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

DEPARTMENT OF AGRICULTURE

Food and Consumer Service

RIN 0584-AC53

Food Stamp Program: Maximum Allotments for the 48 States and the

District of Columbia, and Income Eligibility Standards and Deductions

for the 48 States and the District of Columbia, Alaska, Hawaii, Guam

and the Virgin Islands

AGENCY: Food and Consumer Service, USDA.

ACTION: General notice.

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SUMMARY: The purpose of this notice is to update for Fiscal Year 1997:

the maximum allotment levels, which are the basis for determining the

amount of food stamps which participating households receive, the gross

and net income limits for food stamp eligibility, the standard

deduction available to certain households, and the homeless household

shelter allowance. These adjustments, required by law, take into

account changes in the cost of living and statutory adjustments since

the amounts were last calculated.

DATES: The effective date of this notice regarding the adjustment of

the maximum allotments was October 1,

[[Page 18580]]

1996. The effective date of this notice regarding deductions from

income was January 1, 1997.

FOR FURTHER INFORMATION CONTACT: Margaret Werts Batko, Assistant Chief,

Certification Policy Branch, Program Development Division, Food Stamp

Program, Food and Consumer Service, USDA, 3101 Park Center Drive,

Alexandria, Virginia 22302, (703) 305-2516.

SUPPLEMENTARY INFORMATION:

Implementation

As required by Section 3(o) of the Food Stamp Act of 1977 (the

Act), 7 U.S.C. 2012(o), State agencies should have implemented the

adjustments to the maximum food stamp allotments reflected in this

notice on October 1, 1996, based on advance notice of the new amounts.

Similarly, State agencies received notice of the changes in deductions

from income that were required to be implemented on January 1, 997. In

accordance with regulations published at 47 FR 46485-46487 (October 19,

1982), annual statutory adjustments to the maximum allotment levels,

income eligibility standards, and deductions are issued by general

notices published in the Federal Register and not through rulemaking

proceedings.

Public Law 104-193, the Personal Responsibility and Work

Opportunity Reconciliation Act of 1996, was enacted on August 22, 1996.

Several provisions of that law affect Food Stamp Program allotment

levels, income eligibility standards and deduction amounts. The

provisions of Pub. L. 104-193 discussed herein were intended by

Congress to be binding and non-discretionary. In that light, the

Department has determined in accord with 5 U.S.C. 553(b)(2)(B) that

good cause existed to implement the required statutory changes without

prior notice and comment. To meet the implementation requirements of

Public Law 104-193, State agencies were informed of the new standards

in guidance issued by the Department prior to the publication of this

notice. Subsequent to the publishing of this notice, various regulatory

changes corresponding to the statutory changes will be promulgated.

These regulatory changes will not affect the provisions of Pub. L. 104-

193 hereby implemented but will simply correlate the Code of Federal

Regulations with the Act.

Classification

Executive Order 12866

This notice has been determined to be not significant for purposes

of Executive Order 12866 and therefore has not been reviewed by the

Office of Management and Budget (OMB).

Executive Order 12372

The Food Stamp Program is listed in the Catalog of Federal

Domestic Assistance Under No. 10.551. For the reasons set forth in the

final rule related notice to 7 CFR Part 3015, Subpart V (48 FR 29116,

June 24, 1983), this program is excluded from the scope of Executive

Order 12372 which requires intergovernmental consultation with State

and local officials.

Regulatory Flexibility Act

The Under Secretary for Food, Nutrition and Consumer Services, has

certified that this action will not have a significant economic impact

on a substantial number of small entities. The action will increase the

amount of money spent on food through food stamps. However, this money

will be distributed among the nation's food vendors, so the effect on

any one vendor will not be significant.

Paperwork Reduction Act

This action does not contain reporting or record keeping

requirements subject to approval by OMB pursuant to the provisions of

the Paperwork Reduction Act of 1995, 44 U.S.C. 3507.

Background

Income Eligibility Standards

The eligibility of households for the Food Stamp Program, except

those in which all members are receiving ``benefits under a State

program funded under part A of title IV of the Social Security Act [],

supplemental security income [SSI] benefits under title XVI of the

Social Security Act [], or aid to the aged, blind, or disabled under

title I, X, XIV, or XV of the Social Security Act. * * *'', is

determined by comparing their incomes to the appropriate income

eligibility standards (limits). Pursuant to Section 5(c)(2) of the Act,

7 U.S.C. 2014(c)(2), households containing an elderly or disabled

member are required to have qualifying net incomes, while households

which do not contain an elderly or disabled member must have qualifying

net incomes and qualifying gross incomes. Households in which all

members are receiving Social Security Act title IV benefits or SSI are

``categorically eligible;'' under 7 CFR 273.2(j)(2) their incomes do

not have to be below the income limits.

As provided in Section 5(c)(1) of the Act, the net and gross income

limits applicable to food stamp eligibility are derived from the

Federal income poverty guidelines established under Section 673(2) of

the Community Services Block Grant Act, 42 U.S.C. 9902(2). The net

income limit is 100 percent of the poverty line. The gross income limit

is 130 percent of the poverty line. The guidelines are updated

annually. Based on that update, the Food Stamp Program's income

eligibility standards are updated each October 1. Instructions for

implementation of the required adjustments for October 1, 1996, were

issued by the Deputy Administrator of the Food and Consumer Service in

an August 2, 1996, memorandum to all State Food Stamp Program

Directors. The revised income eligibility standards for the 48 States

(including the District of Columbia, Guam and the Virgin Islands),

Alaska and Hawaii are as follows:

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

Net Monthly Income Eligibility Standards

[100 Percent of Poverty Level]

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Household size 48 States Alaska Hawaii

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1................................ $ 645 $ 805 $ 743

2................................ 864 1,079 994

3................................ 1,082 1,352 1,245

4................................ 1,300 1,625 1,495

5................................ 1,519 1,899 1,746

6................................ 1,737 2,172 1,997

7................................ 1,955 2,445 2,248

8................................ 2,174 2,719 2,499

[[Page 18581]]

Each add. member................. +219 +274 +251

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Gross Monthly Income Eligibility Standards

[130 Percent of Poverty Level]

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Household size 48 States Alaska Hawaii

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1................................ $ 839 $1,047 $ 966

2................................ 1,123 1,402 1,292

3................................ 1,407 1,758 1,618

4................................ 1,690 2,113 1,944

5................................ 1,974 2,468 2,270

6................................ 2,258 2,824 2,596

7................................ 2,542 3,179 2,922

8................................ 2,826 3,534 3,248

Each add. member................. +284 +356 +327

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Gross Monthly Income Eligibility Standards for Households Where Elderly

Disabled are a Separate Household

[165 Percent of Poverty Level]

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Household size 48 States Alaska Hawaii

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1................................ $1,065 $1,329 $1,226

2................................ 1,425 1,780 1,639

3................................ 1,785 2,231 2,053

4................................ 2,145 2,682 2,467

5................................ 2,506 3,133 2,881

6................................ 2,866 3,584 3,295

7................................ 3,226 4,035 3,709

8................................ 3,586 4,486 4,123

Each add. member................. +361 +451 +414

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Thrifty Food Plan (TFP) and Allotments

As provided for in Section 3(o) of the Act, the TFP is a plan for

the consumption of foods of different types (food groups) that a

household might use to provide nutritious meals and snacks for

household members. The plan reflects a diet required to feed a family

of four persons consisting of a man and a woman aged 20 to 50, a child

6 to 8 and a child 9 to 11. The cost of the TFP is adjusted monthly to

reflect changes in the costs of the food groups.

The TFP is also the basis for establishing food stamp allotments.

``Allotment'' is defined in Section 3(a) of the Act as ``the total

value of coupons a household is authorized to receive during each

month.'' Food stamp allotments are adjusted periodically to reflect the

changes in food cost levels indicated in the changing amounts of the

TFP. Prior to the amendment of Section 3(o) of the Act by Section 804

of Pub. L. 104-193, allotment amounts were established on each October

1 at 103% of the cost of the TFP in the previous June. Amended Section

3(o)(4) of the Act now provides that the TFP will be adjusted each

October 1 to reflect the exact cost, or 100%, of the TFP for the

previous June, rounding the results to the nearest lower dollar

increment for each household size, except that on October 1, 1996, the

TFP was not to have been reduced below the amounts in effect on

September 30, 1996.

To obtain the maximum food stamp allotment for each household size

for the period October 1, 1996 to September 30, 1997, June 1996 TFP

costs for the above described four-person household were divided by

four, multiplied by the appropriate household size and economy of scale

factor, in accordance with Section 3(o)(1) of the Act and the final

result was rounded down to the nearest dollar. The maximum benefit, or

allotment, is paid to households with no net income. For a household

with income, the household's allotment is determined by reducing the

maximum allotment for the household's size by 30 percent of the

individual household's net income in accordance with Section 8(a) of

the Act, 7 U.S.C. 2017(a). The following tables show the current

allotments for the 48 States and the District of Columbia.

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

Maximum Food Stamp Allotments

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48 States and

Household size the District of

Columbia

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1.................................................... $120

2.................................................... 220

3.................................................... 315

4.................................................... 400

5.................................................... 475

6.................................................... 570

7.................................................... 630

8.................................................... 720

Each additional person............................... +90

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Minimum Benefit

Prior to Public Law 104-193, Section 8(a) of the Act, 7 U.S.C.

2017(a), provided that the minimum benefit for one- and two-person

households would be $10 per month and would be adjusted to the nearest

$5 each October 1 based on the percentage change in the TFP for the

twelve-month period ending

[[Page 18582]]

the preceding June. Section 826 of Public Law 104-193 amended Section

8(a) effective October 1, 1996 by removing the annual adjustment

provision, thus freezing the minimum benefit at $10.

Standard Deduction

Section 5(e)(1) of the Act, 7 U.S.C. 2014(e)(1), provides that, in

computing household income, households shall be allowed a standard

deduction. Prior to August 22, 1996, Section 5(e) also required that

the standard deduction be adjusted periodically. Section 809 of Public

Law 104-193 amended Section 5(e)(1) to eliminate the periodic

adjustment, freezing the standard deduction for each household in the

48 contiguous States and the District of Columbia, Alaska, Hawaii,

Guam, and the Virgin Islands of the United States at the 1994 level,

$134, $229, $189, $269, and $118, respectively.

Shelter Deduction

Prior to August 22, 1996, Section 5(e) of the Act also mandated

increases in the shelter deduction limitation effective July 1, 1994,

and October 1, 1995, and an elimination of the limitation effective

January 1, 1997. Section 809 of Public Law 104-193 amended Section

5(e)(7) of the Act to provide that a household shall be entitled to an

excess shelter expense deduction to the extent that the monthly amount

expended by a household for shelter exceeds an amount equal to 50

percent of monthly household income after all other applicable

deductions have been allowed. However, in the case of a household that

does not contain an elderly or disabled individual, in the 48

contiguous States and the District of Columbia, Alaska, Hawaii, Guam

and the Virgin Islands of the United States, the excess shelter

deduction shall not exceed:

(i) for the period beginning on the date of enactment of the law

and ending on December 31, 1996, $247, $429, $353, $300, and $182 per

month, respectively;

(ii) for the period beginning on January 1, 1997, and ending

September 30, 1998, $250, $434, $357, $304, and $184 per month,

respectively;

(iii) for fiscal years 1999 and 2000, $275, $478, $393, $334, and

$203 per month, respectively;

(iv) for fiscal year 2001 and each subsequent fiscal year, $300,

$521, $429, $364, and $221 per month, respectively.

Homeless Shelter Allowance

Prior to August 22, 1996, Section 11(e)(3)(E) of the Act, 7 U.S.C.

2020(e)(3)(E), required the Secretary of Agriculture to prescribe rules

requiring State agencies to develop standard estimates of the shelter

expenses that could reasonably be expected to be incurred by households

in which all members were homeless but which are not receiving free

shelter throughout the month. In recognition of the difficulty State

agencies could face in gathering the necessary information to compute

standard shelter estimates for their States, the Department offered a

standard estimate which could be used by all State agencies in lieu of

their own estimates.

Sections 809 and 835 of Pub. L. 104-193 required revisions in the

above described procedures. Section 809 amended Section 5(e)(5) of the

Act, 7 U.S.C. 2014(e)(5), to allow State agencies the option to develop

a standard, stand-alone homeless shelter allowance, which shall not

exceed $143 per month and is not to be adjusted annually, for such

expenses as may reasonably be expected to be incurred by households in

which all members are homeless individuals but are not receiving free

shelter throughout the month. State agencies that develop the allowance

may use it in determining eligibility and allotments for the

households. State agencies may make a household with extremely low

shelter costs ineligible for the allowance. In essence, these rules

match those in existence at 7 CFR 273.9(d)(5), with the exception of

establishing a maximum allowance of $143. Therefore, no additional

rulemaking was required prior to the implementation of this provision

of Pub. L. 104-193. Section 835 of Pub. L. 104-193 repealed Section

11(e)(3)(E) of the Act.

Dated: April 4, 1997.

William E. Ludwig,

Administrator, Food and Consumer Service.

[FR Doc. 97-9830 Filed 4-15-97; 8:45 am]

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