General Assistance and Public Assistance Diversion Payments - Further Guidance

The memorandum below was sent to all Food Stamp regions to supply further guidance on diversion payments.

July 2, 1998

Subject: FSP - General Assistance and Public Assistance Diversion Payments

To: All Program Directors / Food Stamp Program

On June 16, 1998, we sent you a memorandum regarding the subject matter. We advised that some of the factors we would consider in making a decision to exclude the payments are as follows:

• The payment is a one-time payment made no more than once in any 12-month period to meet needs that do not extend beyond a 90-day period, such as automobile repair to retain employment and avoid welfare receipt and appliance repair to maintain living arrangements; and
• The State agency advises in writing that the payment is primarily designed to address barriers to achieving self-sufficiency, rather than provide assistance for normal living expenses; and
• The household did not receive a regular monthly TANF payment in the prior month or the current month.

Regarding one-time payments, a payment may be excluded from income even though State law or regulations do not forbid an additional payment in any 12-month period. The key is that at the time a payment is made it is expected to be nonrecurring. If only one payment is expected to be made, but some unforeseen circumstance results in a second payment being made later in the same12-month period, the first payment would be excluded and the second payment would be counted as income.

In our previous memorandum, we requested that each State agency that makes such payments submit in writing information regarding these payments. If the State agency submits information that addresses the above issues but does not include all of the information requested in the last paragraph of our previous memorandum, you should submit the request to us without going back to the State agency for the additional information.

Please call Mary Patrick 703-305-2507 if you have any questions on this memo.

/s/

Arthur T. Foley
Director
Program Development Division

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