[Federal Register Volume 59, Number 49 (Monday, March 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5810]


[[Page Unknown]]

[Federal Register: March 14, 1994]


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DEPARTMENT OF AGRICULTURE
RIN 0584-AB62

 

Food Stamp Program: Maximum Allotments for the 48 States and DC, 
and Income Eligibility Standards and Deductions for the 48 States and 
DC, Alaska, Hawaii, Guam, and the Virgin Islands

AGENCY: Food and Nutrition Service, USDA.

ACTION: General Notice.

-----------------------------------------------------------------------

SUMMARY: The purpose of this notice is to update for Fiscal Year 1994: 
(1) The maximum allotment levels, which are the basis for determining 
the maximum amount of food stamps which participating households 
receive, (2) the gross and net income limits for food stamp eligibility 
which certain households may have, (3) the standard deduction and 
maximum amounts for the excess shelter expense deduction available to 
certain households, and (4) the homeless household shelter deduction. 
These adjustments, required by law, take into account changes in the 
cost of living and statutory adjustments.

EFFECTIVE DATE: October 1, 1993.

FOR FURTHER INFORMATION CONTACT: Judith M. Seymour, Supervisor, 
Eligibility and Certification Regulations Section, Certification Policy 
Branch, Program Development Division, Food Stamp Program, Food and 
Nutrition Service, USDA, Alexandria, Virginia 22302, (703) 305-2496. 
Copies of the Regulatory Impact Analysis, which is summarized in this 
preamble, are also available from Ms. Seymour.

SUPPLEMENTARY INFORMATION:

Publication

    As required by law, State agencies must implement this action on 
October 1, 1993 based on advance notice of the new amounts. In 
accordance with regulations published at 47 FR 46485-46487 (October 19, 
1982), annual statutory adjustments to the maximum allotment levels, 
income eligibility standards, and deductions are issued by General 
Notices published in the Federal Register and not through rulemaking 
proceedings.

Classification

Executive Order 12866

    The Food and Nutrition Service is issuing this notice in 
conformance with Executive Order 12866, and has determined that it is 
an ``economically significant regulatory action.'' Based on information 
compiled by the Department, it has been determined that this action 
will increase Food Stamp Program's cost by more than $100 million. It 
will not result in a major increase in costs or prices except to the 
Federal Government, nor will it affect competition, productivity, 
employment, investment or innovation.

Executive Order 12372

    The Food Stamp Program is listed in the Catalog of Federal Domestic 
Assistance under No. 10.551. For the reasons set forth in the final 
rule related notice to 7 CFR part 3015, subpart V (48 FR 29116, June 
24, 1983), this program is excluded from the scope of Executive Order 
12372 which requires intergovernmental consultation with State and 
local officials.

Regulatory Flexibility Act

    William E. Ludwig, the Administrator of the Food and Nutrition 
Service, has certified that this action will not have a significant 
economic impact on a substantial number of small entities. The action 
will increase the amount of money spent on food through food stamps. 
However, this money will be distributed among the nation's food 
vendors, so the effect on any one vendor will not be significant.

Paperwork Reduction Act

    This action does not contain reporting or recordkeeping 
requirements subject to approval by the Office of Management and Budget 
(OMB).

Regulatory Impact Analysis

Need for Action

    This action is required by sections 3(o) (1) and (11), 5(c), and 
5(e)(4) of the Food Stamp Act of 1977, as amended (7 U.S.C. secs. 
2012(o) (1) and (11), 2014(c), and 2014(e) the ``Food Stamp Act''). 
Section 3(o)(11) requires that the October 1, 1993 change in food stamp 
allotments be based upon 103 percent of the June 1993 cost of the 
Thrifty Food Plan (TFP) for a family of four persons consisting of a 
man and woman ages 20-50 and children ages 6-8 and 9-11. Adjustments 
are made to take into account household size, economies of scale and a 
requirement to round the final results down to the nearest dollar 
increments. Section 5(c) requires that the income eligibility standards 
for the program be adjusted on October 1, 1993 based on changes in the 
Federal income poverty guidelines. Section 5(e)(4) requires that the 
standard deductions and the maximum amounts for the excess shelter 
expense deductions be adjusted on October 1, 1993 to the nearest lower 
dollar increments to reflect certain changes for the 12 months ending 
June 30, 1993. Section 13912 of the Mickey Leland Childhood Hunger 
Relief Act, chapter 3 of P.L. 103-66, the Omnibus Reconciliation Act of 
1993, amends section 5(e) by further raising the excess shelter expense 
deduction cap effective July 1, 1994.

Benefits

    This action increases maximum food stamp allotments, income 
eligibility standards, and deductions based on the changing cost of 
living.

Costs

    It is estimated that this action will increase the cost of the Food 
Stamp Program by approximately $652.6 million in Fiscal Year 1994.

Background

Income Eligibility Standards

    The eligibility of households for the Food Stamp Program, except 
those in which all members are receiving public assistance (PA) or 
supplemental security income benefits (SSI), is determined by comparing 
their incomes to the appropriate income eligibility standards (limits). 
Households containing an elderly or disabled member need to have net 
incomes below the net income limits, while households which do not 
contain an elderly or disabled member must have net incomes below the 
net income limit and gross incomes below the gross income limit. 
Households in which all members are receiving PA or SSI are 
categorically eligible; their incomes do not have to be below the 
income limits.
    In addition, elderly individuals (and their spouses) who are unable 
to prepare meals because of certain disabilities, may be considered 
separate households, even if they are living and eating with another 
household. 7 U.S.C. Sec. 2012(i). The Food Stamp Act limits separate 
household status to those persons who meet both of the following 
requirements:
    (1) Their own income may not exceed the net income eligibility 
standards, and
    (2) The income of those with whom they reside may not exceed 165 
percent of the poverty line.
    The net and gross income limits are derived from the Federal income 
poverty guidelines. The net income limit is 100 percent of the 
guidelines; the gross income limit is 130 percent of the guidelines. 
The guidelines are updated annually. Based on that update, the Food 
Stamp Program's income eligibility standards are updated annually. The 
effective date of October 1 is required by the Food Stamp Act.
    The revised income eligibility standards are as follows:

Food Stamp Program; October 1, 1993--September 30, 1994

                Net Monthly Income Eligibility Standards                
                     [100 Percent of Poverty Level]                     
------------------------------------------------------------------------
                                             48                         
             Household size              States\1\    Alaska     Hawaii 
------------------------------------------------------------------------
1......................................       $581       $725       $670
2......................................        786        982        905
3......................................        991      1,239      1,140
4......................................      1,196      1,495      1,375
5......................................      1,401      1,752      1,610
6......................................      1,606      2,009      1,845
7......................................      1,811      2,265      2,080
8......................................      2,016      2,522      2,315
Each add. member.......................       +205       +257      +235 
------------------------------------------------------------------------
\1\Includes District of Columbia, Guam, and the Virgin Islands.         


               Gross Monthly Income Eligibility Standards               
                     [130 Percent of Poverty Level]                     
------------------------------------------------------------------------
                                             48                         
             Household size              States\1\    Alaska     Hawaii 
------------------------------------------------------------------------
1......................................       $756       $943       $871
2......................................      1,022      1,277      1,177
3......................................      1,289      1,610      1,482
4......................................      1,555      1,944      1,788
5......................................      1,822      2,278      2,093
6......................................      2,088      2,611      2,399
7......................................      2,355      2,945      2,704
8......................................      2,621      3,279      3,010
Each add. member.......................       +267       +334      +306 
------------------------------------------------------------------------
\1\Includes District of Columbia, Guam, and the Virgin Islands.         


 Gross Monthly Income Eligibility Standards For Households Where Elderly
                    Disabled Are A Separate Household                   
                     [165 Percent of Poverty Level]                     
------------------------------------------------------------------------
                                             48                         
            Household size               States\1\    Alaska     Hawaii 
------------------------------------------------------------------------
1......................................       $959     $1,197     $1,106
2......................................      1,297      1,620      1,494
3......................................      1,635      2,044      1,881
4......................................      1,974      2,467      2,269
5......................................      2,312      2,891      2,657
6......................................      2,650      3,314      3,045
7......................................      2,988      3,738      3,432
8......................................      3,327      4,161      3,820
Each add. member.......................       +339       +424      +388 
------------------------------------------------------------------------
\1\Includes District of Columbia, Guam, and the Virgin Islands.         

Thrifty Food Plan (TFP) and Allotments

    The TFP is a plan for the consumption of foods of different types 
(food groups) that households might use to provide nutritious meals and 
snacks for household members. The plan suggests amounts of food for 
men, women, and children of different ages, and it meets dietary 
standards. The cost of the TFP is adjusted annually to reflect changes 
in the costs of the food groups.
    The TFP is also the basis for establishing food stamp allotments. 
Nationally, food stamp allotment levels are adjusted periodically to 
reflect changes in food cost levels. Section 3(o)(11) of the Food Stamp 
Act (7 U.S.C. Sec. 2012(o)(11)), provides for an adjustment on October 
1, 1993, based upon 103 percent of the June 1993 cost of the TFP for a 
family of four persons consisting of a man and woman ages 20-50 and 
children ages 6-8 and 9-11. In June 1993, the cost of the TFP was 
$364.90 in the 48 States and D.C.
    To obtain the maximum food stamp benefit for each household size, 
June 1993 TFP costs for the four-person household (of $364.90) were 
increased by 3 percent, divided by four, multiplied by the appropriate 
household size and economy of scale factor, and the final result was 
rounded down to the nearest dollar. The maximum benefit, or allotment, 
is paid to households which have no net income. For households which 
have some income, the individual household's allotment is determined by 
reducing the maximum allotment for the household's size by 30 percent 
of the individual household's net income.
    The following tables show the new allotments for the 48 States and 
DC. 

             Allotment Amounts\1\--October 1993 as Adjusted             
------------------------------------------------------------------------
                                                             48 States &
                      Household size                              DC    
------------------------------------------------------------------------
1..........................................................         $112
2..........................................................          206
3..........................................................          295
4..........................................................          375
5..........................................................          446
6..........................................................          535
7..........................................................          591
8..........................................................          676
Each additional person.....................................         +85 
------------------------------------------------------------------------
\1\Adjusted to reflect the cost of food in June, adjustments for each   
  household size, economies of scale, a 3 percent increase in the TFP   
  and rounding.                                                         

Minimum Benefit.

    Pursuant to Section 8(a) of the Food Stamp Act, the $10 minimum 
monthly benefit provided to all one- and two-person households must be 
adjusted on each October 1 to reflect the percentage change in the TFP 
for the 12-month period ending the preceding June, with the result 
rounded to the nearest $5. In order to implement this provision of the 
law, the minimum benefit is adjusted each year as follows: (1) The 
percentage change in the TFP from June of the previous year to June of 
the current year (prior to rounding) is calculated; (2) this percentage 
change is multiplied by the previous ``unrounded'' minimum benefit to 
obtain a new unrounded benefit amount; and (3) the new unrounded 
minimum benefit is then rounded to the nearest $5 in accordance with 
the statutory provisions.
    The unrounded cost of the TFP was $355.55 in June 1992 and $364.895 
in June 1993. The change from June 1992 to June 1993 is 102.6284%, 
which when multiplied by $10.96, the unrounded minimum benefit in 
Fiscal Year 1993, results in a new unrounded minimum benefit of $11.25. 
Rounded to the nearest $5, the minimum benefit for Fiscal Year 1994 is 
$10.

Deductions

    Food stamp benefits are calculated on the basis of an individual 
household's net income. Deductions serve to lower household net income 
and thus to increase household benefits. When a household's net income 
decreases, its food stamp benefits increase.
    The standard deduction is available to all households. The excess 
shelter expense deduction is available to households with extremely 
high shelter costs. There is a maximum amount for the excess shelter 
deduction for households with no elderly or disabled members but no 
maximum for households with elderly or disabled members. The standard 
deduction and the maximum amount for the excess shelter expense 
deduction for households with no elderly or disabled members are being 
adjusted by this Notice.
    This Notice is also adjusting the homeless household shelter 
expense. The homeless household shelter expense is a standard estimate 
of the shelter expenses of homeless households and is available to 
households in which all members are homeless and are not receiving free 
shelter throughout the month.

Adjustment of the Standard Deduction

    Section 5(e) of the Food Stamp Act of 1977, as amended, provides 
that, in computing household income, households shall be allowed a 
standard deduction. (7 U.S.C. Sec. 2014(e)). Section 5(e) also requires 
that the standard deduction be adjusted periodically. The deduction for 
the 48 States and DC was last adjusted effective October 1, 1992. 
Section 5(e)(4) requires that the adjustment in the level of the 
standard deduction shall take into account changes in the Consumer 
Price Index for All Urban Consumers (CPI-U) published by the Bureau of 
Labor Statistics (BLS) for items other than food (7 U.S.C. Sec. 
2014(e)(4)). The adjustments are rounded to the nearest lower dollar 
pursuant to the requirements of Section 5(e). There are separate 
standard deductions for the 48 States and DC, Alaska, Hawaii, Guam, and 
the Virgin Islands.
    The following table shows the deductions resulting from the last 
adjustment, the unrounded results of this adjustment, and the new 
deduction amounts that go into effect on October 1, 1993. 

                                     Standard Deductions for All Households                                     
----------------------------------------------------------------------------------------------------------------
                                                         Previous standard    New unrounded         Standard    
                                                          deductions (eff.  numbers (10-1-93)   deductions (eff.
                                                             10-1-92)                               10-1-93)    
----------------------------------------------------------------------------------------------------------------
48 States and DC.......................................               $127            $131.19               $131
Alaska.................................................                216             223.77                223
Hawaii.................................................                179             185.21                185
Guam...................................................                254             262.35                262
Virgin Islands.........................................                112             115.75                115
----------------------------------------------------------------------------------------------------------------

Adjustment of the Shelter Deduction

    Section 5(e) of the Food Stamp Act also provides that, in computing 
household income, households shall be allowed a deduction for certain 
excess shelter expenses. 7 U.S.C. Sec. 2014(e). There is a maximum 
amount for the excess shelter expense deduction, unless the household 
has an elderly or disabled member, in which case there is no maximum. 
The maximum amount for the excess shelter expense deduction is adjusted 
each October 1 based on changes in the shelter, fuel and utilities 
components of housing costs in the   CPI-U published by BLS. Moreover, 
Section 13912 of the Mickey Leland Childhood Hunger Relief Act amends 
5(e) by raising the excess shelter expense deduction cap over a period 
of three years before removing it altogether. The first increase is 
effective July 1, 1994. Shelter deductions for the 48 States and DC are 
at one level while shelter deductions for Alaska, Hawaii, Guam, and the 
Virgin Islands are set separately.
    The following table shows the maximum shelter deductions resulting 
from the last adjustment, the unrounded results of this adjustment, and 
the new maximum excess shelter deductions that went into effect October 
1, 1993, as well as the new maximum excess shelter deduction that is 
required by statute to go into effect July 1, 1994. 

                  Maximum Shelter Deductions for Households Without Elderly or Disabled Member                  
----------------------------------------------------------------------------------------------------------------
                                   Previous shelter     New unrounded         Shelter              Shelter      
                                 deductions(10-1-92)  numbers(10-1-93)  deductions(10-1-93)  deductions(07-1-94)
----------------------------------------------------------------------------------------------------------------
48 States and DC...............             $200             $207.04               $207                 $231    
Alaska.........................              349              359.80                359                  402    
Hawaii.........................              286              295.41                295                  330    
Guam...........................              243              251.23                251                  280    
Virgin Islands.................              148              152.76                152                  171    
----------------------------------------------------------------------------------------------------------------
(7 U.S.C. 2011-2032)                                                                                            

Adjustment of the Homeless Household Shelter Expense

    Section 11(e)(3)(E) of the Food Stamp Act requires the Secretary to 
prescribe rules requiring state agencies to develop standard estimates 
of the shelter expenses that may reasonably be expected to be incurred 
by households in which all members are homeless but which are not 
receiving free shelter throughout the month. 7 U.S.C. Sec. 
2020(e)(3)(E). In recognition of the difficulty State agencies may face 
in gathering the necessary information to compute standard shelter 
estimates for their States, the Secretary offered a standard estimate 
which may be used by all State agencies in lieu of their own estimates.
    In the Deduction and Disaster Provisions from the Mickey Leland 
Memorial Domestic Hunger Relief Act final rule, published at 56 FR 
63613 (December 4, 1991), the Department stated that it would annually 
adjust the homeless household shelter expense each October 1 using the 
same changes in the shelter, fuel and utilities component of the CPI 
used in indexing the shelter cap. This year's homeless household 
shelter expense is $137.

    Dated: February 16, 1994.
Ellen Haas,
Assistant Secretary for Food and Consumer Services.
[FR Doc. 94-5810 Filed 3-11-94; 8:45 am]
BILLING CODE 3410-30-U