Able-Bodied Adults Without Dependents (ABAWDs)

March 11, 2004

Many States are submitting or preparing to submit Fiscal Year (FY) 2004 ABAWD waivers. Thus, this is an appropriate time for a brief overview of ABAWD waiver criteria and related topics to ensure a quick and efficient review process. 

A detailed ABAWD waiver guidance package, dated December 3, 1996, was distributed to all Regions with instructions to distribute the guidance package to the States. We suggest State agencies review this package for detailed guidance about data sources which can be used to substantiate the request and descriptions of various approaches for evaluating whether an area lacks a “sufficient number of jobs” to justify a waiver.

Waiver Criteria

Subsequent to the December 1996 waiver guidance package, we implemented final rules regarding the 3-month time limit for ABAWD participation in the Food Stamp Program. 7 CFR 273.24(f) allows FNS to waive the 3-month time limit for able-bodied adults who reside in an area that: 

(1) Has an unemployment rate which exceeds 10 percent; or 
(2) Does not have a sufficient number of jobs to provide employment for the individuals. 

To support a waiver of unemployment over 10 percent, a State agency may submit:

• Evidence that an area has a recent 12-month average unemployment rate over 10 percent;
• A recent three-month average unemployment rate over 10 percent; or
• An historical seasonal unemployment rate over 10 percent.

States must submit data that rely on standard Bureau of Labor Statistics (BLS) data or methods.

To support a claim of a lack of sufficient jobs, a State may submit evidence that an area:

• Is designated as a Labor Surplus Area (LSA) by the Department of Labor’s Employment and Training Administration (DOLETA).
• Is determined by the DOL’s Department of Unemployment Insurance Service as qualifying for extended unemployment benefits. 

o If a State is eligible for extended unemployment benefits anytime during the past 12 months, we will approve a waiver based on a State’s eligibility for extended employment benefits.

• Data from a BLS or the BLS cooperating state agency that an area has a 24-month average unemployment rate 20 percent above the national average for any 24-month period.

o This 24-month period may not be any earlier than the same 24-month period DOLETA uses to designate LSAs for the current fiscal year. For FY 2004, the 24-month period is January 2001 through December 2002.

• Has a low and declining employment-to-population ratio.
• Has a lack of jobs in declining occupations or industries.
• Is described in an academic study or other publications as an area where there is a lack of jobs.

Waiver Package Content

Please remind your States that:

• All data must come from acceptable sources:

o Unemployment rate data must come from the Bureau of Labor Statistics or cooperating state agencies.
o Labor Surplus Area data must come from the Employment and Training Administration.
o Census share data must come from the Census Bureau.

• All computations should be documented:

o Computations that are made with spreadsheets should be e-mailed.
o Spreadsheets’ cells that contain the results of computations should contain the formulae that derive the results, not just the results themselves.

• All data should be completely cited:

o Data from Internet websites should include the website’s Uniform Resource Identifier (URI) or Uniform Resource Locator (URL).
o Data from other sources should refer to the source document or enclose a copy with the request.

• Supplementary information should be clear and well documented:

o Unusual terms (like Indian trust lands) should be defined and their use explained.
o Maps should be included, when helpful.

If the request is acceptable, please send it to PDD and tell us so. If the request is not acceptable, please:

• Send it back to the State along with a description of the deficiencies, and
  Send it on to us, describing the deficiencies.

PDD will process whatever segment of the unacceptable request can be processed and will pend whatever is not.

Unemployment Rates and 20 Percent Threshold Tables

Below are two tables that provide national unemployment data and the 20 percent threshold necessary for an area to be exempt due to insufficient jobs.

The first table lists the average national unemployment rate and the 20 percent threshold for 24-month periods beginning in January 2001. We determined the 120 percent threshold values by calculating the US average unemployment rate (UER) to four decimal places, multiplying the product by 1.20 and then rounding the product to one decimal place. State agencies should follow the same rounding procedure for determining the UER and threshold value in the event they chose another acceptable 24-month period.

24-MONTH PERIOD UNEMPLOYMENT DATA

The second table lists the monthly national UER for the United States. This table will be
helpful in calculating a rough estimate of the 120 percent threshold for a 24-month period 
that differs from the January to December or fiscal year cycle.

UNITED STATES
MONTHLY UNEMPOYMENT RATES

Determining UER and 120 percent threshold for “Areas”

The regulations give State agencies the flexibility to cluster jurisdictions to determine if the UER for the cluster would meet the threshold value for a 24-month period. If a State agency decides to cluster jurisdictions, it must calculate the UER for the cluster. It is not acceptable simply to average the individual UERs for the jurisdiction in the cluster.

Expiration of Statewide Waivers

There may be instances where a State no longer qualifies for a statewide waiver. In this event, we will determine the number of “at risk” ABAWDs in the State and provide an adjusted 15 percent ABAWD exemption number.

If you have questions about ABAWD waivers, please contact Patricia Maggi at 703-305-2468.

/s/

Patrick Waldron
Acting Director
Program Development Division

Attachments

Cc: John Knaus, PDB
Mike DePiro, OANE 

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