FSTL 235 (Modification of the Expansion of Categorical Eligibility)
Food Stamp Transmittal Letter No. 235
September 25, 2001
TO: Food Stamp Certification Handbook Holders
FROM: Thomas J. Hayes, Director
SUBJECT: Modification of the Expansion of Categorical Eligibility Elimination of Suspension Status of Categorically Eligible AGs Updates to the Procedural Section

The policy changes in this FSTL are effective September 30, 2001. This cover letter includes a statement of the policy to aid in your understanding. The statements reference clearance control number (CCN) 4748 which was assigned when the policy change was placed in the clearance process. Clearance comments have been evaluated and where appropriate, incorporated into the rule.

Background Information

Effective August 1, 1999, in an effort to support working families and to help those leaving the public assistance system retain their jobs and succeed in the workforce, a policy amendment was issued by ODJFS in response to an announcement made earlier by the President which related to categorical eligibility for food stamp benefits. The policy change expanded categorical eligibility to needy and low-income families who were authorized to receive or receiving benefits funded primarily through TANF (Title IV-A or MOE) whether the benefits were cash or services. Since the Prevention, Retention, and Contingency (PRC) Program in Ohio is funded primarily using TANF or MOE monies, categorical eligibility was conferred to AGs authorized to receive or receiving PRC benefits or services.

Modification of Expansion

The initial expansion of categorical eligibility met the four purposes of TANF to (1) provide assistance to needy families to care for their children in their own homes or in the homes or relatives; (2) end needy parents' dependence on governmental programs; (3) prevent and reduce out-of-wedlock pregnancies; and (4) encourage the formation and maintenance of two-parent households.

Rule 5101:4-2-02 has been amended to clarify the policy which expanded categorical eligibility to these AGs.

Effective September 30, 2001, categorical eligibility for food stamp benefits conferred to AGs in which any member(s) is authorized to receive or is receiving benefits or services under the PRC program that assists them in the prevention and reduction of out-of-wedlock pregnancies or benefits or services which encourage the formation and maintenance of two-parent families must meet income eligibility criteria that requires their gross monthly income to be at or below two hundred per cent (200%) of the federal poverty level according to their AG size.

In general, the Food and Nutrition Service (FNS) believes that states have designed their TANF cash assistance programs and support services for families who meet income eligibility criteria. However, it has since been determined that not all TANF services apply income eligibility criteria. FNS had decided that it is inappropriate to confer categorical eligibility without income eligibility criteria. Therefore, policy has been modified to confer categorical eligibility to all AGs in which a member is authorized to receive TANF funded benefits and services designed to further TANF purposes one and two, which by statute must be targeted to "needy families." In addition, categorical eligibility is conferred to all AGs in which a member is authorized to receive TANF funded benefits and services designed to further TANF purposes three and four, as long as those services have income eligibility criteria set at 200 percent of the Federal poverty level or lower. The decision to apply income eligibility criteria to benefits and services for purposes three and four of TANF was made in order to (1) ensure that only TANF benefits and services with income eligibility criteria confer categorical eligibility, and (2) maximize the usefulness of categorical eligibility based upon an analysis by Health and Human Services which determined that for services with income eligibility criteria, such criteria tend to be set at 200 percent of the Federal poverty level or lower (although some states may have income eligibility criteria at higher levels).

Elimination of Suspensions

For AGs of three or more which are entitled to no benefits (except in the case of prorations and issuances of less than $10 in an initial month), the county agency must deny the application based on the fact that its net income exceeds the level at which benefits are issued.

Optional language covering the suspension of benefits in rule 5101:4-2-02 (L) has been removed.

NOTE:As is true of the initial expansion, the modification of categorical eligibility under the PRC program does not change the policy and procedure in determining eligibility for OWF/SSI/DA AGs or a combination of OWF, SSI, and/or DA members categorically eligible for food stamp benefits due to all members of the AG being authorized to receive or receiving OWF, SSI, and/or DA benefits.

Updates/revisions in the Procedural Section of the FSCH

Due to the changes generated by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) as well as language changes necessitated due to the conversion to benefit issuance using the Ohio Direction Card, language changes to several updates/revisions have been made in the Procedural Section of the FSCH. Some of these changes were issued earlier in FSTL 233-A. Additional updates to the procedures are being issued with this FSTL.

Instructions

Remove and file as obsolete pages headed 5101:4-2-02 dated August 1, 2000 and replace with the attached pages headed 5101:4-2-02 dated September 30, 2001.

Remove and file as obsolete Procedures 1, 2, 3, 4, and 6 and replace with corresponding procedures dated July 1, 2001 (Procedures 1, 2, 3, 4, and 6).

Update Appendix 35, Record of Changes to Handbook with the date and number of this transmittal.

Services Provided Under the Prevention, Retention, and Contingency Program

Automobile down payment/Loan or lease

Automobile repair

Clothing expenses

Computers/ internet access

Counseling

Disaster assistance

Diversion payment

Domestic violence services

Education expenses (tuition, books, fees, etc.)

Emergency medical services

Expenses for non-custodial parent

Family budgeting services

Homemaker services

Home ownership down payment assistance

Home repair expenses

Household expenses

Individual development account (IDA) match

Job related expenses

Job retention service/bonus

Job support services

Life skills

Pregnancy prevention services

Relocation assistance

Respite care

Shelter expenses

Short term education expenses

Substance abuse treatment services

Transportation expenses

Work subsidy to employer/employee

* Other benefits and services

* Each county department of job and family services (CDJFS) has statutory authority to establish or specify assistance or services to be provided under the program.