Barbara Lopez and Lou Hankins National Office and Southwest Regional Office

1. Food Distribution Program on Indian Reservations: Income Deductions and Resource Eligibility Final Rule Barbara Lopez and Lou Hankins National Office and Southwest Regional Office Food and Nutrition Service US Department of Agriculture NAFDPIR June 2014

2. Agenda/Topics • Overview of the Rule • Main Provisions of the Rule • Examples • Frequently Asked Questions • Practice Activities • Questions

3. Background • NAFDPIR Resolution • Proposed rule • Published January 11, 2012 • Comment period ended April 10, 2012 • Final rule • Published August 27, 2013 • Effective • September 26, 2013 http://www.regulations.gov

4. Overview of the Rule Provisions of the Rule: • Eliminatethe household resource eligibility criterion. • Expandthe current deductions for medical expenses. • Establisha new deduction for shelter and utility expenses. • Addhousehold verification requirements relating to the proposed medical and shelter/utility expense deductions, and revise household reporting requirements.

5. 1st Provision - Elimination of the Household Resource Test • Final rule removes the resource test for determining FDPIR eligibility. • Applicant households still need to be within maximum FDPIR income limits and other eligibility criteria. • Non-recurring lump sum payments and non-monthly per capita payments are RESOURCES.

6. FNS Handbook 501 UPDATED CHAPTER 4 SECTION 4 – RESOURCES 4400 RESOURCES Household resources (e.g., cash on-hand, money in checking or saving accounts, stocks, bonds, saving certificates) are excluded when determining household eligibility.

7. FDPIR Application as ofSeptember 26, 2013

8. FDPIR Eligibility Worksheet as ofSeptember 26, 2013

9. RESOURCES - Frequently Asked Questions • What are non-recurring lump-sum payments and non-monthly per capita payments and how are they treated in FDPIR?

10. According to the FNS Handbook 501 4549 Miscellaneous Exclusions D. Lump-Sum Payments. Money received in the form of a non-recurring lump-sum payment, including but not limited to income tax refunds, Tribal per capita payments received less frequently than monthly, rebates, or credits; retroactive lump-sum social security, SSI, PA, and railroad retirement pension or other payment; retroactive lump-sum insurance settlements; or refunds of security deposits on rental property or utilities.

11. RESOURCES - Frequently Asked Questions How are monthly per capita payments treated in FDPIR? 3. What if a household's only source of income is quarterly per capita payments?

12. Complete Zero Income Form

13. 2nd Provision – Expanded Medical Deduction • The rule expands the current income deduction for medical expenses to include other monthly medical expenses in excess of $35 for elderly or disabled household members. • This expanded medical deduction provision will more closely align FDPIR’s income eligibility rules with SNAP policy. • Only for out-of-pocket expenses.

14. Examples of Allowable Medical Expenses* • Medical and dental care • Hospitalization or outpatient treatment, nursing care, and nursing home care • Prescription drugs • Health and hospitalization insurance policy premiums • Medicare premiums • Dentures, hearing aids, and prosthetics • Securing and maintaining a seeing eye or hearing dog • Eye glasses • Reasonable cost of transportation and lodging to obtain medical treatment or services • Maintaining an attendant, homemaker, home health aide, child care services, or housekeeper *This is not an exhaustive list! See FNS Handbook 501, Chapter 4, Section 4554

15. MONTHLY EXCESSMEDICAL EXPENSE DEDUCTIONACTIVITY

16. 3rd Provision – Shelter and Utility Expense Deduction • Final Rule establishes a region-specific standard monthly shelter /utility expense deduction. • Deduction more closely aligns FDPIR with SNAP policy. • Proof of at least one allowable shelter/utility expense in order to qualify for full standard deduction.

17. Examples of Allowable Shelter and Utility Expenses* • Continuing charges for the shelter occupied by the household, including rent, mortgage, condominium and association fees • Property taxes, State and local assessments, and insurance for the structure itself • Cost of fuel for heating or cooling; electricity or fuel used for purposes other than heating or cooling; water; sewerage; well installation and maintenance; septic tank system installation and maintenance; garbage and trash collection; all service fees required to provide service for one telephone • Shelter costs for the home if temporarily not occupied by the household *This is not an exhaustive list! See FNS Handbook 501, Chapter 4, Section 4555

18. FY 2014 FDPIR Standard Shelter/Utility Expense Deductions* *Included on FY 2014 Exhibit M

19. 4th Provision – Verification Requirements • Final Rule adds new household verification requirements related to the income deductions. • Households will be required to provide verification of: • Allowable out-of-pocket medical expenses • At least one shelter or utility expense

20. Eligibility Worksheet Deductions

21. 4th Provision – Household Reporting Requirements • Households will now be required to report the following: • A change in household composition (existing provision) • An increase in gross monthly income of more than $100 (revised provision) • A change in residence (new provision) • When the household no longer incurs a shelter or utility expense (new provision) • A change in the legal obligation to pay child support (new provision)

22. Reporting Requirements Must be Included on the…. FDPIR Notice of Action

23. Informing Participants of the Reporting Requirements is also a part of the…. FDPIR Interview Process (Household Rights & Responsibilities)

24. REPORTING CHANGES STATEMENT REPORTING CHANGES: You are required to report changes in household size or composition; increases in gross monthly income of more than $100; changes in residence and/or address; when the household no longer incurs a shelter or utility expense; or a change in the legal obligation to pay child support to the Food Distribution Office within ten calendar days after the change becomes known to the household. If you fail to report a change and, as a result, receive USDA foods that you were not entitled to, a claim will be filed against your household.

25. Handbook & Exhibit M have been updated. Also the FDPIR Website!

26. FDPIR Resources Visit the FDPIR page of the FDD website for more information: http://www.fns.usda.gov/fdd/programs/fdpir/ • Proposed Rule • Published Final Rule • FNS Handbook 501 for FDPIR

27. Thank you!