TANF Diversion Payments

The FNS National Office sent the memorandum below to all FNS regional offices to clarify a point in a policy announced in June 1998.

To: All Program Directors / Food Stamp Program

June 10, 1999

On June 16, 1998, we sent you a memorandum advising that TANF diversion payments could be excluded as a nonrecurring lump-sum payment under the following conditions.

• The payment is a one-time payment made no more than once in any 12-month period to meet needs that do not extend beyond a 90-day period;

• The payment is primarily designed to address barriers to achieving self-sufficiency; and

• The household did not receive a regular monthly TANF payment in the prior month or the current month.

We further advised that if only one payment is expected to be made, but some unforeseen circumstance results in a second payment being made later in the same 12-month period, the first payment would be excluded as a nonrecurring lump-sum payment and the second payment would be counted as income.

The statement that the second payment would be counted as income has caused some confusion. This memo is to clarify that the second payment cannot be excluded as a nonrecurring lump-sum payment, but it may be excluded under any other provision of the regulations that is applicable, such as the reimbursement provision at 7 CFR 273.9(c)(5). In other words, if one provision does not apply and another one does, the provision that does may be applied.

If we can be of further assistance, please let us know.

/s/

Arthur T. Foley
Director
Program Development Division

Last modified: 11/30/2011