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State-Federal Relations
Human Services Federal Issues
Human Services and Welfare Committee

September 21, 2006

Mr. David Walker
Comptroller General of the United States
Government Accountability Office
441 G Street, NW
Room 7100
Washington, D.C. 20548

RE:  Social Services Block Grant Impoundment


Dear Comptroller General Walker:

Title XX of the Social Security Act provides for an annual $1.7 billion entitlement for states under the Social Services Block Grant (SSBG). These funds are provided to assist states in providing social services to their populations. The Administration in its FY 2007 budget proposal requested SSBG appropriations using the following language:  "notwithstanding section 2003(c) of such Act, the amount specified for allocation under such section for fiscal year 2007 shall be $1,200,000,000."  However, the amount of the entitlement remains $1.7 billion.

The Department of Health and Human Services (HHS) is requiring states to submit a plan of obligations under the $1.2 billion level.  The National Conference of State Legislatures (NCSL) knows that the Department has rejected at least one state’s application for funding under the $1.7 billion level and is requiring them to submit a plan for obligations under the $1.2 billion level. NCSL believes this to be illegal. I respectfully request your judgment as to whether this action by HHS is legal, and whether it is an improper impoundment of funds to which states are entitled.  I note that the state plan is the obligating document; the appropriation permits the liquidation of obligations already made. I therefore request that you formally list the event as an illegal impoundment, and require the timely allotment of funds for obligation so that state programs may proceed as expected under the Act. 

I look forward to your expeditious response to this issue. If you have any questions or need additional information, please have your staff contact Michael Bird (202-624-8686, michael.bird@ncsl.org.), Lee Posey (202-624-8196, lee.posey@ncsl.org) or Amanda Naughton (202-624-3572, amanda.naughton@ncsl.org). Thank you for your attention to this matter.

Sincerely, 

William T. Pound
National Conference of State Legislatures Executive Director

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