[1996 Green Book]SECTION 13. FEDERAL SOCIAL WELFARE PROGRAMS IN OUTLYING AREAS

[1996 Green Book] SECTION 13. FEDERAL SOCIAL WELFARE PROGRAMS IN OUTLYING AREAS

Table 13-1 shows the outlying areas in which the major Federal social welfare programs are in effect and those areas in which they are not in effect.

The word ``yes'' in the column headed ``covered'' under each outlying area designates that Federal law permits the program to operate in that area. The column headed ``special rules'' notes whether the program operates in that area according to the same rules that apply in the States or according to different rules. The notes to the table explain the nature of any special rules.

The programs included in the table are:
--Aid to families with dependent children (AFDC)
--Aid to the aged, blind, or disabled (AABD)
--Supplemental security income (SSI)
--Food stamps
--Medicaid
--Medicare
--Old-age, survivors, and disability insurance (OASDI)
--Unemployment compensation
--Earned income tax credit (EITC)
--Maternal and child health (MCH) block grant
--Title IV-B child welfare services
--Title IV-E foster care and adoption assistance
--Title XX social services
--School lunch and school breakfast
--Special supplemental food program for women, infants, and children (WIC)
--Summer food service
--Child care food

In general, extension of these programs to jurisdictions other than States requires that the law authorizing the program specify the area as eligible to participate. Thus, where the table indicates that the area is not covered (``no'' under the column headed ``covered''), the program cannot be implemented without a change in Federal law.

In some cases, a program is available to outlying areas by law, but the jurisdiction has not implemented it (these programs are noted by footnotes ``2'', ``3'' or ``14''). In addition, all programs administered by the U.S. Department of Agriculture may be extended to outlying areas at the discretion of the Secretary of Agriculture, even though the area is not specifically mentioned in the authorizing legislation. (These programs are noted by footnote ``7''.) Where such programs have not been implemented, they could be if the Secretary were to authorize operation.

TABLE 13-1.--FEDERAL SOCIAL WELFARE PROGRAMS IN THE OUTLYING AREAS

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                                             Puerto Rico                       Virgin Islands                           Guam                          Northern Marianas                    American Samoa             Marshall Islands and Micronesia             Palau         

                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

            Program                                                                                                                                                                                                                                                      Special

                                      Covered        Special rules        Covered        Special rules        Covered        Special rules        Covered        Special rules        Covered        Special rules        Covered       Special rules       Covered       rules 

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AFDC...........................  Yes.............  Yes \1\.........  Yes.............  Yes \1\.........  Yes.............  Yes \1\.........  Yes \2\.........  Yes \2\.........  Yes \3\.........  Yes \3\.........  No..............  ...............  No.............  .......

AABD...........................  Yes.............  No..............  Yes.............  No..............  Yes.............  No..............  No \2\..........  ................  No..............  ................  No..............  ...............  No.............  .......

SSI............................  No..............  ................  No..............  ................  No..............  ................  Yes.............  No..............  No..............  ................  No..............  ...............  No.............  .......

Food stamps....................  Yes \4\.........  Yes \4\.........  Yes.............  Yes \5\.........  Yes.............  Yes \5\.........  Yes.............  Yes \6\.........  No \7\..........  ................  No..............  ...............  No.............  .......

Medicaid.......................  Yes.............  Yes \8\.........  Yes.............  Yes \8\.........  Yes.............  Yes \8\.........  Yes.............  Yes \8\.........  Yes.............  Yes \8\.........  No..............  ...............  No.............  .......

Medicare.......................  Yes.............  Yes \9\.........  Yes.............  Yes \10\........  Yes.............  Yes \10\........  Yes.............  Yes \10\........  Yes.............  Yes \10\........  No..............  ...............  No.............  .......

OASDI..........................  Yes.............  No..............  Yes.............  No..............  Yes.............  No..............  Yes.............  No \11\.........  Yes.............  No..............  No..............  ...............  No.............  .......

Unemployment compensation......  Yes.............  No..............  Yes.............  No..............  No..............  ................  No..............  ................  No..............  ................  No..............  ...............  No.............  .......

                                                                                                                                                                                                                                                                                

EITC...........................  No \12\.........  ................  No \12\.........  ................  No \12\.........  ................  No \12\.........  ................  No \12\.........  ................  No \12\.........  ...............  No \12\........  .......

Maternal/child health..........  Yes.............  No..............  Yes.............  No..............  Yes.............  No..............  Yes.............  No..............  Yes.............  No..............  Yes.............  No.............  Yes............   No    

Child welfare..................  Yes.............  Yes \13\........  Yes.............  Yes \13\........  Yes.............  Yes \13\........  Yes.............  Yes \13\........  Yes.............  Yes \13\........  No..............  ...............  No.............  .......

Foster care/adoption...........  Yes \14\........  Yes \13\........  Yes \14\........  Yes \13\........  Yes \14\........  Yes \13\........  Yes \14\........  Yes \13\........  Yes \3\.........  Yes \3\.........  No..............  ...............  No.............  .......

Social services................  Yes.............  Yes \13\........  Yes.............  Yes \13\........  Yes.............  Yes \13\........  Yes \14\........  Yes \13\........  Yes.............  Yes \13\........  No..............  ...............  No.............  .......

School lunch/breakfast.........  Yes \15\........  Yes \17\........  Yes.............  Yes \17\........  Yes.............  Yes \17\........  Yes.............  Yes \17\........  Yes.............  Yes \16\........  No..............  ...............  Yes............  Yes \18

                                                                                                                                                                                                                                                                             \  

WIC............................  Yes.............  No..............  Yes.............  No..............  Yes.............  No..............  Yes \14\........  No..............  Yes \14\........  No..............  No..............  ...............  Yes \14\.......   No    

Summer food service............  Yes.............  No..............  Yes.............  No..............  Yes \14\........  No..............  Yes \14\........  No..............  Yes \14\........  No..............  No..............  ...............  Yes \14\.......   Yes   

Child care food................  Yes.............  No..............  Yes.............  No..............  Yes.............  No..............  Yes \14\........  No..............  Yes \14\........  No..............  No..............  ...............  Yes \14\.......  Yes    

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\1\ The Federal matching rate is 75 percent rather than a rate based on per capita income. However, the Social Security Act sets a dollar maximum on Federal payments for AFDC, emergency assistance, AABD, and foster care and adoption assistance, combined.
                  

\2\ The Northern Mariana Islands do not operate an AFDC or an AABD Program. However, section 502 of Public Law 94-241 specifies that all Federal services and financial assistance programs applicable to Guam shall be applicable to the Northern Marianas. Nevertheless, this 

  provision is irrelevant with respect to the AABD Program because the Northern Marianas operate the SSI Program which replaces AABD. 
                                                                                                                                          

\3\ Since October 1, 1988, American Samoa has been eligible to participate, but has not implemented this program. If the program were implemented, the Federal matching rate would be 75 percent. However, the Social Security Act sets a dollar maximum on Federal payments for

  both AFDC and foster care and adoption assistance, combined. 
                                                                                                                                                                                                                 

\4\ Puerto Rico receives a block grant of Federal funds with which it operates a cash Nutrition Assistance Program for needy households under rules similar to food stamps.
                                                                                                     

\5\ The regular Food Stamp Program operates in the Virgin Islands and Guam, except that benefit levels differ from those for the 48 contiguous States (recognizing substantially higher food prices), and the degree to which recipients' income is ``disregarded'' for         

  excessively high nonfood living expenses differs from the 48 States (recognizing significant differences in costs of living). Similar adjustments also are made for Alaska and Hawaii. 
                                                                                       

\6\ Under the terms of the 1976 covenant with the Commonwealth and Public Law 96-597, a variant of the regular Food Stamp Program operates in the Northern Marianas. The Commonwealth is eligible for an annual grant of up to $3.7 million for food-stamp-like benefits and    

  administration, but unused amounts may be carried over from year to year.
                                                                                                                                                                                                     

\7\ Section 24 of the Food Stamp Act requires the annual payment of up to $5.3 million to American Samoa to operate a variant of the regular Food Stamp Program. Food stamps were first extended to American Samoa in fiscal year 1994, under the Secretary of Agriculture's    

  discretionary authority to extend the Food Stamp Program (and other Agriculture Department programs) to American Samoa, with any special rules he might specify. 
                                                                                                             

\8\ The Federal matching rate is 50 percent rather than a rate based on per capita income; Sec. 1108(c) of the Social Security Act sets a dollar maximum on Federal Medicaid payments to the territories. 
                                                                   

\9\ Hospital reimbursement rates under the prospective payment system in Puerto Rico are lower than in the States.
                                                                                                                                                              

\10\ Hospital prospective payment system is not applicable.
                                                                                                                                                                                                                     

\11\ Currently operating under transitional rules until coverage is complete.
                                                                                                                                                                                                   

\12\ Some U.S. Government employees who are subject to the U.S. income tax while assigned to work in a U.S. territory might be eligible for EITC, but the general population would not be eligible.
                                                                             

\13\ Special rules govern how funding allocations are made to these jurisdictions (or would govern if the jurisdiction elected to implement the program), as distinct from the way allocations are made to States. 
                                                             

\14\ Jurisdiction is eligible to participate, but has chosen not to implement this program.
                                                                                                                                                                                     

\15\ Definition of ``school'' includes nonprofit child care centers in Puerto Rico. 
                                                                                                                                                                                            

\16\ American Samoa receives an annual grant to operate its school food service programs.
                                                                                                                                                                                       

\17\ Different payment rates for meals served apply to Puerto Rico, the Virgin Islands, Guam, and the Northern Marianas.
                                                                                                                                                        

\18\ Palau receives an annual grant to operate its school food service and other child nutrition programs. In fiscal year 1994, it received $1.1 million under this grant. Under the terms of its 1994 Covenant, Palau's annual child nutrition grant is to be phased in over   

  fiscal years 1997-99.                                                                                                                                                                                                                                                         

                                                                                                                                                                                                                                                                                

Source: Congressional Research Service.

Table 13-2 shows the benefit expenditures for the territories for the programs of old-age assistance, aid to the blind, aid to the permanently and totally disabled, aid to families with dependent children (AFDC), supplemental security income (SSI), food stamps, child nutrition, and special supplemental food program for women, infants, and children (WIC) for fiscal years 1970-94. As can be seen in the table, total expenditures for the nutrition programs, including food stamps and programs such as school lunch and school breakfast, overwhelm the amount of money spent on programs such as AFDC. This variation exists because AFDC and other cash assistance programs are capped at significantly lower levels than the nutrition programs.

TABLE 13-2.--TOTAL BENEFIT EXPENDITURES BY THE TERRITORIES ON ADULT PROGRAMS, AFDC, SSI, FOOD STAMPS, CHILD NUTRITION, AND WIC, SELECTED YEARS 1970-93

[In thousands of dollars]                                           

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                                                                     Fiscal year                                

             Territory             -----------------------------------------------------------------------------

                                       1970       1975       1980       1985       1990       1992       1994   

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Guam:                                                                                                           

    Old-age assistance............       $191       $432       $645       $757     $1,425     $1,455      $2,859

    Aid to the blind..............          5          5         13          7          6          3           3

    Aid to permanently and totally                                                                              

     disabled.....................         37        113        213        308        323        222         243

    Aid to families with dependent                                                                              

     children.....................        708      1,728      3,324      2,683      5,047      7,800      12,063

    Supplemental security income..         NA         NA         NA         NA         NA         NA          NA

    Food stamps...................         NA      3,540     14,581     18,316     14,522     28,230      21,815

    Child nutrition \1\...........    \3\ 380  \3\ 1,250      2,670      3,680      3,060      3,166       3,889

    WIC \2\.......................         NA         NA         NA      1,270      2,490      3,068       5,126

Puerto Rico:                                                                                                    

    Old-age assistance............      3,390      4,000      4,309      6,676      6,446      6,317       5,870

    Aid to the blind..............        116         73         58        118        135        128          99

    Aid to permanently and totally                                                                              

     disabled.....................      2,342      2,738      3,930      9,909     11,399     12,781      11,913

    Aid to families with dependent                                                                              

     children.....................     25,261     26,434     59,105     62,953     73,162     75,291      73,943

    Supplemental security income..         NA         NA         NA         NA         NA         NA          NA

    Food stamps...................         NA    261,006    825,126    789,400    895,474    972,561   1,049,500

    Child nutrition \1\...........  \3\ 13,34                                                                   

                                            0  \3\ 44,14                                                        

                                                       0     84,200    131,350    137,860    149,609     159,700

    WIC \2\.......................         NA  \3\ 2,210     17,140     57,970     87,780    105,903     121,160

Virgin Islands:                                                                                                 

    Old-age assistance............        163        186        191        224        303        329         306

    Aid to the blind..............          4          5          4          3         13          6           7

    Aid to permanently and totally                                                                              

     disabled.....................         32         73        152        200        434        431         354

    Aid to families with dependent                                                                              

     children.....................        633      1,928      1,397      2,795      2,958      3,500       3,458

    Supplemental security income..         NA         NA         NA         NA         NA         NA          NA

    Food stamps...................         NA      5,916     18,951     23,061     18,355     18,517      22,547

    Child nutrition \1\...........    \3\ 380  \3\ 1,960      3,560      5,330      4,250      4,416       5,636

    WIC \2\.......................         NA    \3\ 610      1,120      3,980      4,780      5,223       5,754

Northern Marianas:                                                                                              

    Supplemental security income..         NA         NA      1,379      1,784      1,926      2,045       2,357

    Food stamps...................         NA         NA         NA      2,000      1,585      1,858       3,552

    Child nutrition \1\...........         NA         NA        270      2,000      2,540      2,746       2,778

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\1\ Child nutrition includes school lunch, school breakfast, child care food, summer service, nutrition         

  education and training, State administrative expenses, and special milk programs. Also includes the value of  

  commodities provided for meal service programs, except where otherwise noted.
                                 

\2\ WIC amounts reflect the value of monthly food packages and costs for nutrition services and administration.
 

\3\ Cash assistance only. Data not available on commodity donations for these years.
                            

                                                                                                                

NA--Not available.                                                                                              

                                                                                                                

Note.--AFDC = Aid to Families with Dependent Children; SSI = Supplemental Security Income; WIC = Special Supplemental Food Program for Women, Infants, and Children.

Source: Congressional Research Service.

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