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					 
                                                                 

******************************************************************
** This file contains an ASCII representation of the text of a  **
** GAO Product.                                                 **
**                                                              **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced.  Tables are included, but    **
** may not resemble those in the printed version.               **
**                                                              **
** Please see the PDF (Portable Document Format) file, when     **
** available, for a complete electronic file of the printed     **
** document's contents.                                         **
**                                                              **
******************************************************************
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 [email protected] . 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 [email protected] .

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.

Related GAO Products

Food Stamp Program: Payment Errors and Trafficking Have Declined despite
Increased Program Participation. [15]GAO-07-422T . Washington, D.C.:
January 31, 2007.

Food Stamp Trafficking: FNS Could Enhance Program Integrity by Better
Targeting Stores Likely to Traffic and Increasing Penalties. [16]GAO-07-53
. Washington, D.C.: October 13, 2006.

Welfare Reform: Better Information Needed to Understand Trends in States'
Uses of the TANF Block Grant. [17]GAO-06-414 . Washington, D.C.: March 3,
2006.

Food Stamp Program: States Have Made Progress Reducing Payment Errors, and
Further Challenges Remain. [18]GAO-05-245 . Washington, D.C.: May 5, 2005.

Food Stamp Program: Farm Bill Options Ease Administrative Burden, but
Opportunities Exist to Streamline Participant Reporting Rules among
Programs. [19]GAO-04-916 . Washington, D.C.: September 16, 2004.

Food Stamp Program: Steps Have Been Taken to Increase Participation of
Working Families, but Better Tracking of Efforts Is Needed. [20]GAO-04-346
. Washington, D.C.: March 5, 2004.

Food Stamp Program: States' Use of Options and Waivers to Improve Program
Administration and Promote Access. [21]GAO-02-409 . Washington, D.C.:
February 22, 2002.

Food Stamp Program: States Seek to Reduce Payment Errors and Program
Complexity. [22]GAO-01-272 . Washington, D.C.: January 19, 2001.

(130579)

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.

GAO's Mission

The Government Accountability Office, the audit, evaluation and
investigative arm of Congress, exists to support Congress in meeting its
constitutional responsibilities and to help improve the performance and
accountability of the federal government for the American people. GAO
examines the use of public funds; evaluates federal programs and policies;
and provides analyses, recommendations, and other assistance to help
Congress make informed oversight, policy, and funding decisions. GAO's
commitment to good government is reflected in its core values of
accountability, integrity, and reliability.

Obtaining Copies of GAO Reports and Testimony

The fastest and easiest way to obtain copies of GAO documents at no cost
is through GAO's Web site ( www.gao.gov ). Each weekday, GAO posts
newly released reports, testimony, and correspondence on its Web site. To
have GAO e-mail you a list of newly posted products every afternoon, go to
www.gao.gov and select "Subscribe to Updates."

Order by Mail or Phone

The first copy of each printed report is free. Additional copies are $2
each. A check or money order should be made out to the Superintendent of
Documents. GAO also accepts VISA and Mastercard. Orders for 100 or more
copies mailed to a single address are discounted 25 percent. Orders should
be sent to:

U.S. Government Accountability Office 441 G Street NW, Room LM Washington,
D.C. 20548

To order by Phone: Voice: (202) 512-6000 TDD: (202) 512-2537 Fax: (202)
512-6061

To Report Fraud, Waste, and Abuse in Federal Programs

Contact:

Web site: www.gao.gov/fraudnet/fraudnet.htm
E-mail: [email protected]
Automated answering system: (800) 424-5454 or (202) 512-7470

Congressional Relations

Gloria Jarmon, Managing Director, [email protected] (202) 512-4400 U.S.
Government Accountability Office, 441 G Street NW, Room 7125 Washington,
D.C. 20548

Public Affairs

Paul Anderson, Managing Director, [email protected] (202) 512-4800
U.S. Government Accountability Office, 441 G Street NW, Room 7149
Washington, D.C. 20548

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. ***