1. Additional 15 Percent Exemptions for Able-Bodied Adults Without Dependents
States may exempt 15 percent of Able-Bodied Adults Without Dependents (ABAWDs) who have used up their three “free” months of food stamp eligibility, thus allowing the new exempt group to continue receiving benefits. The 15 percent is calculated against the ABAWD caseload after subtracting out those who are otherwise exempt through statutory exemptions or through USDA-approved waivers. States can exempt categories of recipients and geographic areas of their choosing so long as the 15 percent limit is not exceeded. The 15 percent limit for each state will be calculated for FY 98 using adjusted data from FY 96. In subsequent years, USDA will adjust the FY 98 limit to reflect changes in each state's caseload and in the proportion of food stamp recipients living in areas covered by waivers. States that exempt more or less than 15 percent will have their allowable exemptions increased or decreased accordingly in the following year.
2. New 100 Percent Federal Funding for Able-Bodied Adults Without Dependents
New 100 percent federal funding is provided through the Food Stamp Employment and Training (E&T) program for states to create workfare or subsidized job slots for ABAWDs. The current E&T allocations-$81 million for FY 98, rising to $90 million in FY 2002-are increased by the new funds to totals (combined “old” and “new” funds) of $212 million in FY 98, $215 million in FY 99, $217 million in FY 2000, $219 million in FY 2001, and $165 million in FY 2002. States will be allocated funds based on their proportion of non-exempt ABAWDs, and will be paid specific amounts based on the average monthly number of recipients placed in E&T activities (but not less than $50,000 per year). Payment rates will be set by USDA to “reflect the reasonable cost of efficiently and economically providing” the appropriate services.
2a. Restrictions on use of combined old and new E&T funds
States must use 80 percent of the combined E&T funds (old and new money) to serve food stamp recipients who are required to participate in work activities under the ABAWD provisions. The funds can be used only for workfare or subsidized job slots.
2b. Maintenance-of-effort requirement in order to receive funding
States will also come under a new E&T MOE requirement to access the new federal funds. To receive the new funds, states must continue spending 100 percent of any state funds they spent in FY 96 on matched E&T dollars (i.e., funds drawn down at the 50 percent matching rate beyond the state’s previous 100 percent federal allocation). Federal matching funds (50 percent) will continue to be available in the future for support costs (transportation and child care), but will be available for administrative and operating costs only for costs incurred to place individuals for whom unmatched federal grant money has not been used.
The MOE requirement does not apply to the “old” E&T money, which can be received whether or not the state complies with the MOE. In addition, state funds expended in compliance with the MOE may be used for any E&T activities authorized under existing rules.
2c. Reimbursement
The agreement authorizes USDA to monitor state E&T expenditures and determine the reimbursable costs of state E&T components that are “reasonable” based on several factors. These can include prior expenditures on the components, the variability of costs among state agencies’ components, and recipient characteristics among others.
3. Requirement to Match Food Stamp Rolls with Prisoners
The agreement requires states, within one year of enactment, to match food stamp rolls against prisoners incarcerated 30 days or longer in federal, state, and local correctional facilities to assure they do not receive food stamp benefits. In response to a proposal by APWA (now APHSA), the provision includes language allowing states to meet the requirement by use of Social Security’s prisoner data base system that agency uses for verifying proper receipt of Supplemental Security Income benefits. States may also request an extension of time (up to two years after enactment) if the state can demonstrate compliance is not feasible within one year, but the request must come directly from the governor’s office. The provision also allows USDA to determine that, because of “extraordinary circumstances,” it is impracticable for states to obtain the necessary information to match certain incarcerated individuals.