Welfare Reform bill

State Flexibility, Individual Empowerment, and Dependency Reduction Act - Directs the Secretary of Health and Human Services to make grants to each State for each of FY 1996 through 2015 to provide aid to low-income individuals in need of assistance in order to gain economic independence. Provides that such grant amount shall represent a specified percentage (beginning with 100 percent in FY 1996 and reduced by five percent per fiscal year thereafter) of the total amount of Federal funds received by such State under various Federal programs eliminated by amendments and repeals made under this Act. Precludes any State application or performance report requirements in order to receive such assistance. Requires the Secretary to report to the Congress if it is determined that a State has materially failed to comply with the terms of a grant or has expended funds in a manner inconsistent with Federal law. Authorizes appropriations. (Sec. 3) Repeals Federal law and specified Acts to eliminate public welfare programs in the areas of: (1) cash aid (including Aid to Families with Dependent Children and the Supplemental Security Income program); (2) medical aid; (3) food aid (including the food stamp and school lunch programs); (4) housing aid (including the rental assistance and public housing program); (5) energy aid; (6) jobs, training, and vocational education aid; (7) social services; and (8) aid to low-income communities. (Sec. 4) Amends title XIX (Medicaid) of the Social Security Act (the Act) to continue eligibility under the Medicaid program for individuals who were eligible for such assistance on the day before the enactment of this Act. Repeals a provision of the Act providing a six-month extension of Medicaid benefits for individuals no longer eligible for assistance under a State-approved plan. (Sec. 5) Transfers within the Act provisions concerning: (1) penalties for substantial noncompliance with a State plan for child and spousal support; and (2) certain administrative responsibilities of the Assistant Secretary for Family Support.