A bill to amend part A of title XV of the Social Security Act to encourage States to improve their AFDC programs by increasing Federal payments to those States which take (or have taken) specified steps to broaden coverage, raise benefits, and reduce error rates under such programs.

Amends part A (Aid to Families with Dependent Children) of title IV of the Social Security Act to increase Federal payments to a State which: (1) provides coverage for certain dependent children; (2) raises the maximum amount of AFDC payments payable by specified amounts; and (3) reduces, as specified, the payment error rate for cash payments.