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 of 1999
3. BILL PURPOSE: P.L.106-169 helps address problems faced by youth as they move from the foster care system to independent adult living. The bill also improves the integrity of the Supplemental Security Income (SSI) and Social Security Disability Benefits (OASDI) programs and establishes a special entitlement benefit for certain individuals who served under the United States Armed Forces during World War II.
4. OMB ESTIMATE:

	(Fiscal years; in millions of dollars)
	1999	2000	2001	2002	2003	2004
Net costs.....................	0	-56	-3	-6	-4	26

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

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

5. CBO ESTIMATE:

	(Fiscal years; in millions of dollars)
	1999	2000	2001	2002	2003	2004
Net costs....................	0	-22	24	-15	-1	14

6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:

OMB and CBO have different assumptions about the pace of implementation of the integrity provisions and different baseline assumptions about child support collections.

7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:

	(Fiscal years; in millions of dollars)
	1999	2000	2001	2002	2003	2004
Outlay effect..............	53	667	960	603	814	-29
Receipt effect............	-5	3,659	1,779	769	1,985	37
Net costs....................	58	-2,992	-819	-166	-1,171	-66