    Food Stamp Program: FNS Could Improve Guidance and Monitoring to
    Help Ensure Appropriate Use of Noncash Categorical Eligibility
    (28-MAR-07, GAO-07-465).

    In fiscal year 2005, the Department of Agriculture's (USDA) Food
    Stamp Program served over 25 million individuals per month, on
    average, providing over $28 billion in benefits for the year. To
    reduce the administrative burden on state agencies, current food
    stamp regulations allow households that receive or are authorized
    to receive Temporary Assistance for Needy Families (TANF) noncash
    services to obtain automatic eligibility for food stamps, known
    as categorical eligibility. TANF noncash services include any
    TANF noncash or in-kind benefits, such as child care and
    transportation aid. Under categorical eligibility, households
    must apply to determine if they will receive any food stamp
    benefits. The application process for categorically eligible food
    stamps is the same as for regular food stamps, except that
    caseworkers apply the different income and asset limits for the
    TANF noncash services, or those imposed by the state. Under
    current food stamp regulations, states must confer categorical
    eligibility for individuals receiving, or authorized to receive,
    TANF noncash services that are funded with more than 50 percent
    federal or state maintenance of effort (MOE) funds and serve
    certain TANF purposes. In addition, states have the option to
    confer categorical eligibility using TANF noncash services funded
    with less than 50 percent federal or state funds. States are
    required to determine that individuals are eligible for a TANF
    noncash service and notify them of this determination before
    conferring categorical eligibility, but individuals are not
    required to receive these services. USDA's Food and Nutrition
    Service (FNS), which administers the Food Stamp Program, is not
    required to track how states are implementing categorical
    eligibility, but it does sporadically collect information from
    the states on the nature and funding of the services used to
    confer categorical eligibility. The Administration has proposed
    eliminating TANF noncash categorical eligibility for food stamps,
    and the Congressional Budget Office has estimated that about
    280,000 participants would no longer be eligible for food stamps
    in fiscal year 2008 if the proposal is implemented. Also, because
    food stamp eligibility confers automatic eligibility for other
    nutrition programs, such as the National School Lunch Program,
    there is some question as to how the elimination of TANF noncash
    categorical eligibility would affect the recipients of other
    nutrition programs. In this context, Congress asked us to review
    the implementation of TANF noncash categorical eligibility and
    examine the potential effect of its proposed elimination.
    Specifically, Congress asked us to answer the following
    questions: (1) How have states implemented categorical
    eligibility for TANF noncash recipients? (2) How do the income
    and asset levels of TANF noncash food stamp recipients compare to
    those of TANF cash food stamp recipients? (3) What is the
    potential effect of eliminating TANF noncash categorical
    eligibility on Food Stamp Program participation, administration,
    and state administrative costs?
    -------------------------Indexing Terms-------------------------
    REPORTNUM:   GAO-07-465
        ACCNO:   A67386
      TITLE:     Food Stamp Program: FNS Could Improve Guidance and
    Monitoring to Help Ensure Appropriate Use of Noncash Categorical
    Eligibility
         DATE:   03/28/2007
      SUBJECT:   Disadvantaged persons
    	     Eligibility criteria
    	     Eligibility determinations
    	     Food relief programs
    	     Income statistics
    	     Policy evaluation
    	     Program management
    	     State-administered programs
    	     Program implementation
    	     Food Stamp Program
    	     HHS Temporary Assistance for Needy
    	     Families Program

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    ******************************************************************
    GAO-07-465

         * [1]Survey of State Food Stamp Administrators
         * [2]Data on TANF Categorically Eligible Food Stamp Households
         * [3]State Site Visits
         * [4]GAO Contact
         * [5]Staff Acknowledgments
         * [6]GAO's Mission
         * [7]Obtaining Copies of GAO Reports and Testimony

              * [8]Order by Mail or Phone

         * [9]To Report Fraud, Waste, and Abuse in Federal Programs
         * [10]Congressional Relations
         * [11]Public Affairs

    Report to the Committee on Agriculture, Nutrition, and Forestry, U.S.
    Senate

    United States Government Accountability Office

    GAO

    March 2007

    FOOD STAMP PROGRAM

    FNS Could Improve Guidance and Monitoring to Help Ensure Appropriate Use
    of Noncash Categorical Eligibility

    GAO-07-465

    Contents

    Letter 1

    Appendix I Briefing Slides 7
    Appendix II Objectives, Scope, and Methodology 44
    Appendix III State Vehicle Rule Choices and Descriptions 47
    Appendix IV Other Nutrition Programs 51
    Appendix V Nature of TANF Noncash Services Used to Confer Categorical
    Eligibility for Food Stamps 56
    Appendix VI Eligibility Criteria of TANF Noncash Services Used to Confer
    Categorical Eligibility 60
    Appendix VII State-by-State Comparison of TANF Noncash and TANF Cash
    Categorically Eligible Households 70
    Appendix VIII State-by-State Household Characteristics of TANF Noncash
    Categorically Eligible Food Stamp Households 76
    Appendix IX GAO Contact and Staff Acknowledgments 119
    Related GAO Products 120

    Abbreviations

    CACFP Child and Adult Care Food Program
    CSFP Commodity Supplemental Food Program
    FNS Food and Nutrition Service
    FSP Food Stamp Program
    HHS U.S. Department of Health and Human Services
    MOE maintenance of effort
    NSLP National School Lunch Program
    SBP School Breakfast Program
    SFMNP Senior Farmers' Market Nutrition Program
    SMP Special Milk Program
    TANF Temporary Assistance for Needy Families
    TEFAP The Emergency Food Assistance Program
    USDA U.S. Department of Agriculture
    WIC Special Supplemental Nutrition Program for Women, Infants, and
      Children

    This is a work of the U.S. government and is not subject to copyright
    protection in the United States. It may be reproduced and distributed in
    its entirety without further permission from GAO. However, because this
    work may contain copyrighted images or other material, permission from the
    copyright holder may be necessary if you wish to reproduce this material
    separately.

    United States Government Accountability Office
    Washington, DC 20548

    March 28, 2007

    The Honorable Tom Harkin
    Chairman
    The Honorable Saxby Chambliss
    Ranking Republican Member
    Committee on Agriculture, Nutrition, and Forestry
    United States Senate

    In fiscal year 2005, the Department of Agriculture's (USDA) Food Stamp
    Program served over 25 million individuals per month, on average,
    providing over $28 billion in benefits for the year. To reduce the
    administrative burden on state agencies, current food stamp regulations
    allow households that receive or are authorized to receive Temporary
    Assistance for Needy Families (TANF) noncash services to obtain automatic
    eligibility for food stamps, known as categorical eligibility.^1 TANF
    noncash services include any TANF noncash or in-kind benefits, such as
    child care and transportation aid.^2 Under categorical eligibility,
    households must apply to determine if they will receive any food stamp
    benefits. The application process for categorically eligible food stamps
    is the same as for regular food stamps, except that caseworkers apply the
    different income and asset limits for the TANF noncash services, or those
    imposed by the state.^3

    Under current food stamp regulations, states must confer categorical
    eligibility for individuals receiving, or authorized to receive, TANF
    noncash services that are funded with more than 50 percent federal or
    state maintenance of effort (MOE) funds and serve certain TANF purposes.
    In addition, states have the option to confer categorical eligibility
    using TANF noncash services funded with less than 50 percent federal or
    state funds. States are required to determine that individuals are
    eligible for a TANF noncash service and notify them of this determination
    before conferring categorical eligibility, but individuals are not
    required to receive these services. USDA's Food and Nutrition Service
    (FNS), which administers the Food Stamp Program, is not required to track
    how states are implementing categorical eligibility, but it does
    sporadically collect information from the states on the nature and funding
    of the services used to confer categorical eligibility.

    ^1Categorical eligibility for food stamps is also available through
    receipt of TANF cash assistance, Social Security Income, and general
    assistance.

    ^2These services may also include short-term, nonrecurring cash payments,
    but not TANF cash assistance.

    ^3For example, caseworkers in Massachusetts apply a gross income limit of
    200 percent of the federal poverty level to determine if households are
    eligible for the state's TANF noncash service that confers categorical
    eligibility for food stamps. In addition, Texas has a $5,000 asset limit
    for all TANF noncash categorically eligible households.

    The Administration has proposed eliminating TANF noncash categorical
    eligibility for food stamps, and the Congressional Budget Office has
    estimated that about 280,000 participants would no longer be eligible for
    food stamps in fiscal year 2008 if the proposal is implemented. Also,
    because food stamp eligibility confers automatic eligibility for other
    nutrition programs, such as the National School Lunch Program, there is
    some question as to how the elimination of TANF noncash categorical
    eligibility would affect the recipients of other nutrition programs. In
    this context, you asked us to review the implementation of TANF noncash
    categorical eligibility and examine the potential effect of its proposed
    elimination. Specifically, you asked us to answer the following questions:
    (1) How have states implemented categorical eligibility for TANF noncash
    recipients? (2) How do the income and asset levels of TANF noncash food
    stamp recipients compare to those of TANF cash food stamp recipients? (3)
    What is the potential effect of eliminating TANF noncash categorical
    eligibility on Food Stamp Program participation, administration, and state
    administrative costs?

    To answer these questions, we surveyed food stamp administrators in the 50
    states and the District of Columbia to collect information on TANF noncash
    categorical eligibility implementation. We also obtained household
    characteristic data on noncash households from 21 out of the 29 states
    that confer TANF noncash categorical eligibility. To augment the survey
    results, we conducted site visits in Maryland, Massachusetts, and South
    Carolina to interview state and local officials responsible for
    administering the food stamp and other nutrition programs. We selected
    states that were geographically dispersed across FNS regions and provided
    variety across (1) population coverage of TANF noncash services, (2)
    number of noncash services, and (3) total food stamp population. We
    reviewed FNS data and interviewed officials from FNS and representatives
    of nutrition groups. We conducted our work from June 2006 to March 2007 in
    accordance with generally accepted government auditing standards.

    On March 15, 2007, we briefed you on the results of our analysis. This
    report formally conveys the information provided in that briefing (see
    app. I). In summary, we reported the following findings:

               o The 29 states that confer TANF noncash categorical eligibility
               use a variety of noncash services to qualify participants for food
               stamp benefits under categorical eligibility, such as services
               that provide employment support, family support, and
               self-sufficiency support. Some states use brochures or information
               referral services that could allow for a large segment of the
               state's food stamp population to be categorically eligible, while
               some states use services designed to serve more narrowly defined
               populations.^4 Six states may not be following program
               regulations, however, which require them to use certain federally
               or state-funded noncash services to confer categorical
               eligibility. Additionally, some states reported that they do not
               specifically determine if an individual needs a certain TANF
               noncash service before conferring food stamp eligibility.

               o TANF noncash categorically eligible food stamp households appear
               to have slightly higher incomes as compared to those of TANF cash
               categorically eligible households.^5 We do not have asset data for
               the TANF cash categorically eligible households, so we cannot
               compare the assets of TANF cash and TANF noncash households.

               o Our analysis showed that a vast majority of TANF noncash
               households may remain eligible for food stamps without TANF
               noncash categorical eligibility because their income and/or asset
               levels are within the regular food stamp limits. Other households
               may lose eligibility for food stamps because their income and/or
               asset levels are too high. However, the degree to which
               participation may decrease varies across the states. In addition,
               our analysis showed that few noncash households may lose
               eligibility for other nutrition programs because their incomes are
               sufficiently low to qualify them for these programs. Similarly,
               many of the states' food stamp officials believed eliminating
               noncash categorical eligibility would decrease participation in
               food stamps and other nutrition programs. Many of the states' food
               stamp officials also believed that the proposed elimination of
               noncash categorical eligibility would increase the Food Stamp
               Program administrative workload and state administrative costs,
               for example, due to the need to verify assets, change data
               systems, and train staff.

    ^4Some states use both types of services. For example, Oregon provides
    information and referral services as well as several services targeted to
    more narrowly defined populations, such as a housing stabilization program
    targeted to homeless families or those at risk for homelessness.

    ^5FNS data on TANF cash categorically eligible households are from fiscal
    year 2005; state data on TANF noncash categorically eligible households
    are from September 2006 for the 21 states that confer noncash categorical
    eligibility for which we have data on household characteristics.

    In conclusion, although some states appear to do little to link a
    household's need for specific TANF noncash services in conferring
    categorical eligibility for food stamps, we found that the vast majority
    of these households may still be eligible for regular food stamps if TANF
    noncash categorical eligibility were eliminated. In addition, it appears
    that some states are not conferring categorical eligibility to households
    receiving, or authorized to receive, TANF noncash services funded with
    more than 50 percent federal or state MOE funds as required by the
    regulations. As a result, some states may not assess all potentially
    eligible households to determine if they could receive food stamps through
    a TANF noncash service. Finally, FNS's administration of the TANF noncash
    categorical eligibility program may result in some states not following
    program rules or states not fully understanding the implications of how
    they have implemented the program.

    To improve management and administration of TANF noncash categorical
    eligibility, we recommend that FNS provide guidance and technical
    assistance to states clarifying which TANF noncash services states must
    use to confer categorical eligibility for food stamps and monitor states'
    compliance with the categorical eligibility requirements.

    We provided a draft of this report to FNS for comment, and on March 12,
    2007, we met with FNS officials to obtain their comments. Overall, the
    officials agreed with our findings, conclusions, and recommendation. The
    agency officials said they would wait until after the Food Stamp Program
    is reauthorized under the Farm Bill reauthorization due in 2007 to see if
    TANF noncash categorical eligibility for food stamps is retained before
    implementing the recommendation. FNS officials said it is difficult to
    identify the magnitude of states' noncompliance with the funding rule
    without more information about specific state programs. We added
    information, where appropriate, on which states appear not to be following
    the funding rules and provided some examples of the noncash services. FNS
    officials also said that if TANF noncash categorical eligibility is
    eliminated, only a small number of households may no longer be eligible
    for food stamps, even if this number represents a high percentage of a
    state's TANF noncash categorically eligible population. We agree with this
    statement and clarified the text.

    In addition, FNS officials stated that at the state level, program changes
    are regularly made which may increase state administrative costs. The
    officials noted that these costs can be difficult to quantify and can vary
    from state to state; moreover, small changes in the amount of time spent
    on one part of policy may not change total state administrative costs. We
    agree that states may experience different costs to change their
    operations if noncash categorical eligibility is eliminated, but we
    reported information that the states provided in response to our survey.
    The agency also indicated that it recently issued a report on expanded
    categorical eligibility in February 2007.^6 FNS officials said that
    although FNS may characterize information on states somewhat differently
    than we do, the conclusions about the program remain the same. FNS also
    provided technical comments, which we incorporated where appropriate.

    ^6"Food Stamp Program: Expanded Categorical Eligibility," FNS, USDA,
    Alexandria, Virginia, February 2007.

    We are sending copies of this report to the Secretary of Agriculture,
    appropriate congressional committees, and other interested parties. We
    will also make copies available to others upon request. In addition, the
    report will be available at no charge on GAO's Web site at
    http://www.gao.gov .

    If you or your staff have any questions about this report, please contact
    me at (202) 512-7215 or nilsens@gao.gov . Contact points for our
    Offices of Congressional Relations and Public Affairs may be found in the
    last page of this report. GAO staff who have made major contributions to
    this report are listed in appendix IX.

    Sincerely,

    Sigurd R. Nilsen
    Director
    Education, Workforce, and Income Security Issues

    Appendix I: Briefing Slides

    Appendix II: Objectives, Scope, and Methodology

    To understand more about individuals eligible for food stamps as a result
    of Temporary Assistance for Needy Families (TANF) noncash categorical
    eligibility, we examined (1) how states have implemented categorical
    eligibility for TANF noncash recipients; (2) how the income and asset
    levels of TANF noncash food stamp recipients compare to those of TANF cash
    food stamp recipients; and (3) the potential effect of eliminating TANF
    noncash categorical eligibility on Food Stamp Program participation,
    administration, and state administrative costs.

    To address these issues, we surveyed state food stamp administrators,
    obtained data on TANF noncash households from 21 out of the 29 states that
    confer TANF noncash categorical eligibility,^1 conducted three state site
    visits (Maryland, Massachusetts, and South Carolina), analyzed data
    provided by the U.S. Department of Agriculture's (USDA) Food and Nutrition
    Service (FNS), and interviewed program stakeholders, including officials
    at FNS headquarters and regional offices and representatives of nutrition
    groups. We conducted our work from June 2006 to March 2007 in accordance
    with generally accepted government auditing standards.

    Survey of State Food Stamp Administrators

    To learn about states' implementation of TANF noncash categorical
    eligibility for food stamps, we conducted a Web-based survey of food stamp
    administrators in the 50 states and the District of Columbia. The survey
    was conducted between October 2006 and February 2007 with 100 percent of
    state food stamp administrators responding. The survey included questions
    about (1) the number and nature of TANF noncash services states use to
    confer food stamp categorical eligibility, (2) why states chose or did not
    choose to confer noncash categorical eligibility, (3) how states determine
    eligibility for noncash services that confer categorical eligibility, (4)
    the availability of state data on household characteristics of TANF
    noncash food stamp recipients, and (5) state officials' opinions on the
    potential effects on food stamp participation, administration, and state
    administrative costs, as well as other nutrition programs, if TANF noncash
    categorical eligibility were eliminated.

    Because this was a survey of all states and the District (not a sample
    survey), there are no sampling errors. However, the practical difficulties
    of conducting any survey may introduce nonsampling errors, such as
    variations in how respondents interpret questions and their willingness to
    offer accurate responses. We took steps to minimize nonsampling errors,
    including pretesting draft instruments and using a Web-based
    administration system. Specifically, during survey development, we
    pretested draft instruments with officials in Maryland, New York, Oregon,
    and Pennsylvania in August and September 2006. In the pretests, we were
    generally interested in the clarity of the questions and the flow and
    layout of the survey. For example, we wanted to ensure definitions used in
    the surveys were clear and known to the respondents, categories provided
    in closed-ended questions were complete and exclusive, open-ended
    questions were understandable, and the ordering of survey sections and the
    questions within each section was appropriate. On the basis of the
    pretests, the Web instrument underwent some slight revisions. A second
    step we took to minimize nonsampling errors was using a Web-based survey.
    By allowing respondents to enter their responses directly into an
    electronic instrument, this method automatically created a record for each
    respondent in a data file and eliminated the need for, and the errors (and
    costs) associated with, a manual data entry process. To further minimize
    errors, programs used to analyze the survey data were independently
    verified to ensure the accuracy of this work. We found our survey data to
    be sufficient for the purposes of our work.

    ^1Twenty-two states reported that they do not have TANF noncash services
    funded with more than 50 percent TANF or state maintenance of effort (MOE)
    dollars and said they have chosen not to confer categorical eligibility
    for TANF noncash services funded with less than 50 percent TANF/MOE.

    Data on TANF Categorically Eligible Food Stamp Households

    We obtained the following data for each TANF noncash categorically
    eligible food stamp household for September 2006 from 21 out of the 29
    states that confer TANF noncash categorical eligibility:^2

               o total number of TANF noncash categorically eligible households;
               o gross income;
               o net income;
               o countable resources, excluding vehicles;
               o dollar value of vehicles;
               o number of children less than age 5;
               o number of children age 5 to 17;
               o number of disabled children;
               o number of nondisabled adults age 18 to 59;
               o number of disabled adults age 18 to 59;
               o number of nondisabled persons age 60 or over; and
               o number of disabled persons age 60 or over.

    ^2Some of the 21 states did not provide all the data elements.

    We found the state data on TANF noncash categorically eligible food stamp
    households to be sufficient for the purposes of our work. To compare the
    TANF noncash to TANF cash households, we obtained data from FNS on the
    household characteristics of TANF cash categorically eligible households
    for fiscal year 2005, the latest available data. FNS did not provide data
    on disabled versus nondisabled children and adults. In addition, FNS did
    not provide asset data (i.e., countable resources and vehicles) because
    the agency does not collect asset data on TANF cash categorically eligible
    households.^3

    State Site Visits

    To supplement information from the survey, we conducted three site visits
    (Maryland, Massachusetts, and South Carolina). We selected states that
    were geographically dispersed across FNS regions and provided variety
    across (1) states that use TANF noncash services that could cover a large
    segment of their food stamp population versus services targeted to more
    narrowly defined populations, (2) the state's total number of TANF noncash
    services that confer categorical eligibility, and (3) the state's total
    food stamp population. During each visit, we met with state and local
    officials (including caseworkers) responsible for administering the food
    stamp and other nutrition programs, such as the school breakfast and lunch
    programs, to obtain their views on the implementation of, and potential
    effects of eliminating, TANF noncash categorical eligibility for food
    stamps.

    ^3 For categorical eligibility, there is no separate food stamp asset
    limit; instead, the asset limit is that imposed by a TANF noncash service
    or by a state.

    Appendix III: State Vehicle Rule Choices and Descriptions

    State          Vehicle rule choice      Vehicle rule description
    Alabama        TANF assistance          All vehicles are excluded.
    Alaska         TANF assistance          Alaska excludes the value of a
                                               vehicle if it is necessary for
                                               transportation to meet basic needs
                                               (obtaining food, medical care);
                                               transportation to and from work,
                                               school, training; used in
                                               self-employment; or used as the
                                               household's home. All vehicles
                                               with an equity value of $1,500 or
                                               less are excluded. All other
                                               vehicles have their equity value
                                               counted.
    Arizona        TANF assistance          Vehicles are not considered in the
                                               resource determination, with the
                                               exception of recreational
                                               vehicles.
    Arkansas       TANF assistance          In conjunction with the TANF rule,
                                               the state exempts one vehicle per
                                               household regardless of the value.
    California     Child care/foster care   All vehicles are exempt for the
                                               purpose of determining food stamp
                                               eligibility.
    Colorado       Food Stamp Program       All vehicles are exempt except
                                               recreational vehicles.
    Connecticut    TANF assistance          State did not provide vehicle rule
                                               description.
    District of    TANF assistance          The District of Columbia excludes
    Columbia                                the value of any vehicle primarily
                                               used for transportation.
    Delaware       TANF/MOE--categorical    Food Stamps (FS) in Delaware does
                      eligibility              not use the TANF vehicle rules.
                                               Because the state has expanded
                                               categorical eligibility to all FS
                                               applicants, except those who have
                                               a disqualified household member,
                                               the state does not look at
                                               resources in the FSP at all for
                                               categorically eligible households.
    Florida        Food Stamp Program and   The state excludes any vehicle
                      TANF assistance          possible by using the food stamp
                                               rules to exempt vehicles. For
                                               those that cannot be exempted, the
                                               state applies the TANF policy of
                                               excluding $8,500 maximum equity
                                               value, and then counting the
                                               remaining value toward the $2,000
                                               (or $3,000 for elderly and
                                               disabled) asset limit.
    Georgia        TANF/MOE--categorical    The state aligned its vehicle
                      eligibility              policy with its TANF support
                                               services policy. The TANF
                                               Transitional Support Services
                                               policy excludes vehicles from
                                               consideration.
    Hawaii         TANF assistance          All vehicles are excluded
                                               regardless of value.
    Idaho          Food Stamp Program       Idaho currently uses Code of
                                               Federal Regulations (CFR) rules on
                                               vehicle resource determination.
                                               The state is proposing a rule
                                               change to the legislature this
                                               year. If passed, Idaho will
                                               exclude one vehicle per adult
                                               household member; all other
                                               vehicles subject to CFR rules.
    Illinois       Food Stamp Program and   Licensed vehicles are exempt:
                      TANF assistance
                                                  o one vehicle per household
                                                  o if net proceeds if sold would
                                                  be $1,500 or less
                                                  o if used primarily for
                                                  producing income
                                                  o if annually producing income
                                                  consistent with fair market
                                                  value
                                                  o if needed for long-distance
                                                  travel for employment, not
                                                  including daily commuting
                                                  o if it is the household's home
                                                  o if needed to transport a
                                                  physically disabled household
                                                  member
                                                  o if needed to carry fuel for
                                                  heating or water for home use
                                                  if the transported fuel or
                                                  water is the main source of
                                                  fuel or water
                                                  o one vehicle for each adult
                                                  o if used by person under age
                                                  18 to transport to training or
                                                  education to prepare for work
                                                  (except high school or
                                                  college), work, or to look for
                                                  work
    Indiana        Food Stamp Program       (1) Fair Market Value (FMV) -
                                               $4,650 = x (2) FMV - lien(s) = y.
                                               The state uses the greater of x
                                               and y as a resource.
    Iowa           Food Stamp Program and   Iowa excludes the entire value of
                      TANF assistance          one vehicle per household for TANF
                                               and the Food Stamp Program. The
                                               value of remaining vehicles for
                                               the Food Stamp Program is
                                               determined using FSP rules.
    Kansas         TANF assistance          All vehicles are exempt for TANF
                                               and FS purposes.
    Kentucky       TANF assistance          State did not provide vehicle rule
                                               description.
    Louisiana      TANF assistance          Louisiana excludes the value of
                                               all vehicles when determining
                                               eligibility for food stamp
                                               benefits.
    Maine          TANF assistance          Primary household vehicle exempt.
                                               Additional vehicle may be exempt
                                               depending on use. Can have exempt
                                               vehicle for each licensed driver
                                               in the household.
    Maryland       TANF assistance          The value of all vehicles is
                                               excluded from countable resources.
    Massachusetts  TANF assistance          Vehicles were eliminated as
                                               countable assets for FS purposes
                                               in 11/2001. The Department of
                                               Transitional Assistance (DTA)
                                               chose to adapt the vehicle rule of
                                               a TANF-funded program for former
                                               Transitional Aid to Families with
                                               Dependent Children (TAFDC) clients
                                               who are unemployed and are
                                               completing an education or
                                               training program. This program
                                               provides child care services for
                                               up to 6 months after the TAFDC
                                               cash case has closed. There is no
                                               vehicle test in this program.
    Michigan       State did not provide    The state does not consider assets
                                               (resources) as a result of its
                                               expanded categorical eligibility,
                                               so therefore the state does not
                                               follow the vehicle rules.
    Minnesota      TANF/MOE--categorical    The TANF/MOE program that confers
                      eligibility              categorical eligibility for FS
                                               does not count vehicles as assets.
    Mississippi    TANF assistance          Mississippi excludes all vehicles
                                               except recreational vehicles such
                                               as boats, all-terrain vehicles
                                               (ATV), etc.
    Missouri       Child care/foster care   All vehicles are excluded.
    Montana        Child care/foster care   All vehicles are excluded.
    Nebraska       Child care/foster care   One vehicle per household can be
                                               excluded if the vehicle has a fair
                                               market value of: (a.) $12,000 or
                                               less, the total value of the car
                                               is excluded. (b.) More than
                                               $12,000, the amount over $12,000
                                               is counted toward the household's
                                               resource limit.
    Nevada         Food Stamp Program, TANF One vehicle no matter the value
                      assistance,              and vehicles owned by a
                      TANF/MOE--categorical    categorically eligible household.
                      eligibility
    New Hampshire  TANF assistance          The state excludes one vehicle per
                                               adult household member, including
                                               one vehicle per adult household
                                               member disqualified or excluded
                                               from the assistance group
                                               regardless of use or value. A
                                               vehicle belonging to a dependent
                                               child may also be excluded as long
                                               as the number of vehicles excluded
                                               does not exceed the number of
                                               adult household members.
    New Jersey     TANF assistance          As per the Farm Bill, New Jersey
                                               matched the TANF vehicle resource
                                               limit at $11,500 and eliminated
                                               assessing the vehicle at equity
                                               value. All vehicles are assessed
                                               at fair market value.
    New Mexico     Child care/foster care   Child care rule that New Mexico
                                               uses for FSP vehicle policy
                                               excludes any vehicle.
    New York       Child care/foster care   State did not provide vehicle rule
                                               description.
    North Carolina TANF assistance          North Carolina excludes one
                                               vehicle per adult household member
                                               plus others if they are used for
                                               specific purposes or if the sale
                                               of the vehicle would net the owner
                                               less than $1,500. The equity value
                                               (using Blue Book figures) of any
                                               remaining vehicles is counted in
                                               resources.
    North Dakota   Food Stamp Program and   All vehicles are excluded for
                      TANF/MOE--categorical    categorically eligible households.
                      eligibility              Regular Food Stamp Program vehicle
                                               rules apply to disqualified
                                               individuals.
    Ohio           TANF assistance          Ohio excludes all vehicles in
                                               determining resources for food
                                               stamps, following TANF policy to
                                               exclude vehicles.
    Oklahoma       TANF assistance          Use the TANF program rules, $5,000
                                               equity value. Use exclusions
                                               allowed through federal
                                               regulations.
    Oregon         TANF assistance          The first $10,000 of the combined
                                               equity value of all motor
                                               vehicles--whether licensed or
                                               unlicensed--is excluded for both
                                               FS and TANF. The remaining equity
                                               value, if any, counts toward both
                                               the FS and TANF resource limits.
    Pennsylvania   TANF assistance          Exempt one vehicle.
    Rhode Island   TANF assistance          Rhode Island excludes one vehicle
                                               per household member with a
                                               maximum of two vehicles being
                                               excluded per household. If there
                                               are any other vehicles, the
                                               regular food stamp rules would
                                               apply to those vehicles.
    South Carolina TANF assistance          For households that are not
                                               categorically eligible, exempt one
                                               licensed vehicle per adult
                                               household member.
    South Dakota   TANF assistance          Per TANF rules, the state excludes
                                               one vehicle per household. All
                                               other vehicle exclusions follow
                                               federal Food Stamp regulations.
    Tennessee      Child care/foster care   Exclude all vehicles with certain
                                               exceptions such as vehicles used
                                               for recreational purposes, such as
                                               personal watercraft.
    Texas          TANF/MOE--categorical    Texas exempts all vehicles as
                      eligibility              specified by food stamp
                                               regulations; plus the state
                                               exempts $15,000 of the fair market
                                               value of the highest valued
                                               vehicle that would otherwise be
                                               countable.
    Utah           TANF assistance          Exempt vehicles beginning January
                                               1, 2007. Will match to TANF.
    Vermont        Food Stamp Program, TANF Aligns FS vehicle rules with TANF
                      assistance, and          (Reach Up) rules by totally
                      TANF/MOE--categorical    excluding the value of one vehicle
                      eligibility              per adult in the household for no
                                               more than two adults. Also
                                               excludes all vehicles when the
                                               household is categorically
                                               eligible by virtue of receiving
                                               state-funded earned income tax
                                               credit, which is counted as
                                               TANF/MOE.
    Virginia       TANF assistance          The vehicle evaluation was changed
                                               as a result of the options allowed
                                               under the Farm Bill of 2002. The
                                               TANF program changed its
                                               eligibility criteria at the same
                                               time to exclude the evaluation of
                                               all resources. The FS program in
                                               Virginia chose to exclude the
                                               value of all nonliquid resources,
                                               including vehicles, so that now
                                               only liquid resources are
                                               countable.
    Washington     Food Stamp Program,      TANF/MOE categorical eligibility
                      TANF/MOE--categorical    for households meeting the
                      eligibility              eligibility test and not
                                               specifically barred from
                                               categorical eligibility status.
                                               All other households: Food Stamp
                                               Program rules.
    West Virginia  Child care/foster care   All vehicles are excluded for the
                                               West Virginia FSP. West Virginia
                                               defines "vehicle" as a car, truck,
                                               motorcycle, motor scooter, or
                                               camper when the living section of
                                               the camper is a permanent part of
                                               the motorized section. To be
                                               considered a vehicle, it must
                                               require licensing to operate on
                                               public roadways, not necessarily
                                               be licensed. ATVs are treated as
                                               recreational vehicles, not as
                                               vehicles, and can be considered as
                                               an available resource to
                                               household.
    Wisconsin      TANF/MOE--categorical    Wisconsin currently does not have
                      eligibility              a vehicle limit.
    Wyoming        TANF assistance          Exclude a vehicle with trade-in
                                               value up to $15,000 for single
                                               household. Exclude two vehicles
                                               with a combined trade-in value of
                                               $15,000 for a married household.

    Source: GAO survey.

    Note: States are allowed to substitute the following vehicle rules in
    place of the Food Stamp Program (FSP) rules: TANF Assistance Rules,
    TANF/Maintenance-of-effort (MOE) Categorical Eligibility Rules, and Child
    Care/Foster Care Rules.

    Appendix IV: Other Nutrition Programs

    Appendix V: Nature of TANF Noncash Services Used to Confer Categorical
    Eligibility for Food Stamps

    Appendix VI: Eligibility Criteria of TANF Noncash Services Used to Confer
    Categorical Eligibility

    Appendix VII: State-by-State Comparison of TANF Noncash and TANF Cash
    Categorically Eligible Households

    Appendix VIII: State-by-State Household Characteristics of TANF Noncash
    Categorically Eligible Food Stamp Households

    Appendix IX: GAO Contact and Staff Acknowledgments

    GAO Contact

    Sigurd R. Nilsen, (202) 512-7215 or nilsens@gao.gov .

    Staff Acknowledgments

    In addition to the contact named above, Diana M. Pietrowiak, Assistant
    Director; Linda L. Siegel; Meghana Acharya; Jill M. Evancho; and Jasminee
    Persaud contributed significantly to all aspects of this report. Kevin L.
    Jackson and Laurie S. Hamilton assisted in conducting the survey and
    analyzing the state data; Daniel A. Schwimer provided legal support; and
    Charles E. Willson assisted in report development.

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    Targeting Stores Likely to Traffic and Increasing Penalties. [16]GAO-07-53
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    (130579)

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    References

    Visible links
      15. http://www.gao.gov/cgi-bin/getrpt?GAO-07-422T
      16. http://www.gao.gov/cgi-bin/getrpt?GAO-07-53
      17. http://www.gao.gov/cgi-bin/getrpt?GAO-06-414
      18. http://www.gao.gov/cgi-bin/getrpt?GAO-05-245
      19. http://www.gao.gov/cgi-bin/getrpt?GAO-04-916
      20. http://www.gao.gov/cgi-bin/getrpt?GAO-04-346
      21. http://www.gao.gov/cgi-bin/getrpt?GAO-02-409
      22. http://www.gao.gov/cgi-bin/getrpt?GAO-01-272
    *** End of document. ***