|April 29, 2021
|Supplemental Nutrition Assistance Program (SNAP) – Disbursement of SNAP State Administrative Expense Funding Provided by American Rescue Plan of 2021
|All State SNAP Agencies
Section 1101(b) of the American Rescue Plan Act of 2021 provides an additional $1.15 billion of appropriated funds for SNAP administrative expenses to assist state agencies in carrying out legislative provisions and administering SNAP. These funds are available at a 100 percent reimbursement rate and will be awarded through the Grant Agreement form (FNS-529). This memorandum provides state agencies with their allocations.
Per the previous memorandum dated March 12, 2021, $15 million of the appropriated funds are directed to the Secretary of Agriculture for management and oversight of the program, and the remaining $1.135 billion shall be obligated to state agencies as grants in fiscal years (FYs) 2021, 2022, and 2023. FNS recognizes that states may not have sufficient time to develop strategies to spend the additional 100 percent administrative funds in FY 2021; therefore, FNS is amending the allocation amounts for each of the fiscal years. FNS will allocate $245 million to state agencies in FY 2021. In each of the fiscal years 2022 and 2023, FNS will allocate $445 million to state agencies. States will have a one-year period of performance associated with these funds.
In accordance with the American Rescue Plan Act of 2021, for each FY, 75 percent of each FY’s allocated total is allocated to states according to SNAP participation levels, adjusted for participation in disaster programs, and 25 percent is allocated according to SNAP participation increases based on the data reported to FNS for the most recent 12-month period for which data is available. State allocations in the attached chart are based on data from December 2019 through November 2020. States that did not experience SNAP participation increases during the specified timeframe are allocated funds from the 75 percent based on overall participation but are not allocated additional funds from the 25 percent portion of the formula. Attached is a chart listing each state’s total allocation.
Although these administrative expenditures will use the same Assistance Listing number as normal SNAP administration funds, 10.561, state agencies will need to track administrative expenditures separately for the American Rescue Plan Act of 2021. Therefore, state agencies will be required to sign and return an FNS-529, as part of the grants award process for FYs 2021, 2022, and 2023. The FNS-529 will include terms and conditions and require state agencies to submit a plan describing how the state proposes to spend the additional 100 percent administrative funding. At a minimum, the plan should include State Administrative Expenses (SAE) cost categories, such as certification, Electronic Benefit Transfer (EBT) issuance, quality control, management evaluation, etc., as well as a description of how funds will be used. State agencies are not required to submit a separate Program and Budget Summary Statement, Part A- Budget Projection (FNS-366A) for the 100 percent funding or revise the FNS-366A for the current fiscal year.
For FY 2022 and FY 2023, states must submit the FNS-529, terms and conditions, and the plan describing how the state is going to use funds, with their State Plans of Operation due to regional offices by August 15, as required by 7 CFR 272.2(e). Additionally, state agencies should report expenditures associated with funds provided under the Act on a separate SF-425/778, which FNS will make available within the Food Program Reporting System (FPRS), and must follow the regulations at 7 CFR 272.2(c). This process allows FNS to monitor state administrative costs and the expenditures associated with the American Rescue Plan Act of 2021 funds and properly close the grant award at the end of the period of performance.
Please be aware that these funds are in addition to the 100 percent SNAP SAE funds provided in the Consolidated Appropriations Act of 2021. While available for similar purposes, the two funding streams will be separate awards and require separate reporting.
State agencies with questions should contact their respective FNS regional office representatives.
Supplemental Nutrition Assistance Program
|David G. Burr
Chief Financial Officer