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The original documents are located in Box 40, folder "Welfare (5)" of the James M.
Cannon Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 40 of the James M. Cannon Files at the Gerald R. Ford Presidential Library
File
THE WHITE HOUSE
WASHINGTON
June 28, 1976
MEMORANDUM FOR:
MAX FRIEDERSDORF
FROM:
JIM CANNON
SUBJECT:
Income Assistance Simplification Act
As you know, we have so far failed to find a sponsor for
the Income Assistance Simplification Act (fact sheet and
Presidential message attached). However, we should try
to send it up before the recess if at all possible. Can
you suggest either a sponsor or someone to introduce it?
Attachments
GERALD LIGRATY P FORD
B
EXECUTIVE OFFICE OF THE PRESIDENT
UNITED
OFFICE OF MANAGEMENT AND BUDGET
problem
STATES
WASHINGTON, D.C. 20503
Honorable Carl Albert
Speaker of the House of
Representatives
Washington, D. C. 20515
Dear Mr. Speaker:
Enclosed for the consideration of the Congress is a draft
bill "To provide greater efficiency and equity in the
operation and administration of Federal and federally
aided income assistance programs." This bill--the Income
Assistance Simplification Act--would enable the President
to make improvements in these programs as explained in
his message to the Congress of this date.
The basic objective of the enclosed bill is to provide
a mechanism for simplifying, rationalizing, and making
more understandable our major income assistance programs
(for example, aid to families with dependent children,
the work incentive program, supplemental security income,
the food stamp program, and various housing programs).
Accordingly, the bill sets forth a means by which modifica-
tions could be developed from a single, broad perspective
that would accommodate the objectives and requirements
of individual programs while improving the relationship
of each program to the income assistance system as a
whole. The proposal is intended to permit management
and structural reform; the authority in the bill is not
intended to be used as a means of reducing budget outlays
for income assistance benefits, nor to serve as a means
of bringing about Federal assumption of total responsibility
for the welfare system.
The Federal Government currently operates or supports
various programs intended to provide the necessities of
life to individuals and families unable to provide for
themselves. These programs, however, are difficult to
coordinate for various reasons, including diverse statutory
requirements, fragmented congressional committee jurisdic-
tions, and multiple administering agencies, as well as
the variety of ends they are supposed to serve.
The individual Federal income assistance programs were
enacted and amended at different times over the course
of the years to meet specific concerns and needs, often
without sufficient regard to other programs with the same
or similar general objectives. As a result, requirements
2
and benefits of individual programs are often unrelated,
or only superficially related, to those of the others.
This has given rise to inequities in the treatment of people
in similar circumstances, inconsistencies in eligibility
requirements, and operating complexities. Moreover, Federal
income assistance programs serve an overlapping population,
often provide duplicative benefits, and sometimes have
the effect of actually deterring people who are willing
to work from seeking work.
Under the proposed legislation, the President would examine
specified national means-tested income assistance programs
and could make modifications in their operation, in their
statutory provisions, and in the organization of the agencies
administering those programs, to promote the following
fundamental objectives:
-- Achievement of more equal treatment of recipients
with identical needs.
-- Focusing of resources on those most in need.
-- Assurance that the programs do not deter those
able to work from engaging in productive employment.
-- Simplification of administration and organization,
and reduction in excessive reporting and procedural
requirements, thereby reducing administrative costs.
--- Achievement of a system that is understandable
to the public.
Any modification to be made by the President would first
be published in the Federal Register, and interested parties
would be given 30 days to submit comments. The modification
would then be transmitted by the President to the Congress,
and would take effect 60 days after transmittal, unless
legislation to the contrary were enacted into law.
The enclosed "Income Assistance Simplification Act" embodies
a new approach to reform of income assistance programs
without fun lamentally restructuring programs all at once
or eliminating efforts to make specific improvements in
individual programs. This approach provides a basis for
new solutions to problems in this area by moving the current
separate and conflicting income assistance programs toward
a consistent system.
Each modification presented by the President would be con-
sidered within the context of overall income assistance
3
policy and yet analyzed and dealt with on its individual
merits. The result will be a sounder, more rational and
effective structure of income assistance for needy Americans.
The draft bill is described in greater detail in the enclosed
summary. We urge its prompt and favorable consideration
by the Congress.
Sincerely,
June James T. Lynn
Director
SUMMARY OF THE
INCOME ASSISTANCE SIMPLIFICATION ACT
The Act would authorize the President to modify statutory
provisions, revise program operations, and adjust agencies'
organizational arrangements in order to provide greater
efficiency and equity in major Federal income assistance
programs. The authority proposed in the Act is intended
to permit management and structural reform; it is not
intended to be used as a means of reducing budget outlays
for income assistance benefits, nor of bringing about
Federal assumption of total responsibility for the welfare
system.
Programs covered by the Act
The programs covered under the Act are those major national
means-tested income assistance programs of broad application:
-- the program of Aid to Familes with Dependent
Children (AFDC),
-- the Work Incentive Program (WIN),
-- the Supplemental Security Income Program (SSI)
-- the food stamp program, and
-- public housing, section 8 rental assistance,
section 236 housing assistance, and the urban
and rural rent supplement programs.
Programs such as social security, unemployment insurance,
and other benefits earned by the recipient and not subject
to means tests would not be covered by the Act.
Purpose
Section 2 of the Act sets forth the policies to be carried
out with respect to Federal income assistance programs,
including ensuring that the operation of those programs
is effective and equitable, that the relationships among
those progams are rational and equitable, that resources
are focused on the most needy, that those programs do
no deter individuals who are able to work from engaging
in productive employment, and that those programs are
readily understandable and are administered and organized
efficiently and effectively.
2
The section states that it is the purpose of the Act to
provide for carrying out these policies consistent with
the fundamental purposes of the affected income assistance
programs, and declares that this purpose can be achieved
effectively by proceeding under the Act.
It is not intended to use the authority under the Act to
transform the essential character of any of the programs
covered under the Act; that is, the resources of the AFDC
program would continue to provide cash assistance only
to low-income needy families with dependent children; the
WIN program would continue to finance programs to help
AFDC applicants and recipients obtain employment; the SSI
program would provide cash assistance only to low-income
needy elderly, disabled, or blind persons; the food stamp
program would provide assistance to enable low-income needy
individuals and families to have an opportunity to purchase
nutritionally adequate food; and the specified housing
programs would provide assistance to low-income needy indi-
viduals and families only to obtain adequate housing.
Income Assistance Program Modifications
Section 3 (a) requires the President, from time to time,
to examine the operations and statutory provisions for
the programs covered under the Act, as well as the organiza-
tions of the agencies responsible for administering them,
and to determine what changes in such operations, statutory
provisions, and agency organizations are necessary to carry
out any of the policies set forth in the Act.
Under section 3 (b), whenever the President finds that changes
are needed to carry out any of the policies of the Act,
he would prepare an Income Assistance Program Modification
which could make changes in the eligibility requirements
and benefits under any of the enumerated programs, in the
administration of those programs, and in the organization
of agencies operating those programs. Only existing agencies
would be affected; no new agency could be created pursuant
to a Modification.
The Modification could be designed to correct such problems
as: the use of inconsistent asset tests in determining
eligibility of individuals and families for SSI, food stamps,
and public housing; complexities in the treatment of resources
of persons in a household who are not all eligible for
benefits; a lessening of work incentives for a recipient
of aid under two or more programs by an excessive reduction
of benefits because of additional earned income; and differences
among programs in definitions of "aged" and "households".
3
Section 3 (c) provides that a Modification could not terminate
any of the specified programs before their statutory termina-
tion dates, or extend such programs beyond their termination
dates.
Section 3 (d) provides that a Modification may, as the President
considers necessary, provide for the transfer of records,
property, personnel, unexpended balances of appropriations,
and other funds that are affected by a Modification.
Effective Date and Publication of Modifications
Section 4 of the Act provides that any Modification prepared
pursuant to the authority under the Act must be published
in the Federal Register and public comment on it accepted
for a period of at least 30 days after publication. It
is intended that during this period there would be consulta-
tions with appropriate congressional committees and with
officials of State and local governments on the changes
being proposed.
After the close of the comment period, the Modification
would be transmitted to the Congress by the President,
while both Houses are in session, with appropriate changes
based on the comments received. The Modification would
have to be accompanied by a declaration that each change
included in the Modification has been found by the President
to be necessary to achieve a policy set forth in the Act.
A Modification prepared under the Act would become effective
at the end of the first period of 60 calendar days of contin-
uous session of the Congress after the date on which the
Modification is transmitted to it, unless legislation to
the contrary were enacted into law.
Effect on Other Laws and Pending Legal Proceedings
Section 5 provides that:
-- affected statutes and regulations will continue
in effect except to the extent changed by a Modification.
-- any provision of a Modification which becomes effective
will supersede any inconsistent provision of law, and any
regulation or other action affected by a Modification will
be deemed to be modified to eliminate any inconsistency.
-- no pending legal proceeding would abate by reason
of a transfer of functions from one agency to another pursuant
to a Modification.
4
Termination of Authority
Section 6 provides that the President may transmit Modifi-
cations to the Congress prior to October 1, 1981. It is
intended that during this period, the authority provided
would be carefully assessed and possible changes in it
studied.
A BILL
To provide greater efficiency and equity in the operation
and administration of Federal and federally aided
income assistance programs.
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled,
That this Act may be cited as the "Income Assistance
Simplification Act".
PURPOSE
SEC. 2. (a) The Congress declares that it is the
policy of the United States with respect to income assistance
programs of the Federal Government --
(1) to ensure that the operation of those programs
is effective and equitable,
(2) to make the relationships among those programs
rational and equitable,
(3) to eliminate inconsistencies in those programs
SO that individuals and families in like circum-
stances may be treated similarly and equitably,
(4) to focus resources available for those
programs on those persons who are most in need,
(5) to assure that those programs do not deter
individuals who are able to work from obtaining
appropriate skills and engaging in productive employment,
(6) to reduce the complexity of those programs
so that they will be readily understandable to bene-
ficiaries and the public, and
2
(7) to improve the administration of those
programs and the organization of agencies responsible
for their implementation so that they are carried
out efficiently and effectively.
(b) It is the purpose of this Act to provide for
the carrying out of the policies set forth in subsection
(a), consistent with the fundamental purposes of the
income assistance programs of the Federal Government.
The Congress declares that this purpose can be achieved
effectively by proceeding under this Act.
INCOME ASSISTANCE SIMPLIFICATION
SEC. 3 (a) The President shall from time to time
examine the operation of, the provisions of law governing,
and the organization of the agencies responsible for
administering --
(1) the program of aid to families with dependent
children authorized by Title IV-A of the Social
Security Act,
(2) the work incentive program authorized by
Title IV-C of the Social Security Act,
(3) the program of supplemental security income
for the aged, blind, and disabled authorized by
Title XVI of the Social Security Act,
(4) the food stamp program authorized by the
Food Stamp Act of 1964,
3
(5) the housing programs authorized by the
United States Housing Act of 1937,
(6) the program of rental and cooperative housing
for lower income families authorized by section
236 of the National Housing Act,
(7) the program of financial assistance to
enable certain private housing to be available for
lower income families who are elderly, handicapped,
displaced, victims of a natural disaster, or occupants
of substandard housing, authorized by section 101
of the Housing and Urban Development Act of 1965,
and
(8) the program of rural rental assistance
authorized by section 521 (a) (2) of the Housing Act
of 1949,
and shall determine what changes are necessary in the
operation of such programs, the provisions of law governing
such programs, or the organization of the agencies responsible
for administering such programs, to carry out any of
the policies set forth in section 2 (a).
(b) Whenever the President, after examination,
finds that such changes are necessary to carry out any
of the policies set forth in section 2 (a), he shall prepare
an Income Assistance Program Modification specifying
4
the changes he finds are necessary. Except as provided
in subsection (c), a Modification may --
(1) modify the eligibility requirements for
a program enumerated in subsection (a),
(2) modify the benefits provided under a program
enumerated in subsection (a), including the level
of benefits or the determination of benefit amounts,
(3) modify the administration of a program
enumerated in subsection (a), including the terms
and conditions of participation by States and localities
in that program, or
(4) modify the organization of agencies adminis-
tering the programs enumerated in subsection (a),
including transfer and consolidation of organizations
and functions within and between such existing agencies.
(c) Notwithstanding the provisions of subsection
(b) , no Modification may --
(1) terminate a program enumerated in subsection
(a) before the date it would have terminated if
the Modification had not been made, or
(2) extend a program enumerated in subsection
(a) beyond the date it would have terminated if
the Modification had not been made.
(b) A Modification prepared by the President may,
as he considers necessary --
5
(1) provide for the transfer or other disposition
of records, property, and personnel affected by
such Modification, and
(2) provide for the transfer of such unexpended
balances of appropriations and of other funds available
for use in connection with a program, organization,
or function affected by such Modification.
EFFECTIVE DATE AND PUBLICATION
OF MODIFICATIONS
SEC. 4. (a) Any Modification prepared pursuant
to section 3 shall be published in the Federal Register
and public comment on it accepted for a period of at
least 30 days after publication. After the close of
the comment period, the President shall transmit the
Modification, with such changes as he determines appro-
priate on the basis of the comments received, to both
Houses of Congress on the same day and to each House
while it is in session. The Modification shall be accom-
panied by a declaration that, with respect to each change
included in the Modification, he has found that the change
is necessary to achieve a policy set forth in section
2 (a).
(b) Except as provided in subsection (c), a Modifica-
tion shall be effective at the end of the first period
of 60 calendar days of continuous session of Congress
6
after the date on which the Modification is transmitted
to it. For purposes of this subsection --
(1) continuity of session is broken only by
an adjournment of Congress sine die, and
(2) the days on which either House is not in
session because of an adjournment of more than 3
days to a day certain are excluded in the computation
of the 60 day period.
(c) A provision of a Modification may, under pro-
visions contained in the Modification, be effective at
a time later than the date on which the Modification
otherwise is effective.
(d) A Modification which is effective shall be
printed in (1) the Statutes at Large in the same volume
as the public laws, and (2) the Federal Register.
EFFECT ON OTHER LAWS AND
PENDING LEGAL PROCEEDINGS
SEC. 5. (a) A statute enacted, a regulation issued,
or other official action taken in respect to an agency
or function affected by a Modification under this Act
before the effective date of the Modification has, except
to the extent rescinded or modified by the Modification,
the same effect as if the Modification had not been made.
(b) If any provision of a Modification which becomes
effective under this Act is inconsistent with any pro-
vision of any statute enacted prior to the effective
7
date of the Modification, the provision of the Modification
shall control to the extent that such Modification specifies
the provision of the statute to be superseded.
(c) Any regulation issued or other action taken
with respect to any matter affected by a Modification
which becomes effective under this Act shall be deemed
to be modified to the extent of any inconsistency thereof
with the Modification but shall otherwise continue in
effect.
(d) No legal proceeding involving any officer in
his official capacity as an officer of any agency, functions
of which are transferred by this Act, shall abate by
reason of the enactment of this Act. Legal proceedings
may be asserted by or against the United States or such
official of the agency as may be appropriate and, in
any litigation pending when this Act takes effect, the
court may at any time, on its own motion or that of any
party, enter any order which will give effect to the
provisions of this section.
(e) If, before the date on which this Act takes
effect, any agency, or officer thereof in his official
capacity, is a party to a suit, and under this Act any
function of such agency or officer is transferred to
any other agency or official, then such suit shall be
continued, with the successor agency or official, as
8
the case may be, substituted as if this Act had not been
enacted.
TERMINATION OF AUTHORITY
SEC. 6. A Modification may take effect only if
the Modification is transmitted to the Congress, pursuant
to section 4, prior to October 1, 1981.
PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE
UNITED
OFFICE OF MANAGEMENT AND BUDGET
DECUTIVE
STATE
WASHINGTON, D.C. 20503
Honorable Nelson A. Rockefeller
President of the Senate
Washington, D. C. 20510
Dear Mr. President:
Enclosed for the consideration of the Congress is a draft
bill "To provide greater efficiency and equity in the
operation and administration of Federal and federally
aided income assistance programs." This bill--the Income
Assistance Simplification Act-would enable the President
to make improvements in these programs as explained in
his message to the Congress of this date.
The basic objective of the enclosed bill is to provide
a mechanism for simplifying, rationalizing, and making
more understandable our major income assistance programs
(for example, aid to families with dependent children,
the work incentive program, supplemental security income,
the food stamp program, and various housing programs).
Accordingly, the bill sets forth a means by which modifica-
tions could be developed from a single, broad perspective
that would accommodate the objectives and requirements
of individual programs while improving the relationship
of each program to the income assistance system as a
whole. The proposal is intended to permit management
and structural reform; the authority in the bill is not
intended to be used as a means of reducing budget outlays
for income assistance benefits, nor to serve as a means
of bringing about Federal assumption of total responsibility
for the welfare system.
The Federal Government currently operates or supports
various programs intended to provide the necessities of
life to individuals and families unable to provide for
themselves. These programs, however, are difficult to
coordinate for various reasons, including diverse statutory
requirements, fragmented congressional committee jurisdic-
tions, and multiple administering agencies, as well as
the variety of ends they are supposed to serve.
The individual Federal income assistance programs were
enacted and amended at different times over the course
of the years to meet specific concerns and needs, often
without sufficient regard to other programs with the same
or similar general objectives. As a result, requirements
2
and benefits of individual programs are often unrelated,
or only superficially related, to those of the others.
This has given rise to inequities in the treatment of people
in similar circumstances, inconsistencies in eligibility
requirements, and operating complexities. Moreover, Federal
income assistance programs serve an overlapping population,
often provide duplicative benefits, and sometimes have
the effect of actually deterring people who are willing
to work from seeking work.
Under the proposed legislation, the President would examine
specified national means-tested income assistance programs
and could make modifications in their operation, in their
statutory provisions, and in the organization of the agencies
administering those programs, to promote the following
fundamental objectives:
-- Achievement of more equal treatment of recipients
with identical needs.
-- Focusing of resources on those most in need.
-- Assurance that the programs do not deter those
able to work from engaging in productive employment.
-- Simplification of administration and organization,
and reduction in excessive reporting and procedural
requirements, thereby reducing administrative costs.
-- Achievement of a system that is understandable
to the public.
Any modification to be made by the President would first
be published in the Federal Register, and interested parties
would be given 30 days to submit comments. The modification
would then be transmitted by the President to the Congress,
and would take effect 60 days after transmittal, unless
legislation to the contrary were enacted into law.
The enclosed "Income Assistance Simplification Act" embodies
a new approach to reform of income assistance programs
without fundamentally restructuring programs all at once
or eliminating efforts to make specific improvements in
individual programs. This approach provides a basis for
new solutions to problems in this area by moving the current
separate and conflicting income assistance programs toward
a consistent system.
Each modification presented by the President would be con-
sidered within the context of overall income assistance
policy and yet analyzed and dealt with on its individual
3
merits. The result will be a sounder, more rational and
effective structure of income assistance for needy Americans.
The draft bill is described in greater detail in the enclosed
summary. We urge its prompt and favorable consideration
by the Congress.
Sincerely,
L.Rg
James T. Lynn
Director
SUMMARY OF THE
INCOME ASSISTANCE SIMPLIFICATION ACT
The Act would authorize the President to modify statutory
provisions, revise program operations, and adjust agencies'
organizational arrangements in order to provide greater
efficiency and equity in major Federal income assistance
programs. The authority proposed in the Act is intended
to permit management and structural reform; it is not
intended to be used as a means of reducing budget outlays
for income assistance benefits, nor of bringing about
Federal assumption of total responsibility for the welfare
system.
Programs covered by the Act
The programs covered under the Act are those major national
means-tested income assistance programs of broad application:
-- the program of Aid to Familes with Dependent
Children (AFDC),
-- the Work Incentive Program (WIN),
-- the Supplemental Security Income Program (SSI)
-- the food stamp program, and
-- public housing, section 8 rental assistance,
section 236 housing assistance, and the urban
and rural rent supplement programs.
Programs such as social security, unemployment insurance,
and other benefits earned by the recipient and not subject
to means tests would not be covered by the Act.
Purpose
Section 2 of the Act sets forth the policies to be carried
out with respect to Federal income assistance programs,
including ensuring that the operation of those programs
is effective and equitable, that the relationships among
those progams are rational and equitable, that resources
are focused on the most needy, that those programs do
no deter individuals who are able to work from engaging
in productive employment, and that those programs are
readily understandable and are administered and organized
efficiently and effectively.
2
The section states that it is the purpose of the Act to
provide for carrying out these policies consistent with
the fundamental purposes of the affected income assistance
programs, and declares that this purpose can be achieved
effectively by proceeding under the Act.
It is not intended to use the authority under the Act to
transform the essential character of any of the programs
covered under the Act; that is, the resources of the AFDC
program would continue to provide cash assistance only
to low-income needy families with dependent children; the
WIN program would continue to finance programs to help
AFDC applicants and recipients obtain employment; the SSI
program would provide cash assistance only to low-income
needy elderly, disabled, or blind persons; the food stamp
program would provide assistance to enable low-income needy
individuals and families to have an opportunity to purchase
nutritionally adequate food; and the specified housing
programs would provide assistance to low-income needy indi-
viduals and families only to obtain adequate housing.
Income Assistance Program Modifications
Section 3 (a) requires the President, from time to time,
to examine the operations and statutory provisions for
the programs covered under the Act, as well as the organiza-
tions of the agencies responsible for administering them,
and to determine what changes in such operations, statutory
provisions, and agency organizations are necessary to carry
out any of the policies set forth in the Act.
Under section 3 (b), whenever the President finds that changes
are needed to carry out any of the policies of the Act,
he would prepare an Income Assistance Program Modification
which could make changes in the eligibility requirements
and benefits under any of the enumerated programs, in the
administration of those programs, and in the organization
of agencies operating those programs. Only existing agencies
would be affected; no new agency could be created pursuant
to a Modification.
The Modification could be designed to correct such problems
as: the use of inconsistent asset tests in determining
eligibility of individuals and families for SSI, food stamps,
and public housing; complexities in the treatment of resources
of persons in a household who are not all eligible for
benefits; a lessening of work incentives for a recipient
of aid under two or more programs by an excessive reduction
of benefits because of additional earned income; and differences
among programs in definitions of "aged" and "households".
3
Section 3 (c) provides that a Modification could not terminate
any of the specified programs before their statutory termina-
tion dates, or extend such programs beyond their termination
dates.
Section 3 (d) provides that a Modification may, as the President
considers necessary, provide for the transfer of records,
property, personnel, unexpended balances of appropriations,
and other funds that are affected by a Modification.
Effective Date and Publication of Modifications
Section 4 of the Act provides that any Modification prepared
pursuant to the authority under the Act must be published
in the Federal Register and public comment on it accepted
for a period of at least 30 days after publication. It
is intended that during this period there would be consulta-
tions with appropriate congressional committees and with
officials of State and local governments on the changes
being proposed.
After the close of the comment period, the Modification
would be transmitted to the Congress by the President,
while both Houses are in session, with appropriate changes
based on the comments received. The Modification would
have to be accompanied by a declaration that each change
included in the Modification has been found by the President
to be necessary to achieve a policy set forth in the Act.
A Modification prepared under the Act would become effective
at the end of the first period of 60 calendar days of contin-
uous session of the Congress after the date on which the
Modification is transmitted to it, unless legislation to
the contrary were enacted into law.
Effect on Other Laws and Pending Legal Proceedings
Section 5 provides that:
-- affected statutes and regulations will continue
in effect except to the extent changed by a Modification.
-- any provision of a Modification which becomes effective
will supersede any inconsistent provision of law, and any
regulation or other action affected by a Modification will
be deemed to be modified to eliminate any inconsistency.
-- no pending legal proceeding would abate by reason
of a transfer of functions from one agency to another pursuant
to a Modification.
4
Termination of Authority
Section 6 provides that the President may transmit Modifi-
cations to the Congress prior to October 1, 1981. It is
intended that during this period, the authority provided
would be carefully assessed and possible changes in it
studied.
MESSAGE ON INCOME ASSISTANCE
I am today submitting to the Congress my proposed
Income Assistance Simplification Act.
The purpose of this Act is to improve the effectiveness
of our major income assistance programs. I would authorize
Presidential action to modify these diverse programs so that
they can be shaped into a more coherent effort by the Federal
Government to assist persons in need. The Act addresses prob-
lems of overlapping responsibility, inconsistent objectives,
and inefficient administration which plague these programs as
they operate today.
It should be understood that I do not view this
proposal as the complete answer to the many failings of our
welfare "system," but I believe it is an important and neces-
sary interim step toward correcting some of those defects.
The current array of welfare programs is the product of
a long and proud tradition of helping the least fortunate
among us. It is a tradition encompassing many sources of aid
--- that from family, friends, churches, voluntary organiza-
tions, and increasingly from Federal, State and local govern-
ments. It includes assistance in many forms -- cash, food
stamps, health care, day care for young children, hot meals
for the elderly, and special equipment for the disabled.
As our nation's wealth has increased, the Federal Gov-
ernment has taken an ever increasing role in extending aid to
-2-
the needy. During the 1960's, a virtual flood of social
legislation created new programs to provide assistance to the
poor. Many of these programs were directed at solving a spe-
cific problem for a designated group of needy individuals.
Unfortunately, as new programs came into being, very little
consideration was given to how any one program blended with
other programs already in operation.
Not surprisingly, the welfare "system" which resulted
is a complex, disjointed mix of Federal, State and local pro-
grams and responsibilities.
These programs currently receive more than $26 billion
annually in Federal funds. They are inefficient and costly
to administer. They collectively confuse the recipient, the
caseworker, the program administrator, and the taxpayer.
Worse yet, the inequities and inconsistencies sometimes have
the undesirable effects of discouraging work and promoting a
breakdown of the family unit.
The nature and extent of the problems with the welfare
"system" are fairly well understood. The real difficulty
lies in developing workable and acceptable solutions.
The entire welfare system has come increasingly under
suspicion and attack by many Americans, particularly those
who have worked so hard on their own to attain a degree of
economic security. They may not begrudge the use of their
tax dollars to help the truly unfortunate, but they have come
-3-
to view most recipients suspiciously, as likely chiselers or
abusers of the system. This trend is very disturbing. But,
in plain fact, the programs are failing to achieve their
purposes, they do not focus on those with greatest need, and
they tend to encourage abuse. Worst of all, the accumulated
shortcomings constitute an inadvertent assault on our tradi-
tional values of family, work, and individual responsibility.
In some situations welfare families can receive bene-
fits from a combination of programs which total more than
$10,000, while persons elsewhere with identical needs receive
far less. In other situations, persons receiving welfare
are discouraged from seeking work because they would lose in
benefits nearly as much as they would take home in their pay-
check. The fact that the system sometimes encourages fami-
lies to separate, divorce, or dishonestly say that they have
done so both demeans the individuals and works against the
best long-range interests of us all.
It is no wonder that the welfare system is under
attack. But our response must not be to punish the great
majority of persons on welfare who are truly needy, who can-
not work, or who are unable to earn enough to meet minimum
needs. What we must do is to change the system. The ques-
tion is how.
Some would argue that comprehensive and fundamental
reform is the answer. Others view legislative changes to
-4-
existing programs as a more viable route. I see problems with
both of these alternatives.
Several major welfare reform initiatives have been
introduced without success in recent years by persons of vary-
ing political persuasions. Most proposed changes are attacked
by one group arguing that benefits would be reduced or denied
to current recipients, while simultaneously others argue that
the change would provide excessive benefits, or that its net
cost is too high.
Another obstacle to programmatic reform is that no
single committee in either House of Congress has legislative
jurisdiction broad enough to cover all the current income
assistance programs.
Because of the shortcomings of both the comprehensive
reform approach and the legislative amendment approach to im-
proving the welfare system, I am proposing the Income Assist-
ance Simplification Act. As I stated earlier, I do not view
this proposal as the final word on welfare reform, but only
as a beginning.
This Act would authorize the President to modify our
major income assistance programs:
The program of Aid to Families with
Dependent Children (AFDC)
The Work Incentive Program (WIN)
The Supplemental Security Income Program
(SSI)
-5-
The Food Stamp Program
The public housing, Section 8 rental
assistance, and urban and rural rent
supplement programs
The following objectives would be pursued under the
Act:
To focus resources on those with greatest
need;
To treat in an equitable fashion those
individuals and families in similar cir-
cumstances;
To assure that individuals able to work
are not deterred from obtaining appro-
priate skills and engaging in productive
employment;
To make the programs less complex and
more understandable to beneficiaries and
to the public; and
To improve efficiency and effectiveness
by simplifying the operation and admin-
istration of the programs.
Under the proposed Act, the President would examine the
operations, statutory provisions, and organizational struc-
tures of the programs involved. Modifications consistent with
the stated purposes could be made by the President in eligi-
bility requirements, benefits, program administration, and the
organization of administering agencies.
A proposed Modification would be published in the
Federal Register for at least thirty days of public review and
comment. Subsequently, appropriate changes based on comments
-6-
received would be made and the Modification transmitted to
the Congress. The Modification would become effective after
sixty days unless legislation to the contrary were enacted
into law.
It should be made clear that the authority in the
proposed legislation could not be used to change the basic
purposes of any of the covered programs. Nor is it the intent
of this legislation either to provide a vehicle for cutting
bring about Federal
back the budget for income assistance or to "Federalize" the
assumption of total responsibility for thei a
welfare system. Instead, as I have already stated, the funda-
mental purpose is to improve the equity, the effectiveness,
and the results of an overly complex and too often ineffective
system.
As we continue to seek the best means for improving the
welfare system over the long term, I urge the Congress to give
prompt, careful, and favorable consideration to the Income
Assistance Simplification Act.
6/14/76
April 5, 1976
FACT SHEET
INCOME ASSISTANCE SIMPLIFICATION ACT
The President is today proposing the Income Assistance
Simplification Act which will provide a mechanism for
simplifying, rationalizing, and making more understandable
the major income assistance programs of the Federal
Government.
BACKGROUND
The Federal Government currently operates or supports
various programs intended to provide the necessities of
life to individuals and families unable to provide for
themselves. These programs, however, are difficult to
coordinate for various reasons, including diverse statutory
requirements, fragmented congressional committee juris-
dictions, and multiple administering agencies, as well
as the variety of ends they are supposed to serve.
The individual Federal income assistance programs were
enacted and amended at different times over the course
of the years to meet specific concerns and needs, often
without sufficient regard to other programs with the
same or similar general objectives. As a result, require-
ments and benefits of individual programs are often unrelated,
or only superficially related, to those of the others.
This has given rise to inequities in the treatment of people
in similar circumstances, inconsistencies in eligibility
requirements, and operating complexities. Moreover, Federal
income assistance programs serve an overlapping population,
often provide duplicative benefits, and sometimes have
the effect of actually deterring people who are willing
to work from seeking work.
DESCRIPTION OF PROPOSAL
This legislation sets forth a means by which modifications
in Federal income assistance programs could be developed
from a single, broad perspective that would accommodate
GERALD FORD LIBRARY
--2-
the objectives and requirements of individual programs
while improving the relationship of each program to the
income assistance system as a whole. The proposal is
intended to permit management and structural reform; the
authority in the bill is not intended to be used as a
means of reducing budget outlays for income assistance
benefits, nor to serve as a means of achieving Federal
assumption of total responsibility for the welfare system.
I. OBJECTIVES OF THE ACT
bringing about
Under the proposed legislation, the President would
examine specified national means-tested income
assistance programs and could make modifications
in their operation, in their statutory provisions,
and in the organization of the agencies administering
those programs, to promote the following fundamental
objectives:
---- Achievement of more equal treatment of recipients
with identical needs.
-- Focusing of resources on those in need.
-- Assurance that the programs do not deter those-
able to work from engaging in productive employ-
ment.
-- Simplification of administration and organization,
and reduction in excessive reporting and procedural
requirements, thereby reducing administrative costs.
-- Achievement of a system that is understandable to
the public.
II. PROGRAMS COVERED
The programs covered under the act are those major
national means-tested income assistance programs of
broad application:
-- the program of Aid to Families with Dependent
Children (AFDC),
--- the Work Incentive Program (WIN),
-- the Supplemental Security Income Program (SSI),
BERALD FORD LIBRARY
3-
--- the food stamp program, and
-- public housing, section 8 rental assistance,
section 236 housing assistance, as the urban
and rural rent supplement programs.
Programs such as social security, unemployment insurance,
and other benefits earned by the recipient and not subject
to means tests would not be covered by the act.
III. EXAMPLES OF SHORTCOMINGS IN THE PRESENT INCOME
ASSISTANCE PROGRAMS
-- Less necdy families on AFDC may receive greater
total income than families of the working poor
not on AFDC, since some of the AFDC recipients'
earned income may be disregarded in determining
eligibility because of child care and work-
related expenses.
--- One poor working family may be eligible for AFDC-
Unemployed Fathers benefits while another may not,
even though both have the same earned income,
because of the requirement that an AFDC-UF father
may not work more than 100 hours a month.
--- The definition of "aged" varies from 65 in SSI
to 62 in public housing programs to 60 in the
food stamp program.
--- The way SSI benefits are calculated varies depend-
ing on whether the SSI beneficiaries live alone,
live with AFDC beneficiaries, live with persons
of independent support, or with persons who are
partially dependent for support.
--- Individuals receiving benefits from several income
assistance programs may be deterred from earning
extra income because nearly all their earnings
might be offset by reductions in their benefits.
IV. PROGRAM MODIFICATION AUTHORITY
Whenever the President finds that changes are needed
to carry out any of the policies of the act, he would
prepare an Income Assistance Program Modification
LIBRARY GERALD FORD
-4-
which could make changes in the eligibility require-
ments and benefits under any of the enumerated
programs, in the administration of those programs,
and in the organization of agencies erating those
programs. Only existing agencies would be affected;
no new agency could be created pursuant to a
Modification.
Any modification to be made by the President would
first be published in the Federal Register, and
interested parties would be given thirty days to
submit comments. The Modification would then be
transmitted by the President to the Congress, and
would take effect sixty days after transmittal,
unless legislation to the contrary were enacted
into law.
V.
EFFECT ON OTHER LAWS AND PENDING LEGAL PROCEEDINGS
Affected statutes and regulations would continue
in effect except to the extent changed by a Modifi-
cation. Any provision of a Modification which
becomes effective would supersede any inconsistent
provision of law, and any regulation or other action
affected by a Modification would be deemed to be
modified to eliminate any inconsistency. No pending
legal proceeding would abate by reason of a transfer
of functions from one agency to another pursuant to
a Modification.
VI. TERMINATION OF AUTHORITY
The President could transmit Modifications to the
Congress prior to October 1, 1981. It is intended
that during this period, the authority provided
would be carefully assessed and possible changes in
it studied.
GERALD FORD LIBRARA
1
A BILL
To provide greater efficiency and equity in the operation
and administration of Federal and federally aided
income assistance programs.
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled,
That this Act may be cited as the "Income Assistance
Simplification Act".
PURPOSE
SEC. 2. (a) The Congress declares that it is the
policy of the United States with respect to income assistance
programs of the Federal Government ---
(1) to ensure that the operation of those programs
is effective and equitable,
(2) to make the relationships among those programs
rational and equitable,
(3) to eliminate inconsistencies in those programs
SO that individuals and families in like circum-
stances may be treated similarly and equitably,
(4) to focus resources available for those
programs on those persons who are most in need,
(5) to assure that those programs do not deter
individuals who are able to work from obtaining
appropriate skills and engaging in productive employment,
(6) to reduce the complexity of those programs
so that they will be readily understandable to bene--
ficiaries and the public, and
2
(7) to improve the administration of those
programs and the organization of agencies responsible
for their implementation so that they are carried
out efficiently and effectively.
(b) It is the purpose of this Act to provide for
the carrying out of the policies set forth in subsection
(a), consistent with the fundamental purposes of the
income assistance programs of the Federal Government.
The Congress declares that this purpose can be achieved
effectively by proceeding under this Act.
INCOME ASSISTANCE SIMPLIFICATION
SEC. 3 (a) The President shall from time to time
examine the operation of, the provisions of law governing,
and the organization of the agencies responsible for
administering --
(1) the program of aid to families with dependent
children authorized by Title IV-A of the Social
Security Act,
(2) the work incentive program authorized by
Title IV-C of the Social Security Act,
(3) the program of supplemental security income
for the aged, blind, and disabled authorized by
Title XVI of the Social Security Act,
(4) the food stamp program authorized by the
Food Stamp Act of 1964,
3
(5) the housing programs authorized by the
United States Housing Act of 1937,
(6) the program of rental and cooperative housing
for lower income families authorized by section
236 of the National Housing Act,
(7) the program of financial assistance to
enable certain private housing to be available for
lower income families who are elderly, handicapped,
displaced, victims of a natural disaster, or occupants
of substandard housing, authorized by section 101
of the Housing and Urban Development Act of 1965,
and
(8) the program of rural rental assistance
authorized by section 521 (a) (2) of the Housing Act
of 1949,
and shall determine what changes are necessary in the
operation of such programs, the provisions of law governing
such programs, or the organization of the agencies responsible
for administering such programs, to carry out any of
the policies set forth in section 2 (a).
(b) Whenever the President, after examination,
finds that such changes are necessary to carry out any
of the policies set forth in section 2 (a), he shall prepare
an Income Assistance Program Modification specifying
4
the changes he finds are necessary. Except as provided
in subsection (c), a Modification may --
(1) modify the eligibility requirements for
a program enumerated in subsection (a),
(2) modify the benefits provided under a program
enumerated in subsection (a), including the level
of benefits or the determination of benefit amounts,
(3) modify the administration of a program
enumerated in subsection (a), including the terms
and conditions of participation by States and localities
in that program, or
(4) modify the organization of agencies adminis-
tering the programs enumerated in subsection (a),
including transfer and consolidation of organizations
and functions within and between such existing agencies.
(c) Notwithstanding the provisions of subsection
(b) no Modification may -
(1) terminate a program enumerated in subsection
(a) before the date it would have terminated if
the Modification had not been made, or
(2) extend a program enumerated in subsection
(a) beyond the date it would have terminated if
the Modification had not been made.
(b) A Modification prepared by the President may,
as he considers necessary ---
5
(1) provide for the transfer or other disposition
of records, property, and personnel affected by
such Modification, and
(2) provide for the transfer of such unexpended
balances of appropriations and of other funds available
for use in connection with a program, organization,
or function affected by such Modification.
EFFECTIVE DATE AND PUBLICATION
OF MODIFICATIONS
SEC. 4. (a) Any Modification prepared pursuant
to section 3 shall be published in the Federal Register
and public comment on it accepted for a period of at
least 30 days after publication. After the close of
the comment period, the President shall transmit the
Modification, with such changes as he determines appro-
priate on the basis of the comments received, to both
Houses of Congress on the same day and to each House
while it is in session. The Modification shall be accom--
panied by a declaration that, with respect to each change
included in the Modification, he has found that the change
is necessary to achieve a policy set forth in section
2 (a) .
(b) Except as provided in subsection (c), a Modifica-
tion shall be effective at the end of the first period
of 60 calendar days of continuous session of Congress
6
after the date on which the Modification is transmitted
to it. For purposes of this subsection --
(1) continuity of session is broken only by
an adjournment of Congress sine die, and
(2) the days on which either House is not in
session because of an adjournment of more than 3
days to a day certain are excluded in the computation
of the 60 day period.
(c) A provision of a Modification may, under pro-
visions contained in the Modification, be effective at
a time later than the date on which the Modification
otherwise is effective.
(d) A Modification which is effective shall be
printed in (1) the Statutes at Large in the same volume
as the public laws, and (2) the Federal Register.
EFFECT ON OTHER LAWS AND
PENDING LEGAL PROCEEDINGS
SEC. 5. (a) A statute enacted, a regulation issued,
or other official action taken in respect to an agency
or function affected by a Modification under this Act
before the effective date of the Modification has, except
to the extent rescinded or modified by the Modification,
the same effect as if the Modification had not been made.
(b) If any provision of a Modification which becomes
effective under this Act is inconsistent with any pro-
vision of any statute enacted prior to the effective
7
date of the Modification, the provision of the Modification
shall control to the extent that such Modification specifies
the provision of the statute to be superseded.
(c) Any regulation issued or other action taken
with respect to any matter affected by a Modification
which becomes effective under this Act shall be deemed
to be modified to the extent of any inconsistency thereof
with the Modification but shall otherwise continue in
effect.
(d) No legal proceeding involving any officer in
his official capacity as an officer of any agency, functions
of which are transferred by this Act, shall abate by
reason of the enactment of this Act. Legal proceedings
may be asserted by or against the United States or such
official of the agency as may be appropriate and, in
any litigation pending when this Act takes effect, the
court may at any time, on its own motion or that of any
party, enter any order which will give effect to the
provisions of this section.
(e) If, before the date on which this Act takes
effect, any agency, or officer thereof in his official
capacity, is a party to a suit, and under this Act any
function of such agency or officer is transferred to
any other agency or official, then such suit shall be
continued, with the successor agency or official, as
8
the case may be, substituted as if this Act had not been
enacted.
TERMINATION OF AUTHORITY
SEC. 6. A Modification may take effect only if
the Modification is transmitted to the Congress, pursuant
to section 4, prior to October 1, 1981.
A BILL
To provide greater efficiency and equity in the operation
and administration of Federal and federally aided
income assistance programs.
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled,
That this Act may be cited as the "Income Assistance
Simplification Act".
PURPOSE
SEC. 2. (a) The Congress declares that it is the
policy of the United States with respect to income assistance
programs of the Federal Government -
(1) to ensure that the operation of those programs
is effective and equitable,
(2) to make the relationships among those programs
rational and equitable,
(3) to eliminate inconsistencies in those programs
so that individuals and families in like circum-
stances may be treated similarly and equitably,
(4) to focus resources available for those
programs on those persons who are most in need,
(5) to assure that those programs ão not deter
individuals who are able to work from obtaining
appropriate skills and engaging in productive employment,
(6) to reduce the complexity of those programs
so that they will be readily understandable to bene-
ficiaries and the public, and
2
(7) to improve the administration of those
programs and the organization of agencies responsible
for their implementation so that they are carried
out efficiently and effectively.
(b) It is the purpose of this Act to provide for
the carrying out of the policies set forth in subsection
(a), consistent with the fundamental purposes of the
income assistance programs of the Federal Government.
The Congress declares that this purpose can be achieved
effectively by proceeding under this Act.
INCOME ASSISTANCE SIMPLIFICATION
SEC. 3 (a) The President shall from time to time
examine the operation of the provisions of law governing,
and the organization of the agencies responsible for
administering -
(1) the program of aid to families with dependent
children authorized by Title IV-A of the Social
Security Act,
(2) the work incentive program authorized by
Title IV-C of the Social Security Act,
(3) the program of supplemental security income
for the aged, blind, and disabled authorized by
Title XVI of the Social Security Act,
(4) the food stamp program authorized by the
Food Stamp Act of 1964,
BERRED FORD
3
(5) the housing programs authorized by the
United States Housing Act of 1937,
(6) the program of rental and cooperative housing
for lower income fiamilies authorized by section
236 of the National Housing Act,
(7) the program of financial assistance to
enable certain private housing to be available for
lower income families who are elderly, handicapped,
displaced, victims of a natural disaster, or occupants
of substandard housing, authorized by section 101
of the Housing and Urban Development Act of 1965,
and
(8) the program of rural rental assistance
authorized by section 521 (a) (2) of the Housing Act
of 1949,
and shall determine what changes are necessary in the
operation of such programs, the provisions of law governing
such programs, or the organization of the agencies responsible
for administering such programs, to carry out any of
the policies set forth in section 2(a).
(b) Whenever the President, after examination,
finds that such changes are necessary to carry out any
of the policies set forth in section 2(a), he shall prepare
an Income Assistance Program Modification specifying
GERALD FORD
4
the changes he finds are necessary. Except as provided
in subsection (c), a Modification may -
(1) modify the eligibility requirements for
a program enumerated in subsection (a),
(2) modify the benefits provided under a program
enumerated in subsection (a), including the level
of benefits or the determination of benefit amounts,
(3) modify the administration of a program
enumerated in subsection (a), including the terms
and conditions of participation by States and localities
in that program, or
(4) modify the organization of: agencies adminis-
tering the programs enumerated in subsection (a),
including transfer and consolidation of organizations
and functions within and between such existing agencies.
(c) Notwithstanding the provisions of subsection
(b) , no Modification may --
(1) terminate a program enumerated in subsection
(a) before the date it would have terminated if
the Modification had not been made, or
(2) extend a program enumerated in subsection
(a) beyond the date it would have terminated if
the Modification had not been made.
(b) A Modification prepared by the President may,
as he considers necessary ---
GENERA FORD
(1) provide for the transfer or other disposition
of records, property, and personnel affected by
such Modification, and
(2) provide for the transfer of such unexpended
balances of appropriations and of other funds available
for use in connection with a program, organization,
or function affected by such Modification.
EFFECTIVE DATE AND PUBLICATION
OF MODIFICATIONS
SEC. 4. (a) Any Modification prepared pursuant
to section 3 shall be published in the Federal Register
and public comment on it accepted for a period of at
least 30 days after publication. After the close of
the comment period, the President shall transmit the
Modification, with such changes as he determines appro-
priate on the basis of the comments received, to both
Houses of Congress on the same day and to each House
while it is in session. The Modification shall be accom--
panied by a declaration that, with respect to each change
included in the Modification, he has found that the change
is necessary to achieve a policy set forth in section
2 (a). .
(b) Except as provided in subsection (c), a Modifica-
tion shall be effective at the end of the first period
of 60 calendar days of continuous session of Congress
GERAHO FORD
6
after the date on which the Modification is transmitted
to it. For purposes of this subsection --
(1) continuity of session is broken only by
an adjournment of Congress sine die, and
(2) the days on which either House is not in
session because of an adjournment of more than 3
days to a day certain are excluded in the computation
of the 60 day period.
(c) A provision of a Modification may, under pro-
visions contained in the Modification, be effective at
a time later than the date on which the Modification
otherwise is effective.
(d) A Modification which is effective shall be
printed in (1) the Statutes at Large in the same volume
as the public laws, and (2) the Federal Register.
EFFECT ON OTHER LAWS AND
PENDING LEGAL PROCEEDINGS
SEC. 5. (a) A statute enacted, a regulation issued,
or other official action taken in respect to an agency
or function affected by a Modification under this Act
before the effective date of the Modification has, except
to the extent rescinded or modified by the Modification,
the same effect as if the Modification had not been made.
(b) If any provision of a Modification which becomes
effective under this Act is inconsistent with any pro-
vision of any statute enacted prior to the effective
BERALD FORD CLBRARY
7
date of the Modification, the provision of the Modification
shall control to the extent that such Modification specifies
the provision of the statute to be superseded.
(c) Any regulation issued or other action taken
with respect to any matter affected by a Modification
which becomes effective under this Act shall be deemed
to be modified to the extent of any inconsistency thereof
with the Modification but shall otherwise continue in
effect.
(a) No legal proceeding involving any officer in
his official capacity as an officer of any agency, functions
of which are transferred by this Act, shall abate by
reason of the enactment of this Act. Legal proceedings
may be asserted by or against the United States or such
official of the agency as may be appropriate and, in
any litigation pending when this Act takes effect, the
court may at any time, on its own motion or that of any
party, enter any order which will give effect to the
provisions of this section.
(e) If, before the date on which this Act takes
effect, any agency, or officer thereof in his official
capacity, is a party to a suit, and under this Act any
function of such agency or officer is transferred to
any other agency or official, then such suit shall be
continued, with the successor agency or official, as
FORD
GERALD
the case may be, substituted as if this Act had not been
enacted.
TERMINATION OF AUTHORITY
SEC. 6. A Modification may take effect only if
the Modification is transmitted to the Congress, pursuant
to section 4, prior to October 1, 1981.
1868917 GERALD FORD
SUMMARY OF THE
INCOME ASSISTANCE SIMPLIFICATION ACT
The Act would authorize the President to modify statutory-
provisions, revise program operations, and adjust agencies'
organizational arrangements in order to provide greater
efficiency and equity in major Federal income assistance
programs. The authority proposed in the Act is intended
to permit management and structural reform; it is not intended
to be used as a means of reducing budget outlays for income
assistance benefits, nor of achieving Federal assumption of
total responsibility for the welfare system,
Programs covered by the Act
The programs covered under the Act are those major national
means-tested income assistance programs of broad application:
- the program of Aid to Families with Dependent
Children (AFDC),
-- the Work Incentive Program (WIN),
--- the Supplemental Security Income Program (SSI),
- the food stamp program, and
-- public housing, section 8 rental assistance,
section 236 housing assistance, and the urban and
rural rent supplement programs,
Programs such as social security, unemployment insurance,
and other benefits earned by the recipient and not subject
to means tests would not be covered by the Act.
Purpose
Section 2 of the Act sets forth the policies to be carried
out with respect to Federal income assistance programs,
including ensuring that the operation of: those programs
is effective and equitable, that the relationships among
those programs are rational and equitable, that resources
are focused on the most needy, that those programs do not
deter individuals who are able to work from engaging in
productive employment, and that those programs are readily
understandable and are administered and organized efficiently
and effectively.
FORD
GERALD
2
The section states that it is the purpose of the Act to
provide for carrying out these policies consistent with
the fundamental purposes of the affected income assistance
programs, and declares that this purpose can be achieved
effectively by proceeding under the Act.
It is not intended to use the authority under the Act to
transform the essential character of any of the programs
covered under the Act; that is, the resources of the AFDC
program would continue to provide cash assistance only
to low-income needy families with dependent children; the
WIN program would continue to finance programs to help
AFDC applicants and recipients obtain employment; the SSI
program would provide cash assistance only to low-income
needy elderly, disabled, or blind persons; the food stamp
program would provide assistance to enable low-income needy
individuals and families to have an opportunity to purchase
nutritionally adequate food, and the specified housing
programs would provide assistance to low-income needy indi-
viduals and families only to obtain adequate housing.
Income Assistance Program Modifications
Section 3 (a) requires the President, from time to time,
to examine the operations and statutory provisions for
the programs covered under the Act, as well as the organiza-
tions of the agencies responsible for administering them,
and to determine what changes in such operations, statutory
provisions, and agency organizations are necessary to carry
out any of the policies set forth in the Act.
Under section 3 (b), whenever the President finds that changes
are needed to carry out any of the policies of the Act,
he would prepare an Income Assistance Program Modification
which could make changes in the eligibility requirements
and benefits under any of the enumerated programs. in the
administration of those programs, and in the organization
of agencies operating those programs. Only existing agencies
would be affected; no new agency could be created pursuant
to a Modification.
The Modification could be designed to correct such problems
as: the use of inconsistent asset tests in determining
eligibility of individuals and families for SSI, food stamps,
and public housing; complexities in the treatment of resources
of persons in a household who are not all eligible for
benefits; a lessening of work incentives for a recipient
of aid under two or more programs by an excessive reduction
of benefits because of additional earned income; and differences
among programs in definitions of "aged" and "households".
FORD
GERALD
3
Section 3 (c) provides that a Modification could not terminate
any of the specified programs before their statutory termina-
tion dates, or extend such programs beyond their termination
dates.
Section 3 (d) provides that a Modification may, as the President
considers necessary, provide for the transfer of records,
property, personnel, unexpended balances of appropriations,
and other funds that are affected by a Modification.
Effective Date and Publication of Modifications
Section 4 of the Act provides that any Modification prepared
pursuant to the authority under the Act must be published
in the Federal Register and public comment on it accepted
for a period of at least 30 days after publication. It
is intended that during this period there would be consulta-
tions with appropriate congressional committees and with
officials of State and local governments on the changes
being proposed.
After the close of the comment period, the Modification
would be transmitted to the Congress by the President,
while both Houses are in session, with appropriate changes
based on the comments received. The Modification would
have to be accompanied by a declaration that each change
included in the Modification has been found by the President
to be necessary to achieve a policy set forth in the Act.
A Modification prepared under the Act would become effective
at the end of the first period of 60 calendar days of contin-
uous session of the Congress after the date on which the
Modification is transmitted to it, unless legislation to
the contrary were enacted into law.
Effect on Other Laws and Pending Legal Proceedings
Section 5 provides that:
- affected statutes and regulations will continue
in effect except to the extent changed by a Modification.
-- any provision of a Modification which becomes effective
will supersede any inconsistent provision of law, and any
regulation or other action affected by a Modification will
be deemed to be modified to eliminate any inconsistency.
- no pending legal proceeding would abate by reason
of a transfer of functions from one agency to another pursuant
to a Modification.
GERALD FORD LIBRA,
4
Termination of Authority
Section 6 provides that the President may transmit Modifi
cations to the Congress prior to October 1, 1981. It is
intended that during this period, the authority provided
would be carefully assessed and possible changes in it
studied.
FDRD 06 ALIBRARY