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1935 Social Security Act

Conditions for approval of State plan. 1. A State plan (for each type of assistance, aid, or service) must be submitted by the State to the designated Federal administrative agency for approval.
For old-age assistance, aid to the blind, and aid to dependent children, each of the plans must be State-wide, and, if administered by political subdivisions must be mandatory upon them.
2. Financial participation by the State must be provided in the State plan (for each type of assistance, aid, or service.)
A State old-age assistance plan need not provide State financial participation before July 1, 1937, where the Board finds the State is so prevented by its constitution.
3. A single State agency must be established or designated to administer the State plan or established or designated to supervise the administration of the State plan.
4. Methods of administration (other than those relating to selection, tenure, and compensation of personnel) necessary for the efficient operation of the plan.
5. Reports must be submitted in such form and containing such information as may be from time to time required by the designated Federal administrative agency.
6. Persons whose claims for assistance have been denied must be permitted an opportunity for a fair hearing before the State agency.
7. State residence requirement may not exceed 5 years within last 9 years. One year of residence immediately preceding application may be required.
8. A State plan cannot impose any citizenship requirement which excludes any United States citizen.
9. After January 1, 1940, State plan must provide an age limit of not over 65 years, but until then a 70-year limit is permissible.
10. One-half of any recovery from estate of a recipient to be paid to the United States.
Amount of Federal grant to State. One-half of State expenditures for assistance under each plan; but payments in excess of $30 a month to an individual are not matched by Federal Government.
Five percent of Federal aid to State for administration and/or assistance under each plan.
Extent of State financial participation. Amount equal to Federal payment to State exclusive of Federal 5 percent.
Federal definition of aid. Money payments to needy individual 65 years or older not an inmate of public institution.
Method of making allotments. Allotments made for each quarter on the basis of estimated State expenditures and appropriations, and investigations by the appropriate Federal agency.

Payments made to the State (at time or times fixed by the designated Federal agency) by the Secretary of the Treasury (through Disbursement Division) prior to audit or settlement by the General Accounting Office.
Suspension of Federal grant. In the case of an approved plan which the Board finds after reasonable notice and opportunity for hearing has been changed to impose a prohibited requirement; or in the administration imposes a prohibited requirement with the knowledge of the State agency in a substantial number of cases, or fails to comply substantially with the provisions required in the plan, the Board shall notify the State agency that further payments will not be made.
Federal appropriation authorized--Fiscal year 1936. $49,750,000
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