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OMB COST ESTIMATE
FOR PAY-AS-YOU-GO CALCULATIONS

Report No: 500
Date: 01/03/00

  1. LAW NUMBER: P.L. 106-169 (H.R. 3443 )
  2. BILL TITLE: Foster Care Independence Act of1999
  3. BILL PURPOSE: P.L.106-169 helps address problems faced by youth as they move fromthe foster care system to independent adult living. The bill also improves the integrity ofthe Supplemental Security Income (SSI) and Social Security Disability Benefits (OASDI)programs and establishes a special entitlement benefit for certain individuals who servedunder the United States Armed Forces during World War II.
  4. OMB ESTIMATE:
  5. (Fiscal years; in millions of dollars)
    199920002001200220032004
    Net costs.....................0-56-3-6-426

    P.L.106-169 increases funding levels for a permanently authorized capped entitlementthat provides grants to States for services to youths leaving the foster care system forindependent living. The bill also allows States to provide extended Medicaid coveragefor such youth. Adoption incentive payments for States with adoptions of foster carechildren exceeding a threshold are increased.

    In addition, a new entitlement program is established for individuals who served inFilipino military units attached to the U.S. armed forces during World War II and whonow receive SSI benefits in the United States and wish to return to the Philippines. Offsets areachieved through a range of SSI and OASDI program integrity provisions andreductions in the level of child support collections guaranteed to States to reimburse theirshare of benefits paid under the Temporary Assistance for Needy Families program.

  6. CBO ESTIMATE:
  7. (Fiscal years; in millions of dollars)
    199920002001200220032004
    Net costs....................0-2224-15-114

  8. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:
  9. OMB and CBO have different assumptions about the pace of implementation of the integrity provisions and different baseline assumptions about child support collections.

  10. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATIONENACTED TO DATE:
  11. (Fiscal years; in millions of dollars)
    199920002001200220032004
    Outlay effect..............53667960603814-29
    Receipt effect............-53,6591,7797691,98537
    Net costs....................58-2,992-819-166-1,171-66

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