SNAP Eligibility: Other Disqualifications

In addition to work-related disqualifications, like the ABAWD time limit, Section 6 of the Food and Nutrition Act of 2008 (codified at 7 U.S.C. 2015) provides causes for temporary or permanent disqualification from the SNAP program. The House and Senate conference proposals would add some additional disqualifications and amend some existing disqualifications. In addition to the discussion below, these disqualification provisions are summarized in Table A-5.

College Students, Lottery Winners

Under current law, for the most part, college students (attending higher education courses halftime or more) between ages 18 and 49 are ineligible for SNAP. A student enrolled in an institution of higher education more than half-time is only eligible for SNAP benefits if the individual meets at least one of the following criteria: (1) under 18 years old or age 50 or older; (2) disabled; (3) employed at least 20 hours per week or participating in a work-study program during the school year; (4) a parent (in some circumstances); /36  (5) receiving TANF cash assistance benefits; or (6) enrolled in school because of participation in certain programs. /37

Also under current law, there is no provision that specifically addresses lottery or gambling; however, the SNAP program's means tests would appear to limit the increase in income or wealth that would be associated with significant winnings. In several high-profile instances recently, SNAP participants won large sums in the lottery, and the state agency learned of their windfall from media reports.

House and Senate Proposals: Identical Changes for College Students' and Lottery Winners' Disqualification

Both conference proposals would make identical changes regarding post-secondary students and gambling winnings:

•Regarding post-secondary students, the bills would add the requirement that those students enrolled in post-secondary institutions as a requirement of participation in "SNAP Employment and Training," must be enrolled in certain employment-oriented training to qualify for SNAP; specifically, this would include certain career and technical education, remedial courses, basic adult education, literacy, or English as a second language.

•The bills would create more specific rules that would make households that receive "substantial lottery or gambling winnings" (as determined by USDA) ineligible for SNAP until the household meets the SNAP resources (assets) and income eligibility limits. State SNAP agencies would be required to establish agreements with the state gaming agency in order to make determinations of winnings. /38

Drug Testing

Under current law, SNAP applicants and participants can only be subjected to testing for controlled substances under certain state options. For example, a state may require a SNAP applicant to pass a drug test, if such a test is part of the state’s modification to the drug felony disqualification (see next section). /39

House Proposal: State Option to Offer Drug Testing Requirement /40

The House would propose to allow states to enact legislation authorizing drug testing for SNAP applicants. Such state policies would be implemented at full cost to the state.

Felony Convictions

Under current law, the only criminal convictions that can impact eligibility for SNAP benefits are drug felony offenses (with some states opting out of or modifying the drug felony disqualification).

House and Senate Proposals: Disqualification of Specified Ex-Offenders /40

Both the House and Senate conference proposals include provisions that would broaden the exoffender applicants that would be disqualified for SNAP. Both Section 4020 of the Senate and Section 4037 of House proposal would bar from receiving benefits individuals convicted of specified federal crimes (including murder, rape, certain crimes against children), and state offenses determined by the Attorney General to be substantially similar. /41

The amendment would still allow the disqualified ex-offender's household members to apply for and potentially receive benefits, but the household's benefit amount would likely be smaller than if the ex-offender was included. The amendments would require the state agency that administers SNAP benefits to collect, in writing, information on SNAP applicant's convictions.

The Senate and House proposals are identical in their language, except that the House includes an additional provision to assure that the policy would affect only those with convictions after the date of the provision's enactment. /42

SNAP Benefit Calculation

Becoming eligible for SNAP is only one part of the application process. Once deemed eligible, a household's benefits are calculated based on the household's size, income, and SNAP-deductible expenses. A household's net income is determined by subtracting from the household's gross income certain specified expenses and figures. In addition to a standard deduction (available to all households), there are deductions to account for the specific circumstances of a household.

Examples of SNAP deductions are the excess shelter deduction (a figure intended to account for variations in the cost of living) and for--households that include the elderly and disabled--an excess medical expenses deduction (a figure intended to account for variations in a household's health costs). Once eligible, 30% of the household's net income is subtracted from USDA's monthly maximum benefit (for household size) to determine the monthly benefit.

The conference proposals, for the most part, would maintain current federal law on SNAP benefit calculation; however, both bills would change the way the excess shelter deduction is calculated (specifically, the treatment of energy assistance payments). This is discussed in more detail in the next section.

The House conference proposal also included a specification for the excess medical expenses deduction.

This provision is not discussed below, but is included in a summary table of the SNAPbenefit calculation provisions, Table A-6.

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36.  An otherwise ineligible student is eligible for SNAP if the student is (1) a single parent enrolled in school full-time caring for a dependent under the age of 12 years old, (2) a parent caring for a dependent under age 6, or (3) a parent caring for a child between the ages of 5 and 12 years old for whom child care is not available to enable the parent to both attend class and work 20 or more hours per week.

37.  A program under title I of the Workforce Investment Act, a SNAP Employment and Training program, a program under section 236 of the Trade Act of 1974, a work incentive program under title IV of the Social Security Act, or "another program for the purpose of employment and training operated by a state or local government, as determined to be appropriate by the Secretary."  7 U.S.C. 2015(e).

38.  The Senate Committee's report from last Congress' bill S. 3240 (S.Rept. 112-203) cited a May 2011 lottery winner’s participation in SNAP, describing that, while the bill intends to prohibit such cases in the future, the Committee "does not intend to increase the administrative burden on states by instituting extensive oversight of private or charitable gaming activities, such as those that occur at senior centers, churches, private homes or other noncommercial gaming. Further, it is not the intent of the Committee that the Secretary be required to impose statutory requirements that may otherwise be waived under State option in this Act. The Committee encourages the Secretary to evaluate the criteria for substantial winnings in a manner that does not produce an outcome that increases poverty."

39.  According to USDA-FNS’s most recent state options report (August 2012), only Maryland, Minnesota, Wisconsin have a modified drug felon disqualification policy that requires drug testing for such felons.

40.  Drug-testing and crime-related restrictions in SNAP are discussed in CRS Report R42394, Drug Testing and Crime-Related Restrictions in TANF, SNAP, and Housing Assistance, by Maggie McCarty et al., pp. 10-15.

41.  For further discussion of these ex-offender disqualification proposals, including crimes specified, CRS has released a congressional memorandum. Congressional clients may request a copy from Randy Alison Aussenberg at raussenberg@crs.loc.gov or Richard M. Thompson II at rthompson@crs.loc.gov.

42.  In addition to their cost estimate of the Senate-reported bill, CBO composed an official cost estimate for the Senate floor amendment which added the ex-offender provision to the bill before it passed the Senate. See CBO website, http://cbo.gov/publication/44905. They estimate that the provision would reduce spending by as little as $21 million or as much as $185 million over 10 years (FY2014-2023), depending upon whether the provision is interpreted to apply to convictions that occurred before the change to SNAP eligibility law.

43.  For further details and analysis of this policy, please see CRS Report R42591, The Next Farm Bill: Changing the Treatment of LIHEAP Receipt in the Calculation of SNAP Benefits, by Randy Alison Aussenberg and Libby Perl.