BLOCK GRANTS FOR SOCIAL SERVICES.

SEC. 8401. BLOCK GRANTS FOR SOCIAL SERVICES. (a) Reduction of Grants.— Section 2003(c) of the Social Security Act (42 U.S.C. 1397b(c)) is amended by striking paragraphs (7) and (8) and inserting the following: “(7) $2,380,000,000 for the fiscal year 1997; “(8) $2,380,000,000 for the fiscal year 1998; “(9) $2,380,000,000 for the fiscal year 1999; “(10) $2,380,000,000 for the fiscal year 2000; and 112 STAT. 499 “(11) $1,700,000,000 for the fiscal year 2001 and each fiscal year thereafter.”. (b) Limitation on Amount of TANF Funds Transferable.— Section 404(d)(2) of the Social Security Act (42 U.S.C. 604(d)(2))is amended to read as follows: “(2) Limitation on amount transferable to title programs.— “(A) In general.— A State may use not more than the applicable percent of the amount of any grant made to the State under section 403(a) for a fiscal year to carry out State programs pursuant to title XX. “(B) Applicable percent.— For purposes of subparagraph (A), the applicable percent is 4.25 percent in the case of fiscal year 2001 and each succeeding fiscal year.”. (c) Effective Date.— The amendments made by this section take effect on October 1,1998.