## Facts

- The U.S. Department of Agriculture’s Food and Nutrition Service (FNS) issued a notice of proposed rulemaking to amend Food Stamp Program regulations in 7 C.F.R. parts 272, 273, 274, and 277.
- The proposal implements statutory changes from the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) and subsequent amendments affecting program eligibility and administration.
- Regulated and affected parties include state agencies administering benefits, noncitizen applicants and participants, and households with fluctuating income or vehicle ownership.
- The proposed rule addresses noncitizen eligibility categories, sponsored noncitizen treatment, certification/recertification practices, and income and resource calculations.
- The proposal seeks both statutory compliance and reduction of “overly prescriptive” requirements, with an emphasis on improving administration and access for eligible households.
- FNS projected substantial program savings over FY 2000–FY 2004, attributed mainly to restrictions on noncitizen eligibility and counting most state and local energy assistance as income.
- FNS solicited public comment with a stated deadline of May 1, 2000.

## Issues

1. How should FNS translate PRWORA and later amendments into administrable noncitizen eligibility categories and procedures for the Food Stamp Program?
2. What certification and recertification rules best satisfy statutory mandates while reducing administrative burdens and serving households with changing circumstances?
3. How should vehicles be treated as countable resources, including whether certain vehicles should qualify as “inaccessible resources” when they cannot realistically be sold for a significant return?
4. Which payments and assistance types should be counted as income or excluded to determine eligibility and benefit amounts?
5. What standardized methods and state options should be permitted to simplify administration while maintaining required protections (e.g., notices, hearings, and verification tools)?

## Decision

- FNS proposed regulatory amendments to implement PRWORA-era noncitizen restrictions, including rules defining eligible and ineligible noncitizen categories and procedures affecting sponsored noncitizens’ income and resources.
- FNS proposed certification changes, including longer certification periods for elderly or disabled households (up to 24 months) and for other households (up to 12 months), and proration of benefits after breaks in certification.
- FNS proposed income and resource revisions, including counting certain transitional housing payments and most state and local energy assistance as income, and excluding earnings of students under age 18.
- FNS proposed to treat certain vehicles as potentially excludable “inaccessible resources” when they cannot be sold for a significant return, and to revise vehicle policy to reduce barriers for low-income workers who need reliable transportation.
- FNS proposed increased state flexibility through optional standardized amounts and operational tools, alongside clarifications to notice and related procedural requirements.

## Legal Principles

- An agency may implement complex statutory amendments through detailed rules that define eligibility categories, documentation requirements, and benefit-calculation methods within delegated authority.
- Noncitizen eligibility determinations in federally funded benefits programs may be restricted by statute and operationalized through regulatory definitions and procedures, including rules governing sponsored noncitizens.
- Certification rules may be structured to balance administrative efficiency with statutory mandates and recipient protections, including limits on certification periods and requirements for handling breaks in eligibility.
- Resource rules may exclude assets deemed “inaccessible” under program statutes and regulations when liquidation is not realistically possible or would not yield a significant return, potentially including certain vehicles.
- Income-counting provisions may include or exclude specified payments based on statutory direction and regulatory policy judgments intended to preserve consistent eligibility and benefit determinations.

## Conclusion

The proposed rule set out FNS’s plan to implement welfare-reform amendments in the Food Stamp Program by restricting noncitizen eligibility as required by statute, revising certification and procedural rules, and adjusting income and resource treatment—most notably by permitting certain vehicles to be treated as inaccessible resources—while aiming to streamline administration, protect eligible households’ access, and achieve projected program cost reductions.


Food Stamp Program: Noncitizen Eligibility, and Certification Provisions of Pub. L. 104-193, as Amended by Pub. L. Nos. 104-208, 105-33, and 105-185, 65 Fed. Reg. 10,856 (Feb. 29, 2000)