Federally Mandated Reduction, Suspension, or Cancellation of Benefits 430-05-95

(Revised 01/01/21 ML 3602)

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IM 5445

IM 5423 Amended

IM 5423

 

 

The Food and Nutrition Act of 2008 sets limits on the amount of money that can be appropriated each year for SNAP and prohibits spending money greater than appropriated by Congress.

 

Reduction

If a benefit reduction of less than 90% is ordered, a revised Thrifty Food Plan will be issued and counties must recompute benefits using the reduced Thrifty Food Plan amount.

Unless the ordered reduction amount is 90% or greater, a suspension or cancellation of benefits is ordered, a minimum issuance of $16 must be made for all eligible 1- and 2-person households. The minimum $16 issuance does not apply to households with 3 or more members.

Households that receive expedited service in months in which reductions are in effect and that are determined eligible must be issued benefits in accordance with the revised Thrifty Food Plan.

 

Suspension and Cancellation

If FNS orders a suspension or cancellation, eligible households must have benefit levels calculated according to routine procedures including expedited services, however, the benefits are not issued.

Expedited applications and application for review must be processed within the 7-day time frame, however benefits must not be issued.

Lifting of Suspension

Upon being notified by the State Office that a suspension of benefits is over, counties must act immediately to resume issuing benefits to certified households.

 

Affected Benefits

Benefits representing underpayments or retroactive benefits for a prior month(s) when benefit reduction, suspension or cancellation has not been ordered, are not reduced, suspended or canceled, even though they are issued during an affected month.

 

Notification of Eligible Households

Reduction, suspension or cancellation of benefits are mass changes, and a 10-day advance notice is not required, however, an adequate notice is required.

 

Underpayments

Households whose benefits are reduced or cancelled as the result of a FNS order are not entitled to underpayments at a future date.

 

Exception:

If there is a surplus of funds as a result of the reduction or cancellation, FNS may direct that affected households be promptly provided with underpayments. Underpayments are tracked and completed through the eligibility system.

 

Review Periods

Reduction, suspension or cancellation of benefits in a given month have no effect on review periods assigned. Households whose review periods expire during a reduction, a suspension or cancellation month must be reviewed.

 

Fair Hearings

Any household that has benefits reduced, suspended or cancelled as a result of an order issued by FNS may request a fair hearing subject to the following conditions:

1. A household believes the benefit level was computed incorrectly.
2. A household believes the provisions were misinterpreted.

Since the reduction, suspension or cancellation would be necessary to avoid an expenditure of funds beyond those appropriated by Congress, a household does not have a right to continuation of benefits pending a fair hearing.

A fair hearing will be denied to those households who are merely disputing the fact that a reduction, suspension or cancellation was ordered.

A household may receive underpayments if it is determined that benefits were reduced by more than the amount ordered in the FNS reduction.

 

Issuance Services

Counties must have issuance services available to serve households receiving underpayments for a prior unaffected month.

 

Non-Compliance Penalties

Noncompliance with an FNS ordered reduction, suspension, or cancellation of benefits by the State Office or any county may result in statewide cancellation of 100% of federal administrative reimbursement for the affected periods and billing for the total amount of SNAP benefits overissued during the period.