 1990. Sets forth technical and conforming amendments. Requires the Secretary to: (1) publish final Program regulations within one year of this Act's enactment; (2) submit recommended Program performance standards to the Congress within five years of this Act's enactment; (3) study State implementation of the Program; (4) select five States to participate in three-year demonstration projects to study the relative effectiveness of different approaches for assisting long-term and potentially long-term CSS recipients under the Program; and (5) study the application of the Program to Indians. Sets forth effectiveness study reporting requirements. Authorizes appropriations for the State implementation study for FY 1989 through 1991 and for the effectiveness study for FY 1989 through 1993. Title III: Transitional Assistance for Families After Loss of CSS Eligibility - Provides a family which loses CSS eligibility due to an increase of earned income or employment hours, or a loss of earning exclusions with nine months of transitional child care if the State determines such assistance to be necessary for continuing employment and the family has received child support supplements for three of the preceding six months. Terminates transitional child care if the family ceases to include a dependent child or the parent or caretaker relative engages in certain conduct prohibited under the CSS program. Requires families to contribute to the costs of such care on the basis of their ability to pay for such care. Makes families ineligible for such care after 1993. Directs the Secretary to study and report by January 1, 1993, on the effectiveness of transitional child care in reducing welfare dependence. Amends title XIX (Medicaid) of the Act to require a State to continue a family's Medicaid eligibility for six months after the family loses CSS eligibility because of increased earnings or employment hours, or a loss of earning exclusions if the family has received supplement payments for three of the preceding six months, and for an optional six additional months if the family has received the entire six months of extended Medicaid coverage. Terminates extended Medicaid coverage if the family ceases to include a dependent child or the caretaker relative engaged in certain conduct prohibited under the CSS program. Authorizes States to provide the extended Medicaid coverage by paying a family's expenses for health insurance offered by the caretaker relative's employer (or, if more cost-effective, by the absent parent's employer) or a family's expenses, during the optional six-month extension period, for enrollment in a group health plan offered to the caretaker relative, a group health plan offered by the State to its employees, or a health maintenance organization. Denies a family the optional six-month extension period if its earnings exceed 185 percent of the Federal poverty level. Requires States to impose a premium on families receiving the optional six months of extended coverage, but only if the family's monthly earnings exceed the Federal poverty level and the premium does not exceed three percent of such earnings. Requires the Secretary to conduct a study and issue a report by January 1, 1993, on the impact of such Medicaid extension provisions. Title IV: Family Living Arrangements - Amends part A of title IV of the Act to condition an unmarried minor parent's receipt of CSS payments on his or her residence with a parent, legal guardian or other adult relative, or in an adult-supervised supportive living arrangement. Makes such requirement inapplicable if: (1) such individual has no living parent or legal guardian or is not allowed to live with such parent or legal guardian; (2) the health and safety of the child or minor parent would be jeopardized if such individual lived with the parent or legal guardian; (3) such individual has not lived at home for at least one year prior to the child's birth or making a claim for CSS payments; or (4) the State otherwise finds good cause for waiving the requirement. Requires that (where possible) CSS payments be made to the parent, legal guardian, or adult relative on behalf of the minor parent and child. Requires all States to provide child support supplements to every family which meets CSS program need standards and whose children are deprived of parental support due to the unemployment of its principal earner. Authorizes a State to limit the number of months for which a family may receive supplements under the unemployed parents program, but only if the State has a program to assist such parents in preparing for and obtaining employment. Prohibits States from denying supplements to such families unless they received supplements for six of the preceding 12 months on the basis of the principal earner's unemployment. Authorizes States to: (1) require unemployed parents to engage in Program activities for up to 40 hours per week; and (2) make supplement payments, at intervals no greater than one month, after the performance of Program activities. Authorizes States to count participation in specified training and education activities, including those established pursuant to this Act, towards up to four of the six quarters of work required in a 13-quarter period for eligibility on the basis of unemployment under the existing title IV program. Treats families who would be receiving supplements if not for the State's decision to set durational limits on such payments as continuing to receive such supplements so that eligibility with respect to the quarters of work requirement need not be reestablished. Amends the Medicaid program to require States to provide Medicaid coverage to families which would be receiving child support supplements on the basis of the unemployment of the principal earner had the State not set durational limits on such benefits. Directs the Secretary to conduct an evaluation of, and report to the Congress by October 1, 1993, on the unemployed parents program. Requires each State to make scheduled reevaluations of its need and payment standards for CSS benefits at least once every five years and report to the Secretary and the Congress regarding the results of the reevaluations. Requires the Congressional Budget Office to report, within one year of this Act's enactment, on its study into the implementation of a minimum national payment standard under the CSS program. Title V: Demonstration Projects - Amends part A of title IV of the Social Security Act to establish a program providing grants to States selected to conduct demonstration projects testing whether CSS housing costs can be reduced by constructing and rehabilitating permanent housing for rental to CSS recipients who would otherwise require CSS emergency assistance in the form of temporary housing. Provides that, to be eligible for selection as one of two States authorized to conduct such a project, a State must: (1) be currently providing CSS emergency housing assistance; (2) have an acute need for Federal assistance by virtue of the large number of homeless CSS families, and shortages of low-income housing, in the jurisdiction(s) where such project would be conducted; and (3) submit a plan to achieve significant cost savings over a ten-year period through the conduct of such project. Requires that such grants be used to provide permanent housing which is: (1) owned by the State, an instrumentality of the State, or a nonprofit organization; (2) available to families who have been unable to find decent housing at rents that can be paid with CSS aid for shelter; and (3) located in jurisdictions experiencing a critical shortage of such housing. Requires that: (1) the most costly temporary housing be retired from use in the emergency assistance program as permanent housing becomes available for occupancy, unless temporary housing is demonstrably needed; and (2) the costs of providing permanent housing be lower than costs which would be incurred if, instead, the State made CSS emergency assistance payments providing temporary housing. Sets the State contribution to the cost of constructing or rehabilitating such housing at at least the current State CSS share increased by ten percent. Authorizes appropriations for the grant program for each of the first five fiscal years following FY 1988. Amends part A (General Provisions) of title XI of the Act to authorize the Secretary to make grants to States for one- to five-year demonstration projects for CSS children testing financial incentives and alternative approaches to reducing school dropouts, encouraging skill development, and avoiding welfare dependence. Authorizes appropriations for such grant program for FY 1989 through 1993. Requires the Secretary to make grants to up to five States for demonstration projects testing whether the employment of parents of dependent children receiving child support supplements as day care providers will facilitate the conduct of the Program and afford a significant number of families a realistic opportunity to avoid welfare dependence. Authorizes appropriations for such grant program for FY 1989 through 1993. Directs the Secretary to enter into agreements with up to ten States for the conduct of demonstration projects testing, with respect to individuals who are CSS beneficiaries by reason of the principal earner's unemployment, the use of a number greater than 100 for the number of hours per month that such individuals may work and still be considered unemployed for CSS purposes. Sets forth reporting requirements. Authorizes the Secretary to make grants to States for demonstration projects designed to increase compliance with child access provisions of court orders. Authorizes appropriations for FY 1989 and 1990. Directs the Secretary to report to the Congress on the effectiveness of such projects by July 1991. Directs the Secretary to make grants to between five and ten States for three-year demonstration projects increasing the availability of child care in communities by the acquisition or renovation of child care facilities, and the provision of child care transportation services. Favors States that propose to conduct the project primarily in communities having fewer than 50,000 inhabitants. Requires the Secretary to report to the Congress regarding such projects by October 1, 1991. Authorizes appropriations for FY 1989 through 1991. Directs the Secretary to enter into agreements with from four to ten nonprofit organizations for the conduct of three-year demonstration projects providing technical and financial assistance to private employers to assist them in creating employment and business opportunities for CSS beneficiaries and other individuals whose income is below the Federal poverty level. Requires the Secretary to submit evaluations of such projects to the Congress by October 1, 1989. Authorizes appropriations for such projects for FY 1989 through 1991. Directs the Secretary to enter into agreements with four States for the conduct of demonstration projects under which each such State establishes a Teen Care Plan providing a range of non-academic services and self-image counseling to high-risk teenagers in order to reduce the rates of teenage pregnancy, suicide, substance abuse, and school drop-out. Requires the Secretary to report to the Congress by October 1, 1991, on State evaluations of the effectiveness of such projects. Authorizes appropriations for such projects for FY 1989 through 1991. Directs the Secretary to extend until December 31, 1989, a waiver granted to Minnesota to conduct a prepaid Medicaid demonstration project. Authorizes the Secretary to make grants or award contracts to States for the conduct of one- to three-year demonstration projects testing whether CSS or Medicaid benefit credit cards (using computer chip design) can enhance the efficiency and effectiveness of program operations while ensuring that individuals receive correct benefit amounts on a timely basis. Title VI: Payments to American Samoa, the Commonwealth of Puerto Rico, Guam, and the Virgin Islands - Amends part A (General Provisions) of title XI of the Act to include American Samoa in the CSS program. Limits Federal funding for American Samoa's program to $1,000,000 for any fiscal year. Increases the total amount of Federal payments which may be made to Puerto Rico, Guam, and the Virgin Islands in any fiscal year under titles I (Grants to States for Old-Age Assistance for the Aged), X (Grants to States for Aid to the Blind), XIV (Grants to States for Aid to the Permanently and Totally Disabled), XVI (Grants to States for Aid to the Aged, Blind, or Disabled), and parts A (Aid to Families with Dependent Children) and E (Foster Care and Adoption Assistance) of title IV of the Act. Title VII: Miscellaneous Provisions - Requires that the programs under parts A and D of title IV of the Act be administered by an Assistant Secretary for Family Support within the Department of Health and Human Services, who shall be appointed by the President, by and with the advice and consent of the Senate. Makes States responsible for: (1) assuring that benefits under part A and D of title IV of the Act are provided in an integrated manner; (2) assuring that parents who seek child support supplements are encouraged, assisted, and required to prepare for and obtain employment and to cooperate in establishing paternity and enforcing child support obligations; and (3) notifying CSS recipients of education, employment, and training services, and paternity establishment and child support services for which they are eligible. Directs the Secretary to issue final regulations within six months of this Act's enactment requiring States to implement procedures to detect fraudulent applications for child support supplements prior to the establishment of eligibility for such supplements. Makes miscellaneous technical corrections to the Medicare Catastrophic Coverage Act of 1988. Title VIII: Tax Provisions - Amends the Deficit Reduction Act of 1984 to extend until January 1, 1994, the authority of the Internal Revenue Service to offset against any refund of Federal taxes the amount of certain non-tax debts owed to Federal agencies. Amends the Internal Revenue Code to reduce the deduction for meal and entertainment expenses available to individuals whose income exceeds $360,000. Eliminates such deduction when an individual's income equals or exceeds $440,000. Extends from age five to age two the age at which a dependent who is claimed as an exemption on a return must have his or her taxpayer identification number included on such return. Title IX: Technical and Conforming Amendments Relating to Replacement of AFDC Program by Child Support Supplement Program - Sets forth technical and conforming amendments relating to the replacement of the AFDC Program by the CSS program. Title X: Reorganization and Redesignation of Title IV; General Conforming Amendment Relating to Such Reorganization and Redesignation - Reorganizes and redesignates the parts of title IV of the Act. Amends the Consolidated Omnibus Budget Reconciliation Act of 1985 to extend until the end of FY 1988 the moratorium on the reduction of payments of States for high erroneous payment rates under the CSS program.

(Measure passed House, amended (Inserted text of H.R. 3644), roll call #487 (230-194)) Family Welfare Reform Act of 1987 - Declares that, hereafter, the Aid to Families with Dependent Children program (part A of title IV of the Social Security Act) shall be known as the Family Support Program (FSP) and the aid paid to needy families with dependent children shall be called family support supplements. Title I: National Education, Training, and Work (Network) Program - Amends the Aid to Families with Dependent Children (AFDC) program to require States to establish an education, training, and work program (Program) which helps needy children and parents avoid long-term welfare dependence. Requires private sector involvement in planning and Program design to assure that participants are trained for jobs that will actually be available in the community. Requires adult recipients of family support supplements to participate in the Program if it is available in the political subdivision where he or she resides and State resources otherwise permit. Directs the State to fully inform such recipients of the opportunities offered under the Program. Lists recipients who are exempt from mandatory participation in the Program, including individuals who: (1) are ill, incapacitated, pregnant, or age 60 or older; (2) are needed at home due to the illness or incapacity of another family member; (3) work 20 or more hours a week; (4) are children under age 16 or attending, full time, an elementary, secondary, or vocational school, except in the case of certain minor parents; or (5) care for a child under age three, but such exception shall apply to only one parent in two-parent families. Prohibits States from requiring the participation of a parent or relative of a child under age six unless day or infant care is guaranteed by the State and participation is on a part-time basis. Authorizes the Secretary of Health and Human Services to permit States to require the participation of a parent or relative of a child who has attained age one but not age three if infant care is guaranteed by the State, within certain dollar limitations, and participation is on a part-time basis and emphasizes education and training. Provides that if the caretaker relative or dependent child is attending a school or a course of vocational or technical training designed to lead to employment when he or she would otherwise commence participation in the Program, such attendance may constitute satisfactory participation in the Program, though the costs of such schooling or training shall not be covered by the FSP. Directs States to give priority in Program participation to families: (1) with teenage parents and parents who were under age 18 when their first child was born; (2) that have been receiving family support supplements continuously for two or more years; (3) with parents who lack a high school diploma or its equivalent; and (4) whose youngest child is within two years of being ineligible for family support supplements. Requires States to make an initial assessment of the educational, child care, and other supportive service needs as well as the skills, prior work experience, and employability of each Program participant and on that basis negotiate a family support plan with each participant which, to the maximum extent possible, reflects the participant's preferences. Requires each participant to then negotiate a contract with the State which specifies the duration of his or her participation as well as the activities the State will conduct and services it will provide in the course of such participation. Directs the State to assign a case manager to each participating family who is responsible for: (1) obtaining, on the family's behalf, any other services which may assure the family's effective participation; (2) monitoring a participant's progress; and (3) periodically reviewing and renegotiating the family support plan and the participant's contract with the State. Requires State Programs to provide a broad range of services and activities. Authorizes any State to institute a work supplementation program under which such State reserves sums which would otherwise be payable to program participants as family support supplements and uses such sums instead to subsidize jobs for such participants. Authorizes any State to establish a community work experience program to provide experience and training for individuals who have not been employed during the preceding six months and are not otherwise able to obtain employment. Limits such programs to projects which serve a useful public purpose utilizing, if possible, the participant's prior training, experience, and skills. Prohibits Program participants from filling established unfilled position vacancies. Limits community work program participants to work or training (or both) for up to six months or unpaid work experience or training for up to three months. Requires that: (1) a reassessment be made and a new employability plan developed for participants who do not obtain employment after participation in a community work program; and (2) other Program activities be coordinated with the community work program so that job placement has priority over participation in such program. Prohibits an individual from participating in job search without participating in one or more other Program services or activities if job search has continued for eight weeks or longer without the individual obtaining a job. Provides that when a mandatory Program participant fails without good cause to comply with any requirement imposed on his or her participation in such Program: (1) such participant's needs shall not be taken into account in determining the family support supplement; and (2) if such participant's spouse is not participating in the Program, the spouse's need shall not be taken into account in determining the family support supplement. Continues sanctions for a minimum of three months if the participant failed to comply on a previous occasion. Directs States, after three months of a participant's noncompliance, to remind the participant in writing of his or her option to end the sanction. Prohibits a State from requiring an individual to accept a Program position which would result in a loss of income to such individual or his or her family. Sets the Federal matching rate at 90 percent of the expenditures for education and training under the Program to the extent such expenditures do not exceed allotments to the State under part C (Work Incentive Programs) of title IV of the Act for FY 1987, 65 percent of such expenditures which do exceed FY 1987 allotments, and 50 percent of the administrative costs of such Program. Amends part A (General Provisions) of title XI of the Act to authorize up to five States to conduct demonstration projects testing whether eliminating durational standards, used in defining unemployment for family support supplement eligibility purposes, and requiring parents to accept reasonable job offers while preserving their eligibility for supplement payments, would encourage their entrance into the permanent work force and thereby reduce FSP costs. Authorizes the Secretary to make grants to States to assist in financing such projects. Amends part C (Work Incentive Program) of title IV of the Act to create a new part C entitled "Education, Training, and Work Program." Requires that each State FSP plan contain specified provisions and assurances, including assurances that: (1) Program activities are coordinated and not duplicative of existing activities; and (2) local governments and the private sector are involved in Program planning and design so that participants are trained for jobs that are likely to be available in the community. Requires that Program activities be coordinated with Job Training Partnership Act programs and any other relevant employment, training, and education programs available in the State. Requires that the proposed State plan be made available to the public and the State job training coordinating council for review and comments before being submitted to the Secretary of Labor. Authorizes the State job training coordinating council to appeal to the State Governor for acceptance of its recommendation when they differ from proposed State plan provisions. Sets forth the range of services and activities which State Programs may provide, including: (1) high school or equivalent education; (2) remedial education; (3) job search, training, and placement services; (4) counseling information, and referral for participants experiencing personal and family problems which may be affecting their ability to work; and (5) supportive services. Gives any participant lacking a high school diploma the opportunity to participate in a program addressing the education needs identified in the participant's initial assessment without interference from required participation in other programs and activities. Requires that children in participating families be encouraged to engage in the education or training activities available under the Program and be provided with additional services and incentives designed to keep them in school and help them obtain marketable job skills. Deems an individual who attends an accredited postsecondary institution to be satisfactorily participating in the Program for so long as such individual is making satisfactory progress in a vocational or undergraduate education or training program consistent with his or her employment goals. Requires each work assignment to be consistent with the physical capacity, skills, experience, health, family responsibilities, and place of residence of each participant. Prohibits work assignments which displace a currently employed worker or position, impair existing contracts for services or collective bargaining agreements, fill the job of a worker who has been laid off or fired, or infringe on the promotional opportunities of a currently employed worker. Requires that the wage rate for any position to which a participant is assigned be at least equal to the highest of the applicable Federal or State minimum wage or the pay rates of individuals employed in the same or similar occupations by the same employer. Establishes a grievance procedure for complaints about the Program which are received from participants, subgrantees, subcontractors, and other interested persons. Requires the Secretary to: (1) issue performance standards, within one year of this Act's enactment, for the Programs; (2) develop a legislative proposal for modifying the Federal AFDC matching rate so that it reflects the relative effectiveness of the various States in carrying out the Programs; (3) provide for the continuing evaluation of State programs and the conduct of research on making such Programs more effective; and (4) establish uniform reporting requirements requiring each State to periodically furnish specified Program information to the Secretary. Sets forth transitional provisions. Requires each State, within six months of this Act's enactment, to: (1) evaluate its welfare population demographics, giving particular attention to the demands of the State labor market, the training needed to meet those demands, and necessary changes in current service delivery systems; and (2) submit such evaluation to the Secretary. Authorizes appropriations under part C for FY 1988 and 1989. Authorizes States to provide individuals who have been Program participants for at least six months and have been unable to secure unsubsidized employment with transitional subsidized employment with a public or nonprofit private employer for a period which does not exceed six months, unless an extension is determined to be necessary in a review and modification of the family support plan. Amends title XI (General Provisions) of the Act to authorize States to conduct demonstration projects which test: (1) financial incentives and interdisciplinary approaches to reducing school dropouts, encouraging skill development and avoiding the welfare dependence of children receiving family support supplements; (2) the effect of in-home early childhood development and pre-school center-based development programs on families receiving family support supplement payments and participating in this Act's Program; (3) the effectiveness of private organizations and nonprofit community development corporations in creating employment opportunities for supplement recipients; and (4) more effective methods of ensuring long-term family self-sufficiency through community-based comprehensive family support services. Requires each State to institute a program providing grants for training child care personnel. Authorizes States to institute a program providing grants to: (1) local nonprofit child care programs to establish or renovate child care centers and family day care homes; or (2) local child care agencies to recruit, train, and provide other essential supports to new family day care providers. Authorizes appropriations for such demonstration and grant programs. Title II: Day Care, Transportation, and Other Work-Related Expenses - Requires States to either: (1) provide day care for dependent children and incapacitated individuals living in the same home as a dependent child; or (2) reimburse the caretaker relative for the cost of such care, if and to the extent that such care is directly related to an individual's participation in the Program, reasonably necessary for such participation, and cost-effective. Requires entities providing such care to ensure parental access and post in clear public view the telephone number for filing complaints regarding child care quality or health or safety violations. Provides coverage for certain transportation and other work-related costs. Continues day care coverage for at least one year after a family's eligibility for support supplements ceases, but permits States to reduce such coverage on the basis of a family's ability to pay and exclude it altogether when the family's income equals or exceeds 150 percent of the federal poverty level. Authorizes State demonstration projects testing: (1) whether the employment of parents receiving family support supplements as day care providers for children receiving such aid will make additional day care services available while creating employment opportunities for such parents; and (2) the effect of increasing the maximum excludable value of automobiles for FSP eligibility purposes. Directs States to regularly assess the availability and reliability of child care services available to Program participants, and when necessary, develop new child care resources and coordinate FSP child care with other child care programs. Authorizes States to use FSP child care funds to supplement early childhood development programs. Title III: Real Work Incentives - Excludes, in determining a family's eligibility for supplement payments: (1) the earned income of students who are not full-time employees; (2) $100 plus 25 percent of any family member's monthly earned income; (3) $50 of monthly child support payments; and (4) earned income credits payable to the family under the Internal Revenue Code. Authorizes States to disregard certain of the income of dependent children or minor parents applying for family support supplements if the dependent children are full-time students or the income is derived from a Job Training Partnership Act program. Prohibits application of the $100 and 25 percent earned income exclusion in the case of individuals who, without good cause: (1) terminate their employment or reduce their income; (2) refuse a bona fide offer of employment; or (3) fail to make a timely report of their monthly earned income. Authorizes States to increase the amount of an individual's earned income excluded under this Act in making family support supplement eligibility determinations. Title IV: Transitional Services for Families; Extension of Medicaid Eligibility - Extends a family's eligibility for coverage under title XIX (Medicaid) of the Act when the family becomes ineligible for family support supplements due to the caretaker's employment and such family has received supplements in at least three of the preceding six months. Increases the period of extended Medicaid coverage, from four to six months, for families who lose supplement eligibility as the result of the collection or increased collection of child or spousal support under part D (Child Support and Establishment of Paternity) of title IV of the Act. Title V: Child Support Enforcement Amendments - Amends part D (Child Support and Establishment of Paternity) of title IV of the Act to direct States to establish binding guidelines for child support award amounts. (Currently, such guidelines need not be binding.) Creates a rebuttable presumption in any judicial or administrative proceeding that the child support award which results from the application of such guidelines is correct. Requires States to review and, if necessary, update such guidelines once every three years and review and update all child support orders at least once every two years to ensure that they continue to comply with child support award guidelines. Requires States to abide by State due process requirements when updating child support awards. Directs States to: (1) determine the paternity of every child within the State whose family receives family support supplements as soon as possible after the child's birth but in no event later than its 18th birthday; and (2) require the parties in a contested paternity case to submit to genetic tests upon the request of a party in such case, using a 95 percent probability index from blood tests as a rebuttable presumption of paternity. Encourages States to establish and implement simple civil processes for voluntarily acknowledging paternity and a civil procedure for establishing paternity in contested cases. Sets performance standards for paternity determinations from FY 1989 through 1993. Alters the formula for determining the incentive payment to be paid to a State for its child support collection efforts to take into account cases in which a child's paternity has been established but support collection has not begun or amounts to less than $100 a month. Amends part A (General Provisions) of title XI of the Act to authorize States to conduct demonstration projects identifying and testing possible solutions to problems arising in connection with visitation by absent parents and child custody. Authorizes the Secretary to make grants to States to assist in financing such projects. Requires the Department of Health and Human Services to establish time limits within which a State must respond to requests for assistance in locating absent parents or establishing paternity, and begin proceedings to establish child support awards. Requires States to have an operational automatic data processing and information retrieval system for the child support enforcement and establishment of paternity determination process by October 1, 1992. Excludes the cost of certain interstate child support enforcement projects from the computation of the incentive payment to a State for its child support collection efforts. Lowers the Federal matching rate for part D expenses to 66 percent for States which are not fully in compliance with the Child Support Enforcement Amendments of 1984 at any time after the expiration of six months after this Act's enactment. Requires States, with specified exceptions, to immediately withhold court-ordered child support from the wages of parents residing in the State. Establishes a commission to examine the problems of interstate child support enforcement and develop a new model interstate law to facilitate and strengthen such enforcement. Requires such commission to report its findings to the President and the Congress within one year of this Act's enactment. Authorizes appropriations. Directs the Secretary to conduct a study of the patterns of expenditures on children in two-parent families, in single-parent families following divorce, and in single-parent families in which the parents were never married, giving particular attention to the relative standards-of-living in households in which both parents and all of the children do not live together. Directs the Secretary to report to the Congress on such study within two years of this Act's enactment. Authorizes appropriations for such study. Requires the Secretary to make grants to States for demonstration projects under which absent parents who owe child support, but whose income is insufficient to pay such support, are encouraged to participate in work, education, and training activities available in the State. Directs the Secretary to collect and maintain up-to-date child support enforcement data. Requires the Secretary of Labor to make the name, social security number, current address, and place of employment of any specified individual available to the Parent Locator Service and State child support enforcement agencies which request such information. Title VI: Pro-Family Welfare Policies - Requires States to pay family support supplements with respect to dependent children of unemployed parents in two-parent families. Includes within the definition "quarter of work", for the purpose of determining a family's eligibility for assistance, the parent's: (1) full-time attendance as an elementary or secondary school student; (2) full-time attendance in a vocational or technical training course; and (3) participation in a Job Training Partnership Act education or training program. Directs the Comptroller General to conduct a study of State FSP administration in cases involving unemployed parents and recommend changes to the Congress, within six months of this Act's enactment, which would make such administration less cumbersome and prone to error. Directs States to assign an individual case manager to each family receiving family support supplements which is headed by a minor parent. Requires unmarried minor parents to live with a parent, legal guardian, other adult relative, or in a foster home, maternity home, or other supportive living arrangement, unless the State determines that, given specified circumstances, it is impossible or inappropriate for them to do so. Treats the minor parent and minor parent's children as a family separate from the parent and parent's children with whom the minor parent resides in determining the minor parent's eligibility for supplement payments. Authorizes States to condition a minor parent's eligibility on his or her: (1) part-time school attendance; or (2) training in parenting and family living skills. Repeals the requirement that part of the income of the parent of a minor parent with whom such minor parent resides be attributed to the dependent child in a minor parent family. Title VII: Benefit Improvements - Directs each State to re-evaluate annually its FSP need and payment standard, giving particular attention to whether the amount it has assumed to be necessary for shelter is adequate. Sets forth reporting requirements. Increases by 25 percent the Federal share of family support supplements which represent an increase in the supplement level in effect on September 30, 1988. Requires the National Academy of Sciences to conduct a study of a new national system of welfare benefits for low-income families with children giving particular attention to what an appropriate national minimum benefit might be and how it should be calculated. Directs the Academy to report its recommendations to the Secretary (for prompt transmittal to the Congress) within two years of this Act's enactment. Title VIII: Miscellaneous Provisions - Establishes a Commission on the Coordination of Family Support and Food Stamp Policies to conduct a study and make recommendations to the President and the Congress within one year of this Act's enactment regarding the coordination of the food stamp program under the Food Stamp Act of 1977 and the Family Support Program. Directs the Secretary to establish uniform reporting requirements requiring each State to periodically furnish the Secretary with information regarding FSP implementation. Amends title XX (Block Grants to States for Social Services) to require each State to submit an annual report to the Secretary containing specified information regarding the use of such funds. Directs the Secretary to convene an Interagency Panel to design, implement, and monitor a series of implementation and evaluation studies to assess the methods and effects of the programs initiated under this Act. Requires the Panel to report to the President and the Congress annually over the five year period beginning with this Act's enactment on such studies. Establishes a program providing grants to States selected to conduct demonstration projects testing whether FSP housing costs can be reduced by constructing and rehabilitating permanent housing for rental to FSP families who would otherwise require FSP emergency assistance in the form of temporary housing. Provides that, to be eligible for selection as one of three States authorized to conduct such a project, a State must: (1) be currently providing FSP emergency housing assistance; (2) have an acute need for Federal assistance by virtue of the large number of homeless FSP families, and shortages of low-income housing, in the jurisdiction(s) where such project would be conducted; and (3) submit a plan to achieve significant cost saving over a ten-year period through the conduct of such project. Requires that such grants be used to provide permanent housing which is: (1) owned by the State, an instrumentality of the State, or a nonprofit organization; (2) available to families who have been unable to find decent housing at rents that can be paid with FSP aid for shelter; and (3) located in jurisdictions experiencing a critical shortage of such housing. Requires that: (1) the most costly temporary housing be retired from use in the emergency assistance program as permanent housing becomes available for occupancy, unless temporary housing is demonstrably needed; and (2) the costs of providing permanent housing be lower than costs which would be incurred if, instead, the State made FSP emergency assistance payments providing temporary housing. Sets the State contribution to the cost of constructing or rehabilitating such housing at at least the current State FSP share increased by ten percent. Authorizes appropriations for the grant program for each of the first five fiscal years following FY 1987. Authorizes the Secretary to approve, as alternatives to the Family Support Program: (1) a five-year demonstration project testing New York State's Child Support Supplement Program; and (2) a five-year demonstration project testing Washington State's Family Independence Program. Requires the Secretary of Health and Human Services and the Secretary of Housing and Urban Development to establish an Interagency working group to conduct a study and report to the Congress within six months of this Act's enactment on the housing problems faced by FSP families. Provides that in determining a family's support supplement level the needs of a family member who is a drug addict or alcoholic shall not be taken into account if such individual terminates his or her enrollment in a treatment program before such treatment is completed and does not resume treatment. Amends part A (General Provisions) of title XI of the Act to include American Samoa in the Family Support Program. Limits Federal funding for American Samoa's program to $1,000,000 for any fiscal year. Increases the total amount of Federal payments which may be made to Puerto Rico, Guam, and the Virgin Islands in any fiscal year under titles I (Grants to States for Old-Age Assistance for the Aged), X (Grants for States for Aid to the Blind), XIV (Grants to States for Aid to the Permanently and Totally Disabled), XVI (Grants to States for Aid to the Aged, Blind, or Disabled), and parts A (Aid to Families with Dependent Children) and E (Foster Care and Adoption Assistance) of title IV of the Act. Title IX Funding Provisions - Amends the Deficit Reduction Act of 1984 to extend for three years the authority of the Internal Revenue Service to offset against any refund of Federal taxes the amount of certain non-tax debts owed to Federal agencies. (The extension would make the offset provisions applicable to refunds payable before January 1, 1991.) Expresses the congressional intent that such offset provisions extend to all Federal agencies and not be construed as exempting any debts. Directs the Comptroller general to report to the Congress by April 1, 1989, on a study into the operation and effectiveness of such offset provisions. Amends the Internal Revenue Code to exclude the expenses of overnight camps from the income tax credit for employment-related dependent care expenses. Reduces the dependent care tax credit available to individuals whose income exceeds $65,000. Eliminates such credit when an individual's income equals or exceeds $95,000. Prohibits tax credits or deductions for expenditures made in connection with a trade or business consisting of criminal activities. Title X: Food Stamp Program - Food Stamp Family Welfare Reform Act of 1987 - Amends the Food Stamp Act of 1977 to make food stamp program (program) eligibility permanent for households made up solely of members who receive aid to dependent children, supplemental security income assistance or aid to the aged, blind, or disabled under the provisions of the Social Security Act. Excludes from income for purposes of program eligibility: (1) educational assistance for training programs and secondary school equivalency programs; (2) child support payments received under the aid to families with dependent children program (AFDC); (3) certain agricultural commodity two-party payments; (4) advance earned income tax credit payments; and (5) dependent care payments received under specified employment and training programs. Sets maximum monthly dependent care deductions at $200 for each dependent under two years old and $175 for each other dependent. (Current deduction is $160 per month regardless of age.) Provides for annualizing self-employment farm income and expenses. Prohibits the use of post self-employment farm income as an indicator of anticipated income if income changes have occurred or are anticipated. Excludes certain property (including land, equipment, and supplies) from financial resources determinations for one year after a person ceases to be self-employed in farming. Permits higher education students living in households receiving food stamps to retain their program benefits under specified conditions. Sets maximum monthly dependent care reimbursements for employment and training program participants at $200 for each dependent under two years old and $175 for each other dependent. Increases individual maximum transportation and related reimbursable employment and training costs. Revises performance standards criteria, including the requirement that the Office of Technology Assessment develop model performance standards. Directs the Secretary of Agriculture to develop an incentives payment proposal. Authorizes: (1) outreach activities for farm households; and (2) special training for personnel who certify farm households. Requires the Secretary of Agriculture to publish training materials annually. Requires State food stamp offices and points of issuance to be open sufficient hours and at sufficient locations to ensure access by participants who work or study. Requires State agencies to insure that each participating household receive a notice of expiration prior to the start of the last month of certification. Requires coordination of applications for program and AFDC benefits. Authorizes a five-year Family Independence Demonstration Project in the State of Washington as an alternative to providing benefits under the food stamp program. Sets forth Project provisions, including: (1) combination of AFDC and program benefits into a basic cash grant; (2) assistance to the homeless; (3) minimum cash assistance for food at not less than program equivalents; (4) outreach services; (5) employment and training requirements; (6) assurances that the State will permit continued program participation; (7) audit and congressional reporting requirements by the Comptroller General of the United States; (8) a Project evaluation requirement by the Secretary of Agriculture and the Secretary of Health and Human Services; and (9) the ineligibility of persons receiving only child care or medical benefits under the Project from receiving Project food assistance (although they may continue to receive program benefits). Authorizes up to ten State projects under the terms and conditions of the Washington Project, except that such projects could not replace food stamps with cash payments. Directs the Secretary of Agriculture to issue implementing rules by January 1, 1988. Provides for the severability of amendments under this Title. Sets forth effective dates.

(Reported to House from the Committee on Energy and Commerce with amendment, H. Rept. 100-159 (Part III)) Family Welfare Reform Act of 1987 - Declares that, hereafter, the Aid to Families with Dependent Children program (part A of title IV of the Social Security Act) shall be known as the Family Support Program and the aid paid to needy families with dependent children shall be called family support supplements. Title I: National Education, Training, and Work (Network) Program - Amends the Aid to Families with Dependent Children (AFDC) program to require States to establish an education, training, and work program (program) which helps needy children and parents avoid long-term welfare dependence. Requires private sector involvement in planning and Program design to assure that participants are trained for jobs that will actually be available in the community. Requires adult recipients of family support supplements to participate in the Program if it is available in the political subdivision where he or she resides and State resources otherwise permit. Directs the State to fully inform such recipients of the opportunities offered under the Program. Lists recipients who are exempt from mandatory participation in the Program, including individuals who: (1) are ill, incapacitated, pregnant, or age 60 or older; (2) are needed at home due to the illness or incapacity of another family member; (3) work 20 or more hours a week; or (4) care for a child under age six, but such exception shall apply to only one parent in two-parent families. Authorizes States to require the participation of an otherwise exempt parent or relative of a child under age six if day or infant care is guaranteed by the State and participation is on a part-time basis. Directs States to actively encourage exempt supplement recipients to participate in the Program. Provides that if the adult family caretaker is attending a school or a course in vocational or technical training designed to lead to employment when he or she would otherwise commence participation in the Program, such attendance may constitute satisfactory participation in the Program, though the costs of such school or training shall not be covered by the Family Support Program. Directs States to give priority in Program participation to families: (1) with teenage parents and parents who were under age 18 when their first child was born; (2) that have been receiving family support supplements continuously for two or more years; and (3) with children under age six. Requires States to make an initial assessment of the educational needs, skills, and employability of each Program participant and on that basis develop an employability plan for the participant's family which, to the maximum extent possible, reflects the participant's preferences. Requires each participant to then negotiate a contract with the State which specifies the duration of his or her participation as well as the activities the State will conduct and services it will provide in the course of such participation. Directs the State to assign a case manager to each participating family who is responsible for obtaining, on the family's behalf, any other services which may assure the family's effective participation. Requires State Programs to provide a broad range of services and activities, including: (1) high school or equivalent education; (2) remedial education; (3) job search, training and placement services; and (4) counseling, information, and referral for participants experiencing personal and family problems which may be affecting their ability to work. Requires that children in participating families be encouraged to engage in the education or training activities available under the Program and be provided with additional services and incentives designed to keep them in school and help them obtain marketable job skills. Requires each work assignment to be consistent with the physical capacity, skills, experience, health, family responsibilities, and place of residence of each participant. Prohibits work assignments which displace a currently employed worker or position, impair existing contracts for services or collective bargaining agreements, or fill the job of a worker who has been laid off or fired. Establishes a complaint procedure for employees who allege that such prohibitions have been violated. Prohibits States from requiring participants to work at less than the minimum wage or accept a job which would result in a loss of income to the participant or his or her family. Requires that Program activities be coordinated with Job Training Partnership Act programs and any other relevant employment, training, and education programs available in the State. Authorizes any State to institute a work supplementation program under which such State reserves that sums which would otherwise be payable to program participants as family support supplements and uses such sums instead to subsidize jobs for such participants. Authorizes any State to establish a community work experience program to provide experience and training for individuals not otherwise able to obtain employment. Limits such programs to projects which serve a useful public purpose utilizing, if possible, the participant's prior training, experience, and skills. Limits community work program participants to work or training (or both) for up to 12 months or unpaid work experience or training for up to three months. Requires that: (1) a reassessment be made and a new employability plan developed for participants who do not obtain employment after participation in a community work program; and (2) other Program activities be coordinated with the community work program so that job placement has priority over participation in such program. Prohibits an individual from participating in job search without participating in one or more other Program services or activities if job search has continued for eight weeks or longer without the individual obtaining a job. Provides that when a mandatory Program participant fails without good cause to comply with any requirement imposed on his or her participation in such Program: (1) such participant's needs shall not be taken into account in determining the family support supplement; or (2) supplements shall be denied to all family members until the participant complys. Continues sanctions for a minimum of three months if the participant failed to comply on a previous occasion. Directs States, after three months of a participant's noncompliance, to remind the participant in writing of his or her option to end the sanction. Requires the Secretary of Health and Human Services to: (1) publish final regulations and performance standards for such Programs within one year of this Act's enactment; (2) develop a legislative proposal for modifying the Federal AFDC matching rate so that it reflects the relative effectiveness of the various States in carrying out the Programs; and (3) provide for the continuing evaluation of State Programs and the conduct of research on making such Programs more effective. Directs the Secretary to establish uniform reporting requirements requiring each State to periodically furnish Program information to the Secretary, including the average monthly number and types of families assisted under each Program service and activity, the amounts expended on such families, and the length of time for which such families are assisted. Sets the federal matching rate at 75 percent of the expenditures for the operation and administration of the State Program if at least three-fifths of the non-Federal share is contributed in cash and at 50 percent if less than such amount is in cash. Broadens the definition of a "dependent child" to authorize States to provide benefits for individuals under age 21 who are regularly attending a course of higher, secondary, or primary education or vocational or technical training. Authorizes the Secretary to prescribe a standard for determining whether an individual is employed at the time of his or her application for family support supplements which is based upon whether or not the applicant has performed a specific number of hours of work within a designated period. Amends title XI (General Provisions) of the Act to authorize States to conduct demonstration projects testing financial incentives and interdisciplinary approaches to reducing school dropouts, encouraging skill development, and avoiding the welfare dependence of children receiving family support supplements. Authorizes the Secretary to make grants to States to assist in financing such projects. Title II: Day Care, Transportation, and Other Work-Related Expenses - Requires States to either: (1) provide day care for dependent children and incapacitated individuals living in the same home as a dependent child; or (2) reimburse the caretaker relative for the cost of such care, if and to the extent that such care is directly related to an individual's participation in the Program, reasonably necessary for such participation, and cost-effective. Provides coverage for certain transportation and other work-related costs. Continues day care coverage for one year after a family's eligibility for support supplements ceases, but permits States to reduce such coverage on the basis of a family's ability to pay. Directs States to regularly assess the availability and reliability of child care services available to Program participants, and, when necessary, develop new child care resources. Title III: Real Work Incentives - Excludes, in determining a family's eligibility for supplement payments: (1) the earned income of students who are not full-time employees; (2) $100 plus 25 percent of any family member's monthly earned income; (3) $100 of monthly family support payments; and (4) earned income credits payable to the family under the Internal Revenue Code. Prohibits application of the $100 and 25 percent earned income exclusion in the case of individuals who, without good cause: (1) terminate their employment or reduce their income; (2) refuse a bona fide offer of employment; or (3) fail to make a timely report of their monthly earned income. Authorizes States to increase the amount of an individual's earned income excluded under this Act in making family support supplement eligibility determinations. Amends the Internal Revenue Code to exclude any benefit provided under any Federal, State, or local governmental assistance program for the support of the individual or for maintenance of the household in determining whether a taxpayer is providing such support or maintenance. Title IV: Transitional Medicaid Services for Families - Amends title XIX (Medicaid) for the Act to require a State to continue a family's Medicaid eligibility for: (1) six months after the family loses family support supplement eligibility because of increase earnings if the family has received supplement payments for three of the preceding six months; and (2) an optional 18 additional months of extended Medicaid coverage. Terminates extended Medicaid coverage if the Family ceases to include a dependent child. Authorizes States to provide the extended Medicaid coverage by paying a family's: (1) expenses for health insurance offered by the caretaker relative's or absent parent's employer; or (2) premium and enrollment costs, during the 18-month extension period, for coverage under a group health plan offered to the caretaker relative, a group health plan offered by the State to its employees, or a health maintenance organization. Requires State offering such alternative coverage to pay, in addition to the premium and enrollment costs for such coverage, any other cost sharing amounts for pregnancy services and ambulatory preventive pediatric care for children born on or after September 30, 1985. Terminates the 18-month extension period if a family's earnings exceed 185 percent of the Federal poverty level or the caretaker relative has no earnings for a month due to his or her voluntary loss of employment without good cause. Authorizes States to impose a premium on families receiving the 18 months of extended coverage, but prohibits its exceeding ten percent of the amount by which a family's earnings exceed minimum monthly wage earnings. Requires States to extend Medicaid coverage for six months to families who lose family support supplement eligibility as the result of the collection or increased collection of child spousal support under part D (Child Support and Establishment of Paternity) of title IV of the Act if the family has received supplement payments for three of the preceding six months. Title V: Child Support Enforcement Amendments - Amends part D (Child Support and Establishment of Paternity) of title IV of the Act to direct States to: (1) establish binding guidelines for child support award determinations (currently, such guidelines need not be binding); and (2) periodically review and update all child support orders to ensure that they continue to comply with child support award guidelines. Requires States to abide by State procedural due process requirements when updating child support awards and notify absent parents of their right to contest the award. Requires that, to the extent possible, the paternity of a child be established at birth. Excludes the cost of paternity determinations as well as the cost of certain interstate child support enforcement projects from the computation of the incentive payment to a State for collecting child support payments. Amends title XI (General Provisions) of the Act to authorize States to conduct demonstration projects identifying and testing possible solutions to problems arising in connection with visitation by absent parents. Authorizes the Secretary to make grants to States to assist in financing such projects. Requires the Department of Health and Human Services to establish time limits within which a State must respond to requests for assistance in locating absent parents or establishing paternity, and begin proceedings to establish child support awards. Makes it mandatory that States establish an automatic data processing and information retrieval system for the child support enforcement and establishment of paternity determination process. Title VI: Pro-Family Welfare Policies - Requires States to pay family support supplements with respect to dependent children of unemployed parents in two-parent families. Includes within the definition "quarter of work", for the purpose of determining a family's eligibility for assistance, the parent's: (1) full-time attendance as an elementary or secondary school student; (2) full-time attendance in a vocational or technical training course; and (3) participation in a Job Training Partnership Act education or training program. Directs States to assign an individual case manager to each family receiving family support supplements which is headed by a minor parent. Requires unmarried minor parents to live with a parent, legal guardian, other adult relative, or in a foster home, maternity home, or other supportive living arrangement, unless the State determines that, given specified circumstances, it is impossible or inappropriate for them to do so. Treats the minor parent and minor parent's children as a family separate from the parent and parent's children with whom the minor parent resides in determining the minor parent's eligibility for supplement payments. Authorizes States to condition a minor parent's eligibility on his or her: (1) part-time school attendance; or (2) training in parenting and family living skills. Sets the Federal share of the cost of providing case management services for minor parents at 75 percent. Title VII: Benefit Improvements - Directs each State to re-evaluate annually its need and payment standard under the Family Support Program, giving particular attention to whether the amount it has assumed to be necessary for shelter is adequate. Sets forth reporting requirements. Increases the Federal share of a State's Family Support program costs if such State increases the level of family support supplement payments after FY 1987. Sets a mandatory State Family Support program benefit level to be implemented five years after this Act's enactment. Title VIII: Miscellaneous Provisions - Directs the Secretary of Health and Human Services and the Secretary of Agriculture to appoint an advisory group to make recommendations to the President and the Congress within one year of this Act's enactment regarding the coordination of the food stamp program under the Food Stamp Act of 1977 and the Family Support Program. Directs the Secretary to establish uniform reporting requirements requiring each State to periodically furnish the Secretary with information regarding the implementation of the Family Support Program.

(Reported to House from the Committee on Education and Labor with amendment, H. Rept. 100-159 (Part II)) Family Welfare Reform Act of 1987 - Declares that, hereafter, the Aid to Families with Dependent Children program (part A of title IV of the Social Security Act) shall be known as the Family Support Program (FSP) and the aid paid to needy families with dependent children shall be called family support supplements. Title I: Fair Work Opportunities Program - Amends the Aid to Families with Dependent Children (AFDC) program to require States to establish a Fair Work Opportunities Program (Program which helps needy children and parents avoid long-term welfare dependence. Requires adult recipients of family support supplements to participate in the Program if it is available in the political subdivision where he or she resides and State resources otherwise permit. Directs the State to fully inform such recipients of the opportunities offered under the Program. Lists recipients who are exempt from mandatory participation in the Program, including individuals who: (1) are ill, incapacitated, pregnant, or age 60 or older; (2) are needed at home due to the illness or incapacity of another family member; (3) work 20 or more hours a week; (4) are children under age 16 or attending, full time, an elementary, secondary, or vocational school, except in the case of certain minor parents; or (5) care for a child under age 15, but such exception shall apply to only one parent in two-parent families. Permits States to require the participation of a parent or relative of a child who has attained age three but not age 15 if day care is guaranteed by the State and, in the case of a parent or relative of a child under age six, Program participation is on a part-time basis. Provides that if the parent, caretaker relative, or dependent child is attending a school, an accredited postsecondary institution, or a course of vocational or technical training which can reasonably be expected to lead to employment when he or she would otherwise commence participation in the Program, such attendance may constitute satisfactory participation in the Program, though the costs of such schooling or training shall not constitute federally reimbursable FSP expenses. Directs States to make special efforts to develop and provide needed Program services and activities to families: (1) with teenage parents and parents who were under age 18 when their first child was born; (2) that have been receiving family support supplements continuously for two or more years; (3) with children under age six; (4) with a parent who has been unemployed during the preceding 12 months, lacks a high school diploma or its equivalent, or has special educational needs; and (5) with older children in which the youngest child is within two years of being ineligible for family support supplements because of age. Requires that if State resources are not adequate to provide Program services to all participants, priority shall be given to mandatory and voluntary participants who actively seek to participate in Program activities. Requires a State to provide each applicant for family support supplements full information (verbally and in writing) about the opportunities offered by the Program and the: (1) rights, responsibilities, and obligations of Program participants; (2) State's obligation to provide necessary supportive services; and (3) transitional child care services and health coverage that will be available. Requires local resource and referral agencies to assist parents in finding appropriate child care. Provides that any applicant for family support supplements may be required to accept job search assistance while his or her application is being processed or at any appropriate time during Program participation. Limits mandatory participation in job search to eight weeks, after which an individual who has not obtained a job must be provided with other services designed to improve his or her employment prospects. Provides that when a mandatory Program participant fails without good cause to comply with any requirement imposed on his or her participation in such Program: (1) such participant's needs shall not be taken into account in determining the family support supplement; and (2) if such participant's spouse is not participating in the Program, the spouse's need shall not be taken into account in determining the family support supplement. Continues sanctions for a minimum of three months if the participant failed to comply on a previous occasion. Directs States, after three months of a participant's noncompliance, to remind the participant in writing of his or her option to end the sanction. Authorizes any State to institute a work supplementation program under which a State reserves sums which would otherwise be payable to Program participants as family support supplements and uses such sums instead to subsidize jobs for such participants. Directs the Secretary of Health and Human Services (Secretary) to establish uniform reporting requirements under which States periodically provide the Secretary with information the Secretary needs to ensure that Program requirements are being carried out. Amends part C (Work Incentive Program) of title IV of the Act to create a new part C entitled "Fair Work Opportunities for Family Self-Sufficiency." Authorizes appropriations for carrying out part C for FY 1988 and thereafter. Reserves a specified amount of such funds for child care services. Requires the Secretary of Labor to allocate 95 percent of the funds among the States according to prior allocations and the relative number of family support recipients in each State. Sets the remaining five percent aside for State planning grants, technical assistance, demonstration programs, and States excelling in part C performance standards. Sets the Federal matching rate for FY 1988 and thereafter at 90 percent of so much of the State's allocation which does not exceed the State's FY 1986 allocation, 80 percent of the amount in excess of such allocation which is expended on education and training programs, and 70 percent of the amount in excess of FY 1986 allocations which is expended for any other purpose under part C. Directs the Governor of each State to designate a State agency as the State work initiatives agency responsible for developing the State Program plan and administering the Program. Requires that such plan contain specified provisions and assurances, including assurances that: (1) Program activities are coordinated and not duplicative of existing activities; and (2) local governments and the private sector are involved in Program planning and design so that participants are trained for jobs that are likely to be available in the community. Requires that such plan be made available to the public and then the State job training coordinating council for review and comments before being sumitted to the Governor and the Secretary of Labor for approval. Requires States to make an initial assessment of the educational needs, skills, and employability of each Program participant and on that basis develop an employability plan for the participant's family which, to the maximum extent possible, reflects the participant's preferences. Requires each participant to then negotiate a contract with the State which specifies the duration of his or her participation as well as the activities the State will conduct and services it will provide in the course of such participation. Directs the State to assign a case assistant to each participating family who is responsible for: (1) obtaining, on the family's behalf, any other services which may assure the family's effective participation; (2) monitoring a participant's progress; and (3) periodically reviewing and renegotiating the family support plan and the participant's contract with the State. Requires State Programs to provide comprehensive services which include: (1) job search, training, and placement services; (2) education programs; (3) necessary support services; and (4) counseling, information, and referral for participants experiencing personal and family problems which may be affecting their ability to work. Extends coverage of day care which is reasonably necessary for a parent's or caretaker relative's continued employment, for up to 12 months after a family's eligibility for family support supplements ends, under a sliding scale formula based on the family's ability to pay for such services. Gives any participant lacking a high school diploma the opportunity to participate in a program addressing the education needs identified in the participant's initial assessment without interference from required participation in other programs and activities. Requires that children in participating families be encouraged to engage in the education or training activities available under the Program and be provided with additional services and incentives designed to keep them in school and help them obtain marketable job skills. Deems an individual who attends an accredited postsecondary institution to be satisfactorily participating in the Program for so long as such individual is making satisfactory progress in a vocational or undergraduate education or training program consistent with his or her employment goals. Prohibits an individual's mandatory repetition of an employment or training program. Authorizes any State to establish a work experience program to provide experience and training for individuals who have not been employed during the preceding six months and are not otherwise able to obtain employment. Limits such programs to projects which serve a useful public purpose utilizing, if possible, the participant's prior training, experience, and skills. Prohibits Program participants from filling unfilled vacancies. Requires that unpaid work experience be provided in conjunction with training or education and for no longer than 30 hours per week for three months. Permits a three-month extension of such work experience if the participant requests such extension and such request is reflected in a modified family support plan or such extension would lead to employment in an on-the-job training position. Requires that: (1) a reassessment be made and a new employability plan developed for participants who do not obtain employment after participation in a work experience program; and (2) other Program activities be coordinated with the work experience program so that job placement has priority over participation in such program. Authorizes States to provide individuals who have been Program participants for at least six months and have been unable to secure unsubsidized employment with transitional subsidized employment with a public or nonprofit private employer for a period which does not exceed six months, unless an extension is determined to be necessary in a review and modification of the family support plan. Directs the Secretary of Labor to establish outcome-based State Program performance standards which take into account the differing conditions which may exist in different States. Requires that final standards be published within two years of the enactment of this Act. Directs the Secretary of Labor to evaluate each State's progress toward meeting the performance standards at the completion of each fiscal year and provide technical assistance to States which fall short of such standards. Provides incentive allocations to States which exceed such standards. Requires the Secretary of Labor to review such standards at least once every three years. Sets forth general requirements regarding: (1) the notice which must be provided to an individual before the State determines that such individual has refused to participate in the Program without good cause; (2) the benefit requirements and labor standards applicable to all Program activities; (3) the suitability of work assignments, including the requirement that States provide participants with supplements for one year after they leave the Program so that their income is not reduced as a result of taking a job; (4) mandatory workfare; and (5) nondiscrimination against individuals assigned to a job or work program under this Act. Authorizes a State to reimburse other State or local agencies for Program services rendered to individuals to the extent that such services are not otherwise available on a nonreimbursable basis. Requires States to use the information provided by private industry councils on the type of jobs in an area and provide training which is related to such jobs. Authorizes States to enter into contracts and other arrangements with public and private agencies and organizations for the provision or conduct of Program services or activities. Establishes State recordkeeping and reporting requirements and a complaint review process through which the Secretary shall investigate State compliance with Program requirements. Authorizes the Comptroller General to conduct investigations of a State's use of Program funds. Authorizes the Secretary of Labor or the Secretary of Health and Human Services to terminate or suspend financial assistance in whole or in part and order appropriate sanctions or corrective actions if the State agency administering part C or part A of title IV of the Act fails to comply with a provision of the Act and the State has been given prior notice and an opportunity for a hearing. Authorizes the Secretary of Labor to make funds available to States for demonstration projects testing the effectiveness of using: (1) performance-based contracts under which private organizations operate supported-work programs placing participants in full-time private sector jobs; (2) community-based comprehensive support services to ensure long-term family self-sufficiency; (3) nonprofit community development corporations in creating job opportunities for the poor; and (4) financial incentives and interdisciplinary approaches to reducing school dropouts, encouraging skill development, and avoiding the welfare dependence of children receiving family support supplements. Requires each State to: (1) conduct an assessment of the adequacy and appropriateness of child care resources in the State prior to or in conjunction with the expenditure of child care funds; (2) provide grants for the training of child care personnel; and (3) not relax child care standards within the State. Authorizes each State to: (1) permit the use of funds in coordinating child care services with other relevant early childhood development programs so that such programs may provide full day and full year services to children; and (2) provide grants to local nonprofit child care programs to establish or renovate child care centers and family day care homes. Sets the federal matching rate at 50 percent of Program administrative costs and 65 percent of all other Program costs. Amends part A (General Provisions) of title XI of the Act to authorize States to conduct demonstration projects testing: (1) the effect of in-home early childhood development and pre-school center-based development programs on families receiving family support supplements and participating in the Program; and (2) whether eliminating durational standards, used in defining unemployment for family support supplement eligibility purposes, and requiring parents to accept reasonable job offers while preserving their eligibility for supplements would encourage their entrance into the permanent work force and thereby reduce FSP costs. Authorizes the Secretary of Labor to make grants to States to assist in financing such projects. Sets forth technical and conforming amendments. Requires each State within six months of this Act's enactment to: (1) evaluate its welfare population demographics, giving particular attention to the demands of the State labor market, the training needed to meet those demands, and necessary changes in current service delivery systems; and (2) submit such evaluation to the Secretary of Labor. Title II: Day Care, Transportation, and Other Work-Related Expenses - Requires States to either: (1) provide day care for dependent children and incapacitated individuals living in the same home as a dependent child; or (2) reimburse the caretaker relative for the cost of such care, if and to the extent that such care is directly related to an individual's participation in the Program, reasonably necessary for such participation, and cost-effective. Provides coverage for certain transportation and other work-related costs. Continues day care coverage for one year after a family's eligibility for support supplements ceases, but permits States to reduce such coverage on the basis of a family's ability to pay. Directs States to regularly assess the availability and reliability of child care services available to Program participants, and, when necessary, develop new child care resources. Title III: Real Work Incentives - Excludes, in determining a family's eligibility for supplement payments: (1) the earned income of students who are not full-time employees; (2) $100 plus 25 percent of any family member's monthly earned income; (3) $100 of monthly family support payments; and (4) earned income credits payable to the family under the Internal Revenue Code. Prohibits application of the $100 and 25 percent earned income exclusion in the case of individuals who, without good cause: (1) terminate their employment or reduce their income; (2) refuse a bona fide offer of employment; or (3) fail to make a timely report of their monthly earned income. Authorizes States to increase the amount of an individual's earned income excluded under this Act in making family support supplement eligibility determinations. Amends the Internal Revenue Code to exclude any benefit provided under any Federal, State, or local governmental assistance program for the support of the individual or for maintenance of the household in determining whether a taxpayer is providing such support or maintenance. Title IV: Transitional Services for Families - Requires a State to continue a family's Medicaid (title XIX of the Act) eligibility for one year (a State may provide a two-year continuance of such eligibility) after the family's eligibility for family support supplements ends, unless such eligibility was terminated due to fraud or the imposition of a sanction. Terminates extended Medicaid coverage if the family ceases to include a dependent child or a family member engages in certain conduct which would warrant sanctions under the Family Support Program. Title V: Child Support Enforcement Amendments - Amends part D (Child Support and Establishment of Paternity) of title IV of the Act to direct States to: (1) establish binding guidelines for child support award determinations (currently, such guidelines need not be binding); and (2) periodically review and update all child support orders to ensure that they continue to comply with child support award guidelines. Requires States to abide by State procedural due process requirements when updating child support awards and notify absent parents of their right to contest the award. Requires that, to the extent possible, the paternity of a child be established at birth. Excludes the cost of paternity determinations as well as the cost of certain interstate child support enforcement projects from the computation of the incentive payment to a State for collecting child support payments. Amends title XI (General Provisions) of the Act to authorize States to conduct demonstration projects identifying and testing possible solutions to problems arising in connection with visitation by absent parents. Authorizes the Secretary to make grants to States to assist in financing such projects. Requires the Department of Health and Human Services to establish time limits within which a State must respond to requests for assistance in locating absent parents or establishing paternity, and begin proceedings to establish child support awards. Makes it mandatory that States establish an automatic data processing and information retrieval system for the child support enforcement and establishment of paternity determination process. Title VI: Pro-Family Welfare Policies - Requires States to pay family support supplements with respect to dependent children of unemployed parents in two-parent families. Includes within the definition "quarter of work", for the purpose of determining a family's eligibility for assistance, the parent's: (1) full-time attendance as an elementary or secondary school student; (2) full-time attendance in a vocational or technical training course; and (3) participation in a Job Training Partnership Act education or training program. Directs States to assign an individual case manager to each family receiving family support supplements which is headed by a minor parent. Requires unmarried minor parents to live with a parent, legal guardian, other adult relative, or in a foster home, maternity home, or other supportive living arrangement, unless the State determines that, given specified circumstances, it is impossible or inappropriate for them to do so. Treats the minor parent and minor parent's children as a family separate from the parent and parent's children with whom the minor parent resides in determining the minor parent's eligibility for supplement payments. Authorizes States to condition a minor parent's eligibility on his or her: (1) part-time school attendance; or (2) training in parenting and family living skills. Sets the Federal share of the cost of providing case management services for minor parents at 75 percent. Title VII: Benefit Improvements - Directs each State to re-evaluate annually its need and payment standard under the Family Support Program, giving particular attention to whether the amount it has assumed to be necessary for shelter is adequate. Sets forth reporting requirements. Increases the Federal share of a State's Family Support program costs if such State increases the level of family support supplement payments after FY 1987. Sets a mandatory State Family Support program benefit level to be implemented five years after this Act's enactment. Title VIII: Miscellaneous Provisions - Directs the Secretary of Health and Human Services and the Secretary of Agriculture to appoint an advisory group to make recommendations to the President and the Congress within one year of this Act's enactment regarding the coordination of the food stamp program under the Food Stamp Act of 1977 and the Family Support Program. Directs the Secretary to establish uniform reporting requirements requiring each State to periodically furnish the Secretary with information regarding the implementation of the Family Support Program.

(Reported to House from the Committee on Ways and Means with amendment, H. Rept. 100-159 (Part I)) Family Welfare Reform Act of 1987 - Declares that, hereafter, the Aid to Families with Dependent Children program (part A of title IV of the Social Security Act) shall be known as the Family Support Program (FSP) and the aid paid to needy families with dependent children shall be called family support supplements. Title I: National Education, Training, and Work (Network) Program - Amends the Aid to Families with Dependent Children (AFDC) program to require States to establish an education, training, and work program (Program) which helps needy children and parents avoid long-term welfare dependence. Requires private sector involvement in planning and Program design to assure that participants are trained for jobs that will actually be available in the community. Requires adult recipients of family support supplements to participate in the Program if it is available in the political subdivision where he or she resides and State resources otherwise permit. Directs the State to fully inform such recipients of the opportunities offered under the Program. Lists recipients who are exempt from mandatory participation in the Program, including individuals who: (1) are ill, incapacitated, pregnant, or age 60 or older; (2) are needed at home due to the illness or incapacity of another family member; (3) work 20 or more hours a week; (4) are children under age 16 or attending, full time, an elementary, secondary, or vocational school, except in the case of certain minor parents; or (5) care for a child under age three, but such exception shall apply to only one parent in two-parent families. Prohibits States from requiring the participation of a parent or relative of a child under age six unless day or infant care is guaranteed by the State and participation is on a part-time basis. Authorizes the Secretary of Health and Human Services to permit States to require the participation of a parent or relative of a child who has attained age one but not age three if infant care is guaranteed by the State, within certain dollar limitations, and participation is on a part-time basis. Provides that if the caretaker relative or dependent child is attending a school or a course of vocational or technical training designed to lead to employment when he or she would otherwise commence participation in the Program, such attendance may constitute satisfactory participation in the Program, though the costs of such schooling or training shall not be covered by the FSP. Directs States to give priority in Program participation to families: (1) with teenage parents and parents who were under age 18 when their first child was born; (2) that have been receiving family support supplements continuously for two or more years; and (3) with children under age six. Requires States to make an initial assessment of the educational needs, skills, and employability of each Program participant and on that basis negotiate a family support plan with each participant which, to the maximum extent possible, reflects the participant's preferences. Requires each participant to then negotiate a contract with the State which specifies the duration of his or her participation as well as the activities the State will conduct and services it will provide in the course of such participation. Directs the State to assign a case manager to each participating family who is responsible for: (1) obtaining, on the family's behalf, any other services which may assure the family's effective participation; (2) monitoring a participant's progress; and (3) periodically reviewing and renegotiating the family support plan and the participant's contract with the State. Requires State Programs to provide a broad range of services and activities, including: (1) high school or equivalent education; (2) remedial education; (3) job search, training and placement services; and (4) counseling, information, and referral for participants experiencing personal and family problems which may be affecting their ability to work. Gives any participant lacking a high school diploma the opportunity to participate in a program addressing the education needs identified in the participant's initial assessment without interference from required participation in other programs and activities. Requires that children in participating families be encouraged to engage in the education or training activities available under the Program and be provided with additional services and incentives designed to keep them in school and help them obtain marketable job skills. Requires each work assignment to be consistent with the physical capacity, skills, experience, health, family responsibilities, and place of residence of each participant. Prohibits work assignments which displace a currently employed worker or position, impair existing contracts for services or collective bargaining agreements, fill the job of a worker who has been laid off or fired, or infringe on the promotional opportunities of a currently employed worker. Requires that the wage rate for any position to which a participant is assigned be at least equal to the current pay scale for that position, or, if there is no current pay scale for that position, at least equal to the greater of the applicable Federal or State minimum wage. Establishes a grievance procedure for complaints about the Program which are received from participants, subgrantees, subcontractors, and other interested persons. Prohibits States from requiring participants to accept a job which would result in a loss of income to the participant or his or her family. Requires that Program activities be coordinated with Job Training Partnership Act programs and any other relevant employment, training, and education programs available in the State. Authorizes any State to institute a work supplementation program under which such State reserves sums which would otherwise be payable to program participants as family support supplements and uses such sums instead to subsidize jobs for such participants. Authorizes any State to establish a community work experience program to provide experience and training for individuals not otherwise able to obtain employment. Limits such programs to projects which serve a useful public purpose utilizing, if possible, the participant's prior training, experience, and skills. Prohibits Program participants from filling established unfilled position vacancies. Limits community work program participants to work or training (or both) for up to six months or unpaid work experience or training for up to three months. Requires that: (1) a reassessment be made and a new employability plan developed for participants who do not obtain employment after participation in a community work program; and (2) other Program activities be coordinated with the community work program so that job placement has priority over participation in such program. Prohibits an individual from participating in job search without participating in one or more other Program services or activities if job search has continued for eight weeks or longer without the individual obtaining a job. Provides that when a mandatory Program participant fails without good cause to comply with any requirement imposed on his or her participation in such Program: (1) such participant's needs shall not be taken into account in determining the family support supplement; and (2) if such participant's spouse is not participating in the Program, the spouse's need shall not be taken into account in determining the family support supplement. Continues sanctions for a minimum of three months if the participant failed to comply on a previous occasion. Directs States, after three months of a participant's noncompliance, to remind the participant in writing of his or her option to end the sanction. Requires the Secretary of Health and Human Services to: (1) publish final regulations, within nine months of this Act's enactment, and performance standards, within one year of this Act's enactment, for such Programs; (2) develop a legislative proposal for modifying the Federal AFDC matching rate so that it reflects the relative effectiveness of the various States in carrying out the Programs; and (3) provide for the continuing evaluation of State Programs and the conduct of research on making such Programs more effective. Directs the Secretary to establish uniform reporting requirements requiring each State to periodically furnish Program information to the Secretary, including the average monthly number and types of families assisted under each Program service and activity, the amounts expended on such families, and the length of time for which such families are assisted. Sets the federal matching rate at 65 percent of the expenditures for education and training under the Program and 50 percent of the administrative costs of such Program. Amends title XI (General Provisions) of the Act to authorize States to conduct demonstration projects testing: (1) financial incentives and interdisciplinary approaches to reducing school dropouts, encouraging skill development, and avoiding the welfare dependence of children receiving family support supplements; (2) the effect of in-home early childhood development and pre-school center-based development programs on families receiving family support supplement payments and participating in this Act's Program; and (3) whether eliminating durational standards, used in defining unemployment for family support supplement eligibility purposes, and requiring parents to accept reasonable job offers while preserving their eligibility for supplement payments would encourage their entrance into the permanent work force and thereby reduce FSP costs. Authorizes the Secretary to make grants to States to assist in financing such projects. Title II: Day Care, Transportation, and Other Work-Related Expenses - Requires States to either: (1) provide day care for dependent children and incapacitated individuals living in the same home as a dependent child; or (2) reimburse the caretaker relative for the cost of such care, if and to the extent that such care is directly related to an individual's participation in the Program, reasonably necessary for such participation, and cost-effective. Provides coverage for certain transportation and other work-related costs. Continues day care coverage for six months after a family's eligibility for support supplements ceases, but permits States to reduce such coverage on the basis of a family's ability to pay. Authorizes State demonstration projects testing: (1) whether the employment of parents receiving family support supplements as day care providers for children receiving such aid will make additional day care services available while creating employment opportunities for such parents; and (2) the effect of increasing the maximum excludable value of automobiles for FSP eligibility purposes. Directs States to regularly assess the availability and reliability of child care services available to Program participants, and when necessary, develop new child care resources and coordinate Family Support Program child care with other child care programs. Title III: Real Work Incentives - Excludes, in determining a family's eligibility for supplement payments: (1) the earned income of students who are not full-time employees; (2) $100 plus 25 percent of any family member's monthly earned income; (3) $50 of monthly child support payments; and (4) earned income credits payable to the family under the Internal Revenue Code. Authorizes States to disregard certain of the income of dependent children or minor parents applying for family support supplements if the dependent children are full-time students or the income is derived from a Job Training Partnership Act program. Prohibits application of the $100 and 25 percent earned income exclusion in the case of individuals who, without good cause: (1) terminate their employment or reduce their income; (2) refuse a bona fide offer of employment; or (3) fail to make a timely report of their monthly earned income. Authorizes States to increase the amount of an individual's earned income excluded under this Act in making family support supplement eligibility determinations. Title IV: Transitional Services for Families - Requires a State to continue a family's Medicaid (title XIX of the Act) eligibility for six months after the family's eligibility for family support supplements ends, unless such eligibility was terminated due to fraud or the imposition of a sanction. Terminates extended Medicaid coverage if the family ceases to include a dependent child or a family member engages in certain conduct which would warrant sanctions under the Family Support Program. Title V: Child Support Enforcement Amendments - Amends part D (Child Support and Establishment of Paternity) of title IV of the Act to direct States to establish binding guidelines for child support award amounts. (Currently, such guidelines need not be binding.) Creates a rebuttable presumption in any judicial or administrative proceeding that the child support award which results from the application of such guidelines is correct. Requires States to review and, if necessary, update such guidelines once every three years and review and update all child support orders at least once every two years to ensure that they continue to comply with child support award guidelines. Requires States to abide by State due process requirements when updating child support awards. Directs States to: (1) determine the paternity of every child within the State whose family receives family support supplements as soon as possible after the child's birth but in no event later than its 18th birthday; and (2) require the parties in a contested paternity case to submit to genetic tests upon the request of a party in such case, using a 95 percent probability index from blood tests as a rebuttable presumption of paternity. Encourages States to establish and implement simple civil processes for voluntarily acknowledging paternity and a civil procedure for establishing paternity in contested cases. Sets performance standards for paternity determinations from FY 1989 through 1993. Alters the formula for determining the incentive payment to be paid to a State for its child support collection efforts to take into account cases in which a child's paternity has been established but support collection has not begun or amounts to less than $100 a month. Amends part A (General Provisions) of title XI of the Act to authorize States to conduct demonstration projects identifying and testing possible solutions to problems arising in connection with visitation by absent parents and child custody. Authorizes the Secretary to make grants to States to assist in financing such projects. Requires the Department of Health and Human Services to establish time limits within which a State must respond to requests for assistance in locating absent parents or establishing paternity, and begin proceedings to establish child support awards. Requires States to have an operational automatic data processing and information retrieval system for the child support enforcement and establishment of paternity determination process by October 1, 1992. Excludes the cost of certain interstate child support enforcement projects from the computation of the incentive payment to a State for its child support collection efforts. Lowers the Federal matching rate for part D expenses to 66 percent for States which are not fully in compliance with the Child Support Enforcement Amendments of 1984 at any time after the expiration of six months after this Act's enactment. Sets such rate at 70 percent for States which comply with such amendments and have in effect a law providing, with specified exceptions, for the immediate withholding of court-ordered child support from a parent's wages. Establishes a commission to examine the problems of interstate child support enforcement and develop a new model interstate law to facilitate and strengthen such enforcement. Requires such commission to report its findings to the President and the Congress within one year of this Act's enactment. Authorizes appropriations. Directs the Secretary to conduct a study of the patterns of expenditures on children in two-parent families, in single-parent families following divorce, and in single-parent families in which the parents were never married, giving particular attention to the relative standards-of-living in households in which both parents and all of the children do not live together. Directs the Secretary to report to the Congress on such study within two years of this Act's enactment. Authorizes appropriations for such study. Requires the Secretary to make grants to States for demonstration projects under which absent parents who owe child support, but whose income is insufficient to pay such support, are encouraged to participate in work, education, and training activities available in the State. Directs the Secretary to collect and maintain up-to-date child support enforcement data. Requires the Secretary of Labor to make the name, social security number, current address, and place of employment of any specified individual available to the Parent Locator Service and State child support enforcement agencies which request such information. Title VI: Pro-Family Welfare Policies - Requires States to pay family support supplements with respect to dependent children of unemployed parents in two-parent families. Includes within the definition "quarter of work", for the purpose of determining a family's eligibility for assistance, the parent's: (1) full-time attendance as an elementary or secondary school student; (2) full-time attendance in a vocational or technical training course; and (3) participation in a Job Training Partnership Act education or training program. Directs the Comptroller General to conduct a study of State FSP administration in cases involving unemployed parents and recommend changes to the Congress, within six months of this Act's enactment, which would make such administration less cumbersome and prone to error. Directs States to assign an individual case manager to each family receiving family support supplements which is headed by a minor parent. Requires unmarried minor parents to live with a parent, legal guardian, other adult relative, or in a foster home, maternity home, or other supportive living arrangement, unless the State determines that, given specified circumstances, it is impossible or inappropriate for them to do so. Treats the minor parent and minor parent's children as a family separate from the parent and parent's children with whom the minor parent resides in determining the minor parent's eligibility for supplement payments. Authorizes States to condition a minor parent's eligibility on his or her: (1) part-time school attendance; or (2) training in parenting and family living skills. Repeals the requirement that part of the income of the parent of a minor parent with whom such minor parent resides be attributed to the dependent child in a minor parent family. Title VII: Benefit Improvements - Directs each State to re-evaluate annually its FSP need and payment standard, giving particular attention to whether the amount it has assumed to be necessary for shelter is adequate. Sets forth reporting requirements. Increases by 25 percent the Federal share of family support supplements which represent an increase in the supplement level in effect on September 30, 1988. Requires the National Academy of Sciences to conduct a study of a new national system of welfare benefits for low-income families with children giving particular attention to what an appropriate national minimum benefit might be and how it should be calculated. Directs the Academy to report its recommendations to the Secretary (for prompt transmittal to the Congress) within two years of this Act's enactment. Title VIII: Miscellaneous Provisions - Establishes a Commission on the Coordination of Family Support and Food Stamp Policies to conduct a study and make recommendations to the President and the Congress within one year of this Act's enactment regarding the coordination of the food stamp program under the Food Stamp Act of 1977 and the Family Support Program. Directs the Secretary to establish uniform reporting requirements requiring each State to periodically furnish the Secretary with information regarding FSP implementation. Amends title XX (Block Grants to States for Social Services) to require each State to submit an annual report to the Secretary containing specified information regarding the use of such funds. Directs the Secretary to convene an Interagency Panel to design, implement, and monitor a series of implementation and evaluation studies to assess the methods and effects of the programs initiated under this Act. Requires the Panel to report to the President and the Congress annually over the five year period beginning with this Act's enactment on such studies. Establishes a program providing grants to States selected to conduct demonstration projects testing whether FSP housing costs can be reduced by constructing and rehabilitating permanent housing for rental to FSP families who would otherwise require FSP emergency assistance in the form of temporary housing. Provides that, to be eligible for selection as one of three States authorized to conduct such a project, a State must: (1) be currently providing FSP emergency housing assistance; (2) have an acute need for Federal assistance by virtue of the large number of homeless FSP families, and shortages of low-income housing, in the jurisdiction(s) where such project would be conducted; and (3) submit a plan to achieve significant cost saving over a ten-year period through the conduct of such project. Requires that such grants be used to provide permanent housing which is: (1) owned by the State, an instrumentality of the State, or a nonprofit organization; (2) available to families who have been unable to find decent housing at rents that can be paid with FSP aid for shelter; and (3) located in jurisdictions experiencing a critical shortage of such housing. Requires that: (1) the most costly temporary housing be retired from use in the emergency assistance program as permanent housing becomes available for occupancy, unless temporary housing is demonstrably needed; and (2) the costs of providing permanent housing be lower than costs which would be incurred if, instead, the State made FSP emergency assistance payments providing temporary housing. Sets the State contribution to the cost of constructing or rehabilitating such housing at least the current State FSP share increased by ten percent. Authorizes appropriations for the grant program for each of the first five fiscal years following FY 1987. Authorizes the Secretary to approve, as alternatives to the Family Support Program: (1) a five-year demonstration project testing New York State's Child Support Supplement Program; and (2) a five-year demonstration project testing Washington State's Family Independence Program. Requires the Secretary of Health and Human Services and the Secretary of Housing and Urban Development to establish an Interagency working group to conduct a study and report to the Congress within six months of this Act's enactment on the housing problems faced by FSP families. Provides that in determining a family's support supplement level the needs of a family member who is a drug addict or alcoholic shall not be taken into account if such individual terminates his or her enrollment in a treatment program before such treatment is completed and does not resume treatment. Amends part A (General Provisions) of title XI of the Act to include American Samoa in the Family Support Program. Limits Federal funding for American Samoa's program to $1,000,000 for any fiscal year. Increases the total amount of Federal payments which may be made to Puerto Rico, Guam, and the Virgin Islands in any fiscal year under titles I (Grants to States for Old-Age Assistance for the Aged), X (Grants for States for Aid to the Blind), XIV (Grants to States for Aid to the Permanently and Totally Disabled), XVI (Grants to States for Aid to the Aged, Blind, or Disabled), and parts A (Aid to Families with Dependent Children) and E (Foster Care and Adoption Assistance) of title IV of the Act.

Family Welfare Reform Act of 1987 - Declares that, hereafter, the Aid to Families with Dependent Children program (part A of title IV of the Social Security Act) shall be known as the Family Support Program and the aid paid to needy families with dependent children shall be called family support supplements. Title I: National Education, Training, and Work (Network) Program - Amends the Aid to Families with Dependent Children (AFDC) program to require States to establish an education, training, and work program (program) which helps needy children and parents avoid long-term welfare dependence. Requires private sector involvement in planning and Program design to assure that participants are trained for jobs that will actually be available in the community. Requires adult recipients of family support supplements to participate in the Program if it is available in the political subdivision where he or she resides and State resources otherwise permit. Directs the State to fully inform such recipients of the opportunities offered under the Program. Lists recipients who are exempt from mandatory participation in the Program, including individuals who: (1) are ill, incapacitated, pregnant, or age 60 or older; (2) are needed at home due to the illness or incapacity of another family member; (3) work 20 or more hours a week; or (4) care for a child under age six, but such exception shall apply to only one parent in two-parent families. Authorizes States to require the participation of an otherwise exempt parent or relative of a child under age six if day or infant care is guaranteed by the State and participation is on a part-time basis. Directs States to actively encourage exempt supplement recipients to participate in the Program. Provides that if the adult family caretaker is attending a school or a course in vocational or technical training designed to lead to employment when he or she would otherwise commence participation in the Program, such attendance may constitute satisfactory participation in the Program, though the costs of such school or training shall not be covered by the Family Support Program. Directs States to give priority in Program participation to families: (1) with teenage parents and parents who were under age 18 when their first child was born; (2) that have been receiving family support supplements continuously for two or more years; and (3) with children under age six. Requires States to make an initial assessment of the educational needs, skills, and employability of each Program participant and on that basis develop an employability plan for the participant's family which, to the maximum extent possible, reflects the participant's preferences. Requires each participant to then negotiate a contract with the State which specifies the duration of his or her participation as well as the activities the State will conduct and services it will provide in the course of such participation. Directs the State to assign a case manager to each participating family who is responsible for obtaining, on the family's behalf, any other services which may assure the family's effective participation. Requires State Programs to provide a broad range of services and activities, including: (1) high school or equivalent education; (2) remedial education; (3) job search, training and placement services; and (4) counseling, information, and referral for participants experiencing personal and family problems which may be affecting their ability to work. Requires that children in participating families be encouraged to engage in the education or training activities available under the Program and be provided with additional services and incentives designed to keep them in school and help them obtain marketable job skills. Requires each work assignment to be consistent with the physical capacity, skills, experience, health, family responsibilities, and place of residence of each participant. Prohibits work assignments which displace a currently employed worker or position, impair existing contracts for services or collective bargaining agreements, or fill the job of a worker who has been laid off or fired. Establishes a complaint procedure for employees who allege that such prohibitions have been violated. Prohibits States from requiring participants to work at less than the minimum wage or accept a job which would result in a loss of income to the participant or his or her family. Requires that Program activities be coordinated with Job Training Partnership Act programs and any other relevant employment, training, and education programs available in the State. Authorizes any State to institute a work supplementation program under which such State reserves that sums which would otherwise be payable to program participants as family support supplements and uses such sums instead to subsidize jobs for such participants. Authorizes any State to establish a community work experience program to provide experience and training for individuals not otherwise able to obtain employment. Limits such programs to projects which serve a useful public purpose utilizing, if possible, the participant's prior training, experience, and skills. Limits community work program participants to work or training (or both) for up to 12 months or unpaid work experience or training for up to three months. Requires that: (1) a reassessment be made and a new employability plan developed for participants who do not obtain employment after participation in a community work program; and (2) other Program activities be coordinated with the community work program so that job placement has priority over participation in such program. Prohibits an individual from participating in job search without participating in one or more other Program services or activities if job search has continued for eight weeks or longer without the individual obtaining a job. Provides that when a mandatory Program participant fails without good cause to comply with any requirement imposed on his or her participation in such Program: (1) such participant's needs shall not be taken into account in determining the family support supplement; or (2) supplements shall be denied to all family members until the participant complys. Continues sanctions for a minimum of three months if the participant failed to comply on a previous occasion. Directs States, after three months of a participant's noncompliance, to remind the participant in writing of his or her option to end the sanction. Requires the Secretary of Health and Human Services to: (1) publish final regulations and performance standards for such Programs within one year of this Act's enactment; (2) develop a legislative proposal for modifying the Federal AFDC matching rate so that it reflects the relative effectiveness of the various States in carrying out the Programs; and (3) provide for the continuing evaluation of State Programs and the conduct of research on making such Programs more effective. Directs the Secretary to establish uniform reporting requirements requiring each State to periodically furnish Program information to the Secretary, including the average monthly number and types of families assisted under each Program service and activity, the amounts expended on such families, and the length of time for which such families are assisted. Sets the federal matching rate at 75 percent of the expenditures for the operation and administration of the State Program if at least three-fifths of the non-Federal share is contributed in cash and at 50 percent if less than such amount is in cash. Broadens the definition of a "dependent child" to authorize States to provide benefits for individuals under age 21 who are regularly attending a course of higher, secondary, or primary education or vocational or technical training. Authorizes the Secretary to prescribe a standard for determining whether an individual is employed at the time of his or her application for family support supplements which is based upon whether or not the applicant has performed a specific number of hours of work within a designated period. Amends title XI (General Provisions) of the Act to authorize States to conduct demonstration projects testing financial incentives and interdisciplinary approaches to reducing school dropouts, encouraging skill development, and avoiding the welfare dependence of children receiving family support supplements. Authorizes the Secretary to make grants to States to assist in financing such projects. Title II: Day Care, Transportation, and Other Work-Related Expenses - Requires States to either: (1) provide day care for dependent children and incapacitated individuals living in the same home as a dependent child; or (2) reimburse the caretaker relative for the cost of such care, if and to the extent that such care is directly related to an individual's participation in the Program, reasonably necessary for such participation, and cost-effective. Provides coverage for certain transportation and other work-related costs. Continues day care coverage for one year after a family's eligibility for support supplements ceases, but permits States to reduce such coverage on the basis of a family's ability to pay. Directs States to regularly assess the availability and reliability of child care services available to Program participants, and, when necessary, develop new child care resources. Title III: Real Work Incentives - Excludes, in determining a family's eligibility for supplement payments: (1) the earned income of students who are not full-time employees; (2) $100 plus 25 percent of any family member's monthly earned income; (3) $100 of monthly family support payments; and (4) earned income credits payable to the family under the Internal Revenue Code. Prohibits application of the $100 and 25 percent earned income exclusion in the case of individuals who, without good cause: (1) terminate their employment or reduce their income; (2) refuse a bona fide offer of employment; or (3) fail to make a timely report of their monthly earned income. Authorizes States to increase the amount of an individual's earned income excluded under this Act in making family support supplement eligibility determinations. Amends the Internal Revenue Code to exclude any benefit provided under any Federal, State, or local governmental assistance program for the support of the individual or for maintenance of the household in determining whether a taxpayer is providing such support or maintenance. Title IV: Transitional Services for Families - Requires a State to continue a family's Medicaid (title XIX of the Act) eligibility for one year (a State may provide a two-year continuance of such eligibility) after the family's eligibility for family support supplements ends, unless such eligibility was terminated due to fraud or the imposition of a sanction. Terminates extended Medicaid coverage if the family ceases to include a dependent child or a family member engages in certain conduct which would warrant sanctions under the Family Support Program. Title V: Child Support Enforcement Amendments - Amends part D (Child Support and Establishment of Paternity) of title IV of the Act to direct States to: (1) establish binding guidelines for child support award determinations (currently, such guidelines need not be binding); and (2) periodically review and update all child support orders to ensure that they continue to comply with child support award guidelines. Requires States to abide by State procedural due process requirements when updating child support awards and notify absent parents of their right to contest the award. Requires that, to the extent possible, the paternity of a child be established at birth. Excludes the cost of paternity determinations as well as the cost of certain interstate child support enforcement projects from the computation of the incentive payment to a State for collecting child support payments. Amends title XI (General Provisions) of the Act to authorize States to conduct demonstration projects identifying and testing possible solutions to problems arising in connection with visitation by absent parents. Authorizes the Secretary to make grants to States to assist in financing such projects. Requires the Department of Health and Human Services to establish time limits within which a State must respond to requests for assistance in locating absent parents or establishing paternity, and begin proceedings to establish child support awards. Makes it mandatory that States establish an automatic data processing and information retrieval system for the child support enforcement and establishment of paternity determination process. Title VI: Pro-Family Welfare Policies - Requires States to pay family support supplements with respect to dependent children of unemployed parents in two-parent families. Includes within the definition "quarter of work", for the purpose of determining a family's eligibility for assistance, the parent's: (1) full-time attendance as an elementary or secondary school student; (2) full-time attendance in a vocational or technical training course; and (3) participation in a Job Training Partnership Act education or training program. Directs States to assign an individual case manager to each family receiving family support supplements which is headed by a minor parent. Requires unmarried minor parents to live with a parent, legal guardian, other adult relative, or in a foster home, maternity home, or other supportive living arrangement, unless the State determines that, given specified circumstances, it is impossible or inappropriate for them to do so. Treats the minor parent and minor parent's children as a family separate from the parent and parent's children with whom the minor parent resides in determining the minor parent's eligibility for supplement payments. Authorizes States to condition a minor parent's eligibility on his or her: (1) part-time school attendance; or (2) training in parenting and family living skills. Sets the Federal share of the cost of providing case management services for minor parents at 75 percent. Title VII: Benefit Improvements - Directs each State to re-evaluate annually its need and payment standard under the Family Support Program, giving particular attention to whether the amount it has assumed to be necessary for shelter is adequate. Sets forth reporting requirements. Increases the Federal share of a State's Family Support program costs if such State increases the level of family support supplement payments after FY 1987. Sets a mandatory State Family Support program benefit level to be implemented five years after this Act's enactment. Title VIII: Miscellaneous Provisions - Directs the Secretary of Health and Human Services and the Secretary of Agriculture to appoint an advisory group to make recommendations to the President and the Congress within one year of this Act's enactment regarding the coordination of the food stamp program under the Food Stamp Act of 1977 and the Family Support Program. Directs the Secretary to establish uniform reporting requirements requiring each State to periodically furnish the Secretary with information regarding the implementation of the Family Support Program.