Extracted text

OCR Page 1 of 41
We agree with the commenters and are amending paragraph (j)(2) to incorporate into current regulations much of the Department's July 14, 1999, guidance on categorical eligibility, with modifications. It has come to our attention that this policy has allowed State agencies to use categorical eligibility beyond the scope of what was originally intended. The original intent of categorical eligibility was to reduce the administrative burden on State agencies by simplifying the certification process and eliminating the need for the eligibility worker to apply two different income eligibility tests for a household applying for public assistance and food stamps. Therefore, Congress allowed the State agency to apply the public assistance income and resource tests to applicants of both programs, thus eliminating the need to satisfy a second income eligibility test for the Food Stamp Program. However, the context for categorical eligibility changed after PRWORA, particularly because TANF is a block grant and can be used to support in- kind and non-cash benefits and services to low-income working families who may or may not be required to meet income eligibility criteria. The four purposes of the TANF block grant are to (1) provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives; (2) end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage; (3) prevent and reduce the incidence of out-of-wedlock pregnancies and establish annual numerical goals for preventing and reducing the incidence of these pregnancies; and (4) encourage the formation and maintenance of two-parent families. Funds spent to meet the first and second purposes of the block grant must be spent on "needy" families, as defined by the State, and thus applicants must meet the State's definition of "needy. Funds spent to meet the third and fourth purposes of the block grant are not limited to "needy families."