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Lump Sum Payments as Income

EO Guidance Document #
FNS Document #
WIC 1992-14
Resource type
Policy Memos
Guidance Documents
Resource Materials
PDF Icon Policy Memo (833.33 KB)
DATE: July 9, 1992
MEMO CODE: Policy Memorandum 92- 14
SUBJECT: Lump Sum Payments as Income
TO: Regional Directors
Supplemental Food Programs
All Regions

Attached for your information and dissemination to your state agencies is Policy Memorandum 92- 14. which provides guidance on the determination of lump sum-payments for WIG income eligibility purposes. We appreciate receiving your comments, all of which were helpful in clarifying issues involving lump sum payments .

A common concern voiced in your comments on the draft policy memorandum dated May 21, 1992, was that some lump sum payments should not be treated as income because they represent reimbursements for a loss. usually of an asset. Based on this, we decided to make a distinction between lump sum payments which are reimbursements and those which are "new money" and are intended to be used for income. As the attached policy memorandum explains, those lump sum payments which are clearly reimbursements should be excluded from income eligibility determinations, those which are intended to be income should be treated as "other cash" available to the household, and those payments which can not be easily categorized as either reimbursement or "new money" should be left to the discretion of the State and/or local agency to determine as appropriate to the economic circumstances of the household.

We hope that this guidance will adequately respond to most situations involving lump sum payments.

Supplemental Food Programs Division

Page updated: November 30, 2021

The contents of this guidance document do not have the force and effect of law and are not meant to bind the public in any way. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies.