Categorical Eligibility Questions and Answers and Changes in Policy
Attachment A
Question: Regulations at 7 CFR 273.2(j)(2)(iv) define the term
authorized to receive benefits. To be authorized to receive
a benefit, must the other program actually notify the food
stamp client of this authorization?
Answer: To be considered authorized to receive a benefit, the
client must be determined eligible for the benefit and must receive notification
of the eligibility determination. Eligibility for benefits, in and of
itself, is not sufficient to confer categorical eligibility.
Question: What do State agencies need to do to show that programs
are funded 50 percent and means-tested?
Answer: The Food and Nutrition Service (FNS) will accept the
State’s determination that a program is more than 50 percent funded with
Temporary Assistance for Needy Families (TANF) and/or Maintenance of Effort
(MOE) funds. We will also accept the State’s determination as to whether
a program is means tested and whether it meets the 200 percent of the
Federal poverty line threshold. Although FNS will not require specific
information regarding State programs as a condition of approval, we may
request additional information from the State agency if necessary.
Question: If a household member (or the entire household) is
disqualified from receiving cash assistance under the TANF Program, but
receives or is authorized to receive non-cash or in-kind TANF or State-funded
MOE benefits, is the household still considered categorically eligible?
Answer: The household would continue to be categorically eligible
if any member(s) receive, or are authorized to receive, non-cash or in-kind
benefits that are more than 50 percent funded with TANF or MOE moneys.
If the household receives, or is authorized to receive, non-cash or in-kind
benefits from programs that are more than 50 percent funded with State
money for MOE purposes under Title IV-A, or through Federal money under
Title IV-A, the household must be considered categorically eligible. State
agencies may confer categorical eligibility on households that
receive, or are authorized to receive, non-cash or in-kind benefits from
programs that are less than 50 percent funded with State money for MOE
purposes under Title IV-A, or through Federal money under Title IV-A.
The State agency may also confer categorical eligibility if the
a member receives, or is authorized to receive, non-cash or in-kind benefits
and the agency determines that the entire household benefits.
Question: Does the requirement that programs intended to further
purposes three and four of the TANF block grant impose an eligibility
threshold of 200 percent of the Federal poverty level as a condition of
conferring categorical eligibility on program recipients also apply to
programs which are intended to further purposes one and/or two of the
TANF block grant and purposes three and/or four of the block grant?
Answer: Programs intended to further purposes one and/or two
of the TANF block grant confer categorical eligibility without regard
to the 200 percent gross income threshold even if such programs are also
intended to further purposes three and/or four of the TANF block grant.
Rationale: The first two purposes of the TANF block grant are
to: (1) provide assistance to needy families so that children may be cared
for in their own homes or in the homes of relatives, and; (2) end the
dependence of needy parents on government benefits by promoting job preparation,
work, and marriage. The benefits issued to further both purposes are specifically
targeted towards needy families, implicitly requiring that State agencies
impose some type of income-based means test. If a program funded at more
than the 50 percent level with TANF or MOE finds, even in part, is intended
to further purposes one and/or two of the block grant, such a program
would confer categorical eligibility on recipients since it would normally
require an income-based means test as a condition of eligibility. If a
program funded at more than the 50 percent level with TANF or MOE funds,
even in part, is intended to further purposes one and/or two of the block
grant, such a program would confer categorical eligibility on recipients
since it would normally require an income-based means test as a condition
of eligibility. Purposes three and four of the TANF block grant, specifically
preventing and reducing the incidence of out-of-wedlock pregnancies and
establishing annual numerical goals for preventing and reducing the incidence
of these pregnancies; and encouraging the formation and maintenance of
two-parent families are not limited to needy families. Because programs
intended to further purposes three and four of the TANF block may be very
broad, we imposed the requirement that such programs, as a condition of
conferring categorical eligibility, limit participation to households
whose gross income does not exceed 200 percent of the Federal poverty
level to ensure that only households actually in need of assistance are
considered categorically eligible.
Question: May a program which is apparently intended to further
purposes one and/or two of the TANF block grant confer categorical eligibility
if it does not require an income-based means test as a condition of participation?
Answer: Programs intended to further purposes one and two of
the TANF block grant are specifically intended for needy families. Because
the statute uses the term, "needy", in references to purposes
one and two of the TANF block grant, only programs which impose some type
of income-based means test as a condition of eligibility are considered
to be further purposes one and/or two of the TANF block grant. Unlike
programs intended to further purposes three and four of the block grant,
we have not set a specific means test for programs intended to further
purposes one and two of the block grant, although we requiring that the
State impose some form of income-based means test before the program can
confer categorical eligibility.
Question: The rule specifically mandates that State agencies
confer categorical eligibility on households which receive, or are authorized
to receive, benefits under programs that are more than 50 percent funded
with TANF or MOE funds. For programs that are less than 50 percent funded
with TANF or MOE funds, categorical eligibility is optional (As a condition
of conferring both mandatory and optional categorical eligibility, programs
which are intended to further purposes three and four of the TANF block
grant must also limit participation to households with incomes no greater
than 200 percent of the Federal poverty level.). How do State agencies
handle programs, which are funded with TANF or MOE-funded at exactly the
50 percent level?
Answer: Since the rule does not specifically address programs
which are funded at exactly the 50 percent level, State agencies may confer
categorical eligibility on recipients of such programs at their discretion,
provided that all similarly situated program recipients are treated uniformly.
We will address this situation in a future rulemaking.
Question: Some categorically eligible households are not entitled
to benefits because of their net income. Can a State agency now deny the
application of such a household?
Answer: A State agency may now deny an application of an otherwise
categorically eligible household with three or more members if the household’s
net income exceeds the maximum income eligibility level. This option does
not apply to 2-member households that are entitled to a $10 minimum benefit.
The change is the result of an amendment that was included in the rule
issued November 21, 2000. Alternatively, the State agency may hold the
application in a pending status.
Question: Has the November 21 rule changed State agency options
regarding the categories of households subject to mandatory categorical
eligibility?
Answer: Under the rule, mandatory categorical eligibility was
expanded to also include programs intended to further purposes three and/or
four of the TANF block, if the programs are more than 50 percent funded
with State money for MOE purposes under Title IV-A, or through Federal
money under Title IV-A, provided that such programs limit participation
to households with gross incomes equal to or less than 200 percent of
the Federal poverty limit. Prior to the rule, States had the option to
confer categorical eligibility on recipients of those programs.
Question: A household may be not be categorically eligible if
it contains a member who has been disqualified from participation in the
Food Stamp Program as provided under 7 CFR 273.2(j)(2)(iii). 7 CFR 273.8(e)(17)
requires the exclusion of the resources of a member who receives PA or
SSI benefits. If a household member is subject to disqualification under
the provisions of 7 CFR 273.2(j)(2)(iii), but continues to remain eligible
for TANF-funded assistance (or SSI), how should the member’s resources
be handled?
Answer: The resources of the disqualified member would continue
to be excluded. Under Section 5(j) of the Food Stamp Act, the statutory
basis for 7 CFR 273.8(e)(17), household members who receive SSI or TANF
benefits are considered resource eligible for food stamp purposes.
Last modified:
04/30/2009
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