The welfare proposal would reward states that got people off the public assistance rolls and into jobs.

Some of the money would reward states for correcting problems identified by the federal government.

"My guess is this will be done on a per capita basis, because they don't want to reward states with deeper deficits," he said.

One will reward states that get more poor children into two-parent families.

One will reward states that enroll more poor children in Medicaid.

The federal government should also reward states that maintain their own spending for welfare-to-work programs.

And he said future Federal aid should reward states like Vermont that already hold costs down.

The House bill would authorize $108 million for payments to reward states that increase adoptions.

The formula they proposed would also reward states that reduced the number of abortions.

But the formula would gradually change over five years to reward states that increased the number of meals served in schools.