The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
b
-x
'■
>'
"S, "
_
*
r\+
j Q|
^
CONTENTS
Page
General provisions___________________________________________________________ _
Provisions of title V , grants to States for maternal and child welfare_____
Maternal and child-health services______________________________________
Purpose o f Federal grants__________________________________________
Federal administration______________________________________________
Amounts available to States________________________________________
Requirements for State plans______________________________________
Method o f payment__________________________________________________
Provisions for withholding payments under approved plans______
Services for crippled children______ ___________________________ ________ _
Purpose o f Federal grants___________________________________________
Federal administration______________________________________________
Amounts available to States________________________________________
Requirements for State plans_______________________________________
Method of payment________________________________;_________________
Provisions for withholding payments under approved plans______
Child-welfare services_____________________________________________________
Purpose of Federal grants___________ _______ _______ ________ _______
Federal administration______________________________________________
Amounts available to States and conditions under which grants
may be made______________________________________________________
Method o f payment__________________________________________________
Other titles of the Social Security Act that provide direct benefits for
children_______________________________________________________________________
Aid to dependent children________________________________________________
Old-age and survivors insurance benefits_______________________________
State agencies administering services under title V , parts 1, 2, and 3 ______
Text of the sections of the Social Security Act relating to grants to States
for maternal and child welfare, as amended in 1939______________________
Title V .— Grants to States for maternal and child welfare_____________
Part 1.— Maternal and child-health services_______________________
Part 2.— Services for crippled children_____________________ _
Part 3.— Child-welfare services_________________________
Part 5.— Administration_____________
Title X I .— General provisions____________________________________________
Chart showing provisions for grants to States for maternal and child
welfare---------------------------------------------------------- ----------------------------------- (Facing)
III
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1
3
6
6
6
6
8
8
9
9
9
10
10
10
12
12
12
12
12
12
13
14
14
15
16
20
20
20
22
24
25
25
26
.
'
'
I
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
!
Grants to States for Maternal and Child Welfare
Under the Social Security Act of 1935 and the
Social Security Act Amendments of 1939
GENERAL PROVISIONS 1
The purpose of the Social Security Act, approved by the President
August 14, 1935, is stated in the general title of the act to be the
following:
To provide for the general welfare b y establishing a system
o f Federal old-age benefits, and b y enabling the several States
to m ake m ore adequate provision for aged persons, blind per
sons, dependent and crippled children, m aternal and child
welfare, public health, and the adm inistration o f their u n em
ploym en t-com p en sa tion laws; to establish a Social Security
Board; to raise revenue; and for oth er purposes.
The act, as amended, includes the following titles:
I.
II.
III.
IV .
V.
V I.
V II.
V III.
Grants to States for old-age assistance.
Federal old-age and survivors insurance benefits.
Grants to States for unemployment-compensation administration.
Grants to States for aid to dependent children.
Grants to States for maternal and child welfare.
Public-health work.
Social Security Board.
Taxes with respect to employment (now contained in Internal
Revenue Code). 2
I X . Tax on employers o f eight or more (now contained in Internal
Revenue C od e).2
X . Grants to States for aid to the blind.
X I . General provisions.
The term “ State” as used in the Social Security Act (except in
title V, part 4, vocational rehabilitation) includes the 48 States, the
District of Columbia, Alaska, and Hawaii, and, beginning January 1,
1940, when used in all parts of title V and in title VI, includes Puerto
Rico also.
1 Public, No. 271, 74th Cong., 49 Stat. 629; Public, No. 379, 76th Cong., 53 Stat. 1360.
1The provisions o f title V III and o f title I X (except sec. 904) as included in the original Social
Security Act are now contained in and superseded by subchs. A and C, respectively, o f ch. 9 o f the
Internal Revenue Code.
1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
2
G rants to S tates fo r M aternal and Child W elfare
Responsibility for the administration of the various parts of the
Social Security Act is placed in several Federal agencies as follows:
The Social Security Board 3 of the Federal Security Agency ad
ministers—
Title I. Grants to States for old-age assistance.
Title II. Federal old-age and survivors insurance benefits.
Title III. Grants to States for unemployment-compensation adminis
tration.
Title IV . Grants to States for aid to dependent children.
Title X . Grants to States for aid to the blind.
The Children’s Bureau of the United States Department of Labor
administers—
Title V . Grants to States for maternal and child welfare: Part 1,
Maternal and child-health services; part 2, Services for crippled children;
and part 3, Child-welfare services.
The Office of Education 8 of the Federal Security Agency admin
isters—
Title V . Grants to States for maternal and child welfare: Part 4, Voca
tional rehabilitation.
The Public Health Service 3 of the Federal Security Agency admin
isters—
Title V I. Public-health work.
* Under the President’s Reorganization Plan No. I, part 2, made effective July 1, 1939, by Public
Res. No. 20, 76th Cong., approved June 7, 1939, the Federal Security Agency was established and
the Social Security Board, the Office o f Education, and the Public Health Service (among other
agencies) became part o f the Federal Security Agency.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
PROVISIONS OF TITLE V, GRANTS TO STATES
M ATERNAL AND CHILD W ELFARE 1
FOR
The annual appropriations authorized in the act as amended are as
follows:
Maternal and child-health services______________________ $5, 820, 000
Services for crippled children_______________________ ____
3, 870, 000
Child-welfare services____________________________________
1, 510, 000
T o ta l-.............................................. ..................................... 1 1 ,2 0 0 ,0 0 0
An appropriation was also authorized to enable the Children’s
Bureau to carry on necessary administrative functions and to make
such studies and investigations as may be necessary to promote the
efficient administration of the three parts of the act for which it is
responsible. The Children’s Bureau provides consultation service to
State agencies in relation to the three programs. State plans request
ing Federal grants are submitted to the Chief of the Children’s Bureau,
who approves them when they are in conformity with the requirements
of the act.
Allotments to States for the three services are made each year by
the Secretary of Labor, who is directed to include in his annual report
to Congress a full account of the administration of the sections of the
act that are administered by his Department. The Secretary also
prescribes the kinds of reports and types of information to be furnished
by the cooperating State agencies, and makes such investigations as
may be necessary to determine the amounts to be paid to the States.
The Secretary is authorized to withhold payments to a State under
prescribed conditions (p. 9). All certifications of amounts to be
paid to States by the Secretary of the Treasury are made by the
Secretary of Labor.
The State agencies having administrative or supervisory responsi
bility under the sections of the act under consideration are the
following:
Maternal and child-health services________ State health agency.
Services for crippled children______________ The State agency responsible for med
ical care for crippled children.2
Child-welfare services______________________ State public-welfare agency.
1Except sec. 531, which deals with vocational rehabilitation. For text o f pertinent sections of the
act, see p. 20.
3The State agencies administering services for crippled children on Aug. 1, 1940, were as follows*
Health departments, 27; welfare departments, 14; crippled children’s commissions, 5; departments
o f education, 5; State university hospital, 1.
3
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
4
G rants to S tates fo r M aternal and Child W elfare
As to maternal and child-health services and services for crippled
children, the act requires that the plans submitted by the State
agencies shall include provision for cooperation with medical, nursing,
health, and welfare groups and organizations, and, in the case of
services for crippled children, with the State agency that is charged
with responsibility for administering State laws for vocational reha
bilitation of physically handicapped children. Plans for child-welfare
services must be developed jointly by the State public-welfare agency
and the Children’s Bureau; and, although the content of the plans is
not prescribed in the act, State plans are developed with a view to the
establishment of cooperation with all groups concerned with the wel
fare of children, so as to avoid duplication and provide maximum
service.
The strengthening of local services is emphasized in all three parts
of title V relating to child welfare. State plans submitted for maternal
and child-health services must show that their operation will assist in
the extension and improvement of local maternal and child-health
services. The sections of the act relating to crippled children’s serv
ices provide for the extension and improvement of services, especially
in rural areas and in areas suffering from severe economic distress.
The funds for child-welfare services are to be used for payment o f part
of the cost of local services and for developing State services for the
encouragement and assistance of community child-welfare organiza
tion, chiefly in areas predominantly rural.
Public funds expended for maternal and child-health services and
services for crippled children by political subdivisions of a State may
be counted in the matching funds made available by the State. Private
funds can be used for matching purposes only if they are paid into the
public treasury or if they otherwise are made fully available for public
expenditure.
All allotments to States from maternal and child-health funds and
from crippled children’s funds for which State matching is required
and from child-welfare funds are available until the end of the second
fiscal year succeeding that for which the appropriation was m adein other words, for 3 consecutive fiscal years. Payments to a State
from its allotment for any fiscal year cannot be made, however, until
its allotment for the preceding fiscal year has been exhausted. Allot
ments to States from maternal and child-health and crippled children’s
funds for which matching is not required are available only for the
fiscal year for which the appropriation is made.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Under th e Social S ecurity A ct
5
The Federal appropriation acts have authorized payments to States
for any quarter with respect to State plans approved by the Chief of
the Children’s Bureau prior to or during such quarter but not with
respect to any plan for any period prior to the quarter in which such
plan is submitted for such approval.3
All payments to States are made by the Secretary of the Treasury,
through the Division of Disbursement of the Treasury Department,
on certification by the Secretary of Labor and prior to audit or
settlement by the General Accounting Office.
The Secretary of Labor is authorized to make and publish such
rules and regulations not inconsistent with the act as may be necessary
for the efficient administration of the functions with which he is
charged under the act.
For reports on the administration of parts 1, 2, and 3 of title V of
the act during the period February 1, 1936,* to June 30, 1940, see the
Children’s Bureau section in the annual reports of the Secretary of
Labor beginning with the fiscal year ended June 30, 1936. See also
Children’s Bureau publications:
N o. 254. Federal and State Cooperation in Maternal and Child-Welfare Services
Under the Social Security Act (Maternal and Child-Welfare Bulletin N o. 2).
Washington, 1938.
No. 255. Proceedings of the Conference on State Child-Welfare Services, April
4 -6 , 1938 (Maternal and Child-Welfare Bulletin N o. 3). Washington, 1938.
N o. 257. Child-Welfare Services Under the Social Security Act, Development of
Program, 1936—38. Washington, 1940.
N o. 258. Services for Crippled Children Under the Social Security Act, Develop
ment of Program, 1936-39. Washington (in press).
N o. 259. Maternal and Child-Health Services Under the Social Security Act,
Development of Program, 1936—39. Washington (in press).
The provisions of title V, parts 1, 2, and 3, which are administered
by the Children’s Bureau under the supervision of the Secretary of
Labor, are summarized in the chart facing page 25.
3 See Third Deficiency Appropriation Act, fiscal year 1939, approved Aug. 9, 1939. Public,
No. 361, 76th Cong.
4 The first appropriation for grants to the States for maternal and child-welfare services under the
Social Security Act was made for the period Feb. 1 to June 30, 1936.
213827° — 40-
-2
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
6
Grants to S tates for M aternal and Child W elfare
M A T E R N A L AN D C H IL D -H E A L T H SE R VIC ES
Purpose o f Federal Grants.
The annual appropriation authorized for grants to States for ma
ternal and child-health services, $5,820,000,® is for the purpose of
enabling each State to extend and improve, as far as is practicable
under the conditions in such State, services for promoting the health
o f mothers and children, especially in rural areas and in areas suffering
from severe economic distress.
Federal Administration.
The administration of this part of the act is under the immediate
direction of the Maternal and Child Health Division of the Children’s
Bureau of the United States Department of Labor, headed by a
physician and receiving general supervision from the Assistant Chief
of the Children’s Bureau, who is also a physician.
Am ounts Available to States.
The apportionment of Federal funds available for the fiscal year
ending June 30, 1941, under the terms of the act is shown in table 1.
The amount of $5,820,000 authorized for grants to States for maternal
and child-health services is divided as follows:
F und A (see sec. 502 (a ))
Available for payment of half o f total expenditure (exclusive of fund
B ) under approved plans (within the amount available for allot
ment to each State) (matching required)___________________________ $3, 840, 000
Uniform apportionment, $20,000 to each State____ $1, 040, 000
Apportionment on basis o f live births________ ______
2, 800, 000
F und B (see sec. 502 (b))
Available for allotment according to financial need for assistance in
carrying out State plan, after number of live births is taken into
consideration (matching not required)_______________________________
1, 980, 000
(If application is made for grants from this fund o f $1,980,000, evidence o f need for assistance
in carrying out the State plan must be submitted with the plan.)
State funds appropriated or otherwise provided by the State itself
must be made available for payment of part of the costs of approved
plans. Funds appropriated or made available by counties, cities,
towns, or other political subdivisions of a State may also be counted
as part of the total funds made available for maternal and child-health
activities, provided such local activities are brought into the State
plan and are under the general supervision of the State department of
health. State or local funds used for matching an allotment under
any other Federal appropriation cannot be counted in establishing
eligibility for Federal assistance under this portion of the Social
Security Act.
* The annual appropriation authorized in the original act (1935) was $3,800,000.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Under th e Social S ecurity A ct
7
TA BLE 1. A pp ortion m en t o f Federal funds for fiscal year ending June 30,
1941, for grants to States for m aternal and child-health services under
title V, part 1 (secs. 501—502), o f the Social Security A ct as am ended
Apportionment o f funds for fiscal year 1941
State or Territory
Live births
1938 ‘
Total
Fund A— $20,000
to each State and
a p p ortion m en t
o f $2,800,000 on
basis o f five births
(m a t c h in g r e
quired)
Fund B— Con
ditional ap
portionment *
on the basi6of
need (match
ing not re
quired)
Total_________ ______
2, 364, 896
$5, 820, 000
$3,840,000
$1, 980, 000
Alabama__________________
Alaska________ ____________
Arizona_____ ______________
A r k a n s a s ......___________
California_________________
Colorado__________________
Connecticut_______________
Delaware__________________
District o f C olum bia______
Florida____________________
Georgia___________________
Hawaii____________________
Idaho_____. . . _____________
Illinois_______ _____________
Indiana___________________
Iowa______________________
Kansas____ _______________
Kentucky_________________
Louisiana_________________
Maine_____________________
Maryland_________________
Massachusetts_____________
Michigan__________________
Minnesota_________________
Mississippi. . . . . __________
Missouri_________________ _
Montana__________________
Nebraska__________________
Nevada____________________
New Hampshire____________
New Jersey________________
New M exico_______________
New York_________________
North Carolina . . . _____ ___
North Dakota_____________
Ohio____________ __________
Oklahoma__________________
Oregon___ ____ . . . . . _______
Pennsylvania- ____ _________
Puerto R ico___. . . . ______ _
Rhode Island___ . . . . ______
South Carolina_____________
South Dakota_____________ _
Tennessee__________________
Texas__________ ___________
Utah..........................................
Vermont___________________
Virginia_________. . . . . _____
Washington____ . . . . . _____ _
West Virginia___ . . . . ______
Wisconsin__________________
W yoming__________________
Reserved for continuation
special projects___________
62, 032
1, 287
10, 878
37, 182
101, 844
20, 599
23, 783
4,431
12, 938
31, 096
64, 636
9, 062
11, 277
122, 562
60, 192
43, 221
29, 574
61, 878
48, 867
15, 218
29, 013
61, 262
96, 963
50, 062
53, 694
58, 567
10, 673
22, 401
1,888
7, 830
56, 043
14, 290
189, 559
79, 934
13, 041
112, 667
44, 188
16, 245
165, 984
67, 585
10, 536
41, 120
11, 826
53, 651
121,156
13, 214
6, 301
53, 495
26, 767
42, 434
55, 004
4,946
168, 682
49, 516
78, 753
107,179
164, 783
84, 772
53, 200
32, 901
49, 588
108, 541
187, 773
47, 827
59, 556
170,100
97, 489
86, 680
80, 121
132, 224
148, 386
67, 710
68, 739
102, 329
142, 700
98, 050
143, 018
125, 479
59, 665
69, 356
49, 947
43, 406
91, 400
89, 626
253, 165
190, 016
61, 025
169, 872
108, 483
64, 043
248, 807
214, 026
37, 500
148, 041
58, 960
139, 787
296, 160
61, 247
45, 946
137, 719
73, 688
100, 614
98, 219
53,186
93, 400
21, 500
32, 900
64, 000
140, 600
44, 400
48, 200
25, 300
35, 300
56, 800
96, 500
30, 700
33, 400
165, 100
91, 300
71, 200
55, 000
93, 300
77, 900
38, 000
54, 400
92, 500
134, 800
79, 300
83, 600
89, 300
32, 600
46, 500
22, 200
29, 300
86, 400
36, 900
244, 400
114, 600
35, 400
153, 400
72, 300
39, 200
216, 500
100, 000
32, 500
68, 700
34, 000
83, 500
163, 500
35, 700
27, 500
83, 300
51, 700
70, 200
85, 100
25, 900
75, 282
28, 016
45, 853
43, 179
24, 183
40, 372
5, 000
7, 601
14, 288
5L 741
91, 273
17,127
26, 156
5, 000
6,189
IS', 480
25, 121
38, 924
70, 486
29, 710
14, 339
9, 829
7, 900
18, 750
59, 418
36| 179
27, 065
22, 856
27, 747
14, 106
5, 000
52, 726
8, 765
75', 416
25, 625
16| 472
36, 183
24; 843
32; 307
114; 026
5; 000
79; 341
24; 960
56; 287
132; 660
25; 547
18; 446
54; 419
21, Oftft
30, 414
13; 119
27; 286
200, 000
200, 000
1 Latest year for which figures are available.
1 The allotment to a State cannot be finally determined until the State has submitted its plan for
maternal and child-health services for the year ending June 30,1941, giving the information on which
the apportionment on the basis o f need can be made.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
8
G rants to S tates for M aternal and Child W elfare
Requirements for State Plans.
St&te plans must be approved by the Chief of the Children s Bureau
if they conform with the conditions specified in section 503 (a) of the
act. These conditions are substantially as follows:
1. Financial participation by the State.
2. Administration of the plan or supervision of administration
of the plan by the State health agency.
3. Such methods of administration (including after January
1, 1940, methods relating to establishment and maintenance of
personnel standards on a merit basis) as are necessary for the
proper and efficient operation of the plan.
4. Provision for such reports by the State health agency, in
such form and containing such information, as the Secretary of
Labor may from time to time require, and provision for compli
ance with such provisions as the Secretary of Labor may from
time to time find necessary to assure the correctness and verifica
tion of such reports.
5. Provision for extension and improvement of local maternal
and child-health services.
5, Provision for cooperation with medical, nursing, and welfare
groups and organizations.
7. Provision for development of demonstration services in
needy areas and among groups in special need.
Forms are supplied to each State for use in submitting plans and
budgets and reporting activities and expenditures. Plans for the
entire year are submitted at the beginning of the fiscal year (July 1).
The plans and budgets must cover the entire program, showing the
part to be financed by State and local funds and the funds that have
been appropriated or otherwise made available by State and local
agencies for such purpose.
M ethod o f Payment.
Payments to a State from the fund available for payment of half
the expenditure under an approved plan (fund A) are made for each
quarter, in accordance with the following procedure:
1.
An estimate of the amount to be paid to the State is made
by the Secretary of Labor prior to the beginning of each quarter,
based on (a) an estimate of the amount to be expended during
the quarter made by the State and (b) such investigation as the
Secretary of Labor may find necessary. The State estimate
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Under th e Social S ecurity A ct
9
must contain also a statement of the amount appropriated or made
available by the State and its political subdivisions; if such sum is
less than half the estimated total expenditures, the source or
sources from which the difference is to be derived must be given,
2. Certification of the amount so estimated, reduced or in
creased to correct any differences between estimated and actual
expenditures for prior quarters, is made by the Secretary o f
Labor to the Secretary of the Treasury.
3. Payment to the State, at the time or times fixed by the
Secretary of Labor, is made by the Secretary of the Treasury
through the Division of Disbursement of the Treasury Depart
ment and prior to audit or settlement by the General Accounting
Office.
Payments from the fund available on the basis of financial need for
assistance in carrying out the approved plans (fund B) are made in a
similar manner at the time or times specified by the Secretary of
Labor.
Provisions fo r Withholding Payments Under Approved Plans.
The Secretary of Labor is directed to withhold payments under an
approved plan, after giving reasonable notice and opportunity for hear
ing to the State agency administering the plan or supervising its ad
ministration, if he finds that in the administration of the plan there is
failure to comply substantially with any provision required by the act
to be included in the plan. In such case he must notify the State
agency that further payments will not be made to the State until
he is satisfied that there is no longer any such failure to comply.
SE R V IC E S FO R CRIPPLED C H IL D R E N
Purpose o f Federal Grants.
The annual appropriation authorized for grants to States for
services for crippled children, $3,870,000,® is for the purpose of en
abling each State to extend and improve (especially in rural areas
and in areas suffering from severe economic distress), as far as is
practicable under the conditions in such State, services for locating
crippled children and for providing medical, surgical, corrective,
and other services and care, and facilities for diagnosis, hospitaliza
tion, and aftercare for children who are crippled or who are suffering
from conditions that lead to crippling.
6 The annual appropriation authorized in the original act (1935) was $2,850,000.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
10
G rants to S tates for M aternal and Child W elfare
Federal Administration.
The administration of this part of the act is under the immediate
direction o f the Crippled Children’s Division of the Children’s Bureau
o f the United States Department of Labor, headed by a physician
and receiving general supervision from the Assistant Chief o f the
Children’s Bureau, who is also a physician. The work of this division
is carried on in close cooperation with the Maternal and Child Health
Division and the Child Welfare Division.
A m ou n ts Available to States.
The apportionment of Federal funds for the fiscal year ending June
30, 1941, is shown in table 2. The amount, $3,870,000, authorized for
grants to the States annually for services for crippled children is
divided as follows:
F und A (see sec. 512 (a ))
Available for payment o f half o f total expenditure (exclusive of
fund B ) under approved plans (within the amount available for
allotment to each State) (matching required)_____________________ $2, 870, 000
Uniform apportionment, $20,000 to each State______$1, 040, 000
Apportionment on basis of need, after number o f crip
pled children in need o f services and cost of fur
nishing services are taken into consideration______
1, 830, 000
F und B (see sec. 512 (b ))1
Available for allotment according to financial need for assistance in
carrying out State plan, after number of crippled children in need
o f services and cost of furnishing services are taken into considera
tion (matching not required)_________________________________________
1, 000, 000
(The amount allocable to a State cannot be determined until the State has submitted its plan
giving the information on which the apportionment on the basis of need can be made.)
Requirements fo r State Plans.
State plans must be approved by the Chief of the Children’s Bureau
if they conform with the conditions specified in section 513 (a) of the
act. These conditions are substantially as follows:
1. Financial participation by the State.
2. Administration of the plan or supervision of administration
of the plan by a State agency.
3. Such methods of administration (including after January 1,
1940, methods relating to establishment and maintenance of per
sonnel standards on a merit basis) as are necessary for the proper
and efficient operation of the plan.
4. Provision for such reports by the State agency, in such form
and containing such information as the Secretary of Labor may
from time to time require, and provision for compliance with
such provisions as the Secretary of Labor may from time to time
find necessary to assure the correctness and verification of such
reports.
7
Section 512 (b ) is a new section added by the Social Security Act Amendments of 1939. The
act as passed in 1935 provided only for Federal grants for payment of half o f total expenditure under
approved State plans for services for crippled children.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Under th e Social S ecurity A ct
11
5.
Provision for carrying out the purposes specified in this
portion of the (p. 9).
6» Provision for cooperation with medical, health, nursing, and
welfare groups and organizations and with any agency in the
State charged with administering State laws providing for voca
tional rehabilitation of physically handicapped children.
TABLE 2.— A p p ortion m en t o f Federal funds for fiscal year ending June
30, 1941, for grants to States for services for crippled children under
title V, part 2 (secs. 511—512), o f the Social Security A ct as am ended
Apportionment o f funds for fiscal year 1941
State or Territory
Total
Fund A— $20,000 to
each State and cond itio n a l a p p o r
tionment 1 of $1,830,000 on basis of
need (m a tch in g
required)
Fund B — Condi
t io n a l appor
tion m en t* on
basis of need
(matching not
required)
Total__________ ____________
$3,870,000
$2,870,000
$1, 000,000
Alabama__________ ___ ____________
Alaska______ _ ___________________
Arizona__________________________
Arkansas_________________________
California________________________
Colorado_________________________
Connecticut______________________
Delaware_________________________
District of Columbia______________
Florida___________________________
Georgia__________________________
Hawaii___________________________
Idaho___ _ _______________________
Illinois____________________________
Indiana___________________________
Iowa______________________________
Kansas___________________________
K en tu ck y..________ ______________
Louisiana______,__________________
Maine____________________________
Maryland_________________________
Massachusetts_____________________
Michigan_________________________
Minnesota________________________
Mississippi________________________
Missouri__________________________
Montana__________________________
Nebraska.________________________
Nevada________ ___________________
New Hampshire___________________
New Jersey_______________________
New Mexico_______________________
New York_________________________
North Carolina. ___________________
North Dakota_____________________
Ohio__________________ , ___________
Oklahoma_________________________
Oregon____________________________
Pennsylvania__ ___________________
Puerto Rico_______________________
Rhode Island______________________
South Carolina________ ____________
South Dakota_____________________
Tennessee_________________________
Texas________________
U tah..........................................I . I I "
Vermont__________________________
Virginia___________________________
W ashington_______________________
West Virginia. _____________________
Wisconsin_________________________
Wyoming__________________________
Reserved for later apportionment
basis o f special need_____________
79,390
23,600
31,561
61,708
109,924
42.583
48,060
26,113
29,276
48,350
81,781
30,737
31,578
141,120
72,638
64, 242
55,897
75,242
62.676
37,388
47,169
90,510
105,912
70,976
66,256
78,343
32,402
47,151
23,809
30,076
85.677
32,552
219,881
95,853
36,880
122,087
72,460
37.584
181,533
59,981
34, 779
63,248
35,934
73,278
134, 520
33,959
29,133
72,274
46,435
56,986
71,796
26,702
66,654
20,834
26,882
51,858
85,167
34,820
42.328
23,220
25,227
41,641
70, 683
26,310
27,127
120,253
64,412
54, 682
46,988
62,855
54,752
31,154
42,812
76,190
88,404
56,881
55,166
68,878
27,872
40.329
21,088
26,156
74,971
27,418
179,793
78,527
31,599
110,387
59,862
31,949
162,875
51,557
29,573
53,049
31,037
63,080
113,601
28,748
25,003
60,295
39,887
49,772
62,065
23.329
12,736
2,766
4, 679
9,850
24,757
7,763
5,732
2,893
4,049
6,709
11,098
4,427
4,451
20,867
8,226
9,560
8,909
12,387
7,924
6,234
4,357
14,320
17,508
14,095
11,090
9,465
4,530
6,822
2,721
3,920
10,706
5,134
40,088
17,326
5,281
11,700
12,598
5,635
18,658
8,424
5,206
10,199
4,897
10,198
20,919
5,211
4,130
11,979
6,548
7,214
9,731
3,373
500,000
500,000
The allotment to a State cannot be finally determined until the State has submitted its plan for
services for crippled children for the year ending June 30, 1941, giving the information on which
the apportionment on the basis o f need can be made.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
12
Grants to S tates for M aternal and Child W elfare
Forms of the same character as those described under Maternal and
child-health services (p. 8) are supplied to each State.
M ethod o f Payment.
Payments to a State from fund A, available for payment of half the
expenditures under an approved plan, and payments from fund B,
available on the basis of financial need in carrying out a State plan,
are made under the same conditions as have been described in the
section on Maternal and child-health services (pp. 8-9).
Provisions fo r Withholding Payments Under Approved Plans.
Provisions for withholding payments are the same as those outlined
under Maternal and child-health services (p. 9).
C H IL D -W E L F A R E SE R VIC ES
Purpose o f Federal Grants.
The annual appropriation authorized for grants to States for
child-welfare services, $1,510,000,8 is for the purpose of enabling the
United States, through the Children’s Bureau, to cooperate with
State public-welfare agencies in establishing, extending, and strength
ening, especially in predominantly rural areas, child-welfare services
for the protection and care of homeless, dependent, and neglected
children and children in danger of becoming delinquent.
Federal Administration.
The administration of this section is under the immediate direction
o f the Child Welfare Division of the Children’s Bureau of the United
States Department of Labor, headed by a social worker and receiving
general supervision from the Chief of the Children’s Bureau.
Am ounts Available to States and Conditions Under Which Grants M ay Be
Made.
The apportionment of funds under the terms of the act is shown in
table 3.
The amounts are available for use by cooperating public-welfare
agencies on the basis of plans developed jointly by the State agency
and the Children’s Bureau. They are to be used for payment of
part of the cost of district, county, or other local child-welfare services
in areas predominantly rural and for developing State services for the
encouragement and assistance of adequate methods of community
child-welfare organization in areas predominantly rural and other
areas of special need. Forms are supplied to each State for use in
submitting plans and budgets and reporting activities and expen
ditures.
8 The annual appropriation authorized in the original act (1935) was $1,500,000.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Under th e Social S ecurity A ct
13
TA B L E 3.— Annual apportion m en t o f funds for grants to States for child welfare services under title V, part 3, o f the Social Security A ct as
am ended
Percent distribu
tion o f rural pop
ulation, 1930 1
Available for allotment on
basis o f State plans for
child-welfare services:
$10,000 to each State
and apportionment o f
$990,000 on basis o f
rural population
Total________
100.000
$1,510,000
Alabama_______ . . . .
Alaska_____ . . . . . __
Arizona__________ _
Arkansas___________
California__________
Colorado___________
Connecticut________
Delaware___________
District of Columbia.
Florida_____________
Georgia____________
Hawaii_____________
I d a h o ................. .......
Illinois.__ . . . . _____
Indiana. _ . . . . _____
Iowa_______________
Kansas_____________
Kentucky__________
Louisiana___________
Maine______________
Maryland__________
Massachusetts______
Michigan___________
Minnesota__________
Mississippi_________
Missouri____________
Montana___________
Nebraska___________
Nevada_____________
New Hampshire____
New Jersey_________
New M exico________
New Y ork__________
North Carolina_____
North Dakota______
O h io.__________ ____
Oklahoma__________
Oregon_____________
Pennsylvania_______
Puerto Rico________
Rhode Island_______
South Carolina_____
South Dakota______
Tennessee__________
Texas______________
U t a h ..........................
Vermont____________
Virginia____________
Washington_________
West Virginia_______
Wisconsin__________
Wyoming____ ______
3.448
.093
.518
2.668
2.750
.935
.861
.209
44,137
10,923
15,128
36,413
37,221
19,269
18,528
12,068
10,000
22,715
46,130
13,058
15,653
45,805
35,892
36,772
30,661
42,586
32,759
18,542
21,786
17,506
37,645
33,446
39,991
41,773
16,400
26,007
11,016
13,450
22,601
15,681
47,083
52,365
20,186
48,397
38,257
18,329
65,601
30,043
10,935
34, 547
20,086
40,871
71,659
14,336
14,323
39,369
22,184
32,215
34,861
12,790
State or Territory
1. 284
3.650
.309
.572
3.617
2.615
2.704
2.087
3.292
2.299
.863
1.191
.758
2.792
2.368
3.029
3.209
.646
1.617
. 103
.348
1,273
.574
3.746
4. 279
1.029
3.879
2.854
.841
5.616
2.025
.094
2.480
1.019
3.118
6. 228
.438
.437
2.967
1.231
2. 244
2.511
.282
1Based on most recent census figures available when the apportionment was made.
M ethod o f Payment.
On certification o f the Secretary of Labor, payments to the States
under approved State plans are made by the Secretary of the Treasury
through the Division of Disbursement of the Treasury Department
and prior to audit or settlement by the General Accounting Office.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
OTHER TITLES OF THE SOCIAL SECURITY ACT THAT
PROVIDE D IRECT BENEFITS FOR CHILDREN
Two other titles of the Social Security Act, administered by the
Social Security Board, provide direct benefits for children. Title
IV, which provides for grants to States for aid to dependent children,
was amended in 1939 by increasing the proportional share of the
Federal contribution and by extending somewhat the group of children
to be benefited. Title II, which provides for Federal old-age insurance
benefits, was amended in 1939 by adding provisions for survivors
insurance benefits, including the payment of benefits to children of
deceased insured persons.
Aid to Dependent Children.
For the purpose of enabling each State to furnish financial assist
ance, as far as is practicable under the conditions in such State, to
needy dependent children, an appropriation is authorized for each
fiscal year of such sums as may be sufficient for making payments
to States which have State plans for aid to dependent children
approved by the Social Security Board.
The term “ dependent child” is defined to mean a needy child under
the age of 16 years, or under the age of 18 years if found to be regu
larly attending school, who has been deprived of parental support or
care by reason of the death, continued absence from the home, or
physical or mental incapacity of a parent, and who is living in the
home of his father, mother, or other relative or relatives as specified
in the act.
State plans must provide for: State-wide operation, the plan to be
in effect in all political subdivisions of the State, and, if administered
by them, to be mandatory on them; financial participation by the
State; administration, or supervision of administration, by a single
State agency; granting to any individual whose claim with respect to
aid to a dependent child is denied, opportunity for a fair hearing before
the State agency; such methods of administration (including after Jan
uary 1,1940, methods relating to the establishment and maintenance of
personnel standards on a merit basis) as are found by the Social
Security Board to be necessary for the proper and efficient operation of
the plan; such reports by the State agency as may be required by the
Board; consideration of any other income and resources of any child
claiming aid to dependent children; and safeguards which restrict the
use or disclosure of information concerning applicants and recipients
14
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Under th e Social S ecu rity A ct
15
to purposes directly concerned with the administration of aid to
dependent children.
No residence requirement is to be imposed which would result in the
denial of aid to an otherwise eligible child (1) who has lived in the
State for 1 year immediately preceding the application for aid or (2)
who was born in the State within 1 year immediately preceding the
application, if his mother had lived in the State for a year im
mediately preceding his birth.
States with approved plans will be reimbursed to the extent of onehalf of the total expenditures, except that the State or local adminis
trative unit must bear the full cost of any payment in excess of $18
per month for any dependent child, or, if there is more than one
dependent child in the same home, in excess of $18 for one such
dependent child and $12 for each of the other dependent children.
Old-Age and Survivors Insurance Benefits.
The Federal old-age insurance program was extensively revised
and liberalized by the Social Security Act amendments of 1939.
Among other changes, provision was made for survivors benefits
under certain conditions to widows, dependent children, or dependent
parents, and for supplementary benefits to a qualified individual whose
wife is 65 or over or who has an unmarried dependent child under 18.
So far as children are concerned, this means that each child under
18, dependent on an insured individual at the time of his death, will
receive a child’s insurance benefit monthly until the child marries,
dies, is adopted, or attains the age of 18. In addition, a widow’s
insurance benefit is payable to the widow of an insured worker who
has in her care a child thus entitled to benefits.
The date of first payment of benefits (except lump-sum payments
under the 1935 act) under the old-age and survivors insurance program
was changed to January 1, 1940. The act as passed in 1935 made
the first monthly payments under the old-age insurance program
payable on January 1, 1942.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
STATE AGENCIES ADMINISTERING SERVICES UNDER TITLE V, PARTS 1, 2, AND 3, OF
THE SOCIAL SECURITY ACT, AUGUST 1, 1940
A LABAM A_________
ALASKA......................
A RIZON A...................
ARKANSAS.............. .
Maternal and Child-Health Services
Title V, Part 1
Services for Crippled Children
Title V, Part 2
State Department of Public Health
State Department of Education
Bureau o f Hygiene and Nursing......................... Division of Vocational Education-----------
Child-Welfare Services
Title V, Part 3
State Department of Public Welfare
Bureau o f Child Welfare.
Territorial Department of Public Welfare
Territorial Department of Health
Division for Maternal and Child Health and ¿¿vision for Maternal and Child Health and
Crippled Children.
Crippled Children.
State Board of Social Security and Public Welfare
State Board of Health
Division for Crippled Children...........................I Child Welfare Division.
Division of Maternal and Child Health.
State Department of Public Welfare
State Board of Health
Division of Child Welfare.
Crippled Children’s Division— ------------------Maternal and Child Health D ivision..
CALIFORN IA______
State Department of Public Health
Bureau o f Child Hygiene..................................... I Crippled Children’s Services------------------ --------
State Department of Social Welfare
Division of Child-Welfare Services.
COLORADO...............
State Division o f Public Health
Division o f Maternal and Child H ealth...........i Division of Crippled Children-------------------------
State Department o f Public Welfare
Child Welfare Division.
CO N N E C TIC U T___
State Department of Health
. . .
Bureau o f Child Hygiene................... - ................| Bureau o f Child Hygiene, Division of Crippled
| Children.
Office of Commissioner of Welfare
Bureau of Child Welfare.
D E LAW ARE...................
State Board of Health
Division o f Maternal and Child Health............ | Services for Crippled Children............................
State Board of Charities
Health Department of the^ District of Columbia
Bureau of Maternal and Child Welfare—
Bureau o f Maternal and Child Welfare—..
Board of Public Welfare
D IS T R IC T OF CO
LU M BIA....................
Crippled Children’a Commission
F L O R ID A .
State Board of Health
Bureau o f Maternal and Child Health-------
G E ORGIA.
State Department of Public Health
Division o f Child Hygiene------------------------
H A W A II...
Territorial Board of Health
•
Bureau o f Maternal and Infant Hygiene........-| Division of Services to Crippled Children..
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
State Welfare Board
Department o f Child Welfare.
State Department of Public Welfare
Division of Child Welfare.
Crippled Children’s Division-----------------------Territorial Department o f Social Security
Child Welfare Division.
Grants to S tates for M aternal and Child W elfare
STATE
Under th e Social S ecu rity A ct
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
STATE AGENCIES ADMINISTERING SERVICES UNDER TITLE V, PARTS I, 2, AND 3, OF
THE SOCIAL SECURITY ACT, AUGUST 1, 1940— Continued
N E B R A S K A ....____
Maternal and Child-Health Services
Title V, Part 1
State Department o f Health
Division o f Maternal and Child Health_______
Services for Crippled Children
Title V, Part 2
Child Welfare Division.
State Board of Control
Child Welfare Division.
N EVADA............... ......
State Department of Health
Maternal and Child Health Division_________ | Maternal and Child Health Division.
NEW H A M PSH IR E.
State Board of Health
Division o f Maternal and Child Health and Division o f Maternal and Child Health and
Crippled Children’s Services.
Crippled Children’s Services.
N EW JE R SE Y ...........
State Department of Health
Child-Welfare Services
Title V, Part 3
Crippled Children’s Commission
Bureau o f Maternal and Child Health____
State Welfare Department
State Department of Public Welfare
State Department of Institutions and
Agencies
Board o f Children’s Guardians.
NEW M E X IC O ..........
_ State Department of Public Health
Division o f Maternal and Child Health___
N EW Y O R K ...............
State Department of Health
Division o f Maternity, Infancy, and Child I Division o f Orthopedics.
Hygiene.
NORTH CAROLINA
State Board of Health
Maternal «ad Child Health Services.
Division for Crippled Children.
N O R TH D A K O T A __
State Department of Public Health
Maternal and Child Health Division______
Public-Welfare Board of North Dakota
Division of Child Welfare____________________| Division of Child Welfare.
OHIO.............................
State Department of Health
Bureau o f Child Hygiene_____ _____
State Department of Public Welfare
Division o f Public Assistance, Services for Division o f Public
Crippled Children.
Charities.
State Department of Public Welfare
Division o f Crippled Children’s Services.
Division o f Child Welfare.
State Department of Social Welfare
Bureau o f Child Welfare.
State Board of Charities and Public Welfare
Division o f Child Welfare.
Assistance, Bureau of
OKLAHOM A________
_ State Department of Public Health
Division o f Maternal and Child Health___
OREGON___________
State Board o f Health
Division o f Maternal and Child Health___
P E N N SY LVA N IA . . .
State Department of Health
I
State Department of Welfare
Bureau o f Maternal and Child Health__ _____ | Crippled Children’s Service__________________ | Rural Child Welfare Unit.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
C om m ission for Crippled Children
State Department of Public Welfare
Division of Child Welfare.
State Public Welfare Commission
Services for Crippled Children_______________ I Child-Welfare Services.
G rants to S tates fo r M aternal and Child W elfare
STATE
00
Under th e Social S ecurity A ct
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
T E X T OF THE SECTIONS OF THE SOCIAL SECURITY ACT
RELATING TO GRANTS TO STATES FOR MATERNAL
AND CHILD W ELFARE, AS AMENDED IN 19391
[Original law printed in roman; new law printed in italics.]
Title V — GRANTS TO STATES FOR M ATERN AL AND CHILD
WELFARE
Part 1.— M A T E R N A L A N D C H IL D -H E A L T H S E R V IC E S
A PPROPRIATION
Section 501. For the purpose o f enabling each State to extend and improve,
as far as practicable under the conditions in such State, services for promoting
the health of mothers and children, especially in rural areas and in areas suffer
ing from severe economic distress, there is hereby authorized to be appropriated
for each fiscal year, beginning with the fiscal year ending June 30, 1936, the sum
o f $5,820,000. The sums made available under this section shall be used for
making payments to States which have submitted, and had approved by the Chief
o f the Children’s Bureau, State plans for such services.
ALLOTM ENTS TO STATES
Sec. 502. (a ) Out of the sums appropriated pursuant to section 501 for each fiscal
year the Secretary o f Labor shall allot to each State $20,000, and such part of
$2,800,000 as he finds that the number of live births in such State bore to the
total number of live births in the United States, in the latest calendar year for
which the Bureau o f the Census has available statistics.
(b ) Out of the sums appropriated pursuant to section 501 for each fiscal year
the Secretary of Labor shall allot to the States $1,980,000 (in addition to the allot
ments made under subsection (a) ) according to the financial need o f each State
for assistance in carrying out its State plan, as determined by him after taking into
■consideration the number o f live births in such State.
(c) The amount of any allotment to a State under subsection (a) for any fiscal
year remaining unpaid to such State at the end of such fiscal year shall be avail
able for payment to such State under section 504 until the end of the second suc
ceeding fiscal year. N o payment to a State under section 504 shall be made out
o f its allotment for any fiscal year until its allotment for the preceding fiscal year
has been exhausted or has ceased to be available.
APPROVAL OF STATE PLANS
Sec. 503. (a ) A State plan for maternal and child-health services must (1)
provide for financial participation by the State; (2) provide for the administration
o f the plan by the State health agency or the supervision of the administration
of the plan by the State health agency; (3) provide such methods of administra
tion (including after January 1, 1940, m ethods relating to the establish
m en t and m aintenance o f personnel standards on a m erit basis, except
that the Board 2 shall exercise no authority with respect to the selection,
* 49 Stat. 629; 53 Stat. 1360.
2 This reference to “ the Board’’ appears to have been made inadvertently, as uniform amendments
to several titles o f the act were being considered by the Conference Committee o f the two Houses of
Congress. In title V, secs. 503 (a) and 513 (a), it should be construed as if it read “ the Chief of the
Children’s Bureau.”
20
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Under th e Social S ecu rity A ct
21
tenure o f office, and com pensation o f any individual em p loyed in accord
ance with such m ethods) as are necessary for the proper and efficient operation
of the plan; (4) provide that the State health agency will make such reports, in
such form and containing such information, as the Secretary of Labor may from
time to time require, and comply with such provisions as he may from time to
time find necessary to assure the correctness and verification o f such reports; (5>
provide for the extension and improvement of local maternal and child-health
services administered by local child-health units; (6) provide for cooperation with
medical, nursing, and welfare groups and organizations; and (7) provide for the
development of demonstration services in needy areas and among groups in special
need.
(b)
The Chief of the Children’s Bureau shall approve any plan which fulfills
the conditions specified in subsection (a ) and shall thereupon notify the Secretary
of Labor and the State health agency o f his approval.
PA YM E N T TO STATES
Sec. 504. (a ) From the sums appropriated therefor and the allotments available
under section 502 (a ), the Secretary o f the Treasury shall pay to each State which
has an approved plan for maternal and child-health services, for each quarter,
beginning with the quarter commencing July 1, 1935, an amount, which shall be
used exclusively for carrying out the State plan, equal to one-half o f the total
sum expended during such quarter for carrying out such plan.
( b ) The method o f computing and paying such amounts shall be as follows:
(1) The Secretary o f Labor shall, prior to the beginning of each quarter,,
estimate the amount to be paid to the State for such quarter under the
provisions of subsection (a ), such estimate to be based on (A ) a report filed
by the State containing its estimate of the total sum to be expended in such
quarter in accordance with the provisions of such subsection and stating the
amount appropriated or made available by the State and its political sub
divisions for such expenditures in such quarter, and if such amount is less
than one-half of the total sum o f such estimated expenditures, the source or
sources from which the difference is expected to be derived, and (B ) such
investigation as he may find necessary.
(2) The Secretary o f Labor shall then certify the amount so estimated by
him to the Secretary of the Treasury, reduced or increased, as the case may
be, by any sum by which the Secretary of Labor finds that his estimate for
any prior quarter was greater or less than the amount which should have
been paid to the State for such quarter, except to the extent that such sum
has been applied to make the amount certified for any prior quarter greater
or less than the amount estimated by the Secretary of Labor for such prior
quarter.
(3) The Secretary of the Treasury shall thereupon, through the Division
of Disbursement of the Treasury Department and prior to audit or settlement
by the General Accounting Office, pay to the State, at the time or times fixed
by the Secretary of Labor, the amount so certified.
(c) The Secretary o f Labor shall from time to time certify to the Secretary o f
the Treasury the amounts to be paid to the States from the allotments available
under section 502 (b ), and the Secretary of the Treasury shall, through the D ivi
sion of Disbursement of the Treasury Department and prior to audit or settlement
by the General Accounting Office, make payments of such amounts from such
allotments at the time or times specified by the Secretary of Labor.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
22
G rants to S tates for M aternal and Child W elfare
OPERATION OF STATE PLANS
Sec. 505. In the case of any State plan for maternal and child-health services
which has been approved by the Chief o f the Children’s Bureau, if the Secretary
o f Labor, after reasonable notice and opportunity for hearing to the State agency
administering or supervising the administration o f such plan, finds that in the
administration o f the plan there is a failure to comply substantially with any
provision required by section 503 to be included in the plan, he shall notify such
State agency that further payments will not be made to the State until he is
satisfied that there is no longer any such failure to comply. Until he is so satisfied
he shall make no further certification to the Secretary o f the Treasury with
respect to such State.
Part 2.— S E R V IC E S F O R C R IP P L E D C H IL D R E N
APPROPRIATION
Sec. 511. For the purpose of enabling each State to extend and improve
{especially in rural areas and in areas suffering from severe economic distress), as
far as practicable under the conditions in such State, services for locating crippled
•children, and for providing medical, surgical, corrective, and other services and
care, and facilities for diagnosis, hospitalization, and aftercare, for children who
are crippled or who are suffering from conditions which lead to crippling, there is
liereby authorized to be appropriated for each fiscal year, beginning with the fiscal
year ending June 30, 1936, the sum o f $3,870,000. The sums made available
nnder this section shall be used for making payments to States which have sub
mitted, and had approved by the Chief o f the Children’s Bureau, State plans for
such services.
ALLOTM ENTS TO STATES
Sec. 512. (a ) Out of the sums appropriated pursuant to section 511 for each
fiscal year the Secretary of Labor shall allot to each State $20,000, and $1,830,000
to the States according to the need of each State as determined by him after taking
into consideration the number of crippled children in such State in need of the
services referred to in section 511 and the cost of furnishing such services to them.
(b) Out o f the su m s appropriated pursuant to section 511 for each fiscal
yea r the Secretary o f Labor shall allot to the States $1,000,000 (in addition
to the allotm en ts m ade under subsection (a )), according to the financial
n eed o f each State for assistance in carrying o u t its State plan, as deter
m in ed b y h im after taking in to consideration the n u m b er o f crippled
children in such State in need o f the services referred to in section 511 and
th e cost o f furnishing such services to th em .
(c ) The amount of any allotment to a State under subsection (a ) for any fiscal
year remaining unpaid to such State at the end of such fiscal year shall be avail
able for payment to such State under section 514 until the end of the second suc
ceeding fiscal year. N o payment to a State under section 514 shall be made out
o f its allotment for any fiscal year until its allotment for the preceding fiscal year
¡has been exhausted or has ceased to be available.
APPROVAL OF STATE PLANS
Sec. 513. (a ) A State plan for services for crippled children must (1) provide
for financial participation by the State; (2) provide for the administration of the
plan by a State agency or the supervision of the administration of the plan by a
State agency; (3) provide such methods of administration (including after
January 1, 1940, m eth od s relating to the establishm en t and m aintenance
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Under th e Social S ecu rity A ct
23
o f person n el standards on a m erit basis, except that the Board 8 shall exer
cise no authority w ith respect to the selection, tenure o f office, and c o m
pensation o f any individual em p loyed in accordance with such m eth od s )
as are necessary for the proper and efficient operation of the plan; (4) provide
that the State agency will make such reports, in such form and containing such
information, as the Secretary of Labor may from time to time require, and comply
with such provisions as he may from time to time find necessary to assure the
correctness and verification of such reports; (5) provide for carrying out the pur
poses specified in section 511; and (6) provide for cooperation with medical, health,
nursing, and welfare groups and organizations and with any agency in such State
charged with administering State laws providing for vocational rehabilitation o f
physically handicapped children.
(b) The Chief of the Children’s Bureau shall approve any plan which fulfills
the conditions specified in subsection (a ) and shall thereupon notify the Secretary
of Labor and the State agency of his approval.
P A YM E N T TO STATES
Sec. 514. (a ) From the sums appropriated therefor and the allotments' avail
able under section 512 (a ), the Secretary of the Treasury shall pay to each State
which has an approved plan for services for crippled children, for each quarter,
beginning with the quarter commencing July 1, 1935, an amount, which shall be
used exclusively for carrying out the State plan, equal to one-half of the total sum
expended during such quarter for carrying out such plan.
(fo) The method o f computing and paying such amounts shall be as follows:
(1) The Secretary of Labor shall, prior to the beginning of each quarter,
estimate the amount to be paid to the State for such quarter under the pro
visions of subsection (a ), such estimate to be based on (A ) a report filed by the
State containing its estimate of the total sum to be expended in such quarter
in accordance with the provisions of such subsection and stating the amount
appropriated or made available by the State and its political subdivisions for
such expenditures in such quarter, and if such amount is less than one-half of
the total sum of such estimated expenditures, the source or sources from which
the difference is expected to be derived, and (B ) such investigation as he may
find necessary.
(2) The Secretary of Labor shall then certify the amount so estimated by
him to the Secretary of the Treasury, reduced or increased, as the case may
be, by any sum by which the Secretary of Labor finds that his estimate for
any prior quarter was greater or less than the amount which should have
been paid to the State for such quarter, except to the extent that such sum
has been applied to make the amount certified for any prior quarter greater
or less than the amount estimated by the Secretary of Labor for such prior
quarter.
(3) The Secretary of the Treasury shall thereupon, through the Division
of Disbursement of the Treasury Department and prior to audit or settle
ment by the General Accounting Office, pay to the State, at the time or
times fixed by the Secretary of Labor, the amount so certified.
* This reference to “ the Board” appears to have been made inadvertently, as uniform amendments
to several titles o f the act were being considered by the Conference Committee of the two Houses o f
Congress In title V, secs. 503 (a ) and 513 (a ), it should be construed as if it read “ the Chief of the
Children’s Bureau.”
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
24
Grants to S tates fo r M aternal and Child W elfare
(c) The Secretary o f Labor shall from tim e to tim e certify to the Secre
tary o f the Treasury the a m ou nts to be paid to the States from th e
a llotm en t available under section 512 ( b ), and the Secretary o f th e
Treasury shall, through the Division o f D isbu rsem en t o f the Treasury
D epartm en t and prior to audit or se ttlem e n t b y the General Accounting
Office, m ake p a ym en ts o f such am ou nts from such allotm en ts at the
tim e or tim es specified b y the Secretary o f Labor.
OPERATION OF STATE PLANS
Sec. 515. In the case of any State plan for services for crippled children which
has been approved by the Chief of the Children’s Bureau, if the Secretary o f Labor,
after reasonable notice and opportunity for hearing to the State agency adminis
tering or supervising the administration of such plan, finds that in the adminis
tration o f the plan there is a failure to comply substantially with any provision
required by section 513 to be included in the plan, he shall notify such State
agency that further payments will not be made to the State until he is satisfied
that there is no longer any such failure to comply. Until he is so satisfied he
shall make no further certification to the Secretary of the Treasury with respect
to such State.
Part 3.— C H IL D -W E L F A R E S E R V IC E S
Sec. 521. (a ) For the purpose of enabling the United States, through the
Children’s Bureau, to cooperate with State public-welfare agencies in establishing,
extending, and strengthening, especially in predominantly rural areas, publicwelfare services (hereinafter in this section referred to as “ child-welfare services” )
for the protection and care of homeless, dependent, and neglected children, and
children in danger of becoming delinquent, there is hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June 30, 1936
the sum of $1,510,000. Such amount shall be allotted by the Secretary of Labor
for use by cooperating State public-welfare agencies on the basis of plans developed
jointly by the State agency and the Children’s Bureau, to each State, $10,000
and the remainder to each State on the basis of such plans, not to exceed such part
o f the remainder as the rural population of such State bears to the total rural
population of the United States. The amount so allotted shall be expended for
payment of part of the cost of district, county, or other local child-welfare services
in areas predominantly rural, and for developing State services for the encourage
ment and assistance of adequate methods of community child-welfare organiza
tion in areas predominantly rural and other areas of special need. The amount
of any allotment to a State under this section for any fiscal year remaining unpaid
to such State at the end of such fiscal year shall be available for payment to such
State under this section until the end of the second succeeding fiscal year. N o
payment to a State under this section shall be made out of its allotment for any
fiscal year until its allotment for the preceding fiscal year has been exhausted or
has ceased to be available.
(■b > From the sums appropriated therefor and the allotments available under
subsection (a ) the Secretary of Labor shall from time to time certify to the Secre
tary of the Treasury the amounts to be paid to the States, and the Secretary of the
Treasury shall, through the Division of Disbursement of the Treasury Department
and prior to audit or settlement by the General Accounting Office, make payments
of such amounts from such allotments at the time or times specified by the Secre
tary of Labor.
*
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Under th e Social S ecurity A ct
25
Part 5 — A D M IN IS T R A T IO N
Sec. 541. (a ) There is hereby authorized to be appropriated for the fiscal year
ending June 30, 1936, the sum of $425,000,4 for all necessary expenses of the Chil
dren’s Bureau in administering the provisions of this title, except section 531.®
(b ) The Children’s Bureau shall make such studies and investigations as will
promote the efficient administration of this title, except section 531.
(c ) The Secretary of Labor shall include in his annual report to Congress a full
account of the administration of this title, except section 531.
*
*
*
*
*
*
*
Title X I — GENERAL PROVISIONS
DEFINITIONS
Section 1101. (a ) When used in this act—
(1) The term “ State” (except when used in sec. 531) includes Alaska, Hawaii,
and the District of Columbia, and w hen used in titles V and V I o f such act
(including sec. 531) includes Puerto Rico.6
(2) The term “ United States” when used in a geographical sense means the
States, Alaska, Hawaii, and the District of Columbia.
*
*
*
*
*
*
*
(d ) Nothing in this act shall be construed as authorizing any Federal official,
agent, or representative, in carrying out any of the provisions of this act, to take
charge of any child over the objection of either of the parents of such child, or of
the person standing in loco parentis to such child.
RULES AN D REGULATIONS
Sec. 1102. The Secretary of the Treasury, the Secretary of Labor, and the Social
Security Board, respectively, shall make and publish such rules and regulations,
not inconsistent with this act, as may be necessary to the efficient administration
of the functions with which each is charged under this act.
SEPARABILITY
Sec. 1103. I f any provision of this act, or the application thereof to any person
or circumstance, is held invalid, the remainder of the act, and the application of
such provision to other persons or circumstances shall not be affected thereby.
RESERVATION OF POWER
Sec. 1104. The right to alter, amend, or repeal any provision of this act is hereby
reserved to the Congress.
SHORT T ITL E
Sec. 1105. This act may be cited as the “ Social Security A ct.'^
4 The amount for each fiscal year is determined by Federal appropriation acts.
5Sec. 531 deals with vocational rehabilitation.
* Amendment effective January 1, 1940.
o
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
CHART SHOWING PROVISIONS FOR GRANTS TO STATES FOR MATERNAL AND CHILD WELFARE AUTHORIZED
BY THE SOCIAL SECURITY ACT APPROVED AUGUST 14, 1935, AND THE SOCIAL SECURITY ACT AMENDMENTS
OF 1939 APPROVED AUGUST 10, 1939
T IT L E V , P A R T S 1, 2, 3, A N D 5.
T IT L E X I , S E C T IO N 1101 (d) A N D S E C T IO N 1102
(The term “ State” includes the 48 States, the District o f Columbia, Alaska, Hawaii, and (beginning Jan 1, 1940) Puerto Rico]
Purpose
(1) Annual Fed
eral appropriation
authorized for al
lotment to States
(2) Official who
makes allotment
(3) Period dur
ing which allot
ments are avail
able
Method o f apportion
ment to each State
Method and time of
payment
M e th o d o f
e s t a b lis h in g
eligibility f o r
payments
State ad
m in is t r a
tive or su
p e r v is in g
agency
Requirements w h ic h
must he met in each State
plan
M ATERN AL A N D CH ILD-H EALTH SERVICES (SECS. 501-505; T ITLE V , PT. 1)
Extension and im
provement o f serv
ices for promoting
health o f mothers
and children (espe
cially in rural areas
and areas suffering
from _severe econo
mic distress).
(1) $5,820,000
Fund A (matching re
annually.
quired): Available for
(2) Secretary o f half total cost o f services
Labor.
planned (exclusive of
(3 ) An allotmentfund B ):
to a State under
(1) $1,040,000, al
sec. 502 (a ) (fund
lotted $20,000 to each
A ) for any fiscal
State.
year is available
(2) $2,800,000, al
few payment until
lotted on basis o f ratio
end o f second suc
o f live births in State
ceeding fiscal year.
to total live births in
An allotment un
United States in latest
der sec. 502 (6 )
calendar year for which
(fund B ) for any
statistics are available.
fiscal year is avail
Fund B (matching not
able for payment
until the end o f required): $1,980,000, al
lotted on basis o f finan
that year.
cial need o f each State
for assistance in carrying
out plan as determined by
Secretary o f Labor after
taking into consideration
number o f live births.
Payments from fund
A made by Secretary
o f Treasury, on certlflKHtion and at times desig
nated by Secretary of
Labor, on basis of esti
mated expenditures for
quarter, reduced or in
creased to correct over
payments or underpay
ments for prior quarters.
(Estimate based on report
filed by State, containing
estimate of total sum to
be expended in the quar
ter and amount appro
priated or made available
by State and its political
subdivisions for expendi
ture in such quarter, and
if less than half total sum
of estimated expendi
tures, source or sources
from which difference is
expected to be derived;
and such investigation as
Secretary o f Labor may
find necessary.)
Payments from fund B
made by Secretary of
Treasury at times desig
nated by Secretary of
Labor.
Submission of
S t a t e
(1) Financial parti cipaState plan for health agen- tion by State,
j
(2) Administration or
services, con cy.
forming to con
supervision of adminis
ditions speci
tration by State health
fied, and ap
agency.
proval o f plan
(3) Such methods of
by Chief of
administration (including
Children’s Bu
after Jan. 1, 1940, meth
reau, who noti
ods relating to the estab
fies Secretary of
lishment and mainte*
Labor and State
nance o f personnel stand
agency o f his
ards on a merit basis) as
approval.
are necessary for the
proper and efficient oper
ation o f plan
(4) Provision of such
reports by State health
agency as Secretary of
Labor may require.
(5) Extension and im
provement of local mater
nal and child-health serv
ices administered by local
child-health units.
(6) Cooperation with
medical, nursing, and
welfare^ groups and or
ganizations.
(7) Provisions for de
velopment o f demonstra
tion services in needy
areas and among groups
in special need.
Provisions re
garding withholdiug o f pay
ments to States
T IT L E V, Pt. 5
A N D T ITLE X I,
SECS. 1101 (d )
B y Secretary
A N D 1102
of Labor, after
giving reasonable
notice and oppor
tunity for hear
ing to State
agency, on find
ing o f failure in
administration to
comply substan
tially with any
provision requir
ed to be included
in State plan.
No further pay
ments to be made
until Secretary
of Labor is satis
fied that there is
no longer failure
to comply.
Annual author
ized appropriation
to Children’s Bu
reau for all neces
sary expenses.
Children’s B u
reau to make such
studies and investi
gations as will pro
mote efficient ad
ministration.
SERVICES FOR CRIPPLED C H ILDREN (SECS. 511-515; T IT L E V, P T. 2)
Extension and im
provement (especially
in rural areas and
areas suffering from
severe economic dis
tress) o f services for
locating crippled chil
dren and for provid
ing medical, surgical,
corrective, and other
services and care and
facilities for diagno
sis, hospitalization,
and aftercare for
children whoare crip
pled or suffering from
conditions which lead
to crippling.
(1) $3,870,000
annually.
(2) Secretary o f
Labor.
(3) An allotment
to a State under
sec. 512 (a ) (fund
A) is available for
payment until end
o f second succeed
ing fiscal year.
An allotment un
der sec. 512 (b )
(fund B ) for any
fiscal year is avail
able for payment
until the end o f
that year.
Fund A (matching re
quired): Available for
half total cost o f services
planned (exclusive of
fund B ):
(1) $1,040,000, allot
ted $20,000 to each
State.
(2) $1,830,000, allot
ted according to need
o f each State as deter
mined by Secretary of
Labor after taking into
consideration number of
crippled children in
such State in need of
services and cost of
furnishing services to
them.
Same as above.
Same
above.
as
State
agency
(ty p e n o t
specified.)
Fund B (matching not
required): $1,000,000, al
lotted on basis o f finan
cial need o f each State
for assistance in carrying
out plan as determined by
Secretary o f Labor after
taking into consideration
number o f crippled chil
dren in need o f services
and cost o f furnishing
services to them.
(1) Financial participa
tion by State.
(2) Administration or
supervision o f adminis
tration by State agency.
(3) Such methods of
administration (including
after Jan. 1,1940, meth
ods relating to the estab
lishment and mainte
nance o f personnel stand
ards on a merit basis) as
are necessary _ for the
proper and efficient opera
tion o f plan.
(4) Provision o f such
reports by State agency
as Secretary o f Labor may
require.
(5) Provision for carry
ing out the purposes spe
cified. (See first column.)
(6) Cooperation with
medical, health, nursing,
and welfare groups and
organizations, and with
any agency in State ad
ministering State laws for
vocational rehabilitation
o f physically handicapped
children
Federal adminis
tration o f the three
programs for mater
nal and child wel
fare
Same as above,
Secretary o f La
bor to include full
account o f admin
istration in annual
report to Congress.
Secretary o f La
bor 'to make and
publish rules and
regulations, not in
consistent with the
act, as may be nec
essary to the effi
cient administra
tion o f the func
tions with which
he is charged.
Nothing In the
act shall be con
strued as authoriz
ing ' any Federal
official, agent or
representative, in
carrying out any
o f the provisions o f
the act, to take
charge o f any child
over the objection
o f either o f the
parents o f such
child, or o f the
person standing in
loco parentis to
such child.
CH ILD-W ELFARE SERVICES (SEC. 521; T ITL E V, PT. 3)
C o o p e r a tion,
through Children’s
Bureau, with State
public-welfare agen
cies in establishing,
e x t e n d i n g , and
strengthening (espe
cially in predomi
nantly rural areas)
welfare^ services for
protection and care
o f homeless, depend
ent, and neglected
children, and children
in danger o f becoming
delinquent.
(1) $1,510,000
annually.
(2) Secretary o f
Labor.
(3) An allotment
to a State for any
fiscal year is avail
able for payment
until end o f second
succeeding fiscal
year.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Funds available for
payment o f part o f cost of
district, county, or other
local child-welfare serv
ices in areas predomi
nantly rural, and for
developing State services
for encouragement and
assistance o f adequate
methods o f community
child-welfare o r g a n i z a
tion in areas predomi
nantly rural and other
areas o f special need:
(1) $520,000, allotted
$10,000 to each State.
(2) $990,000, allotted
on basis of_ ratio of
rural population o f each
State to total rural pop
ulation o f the United
States.
Paid by Secretary of
Treasury, on certification
of Secretary of Labor
and at times designated
by Secretary o f Labor.
Plans devel
oped jointly by
State agency
and Children’s
Bureau.
State pub
lic-w elfare
agency.
Not prescribed.
Not specified.
218827®— 10
(Follows p. 25)
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
@FedFRASER