DEPARTMENT OF HEALTH AND SOCIAL SERVICES

Division of Social Services

PROPOSED

PUBLIC NOTICE

TANF and GA Eligibility - Excluded Income

In compliance with the State's Administrative Procedures Act (APA - Title 29, Chapter 101 of the Delaware Code), 42 CFR §447.205, and under the authority of Title 31 of the Delaware Code, Chapter 5, Section 512, Delaware Health and Social Services (DHSS) / Division of Social Services (DSS) is proposing to amend the Division of Social Services Manual regarding Temporary Assistance for Needy Families (TANF) and General Assistance (GA), specifically, to revise eligibility policy related to excluded income.

Any person who wishes to make written suggestions, compilations of data, testimony, briefs or other written materials concerning the proposed new regulations must submit same to, Planning, Policy and Quality Unit, Division of Medicaid and Medical Assistance, 1901 North DuPont Highway, P.O. Box 906, New Castle, Delaware 19720-0906, by email to Nicole.M.Cunningham@delaware.gov, or by fax to 302-255-4413 by 4:30 p.m. on September 3, 2019. Please identify in the subject line: TANF and GA Eligibility – Excluded Income.

The action concerning the determination of whether to adopt the proposed regulation will be based upon the results of Department and Division staff analysis and the consideration of the comments and written materials filed by other interested persons.

SUMMARY OF PROPOSAL

Background

Temporary Assistance for Needy Families (TANF) is a program that provides cash assistance and supportive services to assist families with children under age 18, helping them achieve economic self-sufficiency.

General Assistance (GA) is a state-funded program designed to provide cash assistance to low-income people who do not qualify for federally funded programs, such as TANF or Social Security benefits.

There are income and resource limits that apply to both TANF and GA. Some income may be excluded when determining financial eligibility and benefit amounts for TANF and GA.

Purpose

To improve the formatting and to list all types of excluded income in one policy.

Statutory Authority

Summary of Proposal

Summary of Proposed Changes

Effective for services provided on and after October 11, 2019, Delaware Health and Social Services/Division of Social Services proposes to amend the Division of Social Service Manual sections 4006, 4006.1 and 4006.2 regarding TANF and GA, specifically, to revise eligibility policy related to excluded income.

Public Notice

In accordance with the federal public notice requirements established at Section 1902(a)(13)(A) of the Social Security Act and 42 CFR 447.205 and the state public notice requirements of Title 29, Chapter 101 of the Delaware Code, Delaware Health and Social Services/Division of Social Services (DHSS/DSS) gives public notice and provides an open comment period for thirty (30) days to allow all stakeholders an opportunity to provide input on the proposed regulation. Comments must be received by 4:30 p.m. on September 3, 2019.

Fiscal Impact

The policy is currently in place and there are no new financial responsibilities.

45 CFR 233.20(a)

The following kinds of income are disregarded in DSS disregards the types of income listed in this policy when determining financial eligibility and grant amounts in for TANF and GA: GA.

EXAMPLE: A friend pays a recipient's electric bill. The payment is made directly to the electric company. This payment is not considered as income to the assistance unit.

1. Written agreement between the client and the individual or establishment engaged in the business of making loans to repay the money within a specified time.

2. If the loan is obtained from an individual or establishment not normally engaged in the business of making loans, obtain one of the following:

a. Borrower's acknowledgement of obligation to repay; or

b. Borrower's expressed intent to repay either by pledging real or personal property or anticipated income; or

c. A written statement detailing borrower's plans to repay the loan when future anticipated income is received.

"Emergency" means any occasion or instance for which, in the determination of the President, Federal assistance is needed to supplement State and local efforts and capabilities to save lives and to protect property and public health and safety, or to lessen or avert the threat of a catastrophe in any part of the United States.

"Major Disaster" means any natural catastrophe...which in the determination of the President causes damage of sufficient severity and magnitude to warrant major disaster assistance to supplement the efforts of available resources of states, local governments, and disaster relief organizations in alleviating the damage, loss, hardship, or suffering caused thereby.

Kingswood Community Center

Peoples' Settlement Association

Catholic Social Services, Inc.

Neighborhood House, Inc.

Community Housing, Inc.

Jewish Family Service of Delaware

Salvation Army

Community Action (Sussex County)

1. The value of U.S. Department of Agriculture (USDA) donated foods.

2. The value of Supplement Nutrition Assistance Program (SNAP) food benefits.

3. Foster care payments made to the foster family for foster children residing in the home.

4. Supplemental Security Income (SSI) recipient's income and resources, including the SSI payment.

5. Third-party payments made on behalf of a client.

6. TANF program high school graduation bonus payments.

7. Contributions for shared living expenses by a non-unit member.

8. Any loans that must be repaid.

9. Earnings of a minor student who is in the assistance unit, including 18-year-old students for whom an adult is receiving a grant.

10. Non-recurring lump sum payments.

A. A non-recurring lump sum payment is a resource in the month received unless specifically excluded as a resource by other federal laws or regulations.

11. Incentive payments or reimbursements for training-related expenses from participation in institutional and work experience training or special work projects.

12. Benefits from nutrition programs for the elderly or the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).

13. AmeriCorps VISTA program payments.

A. The AmeriCorps VISTA program payment is not excluded if the payment value is equal to or greater than the Fair Labor Standards Act’s current minimum wage for the hours worked. In that case, the income is treated as earned income. Disregards applicable to the category of assistance are deducted from the payment.

14. Temporary part-time U.S. Census Bureau employment income received during the census period.

15. Disaster and emergency assistance provided by federal, state, and local governments and disaster assistance organizations under P.L. 100-707.

16. Earned income tax credits (EITC).

17. All federal tax refunds (TANF only).

18. Assistance from other agencies and organizations provided that no duplication in assistance exists between the other agency and DSS.

A. To assure that non-duplication exists, case workers will determine that the assistance from the other agency is for a different purpose. For example, vocational rehabilitation provides cash allowances to reimburse clients for costs such as transportation related to their participation in a training program.

19. Supportive services payments or reimbursements for out-of-pocket expenses made to foster grandparents, senior health aides, or senior companions, and to persons serving in services corps of retired executives and active corps of executives, and any other program under Title II and III pursuant to Section 418 under P.L. 93-113.

20. Need-based home energy assistance.

21. Experimental Housing Allowance Program payments made under annual contributions contracts entered into prior to January 1, 1975, under Section 23 of the U.S. Housing Act as amended.

22. Benefits paid to eligible households under the Low-Income Home Energy Assistance Act.

23. Housing subsidies under Section 8 of the U.S. Housing Act.

24. Receipts distributed to members of certain Indian tribes, which are referred to in Section 5 under P.L. 94-114.

25. Tax exempt portions of payments made pursuant to the Alaska Native Claims Settlement Act under P.L. 92-203.

26. Payments made from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the In re Agent Orange Product Liability Litigation, M.D.L. No. 381 (E.D.N.Y. 1984).

27. Payments distributed per capita to or held in trust for members of any Indian tribe under P.L. 92-254, P.L. 93-134, or P.L. 94-540.

28. Restitution made to United States' citizens and permanent resident aliens of Japanese ancestry who were interned during World War II pursuant to Title I. under P.L. 100-383.

29. Restitution made to any Aleut who was relocated by authority of the United States from his or her home village on the Pribilof Islands or the Aleutian Islands during World War II pursuant to Title II under P.L. 100-383.

30. Income received under the Uniform Relocation Assistance and Real Property Acquisition Policies Act.

31. Financial assistance received from school grants, scholarships, vocational rehabilitation payments, Job Training Partnership Act payments, educational loans, other loans that are expected to be repaid, and other financial assistance received that is intended for books, tuition, or other self-sufficiency expenses (TANF only).

32. Grants, loans, and earnings from federally financed college work study to undergraduate students for educational purposes that are made or insured by programs administered by the U.S. Commissions of Education (GA only).

A. For other grants, loans, or unearned income that are contingent upon attending a school, college, university, or course of vocational training, the amount that is available for current living expenses is counted as income for GA. To determine the amount that is available for current living expenses:

B. When a student's financial aid package includes both loans and grants that are completely disregarded and those that are countable after expenses are deducted, determine countable income for GA as follows:

4006.1 Excluded Income - Grants and Loans to Students

Grants, Loans and Scholarships

Do not count Financial Assistance received from school grants, scholarships, vocational rehabilitation payments, Job Training Partnership Act payments, educational loans, and other loans that are expected to be repaid as income for Temporary Assistance for Needy Families program purposes. Also exclude from TANF other financial assistance received that is intended for books, tuition, or other self-sufficiency expenses. Continue to require documentation to verify the assistance received and its purpose.

4006.2 Excluded income - grants and loans to students - General Assistance

Grants and loans to undergraduate students for educational purposes that are made or insured by programs administered by the United States Commissions of Education are disregarded. These include Basic Educational Opportunity Grants (BEOG), Supplemental Education Opportunity Educational Grants (SEOG), National Direct Student Loans (NDSL), Guaranteed Student Loans (GSL), all funds provided under the National Defense Education Act, and earnings from federally financed college work study.

For other grants, loans, or unearned income that is contingent upon attending a school, college, university, or course of vocational training, that part that is available for current living expenses is counted as income. To determine the amount that is available, subtract expenses for tuition, books, fees, equipment, special clothing needs, transportation to and from school, and child care necessary to attend school from the amount of the loan, grant, or other benefit. Divide the balance by the number of months the income is intended to cover to determine budgetable monthly income.

NOTE: When a student’s financial aid package includes both loans and grants that are completely disregarded and those that are countable after expenses are deducted, determine countable income as follows:

1. Compare expenses to disregarded loans or grants.

2. If expenses are less than or equal to disregarded funds, all other grants and loans are budgeted as unearned income.