|
FSP-2002 Farm Bill Resource Issues |
Date: 10/10/02
Subject: FSP-2002 Farm Bill Resource Issues
To: Regional Directors / All Regions
Pending issuance of regulations concerning these issues, following is this office’s initial
response to a number of inquiries we have received regarding what resources can and cannot be excluded
under the provisions of Section 4107 of the 2002 Farm Bill. This section allows States to exclude certain
types of resources they do not count for Temporary Assistance for Needy Families
(TANF) cash assistance
or Medicaid (Section 1931).
Can States exclude all household resources if TANF cash assistance or Section 1931 Medicaid
do so?
No. Subparagraph 5(g)(6)(B) of the Food Stamp Act, as added by Section 4107(2) of the 2002 Farm Bill,
specifically provides that: “subparagraph (A) does not authorize a State agency to
exclude--(i)
cash; (ii) licensed vehicles; (iii) amounts in any account in a financial institution that are readily
available to the household; or (iv) any other similar type of resource the inclusion in financial resources
of which the Secretary determines by regulation to be essential to equitable determinations of eligibility
under the food stamp program.’’ Stocks and bonds are to be considered available to a household
under clause (iii). States may continue to use the authority provided in Subparagraph 5(g)(2)(D) of the
Food Stamp Act to exclude vehicles. This section allows States to substitute their TANF vehicle rules
for food stamp vehicle rules where doing so will result in a lower attribution of food stamp resources
to households.
What resources may be excluded under Section 4107 authority?
Except for those resource categories listed in the preceding response, States may exclude any type of
resource they do not count for TANF cash assistance or Section 1931 Medicaid, which is currently included
as a resource under the Food Stamp Act or regulations. Such resources could include retirement accounts
(including individual accounts if these funds are not readily available to the household – for example,
if a penalty is imposed for withdrawal). The term “readily available” will be more fully defined
in pending regulations.
Question: What resources will be determined "essential to the equitable determination
of eligibility" for food stamp purposes?
These resources will be specified in pending regulations.
If further information or assistance is required concerning this matter, please advise.
/S/ Arthur Foley
Arthur T. Foley
Director
Program Development Division
Back to the Top
|