|
THE Social Security Act Amendments of 1950
became law on August 28, 1950, when President Truman affixed his
signature to H. R. 6000. The new social security bill became Public
Law 734 (81st Congress, second session).
In signing the bill, President Truman stated
that "passage of this legislation is an outstanding achievement."
He pointed out that "by making it possible for most families
obtain protection through the contributory insurance system, and
by increasing insurance benefits, the Act will ultimately reduce
dependence on public charity. This measure demonstrates our determination
to achieve real economic security for the American family. This
kind of progressive, forward-looking legislation is the best possible
way to prove that our democratic institutions can provide both freedom
and security for all our citizens.
"We still have much to do before our
social security programs are fully adequate. While the new Act greatly
increases coverage, many more people still need to be brought into
the old-age and survivors insurance system. Expanded coverage and
increased benefits in old age insurance should now be matched by
steps to strengthen our unemployment insurance system. At the same
time, we urgently need a system of insurance against loss of wages
through temporary or permanent disability. These and other vital
improvements in our social security laws are needed in addition
to the Act which I have signed today. I shall continue to urge action
on this unfinished business and I know that the Committees of Congress
are now preparing to give these matters serious consideration."
The amendments provide the first significant
revision of the Social Security Act since the changes made by Congress
in 1939. There are four titles in the new law: I-Amendments to Title
II of the Social Security Act; II-Amendments to Internal Revenue
Code; III-Amendments to Public Assistance and Maternal and Child
Welfare Provisions of the Social Security Act; and IV-Miscellaneous
Provisions.
Summary of Chief Provisions
The major provisions of the new social security
law may be summarized briefly. They extend coverage and liberalize
the benefits of the Federal old-age and survivors insurance program,
broaden and liberalize Federal grants to the States for public assistance
and for maternal and child health and child welfare services, and
restrict the authority of the Secretary of Labor in connection with
State unemployment insurance laws.
Old-Age and Survivors Insurance
The new law makes three important changes
in the Federal old-age and survivors insurance program. First, coverage
is extended to approximately 10 million additional persons, including
the non-farm self-employed other than doctors, lawyers, engineers,
and members of certain other professional groups. Regularly employed
domestic and farm workers, a small number of Federal employees who
are not covered under the civil service retirement program, and
a few others--members of very small occupational groups--are also
included; and workers in Puerto Rico and the Virgin Islands are
covered. In addition to the automatic coverage extended to these
groups, the opportunity to be included is extended to the 1.5 million
people who work for State and local governments and are not under
retirement systems and to about 600,000 employees of nonprofit organizations.
Table I presents estimates of the number of persons in the newly
covered groups.
The second major change substantially liberalizes
the amount of benefits payable to individuals. Table 2 gives estimates
of the average payments under the old law and the new law, while
table 3 shows illustrative monthly benefits under the new law. For
a retired worker the average benefit is increased from around $26
a month to $46 for persons who are on the rolls now and to around
$50-55 a month for those who retire after the new law takes full
effect. This increase means that, for a man and wife who are both
aged 65, average benefits will be around $75-80 a month.
The new law also increases insurance benefits
for widows and orphans. The average monthly benefit for a widow
and two children will be increased immediately from about $50 a
month to $90-95 and to $100-105 a month when death occurs after
the new law takes full effect. The face value of life insurance
in force under the law will be increased from about $85 billion
under the old law to $190 billion immediately, which is almost as
much as the face value of the life Insurance in effect at the present
time in all the life insurance companies in the United States. When
the new law becomes fully effective, in about 2 years, the face
value of life insurance will be about $250 billion.
The third group of major changes provides
for payment of benefits in cases in which no benefits were payable
previously. Benefits will now be paid to dependent husbands and
dependent widowers, to children of insured women under certain circumstances,
and with respect to an individual who could not have met the insured
status requirement under the old law but is insured under the more
liberal requirements in the new law (table 4). Lump-sum death payments
will be made, moreover, in the case of all insured deaths. Eligible
beneficiaries may earn as much as $50 a month in covered employment
and will receive benefits (as against a maximum on earnings of $14.99
under previous law); moreover, for those aged 75 or over there is
now no withholding of benefits because of work in covered employment.
 |
Table
1- Old-age and survivors insurance: Extension of coverage under
the 1950 amendments
(Number in an average week) |
| Category |
Number Covered |
| Total |
9,800,000 |
Compulsory coverage,
total
Nonfarm self-employed
Agricultural workers
Borderline employment
Regularly employed on farms
Domestic workers
Federal civilian employees not under a retirement system
Employees outside the United States
Employment in Puerto Rico and Virgin Islands
New definition of "employee" |
7,750,000
4,700,000
850,000
200,000
650,000
1,000,000
250,000
150,000
400,000
400,000 |
Voluntary coverage, total
Employees of nonprofit organizations
Employees of State and local governments |
2,050,000
600,000
{1} 1,450,000 |
| {1} Excludes
a relatively small number of transit workers who will be compulsorily
covered. |
Public Assistance
Public Law 734 makes four significant changes
in the public assistance provisions of the Social Security Act.
Perhaps the most important is the addition to the Federal
grants-in-aid program of a new category of federal grants-in-aid
to the States for needy individuals who are permanently and totally
disabled.
Another important change remedies a basic
defect in the aid to dependent children program. Before, there was
no provision for the need of the parent or other relative with whom
the child was living. The new legislation includes the relative
with whom the dependent child is living as a recipient for Federal
matching purposes.
Third, the Federal Government will match
expenditures for assistance to aged and blind persons in certain
types of public medical institutions. Under the old law no expenditures
made to persons in public institutions were matchable. Further,
if the State plan includes provision for payments to persons in
any private or public institution, the State must establish or designate
some State agency that will be responsible for establishing and
maintaining standards for such institutions. This requirement will
raise the standards of those institutions that have been understaffed
and underfinanced, that have been firetraps, and in which people
have been badly treated.
Fourth, Federal matching funds will be available
for direct payments made by
the States to doctors, hospitals, or other persons furnishing medical
care. Under previous law the Federal Government did not participate
in the cost of medical care unless payment for such care was made
directly to the assistance recipient. This new provision will make
it possible to develop working relations with the medical profession,
hospitals, public health officials, and other groups to improve
the quality and quantity of medical care for the 5 million persons
receiving assistance under the Social Security Act.
Maternal and Child Health and
Child Welfare Services
Another major provision in the amendments
authorizes increases in Federal grants for maternal and child health
services, child welfare services, and services for crippled children.
A total of $22 million had been authorized for grants to the States
for the maternal and child health, child welfare, and crippled children
programs under title V of the Social Security Act. This total is
increased to $37 million for the fiscal year ending June 30, 1951,
and to $41.5 million for each year there after.
Costs
The estimated level-premium costs of the
new insurance program are shown in table 5. As will be seen from
the table, the level-premium cost under the old law--taking into
account 2-percent interest--is 4.50 percent of payroll. This amount
is considerably lower than the cost estimated when the program was
revised in 1939, largely because of the rise in the wage level during
the past decade (higher wages result in lower cost as a percentage
of payroll because of the weighted nature of the benefit formula).
Under the new law the level-premium cost
of the benefits is increased to 6.10 percent of payroll. This figure
must be adjusted slightly, however, for two factors--the administrative
costs, which are charged directly to the trust fund, and the interest
earnings on the present trust fund, which will be about $13.5 billion
at the end of 1950. When these elements are considered the net level-premium
cost of the amended law is shown to be 6.05 percent of payroll.
The additional Federal costs for the public
assistance and maternal and child health and child welfare amendments
are estimated at $177-220 million a year, as shown in table 6, which
also notes the assumptions on which the estimates are based. These
estimates may be high, because they do not consider the possible
effect on the assistance programs of the old-age and survivors insurance
amendments, which increase benefit amounts and make more persons
eligible immediately for insurance benefits; as a result, some persons
may be able to leave the assistance rolls and others may have their
assistance payments lowered. On the other hand, should assistance
rolls and the amount of the average assistance payments continue
to increase as they have in the
| Table
2- Old-age and survivors insurance: Average monthly benefit
payments and average lump-sum death payments in June 1950 and
under the 1950 amendments |
|
Type of benefit
|
Average Benefit,
June 1950
|
Estimated Average
Benefit Under the 1950 Amendments
|
|
1951
|
1960
|
2000
|
Old-age (primary)
Male
Female
Wife's {1}
Widow's {1}
Parent's
Child's
Mother's (widow's current)
Lump-sum death payment |
$26
27
21
14
21
14
13
21
168 |
$45-46
47-47
37-37
24-25
35-36
35-36
33-34
40-40
143-146 |
50-50
53-53
38-38
27-27
39-39
38-38
35-36
43-44
156-159 |
$49-50
57-58
36-38
29-30
44-45
42-43
36-37
45-46
149-156 |
{1} Also
represents husband's and widower's benefits
(2) Average amount per deceased worker. |
Legislative History
Action in the House of Representatives
Under the Constitution, all revenue bills
must originate in the House of Representatives. Since social security
legislation involves taxes, it must be first introduced in the House.
For this reason, on February 21, 1949, President Truman transmitted
his recommendations and drafts of two bills to Mr. Doughton, Chairman
of the House Committee on Ways and Means. The two bills were introduced
in the House by Mr. Doughton and became the basis of Committee consideration.
H. R. 2892 dealt with public assistance and child welfare services,
and H. R. 2893 dealt with Federal old-age, survivors, and temporary
and permanent total disability insurance.
After extended hearings the House Committee
on Ways and Means on August 22, 1949, reported out a single bill,
H. R. 6000, covering insurance, assistance, and child welfare services.
The vote in the Committee was 23 to 2 for reporting out the bill.
On October 3, 1949, Mr. Kean, a member of the Committee, introduced
H. R. 6297, which carried out the minority views on H. R. 6000.
H. R. 6000 was considered in the House under
a closed rule prohibiting any amendments from the floor except one
motion to recommit the bill to the Ways and Means Committee. On
October 5, 1949, H. R. 6297 was offered on the floor of the House
of Representatives as a substitute for H. R. 6000 but was defeated
by a vote of 232 to 112. Then, on the same date, H. R. 6000 was
passed in the House by a vote of 333 to 14.
| Table
3.-Old-age and survivors insurance: Illustrative monthly benefits
under the 1950 amendments |
| Family classification |
Monthly benefit by specified
amount of average monthly wage |
| $50 |
$100 |
$150 |
$200 |
$250 |
$300 |
Retired worker families:
Worker only
Worker and wife, aged 65 or over
Worker and 1 child
Worker and 2 children
Worker, wife, and 1 child
Worker and dependent husband, aged 65 or over
Worker, dependent aged husband, and 1 child |
25
38
38
40
40
38
40 |
50
75
75
80
80
75
80 |
58
86
86
115
115
86
115 |
65
98
98
130
130
98
130 |
72
109
109
145
145
109
145 |
80
120
120
150
150
120
150 |
Survivor families:
Widowed mother and 1 child
Widowed mother and 2 children
Widowed mother and 3 or more children
1 child only
2 children
Widow only, aged 65 or over
Dependent widower, aged 65 or over
1 aged dependent parent
2 aged dependent parents |
38
40
40
19
31
19
19
19
38 |
75
80
80
38
62
38
38
38
75 |
86
115
120
43
72
43
43
43
86 |
98
130
150
49
81
49
49
49
98 |
109
145
150
54
91
54
54
54
109 |
120
150
150
60
100
60
60
60
120 |
Action in the Senate
Since Congress adjourned shortly after the
House action, it was not possible for the Senate to consider H.
R. 6000 before 1950.
The Senate Finance Committee held extended
hearings on social security and adopted a number of important amendments
to H. R. 6000. The bill was reported to the Senate on May 17, 1950,
and debate began on June 12.
There were 28 amendments offered from the
floor of the Senate. Twelve were adopted, 15 were rejected, and
one was eliminated on a point of order. Action on the most important
of those adopted was as follows:
1. The increase in the maximum taxable wage
base to $3,600, passed by the House but eliminated by the Senate
Finance Committee, was restored.
2. The definition of "employee"
was expanded slightly to include certain wholesale salesmen and
agent-drivers.
3. Self-employed funeral directors and accountants
were excluded from coverage.
4. Compulsory coverage was extended to employees
of transit systems taken over, in whole or in part, from private
ownership by State or local governments after 1936.
5. The provision, included in the House but
eliminated by the Finance Committee, for Federal matching of payments
under the aid to dependent children program to the mother or other
adult relative caring for dependent children, was restored.
6. A provision was added to limit the authority
of the Secretary of Labor in determining whether a State conforms
to the Federal requirements in the Internal Revenue Code and the
Social Security Act relating to unemployment insurance.
All the amendments adopted except the one
relating to unemployment insurance were approved by the Finance
Committee.
There were record votes on three amendments.
An amendment by Senator Myers to increase to $4,200 the maximum
wage base in Federal old-age and survivors insurance was defeated,
36 to 45. An amendment offered by Senator Long to provide Federal
grants to the States for needy disabled persons was also defeated,
41 to 42. The amendment offered by Senator Knowland to require State
court review in State unemployment insurance was adopted, 45 to
37.
The Senate passed H. R. 6000 on June 20 by
a vote of 81 to 2. The Senate also passed a resolution, recommended
by the Committee on Finance, for further study of the Social Security
program by the Committee or "any duly authorized
subcommittee thereof." The Committee is to determine the scope
of the study, which is to include (but is not limited to) certain
specified points. The first of these points is "the type of
social security programs which are most consistent with the needs
of the people of the United States and with our economic system,
including study and investigation of proposed programs for a pay-as-you-go
universal coverage system and the problems of transition to such
a system." The other points listed for study are extension
of coverage to farm operators and farm workers still outside the
coverage of old-age and survivors insurance, the financing of the
program, increased work opportunities for the aged, relationship
of the program to private pension plans, and relationship to the
care and rehabilitation of and income maintenance for disabled workers.
The Committee is authorized to employ a technical and clerical staff
and appoint advisors.
| Table
4- Old-age and survivors insurance: Illustrative numbers of
quarters of coverage required under the 1950 amendments for
fully insured status |
Year of attaining
age 65 {1} |
Quarters of coverage
required {2} |
Year of attaining
age 65 {1} |
Quarters of coverage
required {2} |
1954 or earlier
1955
1956
1957
1958
1959
1960
1961
1962 |
6
8
10
12
14
16
18
20
22 |
1963
1964
1965
1966
1967
1968
1969
1970
1971 and after |
24
26
28
30
32
34
36
38
40 |
{1} Applicable
to persons attaining age 65 in first half of year. For those
attaining age 65 in the second half of any of the years 1954-70,
1 more quarter of coverage is required.
{2} Quarters may be those obtained at any time after 1936. |
Action of the Conference Committee
The conferees of the House were Representatives
Doughton, Mills, Champ, Lynch, Reed, Woodruff, and Jennkins. The
conferees of the Senate were Senators George, Connally, Byrd, Millikin,
and Taft. Senator George acted as chairman. The Conference Report
was submitted to the House on August 1, 1950. Mr. Lynch did not
sign the Conference Report because of his opposition to the Knowland
amendment and to the deletion of the Division for permanent and
total disability insurance.
Action on the major points of difference
between the House and Senate bills that the Conference Committee
had to reconcile is summarized below. Chart 2 gives a detailed description
of the old-age and survivors insurance, public assistance, and maternal
and child health and child welfare Divisions of the old law, the
bill passed by the House and as passed by the Senate, and the final
law.
Old-age and survivors insurance.-
Seventeen of the major differences between
the House and the Senate versions of the bill concerned the insurance
program. The final decisions on these points were as follows:
1. Elimination of the House provision for
permanent and total disability insurance.
2. Elimination of the House provision for
increment in the benefits for years of coverage under the program.
3. Elimination of the House provision specifically
including tips in covered wages.
| Table
5.-Old-age and survivors insurance: Estimated level-premium
costs as percent of payroll by specified change in law {1} |
| Item |
Level-premium cost (percent) |
| Cost of benefits under old
law |
4.50 |
Effect of changes:
Benefit formula
New benefit percentages {2}
New average monthly wage basis
Reduction In increment
Increase in wage base
Liberalized eligibility conditions
Liberalized work clause
Revised lump-sum death payment
Additional dependents' benefits {3}
Extension of coverage
Cost of benefits under amendments
Administrative costs
Interest on trust fund at end of 1930
Net level-premium cost under amendments |
+1.60
+3.75
+.05
-2.00
-.20
+.10
+.15
-.05
+.15
-.35
6.10
+.15
-.20
6.05 |
{1} Figures
relate only to benefit payments after 1950 and represent an
intermediate estimate that is subject to a significant range
because of the possible variation in the cost factors involved
in the future. Computations are based on a compound interest
rate of 2 percent per annum. The order in which these various
changes are considered in this table affects the amount of the
increase in cost to be attributed to a specific element.
{2} Includes effect of minimum and maximum benefit provisions.
{3} Includes higher rate for the first survivor child and for
parents, more liberal eligibility conditions for determining
child dependency on married women workers, wife's benefits for
wives under age 65 with children, and husband's and widower's
benefits. |
4. Coverage of some salesmen, some homeworkers,
certain kinds of agent drivers, and certain other groups as employees.
(Compromise between Senate and House.)
5. Exclusion of State and local government
employees covered under retirement plans (coverage under voluntary
agreement had been provided in the House version for all State and
local employees).
6. Exclusion of certified, registered, and
licensed public accountants, full-time practicing public accountants,
naturopaths, architects, funeral directors, and all professional
engineers from coverage as self-employed persons. (Senate provision.)
7. Inclusion of regularly employed agricultural
labor. (Substantially the same as Senate provision.)
8. Inclusion of publishers under coverage
as self-employed persons. (Senate provision.)
9. Inclusion on a compulsory basis of employees
of certain transit systems taken over in whole or in par
by State or local governments after 1936.
(Compromise between Senate and House.)
10. Provision for voluntary coverage of employees
of nonprofit organizations through an election by the
employer and a statement that two thirds
of the employees desire coverage. (Compromise between Senate
and House.)
11. Increase in the second step in the benefit
formula from 10 percent to 15 percent. (Senate provision.)
12. A substantial increase-77.5 percent in
the average benefit for current beneficiaries. (Midway between Senate
and House provision.)
13. Liberalization of the eligibility provisions
to make it easier for persons to become insured for benefits during
the next two decades. (Senate provision.)
14, Liberalization of the method of computing
the "average monthly wage" for benefit purposes. (Senate
provision.)
15. Payment of benefits to dependent husbands
and widowers of insured women workers. (Senate provision.)
16. Liberalization of survivors insurance
benefits with respect to deaths of insured married women. (Senate
provision.)
17. Lump-sum death payment to be made for
all deaths of insured persons. (House provision.)
Public assistance.-
On the eight chief points of difference in
the assistance program, the decisions were:
1. Elimination of the House provision that
would have increased assistance payments by providing a higher percentage
of Federal funds under a formula weighted in favor of States making
low payments.
2. Acceptance with amendments of the House
provision for Federal grants to the States for the needy permanently
and totally disabled.
3. Acceptance with amendments of the House
provision extending Federal grants for public assistance to Puerto
Rico and the Virgin Islands.
4. Elimination of the Senate provision for
Federal matching of State supplementary old-age assistance payments
on a 50-50 basis for persons who become insurance beneficiaries
after the effective date of the bill.
5. Elimination of the Senate provision increasing
the maximum payments for aid to dependent children in which the
Federal Government would share from $27 to $30 a month for the first
child and from $18 to $20 for each additional child.
6. Acceptance of the Senate provision for
mandatory exemption of $50 of earned income for the blind, beginning
July 1952.
7. Acceptance of the Senate provision for
continuing the present maximum 5-year residence requirement for
aid to the blind instead of the House requirement of 1 year.
8. Extending to 1955 the provisions in the
House-approved bill for Federal grants to aid to the blind programs
in Pennsylvania, Missouri, and Nevada. (Compromise between Senate
and House.)
Other programs.-
The following decisions were made on four
major differences affecting other programs.
1. Increase in Federal grants for maternal
and child health services from $11 million to $16.5 million annually
(except that for the present fiscal year the grant is to be $15
million); for services for crippled children from $7.5 million to
$15 million (for the present fiscal year, $12 million) ; and for
child welfare services from $3.5 million to $10 million. (Compromise
between Senate and House.)
| Table
6.-Public assistance and maternal and child health and child
welfare: Estimates of additional annual Federal cost under the
1950 amendments {1} |
|
Amendment
|
Additional Federal
cost (in millions)
|
| Total |
$176.9-219.9 |
Aid to the disabled
Aid to dependent children
Medical care
Puerto Rico and Virgin Islands
Temporary provisions for the blind
Mandatory income exemption for blind
Maternal and child health and child welfare |
$60.0- 75.0
75.0- 95.0
15.0- 20.0
4.4- 4.4
3.0- 6.0
{2}
19.5- 19.5 |
{1} Based
on the assumption that all States participate on a full-year
basis. The public assistance estimates are based on the assumption
that the States will continue to spend as much as they spend
in September 1950.
{2} Less than $500,000. |
| Chart
1- Effective dates of major provisions under the 1950 amendments |
|
Provision
|
Date
|
| Old-age and survivors
insurance |
|
| First month for which increased
old-age and survivors insurance benefits are payable to present
beneficiaries. |
September 1950 |
| First day of coverage of
new groups |
January 1, 1951 |
| First month of benefits
for which new benefit formula is applicable |
April 1952 |
| First month for which benefits
are payable for persons insured tinder new law who were previously
uninsured. |
September 1950 |
| First month for which liberalized
retirement test is applicable |
September 1950 |
| First month for which dependent
husband's insurance benefits are payable |
September 1950 |
| First month for which dependent
widower's insurance benefits are payable |
September 1950 (for death
of wife after August 1950) |
| First month in which first
survivor child's and parent's benefit is increased from 50 percent
to 75 percent of primary amount. |
September 1950 |
| First month in which lump-sum
death payment is payable in all insured death cases |
September1950 (for death
after August 1950) |
| First month for which benefits
are payable to children of deceased currently insured women. |
September 1950 |
| First month for which benefits
are payable to wife of old-age beneficiary with child in her
care, regardless of wife's age. |
September 1950 |
| First month for which benefits
based on World War II wage credits are payable |
September 1950 |
| Public assistance |
|
| First month for which Federal
grants to States for needy disabled persons are payable |
October 1950 |
| First month for which Federal
grants are payable to States for payments to adult relative
caring for dependent child. |
October 1950 |
| First month for which Federal
Government will share direct payments for medical care |
October 1950 |
| First month for which Federal
Government will share in payments to persons in public medical
institutions. |
October 1950 |
| First month in which mandatory
exemption of earned income for blind is effective |
July 1952 |
| First month in which requirement
that State plan must provide for use of optometrists or physicians
skilled in diseases of eye in examination of the blind is effective. |
July 1951 |
| First month for which Federal
grants may be made to Puerto Rico :ind the Virgin Islands. |
October 1950 |
2. Amendment of the child welfare program by adding the following
Senate provision: "Provided that in developing such services
for children the facilities and experience of voluntary agencies shall
be utilized in accordance with child care programs and arrangements
in the State and local communities as may be authorized by the State."
3. Continuation through 1952 of the loan
fund within the Federal unemployment account, which permits advances
to State unemployment insurance funds that run low. (Senate provision.)
4. Provision restricting the authority of
the Secretary of Labor to withhold grants to States for administration
of unemployment insurance in certain questions of compliance with
the Federal Unemployment Tax Act and title III of the Social Security
Act. (Senate provision.)
Adoption and Approval
During consideration of the Conference Report
in the House of Representatives, Representative Byrnes, a member
of the Ways and Means Committee, moved to recommit the Conference
Report to the Conference Committee. Mr. Byrnes indicated that his
motion to recommit was made in order "to try to close out any
attempt to remove the Knowland amendment from the Conference Report."
Mr. Lynch, also a member of the Ways and Means Committee, had indicated
previously that if he were recognized he would offer a motion to
recommit with instructions to the House conferees to strike out
the Knowland amendment and insert permanent total disability insurance.
Mr. Lynch did not have an opportunity, however, to present his recommittal
motion since Mr. Byrnes was recognized to make his motion to recommit.
On the parliamentary question of ordering the previous question
the vote was 188 to 186, which thus prevented Mr. Lynch from amending
Mr. Byrnes' recommittal motion. When this action had been taken,
Mr Byrnes' motion was rejected.
The Report was adopted in the House of Representatives
on August 16, 1950, by a vote of 374 to 1 and by the Senate the
following day without a roll-call vote. The bill received President
Truman's approval on August 28, 1950.
Basic Documents Relating to H. R. 6000
H. R. 2892, 81st Congress, First Session
(see House Hearings).
H. R. 2893, 81st Congress, First Session
(see House Hearings).
Hearings before the Committee on Ways and
Means, House of Representatives, 81st Congress, First Session, on
H. R. 2892 and H. R. 2893 (Parts 1 and 2).
H. R. 6000, 81st Congress, First Session,
as introduced on August 15, 1949, as reported out on August 22,
1949, and as passed by the House of Representatives on October 5,
1949.
Report of the Committee on Ways and Means
on H. R. 6000 (Report No. 300, 81st Cong., 1st sess.), August 22,
1949.
Actuarial Cost Estimates for Expanded Coverage
and Liberalized Benefits proposed for the Old-Age and Survivors
Insurance System by H. R. 6000, October 3, 1949 (House version),
June 26, 1950 (comparison of House and Senate versions), and July
27, 1950 (final law). Prepared by Robert J. Myers, Actuary to the
Committee on Ways and Means.
H. R. 6297, 81st Congress, First Session.
House debate on H. R. 6000, Congressional
Record, October 4 and 5, 1949 (Vol. 95, Nos. 184 and
185).
Hearings before a Subcommittee of the Committee
on Ways and Means, House of Representatives, 81st Congress, 1st
Session, on Extension of Social Security to Puerto Rico and the
Virgin Islands.
Report to the Committee on Ways and Means
from the Subcommittee on extension of Social Security to Puerto
Rico and the Virgin Islands, February 6, 1950.
Recommendations for Social Security Legislation,
the Reports of the Advisory Council on Social Security to the Senate
Committee on Finance, 949 (S. Doc. No. 208, 80th Cong., 2d Sess.).
Hearings before the Committee on Finance,
United States Senate, 81st Congress, 2d Session, on H. R. 6000 Parts
1, 2, and 3).
The Major Differences in the Present Social
Security Law, the Recommendations of the Advisory Council, , and
H. R. 6000 (as passed by the House), printed in Part 1 of the Senate
Hearings, pp. 2-18.
Report of the Senate Committee on Finance
on H. R. 6000 (Report No. 669, 81st Cong., 2d sess.), May 17, 1950.
H. R. 6000 (in the Senate of the United States),
81st Congress, 2d Session, as reported by the Senate Finance Committee.
Senate debate on H. R. 6000, Congressional
Record, June 12-20, 1950 (Vol. 96, Nos. 115-121).
Summary of Principal Changes in the Old-Age
and Survivors Insurance System Under H. R. 6000, According to Conference
Agreement. Prepared by Robert J. Myers, Actuary to the Committee
on Ways and Means, July 25, 1950.
Summary of Principal Changes in the Social
Security Act Under H. R. 6000 As Passed by the House of Representatives,
As Passed by the Senate, and According to Conference Agreement.
Prepared by Robert J. Myers, Actuary to the Committee on Ways and
Means, July 25, 1950.
Conference Report on H. R. 6000 (H. Rpt.
No. 2771, 81st Cong., 2d sess.), August 1, 1950.
House and Senate debate on Conference Report,
Congressional Record, August 16 and 17, 1950 (Vol. 96,
Nos. 162 and 163).
President's Statement, White House press
release, August 28, 1950.
|
Chronology
of Public Law No. 734 (H. R. 6000)
January 5, 1949-
President Truman recommends revision of social security
law in message on State of the Union.
February 21, 1949-
President Truman sends letter and draft bills to Mr. Doughton.
February 21,
1949- H. R. 2892 and H. R. 2893 are introduced
by Mr. Doughton.
February 28-April
27,1949- House Ways and Means Committee holds public
hearings on social security legislation.
May 2-August 19,
1949- House Ways and Means Committee holds executive
sessions.
August 15,1949-
H. R. 6000 is introduced by Mr. Doughton.
August 22,1949-
H. R. 6000 is reported out by House Ways and Means Committee.
September 29-October
3, 1949- House Rules Committee holds public hearings
on closed rule on H. R. 6000.
October 3, 1949-
H. R. 6297 is introduced by Mr. Kean.
October 4,
1949- House of Representatives passes closed rule
on H. R. 6000.
October 4,1949-
House begins debate on H. R. 6000.
October 5,
1949- H. R. 6297 is rejected as a substitute for
H. R. 6000 on a motion to recommit, 112-232.
October 5,
1949- H. R. 6000 is passed by House of Representatives,
333-14.
January 17-March
23, 1950- Senate Finance Committee holds public hearings
on H. R. 6000.
February 6, 1950-
Subcommittee on Puerto Rico and Virgin Islands of House
Ways and Means Committee files report recommending inclusion
of those Territories in the insurance and assistance programs.
April 3-May 17,
1950- Senate Finance Committee holds executive sessions
on H. R. 6000.
May 17, 1950-
Amended version of H. R. 6000 is reported out by Senate
Finance Committee.
June 12, 1950-
Senate begins debate on H. R. 6000.
June 20, 1950-
Senate passes H. R. 6000, 81-2.
July 17-August 1,
1950- Conference Committee holds executive sessions
on H. R. 6000.
August 1, 1950-
Conference Committee files report.
August 16, 1950-
House of Representatives approves Conference Report.
August 17, 1950-
Senate approves Conference Report.
August 28, 1950-
President Truman approves H. R. 6000. |
| Chart
2-1: Principal changes in the Social Security Act under the
1950 amendments--as passed by the House of Representatives,
as passed by the Senate, and as enacted |
|
Old law
|
H. R. 6000 as passed
by House
|
H. R. 6000 as passed
by Senate
|
New law
|
|
OLD-AGE AND SURVIVORS
INSURANCE
(1) Benefits payable to-
|
| (a) Insured worker, aged
65 or over. |
No change. |
No change. |
|
| (b) Wife, aged 65 or over,
of insured worker. |
No change in age requirement
other than that no age requirement if child under age 18 is
present. |
No change from existing
law, except benefits provided for dependent husbands aged 65
or over. |
|
| (c) Widow, aged 65 or over,
of insured worker. |
No change. |
No change, except benefits
provided for dependent widowers aged 65 or over. |
|
| (d) Children (under age
18) of retired worker, and children of deceased worker and their
mother regardless of her age. |
Certain dependency and relationship
requirements liberalized, especially with respect to dependency
on married insured women. |
Same as House bill, except
provisions as to dependency on married women further liberalized. |
|
| (e) Dependent parents, aged
65 or over, of deceased worker if no surviving spouse or child
could receive monthly benefits. |
No change. |
No change. |
|
| (f) Lump-sum death payment
when no monthly benefits immediately payable. |
Lump sum for all insured
deaths. |
Same as existing law, except
special provision when monthly benefits paid in first year are
less than lump sum. |
|
|
(2) Insured status
|
| (a) Based on "quarters
of coverage," namely, calendar quarters with $50 or more
of wages. |
After effective date, $100
of wages and $200 of self-employment income required for quarter
of coverage. Special provision for converting annual self-employment
income into quarters of coverage. |
Same as House bill, except
only $50 of wages and $100 of self-employment income required
for quarter of coverage. |
Same as Senate bill. |
| (b) Fully insured (eligible
for all benefits) requires I quarter of coverage for each 2
garters after 1936 and before age 65 (or eath if earlier). In
no case more than 40 quarters of coverage required. Minimurn
of 6 quarters of coverage required. |
Alternative requirement
provided; namely, 20 quarters of coverage out of 40 quarters
preceding death or attainment of age 65, or any later date. |
Same as present law, except
"new start" provides that such quarters of coverage
(acquired after 1936) must at least equal half the quarters
after 1950. Thus all now aged 62 or over need have only 6 quarters
of coverage. Not applicable for deaths prior to effective date. |
Same as Senate bill.
|
| (c) Currently insured (eligible
only for child's, widowed motber's, and lump-sum ,survivor benefits)
requires 6 quarters of co crage in the 13-quarter period consisting
of the quarter of death and the 12 preceding quarters. |
No change. |
No change. |
No change. |
|
(3) Worker's monthly
old-age benefit ("primary amount")
|
| (a) Average monthly wage
based on period from 1937 to age 65 (or death if earlier) regardless
of whether in covered employment in all such years. A year of
coverage is a calendar year in which $200 is credited. |
Average monthly wage based
on average over years of coverage (after either 1936 or 1949,
whichever is higher) A year of coverage is a calendar year in
which $400 is credited ($200 before 1950). |
Same as existing law, except
"new start" average beginning after 1950 may be used
for those with 6 quarters of coverage after 1950. |
Same as Senate bill. |
(b) Monthly amount is 40
percent of first $50 of average wage plus 10 percent of next
$200, all increased by 1 percent for each year of coverage.
Primary insurance benefit
$10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00 |
Monthly amount is 50 percent
of first $100 of average wage plus 10 percent of next $200,
increased by .5 percent for each year of coverage, and unless
in covered employment in entire period reduced by percentage
of time out of covered employment since 1936 or 1949, whichever
gives smaller reduction. Benefits of present beneficiaries increased
by conversion table that gives effect to new benefit formula
and new average wage concept; the average primary benefit will
be increased by 70 percent, with somewhat greater relative increases
for those receiving smallest amounts, as indicated by the following
tabulation for certain illustrative cases:
Primary insurance amount
$25.00
30.90
36.30
44.50
50.90
65.40
59.90
64.40 |
For those with "new
start" average wage, monthly amount is 50 percent of first
$100 of average wage plus 15 percent of next $200. For all others
(including present beneficiaries) and those with "new start"
if it produces a larger benefit, the benefit is computed under
existing law (but with no 1-percent increase for years after
1950) and then increased by conversion table; the average primary
benefit will be increased on the average by 85 percent, as indicated
by the following tabulation for certain illustrative cases:
Primary insurance amount
$20.00
31.00
37.00
48.50
56.20
62.20
67.60
72.50 |
Same as Senate bill except that conversion table is lowered
so that the average primary benefit is increased by 77.5 percent,
as indicated by the following tabulation for certain illustrative
cases:
Primary insurance amount
$20.00
30.00
37.00
46.50
54.00
59.20
64.00
68.50 |
| (c) Minimum primary benefit,
$10. |
$25. |
$25, unless average monthly
wage is less than $34-then $20. |
$25 unless average monthly wage is less than $35-then graded
down to $20 for average monthly wage of $30 or less. |
| (d) Maximum family benefit,
$85 or 80 percent of average wage or twice the primary benefit,
whichever is least (but in no case less than $20). |
$150, or 80 percent of average
wage if less (but in no case less than $40). |
Same as House bill. |
Same as House bill. |
| Chart
2-Continued: Principal changes in the Social Security Act under
the 1950 amendments--as passed by the House of Representatives,
as passed by the Senate, and as enacted |
|
Old law
|
H. R. 6000 as passed
by House
|
H. R. 6000 as passed
by Senate
|
New law
|
|
(4) Benefit amounts
of dependents and survivors relative to worker's primary benefit
|
| (a) Wife, one-half of primary
benefit. |
No change. |
No change. |
No change. |
| (b) Widow, three-quarters
of primary benefit. |
No change. |
No change. |
No change. |
| (c) Child, one-half of primary
benefit. |
No change, except for deceased
worker family, when first child gets three-quarters of primary
benefit. |
Same as House bill. |
Same as House bill. |
| (d) Parent, one-half of
primary benefit. |
Three-quarters of primary
benefit. |
Same as existing law. |
Same as House bill. |
| (e) Lump sum at death, six
times primary benefit. |
Three times primary benefit. |
Same as House bill. |
Same as House bill. |
|
(5) Amount of employment
permitted beneficiary for benefit receipt (work clause)
|
| No benefits paid for month
in which $15 or more earned in covered employment. |
Same except $15 limit is
increased to$50 and no limitation at all after age 75. |
Same as House bill. |
Same as House bill. |
|
(6) Covered employment
|
| All employment except self-employment
and employment in Federal and State governments, railroads,
nonprofit (charitable, educational, and religious), agriculture,
and domestic service. Employment covered only in the 48 States,
the District of Columbia, Alaska, and Hawaii and on American
ships outside the United States under certain circumstances. |
In addition to existing
coverage, includes the following groups:
(a) Nonfarm self-employed other than certain professions (physicians,
lawyers, dentists, osteopaths, veterinarians, chiropractors,
optometrists, Christian Science practitioners, and certain professional
engineers);
(b) State and local government employees on elective basis by
the State, except that, where retirement system exists, employees
and beneficiaries must favor by two-thirds majority in referendum,
and except for certain transit workers who are covered compulsorily;
(c) Regularly employed nonfarm domestic servants (based on 26
days of work during a quarter);
(d) Employees of nonprofit Institutions other than ministers
(on compulsory basis for employees and voluntary basis for employer);
(e) Agricultural processing workers off the farm;
(f) Federal employees not covered under retirement system other
than those in very temporary or casual employment;
(g) Americans employed by American employer outside the United
States and employees on American aircraft outside the United
States in the same manner as for ships;
(h) Employment in Puerto Rico and Virgin Islands;
(i) Salesmen and certain other employees who were deprived of
coverage as employees by Public Law 642, Eightieth Congress;
(j) Tips reported to the employer included as wages. |
Same as House bill except:
(a) Coverage of regularly employed farm workers, based on 60
days of work during a quarter;
(b) Exemption from coverage as professional self-employed extended
to architects, naturopaths, certified, licensed, and registered
public accountants, funeral directors and all professional engineers
(instead of certain named ones), while publishers are covered;
(c) Coverage of regularly employed nonfarm domestic servants,
based on 24 days of work during a quarter;
(d) Coverage of nonprofit employees on compulsory basis for
nonreligious organizations and on completely voluntary basis
for religious organizations;
(e) Coverage of Federal civilian employees not covered by a
retirement system clarified and extended to those occupying
positions pending permanent or indefinite appointment;
(f) Coverage not permitted for State and local employees covered
by an existing retirement plan;
(g) Definition of "employee" restricted to strict
common-law basis except for following named occupational groups
covered as "employees": full-time life insurance salesmen;
agent-drivers and commission-drivers distributing meat products,
bakery products, or laundry or dry cleaning services; and full-time
wholesale salesmen;
(h) Tips not included as wages as in existing law. |
Same as Senate bill except:
(a) Coverage of regularly employed farm workers based on 60
full days of work during a quarter if worker had continuous
employment with the same employer during a preceding 3-month
period;
(b) Exemption from coverage as professional self-employed extended
to full-time practicing public accountants;
(c) Coverage of nonprofit employees on voluntary basis. Employer
must elect coverage, and at least two-thirds of employees must
concur in coverage. Then all employees concurring in coverage
and all new employees are covered;
(d) Additional occupational groups covered as "employees":
agent - drivers and commission - drivers distributing vegetable
or fruit products or beverages (other than milk) and industrial
homeworkers earning at least $50 during a quarter it subject
to regulation under State law and working under specifications
supplied by employer. |
|
(7) Permanent and total
disability benefits
|
| None. |
For worker both currently
insured and having None. 20 quarters of coverage out of last
10 years. Amount of primary benefit determined as for retired
worker. No benefit for dependents of disabled worker. Benefits
begin in January 1951. |
None. |
None. |
|
(8) Wage credits for
World War II service
|
| None. |
World War II veterans (including
those who died in service) given wage credits of $160 for each
month of military service in World War II. |
Same as House bill except
that credit not given if service is used for any other Federal
retirement system and except that additional cost is to be borne
by trust fund (Instead of by General Treasury as in House bill). |
Same as Senate bill. |
| Chart
2-Continued: Principal changes in the Social Security Act under
the 1950 amendments--as passed by the House of Representatives,
as passed by the Senate, and as enacted |
|
Old law
|
H. R. 6000 as passed
by House
|
H. R. 6000 as passed
by Senate
|
New law
|
|
(9) Maximum annual wage
and self-employment income for tax and benefit purposes
|
| $3,000 |
$3,600 after 1949 |
$3,600 after 1950 |
Same as Senate bill |
|
(10) Tax (contribution)
rates
|
| 1 percent on employer and
1 percent on employee through 1949, 1.5 percent for 1950-51,
and 2 percent thereafter. |
1.5 percent on employer
and 1.5 percent on employee for 1950, 2 percent for 1951-59,
2.5 percent for 1960-64, 3 percent for 1965-69, and 3.75 percent
thereafter, except-
(a) For self-employed, 1.5 times rate for employees. Self-employment
income taxed would be, in general, net income from trade or
business;
(b) For nonprofit employment, no tax is imposed on employer,
who can pay it voluntarily. If employer does not pay tax, employee
receives credit for only 50 percent of his taxed wages. |
Same as House bill, except
that increase to 2 percent is in 1956 instead of 1951 and except
that nonprofit employment when covered is on same basis as all
other employment. |
Same as Senate bill, except
that increase to 2 percent is in 1954. |
|
(11) Appropriations
from general revenues
|
| Appropriations authorized
for such sums as may be required to finance the program. |
Provision in existing law
repealed. |
Same as House bill. |
Same as House bill. |
|
(12) Time within which
benefit payments must be claimed
|
(a) Monthly benefits payable
retroactively for3 months before month of application.
(b) Lump-sum death payments must be claimed within 2 years of
death. |
Same as existing law except
that period extended to 6 months.
Same as existing law except that for deaths outside continental
United States (during war period, lump sum may be claimed any
time before 1952. |
Same as House bill.
Same as House bill. |
Same as House bill.
Same as House bill. |
|
PUBLIC ASSISTANCE
(1) Groups eligible for aid
|
| Three categories defined
for assistance purposes as needy persons-(1) 65 years of age
and over, (2) blind, and (3) children under 16 years of age
and children aged l6-17, if they are regularly attending school. |
Fourth category provided
for permanently and totally disabled individuals who are in
need. For aid to dependent children the mother or other relative
with whom a dependent child is living is included as a recipient
for Federal matching purposes. |
Same as House bill except
fourth category (aid to disabled) not provided for. |
Same as House bill, except
that permanently and totaly disabled individual must be at least
l8 years old. |
|
(2) Federal share of
public assistance expenditures
|
| Federal share for old-age
assistance laid aid to blind is three-fourths of first $20 of
a State's average monthly payment plus one-half of the remainder
within individual maximums of $50; for aid to dependent children,
three-fourths of the first $12 of the average monthly payment
per child, plus one-half the remainder within individual maximums
of $27 for the first child and $18 for each additional child
in a family. Administrative costs shared 50 percent by Federal
Government and 50 percent by States. |
Federal share for old-age
assistance, aid to the blind, and aid to the permanently and
totally disabled is four-fifths of the first $25 of a State's
average monthly payment, plus one-half of the next $10, plus
one-third of the remainder within individual maximums of $50;
for aid to dependent children, fourfifths of the first $15 of
the average monthly payment per recipient, plus one-half of
the next $6, plus one-third of the next $6 within individual
maximums of $27 for the relative with whom the children are
living, $27 for the first child. and $19 for each additional
child in a family. Administrative costs same basis as present
law. |
Same as existing law, except
that individual maximums for aid to dependent children are raised
fro m $27 to $30 for the relative with whom the children are
living and for the first child and from $18 to $20 for all other
children and except that for old-age assistance payments supplementing
old-age insurance benefits for those first becoming entitled
to such benefits in or after the second month after enactment,
Federal share is on a 50-50 basis. |
Same as existing law, except
that relative with whom children are living is included for
Federal matching purposes within individual maximum of $27 a
month. Matching basis for aid to disabled same as for old-age
assistance. |
|
(3) Medical care
|
Federal sharing in costs
of medical care limited to amounts paid to recipients that can
be included within the monthly maximums on individual payments.
No State-Federal assistance provided
persons in public institutions unless they are receiving temporary
medical care in such institutions. |
Federal Government will
share in cost of payments made directly to medical practitioners
and other suppliers of medical services, which when added to
any money paid to the individual, does not exceed the monthly
maximums on individual payments. Federal Government shares in
the cost of payments to recipients of old-age assistance, aid
to the blind, and aid to the permanently and totally disabled
living in public medical institutions other than those for mental
disease and tuberculosis. |
Same as House bill, except
that no plan for aid to disabled is provided and except for
specific authorization for Federal Government to share in direct
payments made to suppliers of remedial care as well as to suppliers
of medical care. |
Same as Senate bill except
that plan for aid to disabled is provided. |
| Chart
2-Continued: Principal changes in the Social Security Act under
the 1950 amendments--as passed by the House of Representatives,
as passed by the Senate, and as enacted |
|
Old law
|
H. R. 6000 as passed
by House
|
H. R. 6000 as passed
by Senate
|
New law
|
|
(4) Changes in requirements
for State public assistance plans
(a) Residence
|
| For old-age assistance,
and aid to the blind, a State may not require, as a condition
of eligibility, residence in a State for more than 5 of the
9 years immediately preceding application and 1 continuous year
before filing the application. For aid to dependent children,
the maximum requirement for the child is 1 year of residence
immediately preceding application or if the child is less than
a year old, birth in the State and continuous residence by the
mother in the State for 1 year preceding the birth. |
No change in requirements
for old-age assistance and aid to dependent children. For aid
to the blind, effective July 1, 1951, a State may not require,
as a condition of eligibility, residence in the State for more
than 1 continuous year before the filing of the application
for aid. For aid to the permanently and totally disabled, no
State may impose a residence requirement more restrictive than
that in its plan for aid to the blind on July 1, 1949, and beginning
July 1, 1951, the maximum residence requirement is 1 year immediately
preceding the application for aid. (All other requirements for
aid to the permanently and totally disabled are the same as
for old-age assistance.) |
Same as existing law. |
Same as Senate bill, except
that for aid to the permanently and totally disabled, residence
requirement is same as that for old-age assistance and aid to
the blind. |
|
(b) Income and resources
|
| For the three categories
a State must, in determining need, take into consideration the
income and resources of an individual claiming assistance. |
Provision in existing law
is made applicable to aid to the permanently and totally disabled.
For aid to the blind, effective October 1, 1949, a State may
disregard such amount of earned income, up to $50 per month,
as the State vocational rehabilitation agency for the blind
certifies will serve to encourage or assist the blind to prepare
for or engage in remunerative employment; effective July 1,
1951, a State must, in determining the need of any blind individual,
disregard any income or resources that are not predictable or
actually not available to the individual and take into consideration
the special expenses from blindness. |
Effective July 1, 1952,
a State must disregard earned income, up to $50 per month, of
an individual claiming aid to the blind; before July 1, 1952,
the exemption of earned income, up to $50 per month, is discretionary
with each State. Same income and resources provisions as in
existing law for the other categories. |
Same as Senate bill. |
|
(c) Temporary approval
of State plans for aid to the blind
|
| No provision. |
For the period October 1,
1949, to June 30, 1953, any State that did not have an approved
plan for aid to the blind on January 1, 1949 shall have its
plan approved even though it does not meet the requirements
of clause (8) of section 1002 (a) of the Social Security Act
(relating to consideration of income and resources in determining
need.) The Federal grant for such State, however, shall be based
only upon expenditures made in accordance with the aforementioned
income and resources requirement of the act. |
Same as House bill except
that provision applies after October 1, 1950, and with no termination
date.
|
Same as House bill except
that provision applies after October 1, 1950, and terminates
June 30, 1955. |
|
(d) Examination to determine
blindness
|
| No provision. |
A State aid to the blind
plan must provide that, in determining blindness, there shall
be an examination by a physician skilled in diseases of the
eye or by an optometrist. |
A State aid to the blind
plan must provide that, in determining blindness, there shall
be tin examination by a physician skilled in diseases of the
eye. Also the plan must provide that the services of optometrists
within the scope of their practice as prescribed by State law
shall be available to individuals already determined to be eligible
for aid to the blind (if desired and needed by them) as well
as to recipients of any grant-in-aid program for improvement
or conservation of vision. |
Same as House bill, but mandatory July 1, 1952, and discretionary
with each State prior thereto. |
|
(e) Assistance to be
furnished promptly
|
| No specific provision relating
to opportunity apply for assistance promptly. |
Opportunity must be afforded
all individuals to apply for assistance, and assistance must
be furnished promptly to all eligible individuals. |
Same as House bill but clarified. |
Same as Senate bill. |
|
(f) Fair hearing
|
| Fair hearing must be provided
individual whose claim is not acted upon within a reasonable
time. |
Fair hearing must be provided
by State agency to individual whose claim for assistance is
denied or not acted upon within reasonable time. |
Same as House bill but clarified. |
Same as Senate bill. |
| Chart
2-Continued: Principal changes in the Social Security Act under
the 1950 amendments--as passed by the House of Representatives,
as passed by the Senate, and as enacted |
|
Old law
|
H. R. 6000 as passed
by House
|
H. R. 6000 as passed
by Senate
|
New law
|
|
(g) Standards for institutions
|
| No provision. |
If a State plan for old-age
assistance, aid to the blind, or aid to the permanently and
totally disabled provides for payments to individuals in private
or public institutions, the State must have a State authority
to establish and maintain standards for such institutions. (Effective
July 1, 1953.) |
Same as House bill. |
Same as House bill. |
|
(h) Training program
for personnel
|
| No specific provision. |
States must provide a training
program for the personnel necessary to the administration of
the plan. |
No specific provision. |
Same as Senate bill. |
|
(i) Notification to
law enforcement officials
|
| No provision. |
In aid to dependent children
the States must provide for prompt notice to appropriate law
enforcement officials in any case in which aid is furnished
to a child who has been deserted or abandoned by a parent. |
Same as House bill. |
Same as House bill. |
|
(5) Puerto Rico and
the Virgin Islands
|
| Federal funds for public
assistance not available to Puerto Rico and the Virgin Islands. |
The four categories of assistance
are extended
to Puerto Rico and the Virgin Islands. The Federal share for
old-age assistance, aid to the blind, and aid to the permanently
and totally disabled is limited to one-half the total sums expended
under an approved plan up to a maximum payment for any
individual of $30 per month. For aid to
dependent children the Federal share is
limited to one-half the expenditures under
an approved plan up to individual maximums of $18 for the first
child and $12 for each additional child in a family. Administrative
costs are matched by the Federal
Government on a 50-50 basis. |
Same as existing law. |
Same as House bill, except
that maximum annual Federal grant shall be $4,250,000 for Puerto
Rico and $160,000 for the Virgin Islands. |
|
MATERNAL AND CHILD HEALTH
AND CHILD WELFARE SERVICES
(1) Maternal and child health services
|
| Authorizes an annual appropriation
of $11,000,000. One-half this amount is distributed among the
States as follows: $35,000 to each State, and the remainder
on the basis of the relative number of live births in the State.
The second half is distributed among the States on the basis
of the financial need of each State after consideration of the
number of live births in the State. |
Same as existing law. |
Authorization for annual
appropriation increased to $20,000,000 and the $35,000 uniform
allotment to each State is increased to $60,000. Otherwise,
the provisions of present law relating to the apportionment
of funds are unchanged. (Effective for fiscal years beginning
after June 30, 1950.) |
Same as Senate bill except
that annual authorization is $15,000,000 for fiscal year beginning
July 1, 1950, and $16,500,000 for subsequent years. |
|
(2) Services for crippled
children
|
| Authorizes an annual appropriation
of $7,500,000. One-half this amount is distributed among the
States as follows: $30,000 to each State, and the remainder
on the basis of need after consideration of the number of crippled
children in the State needing services and the cost of such
services. The second half is distributed on the same basis of
need. |
Same as existing law. |
Authorization for annual
appropriation increased to $15,000,000 and the $30,000 annual
allotment to each State is increased to $60,000. Otherwise,
the provisions of present law relating to the apportionment
of funds are unchanged. (Effective for fiscal years beginning
after June 30, 1950.) |
Same as Senate bill, except
that annual authroization is $12,000,000 for fiscal year beginning
July 1, 1950, and $15,000,000 for subsequent years. |
|
(3) Child welfare services
|
| Authorizes
an annual appropriation of $3,500,000 for grants to the States
for child welfare services in rural areas and areas of special
need. Funds allotted to States with approved plans as follows:
$20,000 to each State and remainder on basis of rural population
of the respective States. |
Authorization
for annual appropriation increased to $7,000,000 and the $20,000
now allotted to each State is increased to $40,000 with the
remainder to be allotted on the basis of rural population of
the respective States. Specific provision is made for the payment
of the cost of returning any runaway child under age 16 to his
own community in another State if such return is in the interest
of the child and the cost cannot otherwise be met. (Effective
for fiscal years beginning after June 30, 1950.) |
Same as House
bill except that annual authorization is increased to $12,000,000
and except that allotment is on basis of rural population under
age 18. (Effective for fiscal years beginning after June 30,
1950.) Also provision added that in developing the various services
under the State plans, the States would be free, but not compelled,
to utilize the facilities and experience of voluntary agencies
for the care of children in accordance with State and community
programs and arrangements. |
Same as Senate
bill, except that annual authorization is $10,000,000. |
|