Short title

This Act may be cited as the

Food Stamp Fairness and Benefit Restoration Act of 2007

Ending benefit erosion

Section 5(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)(1)) is amended— (1)in subparagraph (A)(ii)— (A)by striking Notwithstanding clause (i) and inserting the following:

(I)

In general

Notwithstanding clause (i) and except as provided in subclause (II)

; and

(B)by adding at the end the following:

(II)

Inflation adjustment

On October 1, 2008, and each October 1 thereafter, each of the amounts specified in subclause (I) shall be adjusted to the nearest lower dollar increment to reflect changes for the 12-month period ending on the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than food.

; and

(2)in subparagraph (B)(ii)— (A)by striking Notwithstanding clause (i) and inserting the following:

(I)

In general

Notwithstanding clause (i) and except as provided in subclause (II)

; and

(B)by adding at the end the following:

(II)

Inflation adjustment

On October 1, 2008, and each October 1 thereafter, the amount specified in subclause (I) shall be adjusted to the nearest lower dollar increment to reflect changes for the 12-month period ending on the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than food.

Supporting working families with child care expenses

Section 5(e)(3)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)(3)(A)) is amended by striking , the maximum allowable level of which shall be $200 per month for each dependent child under 2 years of age and $175 per month for each other dependent,.

Encouraging retirement and education savings among food stamp recipients

(a)

Allowable financial resources

Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is amended— (1)by striking (g)(1) The Secretary and inserting the following:

(g)

Allowable financial resources

(1)

Total amount

(A)

In general

The Secretary

;

(2)in subparagraph (A) (as designated by paragraph (1)— (A)by inserting (as adjusted in accordance with subparagraph (B)) after $2,000; and (B)by inserting (as adjusted in accordance with subparagraph (B)) after $3,000; and (3)by adding at the end the following:

(B)

Adjustment for inflation

(i)

In general

Beginning on October 1, 2007, and each October 1 thereafter, the amounts in subparagraph (A) shall be adjusted to the nearest $100 increment to reflect changes for the 12-month period ending the preceding June in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. (ii)

Requirement

Each adjustment under clause (i) shall be based on the unrounded amount for the prior 12-month period.

(b)

Exclusion of retirement accounts from countable financial resources

(1)

In general

Section 5(g)(2)(B)(v) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)(2)(B)(v)) is amended by striking or retirement account (including an individual account) and inserting account. (2)

Mandatory and discretionary exclusions

Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is amended by adding at the end the following:

(7)

Exclusion of retirement accounts from countable financial resources

(A)

Mandatory exclusions

The Secretary shall exclude from financial resources under this subsection the value of any funds in a plan, contract, or account, described in sections 401(a), 403(a), 403(b), 408, 408A, 457(b), and 501(c)(18) of the Internal Revenue Code of 1986 and the value of funds in a Federal Thrift Savings Plan account as provided in section 8439 of title 5, United States Code. (B)

Discretionary exclusions

The Secretary may exclude from financial resources under this subsection the value of any other retirement plans, contracts, or accounts (as determined by the Secretary through regulation).

(c)

Exclusion of education accounts from countable financial resources

Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) (as amended by subsection (b)) is amended by adding at the end the following:

(8)

Exclusion of education accounts from countable financial resources

(A)

Mandatory exclusions

The Secretary shall exclude from financial resources under this subsection the value of any funds in a qualified tuition program described in section 529 of the Internal Revenue Code of 1986 or in a Coverdell education savings account under section 530 of that Code. (B)

Discretionary exclusions

The Secretary may exclude from financial resources under this subsection the value of any other education programs, contracts, or accounts (as determined by the Secretary through regulation).

Fairness for legal immigrants

(a)

In general

Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) is amended by striking subsection (f) and inserting the following:

(f)

Aliens

(1)

Eligibility

—Notwithstanding sections 401(a), 402(a), and 403(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1611(a), 1612(a), 1613(a)), an alien who is lawfully residing in the United States may not be ineligible for the food stamp program on the basis of— (A)the immigration status of the alien; or (B)the date the alien entered the United States. (2)

Consideration of income

The income (less, at State option, a pro rata share) and financial resources of the individual rendered ineligible to participate in the food stamp program under this subsection shall be considered in determining the eligibility and the value of the allotment of the household of which the individual is a member.

(b)

Clarifying eligibility

Section 421(d)(3) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1631(d)(3)) is amended by striking to the extent that a qualified alien is eligible under section 1612(a)(2)(J) of this title and inserting to the extent that a child is a member of a household receiving food stamps under that Act. (c)

Ensuring proper screening

Section 11(e)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(2)(B)) is amended— (1)by redesignating clauses (vi) and (vii) as clauses (vii) and (viii), respectively; and (2)by inserting after clause (v) the following:

(vi)shall provide a method for implementing section 421 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1631) that does not require any unnecessary information from individuals who may be exempt from that section;

(d)

Simplified administrative reporting requirement

Section 11(a) of the Food Stamp Act of 1977 (7 U.S.C. 2020(a)) is amended by adding at the end the following: Notwithstanding subsection (e)(2) of section 421 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1631(e)(2)), the administrative reporting requirement under that subsection shall be satisfied by the submission of an aggregate report on the numbers of exceptions granted under that subsection each year..

Food stamp eligibility for unemployed adults

Section 6(o)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2015(o)(2)) is amended in the matter preceding subparagraph (A)— (1)by striking 36-month and replacing it with 24-month; and (2)by striking 3 and replacing it with 6.

Availability of commodities for the emergency food assistance program

Section 27(a) of the Food Stamp Act of 1977 (7 U.S.C. 2036(a)) is amended— (1)by striking (a) Purchase of commodities and all that follows through through 2007 and inserting the following:

(a)

Purchase of commodities

(1)

In general

Subject to paragraph (2), for each of fiscal years 2008 through 2012;

;

(2)by striking $140,000,000 of; and (3)by inserting at the end the following:

(2)

Amounts

The Secretary shall use to carry out this subsection for fiscal year 2008, $180,000,000.