[Federal Register Volume 59, Number 49 (Monday, March 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5810]
[[Page Unknown]]
[Federal Register: March 14, 1994]
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DEPARTMENT OF AGRICULTURE
RIN 0584-AB62
Food Stamp Program: Maximum Allotments for the 48 States and DC,
and Income Eligibility Standards and Deductions for the 48 States and
DC, Alaska, Hawaii, Guam, and the Virgin Islands
AGENCY: Food and Nutrition Service, USDA.
ACTION: General Notice.
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SUMMARY: The purpose of this notice is to update for Fiscal Year 1994:
(1) The maximum allotment levels, which are the basis for determining
the maximum amount of food stamps which participating households
receive, (2) the gross and net income limits for food stamp eligibility
which certain households may have, (3) the standard deduction and
maximum amounts for the excess shelter expense deduction available to
certain households, and (4) the homeless household shelter deduction.
These adjustments, required by law, take into account changes in the
cost of living and statutory adjustments.
EFFECTIVE DATE: October 1, 1993.
FOR FURTHER INFORMATION CONTACT: Judith M. Seymour, Supervisor,
Eligibility and Certification Regulations Section, Certification Policy
Branch, Program Development Division, Food Stamp Program, Food and
Nutrition Service, USDA, Alexandria, Virginia 22302, (703) 305-2496.
Copies of the Regulatory Impact Analysis, which is summarized in this
preamble, are also available from Ms. Seymour.
SUPPLEMENTARY INFORMATION:
Publication
As required by law, State agencies must implement this action on
October 1, 1993 based on advance notice of the new amounts. 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.
Classification
Executive Order 12866
The Food and Nutrition Service is issuing this notice in
conformance with Executive Order 12866, and has determined that it is
an ``economically significant regulatory action.'' Based on information
compiled by the Department, it has been determined that this action
will increase Food Stamp Program's cost by more than $100 million. It
will not result in a major increase in costs or prices except to the
Federal Government, nor will it affect competition, productivity,
employment, investment or innovation.
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
William E. Ludwig, the Administrator of the Food and Nutrition
Service, 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 recordkeeping
requirements subject to approval by the Office of Management and Budget
(OMB).
Regulatory Impact Analysis
Need for Action
This action is required by sections 3(o) (1) and (11), 5(c), and
5(e)(4) of the Food Stamp Act of 1977, as amended (7 U.S.C. secs.
2012(o) (1) and (11), 2014(c), and 2014(e) the ``Food Stamp Act'').
Section 3(o)(11) requires that the October 1, 1993 change in food stamp
allotments be based upon 103 percent of the June 1993 cost of the
Thrifty Food Plan (TFP) for a family of four persons consisting of a
man and woman ages 20-50 and children ages 6-8 and 9-11. Adjustments
are made to take into account household size, economies of scale and a
requirement to round the final results down to the nearest dollar
increments. Section 5(c) requires that the income eligibility standards
for the program be adjusted on October 1, 1993 based on changes in the
Federal income poverty guidelines. Section 5(e)(4) requires that the
standard deductions and the maximum amounts for the excess shelter
expense deductions be adjusted on October 1, 1993 to the nearest lower
dollar increments to reflect certain changes for the 12 months ending
June 30, 1993. Section 13912 of the Mickey Leland Childhood Hunger
Relief Act, chapter 3 of P.L. 103-66, the Omnibus Reconciliation Act of
1993, amends section 5(e) by further raising the excess shelter expense
deduction cap effective July 1, 1994.
Benefits
This action increases maximum food stamp allotments, income
eligibility standards, and deductions based on the changing cost of
living.
Costs
It is estimated that this action will increase the cost of the Food
Stamp Program by approximately $652.6 million in Fiscal Year 1994.
Background
Income Eligibility Standards
The eligibility of households for the Food Stamp Program, except
those in which all members are receiving public assistance (PA) or
supplemental security income benefits (SSI), is determined by comparing
their incomes to the appropriate income eligibility standards (limits).
Households containing an elderly or disabled member need to have net
incomes below the net income limits, while households which do not
contain an elderly or disabled member must have net incomes below the
net income limit and gross incomes below the gross income limit.
Households in which all members are receiving PA or SSI are
categorically eligible; their incomes do not have to be below the
income limits.
In addition, elderly individuals (and their spouses) who are unable
to prepare meals because of certain disabilities, may be considered
separate households, even if they are living and eating with another
household. 7 U.S.C. Sec. 2012(i). The Food Stamp Act limits separate
household status to those persons who meet both of the following
requirements:
(1) Their own income may not exceed the net income eligibility
standards, and
(2) The income of those with whom they reside may not exceed 165
percent of the poverty line.
The net and gross income limits are derived from the Federal income
poverty guidelines. The net income limit is 100 percent of the
guidelines; the gross income limit is 130 percent of the guidelines.
The guidelines are updated annually. Based on that update, the Food
Stamp Program's income eligibility standards are updated annually. The
effective date of October 1 is required by the Food Stamp Act.
The revised income eligibility standards are as follows:
Food Stamp Program; October 1, 1993--September 30, 1994
Net Monthly Income Eligibility Standards
[100 Percent of Poverty Level]
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48
Household size States\1\ Alaska Hawaii
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1...................................... $581 $725 $670
2...................................... 786 982 905
3...................................... 991 1,239 1,140
4...................................... 1,196 1,495 1,375
5...................................... 1,401 1,752 1,610
6...................................... 1,606 2,009 1,845
7...................................... 1,811 2,265 2,080
8...................................... 2,016 2,522 2,315
Each add. member....................... +205 +257 +235
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\1\Includes District of Columbia, Guam, and the Virgin Islands.
Gross Monthly Income Eligibility Standards
[130 Percent of Poverty Level]
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48
Household size States\1\ Alaska Hawaii
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1...................................... $756 $943 $871
2...................................... 1,022 1,277 1,177
3...................................... 1,289 1,610 1,482
4...................................... 1,555 1,944 1,788
5...................................... 1,822 2,278 2,093
6...................................... 2,088 2,611 2,399
7...................................... 2,355 2,945 2,704
8...................................... 2,621 3,279 3,010
Each add. member....................... +267 +334 +306
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\1\Includes District of Columbia, Guam, and the Virgin Islands.
Gross Monthly Income Eligibility Standards For Households Where Elderly
Disabled Are A Separate Household
[165 Percent of Poverty Level]
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48
Household size States\1\ Alaska Hawaii
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1...................................... $959 $1,197 $1,106
2...................................... 1,297 1,620 1,494
3...................................... 1,635 2,044 1,881
4...................................... 1,974 2,467 2,269
5...................................... 2,312 2,891 2,657
6...................................... 2,650 3,314 3,045
7...................................... 2,988 3,738 3,432
8...................................... 3,327 4,161 3,820
Each add. member....................... +339 +424 +388
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\1\Includes District of Columbia, Guam, and the Virgin Islands.
Thrifty Food Plan (TFP) and Allotments
The TFP is a plan for the consumption of foods of different types
(food groups) that households might use to provide nutritious meals and
snacks for household members. The plan suggests amounts of food for
men, women, and children of different ages, and it meets dietary
standards. The cost of the TFP is adjusted annually to reflect changes
in the costs of the food groups.
The TFP is also the basis for establishing food stamp allotments.
Nationally, food stamp allotment levels are adjusted periodically to
reflect changes in food cost levels. Section 3(o)(11) of the Food Stamp
Act (7 U.S.C. Sec. 2012(o)(11)), provides for an adjustment on October
1, 1993, based upon 103 percent of the June 1993 cost of the TFP for a
family of four persons consisting of a man and woman ages 20-50 and
children ages 6-8 and 9-11. In June 1993, the cost of the TFP was
$364.90 in the 48 States and D.C.
To obtain the maximum food stamp benefit for each household size,
June 1993 TFP costs for the four-person household (of $364.90) were
increased by 3 percent, divided by four, multiplied by the appropriate
household size and economy of scale factor, and the final result was
rounded down to the nearest dollar. The maximum benefit, or allotment,
is paid to households which have no net income. For households which
have some income, the individual 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.
The following tables show the new allotments for the 48 States and
DC.
Allotment Amounts\1\--October 1993 as Adjusted
------------------------------------------------------------------------
48 States &
Household size DC
------------------------------------------------------------------------
1.......................................................... $112
2.......................................................... 206
3.......................................................... 295
4.......................................................... 375
5.......................................................... 446
6.......................................................... 535
7.......................................................... 591
8.......................................................... 676
Each additional person..................................... +85
------------------------------------------------------------------------
\1\Adjusted to reflect the cost of food in June, adjustments for each
household size, economies of scale, a 3 percent increase in the TFP
and rounding.
Minimum Benefit.
Pursuant to Section 8(a) of the Food Stamp Act, the $10 minimum
monthly benefit provided to all one- and two-person households must be
adjusted on each October 1 to reflect the percentage change in the TFP
for the 12-month period ending the preceding June, with the result
rounded to the nearest $5. In order to implement this provision of the
law, the minimum benefit is adjusted each year as follows: (1) The
percentage change in the TFP from June of the previous year to June of
the current year (prior to rounding) is calculated; (2) this percentage
change is multiplied by the previous ``unrounded'' minimum benefit to
obtain a new unrounded benefit amount; and (3) the new unrounded
minimum benefit is then rounded to the nearest $5 in accordance with
the statutory provisions.
The unrounded cost of the TFP was $355.55 in June 1992 and $364.895
in June 1993. The change from June 1992 to June 1993 is 102.6284%,
which when multiplied by $10.96, the unrounded minimum benefit in
Fiscal Year 1993, results in a new unrounded minimum benefit of $11.25.
Rounded to the nearest $5, the minimum benefit for Fiscal Year 1994 is
$10.
Deductions
Food stamp benefits are calculated on the basis of an individual
household's net income. Deductions serve to lower household net income
and thus to increase household benefits. When a household's net income
decreases, its food stamp benefits increase.
The standard deduction is available to all households. The excess
shelter expense deduction is available to households with extremely
high shelter costs. There is a maximum amount for the excess shelter
deduction for households with no elderly or disabled members but no
maximum for households with elderly or disabled members. The standard
deduction and the maximum amount for the excess shelter expense
deduction for households with no elderly or disabled members are being
adjusted by this Notice.
This Notice is also adjusting the homeless household shelter
expense. The homeless household shelter expense is a standard estimate
of the shelter expenses of homeless households and is available to
households in which all members are homeless and are not receiving free
shelter throughout the month.
Adjustment of the Standard Deduction
Section 5(e) of the Food Stamp Act of 1977, as amended, provides
that, in computing household income, households shall be allowed a
standard deduction. (7 U.S.C. Sec. 2014(e)). Section 5(e) also requires
that the standard deduction be adjusted periodically. The deduction for
the 48 States and DC was last adjusted effective October 1, 1992.
Section 5(e)(4) requires that the adjustment in the level of the
standard deduction shall take into account changes in the Consumer
Price Index for All Urban Consumers (CPI-U) published by the Bureau of
Labor Statistics (BLS) for items other than food (7 U.S.C. Sec.
2014(e)(4)). The adjustments are rounded to the nearest lower dollar
pursuant to the requirements of Section 5(e). There are separate
standard deductions for the 48 States and DC, Alaska, Hawaii, Guam, and
the Virgin Islands.
The following table shows the deductions resulting from the last
adjustment, the unrounded results of this adjustment, and the new
deduction amounts that go into effect on October 1, 1993.
Standard Deductions for All Households
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Previous standard New unrounded Standard
deductions (eff. numbers (10-1-93) deductions (eff.
10-1-92) 10-1-93)
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48 States and DC....................................... $127 $131.19 $131
Alaska................................................. 216 223.77 223
Hawaii................................................. 179 185.21 185
Guam................................................... 254 262.35 262
Virgin Islands......................................... 112 115.75 115
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Adjustment of the Shelter Deduction
Section 5(e) of the Food Stamp Act also provides that, in computing
household income, households shall be allowed a deduction for certain
excess shelter expenses. 7 U.S.C. Sec. 2014(e). There is a maximum
amount for the excess shelter expense deduction, unless the household
has an elderly or disabled member, in which case there is no maximum.
The maximum amount for the excess shelter expense deduction is adjusted
each October 1 based on changes in the shelter, fuel and utilities
components of housing costs in the CPI-U published by BLS. Moreover,
Section 13912 of the Mickey Leland Childhood Hunger Relief Act amends
5(e) by raising the excess shelter expense deduction cap over a period
of three years before removing it altogether. The first increase is
effective July 1, 1994. Shelter deductions for the 48 States and DC are
at one level while shelter deductions for Alaska, Hawaii, Guam, and the
Virgin Islands are set separately.
The following table shows the maximum shelter deductions resulting
from the last adjustment, the unrounded results of this adjustment, and
the new maximum excess shelter deductions that went into effect October
1, 1993, as well as the new maximum excess shelter deduction that is
required by statute to go into effect July 1, 1994.
Maximum Shelter Deductions for Households Without Elderly or Disabled Member
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Previous shelter New unrounded Shelter Shelter
deductions(10-1-92) numbers(10-1-93) deductions(10-1-93) deductions(07-1-94)
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48 States and DC............... $200 $207.04 $207 $231
Alaska......................... 349 359.80 359 402
Hawaii......................... 286 295.41 295 330
Guam........................... 243 251.23 251 280
Virgin Islands................. 148 152.76 152 171
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(7 U.S.C. 2011-2032)
Adjustment of the Homeless Household Shelter Expense
Section 11(e)(3)(E) of the Food Stamp Act requires the Secretary to
prescribe rules requiring state agencies to develop standard estimates
of the shelter expenses that may reasonably be expected to be incurred
by households in which all members are homeless but which are not
receiving free shelter throughout the month. 7 U.S.C. Sec.
2020(e)(3)(E). In recognition of the difficulty State agencies may face
in gathering the necessary information to compute standard shelter
estimates for their States, the Secretary offered a standard estimate
which may be used by all State agencies in lieu of their own estimates.
In the Deduction and Disaster Provisions from the Mickey Leland
Memorial Domestic Hunger Relief Act final rule, published at 56 FR
63613 (December 4, 1991), the Department stated that it would annually
adjust the homeless household shelter expense each October 1 using the
same changes in the shelter, fuel and utilities component of the CPI
used in indexing the shelter cap. This year's homeless household
shelter expense is $137.
Dated: February 16, 1994.
Ellen Haas,
Assistant Secretary for Food and Consumer Services.
[FR Doc. 94-5810 Filed 3-11-94; 8:45 am]
BILLING CODE 3410-30-U
