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

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