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Finally, several commenters requested that FNS amend current rules at section 273.2(j)(2)(vii)(F) which prohibit States from denying categorically eligible households when they are eligible for no food stamp benefit. One commenter noted that as a result of the Department's July 1999 guidance on categorical eligibility, significantly more households are likely to be categorically eligible but eligible for no food stamp benefit due to their income. To require States to certify such households for zero benefits would be administratively burdensome and could discourage States from adopting expansive categorical eligibility policies. The commenter recommended that the regulations should be revised to give States the same option to treat categorically eligible households that are eligible for zero benefits in the same manner as they treat households that are not categorically eligible: where a household's net income exceeds the level at which benefits are provided, States should be allowed to choose between denying the application or certifying the case but suspending benefits. We agree with the commenters that allowing States to deny categorically eligible households when they are eligible for no food stamp benefit would alleviate administrative burdens on States and eliminate a potential barrier to States adopting more expansive categorical eligibility policies. Therefore we are amending current rules at section 273.2(j)(2)(vii)(F) to make this change.

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    "ocrText": "Finally, several commenters requested that FNS amend current rules at section\n273.2(j)(2)(vii)(F) which prohibit States from denying categorically eligible households\nwhen they are eligible for no food stamp benefit. One commenter noted that as a result of\nthe Department's July 1999 guidance on categorical eligibility, significantly more\nhouseholds are likely to be categorically eligible but eligible for no food stamp benefit\ndue to their income. To require States to certify such households for zero benefits would\nbe administratively burdensome and could discourage States from adopting expansive\ncategorical eligibility policies. The commenter recommended that the regulations should\nbe revised to give States the same option to treat categorically eligible households that are\neligible for zero benefits in the same manner as they treat households that are not\ncategorically eligible: where a household's net income exceeds the level at which benefits\nare provided, States should be allowed to choose between denying the application or\ncertifying the case but suspending benefits.\nWe agree with the commenters that allowing States to deny categorically eligible\nhouseholds when they are eligible for no food stamp benefit would alleviate\nadministrative burdens on States and eliminate a potential barrier to States adopting more\nexpansive categorical eligibility policies. Therefore we are amending current rules at\nsection 273.2(j)(2)(vii)(F) to make this change."
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