SNAP: Income: Food Stamp Penalty Income (FSPI) FAQS

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.

The following are FAQS regarding Food Stamp Penalty Income (FSPI)

Q1. The TANF benefit has been closed for reason “52A” or “29B.” What will be the FSPI amount?

A1. The FSPI will be the payment standard for the household at the time the TANF benefit was closed. For example, the TANF benefit for a household of 3 is $292. The FSPI would be $292 for this household.

Q2. A sanction has been imposed by the Social Security Administration for failure of the client to cooperate in determining eligibility for SSI benefits (a means-tested program). May we remove this sanction in the county office? 

A2. No. OKDHS county office staff may not remove this sanction. The sanction is imposed by Social Security and must be removed by them at the time the person complies. 

Q3. A household applies for TANF and FS benefits. The applicant fails to cooperate with TANF work requirements and the TANF benefits are denied. Is a TANF benefit amount considered when determining FS benefit? Is there a penalty imposed?

A3. No. The TANF application was denied and benefits were not certified. Therefore, a TANF benefit is not considered nor is there a penalty imposed.

Q4. A TANF recipient failed to cooperate with work requirements and the case was closed for reason “52A” or “29B.” The client has since gone to work full time and has returned to the county office to apply for SNAP benefits only.  What happens with the FSPI?

A4. The FSPI should be ended using the FSPU transaction.

Q5. A client is sanctioned for failure to cooperate with TANF work requirements. The TANF case is closed for reason “52A.” The client comes in after 30 days and reapplies for SNAP for herself and her 2 children, and TANF for her 2 children only. This is because she has recently been approved for SSI benefits. Is the FSPI still considered?

A5. No – remove FSPI. The client is no longer in need of TANF for herself as she is approved for SSI benefits. The children are not required to cooperate with TANF work requirements.

Q6. Is FSPI automatically ended and removed when, for example, a person reapplies for TANF and/or SNAP benefits?

A6. No. If there is FSPI screen showing penalty income, it will count until the penalty is manually ended and FSPI removed by updating the FSPU transaction.

Q7. A TANF case is closed on a “52A” or a “29B.” It has been 60 days since the case closed, does the FSPI remain on the case until the client either complies or is no longer eligible for TANF?

A7. No. The worker must remove the FSPI using the FSPU transaction after the TANF case has been closed 60 days whether the client cooperates or not.

Q8. There is an open TANF case for 1 adult and 2 children. The adult has a program violation for failure to cooperate with child support. How is the FSPI computed?

A8. When an open TANF case has a program violation, the TANF benefit is reduced by the amount of the penalty. The Food Stamp income remains the amount of the TANF payment standard.

Q9. What action is taken when a TANF benefit closes and there was a program penalty being applied? The program penalty violations are: no SSN, no school attendance for a child, no immunization for a child, fraud or failure to cooperate with child support.

A9. The worker must remove the penalty coded in the household tab and update the FSPU transaction with an end date that agrees with the effective date of the TANF closure. This is done at the time of the TANF closure.

Q10. When a TANF case closes on a “52A” or a “29B,” what process is available to remind the worker to remove the FSPI at the end of 60 days, if the client has not been approved for TANF or obtained employment?

A10. CWA70, Sanction or extension not approved, can be used as a reminder. This lists all TANF cases closed on a “52A” or “29B.” The cases appear on CWA70 thirty days from the effective date of closure of the TANF case and remain on the report for 60 days.

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