Fiscal Year 2003  Federal Employment and Training Program Grants

July 3, 2002

Subject: Fiscal Year 2003 Federal Employment and Training Program Grants

To: Program Directors / All Regions

Attached for immediate dissemination to State agencies are the fiscal year (FY) 2003 100 percent Federal Food Stamp Employment and Training (E&T) Program grants. The amounts represent each State agency’s share of the $90 million authorized under section 16(h)(1)(A) of the Food Stamp Act to carry out the E&T Program.

The Farm Security and Rural Investment Act of 2002 (the Farm Bill) significantly altered the way E&T Program funds are allocated and spent. The Secretary is authorized to use a reasonable grant allocation formula that takes into account the numbers of able–bodied adults without dependents (ABAWDs) subject to the 3–month time limit. For the FY 2003 allocation, we chose a formula that combines each State agency’s numbers of work registrants and numbers of ABAWDs as a percentage of the numbers of work registrants and ABAWDs nationwide. In addition, the use of funds requirement, the maintenance of effort requirement, as well as maximum slot reimbursement rates were eliminated.

The Farm Bill also provides for an additional $20 million in 100 percent Federal funds to allocate to State agencies that commit to offer and provide a qualifying education, training, or workfare opportunity that permits every non–excepted, non–exempted, and non–waived ABAWD applicant and recipient to remain eligible beyond the of the 3–month time limit. As we indicated in the Farm Bill implementing memorandum of June 21, 2002, interested States are to incorporate the commitment in their FY 2003 State E&T Plans, which are due no later than August 15, 2002. We will allocate the $20 million as soon thereafter as possible, after we determine the number of State agencies participating.

If you have any questions, contact Micheal Atwell at 703–305–2449.

/S/ Arthur Foley

Arthur T. Foley
Director
Program Development Division

Attachment (FY 2003 E&T Allocation Table)

cc:
Financial Management Directors, All Regions
Deputy Administrator, Financial Management
Director Budget Division
Director Accounting Division
Director, Grants Management Division

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