greater emphasis is to be placed on helping applicants and recipients to self-support, self-care and for strengthening family life.

The bill would provide $5 million for the fiscal year 1958 and such amounts thereafter as the Congress may determine to be needed for grants to States for the training of personnel through fellowships or traineeships, grants to public or other nonprofit institutions of higher learning and short-term courses of study or similar off-the-job training. An allotment would be made to each State on the basis of (1) population, (2) relative need for trained public welfare personnel, and (3) financial need.

The Federal Government would pay 100 percent of the cost of such training within the limits of the appropriation until June 30, 1967. After that date the Federal share would be 80 percent and the State's share 20 percent.

This provision would help States materially in securing larger numbers of well-trained personnel as is being done in other programs for which Federal funds have been made available for the training of professional staff, such as in mental health, vocational rehabilitation, and child welfare programs.

EXTENSION OF THE PUBLIC ASSISTANCE MATCHING FORMULAS

The formulas for Federal matching of public-assistance payments are scheduled to revert to the pre-1952 levels on September 30, 1956. Until old-age and survivors insurance benefits are more generally received under the extensions of coverage made by the 1954 amendments, the number of aged persons needing assistance payments will remain high, particularly in rural States. Decreases in payments to recipients of old-age assistance, aid to the blind, aid to dependent children, and aid to the permanently and totally disabled would be likely in a substantial number of States if the Federal share of assistance payments is reduced. To avoid this the bill would extend the present formulas to June 30, 1959. This will permit time in which to study and determine what should be the appropriate share of public-assistance costs that should be borne by the Federal Government on a long-range basis. By that time the extensions of coverage under old-age and survivors insurance, particularly those affecting employment in agriculture, should be having more effect. Termination at the end of a fiscal year should facilitate both State and Federal fiscal planning.

SECTION-BY-SECTION ANALYSIS

The first section of the bill contains a short title, "Social Security Amendments of 1956." The remainder of the bill is divided into four titles: Title I, which amends title II (old age and survivors insurance) of the Social Security Act to reduce the eligibility age for certain widows to 62, to provide disabled child's insurance benefits for children over 18 who were disabled before they reached that age, to extend coverage and to make certain other miscellaneous amendments, including an amendment to preserve the relationship between old-age and survivors insurance and the railroad retirement programs; title II, which amends the provisions of the Internal Revenue Code of 1954 relating to old-age and survivors insurance coverage; title III, which amends the public assistance provisions of the Social Security Act to

provide separate matching for medical care expenditures, to encourage services to aid in self-support or self-care for the blind and disabled and in strengthening family life for children; and title IV, containing certain miscellaneous provisions.

TITLE I-AMENDMENTS TO TITLE II OF THE SOCIAL SECURITY ACT

CHILD'S INSURANCE BENEFITS FOR CHILDREN WHO ARE DISABLED BEFORE ATTAINING AGE EIGHTEEN

Child's benefits for disabled children age 18 or over

Section 101 (a) of the bill amends section 202 (d) (1) of the Social Security Act (relating to child's insurance benefits) to provide that child's insurance benefits would be paid to an unmarried child who is age 18 or over if at the time of filing application he is under a disability (as defined in section 223) which began before he attained age 18, and if he was dependent upon the individual on whose earnings record his claim is based at the time his application for benefits is filed or at the time of such individual's death. The child's benefits would continue until the child dies, marries, is adopted (unless by certain relatives after the worker's death) or is no longer under disability.

In the bill as passed by the House, benefits to disabled children who had attained age 18 would be payable only to children already entitled to or eligible for child's insurance benefits prior to attainment of age 18. Furthermore, the House bill would bave provided such benefits only to children who attained age 18 after 1953. Dependency of disabled child

Section 101 (b) (1) of the bill amends section 202 (d) of the Social Security Act by restricting application of the dependency provisions described in paragraphs (3), (4), and (5) of that section to a child who has not attained age 18.

Section 101 (b) (2) amends section 202 (d) of the Social Security Act by adding a provisions that a child who has attainted age 18 and who is under a disability which began before he attained age 18 would be deemed dependent upon his natural or adopting father or mother, or his stepfather or stepmother, if the child was, or would have been, upon filing an application, entitled to a child's insurance benefit on the earnings record of such parent for the month before he attained age 18, or if he was receiving at least half his support from the worker when the child applied for benefits or when the worker died.

Effect on parent's benefits

Section 101 (c) of the bill amends section 202 (h) (1) of the Social Security Act to provide that the existence of an unmarried child aged 18 or over who is under a disability which began before he reached age 18 and who is deemed dependent on the insured individual under the new subsection (d) (6) would preclude the payment of parent's benefits on the basis of the same worker's earnings record. (As provided in section 101 (i) (3) of the bill, this amendment would apply only to cases where the insured individual dies after August 1956.)

Maximum family benefits

Section 101 (d) of the bill (the same as sec. 101 (b) of the House bill) amends section 203 (a) of the act, which sets forth the maximum limitations on benefits payable on the basis of the earnings record of an individual, to provide that such limitations shall be applied after any deductions that may be made for refusal to accept rehabilitation services under section 222 (b) of the act (added by sec. 103 (b) of the House bill and sec. 101 (h) (2) of the committee bill) and after any reductions made on account of disability payments under other programs specified in section 224 of the act (added by sec. 101 (h) (1) of the committee bill), as well as after deductions made under existing law.

Deductions from benefits

Section 101 (e) of the bill (the same, except for a drafting change, as sec. 101 (c) of the House bill) amends section 203 (b) of the Social Security Act, which relates to deductions from benefits because of the occurrence of certain events. Under the amendment, if deductions are made from a child's insurance benefit payable to a disabled child over 18 years of age for any month under the provisions of section 222 (b) of the Social Security Act (added by sec. 101 (h) (2) of the bill) because of refusal to accept rehabilitation services, deductions would also be made from the insurance benefit payable to his mother for that month, if such child is the only child beneficiary in her care. Since the child's insurance benefits are payable for any month beginning with the month in which a child attains age 18 only if the child is unable by reason of disability to engage in any substantial gainful activity, the earnings test provisions in section 203 (b) of the Social Security Act are (under the amendment made by subsec. (e)) specifically made inapplicable to such benefits.

Occurrence of more than one deduction event

Section 203 (d) of the Social Security Act provides that if more than one event occurs in any month that would occasion deductions equal to a benefit for that month, only an amount equal to such benefit shall be deducted. Section 101 (f) of the bill (101 (d) of the House bill) amends this section to make it applicable also to deductions on account of refusal to accept rehabilitation services.

Extent of deductions from family benefits

Section 203 (h) of the Social Security Act provides that deductions will be made from an individual's benefits only to the extent that those deductions would reduce the total amount of benefits which would otherwise be paid on the basis of the same earnings record to him and other beneficiaries in the same household. Section 101 (g) of the bill (101 (e) of the House bill) amends this section to make it applicable also to deductions under section 222 (b) for refusal to accept rehabilitation services and to reductions under section 224 for payments under other programs (specified therein) on account of physical or mental impairment.

Definition of disability for purposes of child's insurance benefits

Section 101 (h) (1) of the bill adds to the Social Security Act new sections 223, 224, and 225. Section 223 defines disability for the purpose of a disabled child's insurance benefit as inability to engage in any substantial gainful activity by reason of any medically determinable

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physical or mental impairment which can be expected to result in death or to be of long-continued and indefinite duration. This definition is the same as the definition of disability for freeze purposes except that for the disabled child, blindness (as defined in sec. 216 (i) (1) (B)) does not by itself constitute disability. It would be treated the same as any other physical or mental impairment. An individual would not be considered to be under a disability unless he furnishes such proof as may be required.

This section is the same as section 223 (c) (2) contained in section 103 (a) of the House bill.

Reduction of benefits based on disability

The new section 224 of the Social Security Act (added by sec. 101 (h) (1) of the bill) contains provisions relating to reduction of child's insurance benefits for a disabled child age 18 or over, and also of wife's or mother's insurance benefits, where another Federal disability benefit or a State workmen's compensation benefit is payable to the child. It is substantially the same as the section which the House bill would add, except, of course, for differences due to the omission of disability insurance benefits. Subsection (a) of the new section 224 provides for reduction of a disabled child's insurance benefit for any month if it is determined by any other agency of the United States that another periodic benefit based wholly or in part on the child's disability is payable for such month under any other law of the United States or under a system established by such agency, or it is determined that a periodic benefit based wholly or in part on the child's disability is payable under a workmen's compensation law or plan of a State. If such a periodic benefit is payable for any month in which an individual is entitled to a disabled child's benefit, then for such month the child's insurance benefit will be reduced by an amount equal to such periodic benefit payable for such month (but not below zero).

If the periodic benefit or benefits exceed the child's insurance benefit, the amount of monthly benefits payable to an individual under section 202 (b) (wife's insurance benefits) or 202 (g) (mother's insurance benefits) would be reduced by the amount of the excess (but also not below zero), but only if such individual would not be entitled to such monthly benefits if she did not have the disabled child in her care (in the case of a wife, individually or jointly with her jusband). Thus, if the only child in the care of the wife or mother is entitled to child's insurance benefits on the basis of disability, the excess of the other periodic benefit over the child's insurance benefit will reduce such wife's or mother's insurance benefit. If the wife or mother has another child in her care who is entitled to child's insurance benefits and to whom the provisions for reductions are not applicable, such excess would not reduce such wife's or mother's insurance benefits.

Subsection (b) of section 224 provides that if the periodic benefit payable under another program is payable on other than a monthly basis (not including a benefit payable in a lump sum unless it is a commutation of, or a substitute for, periodic payments), the reduction shall be made at such times and in such amounts as the Secretary of Health, Education, and Welfare finds will approximate, as nearly as practicable, the reduction provided for in subsection (a).

Subsection (c) of section 224 provides that the Secretary may, as a condition to certification for payment of any monthly benefits under

title II of the Social Security Act, require adequate assurance of reimbursement to the Federal old-age and survivors insurance trust. fund if it appears likely that the beneficiary may be eligible for a periodic benefit that would give rise to a reduction under subsection (a).

Subsection (d) of section 224 requires any agency of the United States to certify to the Secretary, at his request, the information necessary to carry out his functions under section 224 (a).

Subsection (e) of section 224 defines "agency of the United States" for purposes of this section to mean any department or other agency of the United States or any instrumentality which is wholly owned by the United States.

Suspension of benefits based on disability

The new section 225 of the Social Security Act added by section 101 (h) (1) of the bill (the same as sec. 103 (a) of the House bill, except for differences due to omission of disability insurance benefits) authorizes the Secretary to suspend payment of benefits to which a disabled individual (age 18 or over) is entitled under section 202 (d) (child's insurance benefits) when he believes that such individual's disability may have ceased to exist. The suspensions so made would be in the nature of temporary withholdings of monthly benefits pending a determination of whether the disability has ceased or until the Secretary believes the disability has not ceased. In the case of any individual whose disability is subject to determination under an agreement with a State under section 221 (b), the Secretary must promptly notify the State of the Suspension and request a prompt determination of whether such individual's disability has ceased. Rehabilitation services

Subsection (h) (2) of section 101 of the bill (the same as section 103 (b) of the House bill except for differences due to omission of disability insurance benefits) amends section 222 of the Social Security Act (containing a statement of policy regarding referral of disabled individuals for vocational rehabilitation services to the State agency or agencies administering or supervising the administration of the State plan approved under the Vocational Rehabilitation Act) to make it apply to disabled individuals entitled to child's insurance benefits as well as to disabled individuals who file application for determination of disability (for purposes of the "disability freeze"). Subsection (h) (2) of section 101 of the bill also adds a new subsection (b) to section 222 of the Social Security Act to provide that deductions are to be made from a child's insurance benefit (in the case of a disabled child beneficiary age 18 or over) for any month in which the individual refuses, without good cause, to accept rehabilitation services available to him under a State plan approved under the Vocational Rehabilitation Act.

Any individual who is a member or adherent of any recognized church or religious sect which teaches its members or adherents to rely solely upon prayer or spiritual means for the treatment of any physical or mental impairment, and who solely because of his adherence to such teachings refuses such available vocational rehabilitation services, would be deemed to have good cause for refusing such services.