Food Stamp Penalty Income (FSPI) is the TANF and/or SSI payment amount reduction applied as income for SNAP when the TANF or SSI is reduced or closed because of a program violation.
A food stamp penalty income (FSPI) will show in block C.47 on the EC page in IMS. It will count on the case as unearned income. This penalty income is directly related to the TANF benefit.
A SNAP household’s food benefit amount does not increase when the benefit received from another program is reduced, suspended, or terminated because of a penalty imposed for an intentional failure to comply with a requirement of that program.
Policy 340:10-2-2 #4 explains the TANF penalty by continuing to count the previous TANF payment standard as income. The amount of the penalty reduction applies as FSPI for SNAP per 340:50-7-29(c)(1)(A).
FSPI can be removed using the Food Stamp Penalty Update (FSPU) transaction when one of the following applies:
- TANF cash assistance is recertified within 60 calendar days of the effective date of closure
- Person becomes employed
- Person has not complied with TANF Work requirements within 60 calendar days from the effective date of the TANF closure
Reference the following articles for additional information on Food Stamp Penalty Income:
- TANF: How to Remove TANF Work Sanction (52A Closure) Penalty Income
- SNAP: Income: Procedure for SSI Related Food Stamp Penalty Income (FSPI)
- AFS Policy: Food Stamp Penalty Income (FSPI)
- AFS Policy: Penalty Period
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