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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.)
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 must not disqualify a child who has resided in the State for a year immediately preceding application, or who was born in the State during the preceding year, if its mother has resided in the State for one year immediately preceding the birth.
Amount of Federal grant to State. One-third of State expenditures; but payments in excess of $18 per month for first child and $12 for each additional child are not matched by Federal Government.
Extent of State financial participation. Amount double Federal payment to State.
Federal definition of aid. Money payments to needy dependent child or children under 16 years by reason of death, absence, or incapacity of a parent, living with an enumerated relative in a residence maintained as a home.
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. $24,750,000
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