In a bookend to its proposal to toughen the time limit on food stamps for able-bodied adults, the USDA is working on a regulation to reduce the number of people who are automatically considered for SNAP benefits because they receive welfare assistance. House Republicans proposed stricter rules on so-called categorical eligibility as part of the 2018 farm bill but lost on that point, just as they did on proposals for broader and stricter work rules for SNAP recipients.
Agriculture Secretary Sonny Perdue said the USDA would release its categorical eligibility proposal “relatively soon,” reported Bloomberg on Wednesday. Conservatives have targeted “cat el,” as it’s known, repeatedly over the years, arguing that it can be triggered simply by calling a hotline or receiving a brochure rather than by genuine need. “Cat el” advocates say it helps families transition to better-paying jobs. Categorical eligibility is popular among states because it reduces the cost of administering public assistance programs by streamlining regulations.
Many states employ broad-based categorical eligibility, “under which a household automatically qualifies [for SNAP] because it receives or is authorized to receive noncash benefits under the Temporary Assistance for Needy Families (TANF) program” — in other words, welfare — says the Congressional Budget Office. “At the state’s option, households can qualify for SNAP benefits if their gross monthly income is up to 200 percent of the federal poverty guidelines.”
Last fall, the USDA said it would write a regulation to limit “cat el” to households that receive cash or other substantial benefits through TANF. The stricter rule would target eligibility “toward low-income households most in need,” said a USDA description. The proposal would not affect categorical eligibility through other programs, such as Supplemental Security Income (SSI). The proposal is under review at the White House.
House Republicans backed a new standard, called authentic categorical eligibility, in their farm bill last year that would be “based on receipt of SSI, General Assistance, or cash or other TANF benefits such as child care, transportation assistance, or counseling … as opposed to nominal services,” such as hotlines. The CBO said the House-passed bill would limit categorical eligibility to families that have incomes up to 130 percent of the federal poverty level and receive cash assistance or substantial services. The change in income limit would disqualify about 400,000 households, it said.