An amendment in the nature of a substitute consisting of the text of H.R. 3200 to require participation in education, training, and work programs by all heads of households receiving AFDC benefits, except those with children under six months of age. The amendment establishes specific standards for the percentage of recipients that states must have enrolled in programs by various dates. It authorizes $500 million in FY 1988, and such sums as may be necessary thereafter for state education, training, and work programs for welfare recipients, and for day care assistance to those leaving welfare because of increased earnings, but makes this funding subject to annual appropriations. The substitute does not include provisions that require states to extend eligibility for welfare to two-parent families where the major wage earner is unemployed; does not raise the federal matching payment to states that raise benefits; does not increase federal reimbursement for day care costs, or permit recipients to retain more of their earnings from work without having benefits reduced. Finally, cost estimates for the substitute are $215 million in FY 1988, and $1.1 billion over five years.