Section

[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR273.10]

[Page 707-719]

TITLE 7--AGRICULTURE

CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE

PART 273_CERTIFICATION OF ELIGIBLE HOUSEHOLDS--Table of Contents

Sec. 273.10 Determining household eligibility and benefit levels.

(a) Month of application--(1) Determination of eligibility and
benefit levels. (i) A household's eligibility shall be determined for
the month of application by considering the household's circumstances
for the entire month of application. Most households will have the
eligibility determination based on circumstances for the entire calendar
month in which the household filed its application. However, State
agencies may, with the prior approval of FNS, use a fiscal month if the
State agency determines that it is more efficient and satisfies FNS that
the accounting procedures fully comply with certification and issuance
requirements contained in these regulations. A State agency may elect to
use either a standard fiscal month for all households, such as from the
15th of one calendar month to the 15th of the next calendar month, or a
fiscal month that will vary for each household depending on the date an
individual files an application for the Program. Applicant households
consisting of residents of a public institution who apply jointly for
SSI and food stamps prior to release from the public institution in
accordance with Sec. 273.1(e)(2) will have their eligibility determined
for the month in which the applicant household was released from the
institution.
(ii) A household's benefit level for the initial months of
certification shall be based on the day of the month it applies for
benefits and the household shall receive benefits from the date of
application to the end of the month unless the applicant household
consists of residents of a public institution. For households which
apply for SSI prior to their release from a public institution in
accordance with Sec. 273.1(e)(2), the benefit level for the initial
month of certification shall be based on the date of the month the
household is released

[[Page 708]]

from the institution and the household shall receive benefits from the
date of the household's release from the institution to the end of the
month. As used in this section, the term ``initial month'' means the
first month for which the household is certified for participation in
the Food Stamp Program following any period during which the household
was not certified for participation, except for migrant and seasonal
farmworker households. In the case of migrant and seasonal farmworker
households, the term ``initial month'' means the first month for which
the household is certified for participation in the Food Stamp Program
following any period of more than 1 month during which the household was
not certified for participation. Recertification shall be processed in
accordance with Sec. 273.10(a)(2). The State agency shall prorate a
household's benefits according to one of the two following options:
(A) The State agency shall use a standard 30-day calendar or fiscal
month. A household applying on the 31st of a month will be treated as
though it applied on the 30th of the month.
(B) The State agency shall prorate benefits over the exact length of
a particular calendar or fiscal month.
(iii) To determine the amount of the prorated allotment, the State
agency shall use either the appropriate Food Stamp Allotment Proration
Table provided by FNS or whichever of the following formulae is
appropriate:
(A) For State agencies which use a standard 30-day calendar or
fiscal month the formula is as follows, keeping in mind that the date of
application for someone applying on the 31st of a month is the 30th:
[GRAPHIC] [TIFF OMITTED] TR07OC94.022

(31-date of application)
full month's benefits x ---------------------- = allotment
30

(B) For State agencies which use the exact number of days in a
month, the formula is:
[GRAPHIC] [TIFF OMITTED] TR07OC94.022

(number of days in month+1-date of application)
full month's benefits x ---------------------------------- = allotment
number of days in month

(C) If after using the appropriate formula the result ends in 1
through 99 cents, the State agency shall round the product down to the
nearest lower whole dollar. If the computation results in an allotment
of less than $10, then no issuance shall be made for the initial month.
(2) Application for recertification. Eligibility for recertification
shall be determined based on circumstances anticipated for the
certification period starting the month following the expiration of the
current certification period. The level of benefits for recertifications
shall be based on the same anticipated circumstances, except for
retrospectively budgeted households which shall be recertified in
accordance with Sec. 273.21(f)(2). If a household, other than a migrant
or seasonal farmworker household, submits an application after the
household's certification period has expired, that application shall be
considered an initial application and benefits for that month shall be
prorated in accordance with paragraph (a)(1)(ii) of this section. If a
household's failure to timely apply for recertification was due to an
error of the State agency and therefore there was a break in
participation, the State agency shall follow the procedures in Sec.
273.14(e). In addition, if the household submits an application for
recertification prior to the end of its certification period but is
found ineligible for the first month following the end of

[[Page 709]]

the certification period, then the first month of any subsequent
participation shall be considered an initial month. Conversely, if the
household submits an application for recertification prior to the end of
its certification period and is found eligible for the first month
following the end of the certification period, then that month shall not
be an initial month.
(3) Anticipated changes. Because of anticipated changes, a household
may be eligible for the month of application, but ineligible in the
subsequent month. The household shall be entitled to benefits for the
month of application even if the processing of its application results
in the benefits being issued in the subsequent month. Similarly, a
household may be ineligible for the month of application, but eligible
in the subsequent month due to anticipated changes in circumstances.
Even though denied for the month of application, the household does not
have to reapply in the subsequent month. The same application shall be
used for the denial for the month of application and the determination
of eligibility for subsequent months, within the timeliness standards in
Sec. 273.2.
(4) Changes in allotment levels. As a result of anticipating
changes, the household's allotment for the month of application may
differ from its allotment in subsequent months. The State agency shall
establish a certification period for the longest possible period over
which changes in the household's circumstances can be reasonably
anticipated. The household's allotment shall vary month to month within
the certification period to reflect changes anticipated at the time of
certification, unless the household elects the averaging techniques in
paragraphs (c)(3) and (d)(3) of this section.
(b) Determining resources. Available resources at the time the
household is interviewed shall be used to determine the household's
eligibility.
(c) Determining income--(1) Anticipating income. (i) For the purpose
of determining the household's eligibility and level of benefits, the
State agency shall take into account the income already received by the
household during the certification period and any anticipated income the
household and the State agency are reasonably certain will be received
during the remainder of the certification period. If the amount of
income that will be received, or when it will be received, is uncertain,
that portion of the household's income that is uncertain shall not be
counted by the State agency. For example, a household anticipating
income from a new source, such as a new job or recently applied for
public assistance benefits, may be uncertain as to the timing and amount
of the initial payment. These moneys shall not be anticipated by the
State agency unless there is reasonable certainty concerning the month
in which the payment will be received and in what amount. If the exact
amount of the income is not known, that portion of it which can be
anticipated with reasonable certainty shall be considered as income. In
cases where the receipt of income is reasonably certain but the monthly
amount may fluctuate, the household may elect to income average.
Households shall be advised to report all changes in gross monthly
income as required by Sec. 273.12.
(ii) Income received during the past 30 days shall be used as an
indicator of the income that is and will be available to the household
during the certification period. However, the State agency shall not use
past income as an indicator of income anticipated for the certification
period if changes in income have occurred or can be anticipated. If
income fluctuates to the extent that a 30-day period alone cannot
provide an accurate indication of anticipated income, the State agency
and the household may use a longer period of past time if it will
provide a more accurate indication of anticipated fluctuations in future
income. Similarly, if the household's income fluctuates seasonally, it
may be appropriate to use the most recent season comparable to the
certification period, rather than the last 30 days, as one indicator of
anticipated income. The State agency shall exercise particular caution
in using income from a past season as an indicator of income for the
certification period. In many cases of seasonally fluctuating income,
the income also fluctuates from one season in one year to the same
season in the next year.

[[Page 710]]

However, in no event shall the State agency automatically attribute to
the household the amounts of any past income. The State agency shall not
use past income as an indicator of anticipated income when changes in
income have occurred or can be anticipated during the certification
period.
(2) Income only in month received. (i) Income anticipated during the
certification period shall be counted as income only in the month it is
expected to be received, unless the income is averaged. Whenever a full
month's income is anticipated but is received on a weekly or biweekly
basis, the State agency shall convert the income to a monthly amount by
multiplying weekly amounts by 4.3 and biweekly amounts by 2.15, use the
State Agency's PA conversion standard, or use the exact monthly figure
if it can be anticipated for each month of the certification period.
Nonrecurring lump-sum payments shall be counted as a resource starting
in the month received and shall not be counted as income.
(ii) Wages held at the request of the employee shall be considered
income to the household in the month the wages would otherwise have been
paid by the employer. However, wages held by the employer as a general
practice, even if in violation of law, shall not be counted as income to
the household, unless the household anticipates that it will ask for and
receive an advance, or that it will receive income from wages that were
previously held by the employer as a general practice and that were,
therefore, not previously counted as income by the State agency.
Advances on wages shall count as income in the month received only if
reasonably anticipated as defined in paragraph (c)(1) of this section.
(iii) Households receiving income on a recurring monthly or
semimonthly basis shall not have their monthly income varied merely
because of changes in mailing cycles or pay dates or because weekends or
holidays cause additional payments to be received in a month.
(3) Income averaging. (i) Income may be averaged in accordance with
methods established by the State agency to be applied Statewide for
categories of households. When averaging income, the State agency shall
use the household's anticipation of monthly income fluctuations over the
certification period. An average must be recalculated at recertification
and in response to changes in income, in accordance with Sec.
273.12(c), and the State agency shall inform the household of the amount
of income used to calculate the allotment. Conversion of income received
weekly or biweekly in accordance with paragraph (c)(2) of this section
does not constitute averaging.
(ii) Households which, by contract or self-employment, derive their
annual income in a period of time shorter than 1 year shall have that
income averaged over a 12-month period, provided the income from the
contract is not received on an hourly or piecework basis. These
households may include school employees, sharecroppers, farmers, and
other self-employed households. However, these provisions do not apply
to migrant or seasonal farmworkers. The procedures for averaging self-
employed income are described in Sec. 273.11. Contract income which is
not the household's annual income and is not paid on an hourly or
piecework basis shall be prorated over the period the income is intended
to cover.
(iii) Earned and unearned educational income, after allowable
exclusions, shall be averaged over the period which it is intended to
cover. Income shall be counted either in the month it is received, or in
the month the household anticipates receiving it or receiving the first
installment payment, although it is still prorated over the period it is
intended to cover.
(d) Determining deductions. Deductible deductions include only
certain dependent care, shelter, child support and medical costs as
described in Sec. 273.9.
(1) Disallowed expenses. (i) Any expense, in whole or part, covered
by educational income which has been excluded pursuant to the provisions
of Sec. 273.9(c)(3) shall not be deductible. For example, the portion
of rent covered by excluded vendor payments shall not be calculated as
part of the household's shelter cost. In addition, an expense which is
covered by an excluded vendor payment that has been converted to a

[[Page 711]]

direct cash payment under the approval of a federally authorized
demonstration project as specified under Sec. 273.9(c)(1) shall not be
deductible. However, that portion of an allowable medical expense which
is not reimbursable shall be included as part of the household's medical
expenses. If the household reports an allowable medical expense at the
time of certification but cannot provide verification at that time, and
if the amount of the expense cannot be reasonably anticipated based upon
available information about the recipient's medical condition and public
or private medical insurance coverage, the household shall have the
nonreimbursable portion of the medical expense considered at the time
the amount of the expense or reimbursement is reported and verified. A
dependent care expense which is reimbursed or paid for by the Job
Opportunities and Basic Skills Training (JOBS) program under title IV-F
of the Social Security Act (42 U.S.C. 681) or the Transitional Child
Care (TCC) program shall not be deductible. A utility expense which is
reimbursed or paid by an excluded payment, including HUD or FmHA utility
reimbursements, shall not be deductible.
(ii) Expenses shall only be deductible if the service is provided by
someone outside of the household and the household makes a money payment
for the service. For example, a dependent care deduction shall not be
allowed if another household member provides the care, or compensation
for the care is provided in the form of an inkind benefit, such as food.
(2) Billed expenses. Except as provided in paragraph (d)(3) of this
section a deduction shall be allowed only in the month the expense is
billed or otherwise becomes due, regardless of when the household
intends to pay the expense. For example, rent which is due each month
shall be included in the household's shelter costs, even if the
household has not yet paid the expense. Amounts carried forward from
past billing periods are not deductible, even if included with the most
recent billing and actually paid by the household. In any event, a
particular expense may only be deducted once.
(3) Averaging expenses. Households may elect to have fluctuating
expenses averaged. Households may also elect to have expenses which are
billed less often than monthly averaged forward over the interval
between scheduled billings, or, if there is no scheduled interval,
averaged forward over the period the expense is intended to cover. For
example, if a household receives a single bill in February which covers
a 3-month supply of fuel oil, the bill may be averaged over February,
March, and April. The household may elect to have one-time only expenses
averaged over the entire certification period in which they are billed.
Households reporting one-time only medical expenses during their
certification period may elect to have a one-time deduction or to have
the expense averaged over the remaining months of their certification
period. Averaging would begin the month the change would become
effective. For households certified for 24 months that have one-time
medical expenses, the State agency must use the following procedure. In
averaging any one-time medical expense incurred by a household during
the first 12 months, the State agency must give the household the option
of deducting the expense for one month, averaging the expense over the
remainder of the first 12 months of the certification period, or
averaging the expense over the remaining months in the certification
period. One-time expenses reported after the 12th month of the
certification period will be deducted in one month or averaged over the
remaining months in the certification period, at the household's option.
(4) Anticipating expenses. The State agency shall calculate a
household's expenses based on the expenses the household expects to be
billed for during the certification period. Anticipation of the expense
shall be based on the most recent month's bills, unless the household is
reasonably certain a change will occur. When the household is not
claiming the utility standard, the State agency may anticipate changes
during the certification period based on last year's bills from the same
period updated by overall price increases; or, if only the most recent
bill is available, utility cost increases or

[[Page 712]]

decreases over the months of the certification period may be based on
utility company estimates for the type of dwelling and utilities used by
the household. The State agency shall not average past expenses, such as
utility bills for the last several months, as a method of anticipating
utility costs for the certification period. At certification and
recertification, the household shall report and verify all medical
expenses. The household's monthly medical deduction for the
certification period shall be based on the information reported and
verified by the household, and any anticipated changes in the
household's medical expenses that can be reasonably expected to occur
during the certification period based on available information about the
recipient's medical condition, public or private insurance coverage, and
current verified medical expenses. The household shall not be required
to file reports about its medical expenses during the certification
period. If the household voluntarily reports a change in its medical
expenses, the State agency shall verify the change in accordance with
Sec. 273.2(f)(8)(ii) if the change would increase the household's
allotment. The State agency has the option of either requiring
verification prior to acting on the change, or requiring the
verification prior to the second normal monthly allotment after the
change is reported. In the case of a reported change that would decrease
the household's allotment, or make the household ineligible, the State
agency shall act on the change without requiring verification, though
verification which is required by Sec. 273.2(f)(8) shall be obtained
prior to the household's recertification. If a child in the household
reaches his or her second birthday during the certification period, the
$200 maximum dependent care deduction defined in Sec. 273.9(d)(4) shall
be adjusted in accordance with this section not later than the
household's next regularly scheduled recertification.
(5) Conversion of deductions. The income conversion procedures in
paragraph (c)(2) of this section shall also apply to expenses billed on
a weekly or biweekly basis.
(6) Energy Assistance Payments. Except for payments made under the
Low Income Energy Assistance Act of 1981, the State agency shall prorate
energy assistance payments as provided for in Sec. 273.9(d) over the
entire heating or cooling season the payment is intended to cover.
(7) Households which contain a member who is a disabled SSI
recipient in accordance with paragraphs (2), (3), (4) or (5) of the
definition of a disabled member in Sec. 271.2 or households which
contain a member who is a recipient of SSI benefits and the household is
determined within the 30-day processing standard to be categorically
eligible (as discussed in Sec. 273.2(j)) or determined to be eligible
as an NPA household and later becomes a categorically eligible
household, shall be entitled to the excess medical deduction of Sec.
273.9(d)(3) and the uncapped excess shelter expense deduction of Sec.
273.9(d)(5) for the period for which the SSI recipient is authorized to
receive SSI benefits or the date of the food stamp application,
whichever is later, if the household incurs such expenses. Households,
which contain an SSI recipient as discussed in this paragraph, which are
determined ineligible as an NPA household and later become categorically
eligible and entitled to restored benefits in accordance with Sec.
273.2(j)(1)(iv), shall receive restored benefits using the medical and
excess shelter expense deductions from the beginning of the period for
which SSI benefits are paid, the original food stamp application date or
December 23, 1985, whichever is later, if the household incurs such
expenses.
(8) Child support deduction. State agencies may budget child support
payments prospectively, in accordance with paragraphs (d)(2) through
(d)(5) of this section, or retrospectively, in accordance with Sec.
273.21(b) and Sec. 273.21(f)(2), regardless of the budgeting system
used for the household's other circumstances.
(e) Calculating net income and benefit levels--(1) Net monthly
income. (i) To determine a household's net monthly income, the State
agency shall:
(A) Add the gross monthly income earned by all household members and
the total monthly unearned income of all household members, minus income
exclusions, to determine the household's total gross income. Net losses

[[Page 713]]

from the self-employment income of a farmer shall be offset in
accordance with Sec. 273.11(a)(2)(iii).
(B) Multiply the total gross monthly earned income by 20 percent and
subtract that amount from the total gross income; or multiply the total
gross monthly earned income by 80 percent and add that to the total
monthly unearned income, minus income exclusions.
(C) Subtract the standard deduction.
(D) If the household is entitled to an excess medical deduction as
provided in Sec. 273.9(d)(3), determine if total medical expenses
exceed $35. If so, subtract that portion which exceeds $35.
(E) Subtract allowable monthly dependent care expenses, if any, up
to a maximum amount as specified under Sec. 273.9(d)(4) for each
dependent.
(F) Subtract allowable monthly child support payments in accordance
with Sec. 273.9(d)(7).
(G) Subtract the homeless shelter deduction, if any, up to the
maximum of $143.
(H) Total the allowable shelter expenses to determine shelter costs,
unless a deduction has been subtracted in accordance with paragraph
(e)(1)(i)(G) of this section. Subtract from total shelter costs 50
percent of the household's monthly income after all the above deductions
have been subtracted. The remaining amount, if any, is the excess
shelter cost. If there is no excess shelter cost, the net monthly income
has been determined. If there is excess shelter cost, compute the
shelter deduction according to paragraph (e)(1)(i)(I) of this section.
(I) Subtract the excess shelter cost up to the maximum amount
allowed for the area (unless the household is entitled to the full
amount of its excess shelter expenses) from the household's monthly
income after all other applicable deductions. Households not subject to
a capped shelter expense shall have the full amount exceeding 50 percent
of their net income subtracted. The household's net monthly income has
been determined.
(ii) In calculating net monthly income, the State agency shall use
one of the following two procedures:
(A) Round down each income and allotment calculation that ends in 1
through 49 cents and round up each calculation that ends in 50 through
99 cents; or
(B) Apply the rounding procedure that is currently in effect for the
State's Temporary Assistance for Needy Families (TANF) program. If the
State TANF program includes the cents in income calculations, the State
agency may use the same procedures for food stamp income calculations.
Whichever procedure is used, the State agency may elect to include the
cents associated with each individual shelter cost in the computation of
the shelter deduction and round the final shelter deduction amount.
Likewise, the State agency may elect to include the cents associated
with each individual medical cost in the computation of the medical
deduction and round the final medical deduction amount.
(2) Eligibility and benefits. (i)(A) Households which contain an
elderly or disabled member as defined in Sec. 271.2, shall have their
net income, as calculated in paragraph (e)(1) of this section (except
for households considered destitute in accordance with paragraph (e)(3)
of this section), compared to the monthly income eligibility standards
defined in Sec. 273.9(a)(2) for the appropriate household size to
determine eligibility for the month.
(B) In addition to meeting the net income eligibility standards,
households which do not contain an elderly or disabled member shall have
their gross income, as calculated in accordance with paragraph
(e)(1)(i)(A) of this section, compared to the gross monthly income
standards defined in Sec. 273.9(a)(1) for the appropriate household
size to determine eligibility for the month.
(C) For households considered destitute in accordance with paragraph
(e)(3) of this section, the State agency shall determine a household's
eligibility by computing its gross and net income according to paragraph
(e)(3) of this section, and comparing, as appropriate, the gross and/or
net income to the corresponding income eligibility standard in
accordance with Sec. 273.9(a) (1) or (2).
(D) If a household contains a member who is fifty-nine years old on
the date of application, but who will become

[[Page 714]]

sixty before the end of the month of application, the State agency shall
determine the household's eligibility in accordance with paragraph
(e)(2)(i)(A) of this section.
(E) If a household contains a student whose income is excluded in
accordance with Sec. 273.9(c)(7) and the student becomes 18 during the
month of application, the State agency shall exclude the student's
earnings in the month of application and count the student's earnings in
the following month. If the student becomes 18 during the certification
period, the student's income shall be excluded until the month following
the month in which the student turns 18.
(ii)(A) Except as provided in paragraphs (a)(1), (e)(2)(iii) and
(e)(2)(vi) of this section, the household's monthly allotment shall be
equal to the maximum food stamp allotment for the household's size
reduced by 30 percent of the household's net monthly income as
calculated in paragraph (e)(1) of this section. If 30 percent of the
household's net income ends in cents, the State agency shall round in
one of the following ways:
(1) The State agency shall round the 30 percent of net income up to
the nearest higher dollar; or
(2) The State agency shall not round the 30 percent of net income at
all. Instead, after subtracting the 30 percent of net income from the
appropriate Thrifty Food Plan, the State agency shall round the
allotment down to the nearest lower dollar.
(B) If the calculation of benefits in accordance with paragraph
(e)(2)(ii)(A) of this section for an initial month would yield an
allotment of less than $10 for the household, no benefits shall be
issued to the household for the initial month.
(C) Except during an initial month, all eligible one- and two-person
households shall receive minimum monthly allotments equal to the minimum
benefit and all eligible households with three or more members which are
entitled to $1, $3, and $5 allotments shall receive allotments, of $2,
$4, and $6, respectively, to correspond with current coupon book
determinations.
(iii) For an eligible household with three or more members which is
entitled to no benefits (except because of the proration requirements of
paragraph (a)(1) and the provision precluding issuances of less than $10
in an initial month of paragraph (e)(2)(ii)(B)) of this section:
(A) The State agency shall deny the household's application on the
grounds that its net income exceeds the level at which benefits are
issued; or
(B) The State agency shall certify the household but suspend its
participation, subject to the following conditions:
(1) The State agency shall inform the suspended household, in
writing, of its suspended status, and of its rights and responsibilities
while it is in that status.
(2) The State agency shall set the household's change reporting
requirements and the manner in which those changes will be reported and
processed.
(3) The State agency shall specify which changes shall entitle the
household to have its status converted from suspension to issuance, and
which changes shall require the household to reapply for participation.
(4) The household shall retain the right to submit a new application
while it is suspended.
(5) The State agency shall convert a household from suspension to
issuance status, without requiring an additional certification
interview, and issue its initial allotment, within ten days of the date
the household reports the change.
(6) The State agency shall prorate the household's benefits, in the
first month after the suspension period, from the date the household
reports a change, in accordance with paragraph (a)(1) of this section.
(7) The State agency may delay the work registration of the
household's members until the household is determined to be entitled to
benefits.
(iv) For those eligible households which are entitled to no benefits
in their initial month of application, in accordance with paragraph
(a)(1) or (e)(2)(ii)(B) of this section, but are entitled to benefits in
subsequent months, the State agency shall certify the households
beginning with the month of application.

[[Page 715]]

(v) When a household's circumstances change and it becomes entitled
to a different income eligibility standard, the State agency shall apply
the different standard at the next recertification or whenever the State
agency changes the household's eligibility, benefit level or
certification period, whichever occurs first.
(vi) During a month when a reduction, suspension or cancellation of
allotments has been ordered pursuant to the provisions of Sec. 271.7,
eligible housholds shall have their benefits calculated as follows:
(A) If a benefit reduction is ordered, State agencies shall reduce
the maximum food stamp allotment amounts for each household size by the
percentage ordered in the Department's notice on benefit reductions.
State agencies shall multiply the maximum food stamp allotment amounts
by the percentage specified in the FNS notice; if the result ends in 1
through 99 cents, round the result up to the nearest higher dollar; and
subtract the result from the normal maximum food stamp allotment amount.
In calculating benefit levels for eligible households, State agencies
would follow the procedures detailed in paragraph (e)(2)(ii) of this
section and substitute the reduced maximum food stamp allotment amounts
for the normal maximum food stamp allotment amounts.
(B) Except as provided in paragraphs (a)(1), (e)(2)(ii)(B), and
(e)(2)(vi)(C) of this section, one- and two-person households shall be
provided with at least the minimum benefit.
(C) In the event that the national reduction in benefits is 90
percent or more of the benefits projected to be issued for the affected
month, the provision for a minimum benefit for households with one or
two members only may be disregarded and all households may have their
benefits lowered by reducing maximum food stamp allotment amounts by the
percentage specified by the Department. The benefit reduction notice
issued by the Department to effectuate a benefit reduction will specify
whether minimum benefits for households with one or two members only are
to be provided to households.
(D) If the action in effect is a suspension or cancellation,
eligible households shall have their allotment levels calculated
according to the procedures in paragraph (e)(2)(ii) of this section.
However, the allotments shall not be issued for the month the suspension
or cancellation is in effect. The provision for the minimum benefit for
households with one or two members only shall be disregarded and all
households shall have their benefits suspended or cancelled for the
designated month.
(E) In the event of a suspension or cancellation, or a reduction
exceeding 90 percent of the affected month's projected issuance, all
households, including one and two-person households, shall have their
benefits suspended, cancelled or reduced by the percentage specified by
FNS.
(3) Destitute households. Migrant or seasonal farmworker households
may have little or no income at the time of application and may be in
need of immediate food assistance, even though they receive income at
some other time during the month of application. The following
procedures shall be used to determine when migrant or seasonal
farmworker households in these circumstances may be considered destitute
and, therefore, entitled to expedited service and special income
calculation procedures. Households other than migrant or seasonal
farmworker households shall not be classified as destitute.
(i) Households whose only income for the month of application was
received prior to the date of application, and was from a terminated
source, shall be considered destitute households and shall be provided
expedited service.
(A) If income is received on a monthly or more frequent basis, it
shall be considered as coming from a terminated source if it will not be
received again from the same source during the balance of the month of
application or during the following month.
(B) If income is normally received less often than monthly, the
nonreceipt of income from the same source in the balance of the month of
application or in the following month is inappropriate to determine
whether or not the income is terminated. For example, if income is
received on a quarterly

[[Page 716]]

basis (e.g., on January 1, April 1, July 1, and October 1), and the
household applies in mid-January, the income should not be considered as
coming from a terminated source merely because no further payments will
be received in the balance of January or in February. The test for
whether or not this household's income is terminated is whether the
income is anticipated to be received in April. Therefore, for households
that normally receive income less often than monthly, the income shall
be considered as coming from a terminated source if it will not be
received in the month in which the next payment would normally be
received.
(ii) Households whose only income for the month of application is
from a new source shall be considered destitute and shall be provided
expedited service if income of more than $25 from the new source will
not be received by the 10th calendar day after the date of application.
(A) Income which is normally received on a monthly or more frequent
basis shall be considered to be from a new source if income of more than
$25 has not been received from that source within 30 days prior to the
date the application was filed.
(B) If income is normally received less often than monthly, it shall
be considered to be from a new source if income of more than $25 was not
received within the last normal interval between payments. For example,
if a household applies in early January and is expecting to be paid
every 3 months, starting in late January, the income shall be considered
to be from a new source if no income of more than $25 was received from
the source during October or since that time.
(iii) Households may receive both income from a terminated source
prior to the date of application, and income from a new source after the
date of application, and still be considered destitute if they receive
no other income in the month of application and income of more than $25
from the new source will not be received by the 10th day after the date
of application.
(iv) Destitute households shall have their eligibility and level of
benefits calculated for the month of application by considering only
income which is received between the first of the month and the date of
application. Any income from a new source that is anticipated after the
day of application shall be disregarded.
(v) Some employers provide travel advances to cover the travel costs
of new employees who must journey to the location of their new
employment. To the extent that these payments are excluded as
reimbursements, receipt of travel advances will not affect the
determination of when a household is destitute. However, if the travel
advance is by written contract an advance of wages that will be
subtracted from wages later earned by the employee, rather than a
reimbursement, the wage advance shall count as income. In addition, the
receipt of a wage advance for travel costs of a new employee shall not
affect the determination of whether subsequent payments from the
employer are from a new source of income, nor whether a household shall
be considered destitute. For example, if a household applies on May 10,
has received a $50 advance for travel from its new employer on May 1
which by written contract is an advance on wages, but will not receive
any other wages from the employer until May 30, the household shall be
considered destitute. The May 30 payment shall be disregarded, but the
wage advance received prior to the date of application shall be counted
as income.
(vi) A household member who changes jobs but continues to work for
the same employer shall be considered as still receiving income from the
same source. A migrant farmworker's source of income shall be considered
to be the grower for whom the migrant is working at a particular point
in time, and not the crew chief. A migrant who travels with the same
crew chief but moves from one grower to another shall be considered to
have moved from a terminated income source to a new source.
(vii) The above procedures shall apply at initial application and at
recertification, but only for the first month of each certification
period. At recertification, income from a new source shall be
disregarded in the first month of the new certification period

[[Page 717]]

if income of more than $25 will not be received from this new source by
the 10th calendar day after the date of the household's normal issuance
cycle.
(4) Thrifty Food Plan (TFP) and Maximum Food Stamp Allotments.
(i) Maximum food stamp allotment level. Maximum food stamp
allotments shall be based on the TFP as defined in Sec. 271.2, and they
shall be uniform by household size throughout the 48 contiguous States
and the District of Columbia. The TFP for Hawaii shall be the TFP for
the 48 States and DC adjusted for the price of food in Honolulu. The
TFPs for urban, rural I, and rural II parts of Alaska shall be the TFP
for the 48 States and DC adjusted by the price of food in Anchorage and
further adjusted for urban, rural I, and rural II Alaska as defined in
Sec. 272.7(c). The TFPs for Guam and the Virgin Islands shall be
adjusted for changes in the cost of food in the 48 States and DC,
provided that the cost of these TFPs may not exceed the cost of the
highest TFP for the 50 States. The TFP amounts and maximum allotments in
each area are adjusted annually and will be prescribed in a table posted
on the FNS web site, at www.fns.usda.gov/fsp.
(ii) Adjustment. Effective October 1, 1996, the maximum food stamp
allotments must be based on 100% of the cost of the TFP as defined in
Sec. 271.2 of this chapter for the preceding June, rounded to the
nearest lower dollar increment, except that on October 1, 1996, the
allotments may not fall below those in effect on September 30, 1996.
(f) Certification periods. The State agency must certify each
eligible household for a definite period of time. State agencies must
assign the longest certification period possible based on the
predictability of the household's circumstances. The first month of the
certification period will be the first month for which the household is
eligible to participate. The certification period cannot exceed 12
months, except as specified in paragraphs (f)(1) and (f)(2) of this
section:
(1) Households in which all adult members are elderly or disabled.
The State agency may certify for up to 24 months households in which all
adult members are elderly or disabled. The State agency must have at
least one contact with each household every 12 months. The State agency
may use any method it chooses for this contact.
(2) Households residing on a reservation. The State agency must
certify for 24 months those households residing on a reservation which
it requires to submit monthly reports in accordance with Sec. 273.21,
unless the State agency obtains a waiver from FNS. In the waiver request
the State agency must include justification for a shorter period and
input from the affected Indian tribal organization(s). When households
move off the reservation, the State agency must either continue their
certification periods until they would normally expire or shorten the
certification periods in accordance with paragraph (f)(4) of this
section.
(3) Certification period length. The State agency should assign each
household the longest certification period possible, consistent with its
circumstances.
(i) Households should be assigned certification periods of at least
6 months, unless the household's circumstances are unstable or the
household contains an ABAWD.
(ii) Households with unstable circumstances, such as households with
zero net income, and households with an ABAWD member should be assigned
certification periods consistent with their circumstances, but generally
no less than 3 months.
(iii) Households may be assigned 1- or 2-month certification periods
when it appears likely that the household will become ineligible for
food stamps in the near future.
(4) Shortening certification periods. The State agency may not end a
household's certification period earlier than its assigned termination
date, unless the State agency receives information that the household
has become ineligible, or the household has not complied with the
requirements of Sec. 273.12(c)(3). Loss of public assistance or a
change in employment status is not sufficient in and of itself to meet
the criteria necessary for shortening the certification period. The
State agency must close the household's case or adjust the household's
benefit amount in accordance with Sec. 273.12(c)(1)

[[Page 718]]

or (c)(2) in response to reported changes. The State agency may not use
the Notice of Expiration to shorten a certification period.
(5) Lengthening certification periods. State agencies may lengthen a
household's current certification period once it is established, as long
as the total months of the certification period do not exceed 24 months
for households in which all adult members are elderly or disabled, or 12
months for other households. If the State agency extends a household's
certification period, it must advise the household of the new
certification ending date with a notice containing the same information
as the notice of eligibility set forth in paragraph (g)(1)(i)(A) of this
section.
(g) Certification notices to households. (1) Initial applications.
State agencies shall provide applicants with one of the following
written notices as soon as a determination is made, but no later than 30
days after the date of the initial application:
(i) Notice of eligibility. (A) If an application is approved, the
State agency shall provide the household with written notice of the
amount of the allotment and the beginning and ending dates of the
certification period. The household shall also be advised of variations
in the benefit level based on changes anticipated at the time of
certification. If the initial allotment contains benefits for both the
month of application and the current month's benefits, the notice shall
explain that the initial allotment includes more than 1 month's
benefits, and shall indicate the monthly allotment amount for the
remainder of the certification period. The notice shall also advise the
household of its right to a fair hearing, the telephone number of the
food stamp office (a toll-free number or a number where collect calls
will be accepted for households outside the local calling area), and, if
possible, the name of the person to contact for additional information.
If there is an individual or organization available that provides free
legal representation, the notice shall also advise the household of the
availability of the services. The State agency may also include in the
notice a reminder of the household's obligation to report changes in
circumstance and of the need to reapply for continued participation at
the end of the certification period. Other information which would be
useful to the household may also be included.
(B) In cases where a household's application is approved on an
expedited basis without verification, as provided in Sec. 273.2(i), the
notice shall explain that the household must provide the verification
which was waived. If the State agency has elected to assign a longer
certification period to some households certified on an expedited basis,
the notice shall also explain the special conditions of the longer
certification period, as specified in Sec. 273.2(i), and the
consequences of failure to provide the postponed verification.
(C) For households provided a notice of expiration at the time of
certification, as required in Sec. 273.14(b), the notice of eligibility
may be combined with the notice of expiration or separate notices may be
sent.
(ii) Notice of denial. If the application is denied, the State
agency shall provide the household with written notice explaining the
basis for the denial, the household's right to request a fair hearing,
the telephone number of the food stamp office (a toll-free number or a
number where collect calls will be accepted for households outside the
local calling area), and, if possible, the name of the person to contact
for additional information. If there is an individual or organization
available that provides free legal representation, the notice shall also
advise the household of the availability of the service. A household
which is potentially categorically eligible but whose food stamp
application is denied shall be asked to inform the State agency if it is
approved to receive PA and/or SSI benefits or benefits from a State or
local GA program. In cases where the State agency has elected to use a
notice of denial when a delay was caused by the household's failure to
take action to complete the application process, as provided in Sec.
273.2(h)(2), the notice of denial shall also explain: The action that
the household must take to reactivate the application; that the case
will be reopened without a new application if action is taken within 30
days of the date the notice of denial was mailed; and

[[Page 719]]

that the household must submit a new application if, at the end of the
30-day period, the household has not taken the needed action and wishes
to participate in the program. If the State agency chooses the option
specified in Sec. 273.2(h)(2) of reopening the application in cases
where verification is lacking only if household provides verification
within 30 days of the date of the initial request for verification, the
State agency shall include on the notice of denial the date by which the
household must provide the missing verification.
(iii) Notice of pending status. If the application is to be held
pending because some action by the State is necessary to complete the
application process, as specified in Sec. 273.2(h)(2), or the State
agency has elected to pend all cases regardless of the reason for delay,
the State agency shall provide the household with a written notice which
informs the household that its application has not been completed and is
being processed. If some action by the household is also needed to
complete the application process, the notice shall also explain what
action the household must take and that its application will be denied
if the household fails to take the required action within 60 days of the
date the application was filed. If the State agency chooses the option
specified in Sec. 273.2(h) (2) and (3) of holding the application
pending in cases where verification is lacking only until 30 days
following the date verification was initially requested, the State
agency shall include on the notice of pending status the date by which
the household must provide the missing verification.
(2) Applications for recertification. The State agency shall provide
households that have filed an application by the 15th of the last month
of their certification period with either a notice of eligibility or a
notice of denial by the end of the current certification period if the
household has complied with all recertification requirements. The State
agency shall provide households that have received a notice of
expiration at the time of certification, and have timely reapplied, with
either a notice of eligibility or a notice of denial not later than 30
days after the date of the household's initial opportunity to obtain its
last allotment.

[Amdt. 132, 43 FR 47889, Oct. 17, 1978]

Editorial Note: For Federal Register citations affecting Sec.
273.10, see the List of CFR Sections Affected, which appears in the
Finding Aids section of the printed volume and on GPO Access.