Policy Directive                                                     Issuance Number: FSC 99-21

Food Stamp Certification Manual                     Issuance Date: 12/1/99

From: Ruth Whitney, Director                               Expiration Date: Until Superseded

Subj: Categorical Eligibility

In Arkansas, the Transitional Employment Assistance (TEA) Program is funded through a Temporary Assistance for Needy Families (TANF) block grant. Under TANF rules, resources, particularly vehicles, are handled differently than they are in the Food Stamp Program. For example under TEA 2272, one vehicle is excluded for each household.

Households where all members receive TANF (TEA) benefits or a combination of TEA and SSI benefits are categorically eligible. Vehicles and other resources that are owned by members of categorically eligible households are excluded under food stamp rules. See FSC 4451.

The United States Department of Agriculture, Food and Nutrition Service (FNS) is aware that families that have moved from welfare to work often rely on food stamp benefits to provide their basic nutritional needs. In order to assist families that own vehicles over the Food Stamp Program resource limits make a successful transition to self-sufficiency, FNS has allowed each State to redefine categorical eligibility within certain parameters. Arkansas’ new definition appears below.

OLD POLICY Households composed entirely of TEA and/or SSI recipients are classified as categorically eligible households.

NEW POLICY The definition of a categorically eligible household is being expanded to include:

1. Those households where all members receive or are certified to receive TEA cash assistance or certain non-cash TEA benefits; and

2. Those households where the entire household benefits because at least one household member receives one of the TEA benefits listed below in item III.

Example 1 When a household member receives TEA cash assistance, the entire household benefits from the additional financial support.

Example 2 When a household member is able to work because he or she is receiving child care assistance, the entire household benefits from the child care assistance.

PLEASE NOTE: These provisions will not affect the selection of households required to participate in the Simplified Food Stamp Program (SFSP). Only households where all members, except family cap children, receive TEA cash assistance or a combination of TEA cash assistance and SSI benefits may participate in the Simplified Food Stamp Program.

Neither will this directive affect the policy at FSC 1631 which governs separate households. There are no changes in these provisions.

A list of benefits provided through the DHS county office appears below. This list is all-inclusive. Other benefits funded in whole or in part by TANF funds will not confer categorical eligibility.

• Child-care assistance – (Since child-care assistance is funded by the CCDF with state MOE funds, child-care assistance will be considered the same manner as TANF funded assistance.) Child care assistance provided to eligible individuals when such assistance is necessary for an individual to participate in any TEA work activity will confer categorical eligibility. Extended child care assistance provided to former TEA recipients when the TEA cash assistance case is closed due to employment will also confer categorical eligibility.

• TEA cash assistance – These monthly payments are available to help meet the family’s basic needs while the parent or other adult relative works toward increasing his or her earning potential. An eligible family may receive cash assistance for no longer than 24 months. TEA cash assistance is also available to help meet the needs of children who are being cared for by non-parent adult relatives. Assistance to such relatives is available without regard to a specified time limit.

• Mentoring services – This service is designed to provide clients with the support needed to move from welfare to work. Mentoring services will be provided as long as it is deemed appropriate by the worker, coordinator and mentee. If the TEA case closes due to employment, these services may be provided for up to six months after the date of closure.

• Case management services and extended case management services – Case management is the process of coordinating and brokering the multiple services needed to achieve progress towards self-sufficiency. Case Managers serve as a point of contact for the client and a point of accountability for the agency. Case management services will be provided to those individuals who need assistance before and after accepting employment. This service will be provided as long as the client is eligible. Extended case management may be provided for up to 12 months after cash assistance has been terminated due to employment.

• Employment Bonus – An Employment Bonus cash payment will be made to any family that becomes income ineligible due to employment or who requests the cash assistance case be closed due to employment. Only one Employment Bonus may be authorized to a family within a 12-month period.

• Transportation assistance – When a TEA case closes due to employment (by agency determination or at the family’s request), the family is automatically eligible to receive two months of Extended Support Services (ESS) Transportation assistance. There is no limit to the number of times a family may receive ESS Transportation assistance.

• Job retention payments – When a TEA case closes due to employment, the family may receive, during the 12-month period following case closure, a cash payment for the purpose of enabling the adult to retain his or her job. The amount of payment will be the actual amount needed to resolve the job-related need.

Households found to be categorically eligible under these rules will be coded as a PA household on the FACTS system. Code "1C" will be used for these households.

A categorically eligible household does not have to meet the Food Stamp Program resource limits. Categorically eligible households do not have to meet gross income limits.

The county office worker must determine if a household is categorical eligibility if:

• An application for food stamp benefits is about to be denied because the household has resources or income over the Food Stamp Program limits; or
• A food stamp case is about to be closed because the household has resources or income over the Food Stamp Program limit.

Any food stamp application denied or any food stamp case closed due to excess resources or income must contain documentation that the household is not categorically eligible. To assist in the process of applying these rules to households with excess resources and documenting the result, a categorical eligibility test has been developed. The test is attached to this directive. The categorical eligibility test must appear in all food stamp denials and closures if the basis of the denial is excess resources or income.

When a food stamp case is adjusted to remove a TEA cash assistance payment from the budget, the household’s categorical eligibility status will be determined. If the household continues to be categorically eligible due to receipt of non-cash TEA benefits through the DHS County Office, the food stamp case will not be closed due to excess resources or income. If the household is no longer categorically eligible, the case will be closed if the household’s income or resources exceed Food Stamp Program limits.

If a household subject to quarterly reporting is receiving non-cash TEA benefits, the household’s categorical eligibility status will be reviewed each time the quarterly report is submitted. Each county should devise some method of insuring that categorical eligibility is monitored for households not subject to quarterly reporting. For example, the county office worker could assign a certification period to end no later than the month in which the household’s non-TEA cash benefits are expected to end. If the household is no longer categorically eligible, the case will be closed if the household’s income or resources exceed Food Stamp Program limits.

This categorical eligibility resource test will only be used when a food stamp application is to be denied or a food stamp case is to be closed due to excess resources or income.

To determine if a household with excess resources or income is categorically eligible, the county office worker may follow these steps:

STEP 1  Do all household members receive any combination of SSI benefits and/or TEA cash assistance?  YES r NO r

If yes, the household is categorically eligible. Process the application. (When all household members receive TEA cash assistance or a combination of TEA cash assistance and SSI benefits, the household participates in the Simplified Food Stamp Program. Households where only family cap children do not receive TEA benefits also participate in the SFSP.)

If no, go to STEP 2.

STEP 2  Do all household members receive TEA benefits through the DHS County Office? YES r NO r

If yes, the household is categorically eligible. Process the application.

If no, go to Step 3.

STEP 3  Do some, but not all, household members receive any TEA benefit through the DHS County Office? YES r NO r

If yes, the household is categorically eligible. Process the application.

If no, the household is ineligible. Deny the application.