Social Security Act Amendments of 1950: a Summary and Legislative History by WILBUR J

Social Security Act Amendments of 1950: A Summary and Legislative History by WILBUR J. COHEN and ROBERT J. MYERS

HE Social Security Act Amend• tees of Congress are now preparing who work for State and local govern• ments of 1950 became law on to give these matters serious consid• ments and are not under retirement T August 28, 1950, when President eration." systems and to about 600,000 em• Truman affixed his signature to H. R. The amendments provide the first ployees of nonprofit organizations. 6000. The new social security bill significant revision of the Social Se• Table 1 presents estimates of the became Public Law 734 (81st Con• curity Act since the changes made by number of persons in the newly cov• gress, second session). Congress in 1939. There are four ti• ered groups. In signing the bill, President Tru• tles in the new law: I—Amendments The second major change substan• man stated that "passage of this to Title II of the Social Security Act; tially liberalizes the amount of bene• legislation is an outstanding achieve• II—Amendments to Internal Revenue fits payable to individuals. Table 2 ment." He pointed out that "by Code; III—Amendments to Public As• gives estimates of the average pay• making it possible for most families sistance and Maternal and Child Wel• ments under the old law and the new to obtain protection through the fare Provisions of the Social Security law, while table 3 shows illustrative contributory insurance system, and Act; and IV—Miscellaneous Provi• monthly benefits under the new law. by increasing insurance benefits, the sions. For a retired worker the average bene• Act will ultimately reduce depend• fit is increased from around $26 a ence on public charity. This meas• Summary of Chief Provisions month to $46 for persons who are on ure demonstrates our determination the rolls now and to around $50-55 a The major provisions of the new to achieve real economic security for month for those who retire after the social security law may be sum• the American family. This kind of new law takes full effect. This in• marized briefly. They extend cover• progressive, forward-looking legisla• crease means that, for a man and wife age and liberalize the benefits of the tion is the best possible way to prove who are both aged 65, average bene• Federal old-age and survivors insur• that our democratic institutions can fits will be around $75-80 a month. ance program, broaden and liberalize provide both freedom and security Federal grants to the States for public The new law also increases insur• for all our citizens. assistance and for maternal and child ance benefits for widows and orphans. The average monthly benefit for a "We still have much to do before health and child welfare services, and widow and two children will be in• our social security programs are fully restrict the authority of the Secretary creased immediately from about $50 adequate. While the new Act greatly of Labor in connection with State un• a month to $90-95 and to $100-105 a increases coverage, many more peo• employment insurance laws. month when death occurs after the ple still need to be brought into the new law takes full effect. The face old age and survivors insurance sys• Old-Age and Survivors value of life insurance in force under tem. Expanded coverage and in• Insurance the law will be increased from about creased benefits in old age insurance $85 billion under the old law to $190 should now be matched by steps to The new law makes three important billion immediately, which is almost strengthen our unemployment in• changes in the Federal old-age and as much as the face value of the life surance system. At the same time, survivors insurance program. First, insurance in effect at the present time we urgently need a system of insur• coverage is extended to approximately in all the life insurance companies in ance against loss of wages through 10 million additional persons, includ• the United States. When the new temporary or permanent disability. ing the nonfarm self-employed other law becomes fully effective, in about These and other vital improvements than doctors, lawyers, engineers, and 2 years, the face value of life insur• in our social security laws are members of certain other professional ance will be about $250 billion. needed in addition to the Act which groups. Regularly employed domes• I have signed today. I shall continue tic and farm workers, a small number The third group of major changes to urge action on this unfinished bus• of Federal employees who are not cov• provides for payment of benefits in iness and I know that the Commit- ered under the civil service retirement cases in which no benefits were pay• program, and a few others—members able previously. Benefits will now of very small occupational groups— be paid to dependent husbands and *Mr. Cohen is the Technical Adviser to are also included; and workers in the Commissioner for Social Security, dependent widowers, to children of and Mr. Myers is the Chief Actuary of the Puerto Rico and the Virgin Islands insured women under certain circum• Social Security Administration. The are covered. In addition to the auto• stances, and with respect to an indi• authors wish to acknowledge the assist• matic coverage extended to these vidual who could not have met the ance of Elizabeth G. Sanders of the groups, the opportunity to be included Bureau of Old-Age and Survivors Insur• insured status requirement under the ance in the preparation of this article. is extended to the 1.5 million people old law but is insured under the more OLD-AGE AND SURVIVORS INSURANCE BENEFIT CHART 1950 AMENDMENTS "AVERAGE MONTHLY "AVERAGE MONTHLY /"PRIMARY WAGE" SINCE WAGE* SINCE / INSURANCE 1936 1950 # / AMOUNT" $250

225 EXAMPLE 1: To determine the primary insurance amount for a worker having an "Average Monthly Wage " since 1936 of $100 and aoo-f 12 years of coverage prior to 1951; draw a line connecting $100 on the wage since 1936 scale with 12 years on the "Years of Coverage" scale. The resulting amount ($51.50) is shown at its intersection on 175 + the Primary Insurance Amount scale. The corresponding figure on the "Average Monthly Wage" since 1950 scale ($110) is the average

150 wage for computing the maximum benefit.

EXAMPLE 2: To determine the Primary Insurance Amount for 125 a worker having an "Average Monthly Wage" since 1950 of $200 per month; note the amount ($65.00) on the "Primary Insurance Amount"

100 scale opposite the average wage ($200). This amount ($65.00) is applicable unless the amount arising from his "Average Monthly Wage" since 1936 is larger. 75 +

YEARS OF COVERAGE PRIOR TO PERCENT OF PRIMARY INSURANCE AMOUNT 1951 PAYABLE MONTHLY TO BENEFICIARIES 14 13 100% FOR AN ELIGIBLE RETIRED WORKER 75% FOR AN ELIGIBLE WIDOW OR PARENT 30 u 75 % FOR AN ELIGIBLE FIRST SURVIVOR CHILD 50% EACH FOR ALL OTHER ELIGIBLE CHILDREN -10 50% FOR AN ELIGIBLE WIFE 25 + 9 MAXIMUM TOTAL MONTHLY BENEFIT PAYABLE: 8 $150 OR 80% OF AVERAGE WAGE, WHICHEVER IS SMALLER, BUT NOT LESS THAN $40. + 7

MAXIMUM PRIMARY INSURANCE AMOUNT. 6 $68.50 WHEN USING WAGES SINCE 1936 -5 $80.00 WHEN USING WAGES SINCE 1950 4 10 + AT LEAST 6 QUARTERS K APPLICABLE ONLY TO THOSE WITH 3 OF COVERAGE AFTER 1950. 2

5 + I -Co 0-L Social Security Table 1.—Old-age and survivors insur• penditures made to persons in public in 1939, largely because of the rise in ance: Extension of coverage under institutions were matchable. Fur• the wage level during the past decade the 1950 amendments ther, if the State plan includes (higher wages result in lower cost as [Number in an average week) provision for payments to persons in a percentage of payroll because of the any private or public institution, the weighted nature of the benefit for• Category Number State must establish or designate mula). covered some State agency that will be Under the new law the level-pre• Total 9,800,000 responsible for establishing and mium cost of the benefits is increased maintaining standards for such in• Compulsory coverage, total 7, 750,000 to 6.10 percent of payroll. This figure Nonfarm self-employed 4, 700,000 stitutions. This requirement will must be adjusted slightly, however, Agricultural workers 850,000 Borderline employment 200,000 raise the standards of those institu• for two factors—the administrative Regularly employed on farms 650,000 tions that have been understaffed Domestic workers 1,000,000 costs, which are charged directly to Federal civilian employees not under a and underfinanced, that have been the trust fund, and the interest earn• retirement system 250,000 Employees outside the United States 150,000 firetraps, and in which people have ings on the present trust fund, which Employment in Puerto Rico and Virgin been badly treated. Islands 400,000 will be about $13.5 billion at the end New definition of "employee" 400,000 Fourth, Federal matching funds of 1950. When these elements are Voluntary coverage, total 2, 050,000 will be available for direct payments considered the net level-premium Employees of nonprofit organizations 600,000 made by the States to doctors, hos• cost of the amended law is shown to Employees of State and local govern• 1 1,450,000 pitals, or other persons furnishing be 6.05 percent of payroll. ments medical care. Under previous law 1 The additional Federal costs for the Excludes a relatively small number of transit the Federal Government did not par• workers who will be compulsorily covered. ticipate in the cost of medical care public assistance and maternal and child health and child welfare amend• liberal requirements in the new law unless payment for such care was made directly to the assistance re• ments are estimated at $177-220 mil• (table 4). Lump-sum death pay• lion a year, as shown in table 6, which ments will be made, moreover, in the cipient. This new provision will make it possible to develop working also notes the assumptions on which case of all insured deaths. Eligible the estimates are based. These esti• beneficiaries may earn as much as $50 relations with the medical profession, hospitals, public health officials, and mates may be high, because they do a month in covered employment and not consider the possible effect on still receive benefits (as against a other groups to improve the quality and quantity of medical care for the the assistance programs of the old-age maximum on earnings of $14.99 under and survivors insurance amendments, previous law); moreover, for those 5 million persons receiving assist• ance under the Social Security Act. which increase benefit amounts and aged 75 or over there is now no with• make more persons eligible immedi• holding of benefits because of work ately for insurance benefits; as a re• in covered employment. Maternal and Child Health and sult, some persons may be able to Child Welfare Services leave the assistance rolls and others Public Assistance Another major provision in the may have their assistance payments amendments authorizes increases in lowered. On the other hand, should Public Law 734 makes four sig• assistance rolls and the amount of nificant changes in the public assist• Federal grants for maternal and child health services, child welfare the average assistance payments con• ance provisions of the Social Security tinue to increase as they have in the Act. Perhaps the most important is services, and services for crippled the addition to the Federal grants- children. A total of $22 million had in-aid program of a new category— been authorized for grants to the Table 2.—Old-age and survivors insur• ance: Average monthly benefit pay• Federal grants-in-aid to the States States for the maternal and child ments and average lump-sum death for needy individuals who are per• health, child welfare, and crippled payments in June 1950 and under manently and totally disabled. children programs under title V of the 1950 amendments Another important change reme• the Social Security Act. This total dies a basic defect in the aid to de• is increased to $37 million for the Aver Estimated average benefit under the 1950 amendments pendent children program. Before, fiscal year ending June 30, 1951, and age benefit, June 1950 there was no provision for the need to $41.5 million for each year there• Type of benefit of the parent or other relative with after. 1951 1960 2000 whom the child was living. The new Costs Old-age (primary) $26 $45-46 $50-50 $49-50 legislation includes the relative with Male 27 47-47 53-53 57-58 The estimated level-premium costs Female 21 37-37 38-38 36-38 whom the dependent child is living Wife's 1 14 24-25 27-27 29-30 as a recipient for Federal matching of the new insurance program are Widow's 1 21 35-36 39-39 44-45 Parent's 14 35-36 38-38 42-43 purposes. shown in table 5. As will be seen Child's 13 33-34 35-36 36-37 from the table, the level-premium cost Mother's (widow's Third, the Federal Government 21 43-44 45-46 under the old law—taking into ac• current) 40-40 will match expenditures for assist• Lump-sum death 2 156-159 149-156 ance to aged and blind persons in count 2-percent interest—is 4.50 per• payment 168 143-146 cent of payroll. This amount is con• certain types of public medical insti• 1 Also represents husband's and widower's bene• siderably lower than the cost esti• fits. tutions. Under the old law no ex• 2 mated when the program was revised Average amount per deceased worker. past, the estimates given in table 6 House under a closed rule prohibiting and accountants were excluded from may be low. In any case the full any amendments from the floor ex• coverage. financial effect will not become known cept one motion to recommit the bill 4. Compulsory coverage was ex• for a year or two. to the Ways and Means Committee. tended to employees of transit sys• On October 5, 1949, H. R. 6297 was of• tems taken over, in whole or in part, Legislative History fered on the floor of the House of from private ownership by State or Representatives as a substitute for local governments after 1936. Action in the House of H. R. 6000 but was defeated by a vote 5. The provision, included in the Representatives of 232 to 112. Then, on the same House but eliminated by the Finance date, H. R. 6000 was passed in the Committee, for Federal matching of Under the Constitution, all revenue House by a vote of 333 to 14. bills must originate in the House of payments under the aid to depend• Representatives. Since social security ent children program to the mother legislation involves taxes, it must be Action in the Senate or other adult relative caring for dependent children, was restored. first introduced in the House. For Since Congress adjourned shortly this reason, on February 21, 1949, after the House action, it was not pos• 6. A provision was added to limit President Truman transmitted his sible for the Senate to consider H. R. the authority of the Secretary of La• recommendations and drafts of two 6000 before 1950. bor in determining whether a State conforms to the Federal require• bills to Mr. Doughton, Chairman of The Senate Finance Committee ments in the Internal Revenue Code the House Committee on Ways and held extended hearings on social se• and the Social Security Act relating Means. The two bills were intro• curity and adopted a number of im• to unemployment insurance. duced in the House by Mr. Doughton portant amendments to H. R. 6000. and became the basis of Committee The bill was reported to the Senate on All the amendments adopted ex• consideration. H. R. 2892 dealt with May 17, 1950, and debate began on cept the one relating to unemploy• public assistance and child welfare June 12. ment insurance were approved by the Finance Committee. services, and H. R. 2893 dealt with There were 28 amendments offered Federal old-age, survivors, and tem• from the floor of the Senate. Twelve There were record votes on three porary and permanent total disability were adopted, 15 were rejected, and amendments. An amendment by insurance. one was eliminated on a point of Senator Myers to increase to $4,200 After extended hearings the House order. Action on the most important the maximum wage base in Federal Committee on Ways and Means on of those adopted was as follows: old-age and survivors insurance was August 22, 1949, reported out a single 1. The increase in the maximum defeated, 36 to 45. An amendment bill, H. R. 6000, covering insurance, taxable wage base to $3,600, passed offered by Senator Long to provide assistance, and child welfare services. by the House but eliminated by the Federal grants to the States for The vote in the Committee was 23 to 2 Senate Finance Committee, was needy disabled persons was also de• for reporting out the bill. On October restored. feated, 41 to 42. The amendment 3, 1949, Mr. Kean, a member of the offered by Senator Knowland to re• 2. The definition of "employee" quire State court review in State un• Committee, introduced H. R., 6297, was expanded slightly to include which carried out the minority views employment insurance was adopted, certain wholesale salesmen and 45 to 37. agent-drivers. on H. R. 6000. 3. Self-employed funeralH. directorsR. 6000 was considered in the The Senate passed H. R. 6000 on June 20 by a vote of 81 to 2. The Table 3.—Old-age and survivors insurance: Illustrative monthly benefits under Senate also passed a resolution, rec• the 1950 amendments ommended by the Committee on Finance, for further study of the so• Monthly benefit by specified amount cial security program by the Com• of average monthly wage Family classification mittee or "any duly authorized sub• committee thereof." The Committee $50 $100 $150 $200 $250 $300 is to determine the scope of the study, Retired worker families: which is to include (but is not limited Worker only 25 50 58 65 Worke38 r und wife, aged 65 or over 72 80 to) certain specified points. The first 75 86 98 109 120 Worker and 1 child 38 75 80 Worker and 2 children 40 98 109 120 of these points is "the type of social- 80 115 130 145 150 Worker, wife, and 1 child 40 80 115 130 145 150 security programs which are most Worker and dependent husband, aged 65 or over 38 75 86 98 109 120 consistent with the needs of the people Worker, dependent aged husband, and 1 child 40 80 115 130 145 150 of the United States and with our eco• Survivor families: Widowed mother and 1 child 38 75 86 98 109 120 nomic system, including study and Widowed mother and 2 children 40 80 115 130 145 150 investigation of proposed programs Widowed mother and 3 or more children 40 80 120 150 150 150 1 child only 19 38 43 49 54 60 for a pay-as-you-go universal cover• 2 children 31 62 72 81 91 100 Widow only, aged 65 or older 19 38 43 49 54 60 age system and the problems of tran• Dependent widower, aged 65 or over 19 38 43 49 54 60 sition to such a system." The other 19 38 43 49 54 60 1 aged dependent parent points listed for study are extension of 2 aged dependent parents 38 75 86 98 109 120 coverage to farm operators and farm Table 4.—Old-age and survivors insur• Seventeen of the major differences during the next two decades. (Sen• ance: Illustrative numbers of quar• between the House and the Senate ate provision.) ters of coverage required under the versions of the bill concerned the in• 14. Liberalization of the method of 1950 amendments for fully insured status surance program. The final decisions computing the "average monthly on these points were as follows: wage" for benefit purposes. (Senate provision.) Year of Quarters of Year of Quarters of 1. Elimination of the House provi• attaining coverage attaining coverage 2 15. Payment of benefits to depend• age 65 1 required 2 age 651 required sion for permanent and total disabil• ity insurance. ent husbands and widowers of insured 1954 or ear• 1963 24 2. Elimination of the House provi• women workers. (Senate provision.) lier 6 1964 26 16. Liberalization of survivors in• 1955 8 1965 28 sion for increment in the benefits for 1956 10 1966 30 years of coverage under the program. surance benefits with respect to deaths 1957 12 1967 32 of insured married women. (Senate 1958 14 1968 34 3. Elimination of the House pro• 1959 16 1969 36 provision.) 1960 18 1970 38 vision specifically including tips in 1961 20 1971 and af• covered wages. 17. Lump-sum death payment to be 40 1962 22 ter 4. Coverage of some salesmen, some made for all deaths of insured per• sons. (House provision.) 1 Applicable to persons attaining age 65 in first half homeworkers, certain kinds of agent- of year. For those attaining age 65 in the second half drivers, and certain other groups as Public assistance.—On the eight of any of the years 1954-70, 1 more quarter of coverage is required. employees. (Compromise between chief points of difference in the assist• 2 Quarters may be those obtained at any time after ance program, the decisions were: 1936. Senate and House.) 5. Exclusion of State and local gov• 1. Elimination of the House provi• workers still outside the coverage of ernment employees covered under re• sion that would have increased assist• old-age and survivors insurance, the tirement plans (coverage under vol• ance payments by providing a higher financing of the program, increased untary agreement had been provided percentage of Federal funds under a in the House version for all State and formula weighted in favor of States work opportunities for the aged, rela• making low payments. tionship of the program to private local employees). pension plans, and relationship to the 6. Exclusion of certified, registered, 2. Acceptance with amendments of care and rehabilitation of and income and licensed public accountants, full- the House provision for Federal grants maintenance for disabled workers. time practicing public accountants, to the States for the needy perma• The Committee is authorized to em• naturopaths, architects, funeral di• nently and totally disabled. ploy a technical and clerical staff and rectors, and all professional engi• 3. Acceptance with amendments of to appoint advisors. neers from coverage as self-employed the House provision extending Fed- persons. (Senate provision.) Table 5.—Old-age and survivors in• 7. Inclusion of regularly employed surance: Estimated level-premium Action of the Conference agricultural labor. (Substantially the Committee costs as percent of payroll by same as Senate provision.) 1 specified change in law The conferees of the House were 8. Inclusion of publishers under coverage as self-employed persons. Representatives Doughton, Mills, Level-pre• Camp, Lynch, Reed, Woodruff, and (Senate provision.) Item mium cost Jenkins. The conferees of the Senate 9. Inclusion on a compulsory basis (percent) of employees of certain transit sys• were Senators George, Connally, Byrd, Cost of benefits under bid law 4.50 Millikin, and Taft. Senator George tems taken over in whole or in part Effect of changes; Benefit formula +1.60 acted as chairman. The Conference by State or local governments after New benefit percentages 2 +3. 75 1936. (Compromise between Senate New average monthly wage basis +.05 Report was submitted to the House on Reduction in increment -2.00 August 1, 1950. Mr. Lynch did not and House.) Increase in wage base -.20 Liberalized eligibility conditions +.10 sign the Conference Report because 10. Provision for voluntary cover• Liberalized work clause +. 15 Revised lump-sum death payment -.05 of his opposition to the Knowland age of employees of nonprofit organi• Additional dependents' benefits 3 +.15 amendment and to the deletion of the zations through an election by the Extension of coverage -.35 Cost of benefits under amendments 6.10 provision for permanent and total dis• employer and a statement that two- +.15 Administrative costs ability insurance. thirds of the employees desire cover• Interest on trust fund at end of 1950 -.20 Action on the major points of dif• age. (Compromise between Senate Net level-premium cost under amendments 6.05 ference between the House and Senate and House.) 1 Figures relate only to benefit payments after 1950 bills that the Conference Committee 11. Increase in the second step in, and represent an intermediate estimate that is sub• ject to a significant range because of the possible had to reconcile is summarized below. the benefit formula from 10 percent variation in the cost factors involved in the future. Chart 2 gives a detailed description to 15 percent. (Senate provision.) Computations are based on a compound interest rate of 2 percent per annum. The order in which these of the old-age and survivors insur• 12. A substantial increase—77 1/2 various changes are considered in this table affects the amount of the increase in cost to be attributed to ance, public assistance, and maternal percent in the average benefit—for a specific element. and child health and child welfare current beneficiaries. (Midway be• 2 Includes effect of minimum and maximum bene• fit provisions. provisions of the old law, the bill as tween Senate and House provision.) 3 Includes higher rate for the first survivor child and for parents, more liberal eligibility conditions passed by the House and as passed by 13. Liberalization of the eligibility for determining child dependency on married wo• the Senate, and the final law. provisions to make it easier for per• men workers, wife's benefits for wives under age 65 with children, and husband's and widower's Old-age and survivors insurance.— sons to become insured for benefits benefits. eral grants for public assistance to Chart 1.—Effective dates of major provisions under the 1950 amendments Puerto Rico and the Virgin Islands. 4. Elimination of the Senate provi• Provision Date sion for Federal matching of State supplementary old-age assistance Old-age and survivors insurance payments on a 50-50 basis for persons First month for which increased old-age and survivors insurance benefits are payable to September 1950 present beneficiaries. who become insurance beneficiaries First day of coverage of new groups January 1, 1951 First month of benefits for which new benefit formula is applicable - _ . April 1952 after the effective date of the bill. First month for which benefits are payable for persons insured under new law who were September 1950 5. Elimination of the Senate pro• previously uninsured. First month for which liberalized retirement, test is applicable September 1950 vision increasing the maximum pay• 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 ments for aid to dependent children death of wife in which the Federal Government afterAugust 1950) September 1950 would share from $27 to $30 a month First month in which first survivor child's and parent's benefit is increased from 50 percent to 75 percent of primary amount. First month in which lump-sum death payment is payable in all insured death cases September l950(for for the first child and from $18 to $20 death after Au• gust 1950) for each additional child. September 1950 6. Acceptance of the Senate pro• First month for which benefits are payable to children of deceased currently insuredwomen . First month for which benefits are payable to wife of old-age beneficiary with child in September 1950 vision for mandatory exemption of her care, regardless of wife's age. $50 of earned income for the blind, First month for which benefits based on World War II wage credits are payable September 1950 beginning July 1952. Public assistance 7. Acceptance of the Senate pro• 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 October 1950 vision for continuing the present caring for dependent child. maximum 5-year residence require• 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 October 1950 ment for aid to the blind instead of medical institutions. First month in which mandatory exemption of earned income for blind is effective. Julv 1952 the House requirement of 1 year. First month in which requirement that State plan must provide for use of optometrists July 1951 8. Extending to 1955 the provisions or physicians skilled in diseases of eye in examination of the blind is effective. First month for which Federal grants may be made to Puerto Rico and the Virgin October 1950 in the House-approved bill for Fed• Islands. eral grants to aid to the blind pro• grams in Pennsylvania, Missouri, and lion); and for child welfare services member of the Ways and Means Nevada. (Compromise between Sen• from $3.5 million to $10 million. Committee, moved to recommit the ate and House.) (Compromise between Senate and Conference Report to the Conference Other programs.—The following House.) Committee. Mr. Byrnes indicated decisions were made on four major 2. Amendment of the child welfare that his motion to recommit was made differences affecting other programs. program by adding the following Sen• in order "to try to close out any at• 1. Increase in Federal grants for ate provision: "Provided that in de• tempt to remove the Knowland maternal and child health services veloping such services for children the amendment from the Conference Re• from $11 million to $16.5 million an• facilities and experience of voluntary port." Mr. Lynch, also a member of nually (except that for the present agencies shall be utilized in accord• the Ways and Means Committee, had fiscal year the grant is to be $15 mil• ance with child care programs and indicated previously that if he were lion); for services for crippled chil• arrangements in the State and local recognized he would offer a motion to dren from $7.5 million to $15 million communities as may be authorized by recommit with instructions to the (for the present fiscal year, $12 mil- the State." House conferees to strike out the Table 6.—Public assistance and ma• 3. Continuation through 1952 of the Knowland amendment and insert ternal and child health and child loan fund within the Federal unem• permanent total disability insurance. welfare: Estimates of additional ployment account, which permits ad• Mr. Lynch did not have an oppor• annual Federal cost under the 1950 vances to State unemployment insur• tunity, however, to present his recom• amendments1 ance funds that run low. (Senate mittal motion since Mr. Byrnes was provision.) recognized to make his motion to re• commit. On the parliamentary ques• Additional Amendment Federal cost 4. Provision restricting the author• tion of ordering the previous question (in millions) ity of the Secretary of Labor to with• the vote was 188 to 186, which thus Total hold grants to States for administra• prevented Mr. Lynch from amending $176.9-219.9 tion of unemployment insurance in Mr. Byrnes' recommittal motion. Aid to the disabled $60.0- 75.0 certain questions of compliance with Aid to dependent children 75.0- 95.0 When this action had been taken, Mr. Medical care 15.0- 20.0 the Federal Unemployment Tax Act Byrnes' motion was rejected. Puerto Rico and Virgin Islands 4.4- 4.4 and title III of the Social Security Temporary provisions for the blind 3.0- 6.0 The Report was adopted in the (2) Act. (Senate provision.) Mandatory income exemption for blind House of Representatives on August Maternal and child health and child welfare19.5 - 19.5 Adoption and Approval 16, 1950, by a vote of 374 to 1 and by 1 Based on the assumption that all States partici• the Senate the following day without pate on a full-year' basis. The public assistance estimates are based on the assumption that the States During consideration of the Confer• a roll-call vote. The bill received will continue to spend as much as they spend in ence Report in the House of Repre• President Truman's approval on Au• September 1950. 2 Less than $500,000. sentatives, Representative Byrnes, a gust 28, 1950. Basic Documents Relating to United States), 81st Congress, 2d Ses• 6000 As Passed by the House of Rep• H. R. 6000 sion, as reported by the Senate Fi• resentatives, As Passed by the Senate, nance -Committee. and According to Conference Agree• H. R. 2892, 81st Congress, First Ses• Senate debate on H. R. 6000, Con• ment. Prepared by Robert J. Myers, sion (see House Hearings). gressional Record, June 12-20, 1950 Actuary to the Committee on Ways H. R. 2893, 81st Congress, First Ses• (Vol. 96, Nos. 115-121). and Means, July 25, 1950. sion (see House Hearings). Summary of Principal Changes in Conference Report on H. R. 6000 Hearings before the Committee on the Old-Age and Survivors Insur• (H. Rpt. No. 2771, 81st Cong., 2d sess.), Ways and Means, House of Repre• ance System Under H. R. 6000, Ac• August 1, 1950. sentatives, 81st Congress, First Ses• cording to Conference Agreement. House and Senate debate on Con• sion, on H. R. 2892 and H. R. 2893 Prepared by Robert J. Myers, Actuary ference Report, Congressional Record, (Parts 1 and 2). to the Committee on Ways and Means, August 16 and 17, 1950 (Vol. 96, Nos. H. R. 6000, 81st Congress, First Ses• July 25, 1950. 162 and 163). sion, as introduced on August 15, 1949, Summary of Principal Changes in President's Statement, White House as reported out on August 22, 1949, the Social Security Act Under H. R. press release, August 28, 1950. and as passed by the House of Repre• sentatives on October 5, 1949. Report of the Committee on Ways and Means on H. R. 6000 (Report No. 1300, 81st Cong., 1st sess.), August 22, Public Law 734 (H. R. 6000) 1949. Chronology of No. Actuarial Cost Estimates for Ex• January 5, 1949.—President Truman recommends revision of social panded Coverage and Liberalized security law in message on State of the Union. Benefits proposed for the Old-Age and February 21, 1949.—President Truman sends letter and draft bills to Survivors Insurance System by H. R. Mr. Doughton. 6000, October 3, 1949 (House version), June 26, 1950 (comparison of House February 21, 1949.—H. R. 2892 and H. R. 2893 are introduced by Mr. and Senate versions), and July 27, Doughton. 1950 (final law). Prepared by Robert February 28-April 27, 1949.—House Ways and Means Committee holds J. Myers, Actuary to the Committee public hearings on social security legislation. on Ways and Means. May 2-August 19, 1949.—House Ways and Means Committee holds H. R. 6297, 81st Congress, First executive sessions. Session. August 15, 1949.—H. R. 6000 is introduced by Mr. Doughton. House debate on H. R. 6000, Con• August 22, 1949.—H. R. 6000 is reported out by House Ways and Means gressional Record, October 4 and 5, Committee. 1949 (Vol. 95, Nos. 184 and 185). September 29-October 3, 1949.—House Rules Committee holds public Hearings before a Subcommittee hearings on closed rule on H. R. 6000. of the Committee on Ways and Means, House of Representatives, 81st Con• October 3, 1949.—H. R. 6297 is introduced by Mr. Kean. gress, 1st Session, on Extension of So• October 4, 1949.—House of Representatives passes closed rule on H. R. cial Security to Puerto Rico and the 6000. Virgin Islands. October 4, 1949.—House begins debate on H. R. 6000. Report to the Committee on Ways October 5, 1949.—H. R. 6297 is rejected as a substitute for H. R. 6000 and Means from the Subcommittee on on a motion to recommit, 112-232. Extension of Social Security to Puerto October 5, 1949.—H. R. 6000 is passed by House of Representatives, Rico and the Virgin Islands, Febru• . 333-14. ary 6, 1950. January 17-March 23, 1950.—Senate Finance Committee holds public Recommendations for Social Se• hearings on H. R. 6000. curity Legislation, the Reports of the February 6, 1950.—Subcommittee on Puerto Rico and Virgin Islands Advisory Council on Social Security to the Senate Committee on Finance, of House Ways and Means Committee files report recommending 1949 (S. Doc. No. 208, 80th Cong., 2d inclusion of those Territories in the insurance and assistance pro• sess.). grams. Hearings before the Committee on April 3-May 17, 1950.-—Senate Finance Committee holds executive Finance, United States Senate, 81st sessions on H. R. 6000. Congress, 2d Session, on H. R. 6000 May 17, 1950.—Amended version of H. R. 6000 is reported out by (Parts 1, 2, and 3). Senate Finance Committee. The Major Differences in the Pres• June 12, 1950.—Senate begins debate on H. R. 6000. ent Social Security Law, the Recom• June 20, 1950.—Senate passes H. R. 6000, 81-2. mendations of the Advisory Council, July 17-August 1, 1950.—Conference Committee holds executive ses• and H. R. 6000 (as passed by the sions on H. R. 6000. House), printed in Part 1 of the Sen• August 1, 1950.—Conference Committee files report. ate Hearings, pp. 2-18. August 16, 1950.—House of Representatives approves Conference Report of the Senate Committee on Report. Finance on H. R. 6000 (Report No. 1669, 81st Cong., 2d sess.), May 17, August 17, 1950.—Senate approves Conference Report. 1950. August 28, 1950.—President Truman approves H. R. 6000. H. R. 6000 (in the Senate of the Chart 2.—Principal changes in the Social Security Act under the 1950 amendments—as passed by the House of Repre• sentatives, 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. No change. (b) Wife, aged 65 or over, of insured No change in age requirement other than that worker. no age requirement if child under age 18 is No change from existing law, except benefitsprovide dSame for dependen as Senate billt husband butwit h s ageprovisiod 65 n in present. or over. House bill for no age requirement if child under age 18 is pre• sent. (c) Widow, aged 65 or over, of insured No change. Same as Senate bill. worker. No change, exceptbenefits provided for dependent widowers aged 65 or over. (d) Children (under age 18) of retired Certain dependency and relationship require• worker, and children of deceased worker ments liberalized, especially with respect Same as House bill, except provisionsas todependenc y on married women further and their mother regardless of her age. to dependency on married insured women. - liberalized. (e) Dependent parents, aged 65 or over, No change. Same as Senate bill: of deceased worker if no surviving spouse or child could receive monthly benefits. (f) Lump-sum death payment when no Lump sum for all insured deaths. No change. NoSame change. as House bill. monthly benefits immediately payable. 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," After effective date, $100 of wages and $200 of Same as House bill, except only $50 of wages Same as Senate bill. namely, calendar quarters with $50 or self-employment income required for quarter and $100 of self-employment income required more of wages. of coverage. Special provision for convert• for quarter of coverage. ing annual self-employment income into quarters of coverage. (b) Fully insured (eligible for all benefits) requires 1 quarter of coverage for each 2 Alternative requirement provided; namely, Same as present law, except "new start" pro• quarters after 1936 and before age 65 (or 20 quarters of coverage out of 40 quarters vides that such quarters of coverage (ac• death if earlier). In no case more than preceding death or attainment of age 65, or quired after 1936) must at least equal half 40 quarters of coverage required. Min• any later date. the quarters after 1950. Thus all now aged imum of 6 quarters of coverage required. 62 or over need have only 6 quarters of cover• Same as Senate bill. age. Not applicable for deaths prior to (c) Currently insured (eligible only for effective date. child's, widowed mother's, and lump-sum No change. No change. No change. survivor benefits) requires 6 quarters of coverage in the 13-quarter period con• sisting of the quarter of death and the 12 preceding quarters.

(3) Worker's monthly old-age benefit ("primary amount")

(a) Average monthly wage based on Average monthly wage based on average over Same as existing law, except "new start" aver• Same as Senate bill. period from 1937 to age 65 (or death if years of coverage (after either 1936 or 1949, age beginning after 1950 may be used for earlier) regardless of whether in covered whichever is higher). A year of coverage is those with 6 quarters of coverage after 1950. employment in all such years. A year a calendar year in which $400 is credited of coverage is a calendar year in which ($200 before 1950). $200 is credited. (b) Monthly amount is 40 percent of first $50 of average wage plus 10 percent of Monthly amount is 50 percent of first $100 of For those with "new start" average wage, Same as Senate bill ex• next $200, all increased by 1 percent for average wage plus 10 percent of next $200, in• monthly amount is 50 percent of first $100 of cept that conversion each year of coverage. creased by 1/2percen t for each year of cover• average wage plus 15 percent of next $200. table is lowered so age, and unless in covered employment in For all others (including present beneficiaries) that the average pri• entire period reduced by percentage of time and those with "new start" if it produces a mary benefit is in• creased by 77 1/2per • out of covered employment since 1936 or larger benefit, the benefit is computed under cent, as indicated by 1949, whichever gives smaller reduction. existing law (but with no 1-percent increase the following tabula• Benefits of present beneficiaries increased for years after 1950) and then increased by tion for certain Illus• by conversion table that gives effect to new conversion table; the average primary bene• trative cases: benefit formula and new average wage con• fit will be increased on the average by 85 cept; the average primary benefit will be in• percent, as indicated by the following tabu• creased by 70 percent, with somewhat lation for certain illustrative cases: greater relative increases for those receiving smallest amounts, as indicated by the fol• lowing tabulation for certain illustrative cases: Primary insurance benefit Primary insurance amount Primary insurance amount Primary insurance amount $10.00 $25.00 $20.00 $20.00 15.00 30.90 31.00 30.00 20.00 36.30 37.00 37.00 25.00 44.50 48.50 46.50 30.00 50.90 56.20 54.00 35.00 55.40 62.20 59.20 40.00 59.90 67.60 64.00 45.00 64.40 72.50 68.50 (c) Minimum primary benefit, $10. $25. $25, unless average monthly wage is less than $25 unless average $34—then $20. monthly wage is less than $35—then grad• ed down to $20 for average monthly wage of $30 or less. Same as House bill. (d) Maximum family benefit, $85 or 80 percent of average wage or twice the pri• $150, or 80 percent of average wage if less (but Same as House bill. mary benefit, whichever is least (but in in no case less than $40). no case less than $20), Chart 2.—Principal changes in the Social Security Act under the 1950 amendments—as passed by the House of Repre• sentatives, as passed by the Senate, and as enacted—Continued

Old law j 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 ben• No change. No change. No change. efit. (c) Child, one half of primary benefit. No change, except for deceased worker family, Same as House bill. Same as House bill. when first child gets three-quarters of pri• mary benefit. (d) Parent, one-half of primary benefit. Three-quarters of primary benefit. Same as existing law. Same as House bill. Three times primary benefit. Same as House bill. Same as House bill. (e) Lump sum at death, sixtimes primary benefit.

(5) Amount of employment permitted beneficiary for benefit receipt (work clause)

No benefits paid for month in which $15 Same except $15 limit is increased to$50 and no Same as House Bill. Same as House bill. or more earned in covered employment. limitation at all after age 75.

(6) Covered employment

All employment except self-employment In addition to existing coverage, includes the Same as House bill except: Same as Senate bill and employment in Federal and State following groups: (a) Coverage of regularly employed farm except: Governments, railroads, nonprofit (a) Nonfarm self-employed other than certain workers, based on 60 days of work during a (a) Coverage of regu• (charitable, educational, and religious), professions (physicians, lawyers, dentists, quarter; larly employed farm agriculture, and domestic service. Em• osteopaths, veterinarians, chiropractors, (b) Exemption from coverage as professional workers based on 60 ployment covered only in the 48 States, optometrists, Christian Science practition• self-employed extended to architects, natu• full days of work dur• the District of Columbia, Alaska, and ers, and certain professional engineers); ropaths, certified, licensed, and registered ing a quarter if work• Hawaii, and on American ships outside (b) State and local government employees on public accountants, funeral directors and all er had continuous the United States under certain circum• elective basis by the State, except that, where professional engineers (instead of certain employment with the stances. retirement system exists, employees and named ones), while publishers are covered; same employer during beneficiaries must favor by two-thirds ma• (c) Coverage of regularly employed nonfarm a preceding 3-month jority in referendum, and except for certain domestic servants, based on 24 days of work period; transit workers who are covered compul- during a quarter; (b) Exemption from sorily; (d) Coverage of nonprofit employees on com• coverage as profes• (c) Regularly employed nonfarm domestic pulsory basis for nonreligious organizations sional self-employed servants (based on 26 days of work during a and on completely voluntary basis for reli• extended to full-time quarter); gious organizations; practicing public ac• (d) Employees of nonprofit institutions other (e) Coverage of Federal civilian employees not countants; than ministers (on compulsory basis for em• covered by a retirement system clarified and (c) Coverage of non• ployees and voluntary basis for employer); extended to those occupying positions pend• profit employees on (e) Agricultural processing workers off the ing permanent or indefinite appointment; voluntary basis. Em• farm; (f) Coverage not permitted for State and local ployer must elect (f) Federal employees not covered under re• employees covered by an existing retirement coverage, and at tirement system other than those in very plan; least two-thirds of temporary or casual employment; (g) Definition of "employee" restricted to employees must con• (g) Americans employed by American em• strict common-law basis except for following cur in coverage. Then ployer outside the United States and em• named occupational groups covered as "em• all employees con• ployees on American aircraft outside the ployees": full-time life insurance salesmen; curring in coverage United States in the same manner as for agent-drivers and commission-drivers dis• and all new employ• ships; tributing meat products, bakery products, ees are covered; (h) Employment in Puerto Rico and Virgin or laundry or dry cleaning services; and full- (d) Additional occu• Islands; time wholesale salesmen; pational groups cov• (i) Salesmen and certain other employees who (h) Tips not included as wages as in existing ered as "employees": were deprived of coverage as employees by law. agent - drivers and Public Law 642, Eightieth Congress; commission - drivers (j) Tips reported to the employer included as distributing vege• wages. table or fruit prod• ucts or beverages (other than milk) and industrial homeworkers earning at least $50 during a quarter if subject to regulation under State law and work• ing under specifica• tions supplied by employer.

(7) Permanent and total disability benefits

None. For worker both currently insured and having None. None. 20 quarters of coverage out of last 10 years. Amount of primary benefit determined as for retired worker. No benefit for depend• ents of disabled worker. Benefits begin in January 1951.

(8) Wage credits for World War II service

None. World War II veterans (including those who Same as House bill except that credit not given Same as Senate bill. died in service) given wage credits of $160 for if service is used for any other Federal retire• each month of military service in World ment system and except that additional cost War II. is to be borne by trust fund (instead of by General Treasury as in House bill). Chart 2.—Principal changes in the Social Security Act under the 1950 amendments—as passed by the House of Repre• sentatives, as passed by the Senate, and as enacted—Continued

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 1 1/2percen t on employer and 1 1/2 percent on Same as House bill, except that increase to 2 Same as Senate bill, employee through 1949, 1 1/2 percent for employee for 1950, 2 percent for 1951-59, 2 1/2 percent is in 1956 instead of 1951 and except except that increase 1950-51, and 2 percent thereafter. percent for 1960-64, 3 percent for 1965-69, and that nonprofit employment when covered is to 2 percent is in 1954. 3 1/4 percent thereafter, except— on same basis as all other employment. (a) For self-employed, 1 1/2 times rate for em• ployees. Self-employment income taxed would be, in general, net income from trade or business; (o) For nonprofit employment, no tax is im• posed on employer, who can pay it voluntar• ily. If employer does not pay tax, employee receives credit for only 50 percent of his taxed wages.

(11) Appropriations from general revenues

Appropriations authorized for such sums Provision in existing law repealed. Same as House bill. Same as House bill. as may be required to finance the program.

(12) Time within which benefit payments must be claimed

(a) Monthly benefits payable retroactively forSam 3 monthse as existin beforeg monthlaw excep of application.t that perio d ex• Same as House bill. Same as House bill. tended to 6 months. Same as House bill. Same as House bill. (b) Lump-sum death payments must be claimedSame within as existing 2 years law of except death. that for deathsoutsid e continental United States during war period, lump sum may be claimed any time before 1952.

PUBLIC ASSISTANCE (1) Groups eligible for aid

Three categories defined for assistance Fourth category provided for permanently Same as House bill except fourth category (aid Same as House bill, purposes as needy persons—(1) 65 years and totally disabled individuals who are in to disabled) not provided for. except that perma• of age and over, (2) blind, and (3) need. For aid to dependent children the nently and totally children under 16 years of age and chil• mother or other relative with whom a disabled individuals dren aged 16-17, if they are regularly dependent child is living is included as a must he at least 18 attending school. recipient for Federal matching purposes. years old.

(2) Federal share of public assistance expenditures

Federal share for old-age assistance and Federal share for old-age assistance, aid to the Same as existing law, except that individual Same as existing law; aid to blind is three-fourths of first $20 blind, and aid to the permanently and maximums for aid to dependent children except that relative of a State's average monthly payment totally disabled is four-fifths of the first $25 are raised from $27 to $30 for the relative with with whom children plus one-half of the remainder within of a State's average monthly payment, plus whom the children are living and for the are living is included individual maximums of $50; for aid to one-half of the next $10, plus one-third of first child and from $18 to $20 for all other for Federal matching dependent children, three-fourths of the the remainder within individual maximums children and except that for old-age assist• purposes within in• first $12 of the average monthly pay• of $50; for aid to dependent children, four- ance payments supplementing old-age insur• dividual maximum ment per child, plus one-half the re• fifths of the first $15 of the average monthly ance benefits for those first becoming entitled of $27 a month. mainder within individual maximums payment per recipient, plus one-half of the to such benefits in or after the second Matching basis for of $27 for the first child and $18 for each next $6, plus one-third of the next $6 within additional child in a family. Adminis• month after enactment, Federal share is on aid to disabled same trative costs shared 50 percent by individual maximums of $27 for the relative a 50-50 basis. as for old-age assist• Federal Government and 50 percent by with whom the children are living, $27 for ance. States. the first child, and $18 for each additional child in a family. Administrative costs same basis as present law.

(3) Medical care

Federal sharing in costs of medical care Federal Government will share in cost of pay• Same as House bill, except that no plan for aid Same as Senate bill, limited to amounts paid to recipients ments made directly to medical practitioners to disabled is provided and except for specific except that plan for that can be included within the monthly and other suppliers of medical services, authorization for Federal Government to aid to disabled is maximums on individual payments. which when added to any money paid to the share in direct payments made to suppliers provided. No State-Federal assistance provided individual, does not exceed the monthly of remedial care as well as to suppliers of persons in public institutions unless maximums on individual payments. Fed• medical care. they are receiving temporary medical eral Government shares in the cost of pay• care in such institutions. ments 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. Chart 2.—Principal changes in the Social Security Act under the 19S0 amendments—as passed by the House of Repre• sentatives, as passed by the Senate, and as enacted—Continued

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, No change in requirements for old-age assist• Same as existing law. Same as Senate bill, ex• a State may not require, as a condition ance and aid to dependent children. For aid cept that for aid to of eligibility, residence in a State for more to the blind, effective July 1, 1951, a State the permanently and than 5 of the 9 years immediately preced• may not require, as a condition of eligibility, totally disabled, resi• ing application and 1 continuous year residence in the State for more than 1 contin• dence requirement is before filing the application. For aid to uous year before the filing of the application same as that for old- dependent children, the maximum for aid. For aid to the permanently and age assistance and aid requirement for the child is 1 year of totally disabled, no State may impose a to the blind. residence immediately preceding appli• residence requirement more restrictive than cation, or if the child is less than a year that in its plan for aid to the blind on July 1, old, birth in the State and continuous 1949, and beginning July 1, 1951, the maxi• residence by the mother in the State for mum residence requirement is 1 year imme• 1 year preceding the birth. diately preceding the application for aid. (All other requirements for aid to the permanently and totally disabled are the same as for old-age assistance.)

(b) Income and resources

For the three categories a State must, in Provision in existing law is made applicable to Effective July 1, 1952, a State must disregard Same as Senate bill. determining need, take into considera• aid to the permanently and totally disabled. earned income, up to $50 per month, of an tion the income and resources of an For aid to the blind, effective October 1, individual claiming aid to the blind; before individual claiming assistance. 1949, a State may disregard such amount of July 1, 1952, the exemption of earned income, earned income, up to $50 per month, as the up to $50 per month, is discretionary with State vocational rehabilitation agency for each State. Same income and resources the blind certifies will serve to encourage or provisions as in existing law for the other assist the blind to prepare for or engage in categories. 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 arising from blindness.

No provision. For the period October 1, 1949, to June 30, 1953, Same as House bill except that provision Same as House bill any State that did not have an approved applies after October 1, 1950, and with no except that provision plan for aid to the blind on January 1, 1949, termination date. applies after October shall have its plan approved even though it 1, 1950, and termi• does not meet the requirements of clause (8) nates June 30, 1955. 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 re• sources requirement of the act.

(d) Examination to determine blindness

No provision. A State aid to the blind plan must provide A State aid to the blind plan must provide Same as House bill, but that, in determining blindness, there shall that, in determining blindness, there shall mandatory July 1, be an examination by a physician skilled in be an examination by a physician skilled in 1952, and discretion• diseases of the eye or by an optometrist. diseases of the eye. Also the plan must pro• ary with each State vide that the services of optometrists within prior thereto. 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.

(e) Assistance to be furnished promptly

No specific provision relating to oppor• Opportunity must be afforded all individuals Same as House bill but clarified. Same as Senate bill. tunity to apply for assistance promptly. to apply for assistance, and assistance must be furnished promptly to ail eligible indi• viduals.

(f) Fair hearing

Fair hearing must be provided individual Fair hearing must be provided by State agency Same as House bill but clarified. Same as Senate bill. whose claim for assistance is denied. to individual whose claim for assistance is No specific provision for individual denied or not acted upon within reasonable whose claim is not acted upon within a time. reasonable time. Chart 2.—Principal changes in the Social Security Act under the 1950 amendments—as passed by the House of Repre• sentatives, as passed by the Senate, and as enacted—Continued

Old law H. R. 6000 as passed by House H. R. 6000a s passed by Senate New law

(g) Standards for institutions

No provision. If a State plan for old-age assistance, aid to the Same as House bill. Same as House bill. blind, or aid to the permanently and totally disabled provides for payments to individ• uals in private or public institutions, the State must have a State authority to estab• lish and maintain standards for such insti• tutions. (Effective July 1, 1953.)

(h) Training program for personnel

No specific provision. States must provide a training program for No specific provision. Same as Senate bill. the personnel necessary to the administra• tion of the plan.

(i) Notification to law enforcement officials

No provision. In aid to dependent children the States must Same as House bill. Same as House bill. 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.

(5) Puerto Rico and the Virgin Islands

Federal funds for public assistance not The four categories of assistance are extended Same as existing law. Same as House bill, ex• available to Puerto Rico and the Virgin to Puerto Rico and the Virgin islands. The cept that maximum Islands. Federal share for old-age assistance, aid to annual Federal grant the blind, and aid to the permanently and shall be $4,250,000 for totally disabled is limited to one-half the Puerto Rico and total sums expended under an approved $160,000 for the Vir• plan up to a maximum payment for any gin Islands. 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 maxi• mums of $18 for the first child and $12 for each additional child in a family. Admin• istrative costs are matched by the Federal Government on a 50-50 basis.

MATERNAL AND CHILD HEALTH AND CHILD WELFARE SERVICES (1) Maternal and child health services

Authorizes an annual appropriation of Same as existing law. Authorization for annual appropriation in• Same as Senate bill $11,000,000. One-half this amount is creased to $20,000,000 and the $35,000 uni• except that annual distributed among the States as follows: form allotment to each State is increased to authorization is $35,000 to each State, and the remainder $60,000. Otherwise, the provisions of pres• $15,000,000 for fiscal on the basis of the relative number of ent law relating to the apportionment of year beginning July live births in the State. The second funds are unchanged. (Effective for fiscal 1, 1950, and $16,500,000 half is distributed among the States on years beginning after June 30, 1950.) for subsequent years. the basis of the financial need of each State after consideration of the number of live births in the State.

(2) Services for crippled children

Authorizes an annual appropriation of Same as existing law. Authorization for annual appropriation in• Same as Senate bill $7,500,000. One-half this amount is dis• creased to $15,000,000 and the $30,000 annual except that annual tributed among the States as follows: allotment to each State is increased to authorization is $30,000 to each State, and the remainder $60,000. Otherwise, the provisions of pres• $12,000,000 for fiscal on the basis of need after consideration ent law relating to the apportionment of year beginning July of the number of crippled children in the funds are unchanged. (Effective for fiscal 1, 1950, and $15,000,000 State needing services and the cost of years beginning after June 30, 1950.) for subsequent years such services. The second half is dis• tributed on the same basis of need.

(3) Child welfare services

Authorizes an annual appropriation of Authorization for annual appropriation in• Same as House bill except that annual author• Same as Senate bill $3,500,000 for grants to the States for creased to $7,000,000 and the $20,000 now ization is increased to $12,000,000 and except except that annual child welfare services in rural areas and allotted to each State is increased to $40,000 that allotment is on basis of rural population authorization is areas of special need. Funds allotted to with the remainder to be allotted on the under age 18. (Effective for fiscal years be• $10,000,000. States with approved plans as follows: basis of rural population of the respective ginning after June 30, 1950.) Also provision $20,000 to each State and remainder on States. Specific provision is made for the added that in developing the various services basis of rural population of the respective payment of the cost of returning any run• under the State plans, the States would be States. away child under age 16 to his own com• free, but not compelled, to utilize the facili• munity in another State if such return is in ties and experience of voluntary agencies for the interest of the child and the cost cannot the care of children in accordance with State otherwise be met. (Effective for fiscal years and community programs and arrangements. beginning after June 30, 1950.)