To amend title IV of the Social Security Act to eliminate disincentives in the program of aid to families with dependent children that prevent recipients of such aid from working toward self-sufficiency.

[AI summary unavailable — showing source text] Amends part A (Aid to Families with Dependent Children) (AFDC) of title IV of the Social Security Act (SSA) to: (1) provide for continuation of Medicaid (SSA title XIX) benefits for 36 months for families who become ineligible for AFDC due to excessive income; (2) increase the limit on resources used in determining a family's eligibility for AFDC; (3) require that the State ensure that caseworkers are able to properly advise AFDC recipients of the use of microenterprises to attain self-sufficiency and encourage interested recipients to participate in a program designed to assist them in starting one; (4) provide for the inclusion of microenterprise training and activities in the JOBS program; (5) require that performance standards be adjusted to reflect the time required to establish microenterprises; (6) revise provisions concerning the earned income of children disregarded in determining the family's need for AFDC; (7) provide for suspension of AFDC where a child of a family on AFDC is not regularly attending required school; (8) reduce AFDC in cases where the family member claiming it is a high school dropout; (9) require States to guarantee child care to parents who are high sc…