[Federal Register Volume 89, Number 84 (Tuesday, April 30, 2024)]
[Proposed Rules]
[Pages 34340-34382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08338]
[[Page 34339]]
Vol. 89
Tuesday,
No. 84
April 30, 2024
Part II
Department of Agriculture
-----------------------------------------------------------------------
Food and Nutrition Service
-----------------------------------------------------------------------
7 CFR Part 271 and 273
Supplemental Nutrition Assistance Program: Program Purpose and Work
Requirement Provisions of the Fiscal Responsibility Act of 2023;
Proposed Rule
Federal Register / Vol. 89 , No. 84 / Tuesday, April 30, 2024 /
Proposed Rules
[[Page 34340]]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
7 CFR Part 271 and 273
[FNS 2023-0058]
RIN 0584-AF01
Supplemental Nutrition Assistance Program: Program Purpose and
Work Requirement Provisions of the Fiscal Responsibility Act of 2023
AGENCY: Food and Nutrition Service (FNS), USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would amend the Supplemental Nutrition
Assistance Program (SNAP) regulations to incorporate three provisions
of the Fiscal Responsibility Act of 2023 by adding to the program
purpose language assisting low-income adults in obtaining employment
and increasing their earnings; updating and defining the exceptions
from the able-bodied adults without dependents (ABAWD) time limit; and
adjusting the number of discretionary exemptions available to State
agencies each year. This proposed rule would also amend the regulations
to clarify procedures for how and when State agencies must screen for
exceptions to the time limit and clarify the verification requirements.
DATES: Written comments must be received on or before May 30, 2024 to
be assured of consideration.
Docket: Go to the Federal eRulemaking Portal at https://www.regulations.gov for access to the rulemaking docket, including any
background documents and the plain-language summary of the proposed
rule of not more than 100 words in length required by the Providing
Accountability Through Transparency Act of 2023.
ADDRESSES: The Food and Nutrition Service, USDA, invites interested
persons to submit written comments on this proposed rule. Comments may
be submitted in writing by one of the following methods:
Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting
comments.
Mail: Send comments to Food and Nutrition Service, P.O.
Box 9233, Reston, Virginia 20195. Email: [email protected]. Phone:
(703) 305-2022.
Website: Go to http://www.regulations.gov. Follow the
online instructions for submitting comments.
E-Mail: Send comments to [email protected]. Include
Docket ID Number [FNS-2023-0058], ``Supplemental Nutrition Assistance
Program: Program Purpose and Work Requirement Provisions of the Fiscal
Responsibility Act of 2023'' in the subject line of the message.
All written comments submitted in response to this
proposed rule and regulatory impact analysis will be included in the
record and will be made available to the public. Please be advised that
the substance of the comments and the identity of the individuals or
entities submitting the comments will be subject to public disclosure.
FNS will make the written comments publicly available on the internet
via http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Catrina Kamau, Chief, Certification
Policy Branch, Program Development Division, Food and Nutrition
Service, 1320 Braddock Place, Alexandria, Virginia 22314. Email:
[email protected]. Phone: (703) 305-2022.
SUPPLEMENTARY INFORMATION:
Acronyms or Abbreviations
Able-bodied adults without dependents, ABAWDs or time-limited
participants
Code of Federal Regulations, CFR
Fiscal Responsibility Act of 2023, FRA
Fiscal Year, FY
Food and Nutrition Act of 2008, the Act
Food and Nutrition Service, FNS
State SNAP Agencies, State agencies or States
Supplemental Nutrition Assistance Program, SNAP
U.S. Department of Agriculture, the Department or USDA
I. Background
The Food and Nutrition Act of 2008 (the Act), as amended,
establishes national eligibility standards for the Supplemental
Nutrition Assistance Program (SNAP), including work requirements for
certain individuals. The first of these requirements, referred to as
the general work requirements, requires individuals to register for
work; accept an offer of suitable employment; not voluntarily quit or
reduce hours of employment below 30 hours per week, without good cause;
and participate in workfare or SNAP Employment and Training (SNAP E&T)
if required by the State agency. Most SNAP participants are exempt from
the general work requirements because they are older adults, have
disabilities, or are children, or meet another exemption from the
general work requirements listed in the Act.
Individuals who are not exempt from the general work requirements
may also be subject to an additional time-limit work requirement. The
Act limits these individuals, referred to as able-bodied adults without
dependents (ABAWDs) or time-limited participants, to receiving SNAP
benefits for three months in a 36-month period unless they are meeting
the work requirement, live in an area where the time limit is waived
due to a lack of sufficient jobs or a high rate of unemployment, or are
otherwise exempt. This is sometimes referred to as the ABAWD time
limit. Individuals can continue receiving SNAP beyond the three-month
time limit by working, participating in a qualifying work program, or
any combination of the two, for at least 20 hours a week (averaged
monthly to 80 hours a month). Individuals can also meet the time limit
by participating in and complying with workfare for the number of hours
assigned (equal to the result obtained by dividing a household's SNAP
allotment by the higher of the applicable Federal or State minimum
wage). For the purposes of the time limit, working includes unpaid or
volunteer work that is verified by the State agency. These requirements
are sometimes referred to as the ABAWD work requirement. For the
purposes of the proposed rule, the Department will use the term ``time
limit'' to refer to both the ABAWD work requirement and time limit, as
this phrasing more accurately describes the requirements applied to
time-limited participants.
The Act provides exceptions from the time limit based on certain
individual circumstances, such as age, pregnancy, or meeting an
exemption from the general work requirements. Individuals who meet an
exception are not subject to the time limit. The Act also allows for
waivers of the time limit in areas with an unemployment rate over 10
percent or an insufficient number of jobs to provide employment for
individuals. Individuals residing in waived areas are not required to
meet the time limit. Lastly, the Act also establishes an annual
allotment of discretionary exemptions that State agencies may use to
extend eligibility for a time-limited participant who is not meeting
the requirement. Each discretionary exemption can extend eligibility
for one participant for one month and there is no limit on the number
of discretionary exemptions a single participant can receive.
Sec. 311 through 313 of the Fiscal Responsibility Act (FRA) of 2023
(Pub. L. 118-5) amended the Act, revising exceptions from the time
limit and the allotment of discretionary exemptions, as well as the
program purpose. Based on these changes, the Department is proposing to
amend the regulations to reflect the requirements of the FRA.
Sec. 314 of the FRA also required the Department to publicize all
available
[[Page 34341]]
State requests for waivers authorized by Sec. 6(o)(4)(A) of the Act,
including supporting data, and all Department approvals of waivers
within 30 days of enactment. The Department complied with this
requirement by the statutory deadline and is not proposing rulemaking
relating to this provision.\1\
---------------------------------------------------------------------------
\1\ These waiver requests and responses are available at:
https://www.fns.usda.gov/snap/ABAWD/waivers.
---------------------------------------------------------------------------
The Department issued multiple memoranda for implementing the FRA
changes. On June 30, 2023, the Department issued the initial
implementation memorandum, ``Implementing SNAP Provisions in the Fiscal
Responsibility Act of 2023'' which provided definitions for the new
exceptions, detailed when and how State agencies must apply the changes
to the exception criteria, and clarified the changes to discretionary
exemptions. On July 27, 2023, the Department issued a Question-and-
Answer memorandum, ``SNAP Provisions of the Fiscal Responsibility Act
of 2023--Questions & Answers #1,'' which answered questions from State
agencies and advocates to further clarify how State agencies should
implement the FRA provisions. On August 25, 2023, the Department issued
a second Question-and-Answer memorandum, ``SNAP Provisions of the
Fiscal Responsibility Act of 2023--Questions & Answers #2,'' which
further answered questions from State agencies and advocates on how to
implement the FRA provisions.
II. Discussion of Rule's Provisions
7 CFR 271.1: Program Purpose
The Act provides that the purpose of SNAP is to safeguard the
health and well-being of the Nation's population by raising levels of
nutrition among low-income households to promote the general welfare.
Sec. 313 of the FRA amends Sec. 2 of the Act and adds language to the
purpose stating the program also assists low-income adults in obtaining
employment and increasing their earnings. Specifically, the new
language is: ``That program includes as a purpose to assist low-income
adults in obtaining employment and increasing their earnings. Such
employment and earnings, along with program benefits, will permit low-
income households to obtain a more nutritious diet through normal
channels of trade by increasing food purchasing power for all eligible
households who apply for participation.'' This language recognizes that
the program has long had an employment and training program component
and reflects the work by the Department spanning the last few decades
to invest in effective and evidence-based job training aligned with
State workforce programs designed to increase opportunity and earnings
through skills-based training. Program rules at 7 CFR 271.1(a)
incorporate this purpose statement, excerpting the language included at
Sec. 2 of the Act. The Department proposes to revise 7 CFR 271.1(a) to
reflect the purpose language added by the FRA.
7 CFR 273.24(c): Exceptions From the Time Limit
Sec. 6(o)(3) of the Act provides exceptions from the time limit for
certain individuals, including, but not limited to, individuals under
18 years of age, individuals who are pregnant, or individuals who are
exempt from the general work requirements. If an individual meets one
of the exceptions, they are not subject to the time limit and are
eligible to receive SNAP benefits for more than three months subject to
other program rules. Throughout this proposed rule, ``exceptions from
the time limit'' refers to the list of exception criteria listed in
Sec. 6(o)(3) of the Act and program rules at 7 CFR 273.24(c) that
determine which individuals are not subject to the time limit, whereas
``exemptions from the general work requirements'' refers to the list of
criteria in Sec. 6(d)(2) of the Act and 7 CFR 273.7(b) that exempts
individuals from needing to fulfil the general work requirements.
Age-Based Exceptions
Sec. 311 of the FRA amends Sec. 6(o)(3)(A) of the Act to adjust the
age-based exception from the time limit. This change gradually
increases the upper age limit of this exception as follows: by
September 1, 2023, increases from 50 to 51 years of age or older;
starting October 1, 2023, increases from 51 to 53 years of age or
older; and starting October 1, 2024, increases from 53 to 55 years of
age or older. The FRA also prescribed that these changes to the age-
based exception sunset on October 1, 2030, when the upper age limit
will return to 50 years of age or older. The Department proposes to
capture this sunset at 7 CFR 273.24(c)(10).
Prior to the FRA, the Act excepted individuals from the time limit
if they are under 18 years of age or 50 years of age or older. This
exception is captured at 7 CFR 273.24(c)(1). The Department proposes to
amend this paragraph to increase the upper age limit to 55 years of age
or older. Since State agencies will have implemented the last age
increase by the anticipated publication of the final rule, the
Department proposes to only amend the regulations to reflect the final
age increase to 55 or older in this rulemaking.
New Exceptions
Sec. 311 of the FRA amends Sec. 6(o)(3) of the Act to add three new
exceptions from the time limit. This change excepts individuals
experiencing homelessness, veterans, and individuals who are 24 years
of age or younger and in foster care on their 18th birthday (or higher
age if the State offers extended foster care to a higher age). The FRA
required State agencies to implement and apply these new exceptions by
September 1, 2023. As with the changes to age-based exceptions, these
new exceptions cease to have effect on October 1, 2030. The Department
proposes to capture this sunset at 7 CFR 273.24(c)(10).
Prior to the FRA, the Act included existing exceptions from the
time limit for individuals who are unable to work due a physical or
mental limitation, are pregnant, are responsible for a dependent child,
or are not subject to the general work requirements. These existing
exceptions are unchanged by the FRA and captured at 7 CFR 273.24(c)(1)
through (6). The Department proposes to add to the existing list the
new exceptions created by the FRA for individuals experiencing
homelessness, veterans, and individuals who are 24 years of age or
younger and in foster care on their 18th birthday (or higher age if the
State offers extended foster care to a higher age). These new
exceptions are further defined in the following sections.
Individuals Experiencing Homelessness
Sec. 311 of the FRA creates an exception for a ``homeless
individual''--individuals experiencing homelessness--from the time
limit. To aid in implementation, the Department provided guidance to
State agencies which referred State agencies to the program's
longstanding definition of ``homeless individual'' at Sec. 3(l) of the
Act: an individual who lacks a fixed and regular nighttime residence;
or who has a primary nighttime residence that is a supervised publicly
or privately operated shelter designed to provide temporary living
accommodations (including a welfare hotel or congregate shelter), an
institution that provides a temporary residence for individuals
intended to be institutionalized, a temporary accommodation for not
more than 90 days in the residence of another individual, or a public
or private place not designed for, or ordinarily used as, a regular
sleeping accommodation for human beings.
[[Page 34342]]
The Department proposes to include a reference to the definition
for homeless individual at 7 CFR 271.2 at new paragraph 7 CFR
273.24(c)(7) for the purpose of this new exception.
The Department also proposes to update the definition of ``homeless
individual'' provided at 7 CFR 271.2 to include individuals who will
imminently lose their nighttime residence and will issue further sub-
regulatory guidance on circumstances that may render an individual
``imminently homeless.'' This update reflects the Department's
consideration that those who will imminently lose their primary
nighttime residence are included in the Act's definition of a homeless
individual, as a nighttime residence that will be imminently lost
cannot reasonably be described as ``fixed and regular.'' It also
presents an undue hardship on an individual to be subject to the time
limit if that individual knows they will lose a fixed and regular
nighttime residence in the near future. Individuals experiencing
homelessness face greater difficulties in obtaining work due to
unstable housing, transportation barriers, inconsistent access to
hygiene materials or professional clothing, and other hardships related
to homelessness.2 3 4 Given these challenges, this proposed
change is meant to encompass the diverse set of circumstances that can
constitute homelessness.
---------------------------------------------------------------------------
\2\ Sarver, Maureen. ``Why Is It So Hard for People Experiencing
Homelessness to `Just Go Get a Job?' '' Urban Institute. Last
modified November 3, 2023. https://www.urban.org/urban-wire/why-it-so-hard-people-experiencing-homelessness-just-go-get-job.
\3\ National Alliance to End Homelessness. ``Overcoming
Employment Barriers.'' Last modified August 13, 2023. https://endhomelessness.org/resource/overcoming-employment-barriers/.
\4\ Bharat, Nisha, Jenna Cicatello, Emily Guo, and Vennela
Vallabhaneniand. ``Homelessness and Job Security: Challenges and
Interventions.'' University of Michigan School of Public Health.
Last modified May 11, 2020. https://sph.umich.edu/pursuit/2020posts/homelessness-and-job-security-challenges-and-interventions.html.
---------------------------------------------------------------------------
Individuals do not need to meet the criteria in both paragraph (1)
and (2) of 7 CFR 271.2 ``Homeless individual'' to be considered as
experiencing homelessness for SNAP purposes. An individual may lack a
fixed or regular nighttime residence and be considered homeless under
paragraph (1), or the individual may have a nighttime residence that
meets the criteria in paragraph (2), such as a supervised shelter, and
be considered homeless under paragraph (2). Therefore, an individual
who is considered homeless under paragraph (1) is not subject to the
criteria in paragraph (2), including the time limitation for temporary
housing. The Department believes these changes reflect the
understanding of subject matter experts and housing and homeless
organizations that work on homelessness issues and ensure that State
agencies can recognize a wide range of unstably housed individuals as
homeless.\5\
---------------------------------------------------------------------------
\5\ National Alliance to End Homelessness. ``State of
Homelessness: 2023 Edition.'' Accessed December 4, 2023. https://endhomelessness.org/homelessness-in-america/homelessness-statistics/state-of-homelessness/.
---------------------------------------------------------------------------
This proposal will amend the definition for all of SNAP, not only
for purposes of the time limit. This will provide consistency
throughout SNAP of the Department's updated understanding of ``homeless
individual.'' The Department proposes clarifying this matter by
amending the definition of ``homeless individual'' at 7 CFR 271.2.
Veterans
The FRA also updates the list of exceptions from the time limit to
include veterans but does not provide a definition for or specify
limits on who is considered a veteran. In FRA guidance, the Department
used a definition of ``veteran'' established by Congress in Sec.
5126(f)(13)(F) of the James M. Inhofe National Defense Authorization
Act for Fiscal Year 2023 (Public Law 117-263) for the purposes of a
pilot program to combat food insecurity among veterans and their
families. Under this statutory provision, a veteran is an individual
who served in the United States Armed Forces (such as the Army, Marine
Corps, Navy, Air Force, Space Force, Coast Guard, and National Guard),
including an individual who served in a reserve component of the Armed
Forces, and who was discharged or released therefrom, regardless of the
conditions of such discharge or release.
Since the issuance of the guidance, the Department has determined
that it is appropriate to include another group of individuals, defined
under 38 CFR 3.7, who are considered veterans for purposes of receiving
veterans' benefits: individuals who were commissioned officers of the
Public Health Service, Environmental Scientific Services
Administration, or the National Oceanic and Atmospheric Administration.
These individuals are eligible for veterans' benefits, such as
disability compensation, veterans' pensions, and educational benefits,
because they are considered to have served in ``active military
service'' under 38 CFR 3.7. However, this group of veterans was not
included in the definition used in the implementation guidance.
Including such commissioned officers in SNAP's definition ensures
individuals who the VA considers veterans for VA benefits programs are
eligible for the exception from the time limit.
Research shows that veterans, particularly older veterans who
served between 1975 and 2001, have a 7.4 percent greater risk for food
insecurity than non-veterans, adjusted for observable differences, and
veterans were consistently less likely to be enrolled in
SNAP.6 7 Food insecurity prevalence rates were also higher
among disabled, unemployed, and women working-age veterans when
compared to the national average for all working-age veterans.\8\ Given
the persistent and rising concern over food insecurity for veterans, it
is critical to ensure the exception covers a broad range of veterans,
including individuals with former military service who may not identify
with the term ``veteran.'' The Department believes using this
definition informed by the NDAA pilot and other veterans' benefits
programs achieves that goal.
---------------------------------------------------------------------------
\6\ U.S. Department of Agriculture. Economic Research Service.
Food Insecurity Among Working-Age Veterans by Matthew P. Rabbitt and
Michael D. Smith. ERR-829. Washington, DC, 2021. https://www.ers.usda.gov/publications/pub-details/?pubid=101268.
\7\ Dubowitz, Tamara, Andrea Richardson, Teague Ruder, and
Catria Gadwah-Meaden. Food Insecurity Among Veterans: Examining the
Discrepancy Between Veteran Food Insecurity and Use of the
Supplemental Nutrition Assistance Program (SNAP). Santa Monica, CA:
RAND Corporation, 2023. https://www.rand.org/pubs/research_reports/RRA1363-2.html.
\8\ U.S. Government Accountability Office. Nutrition Assistance
Programs: Federal Agencies Should Improve Oversight and Better
Collaborate on Efforts to Support Veterans with Food Insecurity.
GAO-22-104740. Washington, DC, 2022. Accessed December 4, 2023.
https://www.gao.gov/assets/gao-22-104740.pdf.
---------------------------------------------------------------------------
Therefore, the Department proposes to define veteran at 7 CFR
273.34(c)(8) as an individual who, regardless of the conditions of
their discharge or release from, served in the United States Armed
Forces (such as the Army, Marine Corps, Navy, Air Force, Space Force,
Coast Guard, and National Guard), including an individual who served in
a reserve component of the Armed Forces, or served as a commissioned
officer of the Public Health Service, Environmental Scientific Services
Administration, or the National Oceanic and Atmospheric Administration.
Individuals Who Were in Foster Care
Sec. 311 of the FRA also created an exception from the time limit
for certain individuals previously in foster care, recognizing the
particular challenges that individuals aging out of foster care face in
obtaining stable employment. This exception applies to an individual
[[Page 34343]]
who is 24 years of age or younger and who was in foster care under the
responsibility of a State on their 18th birthday or such higher age as
the State has elected under Sec. 475(8)(B)(iii) of the Social Security
Act. The Department notes that this definition does not require that an
individual was in foster care in the State in which they are applying
for or receiving SNAP benefits. The definition provided in the FRA is
similar to that of the ``former foster care children'' eligibility
group for Medicaid, as revised by the Substance Use-Disorder Prevention
that Promotes Opioid Recovery and Treatment for Patients and
Communities Act for individuals who turn 18 on or after January 1,
2023. Per section 1902(a)(10)(A)(i)(IX)(cc) of the Social Security Act
and programs rules at 42 CFR 435.150, these individuals are eligible
for Medicaid in this eligibility group if they are under age 26 and
were in foster care under the responsibility of a State or Tribe upon
attaining age 18 or such higher age as the State or such Tribe has
elected for foster care assistance to end under section 475(8)(B)(iii)
of the Social Security Act.
In implementing guidance, the Department clarified who may qualify
for this exception, described below. The Department proposes to adopt
these clarifications into the definition provided in regulations. In
this guidance, the Department clarified that ``foster care under the
responsibility of a State'' includes foster care programs run by
Districts, Territories, or Indian Tribal Organizations.\9\ The
Department also clarified that the exception applies to individuals who
are in foster care when they reach 18 years of age even if they elect
to stay in foster care up to the State's maximum age, as well as
individuals aged 18 to 24 who were in foster at the time they turned 18
years of age, even if the individual exits extended foster care before
the maximum age. The Department also notes that individuals who are in
foster care when they reach 18 years of age qualify for this exception
regardless of their length of time in foster care or the reason for the
individual's removal into foster care. Additionally, after consulting
with the Department of Health and Human Services, the Department
proposes to further clarify in the definition that ``foster care under
the responsibility of a State'' also includes the Unaccompanied Refugee
Minors Program.
---------------------------------------------------------------------------
\9\ U.S. Department of Agriculture. Food and Nutrition Service.
Implementing SNAP Provisions in the Fiscal Responsibility Act of
2023. Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/implementing-fra-provisions-2023.
---------------------------------------------------------------------------
These changes will help account for the variation in foster care
and extended foster care operations across States. Further, the
Department recognizes that individuals leaving foster care face
particular barriers in obtaining suitable employment, including lower
educational attainment, limited work history, and housing
instability,10 11 and struggle with sustained employment and
earnings more than their peers.\12\ This definition will help to ensure
these particularly vulnerable individuals are not subject to the time
limit.
---------------------------------------------------------------------------
\10\ Fung, Sara, Jessica Haspel, Susanna Kniffen, and Danielle
Wondra. Employment and Youth with Foster Care Experience:
Understanding Barriers and Supporting Success. Oakland, CA: Children
Now, 2022.
\11\ Pecora, Peter J., and et al. ``Educational and employment
outcomes of adults formerly placed in foster care: Results from the
Northwest Foster Care Alumni Study.'' Children and youth services
review 28, no. 12 (December 2006): 1459-1481. https://doi.org/10.1016/j.childyouth.2006.04.003.
\12\ Stewart, C. Joy, and et al. ``Former foster youth:
Employment outcomes up to age 30.'' Children and youth services
review 36 (January 2014): 220-229. https://doi.org/10.1016/j.childyouth.2013.11.024.
---------------------------------------------------------------------------
The Department proposes to amend the regulations at 7 CFR
273.24(c)(9) to include the revised exception definition provided in
Sec. 311(a)(4) of the FRA and codify the foster care clarifications
provided in the implementation guidance.
7 CFR 273.24(l): Verification of Exception Status
The FRA did not make any changes to how State agencies verify
exceptions from the time limit. Program rules at 7 CFR 273.2(f) do not
require State agencies to verify exception status unless the
information is considered questionable. In FRA implementation guidance,
the Department provided examples of verification State agencies could
use if the State agency deems the information to be questionable based
on the State agency's established criteria and requires further
verification.13 14 15 The Department reminds State agencies
that program rules at 7 CFR 273.2(f)(2)(i) prohibit State agencies from
setting guidelines for determining what is considered questionable
information that would require verification based on race, religion,
ethnic background, or national origin. The Department also reminds
State agencies that the FRA provides populations exceptions in part
because they are especially vulnerable and may be in unstable living
situations. Placing additional and unnecessary burden on the applicants
to provide verification may put these vulnerable individuals at risk.
The Department encourages State agencies avoid setting guidelines for
questionable information that would consider self-attestation
questionable and require every individual who meets exception criteria
to provide verification.
---------------------------------------------------------------------------
\13\ U.S. Department of Agriculture. Food and Nutrition Service.
Implementing SNAP Provisions in the Fiscal Responsibility Act of
2023. Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/implementing-fra-provisions-2023.
\14\ U.S. Department of Agriculture. Food and Nutrition Service.
Supplemental Nutrition Assistance Program (SNAP)--SNAP Provisions of
the Fiscal Responsibility Act of 2023--Questions and Answers #1.
Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/provisions-fiscal-responsibility-act-2023-questions-and-answers-1.
\15\ U.S. Department of Agriculture. Food and Nutrition Service.
Supplemental Nutrition Assistance Program (SNAP)--SNAP Provisions of
the Fiscal Responsibility Act of 2023--Questions and Answers #2.
Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/provisions-fiscal-responsibility-act-2023-questions-answers-2.
---------------------------------------------------------------------------
Program rules at 7 CFR 273.2(f)(5)(i) require State agencies to
assist cooperating households in obtaining verification. Such
assistance includes, but is not limited to, utilization of data sharing
agreements with other State agencies and information received from
other public assistance programs operated by the State agency. The
Department proposes to clarify State agencies' responsibilities in
obtaining verification of exception status, when questionable, by
requiring State agencies to use all available information to verify
exception status when questionable, before asking individuals to
provide verification.
This proposal is based on several reasons. For example, State
agencies' data sharing agreements provide additional resources to State
agencies in the eligibility determination process, offering a less
burdensome way to comply with the requirement to assist individuals in
obtaining verification by reducing the amount of time and actions
needed to verify information and minimizing the need to call contacts,
send notices, and continuously re-touch a case. Further, these
agreements can improve processes for screening for exceptions and
proactively identify people who may be eligible for exceptions from the
time limit. They also help streamline verification of exception status
when the State agency determines the information is questionable by
reducing the number of actions needed to verify information and
decreasing time wait for the individual to provide sources of
verification and for eligibility workers to verify the information.
This may include agencies that support veterans
[[Page 34344]]
which may have information regarding an individual's prior service that
can streamline verification of an individual's veteran status if the
State agency finds it questionable. Similarly, State and Tribal IV-E
agencies or State Medicaid agencies may have information on an
individual's current or former placement in foster care that the SNAP
State agency could use to verify an individual's status as a former
foster youth. As a reminder, Section 475(5)(I) of the Social Security
Act also requires child welfare agencies to provide any official
documentation necessary to prove former foster care status to young
people who have been in foster care for six or more months and exit
foster care after attaining age 18. Likewise, State agencies' housing
assistance programs or Continuums of Care may have information on an
individual's housing status and eliminate the need for further
verification to determine an individual's homelessness status and
exception from the time limit. Through their participation in other
programs, these vulnerable individuals have already demonstrated their
status as homeless, disabled, pregnant, etc. to another program. The
Department expects State agencies to avoid imposing a redundant burden
on these individuals, which could impede their ability to claim an
exception from the time limit, by using information available to the
State agency.
Therefore, in the interest of improved efficiency and minimizing
unnecessary burden on individuals, the Department proposes at 7 CFR
273.24(l) to require State agencies to assist individuals when
requiring verification of exception status by using all information
available to the State agency before requesting the individual provide
sources of verification. The Department intends for State agencies to
use existing information available in their eligibility system or
through data sharing agreements. State agencies are not required to
establish new data sharing agreements; however, the Department highly
encourages State agencies to determine ways to collaborate with other
State agencies, improving the coordination and information sharing
across programs.
The Department recognizes that, when possible, State agencies
likely use similar processes to support households in gathering other
necessary verifications, however, it is proposing 7 CFR 273.24(l) in
lieu of amending 7 CFR 273.2(f)(5)(i) for several reasons. Reducing
barriers to identifying exceptions is especially important because of
the impact that exception status and the time limit can have on an
individual's SNAP eligibility. State agencies are more likely to
already have access to information about household circumstances that
except an individual from the time limit. As such, the Department is
proposing this requirement at 7 CFR 273.24(l) and is not amending 7 CFR
273.2(f)(5)(i) to clarify that the requirement is specific to
verification of exception status when questionable and is not intended
to replace existing efforts State agencies employ to assist households
in obtaining verification for other household circumstances.
7 CFR 271.2, 273.7(b)(3), and 273.24(k): Screening and Assigning
Countable Months
Individuals subject to the time limit are a largely vulnerable
population. An FNS study titled, ``The Impact of SNAP Able-Bodied
Adults Without Dependents (ABAWD) Time Limit Reinstatement in Nine
States,'' researched characteristics of individuals potentially subject
to the time limit, meaning they are 18 to 49 and do not meet an
exemption from the general work requirement, and do not live in a
household with someone under the age of 18.\16\ The study found that
this population is less connected to the workforce and has higher rates
of homelessness as well as mental and physical limitations, compared to
other SNAP participants aged 18 to 49.
---------------------------------------------------------------------------
\16\ U.S. Department of Agriculture. Food and Nutrition Service.
The Impact of SNAP Able-Bodied Adults Without Dependents (ABAWD)
Time Limit Reinstatement in Nine States by Laura Wheaton and et al.
Washington, DC, 2021. https://www.fns.usda.gov/snap/impact-snap-able-bodied-adults-without-dependents-abawd-time-limit-reinstatement-nine.
---------------------------------------------------------------------------
Sec. 6(o)(3) of the Act provides exceptions from the time limit to
ensure certain individuals who face additional barriers to employment
are not required to meet the more stringent time limits. Exceptions are
provided for individuals based on certain circumstances, including
those for individuals considered mentally or physically unfit for work,
pregnant individuals, or those who are responsible for the care of a
dependent child to name a few. As described earlier, following the
passage of the FRA, individuals are also now excepted if they are
experiencing homelessness, a veteran, or 24 years of age or younger who
were in foster care on their 18th birthday (or higher age if the State
offers extended foster care to a higher age).
In order to properly apply an exception to a case, State agencies
must first evaluate individuals potentially subject to the time limit
to determine if they are indeed subject to the time limit, or if they
qualify for an exception. The Department refers to this process as
``screening.'' State agencies must perform a thorough screening to
appropriately apply the time limit or an exception and to ensure only
the appropriate individuals accrue countable months.\17\ This proposed
rule would address requirements for when this screening must occur and
what steps State agencies must take prior to assigning countable
months.
---------------------------------------------------------------------------
\17\ A countable month is a month in which a person is receiving
a full SNAP benefit allotment, is not meeting the time limit, and is
not otherwise exempt (i.e., the person is not meeting an exception
from the time limit, is not living in an area covered by a waiver,
is not receiving a discretionary exemption, does not have good cause
for not meeting the work requirement, or is not in the month of
notification from the State agency of a ``provider determination''
(from a SNAP E&T provider)).
---------------------------------------------------------------------------
Screening at Initial and Recertification Application
The FRA required State agencies to apply the new exception criteria
at initial application and recertification application. The Department
issued guidance regarding requirements to screen for the new exceptions
at initial and recertification application, consistent with the FRA and
existing expectations for other exceptions from the time
limit.18 19 20
---------------------------------------------------------------------------
\18\ U.S. Department of Agriculture. Food and Nutrition Service.
Implementing SNAP Provisions in the Fiscal Responsibility Act of
2023. Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/implementing-fra-provisions-2023.
\19\ U.S. Department of Agriculture. Food and Nutrition Service.
Supplemental Nutrition Assistance Program (SNAP)--SNAP Provisions of
the Fiscal Responsibility Act of 2023--Questions and Answers #1.
Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/provisions-fiscal-responsibility-act-2023-questions-and-answers-1.
\20\ U.S. Department of Agriculture. Food and Nutrition Service.
Supplemental Nutrition Assistance Program (SNAP)--SNAP Provisions of
the Fiscal Responsibility Act of 2023--Questions and Answers #2.
Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/provisions-fiscal-responsibility-act-2023-questions-answers-2.
---------------------------------------------------------------------------
The need to screen for ABAWD exceptions at initial application and
recertification application is not new to State agencies--prior to the
FRA, screening individuals at initial and recertification application
for exceptions was necessary, as the Act provides that individuals must
not be subject to the time limit if they meet one of the exceptions
listed in Sec. 6(o)(3) of the Act. The Department has repeatedly
emphasized the importance of screening for ABAWD exceptions at initial
and recertification application through
[[Page 34345]]
guidance, including in the SNAP Able-Bodied Adults Without Dependents
(ABAWD) Policy Guide.\21\ While a screening requirement is not
explicitly included in current regulations, State agencies must already
have this screening process in place in order to effectuate the ABAWD
provisions.
---------------------------------------------------------------------------
\21\ U.S. Department of Agriculture. Food and Nutrition Service.
Supplemental Nutrition Assistance Program (SNAP) Able-Bodied Adults
Without Dependents (ABAWD) Policy Guide. Washington, DC, 2023.
Accessed January 2, 2024. https://www.fns.usda.gov/snap/guide-serving-abawds-time-limit-participation. See also U.S. Department of
Agriculture. Food and Nutrition Service. ABAWD Time Limit Policy and
Program Access Memo. Washington, DC, 2015. Accessed January 2, 2024.
https://www.fns.usda.gov/snap/ABAWD/time-limit-policy-program-access-memo.
---------------------------------------------------------------------------
The Department is taking this opportunity to include clear language
in the regulations that State agencies must screen for all exceptions
from the time limit at initial and recertification application at new
section 7 CFR 273.24(k). This will codify existing practices and
clarify screening requirements and ensure compliance with the statutory
exceptions. By adding this section to the regulations, the Department
seeks to improve consistency in program operations and provide quality
customer service in line with the December 13, 2021, Executive Order on
Transforming Federal Customer Experience and Service Delivery to
Rebuild Trust in Government.
Given the necessity of screening to properly administer exceptions,
the Department is also proposing to include explicit language regarding
the requirement for State agencies to screen for the exemptions from
the general work requirements at certification and recertification at 7
CFR 273.7(b)(3), as State agencies must screen for both exemptions from
the general work requirements and exceptions from the time limit to
adequately determine if an individual should be subject to the time
limit.\22\ Individuals are not subject to the time limit if they meet
an exemption from the general work requirements, as provided at Sec.
6(o)(3)(D) of the Act. This is an important first step in evaluating
which, if any, work requirements apply to an individual. The proposed
change would simply codify the need to determine if an individual is
exempt from the general work requirements before registering the
individual for work,\23\ and promote further consistency in how
exceptions are identified and work requirements policy is applied.
---------------------------------------------------------------------------
\22\ U.S. Department of Agriculture. Food and Nutrition Service.
SNAP Work Rules Screening Checklists and Flow Chart. Washington, DC,
2023. Accessed January 2, 2024. https://www.fns.usda.gov/snap/work-rules-screening.
\23\ U.S. Department of Agriculture. Food and Nutrition Service.
SNAP Employment and Training Screening and Referral Guidance.
Washington, DC, 2023. Accessed January 2, 2024. https://www.fns.usda.gov/snap/et-screening-and-referral-guidance.
---------------------------------------------------------------------------
The Department also proposes to amend the definition of screening
to reflect these changes. The provision currently only refers to
determining if an individual should or should not be referred to E&T.
Determining whether an individual should be referred to E&T is closely
intertwined with determining whether the individual is subject to the
general work requirement and ABAWD time limit. For example, a decision
to refer an individual to E&T can only follow a determination that the
individual is subject to the general work requirement. Similarly,
whether an individual is subject to the time limit may affect the E&T
referral decision. Therefore, the Department also proposes amending the
definition of ``screening'' at 7 CFR 271.2 to include determining if an
individual meets an exemption from the general work requirements listed
in Sec. 6(d)(2) of the Act or an exception from the time limit listed
in Sec. 6(o)(3) of the Act.
Screening and Applying Exceptions During the Certification Period
The FRA requires the new exceptions to be applied at initial
application and recertification, however, questions arose during
implementation about requirements for identifying exceptions during an
individual's certification period. These questions reflected confusion
among State agencies on how to comply with the FRA, the Act, and
program rules. Some of the uncertainties raised include how States
agencies account for individuals who appear to be newly subject to the
time limit due to the changes in age-based exceptions, but the State
agency has not screened those individuals to determine if they meet any
exception. Since these individuals were not subject to the time limit
at the time of their last certification, the State agency would likely
not have any information on whether the individual meets another
exception. Similarly, an individual subject to the time limit before
the FRA could now be excepted as a veteran, however, the State agency
may not know the individual is a veteran because the information is not
collected in the SNAP application. In both scenarios for ongoing
households, the State agency could not properly determine if the
individual should be subject to the time limit.
The Department issued implementation guidance to address questions
around the requirements for screening during the certification
period.24 25 26 This guidance detailed expectations of State
agencies to apply the exceptions for ongoing households when the State
agencies were able to identify such excepted households. However, there
was no requirement for State agencies to evaluate households during
their certification period for the purposes of identifying or applying
an exception.
---------------------------------------------------------------------------
\24\ U.S. Department of Agriculture. Food and Nutrition Service.
Implementing SNAP Provisions in the Fiscal Responsibility Act of
2023. Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/implementing-fra-provisions-2023.
\25\ U.S. Department of Agriculture. Food and Nutrition Service.
Supplemental Nutrition Assistance Program (SNAP)--SNAP Provisions of
the Fiscal Responsibility Act of 2023--Questions and Answers #1.
Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/provisions-fiscal-responsibility-act-2023-questions-and-answers-1.
\26\ U.S. Department of Agriculture. Food and Nutrition Service.
Supplemental Nutrition Assistance Program (SNAP)--SNAP Provisions of
the Fiscal Responsibility Act of 2023--Questions and Answers #2.
Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/provisions-fiscal-responsibility-act-2023-questions-answers-2.
---------------------------------------------------------------------------
Program rules also do not establish a process during the
certification period that would provide the information needed for the
State agency to identify if an individual is subject to the time limit,
or if they meet another exception from the time limit. Beyond new
challenges in FRA implementation, State agencies face ongoing
challenges in properly applying exceptions or subjecting individuals to
the time limit when changes occur during the certification period.
Further, the Department also recognizes it may be burdensome on both
the individual and the State agency to require screening during the
certification period when a change in exception status occurs. As such,
the proposed rule would not require State agencies to screen during the
certification period.
While the Department does not propose to require screening during
the certification period, if a State agency learns about a change in
exception status for an individual during the certification period, the
State agency must act accordingly. A State agency could learn about the
change from various sources such as household reports, data sharing or
shared eligibility system arrangements with other programs, or
voluntary screening undertaken by a State agency during a certification
period.
[[Page 34346]]
If a State agency determines an individual newly meets an
exception, the State agency must apply the exception at that time and
not subject the individual to the time limit. If a State agency learns
an individual has lost an exception, the State agency must screen to
see if the individual qualifies for a different exception. If the
individual qualifies for a different exception, the individual is not
subject to the time limit. The Department is proposing this requirement
to apply to new exceptions at 7 CFR 273.24(k)(1)(ii) to ensure State
agencies are clear on their responsibilities as it relates to applying
the time limit and assigning countable months and complying with Sec.
6(o)(3) of the Act and program rules at 7 CFR 273.24(b)(1).
Due to the complexities of screening during the certification
period and the importance of not improperly subjecting individuals to
the time limit, the Department is also clarifying that if the State
agency has information that an individual's excepted status has
changed, then the State agency cannot assign countable months until it
has screened an individual for other exceptions and determined they are
subject to the time limit. If the individual does not meet another
exception, the State agency must begin applying countable months in
accordance with program rules at 7 CFR 273.24(b)(1) and ensure
individuals are properly notified of what work requirements they are
required to meet in accordance with 7 CFR 273.7(c)(1)(ii) and (iii).
The Department is outlining this requirement at 7 CFR 273.24(k)(1)(i)
for changes during the certification period, prohibiting State agencies
from assigning countable months until it has screened and determined an
individual does not meet an exception from the time limit. This
prohibition on assigning countable months also applies at initial and
recertification application and is outlined at 7 CFR 273.24(k).
When an individual loses an exception during the certification
period, this only informs the State agency that the individual no
longer meets that particular exception. It does not provide sufficient
information to determine if the individual should now be subject to the
time limit, as the individual may meet another exception. This is
especially true given the fluid nature of some of the exceptions, such
as homelessness or pregnancy, which individuals may meet only
temporarily. As such, the State agency must screen to determine if the
individual meets another exception in order to know if the individual
should be subject to the time limit and to comply with Sec. 6(o)(3) of
the Act, which requires State agencies to only subject individuals who
do not meet an exception to the time limit.
For example, the State agency may be aware an individual has turned
18 during the certification period and is no longer excepted for being
under the age of 18. However, this individual may qualify for another
exception, such as the exception for homeless individuals or the
exception for individuals 24 years of age or younger and in foster care
on their 18th birthday. The State agency must not assign countable
months to this individual before the State agency has screened for
other exceptions and determined no other exceptions apply, either
during the certification period or at the next recertification.
In the case that a State agency attempts to screen during the
certification period, but is unable to do so, the State agency must not
penalize individuals for not responding, require the household to come
into the office per program rules at 7 CFR 273.2(e)(1), or send a
request for contact (RFC). RFCs may only be sent to resolve unclear
information that meets the criteria outlined at 7 CFR 273.12(c)(3).
Otherwise, the State agency would wait until the next recertification
to screen the individual, and then at that time, either apply another
exception or begin applying the time limit.
It is also possible that individuals may meet more than one
exception from the time limit. When this occurs, the Department
encourages State agencies to apply the exception that will have the
longest impact, minimizing the need to rescreen an individual if they
lose an exception and reducing burden on both the State agency and
individuals. For example, if a State agency screens an individual and
determines they are a veteran who is also experiencing homelessness,
the Department recommends that the State agency apply the exception for
veteran, avoiding the need to rescreen the individual if they no longer
qualify for the exception for individuals experiencing homelessness
since the individual's veteran status will not change. While the
Department highly encourages this as a best practice, the Department
recognizes not all State agency eligibility systems have the same
capabilities and therefore, is not proposing this as a requirement.
7 CFR 273.24(g) and (h): Discretionary Exemptions
The Act provides State agencies the ability to extend eligibility
for time-limited participants who are not meeting the time limit and do
not live in an area with an ABAWD waiver. This may be done through use
of a discretionary exemption, and each discretionary exemption can be
used to exempt up to one individual for one month. As defined by law,
each State agency's allotment of discretionary exemptions is calculated
annually by the Department, based on the total number of time limited
participants that were ineligible in the State due to the time limit in
the preceding fiscal year, known as ``covered'' individuals.
Prior to the FRA, the Act instructed the Department to calculate
discretionary exemptions such that the average monthly number of
exemptions do not exceed 12 percent of the number of covered
individuals in the State. Sec. 312 of the FRA amends Sec. 6(o)(6) of
the Act and reduces the allotment of exemptions to not exceed 8 percent
of covered individuals. The Department proposes conforming edits to 7
CFR 273.24(g)(3) to reduce the allotment to not exceed 8 percent of
covered individuals in the State.
Current regulations at 7 CFR 273.24(h)(2)(i) also allow State
agencies to carryover all unused discretionary exemptions into the next
fiscal year (FY). Sec. 312 of the FRA further amends Sec. 6(o)(6) of
the Act, prohibiting State agencies from accumulating unused exemptions
for more than the current fiscal year and subsequent fiscal year during
FY 2024 and beyond. During FY 2024, State agencies received their
allotment of discretionary exemptions, which included their historical
balance of unused exemptions. The prohibition on accumulating unused
exemptions allows for the carryover of this historical balance only
into the subsequent fiscal year (FY 2025). Then starting in FY 2026,
State agencies will only carryover unused discretionary exemptions
earned for the previous fiscal year, not including historical balance.
As such, the Department is proposing conforming edits to 7 CFR
273.24(h)(2)(i) to limit carryover to only unused discretionary
exemptions earned for the previous fiscal year starting in FY 2026.
Procedural Matters
Executive Orders 12866, 13563, and 14094
Executive Orders 12866, 13563, and 14094 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563
[[Page 34347]]
emphasizes the importance of quantifying both costs and benefits, of
reducing costs, of harmonizing rules, and of promoting flexibility.
This proposed rulemaking has been determined to be significant under
section 3(f)(1) of Executive Order 12866, as amended by Executive Order
14094, and was reviewed by the Office of Management and Budget in
conformance with Executive Order 12866.
Regulatory Impact Analysis Summary
As required for all rules that have been designated as significant
by the Office of Management and Budget, a Regulatory Impact Analysis
(RIA) was developed for this proposed rule. It follows this rule as an
Appendix. The following summarizes the conclusions of the regulatory
impact analysis:
The Department estimates the total increase in federal transfers
(SNAP benefit spending) associated with the provisions of this proposed
rule to be approximately $2.8 billion over the nine years Fiscal Year
(FY) 2023-FY 2031, averaging $306.5 million per year. Over the nine-
year period FY 2023-FY 2031, federal costs (not including transfers)
are estimated to total approximately $252.5 million, or an annual
average of $28.1 million. Total State agency administrative expenses
are also estimated to be approximately $252.5 million over the nine-
year period, or an annual average of $28.1 million. Costs associated
with administrative burden to individual SNAP participants are
estimated to be approximately $322.0 million over the nine-year period,
or an annual average of $35.8 million.
This proposed rule will primarily affect SNAP participants who are
subject to the time limit, which the Department estimates to be, upon
full implementation of the FRA's provisions in FY 2026, approximately
9.3 percent of SNAP participants, although far fewer will lose
eligibility for SNAP. Hence, most SNAP participants will not be
affected by this proposed rule. The estimated net impact of the
proposed rule's change in the age-based exceptions and three new
exceptions is a net increase in SNAP participation of about 54,000
individuals per year when fully implemented. In FY 2026, this includes
345,000 participants losing eligibility, 369,000 participants retaining
eligibility, and about 30,000 new participants.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601-612) requires Agencies
to analyze the impact of rulemaking on small entities and consider
alternatives that would minimize any significant impacts on a
substantial number of small entities. Pursuant to that review, it has
been certified that this rule would not have a significant impact on a
substantial number of small entities. This proposed rule would not have
an impact on small entities because the changes required by the
regulations are directed toward State agencies operating SNAP programs.
Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this rule
as major rule as defined by 5 U.S.C. 804(2).
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local and tribal
governments and the private sector. Under section 202 of the UMRA, the
Department generally must prepare a written statement, including a cost
benefit analysis, for proposed and final rules with ``Federal
mandates'' that may result in expenditures by State, local or tribal
governments, in the aggregate, or the private sector, of $100 million
or more in any one year. When such a statement is needed for a rule,
Section 205 of the UMRA generally requires the Department to identify
and consider a reasonable number of regulatory alternatives and adopt
the most cost effective or least burdensome alternative that achieves
the objectives of the rule.
This proposed rule does not contain Federal mandates (under the
regulatory provisions of Title II of the UMRA) for State, local and
tribal governments or the private sector of $100 million or more in any
one year. Thus, the rule is not subject to the requirements of sections
202 and 205 of the UMRA.
Executive Order 12372
This Supplemental Nutrition Assistance Program is listed in the
Catalog of Federal Domestic Assistance under Number 10.551 and is
subject to Executive Order 12372, which requires intergovernmental
consultation with State and local officials. (See 2 CFR chapter IV.)
Since SNAP is State-administered, FNS has formal and informal
discussions with State and local officials on an ongoing basis
regarding program requirements and operations. This provides USDA with
the opportunity to receive regular input from program administrators
and contributes to the development of feasible program requirements.
For example, SNAP participated in three webinars covering FRA
implementation and responded to State agency questions and concerns
over implementation. SNAP also is providing ongoing technical
assistance with State agencies covering implementation of the FRA and
work requirements more generally.
Federalism Summary Impact Statement
Executive Order 13132 requires Federal agencies to consider the
impact of their regulatory actions on State and local governments.
Where such actions have federalism implications, agencies are directed
to provide a statement for inclusion in the preamble to the regulations
describing the agency's considerations in terms of the three categories
called for under Section (6)(b)(2)(B) of Executive Order 13132. The
Department has considered the impact of this rule on State and local
governments and has determined that this rule does not have federalism
implications. Therefore, under section 6(b) of the Executive Order, a
federalism summary is not required.
Executive Order 12988, Civil Justice Reform
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This rule is intended to have preemptive effect
with respect to any State or local laws, regulations or policies which
conflict with its provisions or which would otherwise impede its full
and timely implementation. This rule is not intended to have
retroactive effect unless so specified in the Effective Dates section
of the final rule. Prior to any judicial challenge to the provisions of
the final rule, all applicable administrative procedures must be
exhausted.
Civil Rights Impact Analysis
FNS has reviewed the proposed rule, in accordance with Departmental
Regulation 4300-004, ``Civil Rights Impact Analysis,'' to identify and
address any major civil rights impacts the proposed rule might have on
program participants on the basis of age, race, color, national origin,
sex (including gender identity and sexual orientation), or disability.
We believe that the provisions of the FRA and the requirements for
verification and screening will have a potential impact on certain
protected groups as it relates to SNAP work requirements. However, an
adverse impact analysis could not be conducted due to data limitations
for the potential impact on individuals based on race, ethnicity,
gender, and age that may be subject to the time limit. We
[[Page 34348]]
also believe that the addition of the new ABAWD exceptions will provide
greater and continuous access to SNAP benefits for SNAP applicants and
participants. We find that the implementation of mitigation strategies
and monitoring will lessen these potential impacts.
Executive Order 13175
Executive Order 13175 requires Federal agencies to consult and
coordinate with Tribes on a government-to-government basis on policies
that have Tribal implications, including regulations, legislative
comments or proposed legislation, and other policy statements or
actions that have substantial direct effects on one or more Indian
Tribes, on the relationship between the Federal Government and Indian
Tribes, or on the distribution of power and responsibilities between
the Federal Government and Indian Tribes.
The Department expects this proposed rule will impact tribes to a
no greater or lesser degree than other applicant or eligible SNAP
households. FNS provided an opportunity for consultation on March 15,
2024. The Tribes had minimal comments, but one Tribe raised two
concerns. First, the Tribe described the challenges and burden that
former foster care youth face in obtaining formal documentation needed
to verify that they were in foster care, especially in rural areas. FNS
appreciates these concerns and the proposed requirements in this rule
are intended to reduce this burden on individuals by requiring the
State agency to use information already available to verify exception
status. Second, the Tribe raised concerns over the decrease in the
allotment of discretionary exemptions from 12 to 8 percent of the ABAWD
caseload. FNS recognizes this concern, however, the decrease in
discretionary exemptions is a statutory provision of the FRA and
therefore, cannot be changed by this rulemaking.
If a Tribe requests further consultation in the future, FNS will
work with the Office of Tribal Relations to ensure meaningful
consultation is provided.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 35; 5 CFR 1320)
requires the Office of Management and Budget (OMB) approve all
collections of information by a Federal agency before they can be
implemented. Respondents are not required to respond to any collection
of information unless it displays a current valid OMB control number.
The agency is requesting a revision for OMB Control Number 0584-0479
for these new, existing, and changing provisions in this rule. These
changes are contingent upon OMB approval under the Paperwork Reduction
Act of 1995. Additionally, when the information collection requirements
have been approved, FNS will publish a separate action in the Federal
Register announcing OMB's approval.
Comments on this proposed rule must be received by May 30, 2024.
Send comments to the Office of Information and Regulatory Affairs, OMB,
Attention: Desk Officer for FNS, Washington, DC 20503. Please also send
a copy of your comments to Catrina Kamau, Chief, Certification Policy
Branch, 1320 Braddock Place, 5th Floor; Alexandria, Virginia 22314. For
further information, or for copies of the information collection
requirements, please contact Catrina Kamau indicated above.
Comments are invited on: (a) Whether the proposed collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information shall have practical
utility; (b) the accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used; (c) ways to enhance the quality,
utility, and clarity of the information to be collected; and (d) ways
to minimize the burden of the collection of information on those who
are to respond, including use of appropriate automated, electronic,
mechanical, or other technological collection techniques or other forms
of information technology.
All responses to this document will be summarized and included in
the request for OMB approval. All comments will also become a matter of
public record.
Title: Supplemental Nutrition Assistance Program: Work Requirements
and Screening.
OMB Number: 0584-0479.
Expiration Date: 2/28/2026.
Type of Request: Revision to an existing collection.
Abstract: This proposed rule would amend SNAP regulations to
implement changes made by the Fiscal Responsibility Act (FRA) of 2023.
Some of the proposed changes would modify current regulations resulting
in an increase in the reporting burden for State agencies, while others
will result in no change.
The FRA amended the exceptions from the time limit, increasing the
upper limit of the age-based exception from 50 to 55 over two years and
adding three new exceptions for homeless individuals, veterans, and
individuals aging out of foster care. The changes to the age-based
exception will result in an increase in the number of individuals
subject to the time limit, while the new exceptions will result in a
decrease. The Department estimates a net increase in the number of
individuals subject to the time limit. As a result, the Department
estimates an increase in burden for State agencies and individuals. The
Department anticipates additional burden related to verification of
work hours and countable months, issuance and review of the
Consolidated Work Notice, and the review of the oral explanation of the
work requirements for individuals newly subject to the time limit. The
Department also anticipates additional burden related to the issuance
and review of the Notice of Adverse Action for individuals newly
subject to the time limit who reach three countable months and become
ineligible. The Department is accounting for this net increase in
individuals subject to the time limit and the resulting additional
burden in this information collection.
The FRA amended the SNAP program purpose to include assisting low-
income individuals in obtaining employment and earnings. The Department
does not anticipate any burden related to this change. The FRA also
reduced the annual allotment of discretionary exemptions and reduced
carryover of unused exemptions. The Department does not estimate any
change in burden related to reporting of discretionary exemptions,
which is covered under OMB Control Number 0584-0594 (Food Programs
Reporting System (FPRS); expiration date: 09/30/2026).
In addition to implementing the provisions of the FRA, this
proposed rule would also establish regulations that require State
agencies to screen individuals for exemptions from the general work
requirements and exceptions from the time limit. Currently, State
agencies are required to screen individuals for exemptions from the
general work requirements and exceptions from the time limit at initial
and recertification application. However, this requirement is not
captured in regulations and the related burden not captured in any
existing information collection. The Department is including new burden
related to screening in this information collection, which is required
to ensure State agencies apply ABAWD policy correctly.
This proposed rule would also amend regulations to require State
agencies to use all available information to verify exception status,
when questionable, before requiring individuals to provide
verification. The Department does not
[[Page 34349]]
anticipate a change in the burden related to the verification of
questionable information, which is covered under OMB Control Number
0584-0064 (SNAP Forms: Applications, Periodic Reporting, Notices;
expiration date: 02/29/2024). The Department anticipates an increase in
burden related to verification of questionable exception status, which
will be offset by a decrease in burden related to the verification
provision of this proposed rule.
The Department also anticipates start-up burden related to the
statutory and regulatory changes. State agencies will need to update
their eligibility systems and notices to include the new exceptions and
changes to the age-based exception. State agencies will also need to
update their policy manuals and documents with the changes to ABAWD
eligibility and the screening requirements. Lastly, State agencies will
need to develop and provide training on the new requirements to State
agency staff.
These new requirements necessitate a revision to OMB Control Number
0584-0479 (Expiration Date: 02/28/2026). The Department is seeking a
renewal of OMB Control Number 0584-0479 during the Final Rule phase.
OMB Control Number 0584-0479 currently covers burden related to
preparation and submission of ABAWD waivers. ABAWD waivers are
submitted via the Waiver Information Management System (WIMS), and the
burden for this submission which is covered under OMB Control Number
0584-0083 (Operating Guidelines, Forms, Waivers, Program and Budget
Summary Statement; expiration date: 9/30/2026). The proposed rule would
not make changes to burden covered under OMB Control Number 0584-0083.
Due to the addition of new burden items, the Department recommends
changing the title of 0584-0479 to ``Supplemental Nutrition Assistance
Program: Work Requirements and Screening.''
Start-Up Burden
Respondents: State Agencies.
Estimated Number of Respondents: 53 State Agencies and 107,370
eligibility workers.
Estimated Number of Respondents per Respondent: 2,029 responses.
Estimated Total Annual Burden on Respondents: 473,857 hours, an
increase of 473,857 hours from current inventory of 0 hours in 0584-
0479.
Ongoing Burden
Respondents: State Agencies and Individuals.
Estimated Number of Respondents: 53 State Agencies and
26,801,899.49 Individuals.
Estimated Number of Respondents per Respondent: 505,696.88
responses per State Agency and one (1) per Individual.
Estimated Total Annual Burden on Respondents: 3,617,537.24 hours
(1,809,350.12 hours for State Agencies and 1,808,187.12 hours for
Individuals), an increase of 3,616,374.244 hours from current inventory
of 1,163 hours in 0584-0479.
The total burden for this rulemaking is 4,090,231.24 burden hours
and 53,711,362.97 total annual responses. This represents an increase
to the burden hours for OMB Control Number 0584-0479, resulting in a
total inventory of 4,091,394.24 burden hours (4,090,231.24 new burden
hours + 1,163 existing burden hours) and 53,711,362.97 responses
(unchanged).
BILLING CODE 3410-30-C
[[Page 34350]]
[GRAPHIC] [TIFF OMITTED] TP30AP24.000
[[Page 34351]]
[GRAPHIC] [TIFF OMITTED] TP30AP24.001
[[Page 34352]]
[GRAPHIC] [TIFF OMITTED] TP30AP24.002
[[Page 34353]]
[GRAPHIC] [TIFF OMITTED] TP30AP24.003
[[Page 34354]]
[GRAPHIC] [TIFF OMITTED] TP30AP24.004
[[Page 34355]]
BILLING CODE 3410-30-P
E-Government Act Compliance
The Department is committed to complying with the E-Government Act
of 2002, to promote the use of the internet and other information
technologies to provide increased opportunities for citizen access to
Government information and services, and for other purposes.
List of Subjects
7 CFR Part 271
Administrative practice and procedures, Employment, Supplemental
Nutrition Assistance Program.
7 CFR Part 273
Administrative practice and procedure, Able-bodied adults without
dependents, Employment, Time limit, Work requirements.
Accordingly, the Food and Nutrition Service proposes to amend 7 CFR
part 271 and 273 as follows:
0
1. The authority citation for parts 271 and 273 continues to read as
follows:
Authority: 7 U.S.C. 2011-2036.
PART 271--GENERAL INFORMATION AND DEFINITIONS
0
2. In Sec. 271.1, amend paragraph (a) by adding two sentences at the
end of the paragraph to read as follows:
Sec. 271.1 General purpose and scope.
(a) * * * That program includes as a purpose to assist low-income
adults in obtaining employment and increasing their earnings. Such
employment and earnings, along with program benefits, will permit low-
income households to obtain a more nutritious diet through normal
channels of trade by increasing food purchasing power for all eligible
households who apply for participation.
* * * * *
0
3. In Sec. 271.2, revise the definitions of ``homeless individual''
and ``screening'' to read as follows:
Sec. 271.2 Definitions
* * * * *
Homeless individual means
(1) An individual who lacks a fixed and regular nighttime
residence, including, but not limited to, an individual who will
imminently lose their nighttime residence; or
(2) An individual whose primary nighttime residence is:
(i) A supervised shelter designed to provide temporary
accommodations (such as a welfare hotel or congregate shelter);
(ii) A halfway house or similar institution that provides temporary
residence for individuals intended to be institutionalized;
(iii) A temporary accommodation for not more than 90 days in the
residence of another individual; or
(iv) A public or private place not designed for, or ordinarily
used, as a regular sleeping accommodation for human beings (a hallway,
a bus station, a lobby, or similar places).
* * * * *
Screening means an evaluation by the eligibility worker as to
whether a person meets an exemption from the general work requirements,
meets an exception from the able-bodied adults without dependents time
limit, or should or should not be referred for participation in an
employment and training program. Screening for participation in
employment and training programs is not considered an approvable E&T
component.
* * * * *
PART 273--CERTIFICATION OF ELIGIBLE HOUSEHOLDS
0
3. In Sec. 273.7, add paragraph (b)(3) to read as follows:
Sec. 273.7 Work provisions.
* * * * *
(b) * * *
(3) State agencies must screen individuals to determine if they
meet an exemption listed in paragraph (b)(1) of this section at
certification and recertification.
* * * * *
0
4. In Sec. 273.24:
0
a. Amend paragraph (c)(1) by removing the number ``50'' and adding in
its place ``55'';
0
b. Amend paragraph (c)(5) by removing ``or'' at the end of the
paragraph;
0
c. Amend paragraph (c)(6) by removing the period and adding a semicolon
in its place;
0
d. Add paragraphs (c)(7) through (10);
0
e. Amend paragraph (g)(3) by removing the number ``12'' and adding in
its place ``8'';
0
f. Amend paragraph (h)(2)(i) by adding a sentence at the end; and
0
g. Add paragraphs (k) and (l).
The additions read as follows:
Sec. 273.24 Time Limit for able-bodied adults.
* * * * *
(c) * * *
* * * * *
(7) Homeless, as defined in Sec. 271.2 of this chapter;
(8) A veteran, defined as an individual who, regardless of the
conditions of their discharge or release from, served in the United
States Armed Forces (such as Army, Marine Corps, Navy, Air Force, Space
Force, Coast Guard, and National Guard), including an individual who
served in a reserve component of the Armed Forces, or served as a
commissioned officer of the Public Health Service, Environmental
Scientific Services Administration, or the National Oceanic and
Atmospheric Administration; or
(9) An individual who is 24 years of age or younger and who was in
foster care under the responsibility of any State, District, U.S.
Territories, Indian Tribal Organization, or Unaccompanied Refugee
Minors Program on the date of attaining 18 years of age, including
those who remain in extended foster care in States that have elected to
extend foster care in accordance with section 475(8)(B)(iii) of the
Social Security Act (42 U.S.C. 675(8)(B)(iii) or those who leave
extended foster care before the maximum age.
(10) Unless otherwise changed by law, the exceptions provided at
paragraphs (c)(7) through (9) of this section cease to have effect on
October 1, 2030, and the age limit provided in paragraph (c)(1) of this
section reverts from ``55 years of age or older'' to ``50 years of age
or older'' on October 1, 2030.
* * * * *
(h) * * *
(2) * * *
(i) * * * Starting in FY 2026, FNS will increase the estimated
number of exemptions allocated to the State agency for the subsequent
fiscal year by the remaining balance of unused exemptions earned for
the previous fiscal year.
* * * * *
(k) Screening. The State agency must screen individuals for
exceptions from the time limit listed under paragraph (c) of this
section at certification and recertification. The State agency must not
assign countable months unless it has screened the individual and
determined that no exception applies.
(1) Changes in exception status during the certification period.
(i) Loss of an exception. If during the certification period an
individual has a change in circumstances that results in the loss of an
exception from the time limit, the State agency cannot begin assigning
countable months until it screens the individual to determine whether
any other exception applies.
(ii) Newly meeting an exception. If during the certification period
an individual subject to the time limit has a change in circumstance
that results in the individual now meeting an exception, the State
agency must act promptly to apply the exception and
[[Page 34356]]
cannot assign a countable month once the State receives information
that is not questionable. If the State agency determines the
information is questionable, the State agency must act promptly to
verify the information. Once verified, the State agency must apply the
exception and cannot assign countable months.
(l) Verification of exceptions. If the State agency determines an
individual's exception status under paragraph (c) of this section is
questionable, the State agency must first attempt to verify exception
status using information available to the State agency, such as
information from other public assistance programs through data sharing,
before requiring individuals provide documentary evidence or other
sources of verification.
Cynthia Long,
Administrator, Food and Nutrition Service.
Note: The following appendix will not appear in the Code of
Federal Regulations.
Appendix A--Regulatory Impact Analysis
I. Statement of Need
This proposed rulemaking is necessary to amend Supplemental
Nutrition Assistance Program (SNAP) regulations to reflect mandates
within the Fiscal Responsibility Act (FRA) of 2023 (Pub. L. 118-5)
establishing changes to SNAP's work requirements and time limit for
several groupings of adults. The FRA also directs the U.S.
Department of Agriculture (the Department) to add to the program
purpose language in the Food and Nutrition Act of 2008 (the Act), as
amended. The proposed rule amends SNAP regulations to incorporate
several provisions of the FRA: adjust SNAP's able-bodied adult
without dependents (ABAWD) work requirement and time limit on a
phased-in approach to newly included individuals who are aged 50-54;
establish new exceptions for individuals who are veterans, homeless,
and youth aged 24 or younger who have aged out of a foster care
program from SNAP's ABAWD work requirement and time limit; decrease
State agencies' annual allotment of discretionary exemptions for
individuals subject to the ABAWD time limit from 12 percent to 8
percent; and limit State agencies' ability to carryover unused
discretionary exemptions beyond one year. The provisions outlined
above will be phased in between the enactment of the legislation in
June 2023, through October 2025, with several provisions sunsetting
October 1, 2030. The proposed rule also makes a discretionary
amendment to the regulations requiring State agencies to screen
individuals for exceptions to the time limit, as well as exemptions
from the general work requirement, as State agencies must screen for
both to adequately determine if an individual should be subject to
the time limit. The Department is proposing to amend the regulations
to clarify requirements for screening to improve consistency in
program operations across States and provide quality customer
service.
II. Summary of Impacts
The Department estimates the net total increase in federal
transfers (SNAP benefit spending) associated with the provisions of
this proposed rule to be approximately $2.8 billion over the nine
years Fiscal Year (FY) 2023-FY 2031, averaging $306.5 million per
year. Over the nine-year period FY 2023-FY 2031,\27\ this is the net
result of a reduction in transfers of $6.3 billion by terminating
benefits to about 2.0 million individuals and reducing the benefits
of 103,000 individuals by $155.2 million, and an increase in
transfers of $9.2 billion due to about 2.7 million individuals
meeting exceptions from the ABAWD time limit. Over the nine-year
period, federal administrative costs (not including transfers) are
estimated to total $252.5 million, or an annual average of $28.1
million. Total State agency administrative expenses are also
estimated to be approximately $252.5 million over the nine-year
period, or an annual average of $28.1 million. Costs associated with
administrative burden to individual SNAP participants are estimated
to be approximately $322.0 million over the nine-year period, or an
annual average of $35.8 million. See Table 1 for a year-by-year
presentation of changes to transfers, federal administrative costs,
State agency administrative costs, and burden costs to individual
participants.
---------------------------------------------------------------------------
\27\ A nine-year analysis period is used to align with the
implementation and sunset periods established by the FRA. See
discussion of baseline and time horizon of analysis for more detail.
---------------------------------------------------------------------------
This proposed rule will primarily affect SNAP participants who
are subject to the ABAWD work requirement and time limit, which the
Department estimates to be approximately 9.3 percent of SNAP
participants upon full implementation of the FRA's provisions in FY
2026. However, many of these participants will meet the work
requirement or receive an exception, so far fewer will lose
eligibility for SNAP.
The estimated net impact of the proposed rule's change in the
age-based exceptions and three new exceptions is a net increase in
SNAP participation of about 55,000 individuals per year when fully
implemented. In FY 2026, this includes 345,000 participants losing
eligibility, 369,000 participants retaining eligibility through one
of the new exceptions, and about 30,000 new participants. See Table
8 for year-by-year details on additional participation and transfer
impacts.
The rule is estimated to increase administrative burden for most
State SNAP agencies at initial implementation, throughout the period
the provisions are in effect, and at the sunset of the provisions
that expire on October 1, 2030. The rule is expected to result in a
one-time administrative burden of 473,857 total hours (about $10.3
million in FYs 2023 and 2024 after 50 percent federal cost
reimbursement \28\) in start-up costs for State agencies. Ongoing
State agency administrative burden is expected to increase annually
by an average of about 1.4 million total hours for 53 State agencies
(about $25.3 million annually after 50 percent federal cost
reimbursement). The one-time total State agency administrative
burden of sunsetting the applicable provisions within this proposed
rule is estimated to be 625,024 total hours (about $15.0 million in
FYs 2030 and 2031 after 50 percent federal cost reimbursement). The
rule provisions will impose additional administrative burden on
participants who are subject to the ABAWD work requirement,
estimated to be an ongoing average annual burden of 1.4 million
hours for all individuals impacted, or (about $35.3 million
annually), as well as will impose a one-time burden during the
sunsetting of applicable provisions of 151,167 hours (or about $4.0
million in FY 2031). In addition to the federal cost of the 50
percent reimbursement to State agencies, the rule is expected to
result in a one-time administrative burden of 90 hours at
implementation (or $6,760 in FY 2024) and a one-time administrative
burden of 63 hours at sunset (or $5,813 in FY 2030) to the Federal
Government. The impacts of the proposed rule's provisions are
summarized in the following table (Table 1).
---------------------------------------------------------------------------
\28\ Fifty percent of State agencies' allowable SNAP
administrative costs are reimbursed by the Federal Government, as
defined at 7 CFR 277.4(b).
---------------------------------------------------------------------------
[[Page 34357]]
[GRAPHIC] [TIFF OMITTED] TP30AP24.005
As required by OMB Circular A-4, in Table 2 below, the
Department has prepared an accounting statement showing the
annualized estimates of benefits, costs, and transfers associated
with the provisions of this rule. Due to the primary focus on
transfer
[[Page 34358]]
effects in this near-term analysis, the Department has used a
discount rate of 2 percent. Increases in SNAP benefit payments are
categorized as transfers; increases in administrative burden for
State agencies, households, and the Federal Government are
categorized as costs.
[GRAPHIC] [TIFF OMITTED] TP30AP24.006
In the discussion that follows, there is a section-by-section
description of the effects of the proposed rule on SNAP
participants, the Federal Government, and State agencies
administering SNAP.
III. Background
A. Work Requirements in SNAP
The Food and Nutrition Act of 2008 (the Act), as amended,
establishes national eligibility standards for SNAP, including work
requirements for certain individuals. The first of these
requirements, referred to as the general work requirement, requires
individuals between the ages of 16-59 who are able to work to
register for work; accept an offer of suitable employment; not
voluntarily quit or reduce hours of employment below 30-hours per
week, without good cause; and participate in workfare or SNAP
Employment and Training (E&T) \29\ if required by the State agency.
Most SNAP participants are exempt from the general work requirement
because they are older adults, children, have a disability, or meet
another exemption from the general work requirement listed in the
Act.
---------------------------------------------------------------------------
\29\ The SNAP Employment and Training (E&T) program helps SNAP
participants gain skills and find work that moves them forward to
self-sufficiency. Depending on whether a State agency operates a
mandatory E&T program, individuals in some States may be required to
participate in the State's E&T program as a condition of meeting
work requirements. Federal funding for SNAP E&T was $384 million in
FY 2023.
---------------------------------------------------------------------------
A subset of individuals who are subject to the general work
requirement are also subject to an additional requirement, referred
to as the able-bodied adult without dependents (ABAWD) work
requirement. Prior to the FRA, individuals subject to the ABAWD work
requirement were individuals ages 18 to 49 who do not have a child
(under age 18) in their SNAP household and are not considered
disabled by SNAP rules.\30\ The Act limits individuals who are
subject to the ABAWD work requirement and time limit, also referred
to as time-limited participants,
[[Page 34359]]
to receiving SNAP benefits for 3 months in a 36-month period (the
time limit) unless they are meeting the ABAWD work requirement, live
in an area where the time limit is waived due to a lack of
sufficient jobs or a high unemployment rate, or are otherwise
exempt. If an individual subject to the ABAWD work requirement and
time limit receives SNAP benefits in a month when they did not meet
the work requirement or otherwise were waived or excepted from the
time limit as noted above, that month is considered a ``countable''
month and counts as 1 of the 3 months within the 36-month period
where the individual may still retain SNAP eligibility. The Act
provides exceptions from the ABAWD work requirement and time limit
based on certain individual circumstances, such as physical or
mental limitations that limit ability to work, need to care for a
dependent household member, pregnancy, or meeting an exemption from
the general work requirement. Individuals can meet the ABAWD work
requirement by working, participating in a qualifying work program,
or any combination of the two, for at least 20 hours per week
(averaged monthly to 80 hours per month). Individuals can also meet
the ABAWD work requirement by participating in and complying with
workfare. For the purposes of meeting the ABAWD work requirement,
working includes unpaid or volunteer work that is verified by the
State agency.
---------------------------------------------------------------------------
\30\ In SNAP, an individual is considered disabled if they
receive federal disability or blindness payments under the Social
Security Act, including Supplemental Security Income (SSI), receive
state disability or blindness payments based on SSI rules, receive
disability retirement benefits from a governmental agency because of
a permanent disability, receive an annuity under the Railroad
Retirement Act and are eligible for Medicare or are considered
disabled under SSI; are a veteran who is totally disabled,
permanently homebound, or in need of regular aid and attendance; or
are the surviving spouse or child of a veteran who is receiving VA
benefits and is considered permanently disabled.
---------------------------------------------------------------------------
B. Characteristics of Individuals Subject to the ABAWD Work
Requirement and Time Limit
The Department estimates that in FY 2024, approximately 9
percent of SNAP participants are ages 18 to 49 and subject to the
ABAWD work requirement, and 84 percent of them are in one-person
SNAP households.\31\ These time-limited participants have very low
household gross income, averaging only 32 percent of the federal
poverty line (FPL). For comparison, the average SNAP household has a
gross income twice as high, or about 65 percent of the FPL. About 21
percent of time-limited participants are experiencing homelessness
at the time of SNAP certification or recertification.\32\ Research
indicates that time-limited participants who are not meeting the
ABAWD work requirement can face significant barriers to finding or
increasing their employment. A 2021 USDA study in 9 States found
that 5 to 12 percent of SNAP participants subject to the time limit
were meeting the work requirement when those States reinstated the
time limit after the Great Recession. Participants who were homeless
were much less likely to meet the ABAWD work requirement. The study
also found the reinstatement of the time limit substantially reduced
SNAP participation among individuals subject to the time limit, with
no evidence of increased employment or earnings.\33\
---------------------------------------------------------------------------
\31\ Note: The Department estimates that individuals subject to
the ABAWD work requirement are a larger share of the caseload than
would be suggested by the most recent SNAP QC data available (from
pre-pandemic FY 2020). This is due to the extended suspension of the
ABAWD time limit during the COVID-19 Public Health Emergency by the
Families First Coronavirus Response Act (FFCRA). While the pre-
pandemic FY 2020 QC data suggests this group accounts for 7.3
percent of SNAP participants, the Department believes 9 percent is a
more accurate estimate for the start of FY 2024. This estimate is
based on caseload trends in the wake of the Great Recession when the
time limit was similarly temporarily lifted by the American Recovery
and Reinvestment Act of 2009.
\32\ Based on tabulation of pre-pandemic FY 2020 SNAP QC data.
\33\ Wheaton, Laura et al. (2021) The Impact of SNAP Able-Bodied
Adults Without Dependents (ABAWD) Time Limit Reinstatement in Nine
States. Prepared by the Urban Institute for the USDA Food and
Nutrition Service, 2021. Available at: https://www.fns.usda.gov/snap/impact-snap-able-bodied-adults-without-dependents-abawd-time-limit-reinstatement-nine.
---------------------------------------------------------------------------
C. Factors That Permit Time-Limited Individuals To Continue
Participating in SNAP Beyond Three Months
As previously discussed, some individuals who are subject to the
ABAWD work requirement may meet an exception from the time limit.
The Act also allows for waivers of the time limit in geographic
areas with an unemployment rate over 10 percent or an insufficient
number of jobs to provide employment for individuals, as defined at
7 CFR 273.24(f). Individuals residing in areas with a waiver of the
time limit continue receiving benefits even if they are not meeting
the ABAWD work requirement for more than 3 months in a 36-month
period. Lastly, the Act establishes an annual allotment of
discretionary exemptions that State agencies may use to extend
eligibility for a time-limited participant who is not meeting the
ABAWD work requirement. Each discretionary exemption can extend
eligibility for one participant for one month and a single
participant can receive multiple one-month discretionary exemptions.
As defined by law, each State agency's allotment of discretionary
exemptions is calculated annually by the Department, based on the
total number of time-limited participants in the State who have
exceeded three countable months due to the time limit in the
preceding fiscal year, known as ``covered'' individuals. Prior to
the FRA, State agencies' annual allotments of discretionary
exemptions were based on 12 percent of the total number of covered
individuals in the State. If a State agency did not use the
exemptions, they could be carried over indefinitely.
D. FRA Legislative Updates
The FRA \34\ amended the Act, revising the definition of who is
subject to the ABAWD work requirement and time limit, exceptions
from the time limit, procedures for the calculation and carryover of
discretionary exemptions, as well as the program purpose. Based on
these changes, the Department is proposing to amend the regulations
to reflect the requirements of the FRA. The FRA also required the
Department to publicize all available State requests for waivers
authorized by Sec. 6(o)(4)(A), including supporting data, and all
Department approvals of waivers within 30 days of enactment. The
Department complied with this requirement and is not proposing
rulemaking relating to this provision.
---------------------------------------------------------------------------
\34\ Full text of the law can be found at: https://www.congress.gov/bill/118th-congress/house-bill/3746/text.
---------------------------------------------------------------------------
E. Baseline and Time Horizon of Analysis
Our baseline for measuring the costs, benefits, and transfers
associated with this proposed rule is the Department's estimated
SNAP participation and benefit spending for FYs 2023-2031, shown in
Table 3 below. The baseline represents the Department's best
estimate of SNAP participation and spending (in nominal dollars) in
the absence of the provisions included in this proposed rule. All
costs related to administrative burden for State agencies, the
Federal Government and households are measured against currently
approved burden estimates in OMB Control No. 0584-0479.
This regulatory impact analysis (RIA) uses FY 2023-FY 2031 as
the timeframe for analysis because this range fully incorporates the
implementation and sunsetting periods of FRA provisions. A 9-year
analysis period (rather than a more typical 5-year or 10-year
period) is used to align with the implementation period established
by the FRA, beginning in September 2023. While some of the
provisions included in the FRA and in the proposed rule will be
ongoing, others are expected to sunset at the start of FY 2031. As a
portion of SNAP participants will not be affected by the sunset
immediately upon the start of the fiscal year, but rather at their
screening that will take place during FY 2031, the Department
expects there will be some continuing transfer impacts in FY 2031,
as well as administrative costs associated with the sunsetting of
certain provisions in FYs 2030 and 2031. Thus, the Department
determined that the period FY 2023-FY 2031 is the appropriate period
to assess the proposed rule's economic effects.
[[Page 34360]]
[GRAPHIC] [TIFF OMITTED] TP30AP24.019
F. Methodology
Multiple data sources were used to estimate how the provisions
in the proposed rule would affect SNAP participants, State agencies,
and the Federal Government. Methodology and estimates are discussed
in this section, according to the data source used. To estimate the
effects of the proposed rule's provisions, the proportion of SNAP
participants likely to be affected by each provision was derived
from the following data sources. Those ratios were then applied to
the Mid-Session Review of the FY 2024 President's Budget baseline
for SNAP spending and participation to produce estimates of changes
in participation and benefit spending (in nominal dollars) for
future years. These were the most recent baseline inputs available
at the time this analysis was prepared.
---------------------------------------------------------------------------
\35\ Each year as part of the process of developing the
President's Budget, the Department produces estimates of expected
SNAP participation and benefit spending over a ten-year period.
Estimates in this Regulatory Impact Analysis are based on Department
Estimates for the Mid-Session Review of the FY 2024 President's
Budget; benefit values for FY 2023 reflect certified benefit amounts
(excluding emergency allotments authorized during the COVID-19
Public Health Emergency).
---------------------------------------------------------------------------
SNAP Quality Control Data
The estimates provided in this RIA are primarily based on SNAP
Quality Control (QC) data from the pre-pandemic portion of FY
2020,\36\ and the SNAP baseline included in Table 3. At the time of
analysis, this is the most recent period for which the Department
has QC data from all 53 State agencies due to interruptions in QC
data collection during the COVID-19 Public Health Emergency. SNAP QC
data are collected annually as part of the ongoing effort to
determine the accuracy of SNAP certification actions.\37\ Data are
collected for a sample of SNAP households that is statistically
representative at both the national and state levels. The pre-
pandemic FY 2020 QC dataset includes data from 18,319 households,
including information on household earnings, household composition,
and participant characteristics that permit inference of ABAWD
status (e.g., age, disability status, presence of children in the
SNAP household, and whether the individual is exempt from the SNAP
general work requirement). The data also include information that
can be used to infer employment status (e.g., amount of monthly
earned income). The sample of households included in the pre-
pandemic FY 2020 dataset are weighted to be representative of the
SNAP caseload during that period nationally and in each State.
---------------------------------------------------------------------------
\36\ SNAP QC data from the pre-pandemic period covers October
2019 to February 2020, as data collection after February 2020 was
limited by the COVID-19 public health emergency.
\37\ Detailed information on the QC review process, including
sampling requirements and procedures for conducting QC reviews, can
be found on the FNS website at: http://www.fns.usda.gov/snap/quality-control.
---------------------------------------------------------------------------
Estimates derived from the QC data include:
50-54-Year-Olds Newly Subject to the ABAWD Work Requirement and Time
Limit
Share of SNAP participants that are likely to be newly
subject to the ABAWD work requirement and time limit due to the
FRA's change to include 50-to-54-year-olds (2.0 percent of total
SNAP participants). Among this group, we estimated:
[cir] The share that are likely meeting the ABAWD work
requirement, based on information about employment status and
earnings (10.6 percent).
[cir] The share that are likely to increase their work hours in
order to begin meeting the ABAWD work requirement, based on earnings
information (2.28 percent). Specifically, this estimate is based on
the share of individuals who were estimated to work 15-19 hours per
week.
[cir] The share that are likely to be excepted from the ABAWD
work requirement for reasons other than the three new exceptions
temporarily established by the FRA (e.g., a physical or mental
limitation that limits ability to work) because they are exempt from
the general work requirement for a reason other than disability (33
percent).
[cir] The average monthly per person benefit received by
individuals in this group (26.6 percent of the Thrifty Food Plan
(TFP)).
New Exception for Homelessness
Share of time-limited participants (between the ages of
18-54) who are also experiencing homelessness (20.6 percent). Among
this group, we estimated:
[cir] The share that are likely meeting the ABAWD work
requirement, based on information about employment status and
earnings (2.7 percent).
[cir] The share that are likely to increase their work hours in
order to begin meeting the ABAWD work requirement (1 percent).\38\
Because these individuals would begin meeting the ABAWD work
requirement, they are removed from the pool of individuals we
estimate would receive an exception from the time limit.
---------------------------------------------------------------------------
\38\ Note: We use 1 percent for this group, rather than 2.28
percent, based on the assumption that individuals experiencing
homelessness will face greater challenges in increasing their work
hours due to unstable housing, transportation barriers, inconsistent
access to hygiene materials or professional clothing, and other
challenges related to homelessness, as described by sources such as
the Urban Institute (https://www.urban.org/urban-wire/why-it-so-hard-people-experiencing-homelessness-just-go-get-job,), the
National Alliance to End Homelessness (https://endhomelessness.org/resource/overcoming-employment-barriers/), and the University of
Michigan School of Public Health (https://sph.umich.edu/pursuit/2020posts/homelessness-and-job-security-challenges-and-interventions.html).
---------------------------------------------------------------------------
[cir] The share that are likely to be excepted from the ABAWD
work requirement for reasons other than the three new exceptions
temporarily established by the FRA (e.g., a physical or mental
limitation that limits ability to work) because they are exempt from
the general work requirement for a reason other than disability (32
percent).
[cir] The average monthly per person benefit received by
individuals in this group (29.9 percent of the TFP).
Estimation of New SNAP Participation Based on the New FRA Exceptions
To estimate the likely increase in SNAP participation
as a result of the new exceptions in place, the Department estimated
a 1 percent increase in the share of childless adults without
disabilities between the ages of 18 and 49 in the SNAP baseline.
This modest estimate is based on the fact that the FRA provisions
went into effect at a time when many areas had waivers of the time
limit due to high unemployment rates that occurred during the COVID-
19 pandemic. Hence, many of these individuals made eligible by the
new exceptions may have already been participating in SNAP.
Changes in the Share of the Time-Limited SNAP Participants Between FY
2020 and FY 2024
The Department believes the number of time-limited SNAP
participants increased between the period for which we have SNAP QC
data (pre-pandemic FY 2020) and the end of FY 2023, when the FRA's
provisions began to take effect. This is due to the temporary
suspension of the ABAWD time limit for the duration of the COVID-19
Public Health Emergency authorized by the Families First Coronavirus
Response Act (FFCRA).
Given that time-limited participants largely did not
accrue countable months prior to July 2023 due to the temporary
suspension of the ABAWD time limit during the pandemic, the
Department believes time-
[[Page 34361]]
limited participants were a larger share of total participants at
the end of FY 2023 and beginning of FY 2024 than indicated by the
pre-pandemic FY 2020 QC data (7.3 percent) when fewer geographic
areas had waivers of the time limit.
The Department opted to use FY 2013 SNAP QC data as a
proxy estimate for increased participation by time-limited
individuals. In 2009, the time limit was similarly suspended
nationwide for an extended period by the American Recovery and
Reinvestment Act of 2009 and most States continued to qualify for
and use Statewide waivers through FY 2013 due to high unemployment
rates that lingered after the Great Recession. FY 2013 SNAP QC data
indicate that time-limited participants were 9.0 percent of total
SNAP participants.
Correspondingly, the Department assumed that time-
limited participants ages 18-49 make up a larger share of
participants (9.0 percent) at the start of FY 2024, before declining
to back to 7.3 percent of participants in FY 2025 and subsequent
years as was seen in pre-pandemic FY 2020 when unemployment rates
were lower. This adjustment was not made to time-limited
participants ages 50-54 because their share of total participants
was similar in the FY 2013 and pre-pandemic FY 2020 QC data.
Veterans' Participation in SNAP and ABAWD Status From American
Community Survey (ACS) Data
Given that the SNAP QC data do not include information about
veteran status, the Department relied on 2022 American Community
Survey (ACS) data to estimate how many individuals participating in
SNAP may be subject to the ABAWD work requirement and are veterans.
The ACS data were tabulated to determine how many individuals in the
U.S. have prior military service, are between the ages of 18-54,
participate in SNAP, do not have a disability,\39\ and do not have a
child in their household.\40\ Compared to the total number of
individuals reporting SNAP participation in the 2022 ACS, this
resulted in an estimate that 0.22 percent of SNAP participants may
be eligible for the new exception from the ABAWD time limit for
veterans. Without data on how many of these veterans would be exempt
from the ABAWD work requirement for reasons other than the three new
exceptions temporarily established by the FRA (e.g., a physical or
mental limitation that limits ability to work), we assume the same
share as time-limited participants ages 18 to 49 (32 percent).
---------------------------------------------------------------------------
\39\ As defined in SNAP rules.
\40\ The ACS variables used to create this tabulation were:
DRATX (``Veteran service connected disability rating''); HUPAC_RC1
(``HH presence and age of children recode''); FS (``Yearly food
stamp/Supplemental Nutrition Assistance Program (SNAP)
recipiency''); MIL_RC1 (``Military service recode''); SSIP_RC1
(``Supplementary Security Income past 12 months recode''); and
AGEP_RC1 (``Age recode'').
---------------------------------------------------------------------------
Without data on average monthly per person benefits for time-
limited participants who are also veterans, we assume that they
receive the same average benefit as 18-to-54-year-old time-limited
participants who are not working at least 20 hours per week (25.9
percent of the TFP).
Former Foster Youths' Participation in SNAP From Administration for
Children and Families (ACF)
The SNAP QC data do not include information about participants
that were formerly in the foster care system. The Department was
unable to find a national survey that would permit it to estimate
how many former foster youth between the ages of 18-24 participate
in SNAP, nor to determine the share who may be considered subject to
the ABAWD work requirement and time limit. In the absence of
reliable data, the Department generated an estimate based on
information available from the Administration for Children and
Families (ACF) on how many youth age out of the foster care system
each year, nationally. ACF indicates that about 20,000 youth
emancipate from foster care each year,\41\ resulting in a total
cohort of 18-24-year-old former foster youth of up to 140,000
individuals. We adjusted the 140,000 cohort size downward to reflect
the fact that about 68 percent of the U.S. population lives in
States that have opted to provide foster care up to age 21,\42\ so
there are likely proportionally fewer 18-to-20-year-olds in the
total former foster youth population. The adjustment resulted in an
estimate that 99,000 former foster youth could fall into the 18-24
age group that would be eligible for the new exception from the time
limit.
---------------------------------------------------------------------------
\41\ The United States Department of Health and Human Services,
Administration for Children and Families publishes an annual
Adoption and Foster Care Analysis and Reporting System (AFCARS)
Report. The most recent report uses FY 2021 data. https://www.acf.hhs.gov/sites/default/files/documents/cb/afcars-report-29.pdf.
\42\ This estimate is based on information in ``States with
Approval to Extend Care Provide Independent Living Options for Youth
up to Age 21'' from the Government Accountability Office, https://www.gao.gov/assets/gao-19-411.pdf.
---------------------------------------------------------------------------
However, not all 99,000 individuals would participate in SNAP
and be considered subject to the ABAWD work requirement. Using the
best-available data and research on former foster youth outcomes,
the Department assumes that approximately 65 percent of individuals
in this group may be SNAP-ineligible, are already meeting the ABAWD
work requirement, or are not subject to the ABAWD work requirement
(for reasons that can include being a student, having a child in
their household, or having a disability).\43\ In the absence of
precise data to inform the estimate, the Department estimated that
the remaining 35 percent of this group will benefit from the new
exception (about 35,000 individuals per year).
---------------------------------------------------------------------------
\43\ Sources informing this estimate include: The Annie E. Casey
Foundation, https://www.aecf.org/resources/future-savings; Chapin
Hall at the University of Chicago, https://www.chapinhall.org/wp-content/uploads/Midwest-Eval-Outcomes-at-Age-26.pdf; the United
States Department of Agriculture, https://www.fns.usda.gov/snap/characteristics-snap-households-fy-2020-and-early-months-covid-19-pandemic-characteristics; and ABAWD Waiver coverage rates, https://www.fns.usda.gov/snap/ABAWD/waivers.
---------------------------------------------------------------------------
Without data on average monthly per person benefits for time-
limited participants who are also former foster youth up to age 24,
we assume that they receive the same average monthly benefit as 18-
to-49-year-old time-limited participants who are not working at
least 20 hours per week (25.7 percent of the TFP).
SNAP ABAWD Waiver Coverage and ACS Data on Low-Income Population
Waivers of the ABAWD time limit play a significant role in
determining the number of participants who are subject to the time
limit at any given time. The Department determined it was necessary
to estimate the share of time-limited participants who are likely to
live in a waived area to more accurately determine how many
individuals would lose or retain eligibility annually due to the
FRA. Without this adjustment, estimates would overstate both the
increase in transfers associated with time-limited participants
retaining SNAP eligibility because of the new exceptions, and the
decrease in transfers associated with individuals ages 50-54 newly
becoming subject to the ABAWD work requirement and time limit, and
subsequently losing eligibility.
Internal analyses were conducted to estimate the share of
participants subject to the ABAWD work requirement likely to live in
a waived area at two different points in time, based on the
assumption that FY 2023 would have a higher level of waiver
coverage, declining to stabilize at a lower rate in FY 2026:
(1) Quarter 2 of FY 2023, to reflect a ``high'' degree of waiver
coverage as FRA provisions began to go into effect, when many State
agencies still had statewide waivers of the time limit due to high
unemployment rates that occurred during the COVID-19 pandemic; and
(2) Quarter 1 of FY 2020, to reflect a ``low'' degree of waiver
coverage that occurred in the pre-pandemic months, after an extended
period of relatively low unemployment rates nationally.
To conduct these analyses, we identified the local areas covered
by FNS-approved waivers \44\ of the ABAWD time limit in each of the
two above-noted time periods. Then, ACS data were used to determine
the share of the low-income population (defined as below 125 percent
of the FPL) in the U.S. that lived in those waived areas; the low-
income population was used as a proxy for SNAP participants. The
results of these analyses indicated that in a period of ``high''
waiver coverage, 55 percent of SNAP participants likely live in an
area with a waiver of the time limit, and in periods of ``low''
waiver coverage, about 40 percent of SNAP participants likely live
in an area with a waiver of the time limit. Additionally, analysis
of SNAP QC data on the distribution of participants aged 50-54
indicates that the share of SNAP participants who live in an area
with a waiver is about 10 percentage points lower, compared to those
aged 18-49 years. Thus, we assume waiver coverage
[[Page 34362]]
among those aged 50-54 years was 10 percentage points lower than
those aged 18-49 years who are subject to the ABAWD work
requirement. The Department assumed that FY 2023 would have ``high''
waiver coverage and would decline each year to reach ``low'' waiver
coverage in FY 2026.
---------------------------------------------------------------------------
\44\ All FNS-approved ABAWD Waivers are publicly-available at
https://www.fns.usda.gov/snap/ABAWD/waivers.
---------------------------------------------------------------------------
State-Reported Data on Discretionary Exemption Usage
To assess the effects of the FRA's provisions limiting States
agencies' discretionary exemption allotments to 8 percent of covered
individuals and preventing carryover of unused exemptions beyond one
fiscal year, the Department examined State agency-reported data on
discretionary exemption usage. States are required to provide this
data to the Department on an annual basis. The Department examined
data from FY 2016-FY 2019 to understand how many exemptions States
typically use. Those data indicated that State agencies typically
use less than an 8 percent allotment of discretionary exemptions.
The four-year period FY 2016-FY 2019 was used to represent a multi-
year period during which the time limit was not lifted nationally.
Estimating the Value of State Agency, Federal, and Participant Burden
Cost estimates in this RIA account for increased burden for
State agencies, the Federal Government, and SNAP participants.
Hourly labor rates used to monetize burden hours in this analysis
align with those presented in the proposed rule's burden table:
State agency program staff: FY 2023 fully-loaded labor
rate is $31.48. This is based on Bureau of Labor Statistics (BLS)
May 2022 estimates of the median hourly wage rate for occupation
code 21-1090, Miscellaneous Community and Social Service Specialists
($23.67) multiplied by 1.33 to represent fully-loaded wages.
State agency program manager: FY 2023 fully-loaded
labor rate is $51.18. This is based on BLS May 2022 estimates of the
median hourly wage rate for occupation code 11-9151, Social and
Community Service Managers ($38.48) multiplied by 1.33 to represent
fully-loaded wages.
State agency computer developers: FY 2023 fully-loaded
labor rate is $52.69. This is based on BLS May 2022 estimates of the
median hourly wage rate for occupation code 15-0000, Computer and
Mathematical Operations ($39.62) multiplied by 1.33 to represent
fully-loaded wages.
Federal program analyst: FY 2023 fully-loaded labor
rate is $71.38. This is based on OPM 2023 salary data for the
Washington-Baltimore-Arlington, DC-MD-WV-PA locality pay region for
a GS-13 Step 1 employee ($53.67) multiplied by 1.33 to represent
fully-loaded wages.
Federal supervisory analyst: FY 2023 fully-loaded labor
rate is $84.36. This is based on OPM 2023 salary data for the
Washington-Baltimore-Arlington, DC-MD-WV-PA locality pay region for
a GS-14 Step 1 employee ($63.43) multiplied by 1.33 to represent
fully-loaded wages.
Federal division director: FY 2023 fully-loaded labor
rate is $99.22. This is based on OPM 2023 salary data for the
Washington-Baltimore-Arlington, DC-MD-WV-PA locality pay region for
a GS-15 Step 1 employee ($74.60) multiplied by 1.33 to represent
fully-loaded wages.
SNAP participants: FY 2023 labor rate is $22.02. This
is based on the Current Population Survey (CPS) FY 2023 median
weekly wage for full-time and salary workers, ages 16 and up
($1,101/week, divided by 40 hours to produce an hourly rate of
$27.525). Because burden on SNAP participants reflects activities,
like completing SNAP forms, that occur outside of an employment
setting, the hourly rate derived from the weekly wage is discounted
by 20 percent to remove the value of taxes and other work-related
costs, resulting in $22.02.
The labor rates presented above are inflated for estimates of
burden costs in future years using CPI-W projections from the Office
of Management and Budget's (OMB) FY 2025 President's Budget Economic
Assumptions. All administrative expense estimates presented in this
RIA are based on labor rates that have been inflated based on CPI-W
projections.
IV. Section-by-Section Analysis
The increases and decreases in SNAP benefit transfers,
administrative costs, and burden hours associated with each
provision of the proposed rule are discussed separately in this
section of the RIA. Throughout the section-by-section analysis, FY
2026 is used as a reference year to provide an indication of the
proposed rule's effect after all provisions have been phased-in.
A. Requirement To Add Purpose Language to the Food and Nutrition
Act of 2008
Discussion: This provision of the FRA requires the Department to
add the following program purpose to The Act: ``That program
includes as a purpose to assist low-income adults in obtaining
employment and increasing their earnings. Such employment and
earnings, along with program benefits, will permit low-income
households to obtain a more nutritious diet through normal channels
of trade by increasing food purchasing power for all eligible
households who apply for participation.'' The Department proposes
adding this language as an addition to 7 CFR 271.1(a), where the
general purpose and scope of SNAP are defined.
Effect on SNAP Participants: As this provision is
administrative, the Department expects it will not impact program
participants in a quantifiable way.
Effect on State Agencies: The Department expects no State agency
burden to be incurred as a direct result of this provision.
Effect on Federal Spending: The Department expects no changes in
federal administrative costs or transfers to be incurred as a direct
result of this provision.
B. Requirement To Update Exceptions From the ABAWD Time Limit
There are four components that comprise this provision, which
expands the category of individuals subject to the ABAWD work
requirement and time limit by adjusting the upper age limit from 49
to 54, on a phased-in timeline between September 2023 to October
2024, as well as creates three new categories of exceptions from the
ABAWD time limit. All components of this provision will sunset on
October 1, 2030, pending any future legislative changes.
Changes to Age-Based Exceptions
Discussion: This provision gradually raises the upper age limit
defining who is subject to SNAP's ABAWD work requirement from age 49
to age 54, thereby expanding the group of SNAP participants who are
subject to the time limit. Specifically, the upper age limit changed
from age 49 to age 50 on September 1, 2023; from age 50 to age 52 on
October 1, 2023; and will change from age 52 to age 54 on October 1,
2024. Upon full phase-in of these adjustments, the ABAWD time limit
will apply to adults aged 18 through 54 until the sunset of this
provision on October 1, 2030. This provision will sunset immediately
on October 1, 2030, and is not subject to a phase-out period in FY
2031.
Only individuals aged 50 to 54 who do not qualify for an
exception from the ABAWD time limit (such as a physical or mental
condition that limits ability to work, need to care for a dependent
household member, or meeting an exemption from the general SNAP work
requirement) would be newly considered subject to the ABAWD time
limit.
Effect on SNAP Participants: The Department expects the changes
to the age-based exception to decrease program participation among
SNAP participants ages 50 to 54 who are newly subject to the ABAWD
work requirement and time limit from implementation in FY 2023 until
sunset of the provision. If these individuals are not able to meet
the ABAWD work requirement, the time limit will take effect and they
will lose program eligibility after 3 months of SNAP participation
per 36-month period unless that individual qualifies for an
exception, receives a discretionary exemption, or lives in an area
with a waiver of the time limit.
In FY 2026, when this provision is fully implemented, the
Department (using SNAP QC data) estimates 1.8 percent of all SNAP
participants, approximately 753,000 individuals (450,000 individuals
ages 50 to 52, and 302,000 individuals ages 53 to 54) may be
impacted by the age adjustments and be newly subject to the ABAWD
work requirement and time limit because they meet the new definition
of an ABAWD and are not working 20 or more hours per week.
The Department estimates that a small share (about 2.3 percent)
of these individuals will be able to gain or increase their
employment to at least 20 hours per month to retain SNAP
eligibility. The Department based this estimate on the share of
these individuals that are estimated to work at least 15 hours but
less than 20 hours per week. As a result of the increased work
hours, SNAP benefits for these individuals will decrease by an
average of $121 per month in FY 2026. This small share of new
individuals (about 17,000 people in FY 2026) subject to the ABAWD
time limit will not lose SNAP eligibility because of the time limit.
The Department estimates that 33 percent of the remaining
individuals will qualify for an exception from the ABAWD work
requirement and time limit for reasons other
[[Page 34363]]
than the three new exceptions temporarily established by the FRA
(e.g., a physical or mental condition that limits ability to work)
because they are exempt from the SNAP general work requirement for a
reason other than disability.
Finally, the Department estimates that approximately 30 percent
of the remaining individuals ages 50 to 54 will live in areas
covered by a waiver of the time limit and, therefore, will not be
subject to the time limit.
After these adjustments discussed above, in FY 2026 the
Department estimates 345,000 individuals will lose SNAP eligibility
and an average of $272 per month in SNAP benefits due to the change
in the upper age limit. Individuals who lose eligibility due to the
time limit may rejoin SNAP after the expiration of the 36-month
period or sooner by meeting the ABAWD work requirement, though a
2021 USDA study on the ABAWD time limit suggests employment outcomes
are unlikely to improve among those who lose eligibility due to the
time limit. The primary results in the study found that the ABAWD
time limit has a small, statistically significant negative impact on
employment outcomes.\45\ A sensitivity analysis among a smaller
group of time-limited participants in this study showed no
statistically significant impact of the ABAWD time limit on
employment in two States and a small positive impact on employment
in a third State. Therefore, the Department estimates that very few
individuals who lose SNAP eligibility will be able to increase their
work hours to regain SNAP eligibility within the 36-month period,
particularly in light of the barriers adults over the age of 50 can
face in re-entering the job market such as employer age
discrimination, increased likelihood on health challenges, and lack
of training opportunities, among other reasons.\46\
---------------------------------------------------------------------------
\45\ Wheaton, Laura et al. (2021) The Impact of SNAP Able-Bodied
Adults Without Dependents (ABAWD) Time Limit Reinstatement in Nine
States. Prepared by the Urban Institute for the USDA Food and
Nutrition Service, 2021. Available at: https://www.fns.usda.gov/snap/impact-snap-able-bodied-adults-without-dependents-abawd-time-limit-reinstatement-nine.
\46\ Thomassen K, Sundstrup E, Skovlund SV, Andersen LL.
Barriers and Willingness to Accept Re-Employment among Unemployed
Senior Workers: The SeniorWorkingLife Study. Int J Environ Res
Public Health. 2020 Jul 25;17(15):5358. doi: 10.3390/ijerph17155358.
PMID: 32722360; PMCID: PMC7439115.
---------------------------------------------------------------------------
At full implementation in FY 2026, the Department estimates that
benefit losses among 50-to-54-year-olds newly subject to the ABAWD
time limit will represent a 0.94 percent reduction in total annual
SNAP benefit spending (transfers), or about $1.1 billion. The
Department estimates federal transfers to decrease over the nine-
year analysis period of FY 2023 to FY 2031 by a total of $6.5
billion because of this provision.
In addition to the direct impacts discussed above, there are
additional secondary impacts which are difficult to quantify. The
individuals who will lose eligibility for SNAP benefits are likely
to experience hardship through increased food insecurity or poverty.
This, in turn, could have societal impacts through increased
healthcare costs related to increases in food insecurity and poverty
or impacts on other nutrition assistance, including food banks. The
Department notes that while there are studies that describe the
relationships between SNAP, food security, poverty, and health care
costs, these studies do not permit estimation of potential impacts
on transfers specific to the dispersed ABAWD population that might
be affected by this proposed rule.
BILLING CODE 3410-30-P
[[Page 34364]]
[GRAPHIC] [TIFF OMITTED] TP30AP24.007
[[Page 34365]]
BILLING CODE 3410-30-C
New Exceptions
In addition to expanding the group of individuals subject to the
ABAWD work requirement and time limit, the FRA provides new
exceptions from the time limit for individuals experiencing
homelessness, who are veterans, or individuals through age 24 who
were participating in foster care on their 18th birthday (or higher
age if the State offers extended foster care to a higher age). Below
each of these new exceptions is analyzed individually. The impact of
the new exceptions on federal transfers and on SNAP participants
will be itemized within discussion of each exception, while the
aggregate impacts on transfers, federal burden, State agency burden,
and SNAP participant burden will be summarized after the discussion
of each new exception.
Individuals Experiencing Homelessness
Discussion: Prior to the FRA, individuals who were experiencing
homelessness and not meeting the ABAWD work requirement could only
continue to participate in SNAP after accruing three countable
months if the State agency chose to use the State's allotment of
discretionary exemptions to provide the individual with an exception
from the time limit on a month-by-month basis (until the State has
depleted its allotment of discretionary exemptions). A State agency
may also consider an individual experiencing homeless to be ``unfit
for work,'' and thereby exempt from the general work requirement and
thus the ABAWD time limit.
The FRA provides exceptions from the time limit for individuals
experiencing homeless. To consistently implement this provision
nationwide, the Department is proposing to standardize the
definition of a ``homeless individual'' at 7 CFR 271.2 as follows:
``Homeless individual means
(1) An individual who lacks a fixed and regular nighttime
residence, including, but not limited to, an individual who will
imminently lose their primary nighttime residence, provided that
primary nighttime residence will be lost within 14 days, no
subsequent housing has been identified and the individual lacks
support networks or resources needed to obtain housing; or
(2) An individual whose primary nighttime residence is:
(i) A supervised shelter designed to provide temporary
accommodations (such as a welfare hotel or congregate shelter);
(ii) A halfway house or similar institution that provides
temporary residence for individuals intended to be
institutionalized;
(iii) A temporary accommodation for not more than 90 days in the
residence of another individual; or
(iv) A place not designed for, or ordinarily used, as a regular
sleeping accommodation for human beings (a hallway, a bus station, a
lobby or similar places).''
Prior to the FRA, State SNAP agencies were already required to
screen for households experiencing homelessness to identify
households eligible for the homeless shelter deduction. Using SNAP
QC data, the Department estimates that approximately 3.2 percent of
all SNAP participants experience homelessness. However, SNAP
participants subject to the ABAWD time limit are much more likely to
experience homelessness. In the most recent data available to the
Department 20.6 percent of time-limited participants experience
homelessness.\47\
---------------------------------------------------------------------------
\47\ This estimate includes 50-to-54-year-olds newly subject to
the ABAWD work requirement and time limit.
---------------------------------------------------------------------------
In FY 2026 when this provision is fully implemented, the
Department (using SNAP QC data) estimates 1.8 percent of all SNAP
participants, approximately 766,000 individuals (615,000 individuals
ages 18 to 49, and 151,000 individuals ages 50 to 54) experiencing
homelessness may be affected by the new exception from the ABAWD
work requirement and time limit because they meet the definition of
a time-limited participant and are not working 20 or more hours per
week.
The Department estimates that a small share (about 1 percent) of
these individuals will be able to gain or increase their employment
to at least 20 hours per week to retain SNAP eligibility. Compared
to the general population of time-limited participants in SNAP,
fewer participants who are experiencing homelessness are meeting the
work requirement in the QC data. Additionally, individuals
experiencing homelessness can face substantial barriers to gaining
or retaining employment, including poor access to transportation,
poor access to health care, and stigma against individuals
experiencing homelessness. Therefore, the Department believes the
share of time-limited individuals who are experiencing homelessness
that will be able to increase their work hours is likely smaller
than the 2.3 percent observed amongst all time-limited participants
in the SNAP QC data.
The Department estimates that 32 percent of the remaining
individuals will be excepted from the ABAWD work requirement and
time limit for reasons other than the three new exceptions
temporarily established by the FRA (e.g., a physical or mental
condition that limits ability to work) because they are exempt from
the general work requirement for a reason other than disability.
Finally, the Department estimates that approximately 40 percent of
the remaining individuals will live in areas covered by a waiver of
the time limit and, therefore, would not be subject to the time
limit in absence of this provision.
After these adjustments discussed above, in FY 2026 the
Department estimates 309,000 individuals experiencing homelessness
between the ages of 18 and 54 will retain SNAP eligibility beyond 3
months in a 36-month period (averaging to 11 months of benefits
gained per individual per year) and continue receiving an average of
$305 per month, per person, in SNAP benefits because of the new
exception for individuals experiencing homelessness. At full
implementation in FY 2026, this represents a 0.92 percent increase
in total annual SNAP benefit spending (transfers), or about $1.0
billion. The Department estimates federal transfers to increase over
the nine-year period of FY 2023 to FY 2031 by a total of $7.3
billion because of this new exception for individuals experiencing
homelessness.
BILLING CODE 3410-30-P
[[Page 34366]]
[GRAPHIC] [TIFF OMITTED] TP30AP24.008
[[Page 34367]]
BILLING CODE 3410-30-C
Veterans
Discussion: The FRA additionally provides a new exception from
the ABAWD time limit for time-limited participants who are veterans.
No previous unique work requirement exceptions have been applied to
veterans in SNAP. To implement this change, the Department
identified the need to standardize a definition of who is considered
a veteran. The Department proposes to define veteran at 7 CFR
273.34(c)(8) as an individual who, regardless of the conditions of
their discharge or release from, served in the United States Armed
Forces (such as the Army, Marine Corps, Navy, Air Force, Space
Force, Coast Guard, and National Guard), including an individual who
served in a reserve component of the Armed Forces, or served as a
commissioned officer of the Public Health Service, Environmental
Scientific Services Administration, or the National Oceanic and
Atmospheric Administration.
Effect on SNAP Participants: The Department does not collect
information on SNAP applicants' and participants' military service
history, so it is unable to precisely estimate how many SNAP
participants may benefit from the veteran exception. Based on data
from the 2022 ACS, the Department estimates 2.5 percent of SNAP
participants are veterans, but a much smaller share (0.22 percent)
may be veterans who are subject to the ABAWD work requirement and
time limit.
In FY 2026, when the FRA's provisions are fully implemented, the
Department estimates approximately 92,000 individuals (63,000
individuals between the ages of 18 and 49 and 29,000 individuals
ages 50 to 54) are veterans that may be affected by the new
exception to the ABAWD work requirement and time limit because they
meet the definition of a time-limited participant and are likely not
working 20 or more hours per week.
The Department estimates that 32 percent of these individuals
will qualify for an exception from the ABAWD work requirement for
reasons other than the three new exceptions temporarily established
by the FRA (e.g., a physical or mental condition that limits ability
to work) because they are exempt from the SNAP general work
requirement for a reason other than disability.
Finally, the Department estimates that approximately 40 percent
of remaining individuals ages 18 to 49 and 30 percent of the
remaining individuals ages 50 to 54 will live in areas covered by a
geographic waiver of the time limit and, therefore, will not be
subject to the time limit.
After these adjustments discussed above, in FY 2026 the
Department estimates 39,000 individuals who are veterans between the
ages of 18 and 54 will retain SNAP eligibility beyond 3 months in a
36-month period (averaging to 11 months of benefits gained per
individual per year) and continue receiving an average of $264 per
month, per person, in SNAP benefits because of the new exception
from the time limit for veterans. At full implementation in FY 2026,
this represents a 0.10 percent increase in total annual SNAP benefit
spending (transfers), or about $115.0 million. The Department
estimates federal transfers to increase over the nine-year period of
FY 2023 to FY 2031 by a total of $787.6 million as a result of this
new exception.
BILLING CODE 3410-30-P
[[Page 34368]]
[GRAPHIC] [TIFF OMITTED] TP30AP24.009
[[Page 34369]]
BILLING CODE 3410-30-C
Individuals Who Were in Foster Care
Discussion: The third new exception from the time limit
prescribed by the FRA is for SNAP participants aged 24 and under who
were in foster care on their 18th birthday or such higher age as the
State has elected under Sec. 475(8)(B)(iii) of the Social Security
Act. The Department notes that this definition does not require that
an individual was in foster care in the State in which they are
applying for or receiving SNAP benefits.
In creating the implementation guidance, the Department
clarified that ``foster care under the responsibility of a State''
includes foster care programs run by Districts, Territories, or
Indian Tribal Organizations. The Department also clarified that the
exception applies to individuals who are in foster care when they
reach 18 years of age even if they elect to stay in foster care up
to the State's maximum age, as well as individuals aged 18 to 24 who
were in foster care at the time they turned 18 years of age, even if
the individual exits extended foster care before the maximum age.
Effect on SNAP Participants: The Department does not collect
data on SNAP applicants' and participants' history in foster care,
so it is unable to precisely estimate how many individuals will
benefit from the new exception for former foster youth. Based on
information from the Adoption and Foster Care Analysis and Reporting
System (AFCARS) \48\ about how many youth age out of foster care
each year, the Department estimates that there are approximately
99,000 individuals between the ages of 18 and 24 who were in foster
care at their 18th birthday but have since emancipated. Of those
99,000 individuals, the Department estimates that about 35,000 may
be SNAP participants (0.08 percent of all SNAP participants) who are
subject to the ABAWD work requirement and are not otherwise
qualified for an exception. The remaining 64,000 individuals in this
group are assumed to be not eligible for SNAP, already meeting the
ABAWD work requirement, or not subject to the ABAWD work requirement
and time limit (for reasons that can include being a student, having
a child in their household, or having a disability).
---------------------------------------------------------------------------
\48\ Per ACF guidance to States, States must include in AFCARS
all children in foster care under the responsibility for placement
or care of the State title IV-B/IV-E agency, which includes
Unaccompanied Refugee Minors. More detail can be found at: https://www.acf.hhs.gov/orr/policy-guidance/clarification-unaccompanied-refugee-minor-urm-eligibility-chafee-independent.
---------------------------------------------------------------------------
In FY 2026, among these 35,000 individuals, the Department
estimates that approximately 40 percent will live in areas that are
covered by a geographic waiver of the time limit, and therefore will
not be subject to the time limit. Therefore, the Department
estimates about 21,000 individuals who are former foster youth will
retain SNAP eligibility beyond 3 months in a 36-month period
(averaging to 11 months of benefits gained per individual per year)
and continue receiving an average of $262 per month in FY 2026
because of this new exception. In FY 2026, this represents a 0.05
percent increase in total annual SNAP benefit spending (transfers),
or about $60.0 million. The Department estimates federal transfers
to increase over the nine-year period of FY 2023 to FY 2031 by a
total of $425.4 million as a result of this new exception.
BILLING CODE 3410-30-P
[[Page 34370]]
[GRAPHIC] [TIFF OMITTED] TP30AP24.010
[[Page 34371]]
BILLING CODE 3410-30-C
Combined Impacts for All Changes to Exceptions--Federal Transfers
As a result of this proposed rule, the estimated net impact of
the change in the age-based exceptions and the three new exceptions
is an average net increase in SNAP participation of about 55,000
individuals per year when fully implemented in FY 2026. In FY 2026,
this includes 345,000 participants losing eligibility, 369,000
participants retaining eligibility, and about 30,000 new
participants.\49\ The Department estimates that a small number of
new participants (ages 18-49) will newly begin receiving SNAP
benefits due to the new exceptions allowing individuals who are
experiencing homelessness, are veterans, or were formerly in the
foster care system to participate in SNAP who otherwise may have
thought they would be ineligible due to the ABAWD work requirement
and time limit. The Department estimates federal transfers to
increase over the nine-year period of FY 2023 to FY 2031 by a total
of $2.8 billion as a result of the change in the age-based
exceptions and the new exceptions in the FRA. On an annual basis,
federal transfers are estimated to increase by an average of $306.5
million.
---------------------------------------------------------------------------
\49\ This estimate of about 30,000 new participants assumes an
increase of roughly 1 percent in the baseline number of time-limited
adults ages 18 to 49. This is the Department's best estimate in the
absence of better data.
---------------------------------------------------------------------------
In addition to the direct impacts discussed above, there are
additional secondary impacts which are difficult to quantify. The
individuals who will retain eligibility for SNAP benefits are less
likely to experience increased food insecurity or poverty than if
they had lost access to SNAP benefits in absence of the new
exceptions provided by the FRA. This in turn could have societal
impacts through decreased healthcare costs related to food
insecurity and poverty or impacts on other nutrition assistance,
including food banks. The Department notes that while there are
studies that describe the relationships between SNAP, food security,
poverty, and health care costs, these studies do not permit
estimation of potential impacts on transfers specific to the
dispersed ABAWD population that might be affected by this proposed
rule.
BILLING CODE 3410-30-P
[[Page 34372]]
[GRAPHIC] [TIFF OMITTED] TP30AP24.011
[[Page 34373]]
BILLING CODE 3410-30-C
Combined Impacts for All Changes to Exceptions--Household Burden Costs
The Department expects there to be an increased time burden for
50-to-54-year-old SNAP participants who are newly considered to be
subject to the ABAWD time limit. These individuals will be required
to report work hours and review and respond to notices informing
them of the ABAWD work requirement and time limit. Based on
estimates provided in the burden table prepared for the proposed
rule's information collection request, an estimated 366,751
individuals will experience an annual 15.5-minute burden related to
these activities for total time of 94,744 hours annually and an
annual cost of $2.3 million in FY 2026. In addition, 317,000
individuals within this group will also need to review and respond
to Notices of Adverse Action (NOAAs) when they lose SNAP eligibility
due to not meeting the work requirement, estimated to be an
additional 4-minute burden per person for a time of 21,133 hours
annually and a total annual cost of $502,616 in FY 2026.
Upon sunset of this provision on October 1, 2030, the upper
limit of ages subject to the ABAWD work requirement will reverse to
age 49 and the three new exceptions will be removed, pending any
future legislative updates. Any 50-to-54-year-old participants who
were subject to the time limit will stop accruing any countable
months immediately at October 1, 2030. The Department expects 50-to-
54-year-old participants who lost eligibility due to the time limit
to return to the program gradually beginning in FY 2031.
However, the Department is unable to estimate whether some
eligible individuals will not return to the program due to being
unaware of changes in the work requirement rules, stigma, or any
other reason. As individuals who had not been subject to the time
limit during the duration of this rule due to the three new
exceptions within the rule become subject to the time limit at their
next recertification or screening during FY 2031, the Department
estimates a one-time burden on 490,271 participants of 15.5 minutes
related to work reporting administrative activities for a total of
$3.4 million in FY 2031. While a portion of this group is expected
to meet the work requirement, receive an exemption, or meet a
different exception from the time limit, approximately 367,703
individuals are expected to have an additional 4-minute burden to
review and respond to NOAAs, at a one-time total approximate cost of
$653,188 in FY 2031.
Combined Impacts for All Changes to Exceptions--State Agency
Administrative Costs
Implementation: State agencies began incurring administrative
costs to implement the FRA's changes to exceptions from the ABAWD
time limit in FY 2023 through various administrative activities,
such as updating State eligibility systems; preparing for and
executing worker training; updating relevant applications, notices,
and forms; updating State SNAP regulations; and spending additional
time with program participants to discuss program changes in
relation to the individual's case.
The State administrative burden for initial implementation
activities for all provisions of the proposed rule is estimated to
be approximately 473,857 hours, totaling $10.3 million for start-up
activities in FYs 2023 and 2024 for 53 State agencies, after 50
percent federal cost reimbursement. The Department is unable to
disaggregate the portion of that cost that applies specifically to
each provision of the proposed rule.
Ongoing: On an ongoing basis, State agencies will need to
discuss the ABAWD work requirement, verify hours worked, and provide
appropriate noticing to individuals who are newly subject to the
ABAWD work requirement and time limit (estimated at 366,751
participants). This is estimated to take 15.5 minutes per individual
and cost an estimated $1.6 million in FY 2026, after 50 percent
federal cost reimbursement. The State agency will incur an
additional 4-minute burden for each of the estimated 317,000
participants who will need to be issued Notices of Adverse Action
(NOAAs) due to not meeting the work requirement for a total annual
cost of $359,285 in FY 2026, after 50 percent federal cost
reimbursement.
Sunsetting: For the sunsetting of this provision on October 1,
2030, the Department estimates that State agencies will again need
to complete eligibility system updates; train eligibility workers;
update relevant applications, notices, and forms; update State SNAP
regulations; and spend time with program participants who will be
impacted by this change. The sunsetting administrative costs are
estimated to be a total one-time burden of 625,024 hours, equating
to about $15.0 million for 53 State agencies in FYs 2030 and 2031
after 50 percent federal cost reimbursement.
Combined Impacts for All Changes to Exceptions--Federal Administrative
Costs
Implementation: In addition to the federal transfer effects
previously discussed, the Department expects it will take the
Federal Government approximately 90 hours to make all administrative
updates pertaining to implementation of this rule, resulting in an
estimated one-time total expense of $6,760 in FY 2024. However, the
Department is unable to disaggregate the portion of those 90 hours
that apply specifically to each provision of the proposed rule.
Additionally, the federal share of State agencies' administrative
expenses to implement all provisions of the proposed rule is
estimated to be a total one-time cost of $10.3 million for start-up
activities in FYs 2023 and 2024. Similarly, the Department is unable
to disaggregate the portion of that cost that applies specifically
to each provision of the proposed rule.
Ongoing: To provide administrative support throughout the
duration of the FRA's changes to exceptions from the ABAWD time
limit, the Department estimates ongoing administrative costs to the
Federal Government to be on average $32.2 million annually during
years of full implementation (FY 2026-FY 2030) for the federal share
of State agencies' ongoing administrative expenses.
Sunsetting: When the FRA exception provisions sunset on October
1, 2030, the Department estimates the federal administrative burden
in FY 2030 to be a one-time cost of $5,813, and a one-time cost of
$15.0 million in FYs 2030 and 2031 for the Federal share of State
agencies' administrative expenses.
C. Requirement To Adjust the Number of Discretionary Exemptions
Available to State Agencies Each Year
Discussion: The FRA reduces the allotment of discretionary
exemptions State agencies will accrue in each fiscal year. Prior to
the FRA, each fiscal year each State agency accrued an allotment of
one-month exemptions equal to 12 percent of its at-risk time-limited
participants; this FRA provision lowers that rate to 8 percent,
beginning with the allotment State agencies have available for use
in FY 2024. The provision also restricts each State's ability to
carryover unused discretionary exemptions between fiscal years from
all unused discretionary exemptions to only those allotted during
the prior fiscal year. Starting in FY 2026, State agencies will only
carryover unused discretionary exemptions earned for the previous
fiscal year, not including historical balances.
Effect on SNAP Participants: It is difficult to predict the
precise impacts of these two changes within each State, as well as
across States. If a State agency was consistently using a high
proportion of discretionary exemptions under the prior allotment of
12 percent, a small number of SNAP participants in that State may no
longer receive a discretionary exemption and therefore lose SNAP
eligibility as a result of the ABAWD time limit. If a State agency
was not using a high proportion of their discretionary exemptions
prior to the FRA change, this change may have no effect on SNAP
participants in that State. The most recent data available to
Department indicate that State agencies typically use less than an 8
percent allotment of discretionary exemptions. Between FY 2016 and
FY 2019, only five instances were identified in which a State did
not exceed their annual allotment, but used more exemptions than
they would have earned for the fiscal year, assuming an allotment
based on 8 percent of covered individuals.\50\ As a result, this
analysis scores the provision to lower allotments to 8 percent of
covered individuals as having, at most, a nominal effect on SNAP
benefit spending (transfers).
---------------------------------------------------------------------------
\50\ Based on State agency-reported data on discretionary
exemption usage. FY 2016-FY 2019 is used as the most recent period
of data available as these are the most recent years in which State
agencies used discretionary exemptions and during which the time
limit was not waived nationwide by FFCRA.
---------------------------------------------------------------------------
However, those State agencies that have exceeded an 8 percent
allotment have tended to use many more exemptions than they had
accrued for the relevant fiscal year. In other words, those States
drew upon their banks of carried over exemptions. In the FY 2016-FY
2019 period, there were 33 instances of State agencies using carried
over exemptions. Over those 33 instances, a total of 832,048
``banked'' exemptions were used. Given that one exemption permits
one time-limited participant to participate in SNAP for one
additional month, this equates to
[[Page 34374]]
approximately 69,337 individuals gaining a full year of SNAP
participation (832,048 divided by 12 months) over the four-year
period, or 17,334 individuals annually, on average. The Department
does not have information on why States opted to use carried over
exemptions in each of these cases. However, State agencies are known
to use discretionary exemptions to exempt individuals from the time
limit in areas that have been affected by a natural disaster or to
mitigate the effects of an area losing coverage by a waiver of the
time limit.
Beyond FY 2025, State agencies will no longer carryover unused
exemptions indefinitely, which will reduce some State agencies'
banks of available exemptions. As a result, State agencies may have
reduced ability to use discretionary exemptions to extend time-
limited individuals' SNAP participation in similar scenarios.
However, the Department is unable to predict how many such scenarios
could occur in future years and how a State agency would choose to
use discretionary exemptions, nor how many individuals subject to
the ABAWD time limit may be affected.
In FY 2024 and FY 2025, the Department anticipates that State
agency application of discretionary exemptions could change as State
agencies attempt to ``spend down'' discretionary exemptions that
will otherwise expire. This ``use-or-lose'' scenario could
incentivize some State agencies to use more discretionary exemptions
in FYs 2024 and 2025, which could result in fewer individuals losing
SNAP eligibility due to the ABAWD time limit in these two fiscal
years. However, given that State agencies typically under-use the
discretionary exemptions available to them, the Department does not
expect measurable changes to SNAP participation or transfers to
occur.
Effect on State Agencies: The implementation of this provision
may require some State agencies to reconsider the State's approach
to using discretionary exemptions, which could add burden hours for
these State agencies. We are unable to estimate how many State
agencies may be affected, but estimate the administrative burden to
be nominal.
Effect on Federal Spending: The Department estimates nominal
changes in federal transfers because of reductions in discretionary
exemption allotments, from 12 percent to 8 percent, and restrictions
on carryover of unused exemptions beyond one fiscal year.
While a decrease in available discretionary exemptions would
mean a federal transfer savings if States consistently used all
discretionary exemptions available to them each year prior to the
reduction, State agencies' past patterns of discretionary exemption
usages suggest they will not fully apply all discretionary
exemptions available to them.
As previously discussed in the analysis of changes to
exceptions, the Department expects it will take the Federal
Government approximately 90 hours to make all administrative updates
pertaining to implementation of this rule, resulting in an estimated
one-time total expense of $6,760 in FY 2024. However, the Department
is unable to disaggregate the portion of those 90 hours that apply
specifically to each provision of the proposed rule.
Additionally, as previously discussed, the federal share of
State agencies' administrative expenses to implement all provisions
of the proposed rule is estimated to be a total one-time cost of
$10.3 million in FYs 2023 and 2024. Similarly, we are unable to
disaggregate the portion of that cost that applies specifically to
each provision of the proposed rule. This provision is not expected
to generate any ongoing administrative costs to the Federal
Government. Finally, there are no sunsetting administrative costs
pertaining to this provision, as it is enacted on a permanent basis.
D. Screening
Discussion: This provision would require State agencies to
evaluate individuals to determine if they are subject to the time
limit or if they qualify for an exception. This includes determining
if an individual is exempt from the general work requirement, as
individuals are not subject to the time limit if they meet an
exemption from the general work requirement. The Department refers
to this process as ``screening.'' Screening would be required at
initial and recertification application and State agencies would be
prohibited from assigning countable months to an individual if the
State agency has not screened them for exceptions, including the new
exceptions established by the FRA. If an individual subject to the
time limit has a change in circumstances that result in them now
meeting an exception, the State agency cannot assign a countable
month if the information is not questionable. This is a longstanding
expectation of State agencies that the Department proposes to
outline at 7 CFR 271.2, 273,7(b)(3), and 273.24(k) to ensure
countable months are not applied inappropriately.
Effect on SNAP Participants: This provision is intended to
ensure that SNAP participants are not incorrectly deemed ineligible
for SNAP for not meeting the ABAWD work requirement, without first
requiring the State agency to determine that they are not eligible
for any exceptions. The Department does not currently have
information available that would permit it to estimate how many
individuals may retain SNAP eligibility because of more effective
screening for exceptions from the time limit and exemptions from the
SNAP work requirements. Among those who do retain eligibility as a
result of this provision, the Department estimates each individual
will continue to receive an average of $252 in monthly SNAP benefits
(25.9 percent of the TFP in FY 2024).
Aside from benefit impacts of this provision, SNAP participants
are expected to bear an administrative burden due to increased
screening. FNS estimates that screening for exceptions from the
ABAWD work requirement and screening for exemptions from the general
work requirement each require approximately 4 minutes of a
participant's time. Some participants will only incur a 4-minute
burden because they are only subject to the general work
requirement. Individuals subject to the ABAWD work requirement are
also subject to the general work requirement and therefore will
incur 8 minutes of burden, per screening. In total, screening will
affect approximately 19.0 million SNAP participants and equal
approximately 1.7 million additional hours annually in FY 2026. This
would equate to an estimated annual burden of $40.2 million across
all individuals in FY 2026. Because this provision of the rule does
not sunset, there are no expected burden costs of sunsetting this
provision.
Effect on State Agencies: State agencies are expected to bear
the administrative cost of updating their internal screening
policies and practices; train workers on new procedures; and carry
out any other administrative steps necessary to implement this
provision. As discussed previously, the State administrative burden
for initial implementation activities for all provisions of the
proposed rule is estimated to be approximately 473,857 hours,
totaling $10.3 million for start-up activities (including system
changes) in FYs 2023 and 2024 for 53 State agencies, after 50
percent federal cost reimbursement. The Department is unable to
disaggregate the portion of that administrative cost that applies
specifically to each provision of the proposed rule.
Due to the additional estimated 4 or 8 minutes of time spent
with participants during the screening process, explained above, the
annual projected administrative burden to State agencies is 1.7
million hours, or approximately $28.8 million annually in FY 2026
after 50 percent federal cost reimbursement. Because this provision
of the rule does not sunset, there are no expected administrative
costs of sunsetting this provision.
Effect on Federal Spending: Federal administrative burden
associated with implementing the final rule have been discussed in
previous sections of the RIA. The federal share of State agencies'
administrative expenses to comply with this update is estimated to
be approximately $28.8 million annually in FY 2026 for 53 State SNAP
agencies. There are no sunsetting administrative costs pertaining to
this provision, as it is enacted on a permanent basis.
[[Page 34375]]
V. Distributive Impacts
A. Differences in State-Level Impacts
Effects of the FRA's provisions in the proposed rule vary by
State due to differences in demographics, as well as differences in
how States administer SNAP. For example, States that regularly
qualify for and request waivers of the ABAWD time limit will have
smaller portions of their participants affected by changes to the
ABAWD work requirement. The provision to make 50-to-54-year-olds
subject to the ABAWD work requirement and time limit will have
slightly different effects on States' participants, depending on the
share of their participants that falls into the newly expanded ABAWD
age range. While 2 percent of all SNAP participants are estimated to
fall into the expanded 50-to-54-year-old age range of time-limited
participants, the share of each State's SNAP participants varies
from 0.5 percent in Nebraska, to 4.8 percent in the U.S. Virgin
Islands. See Appendix Table A for estimates for each State.
Similarly, the distribution of individuals experiencing
homelessness across the U.S. is not uniform. Information available
from the U.S. Department of Housing and Urban Development (HUD)
indicates that the homeless population in the U.S. is concentrated
in a handful of States. The January 2023 Point-in-Time estimates
\51\ of homeless individuals from HUD indicate that over half of all
individuals experiencing homelessness in the U.S. (56.8 percent)
lived in just five States: California, New York, Florida,
Washington, and Texas. California, alone, accounted for 27.8 percent
of all individuals experiencing homelessness.
---------------------------------------------------------------------------
\51\ Available here: https://www.huduser.gov/portal/datasets/ahar/2023-ahar-part-1-pit-estimates-of-homelessness-in-the-us.html.
---------------------------------------------------------------------------
The share of each State's SNAP participants who are experiencing
homelessness, or are time-limited participants and experiencing
homelessness, also varies. Nationally, about 3.2 percent of SNAP
participants are experiencing homelessness, according to pre-
pandemic FY 20 SNAP QC data. More specifically, about 1.9 percent of
SNAP participants are considered subject to the ABAWD work
requirement and experiencing homelessness. The State with the lowest
share of time-limited participants experiencing homelessness is
Mississippi (0.1 percent) and the State with the highest share is
California (5.9 percent). See Appendix Table B for estimates for
each State.
It should be noted that the accuracy of the estimates in this
section can be affected by the size of a State's caseload. States
with smaller caseloads also have smaller SNAP QC data samples, which
can affect the reliability of State-level estimates based on the QC
data.
B. Differences Among Subgroups
While the ABAWD work requirement and time limit do not apply to
individuals who are considered disabled or elderly by SNAP rules,
the Department acknowledges that some SNAP participants who are
elderly or disabled may nevertheless be affected by the provisions
in this proposed rule. A small share of individuals subject to the
ABAWD work requirement and time limit (8.3 percent) are in a SNAP
household with an elderly or disabled person. If these individuals
lose eligibility because of the ABAWD time limit, their household
will experience a decrease in total SNAP benefits available to the
household. The provisions included in this proposed rule will not
affect SNAP households with children, as individuals subject to the
ABAWD work requirement, by definition, do not have children in their
SNAP household.
Individuals affected by the provisions in the proposed rule are
more likely to be male, when compared all adults between ages 18 and
54 in the SNAP caseload (50 percent, compared to 35 percent). While
participants subject to the ABAWD work requirement and time limit
between ages 18 and 54 are equally divided between males and
females, those who are over age 50 are more likely to be female (54
percent) and those who experience homelessness are more likely to be
male (61 percent). See Table 9, below, for estimates of the sex of
SNAP participants in several subgroups affected by the proposed
rule's provisions. The Department does not have data on the sex of
SNAP participants who are subject to the ABAWD work requirement and
time limit who are also veterans or former foster youth.
[GRAPHIC] [TIFF OMITTED] TP30AP24.012
The distribution of races and Hispanic ethnicity among SNAP
participants affected by the proposed rule is generally similar to
the distribution among all SNAP participants ages 18 to 54, with the
exception of homeless time-limited participants. SNAP participants
subject to the ABAWD work requirement ages 18 to 54 have roughly the
same likelihood of being white or black (42 percent and 27 percent,
respectively) as all SNAP participants ages 18 to 54 (42 percent and
26 percent). However, SNAP participants who are subject to the ABAWD
work requirement and experiencing homeless are less likely to be
white (36 percent) than SNAP participants ages 18 to 54 (42
percent), and more likely to be black or Hispanic or Latino of any
race (30 percent and 17 percent, respectively) compared to all SNAP
participants ages 18 to 54 (26 percent and 12 percent). It is
important to note that the Department does not have data on the race
or ethnicity of 14 percent of SNAP participants ages 18 to 54, which
could affect these estimates. See Table 10, below, for estimates of
the race and ethnicity of SNAP participants in several subgroups
affected by the proposed rule's provisions. The Department does not
have data on the race or ethnicity of SNAP participants who are
subject to the ABAWD work requirement who are also veterans or
former foster youth.
[[Page 34376]]
[GRAPHIC] [TIFF OMITTED] TP30AP24.013
VI. Uncertainties
A. Effectiveness of Screening for New Exceptions
In this analysis, the Department assumes that all individuals
subject to the ABAWD work requirement are correctly screened for
qualifying exceptions. For example, we assume that all individuals
who are experiencing homelessness and subject to the ABAWD work
requirement are correctly excepted from the time limit. Human error
is likely to result in some share of individuals not receiving an
exception for which they qualify, and it is also possible that some
participants will not disclose information that could lead to an
exception (for example, a participant may not want to disclose their
experience with the foster care system). As a result, the count of
SNAP participants who lose eligibility or retain eligibility due to
the proposed rule could be higher or lower in reality. However,
given that the Department estimates that the share of individuals
losing eligibility is very similar to the share receiving one of the
three new exceptions, we do not anticipate that the overall net
transfer impact of the rule would change significantly.
B. ABAWD Waiver Coverage in Future Years
The number of SNAP participants who are subject to the ABAWD
time limit at any given time is affected by the extent of geographic
waivers of the ABAWD time limit. In this RIA, we assume the national
unemployment rate will remain low through FY 2031.
As a result, we also assume that fewer SNAP participants (about
40 percent) will live in an area covered by a waiver of the time
limit than is true during economic downturns, like the Great
Recession or the COVID-19 public health emergency. If a higher share
of individuals live in an area where the time limit is waived, then
both transfer increases and decreases will be reduced. Fewer 50-to-
54-year-olds would lose eligibility due to the time limit, reducing
transfer savings. Conversely, if individuals who receive an
exception from the time limit due to being a veteran, homeless, or a
qualifying former foster youth live in an area with a waiver of the
time limit, there would be no transfer increase associated with
their retaining eligibility because of an exception.
Alternatively, if a lower share of individuals live in an area
where the time limit is waived, then both transfer increases and
decreases would rise. However, given that the Department estimates
that the share of individuals losing eligibility is very similar to
the share of individuals retaining eligibility, we do not anticipate
that the overall net transfer impact of the rule would change
significantly.
C. Number of Individuals Who Will Be Eligible for New Exceptions
for Veterans and Former Foster Youth
Unlike homelessness, the Department does not gather data on
whether SNAP applicants or participants are veterans or former
foster youth. Therefore, we are unable to precisely estimate how
many individuals who may be subject to the ABAWD work requirement
may benefit from these two new exceptions. This RIA contains the
Department's best estimates of how many individuals may be affected.
If the number of individuals who receive one of these two new
exceptions is higher than anticipated, there would be a slight
increase in transfers. If the number is lower than anticipated,
there would be a slight decrease in transfers. Given that the
Department believes time-limited individuals who are veterans or
former foster youth up to age 24 make up a small portion of SNAP
[[Page 34377]]
participants (cumulatively, approximately 0.22 percent of
participants), we do not expect this uncertainty to result in
significant changes to the net transfer impact associated with the
proposed rule.
VII. Sensitivity Analysis
Table 11, below, illustrates how the RIA's estimates might
change if different assumptions regarding the uncertainties
discussed above were used. Sensitivity analysis estimates were
produced using the same general methodology as the primary estimates
in the RIA. Alternative assumptions used for the sensitivity
analysis include:
A. Assume 10 percent of estimated groups receiving a new
exception are not appropriately identified during screening and do
not receive the exception.
B. Assume employment outcomes are worse than anticipated and
waiver coverage settles at 10 percentage points higher than
projected.
C. Assume employment outcomes are better than anticipated and
waiver coverage settles at 10 percentage points lower than
projected.
Table 11 breaks down each scenario's impact on overall federal
transfers during the first year of full implementation (FY 2026), as
well as over the nine-year analysis period of this RIA, FY 2023
through FY 2031.
[GRAPHIC] [TIFF OMITTED] TP30AP24.014
The proposed rule would result in a 0.27 percent increase in
total SNAP benefit spending over the nine-year period of analysis,
or $268.1 million in FY 2026 and $2.8 billion over FY 2023-FY 2031.
If screening for the three new exceptions in this rule were to be
conducted with only 90 percent efficacy (thereby reducing the number
of those excepted by 10 percent) as demonstrated in Scenario A,
total SNAP benefit spending would increase to a smaller degree, by
0.18 percent. In FY 2026, Scenario A would decrease the cost of the
proposed rule by $132.2 million, compared to the primary estimates
in this RIA. Over the nine-year period FY 2023-FY 2031, Scenario A
would decrease the cost of the proposed rule by approximately $922.6
million, compared to the primary estimates in this RIA. The smaller
increase in transfers under Scenario A is due to fewer time-limited
participants retaining SNAP eligibility as a result of the FRA's
three new exceptions from the time limit.
Analyses of Scenarios B and C indicate that a 10-percentage
point increase or decrease to the share of individuals covered under
waivers of the time limit would result in a corresponding $53.8
million increase or decrease in overall SNAP spending in reference
year FY 2026 ($529.2 million over FY 2023-FY 2031) compared to the
primary estimates in this RIA. This represents approximately a 0.05
percentage-point increase or decrease in transfer spending.
VIII. Alternatives
With one exception, the policy changes analyzed in this RIA were
prescribed by the FRA; therefore, assessment of policy alternatives
is limited. The proposed rule would implement changes to exceptions
form the ABAWD work requirement and time limit in a way that closely
adheres to the FRA's statutory language. In order to provide needed
guidance to State agencies implementing the FRA's changes to the
ABAWD work requirement, the Department has provided definitions of
who qualifies for the FRA's new exceptions from the time limit for
individuals experiencing homelessness, veterans, and former foster
youth up to age 24 in this proposed rulemaking. However, these
definitions do not expand upon the categories included in the FRA.
The Department has determined the clarification of definitions
of who qualifies for the FRA's new exceptions would have limited
effect on the welfare effects of the rule. The Department did not
consider alternative definitions for these groups because it sought
to align its definitions with the terms used in the FRA and with
definitions used by federal agencies who are experts in serving
those groups, to the extent allowable by the Food and Nutrition Act
of 2008, as amended.
The Department is proposing one addition to the FRA's required
provisions to amend the regulations to clarify requirements for
screening individuals for exceptions from the work requirements and
time limit. This added provision would require State agencies to
screen for exceptions at initial and recertification application and
prohibits them from assigning countable months to an individual if
the State agency has not screened the individual for exceptions.
Further, it also addresses State agency responsibilities when an
individual experiences a change in circumstances during the
certification period that results in a change in exception status.
The Department considered finalizing the proposed rule without
this screening requirement. Omitting the screening requirement would
not have a measurable effect on transfers, but would reduce State
administrative expenses, household burden expenses, and federal
administrative costs; the precise reduction in administrative costs
for this provision alone cannot be disaggregated from the projected
administrative costs.
However, in the absence of regulations clarifying screening
requirements, questions from State agencies arose during FRA
implementation of how and when it may identify if an individual
meets one of the new exceptions from the time limit. As such, the
Department determined that standardizing national screening
practices was necessary to improve consistency in program operations
and provide quality customer service in line with the December 13,
2021, Executive Order on Transforming Federal Customer Experience
and Service Delivery to Rebuild Trust in Government. To effectively
ensure screening practices are standard across State agencies, the
Department is proposing to require State agencies to first screen
for exemptions from the general work requirement, as this is an
important first step in evaluating which, if any, work requirements
apply to an individual, since individuals are not subject to the
time limit if they meet an exemption from the general work
requirement. The proposed rule therefore clarifies requirements on
both screening for the
[[Page 34378]]
general work requirement, as well as to determine whether an
individual is subject to the time limit, in order to ensure uniform
national practices.
The Department did not consider any other alternatives for
inclusion in the proposed rule.
BILLING CODE 3410-30-P
[[Page 34379]]
[GRAPHIC] [TIFF OMITTED] TP30AP24.015
[[Page 34380]]
[GRAPHIC] [TIFF OMITTED] TP30AP24.016
[[Page 34381]]
[GRAPHIC] [TIFF OMITTED] TP30AP24.017
[[Page 34382]]
[GRAPHIC] [TIFF OMITTED] TP30AP24.018
[FR Doc. 2024-08338 Filed 4-29-24; 8:45 am]
BILLING CODE 3410-30-C