[Federal Register Volume 62, Number 73 (Wednesday, April 16, 1997)]
[Notices]
[Pages 18579-18582]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9830]


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DEPARTMENT OF AGRICULTURE

Food and Consumer Service
RIN 0584-AC53


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

AGENCY: Food and Consumer Service, USDA.

ACTION: General notice.

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SUMMARY: The purpose of this notice is to update for Fiscal Year 1997: 
the maximum allotment levels, which are the basis for determining the 
amount of food stamps which participating households receive, the gross 
and net income limits for food stamp eligibility, the standard 
deduction available to certain households, and the homeless household 
shelter allowance. These adjustments, required by law, take into 
account changes in the cost of living and statutory adjustments since 
the amounts were last calculated.

DATES: The effective date of this notice regarding the adjustment of 
the maximum allotments was October 1,

[[Page 18580]]

1996. The effective date of this notice regarding deductions from 
income was January 1, 1997.

FOR FURTHER INFORMATION CONTACT: Margaret Werts Batko, Assistant Chief, 
Certification Policy Branch, Program Development Division, Food Stamp 
Program, Food and Consumer Service, USDA, 3101 Park Center Drive, 
Alexandria, Virginia 22302, (703) 305-2516.

SUPPLEMENTARY INFORMATION:

Implementation

    As required by Section 3(o) of the Food Stamp Act of 1977 (the 
Act), 7 U.S.C. 2012(o), State agencies should have implemented the 
adjustments to the maximum food stamp allotments reflected in this 
notice on October 1, 1996, based on advance notice of the new amounts. 
Similarly, State agencies received notice of the changes in deductions 
from income that were required to be implemented on January 1, 997. 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.
    Public Law 104-193, the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996, was enacted on August 22, 1996. 
Several provisions of that law affect Food Stamp Program allotment 
levels, income eligibility standards and deduction amounts. The 
provisions of Pub. L. 104-193 discussed herein were intended by 
Congress to be binding and non-discretionary. In that light, the 
Department has determined in accord with 5 U.S.C. 553(b)(2)(B) that 
good cause existed to implement the required statutory changes without 
prior notice and comment. To meet the implementation requirements of 
Public Law 104-193, State agencies were informed of the new standards 
in guidance issued by the Department prior to the publication of this 
notice. Subsequent to the publishing of this notice, various regulatory 
changes corresponding to the statutory changes will be promulgated. 
These regulatory changes will not affect the provisions of Pub. L. 104-
193 hereby implemented but will simply correlate the Code of Federal 
Regulations with the Act.

Classification

Executive Order 12866

    This notice has been determined to be not significant for purposes 
of Executive Order 12866 and therefore has not been reviewed by the 
Office of Management and Budget (OMB).

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

    The Under Secretary for Food, Nutrition and Consumer Services, 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 record keeping 
requirements subject to approval by OMB pursuant to the provisions of 
the Paperwork Reduction Act of 1995, 44 U.S.C. 3507.

Background

Income Eligibility Standards

    The eligibility of households for the Food Stamp Program, except 
those in which all members are receiving ``benefits under a State 
program funded under part A of title IV of the Social Security Act [], 
supplemental security income [SSI] benefits under title XVI of the 
Social Security Act [], or aid to the aged, blind, or disabled under 
title I, X, XIV, or XV of the Social Security Act. * * *'', is 
determined by comparing their incomes to the appropriate income 
eligibility standards (limits). Pursuant to Section 5(c)(2) of the Act, 
7 U.S.C. 2014(c)(2), households containing an elderly or disabled 
member are required to have qualifying net incomes, while households 
which do not contain an elderly or disabled member must have qualifying 
net incomes and qualifying gross incomes. Households in which all 
members are receiving Social Security Act title IV benefits or SSI are 
``categorically eligible;'' under 7 CFR 273.2(j)(2) their incomes do 
not have to be below the income limits.
    As provided in Section 5(c)(1) of the Act, the net and gross income 
limits applicable to food stamp eligibility are derived from the 
Federal income poverty guidelines established under Section 673(2) of 
the Community Services Block Grant Act, 42 U.S.C. 9902(2). The net 
income limit is 100 percent of the poverty line. The gross income limit 
is 130 percent of the poverty line. The guidelines are updated 
annually. Based on that update, the Food Stamp Program's income 
eligibility standards are updated each October 1. Instructions for 
implementation of the required adjustments for October 1, 1996, were 
issued by the Deputy Administrator of the Food and Consumer Service in 
an August 2, 1996, memorandum to all State Food Stamp Program 
Directors. The revised income eligibility standards for the 48 States 
(including the District of Columbia, Guam and the Virgin Islands), 
Alaska and Hawaii are as follows:

Food Stamp Program; October 1, 1996-September 30, 1997

                Net Monthly Income Eligibility Standards                
                     [100 Percent of Poverty Level]                     
------------------------------------------------------------------------
          Household size            48 States      Alaska       Hawaii  
------------------------------------------------------------------------
1................................        $ 645        $ 805        $ 743
2................................          864        1,079          994
3................................        1,082        1,352        1,245
4................................        1,300        1,625        1,495
5................................        1,519        1,899        1,746
6................................        1,737        2,172        1,997
7................................        1,955        2,445        2,248
8................................        2,174        2,719        2,499

[[Page 18581]]

                                                                        
Each add. member.................         +219         +274         +251
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               Gross Monthly Income Eligibility Standards               
                     [130 Percent of Poverty Level]                     
------------------------------------------------------------------------
          Household size            48 States      Alaska       Hawaii  
------------------------------------------------------------------------
1................................        $ 839       $1,047        $ 966
2................................        1,123        1,402        1,292
3................................        1,407        1,758        1,618
4................................        1,690        2,113        1,944
5................................        1,974        2,468        2,270
6................................        2,258        2,824        2,596
7................................        2,542        3,179        2,922
8................................        2,826        3,534        3,248
Each add. member.................         +284         +356         +327
------------------------------------------------------------------------


 Gross Monthly Income Eligibility Standards for Households Where Elderly
                    Disabled are a Separate Household                   
                     [165 Percent of Poverty Level]                     
------------------------------------------------------------------------
          Household size            48 States      Alaska       Hawaii  
------------------------------------------------------------------------
1................................       $1,065       $1,329       $1,226
2................................        1,425        1,780        1,639
3................................        1,785        2,231        2,053
4................................        2,145        2,682        2,467
5................................        2,506        3,133        2,881
6................................        2,866        3,584        3,295
7................................        3,226        4,035        3,709
8................................        3,586        4,486        4,123
Each add. member.................         +361         +451         +414
------------------------------------------------------------------------

Thrifty Food Plan (TFP) and Allotments

    As provided for in Section 3(o) of the Act, the TFP is a plan for 
the consumption of foods of different types (food groups) that a 
household might use to provide nutritious meals and snacks for 
household members. The plan reflects a diet required to feed a family 
of four persons consisting of a man and a woman aged 20 to 50, a child 
6 to 8 and a child 9 to 11. The cost of the TFP is adjusted monthly to 
reflect changes in the costs of the food groups.
    The TFP is also the basis for establishing food stamp allotments. 
``Allotment'' is defined in Section 3(a) of the Act as ``the total 
value of coupons a household is authorized to receive during each 
month.'' Food stamp allotments are adjusted periodically to reflect the 
changes in food cost levels indicated in the changing amounts of the 
TFP. Prior to the amendment of Section 3(o) of the Act by Section 804 
of Pub. L. 104-193, allotment amounts were established on each October 
1 at 103% of the cost of the TFP in the previous June. Amended Section 
3(o)(4) of the Act now provides that the TFP will be adjusted each 
October 1 to reflect the exact cost, or 100%, of the TFP for the 
previous June, rounding the results to the nearest lower dollar 
increment for each household size, except that on October 1, 1996, the 
TFP was not to have been reduced below the amounts in effect on 
September 30, 1996.
    To obtain the maximum food stamp allotment for each household size 
for the period October 1, 1996 to September 30, 1997, June 1996 TFP 
costs for the above described four-person household were divided by 
four, multiplied by the appropriate household size and economy of scale 
factor, in accordance with Section 3(o)(1) of the Act and the final 
result was rounded down to the nearest dollar. The maximum benefit, or 
allotment, is paid to households with no net income. For a household 
with income, the 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 in accordance with Section 8(a) of 
the Act, 7 U.S.C. 2017(a). The following tables show the current 
allotments for the 48 States and the District of Columbia.

Food Stamp Program; October 1, 1996-September 30, 1997

                      Maximum Food Stamp Allotments                     
------------------------------------------------------------------------
                                                         48 States and  
                    Household size                      the District  of
                                                            Columbia    
------------------------------------------------------------------------
1....................................................               $120
2....................................................                220
3....................................................                315
4....................................................                400
5....................................................                475
6....................................................                570
7....................................................                630
8....................................................                720
Each additional person...............................                +90
------------------------------------------------------------------------

Minimum Benefit

    Prior to Public Law 104-193, Section 8(a) of the Act, 7 U.S.C. 
2017(a), provided that the minimum benefit for one- and two-person 
households would be $10 per month and would be adjusted to the nearest 
$5 each October 1 based on the percentage change in the TFP for the 
twelve-month period ending

[[Page 18582]]

the preceding June. Section 826 of Public Law 104-193 amended Section 
8(a) effective October 1, 1996 by removing the annual adjustment 
provision, thus freezing the minimum benefit at $10.

Standard Deduction

    Section 5(e)(1) of the Act, 7 U.S.C. 2014(e)(1), provides that, in 
computing household income, households shall be allowed a standard 
deduction. Prior to August 22, 1996, Section 5(e) also required that 
the standard deduction be adjusted periodically. Section 809 of Public 
Law 104-193 amended Section 5(e)(1) to eliminate the periodic 
adjustment, freezing the standard deduction for each household in the 
48 contiguous States and the District of Columbia, Alaska, Hawaii, 
Guam, and the Virgin Islands of the United States at the 1994 level, 
$134, $229, $189, $269, and $118, respectively.

Shelter Deduction

    Prior to August 22, 1996, Section 5(e) of the Act also mandated 
increases in the shelter deduction limitation effective July 1, 1994, 
and October 1, 1995, and an elimination of the limitation effective 
January 1, 1997. Section 809 of Public Law 104-193 amended Section 
5(e)(7) of the Act to provide that a household shall be entitled to an 
excess shelter expense deduction to the extent that the monthly amount 
expended by a household for shelter exceeds an amount equal to 50 
percent of monthly household income after all other applicable 
deductions have been allowed. However, in the case of a household that 
does not contain an elderly or disabled individual, in the 48 
contiguous States and the District of Columbia, Alaska, Hawaii, Guam 
and the Virgin Islands of the United States, the excess shelter 
deduction shall not exceed:
    (i) for the period beginning on the date of enactment of the law 
and ending on December 31, 1996, $247, $429, $353, $300, and $182 per 
month, respectively;
    (ii) for the period beginning on January 1, 1997, and ending 
September 30, 1998, $250, $434, $357, $304, and $184 per month, 
respectively;
    (iii) for fiscal years 1999 and 2000, $275, $478, $393, $334, and 
$203 per month, respectively;
    (iv) for fiscal year 2001 and each subsequent fiscal year, $300, 
$521, $429, $364, and $221 per month, respectively.

Homeless Shelter Allowance

    Prior to August 22, 1996, Section 11(e)(3)(E) of the Act, 7 U.S.C. 
2020(e)(3)(E), required the Secretary of Agriculture to prescribe rules 
requiring State agencies to develop standard estimates of the shelter 
expenses that could reasonably be expected to be incurred by households 
in which all members were homeless but which are not receiving free 
shelter throughout the month. In recognition of the difficulty State 
agencies could face in gathering the necessary information to compute 
standard shelter estimates for their States, the Department offered a 
standard estimate which could be used by all State agencies in lieu of 
their own estimates.
    Sections 809 and 835 of Pub. L. 104-193 required revisions in the 
above described procedures. Section 809 amended Section 5(e)(5) of the 
Act, 7 U.S.C. 2014(e)(5), to allow State agencies the option to develop 
a standard, stand-alone homeless shelter allowance, which shall not 
exceed $143 per month and is not to be adjusted annually, for such 
expenses as may reasonably be expected to be incurred by households in 
which all members are homeless individuals but are not receiving free 
shelter throughout the month. State agencies that develop the allowance 
may use it in determining eligibility and allotments for the 
households. State agencies may make a household with extremely low 
shelter costs ineligible for the allowance. In essence, these rules 
match those in existence at 7 CFR 273.9(d)(5), with the exception of 
establishing a maximum allowance of $143. Therefore, no additional 
rulemaking was required prior to the implementation of this provision 
of Pub. L. 104-193. Section 835 of Pub. L. 104-193 repealed Section 
11(e)(3)(E) of the Act.

    Dated: April 4, 1997.
William E. Ludwig,
Administrator, Food and Consumer Service.
[FR Doc. 97-9830 Filed 4-15-97; 8:45 am]
BILLING CODE 3410-30-U