A bill to amend title IV of the Social Security Act to stabilize State welfare costs by providing full Federal reimbursement for any increases in a State's aid to families with dependent children payments which reflect rises in the cost of living since 1973 or are due to increased caseload, if the State agrees to make provision for cost-of-living adjustments in such payments, to implement a program of aid to dependent children of unemployed fathers, and not to impose any new restrictive requirements under its approved State plan.

Amends title IV (Aid to Families with Dependent Children) of the Social Security Act to provide 100 percent Federal reimbursement for increases in a State's aid to families with dependent children payments which reflect rises in the cost of living since 1973 or are due to increased caseload. Makes such reimbursement contingent upon the State providing cost-of-living adjustments in such payments, implementation of a program of aid to dependent children of unemployed fathers, and agreement by the State not to impose any new restrictive requirements under its approved State plan.