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The Federal Omnibus Budget Reconciliation Act of 1987 (OBRA-87) added a new section to the Social Security Act which permits State agencies to establish and operate an optional fraud control program for the Aid to Families with Dependent Children (ADC) Prcqram. This section also provides federal matching at a 75 percent Federal reimbursement rate for costs directly attributed to the operation of a fraud control program, including prosecution, conducting administrative disqualification hearings, and any resulting fraud collection activities.
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