Program Structure
- The Food Stamp Program retains its current structure as an uncapped,
individual entitlement.
- States will not have the option to choose a food stamp block grant
and alter the structure of the program.
- New provisions are effective upon enactment, with the exception of
some budgetary changes which are effective October 1, 1996.
- The legislation reauthorizes the program through FY 2002.
New Work Requirement. Able-bodied recipients ages
18 to 50 with no dependents are ineligible for food stamps unless
they meet a new work requirement. These recipients may receive
food stamp benefits for only three months in every 36-month
(three-year) period unless they are engaged in work or work programs.
If the recipient finds work and then loses his or her job,
however, an additional three months’ benefits are allowed once in the
three-year period.
"Work" includes participating in a
work program for 20 hours or more a week, averaged monthly.
Qualifying work programs include
- programs under the Job Training
Partnership Act or the Trade Adjustment Assistance Act;
- state or local programs approved by the governor,
including a food stamp employment and training program; and
- workfare.
Job search or job-search training programs do not qualify. States may
request waivers for areas with unemployment over 10% or with insufficient
jobs.
Employment and Training (E&T). States will have greater
flexibility to run the Food Stamp (E&T) Program. Funding will
increase gradually, totaling $79 million in FY 1997, and rising to
$90 million in FY 2002. The program must be carried out through a
statewide workforce development system unless the component is not
available locally through such a system.
Simplified Food Stamp Program. States may operate a
"simplified food stamp program" for households in
which one or more members receive assistance under the TANF block grant.
The simplified program allows for a single set of rules and procedures
to determine eligibility and benefits for food stamps and standardizes
the deductions between programs. A state’s simplified plan may not
increase costs to the federal government. If it does, the state must
enter into and carry out a corrective action plan, or the secretary of
agriculture must terminate the state’s simplified program. States will
not be required to collect information on households not in the
simplified program; USDA may approve alternative accounting periods
in making cost determinations; and states may include in the program
households with one or more non-TANF members if approved by USDA.
Waiver Authority. The conference agreement includes
new waiver authority allowing states to request waivers for welfare
reform, work, or multiprogram conformity projects, with some
restrictions.
The major restrictions include
- no new cash-out projects;
- no transfer of food stamp or E&T funds to other
assistance programs;
- no non-time-limited projects;
- a limitation to 15 percent of the caseload and five years
duration if the project would reduce benefits by more than 20
percent for more than 5 percent of households in the project;
- no adverse effect on certain vulnerable populations nor on certain
rights and procedures in the Food Stamp Act;
- no conditions based on "behavioral" activity,
such as a family cap or benefit time limits; and
- no waivers of a provision of the Simplified Food Stamp Program
option.
Deductions from Income. The standard deduction will remain
frozen at FY 96 levels--$134 for the 48 states and D.C. The excess
shelter deduction will remain capped at current-law levels through
December 31, 1996--$247 for the 48 states and D.C.--then rise
incrementally to $300 through FY 2001. Low-Income Home Energy
Assistance Program (LIHEAP) payments will not be counted as income,
the homeless shelter allowance is frozen at current levels, and
earned-income deductions will be disallowed if the earned income
is not reported in a timely manner.
Adjustment to Thrifty Food Plan. The maximum food stamp benefit
will be 100 percent of the cost of the Thrifty Food Plan, rather than
at 103 percent as under previous law.
Food Stamp Cash-Out (Employment Initiatives Program).
Qualifying states may cash out food stamp benefits to individuals
who have worked in unsubsidized employment for at least 90 days,
earned at least $350 a month, and receive benefits under TANF.
Qualifying states are those where at least 50 percent of the food
stamp households also received AFDC during 1993.
States must increase benefits to compensate for state or local
food sales taxes faced by these individuals.
Work Supplementation. States may operate a work supplementation
or support program where the value of public assistance, including food
stamps, is provided to employers to be used for hiring and paying the
recipient.
Reduction of Public Assistance Benefits. Individuals whose
benefits are reduced under other means-tested programs as a penalty
cannot have their food stamp allocation increased. The state may reduce
the food stamp allotment of the household by up to 25 percent.
Child Support. States have the option to disqualify individuals
who are delinquent in any payment due under a court order for the
support of a child. States may disqualify custodial or noncustodial
parents who do not cooperate with the child support program.
Other State Administrative Options. The bill allows states a
degree of additional administrative flexibility in several areas. States
will no longer be governed by detailed rules for application forms and
procedures; they may allow verbal fair-hearing withdrawals; and they may
use the IEVS system and the SAVE system at their option.
Retention Rates. Changes the retention rates, allowing states to
keep 35 percent of fraud over-issuance collections and 20 percent of
nonfraud collections.
Quality Control (QC). The new law leaves present QC law
intact. Present QC law also will apply to the Simplified Food Stamp
Program option.
Other Administrative Simplifications and Changes
- The new legislation extends the expedited service timetable from
five to seven days and ends categorical expedited service for homeless
households. Expedited service will still have to be provided to
households whose shelter costs exceed their income and resources.
- States may lower the age of the caretaker exemption to 3 years
without restriction. A state may lower the age to as low as 1 year
only if it requested a waiver to do so and had the waiver denied prior
to August 1, 1996.
- The bill provides other administrative reforms including
- allowing 12-month certification periods (24 months for elderly
and disabled households) with one contact per year;
- requiring that later recertification benefits be prorated,
rather than issued as a full month; and
- allowing states to combine allotments for the first and second
months for expedited households applying after the 15th of the
month.
