Supplemental Nutrition Assistance Program: Program Purpose and Work Requirement Provisions of the Fiscal Responsibility Act of 2023, 34340-34382 [2024-08338]

Agencies

• DEPARTMENT OF AGRICULTURE
• Food and Nutrition Service

[Federal Register Volume 89, Number 84 (Tuesday, April 30, 2024)]
[Proposed Rules]
[Pages 34340-34382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08338]



[[Page 34339]]

Vol. 89

Tuesday,

No. 84

April 30, 2024

Part II





Department of Agriculture





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 Food and Nutrition Service





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7 CFR Part 271 and 273





Supplemental Nutrition Assistance Program: Program Purpose and Work 
Requirement Provisions of the Fiscal Responsibility Act of 2023; 
Proposed Rule

Federal Register / Vol. 89 , No. 84 / Tuesday, April 30, 2024 / 
Proposed Rules

[[Page 34340]]


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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

7 CFR Part 271 and 273

[FNS 2023-0058]
RIN 0584-AF01


Supplemental Nutrition Assistance Program: Program Purpose and 
Work Requirement Provisions of the Fiscal Responsibility Act of 2023

AGENCY: Food and Nutrition Service (FNS), USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would amend the Supplemental Nutrition 
Assistance Program (SNAP) regulations to incorporate three provisions 
of the Fiscal Responsibility Act of 2023 by adding to the program 
purpose language assisting low-income adults in obtaining employment 
and increasing their earnings; updating and defining the exceptions 
from the able-bodied adults without dependents (ABAWD) time limit; and 
adjusting the number of discretionary exemptions available to State 
agencies each year. This proposed rule would also amend the regulations 
to clarify procedures for how and when State agencies must screen for 
exceptions to the time limit and clarify the verification requirements.

DATES: Written comments must be received on or before May 30, 2024 to 
be assured of consideration.
    Docket: Go to the Federal eRulemaking Portal at https://www.regulations.gov for access to the rulemaking docket, including any 
background documents and the plain-language summary of the proposed 
rule of not more than 100 words in length required by the Providing 
Accountability Through Transparency Act of 2023.

ADDRESSES: The Food and Nutrition Service, USDA, invites interested 
persons to submit written comments on this proposed rule. Comments may 
be submitted in writing by one of the following methods:
     Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the online instructions for submitting 
comments.
     Mail: Send comments to Food and Nutrition Service, P.O. 
Box 9233, Reston, Virginia 20195. Email: [email protected]. Phone: 
(703) 305-2022.
     Website: Go to https://www.regulations.gov. Follow the 
online instructions for submitting comments.
     E-Mail: Send comments to [email protected]. Include 
Docket ID Number [FNS-2023-0058], ``Supplemental Nutrition Assistance 
Program: Program Purpose and Work Requirement Provisions of the Fiscal 
Responsibility Act of 2023'' in the subject line of the message.
     All written comments submitted in response to this 
proposed rule and regulatory impact analysis will be included in the 
record and will be made available to the public. Please be advised that 
the substance of the comments and the identity of the individuals or 
entities submitting the comments will be subject to public disclosure. 
FNS will make the written comments publicly available on the internet 
via https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Catrina Kamau, Chief, Certification 
Policy Branch, Program Development Division, Food and Nutrition 
Service, 1320 Braddock Place, Alexandria, Virginia 22314. Email: 
[email protected]. Phone: (703) 305-2022.

SUPPLEMENTARY INFORMATION: 

Acronyms or Abbreviations

Able-bodied adults without dependents, ABAWDs or time-limited 
participants
Code of Federal Regulations, CFR
Fiscal Responsibility Act of 2023, FRA
Fiscal Year, FY
Food and Nutrition Act of 2008, the Act
Food and Nutrition Service, FNS
State SNAP Agencies, State agencies or States
Supplemental Nutrition Assistance Program, SNAP
U.S. Department of Agriculture, the Department or USDA

I. Background

    The Food and Nutrition Act of 2008 (the Act), as amended, 
establishes national eligibility standards for the Supplemental 
Nutrition Assistance Program (SNAP), including work requirements for 
certain individuals. The first of these requirements, referred to as 
the general work requirements, requires individuals to register for 
work; accept an offer of suitable employment; not voluntarily quit or 
reduce hours of employment below 30 hours per week, without good cause; 
and participate in workfare or SNAP Employment and Training (SNAP E&T) 
if required by the State agency. Most SNAP participants are exempt from 
the general work requirements because they are older adults, have 
disabilities, or are children, or meet another exemption from the 
general work requirements listed in the Act.
    Individuals who are not exempt from the general work requirements 
may also be subject to an additional time-limit work requirement. The 
Act limits these individuals, referred to as able-bodied adults without 
dependents (ABAWDs) or time-limited participants, to receiving SNAP 
benefits for three months in a 36-month period unless they are meeting 
the work requirement, live in an area where the time limit is waived 
due to a lack of sufficient jobs or a high rate of unemployment, or are 
otherwise exempt. This is sometimes referred to as the ABAWD time 
limit. Individuals can continue receiving SNAP beyond the three-month 
time limit by working, participating in a qualifying work program, or 
any combination of the two, for at least 20 hours a week (averaged 
monthly to 80 hours a month). Individuals can also meet the time limit 
by participating in and complying with workfare for the number of hours 
assigned (equal to the result obtained by dividing a household's SNAP 
allotment by the higher of the applicable Federal or State minimum 
wage). For the purposes of the time limit, working includes unpaid or 
volunteer work that is verified by the State agency. These requirements 
are sometimes referred to as the ABAWD work requirement. For the 
purposes of the proposed rule, the Department will use the term ``time 
limit'' to refer to both the ABAWD work requirement and time limit, as 
this phrasing more accurately describes the requirements applied to 
time-limited participants.
    The Act provides exceptions from the time limit based on certain 
individual circumstances, such as age, pregnancy, or meeting an 
exemption from the general work requirements. Individuals who meet an 
exception are not subject to the time limit. The Act also allows for 
waivers of the time limit in areas with an unemployment rate over 10 
percent or an insufficient number of jobs to provide employment for 
individuals. Individuals residing in waived areas are not required to 
meet the time limit. Lastly, the Act also establishes an annual 
allotment of discretionary exemptions that State agencies may use to 
extend eligibility for a time-limited participant who is not meeting 
the requirement. Each discretionary exemption can extend eligibility 
for one participant for one month and there is no limit on the number 
of discretionary exemptions a single participant can receive.
    Sec. 311 through 313 of the Fiscal Responsibility Act (FRA) of 2023 
(Pub. L. 118-5) amended the Act, revising exceptions from the time 
limit and the allotment of discretionary exemptions, as well as the 
program purpose. Based on these changes, the Department is proposing to 
amend the regulations to reflect the requirements of the FRA.
    Sec. 314 of the FRA also required the Department to publicize all 
available

[[Page 34341]]

State requests for waivers authorized by Sec. 6(o)(4)(A) of the Act, 
including supporting data, and all Department approvals of waivers 
within 30 days of enactment. The Department complied with this 
requirement by the statutory deadline and is not proposing rulemaking 
relating to this provision.\1\
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    \1\ These waiver requests and responses are available at: 
https://www.fns.usda.gov/snap/ABAWD/waivers.
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    The Department issued multiple memoranda for implementing the FRA 
changes. On June 30, 2023, the Department issued the initial 
implementation memorandum, ``Implementing SNAP Provisions in the Fiscal 
Responsibility Act of 2023'' which provided definitions for the new 
exceptions, detailed when and how State agencies must apply the changes 
to the exception criteria, and clarified the changes to discretionary 
exemptions. On July 27, 2023, the Department issued a Question-and-
Answer memorandum, ``SNAP Provisions of the Fiscal Responsibility Act 
of 2023--Questions & Answers #1,'' which answered questions from State 
agencies and advocates to further clarify how State agencies should 
implement the FRA provisions. On August 25, 2023, the Department issued 
a second Question-and-Answer memorandum, ``SNAP Provisions of the 
Fiscal Responsibility Act of 2023--Questions & Answers #2,'' which 
further answered questions from State agencies and advocates on how to 
implement the FRA provisions.

II. Discussion of Rule's Provisions

7 CFR 271.1: Program Purpose

    The Act provides that the purpose of SNAP is to safeguard the 
health and well-being of the Nation's population by raising levels of 
nutrition among low-income households to promote the general welfare. 
Sec. 313 of the FRA amends Sec. 2 of the Act and adds language to the 
purpose stating the program also assists low-income adults in obtaining 
employment and increasing their earnings. Specifically, the new 
language is: ``That program includes as a purpose to assist low-income 
adults in obtaining employment and increasing their earnings. Such 
employment and earnings, along with program benefits, will permit low-
income households to obtain a more nutritious diet through normal 
channels of trade by increasing food purchasing power for all eligible 
households who apply for participation.'' This language recognizes that 
the program has long had an employment and training program component 
and reflects the work by the Department spanning the last few decades 
to invest in effective and evidence-based job training aligned with 
State workforce programs designed to increase opportunity and earnings 
through skills-based training. Program rules at 7 CFR 271.1(a) 
incorporate this purpose statement, excerpting the language included at 
Sec. 2 of the Act. The Department proposes to revise 7 CFR 271.1(a) to 
reflect the purpose language added by the FRA.

7 CFR 273.24(c): Exceptions From the Time Limit

    Sec. 6(o)(3) of the Act provides exceptions from the time limit for 
certain individuals, including, but not limited to, individuals under 
18 years of age, individuals who are pregnant, or individuals who are 
exempt from the general work requirements. If an individual meets one 
of the exceptions, they are not subject to the time limit and are 
eligible to receive SNAP benefits for more than three months subject to 
other program rules. Throughout this proposed rule, ``exceptions from 
the time limit'' refers to the list of exception criteria listed in 
Sec. 6(o)(3) of the Act and program rules at 7 CFR 273.24(c) that 
determine which individuals are not subject to the time limit, whereas 
``exemptions from the general work requirements'' refers to the list of 
criteria in Sec. 6(d)(2) of the Act and 7 CFR 273.7(b) that exempts 
individuals from needing to fulfil the general work requirements.

Age-Based Exceptions

    Sec. 311 of the FRA amends Sec. 6(o)(3)(A) of the Act to adjust the 
age-based exception from the time limit. This change gradually 
increases the upper age limit of this exception as follows: by 
September 1, 2023, increases from 50 to 51 years of age or older; 
starting October 1, 2023, increases from 51 to 53 years of age or 
older; and starting October 1, 2024, increases from 53 to 55 years of 
age or older. The FRA also prescribed that these changes to the age-
based exception sunset on October 1, 2030, when the upper age limit 
will return to 50 years of age or older. The Department proposes to 
capture this sunset at 7 CFR 273.24(c)(10).
    Prior to the FRA, the Act excepted individuals from the time limit 
if they are under 18 years of age or 50 years of age or older. This 
exception is captured at 7 CFR 273.24(c)(1). The Department proposes to 
amend this paragraph to increase the upper age limit to 55 years of age 
or older. Since State agencies will have implemented the last age 
increase by the anticipated publication of the final rule, the 
Department proposes to only amend the regulations to reflect the final 
age increase to 55 or older in this rulemaking.

New Exceptions

    Sec. 311 of the FRA amends Sec. 6(o)(3) of the Act to add three new 
exceptions from the time limit. This change excepts individuals 
experiencing homelessness, veterans, and individuals who are 24 years 
of age or younger and in foster care on their 18th birthday (or higher 
age if the State offers extended foster care to a higher age). The FRA 
required State agencies to implement and apply these new exceptions by 
September 1, 2023. As with the changes to age-based exceptions, these 
new exceptions cease to have effect on October 1, 2030. The Department 
proposes to capture this sunset at 7 CFR 273.24(c)(10).
    Prior to the FRA, the Act included existing exceptions from the 
time limit for individuals who are unable to work due a physical or 
mental limitation, are pregnant, are responsible for a dependent child, 
or are not subject to the general work requirements. These existing 
exceptions are unchanged by the FRA and captured at 7 CFR 273.24(c)(1) 
through (6). The Department proposes to add to the existing list the 
new exceptions created by the FRA for individuals experiencing 
homelessness, veterans, and individuals who are 24 years of age or 
younger and in foster care on their 18th birthday (or higher age if the 
State offers extended foster care to a higher age). These new 
exceptions are further defined in the following sections.

Individuals Experiencing Homelessness

    Sec. 311 of the FRA creates an exception for a ``homeless 
individual''--individuals experiencing homelessness--from the time 
limit. To aid in implementation, the Department provided guidance to 
State agencies which referred State agencies to the program's 
longstanding definition of ``homeless individual'' at Sec. 3(l) of the 
Act: an individual who lacks a fixed and regular nighttime residence; 
or who has a primary nighttime residence that is a supervised publicly 
or privately operated shelter designed to provide temporary living 
accommodations (including a welfare hotel or congregate shelter), an 
institution that provides a temporary residence for individuals 
intended to be institutionalized, a temporary accommodation for not 
more than 90 days in the residence of another individual, or a public 
or private place not designed for, or ordinarily used as, a regular 
sleeping accommodation for human beings.

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    The Department proposes to include a reference to the definition 
for homeless individual at 7 CFR 271.2 at new paragraph 7 CFR 
273.24(c)(7) for the purpose of this new exception.
    The Department also proposes to update the definition of ``homeless 
individual'' provided at 7 CFR 271.2 to include individuals who will 
imminently lose their nighttime residence and will issue further sub-
regulatory guidance on circumstances that may render an individual 
``imminently homeless.'' This update reflects the Department's 
consideration that those who will imminently lose their primary 
nighttime residence are included in the Act's definition of a homeless 
individual, as a nighttime residence that will be imminently lost 
cannot reasonably be described as ``fixed and regular.'' It also 
presents an undue hardship on an individual to be subject to the time 
limit if that individual knows they will lose a fixed and regular 
nighttime residence in the near future. Individuals experiencing 
homelessness face greater difficulties in obtaining work due to 
unstable housing, transportation barriers, inconsistent access to 
hygiene materials or professional clothing, and other hardships related 
to homelessness.2 3 4 Given these challenges, this proposed 
change is meant to encompass the diverse set of circumstances that can 
constitute homelessness.
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    \2\ Sarver, Maureen. ``Why Is It So Hard for People Experiencing 
Homelessness to `Just Go Get a Job?' '' Urban Institute. Last 
modified November 3, 2023. https://www.urban.org/urban-wire/why-it-so-hard-people-experiencing-homelessness-just-go-get-job.
    \3\ National Alliance to End Homelessness. ``Overcoming 
Employment Barriers.'' Last modified August 13, 2023. https://endhomelessness.org/resource/overcoming-employment-barriers/.
    \4\ Bharat, Nisha, Jenna Cicatello, Emily Guo, and Vennela 
Vallabhaneniand. ``Homelessness and Job Security: Challenges and 
Interventions.'' University of Michigan School of Public Health. 
Last modified May 11, 2020. https://sph.umich.edu/pursuit/2020posts/homelessness-and-job-security-challenges-and-interventions.html.
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    Individuals do not need to meet the criteria in both paragraph (1) 
and (2) of 7 CFR 271.2 ``Homeless individual'' to be considered as 
experiencing homelessness for SNAP purposes. An individual may lack a 
fixed or regular nighttime residence and be considered homeless under 
paragraph (1), or the individual may have a nighttime residence that 
meets the criteria in paragraph (2), such as a supervised shelter, and 
be considered homeless under paragraph (2). Therefore, an individual 
who is considered homeless under paragraph (1) is not subject to the 
criteria in paragraph (2), including the time limitation for temporary 
housing. The Department believes these changes reflect the 
understanding of subject matter experts and housing and homeless 
organizations that work on homelessness issues and ensure that State 
agencies can recognize a wide range of unstably housed individuals as 
homeless.\5\
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    \5\ National Alliance to End Homelessness. ``State of 
Homelessness: 2023 Edition.'' Accessed December 4, 2023. https://endhomelessness.org/homelessness-in-america/homelessness-statistics/state-of-homelessness/.
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    This proposal will amend the definition for all of SNAP, not only 
for purposes of the time limit. This will provide consistency 
throughout SNAP of the Department's updated understanding of ``homeless 
individual.'' The Department proposes clarifying this matter by 
amending the definition of ``homeless individual'' at 7 CFR 271.2.

Veterans

    The FRA also updates the list of exceptions from the time limit to 
include veterans but does not provide a definition for or specify 
limits on who is considered a veteran. In FRA guidance, the Department 
used a definition of ``veteran'' established by Congress in Sec. 
5126(f)(13)(F) of the James M. Inhofe National Defense Authorization 
Act for Fiscal Year 2023 (Public Law 117-263) for the purposes of a 
pilot program to combat food insecurity among veterans and their 
families. Under this statutory provision, a veteran is an individual 
who served in the United States Armed Forces (such as the Army, Marine 
Corps, Navy, Air Force, Space Force, Coast Guard, and National Guard), 
including an individual who served in a reserve component of the Armed 
Forces, and who was discharged or released therefrom, regardless of the 
conditions of such discharge or release.
    Since the issuance of the guidance, the Department has determined 
that it is appropriate to include another group of individuals, defined 
under 38 CFR 3.7, who are considered veterans for purposes of receiving 
veterans' benefits: individuals who were commissioned officers of the 
Public Health Service, Environmental Scientific Services 
Administration, or the National Oceanic and Atmospheric Administration. 
These individuals are eligible for veterans' benefits, such as 
disability compensation, veterans' pensions, and educational benefits, 
because they are considered to have served in ``active military 
service'' under 38 CFR 3.7. However, this group of veterans was not 
included in the definition used in the implementation guidance. 
Including such commissioned officers in SNAP's definition ensures 
individuals who the VA considers veterans for VA benefits programs are 
eligible for the exception from the time limit.
    Research shows that veterans, particularly older veterans who 
served between 1975 and 2001, have a 7.4 percent greater risk for food 
insecurity than non-veterans, adjusted for observable differences, and 
veterans were consistently less likely to be enrolled in 
SNAP.6 7 Food insecurity prevalence rates were also higher 
among disabled, unemployed, and women working-age veterans when 
compared to the national average for all working-age veterans.\8\ Given 
the persistent and rising concern over food insecurity for veterans, it 
is critical to ensure the exception covers a broad range of veterans, 
including individuals with former military service who may not identify 
with the term ``veteran.'' The Department believes using this 
definition informed by the NDAA pilot and other veterans' benefits 
programs achieves that goal.
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    \6\ U.S. Department of Agriculture. Economic Research Service. 
Food Insecurity Among Working-Age Veterans by Matthew P. Rabbitt and 
Michael D. Smith. ERR-829. Washington, DC, 2021. https://www.ers.usda.gov/publications/pub-details/?pubid=101268.
    \7\ Dubowitz, Tamara, Andrea Richardson, Teague Ruder, and 
Catria Gadwah-Meaden. Food Insecurity Among Veterans: Examining the 
Discrepancy Between Veteran Food Insecurity and Use of the 
Supplemental Nutrition Assistance Program (SNAP). Santa Monica, CA: 
RAND Corporation, 2023. https://www.rand.org/pubs/research_reports/RRA1363-2.html.
    \8\ U.S. Government Accountability Office. Nutrition Assistance 
Programs: Federal Agencies Should Improve Oversight and Better 
Collaborate on Efforts to Support Veterans with Food Insecurity. 
GAO-22-104740. Washington, DC, 2022. Accessed December 4, 2023. 
https://www.gao.gov/assets/gao-22-104740.pdf.
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    Therefore, the Department proposes to define veteran at 7 CFR 
273.34(c)(8) as an individual who, regardless of the conditions of 
their discharge or release from, served in the United States Armed 
Forces (such as the Army, Marine Corps, Navy, Air Force, Space Force, 
Coast Guard, and National Guard), including an individual who served in 
a reserve component of the Armed Forces, or served as a commissioned 
officer of the Public Health Service, Environmental Scientific Services 
Administration, or the National Oceanic and Atmospheric Administration.

Individuals Who Were in Foster Care

    Sec. 311 of the FRA also created an exception from the time limit 
for certain individuals previously in foster care, recognizing the 
particular challenges that individuals aging out of foster care face in 
obtaining stable employment. This exception applies to an individual

[[Page 34343]]

who is 24 years of age or younger and who was in foster care under the 
responsibility of a State on their 18th birthday or such higher age as 
the State has elected under Sec. 475(8)(B)(iii) of the Social Security 
Act. The Department notes that this definition does not require that an 
individual was in foster care in the State in which they are applying 
for or receiving SNAP benefits. The definition provided in the FRA is 
similar to that of the ``former foster care children'' eligibility 
group for Medicaid, as revised by the Substance Use-Disorder Prevention 
that Promotes Opioid Recovery and Treatment for Patients and 
Communities Act for individuals who turn 18 on or after January 1, 
2023. Per section 1902(a)(10)(A)(i)(IX)(cc) of the Social Security Act 
and programs rules at 42 CFR 435.150, these individuals are eligible 
for Medicaid in this eligibility group if they are under age 26 and 
were in foster care under the responsibility of a State or Tribe upon 
attaining age 18 or such higher age as the State or such Tribe has 
elected for foster care assistance to end under section 475(8)(B)(iii) 
of the Social Security Act.
    In implementing guidance, the Department clarified who may qualify 
for this exception, described below. The Department proposes to adopt 
these clarifications into the definition provided in regulations. In 
this guidance, the Department clarified that ``foster care under the 
responsibility of a State'' includes foster care programs run by 
Districts, Territories, or Indian Tribal Organizations.\9\ The 
Department also clarified that the exception applies to individuals who 
are in foster care when they reach 18 years of age even if they elect 
to stay in foster care up to the State's maximum age, as well as 
individuals aged 18 to 24 who were in foster at the time they turned 18 
years of age, even if the individual exits extended foster care before 
the maximum age. The Department also notes that individuals who are in 
foster care when they reach 18 years of age qualify for this exception 
regardless of their length of time in foster care or the reason for the 
individual's removal into foster care. Additionally, after consulting 
with the Department of Health and Human Services, the Department 
proposes to further clarify in the definition that ``foster care under 
the responsibility of a State'' also includes the Unaccompanied Refugee 
Minors Program.
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    \9\ U.S. Department of Agriculture. Food and Nutrition Service. 
Implementing SNAP Provisions in the Fiscal Responsibility Act of 
2023. Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/implementing-fra-provisions-2023.
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    These changes will help account for the variation in foster care 
and extended foster care operations across States. Further, the 
Department recognizes that individuals leaving foster care face 
particular barriers in obtaining suitable employment, including lower 
educational attainment, limited work history, and housing 
instability,10 11 and struggle with sustained employment and 
earnings more than their peers.\12\ This definition will help to ensure 
these particularly vulnerable individuals are not subject to the time 
limit.
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    \10\ Fung, Sara, Jessica Haspel, Susanna Kniffen, and Danielle 
Wondra. Employment and Youth with Foster Care Experience: 
Understanding Barriers and Supporting Success. Oakland, CA: Children 
Now, 2022.
    \11\ Pecora, Peter J., and et al. ``Educational and employment 
outcomes of adults formerly placed in foster care: Results from the 
Northwest Foster Care Alumni Study.'' Children and youth services 
review 28, no. 12 (December 2006): 1459-1481. https://doi.org/10.1016/j.childyouth.2006.04.003.
    \12\ Stewart, C. Joy, and et al. ``Former foster youth: 
Employment outcomes up to age 30.'' Children and youth services 
review 36 (January 2014): 220-229. https://doi.org/10.1016/j.childyouth.2013.11.024.
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    The Department proposes to amend the regulations at 7 CFR 
273.24(c)(9) to include the revised exception definition provided in 
Sec. 311(a)(4) of the FRA and codify the foster care clarifications 
provided in the implementation guidance.

7 CFR 273.24(l): Verification of Exception Status

    The FRA did not make any changes to how State agencies verify 
exceptions from the time limit. Program rules at 7 CFR 273.2(f) do not 
require State agencies to verify exception status unless the 
information is considered questionable. In FRA implementation guidance, 
the Department provided examples of verification State agencies could 
use if the State agency deems the information to be questionable based 
on the State agency's established criteria and requires further 
verification.13 14 15 The Department reminds State agencies 
that program rules at 7 CFR 273.2(f)(2)(i) prohibit State agencies from 
setting guidelines for determining what is considered questionable 
information that would require verification based on race, religion, 
ethnic background, or national origin. The Department also reminds 
State agencies that the FRA provides populations exceptions in part 
because they are especially vulnerable and may be in unstable living 
situations. Placing additional and unnecessary burden on the applicants 
to provide verification may put these vulnerable individuals at risk. 
The Department encourages State agencies avoid setting guidelines for 
questionable information that would consider self-attestation 
questionable and require every individual who meets exception criteria 
to provide verification.
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    \13\ U.S. Department of Agriculture. Food and Nutrition Service. 
Implementing SNAP Provisions in the Fiscal Responsibility Act of 
2023. Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/implementing-fra-provisions-2023.
    \14\ U.S. Department of Agriculture. Food and Nutrition Service. 
Supplemental Nutrition Assistance Program (SNAP)--SNAP Provisions of 
the Fiscal Responsibility Act of 2023--Questions and Answers #1. 
Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/provisions-fiscal-responsibility-act-2023-questions-and-answers-1.
    \15\ U.S. Department of Agriculture. Food and Nutrition Service. 
Supplemental Nutrition Assistance Program (SNAP)--SNAP Provisions of 
the Fiscal Responsibility Act of 2023--Questions and Answers #2. 
Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/provisions-fiscal-responsibility-act-2023-questions-answers-2.
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    Program rules at 7 CFR 273.2(f)(5)(i) require State agencies to 
assist cooperating households in obtaining verification. Such 
assistance includes, but is not limited to, utilization of data sharing 
agreements with other State agencies and information received from 
other public assistance programs operated by the State agency. The 
Department proposes to clarify State agencies' responsibilities in 
obtaining verification of exception status, when questionable, by 
requiring State agencies to use all available information to verify 
exception status when questionable, before asking individuals to 
provide verification.
    This proposal is based on several reasons. For example, State 
agencies' data sharing agreements provide additional resources to State 
agencies in the eligibility determination process, offering a less 
burdensome way to comply with the requirement to assist individuals in 
obtaining verification by reducing the amount of time and actions 
needed to verify information and minimizing the need to call contacts, 
send notices, and continuously re-touch a case. Further, these 
agreements can improve processes for screening for exceptions and 
proactively identify people who may be eligible for exceptions from the 
time limit. They also help streamline verification of exception status 
when the State agency determines the information is questionable by 
reducing the number of actions needed to verify information and 
decreasing time wait for the individual to provide sources of 
verification and for eligibility workers to verify the information. 
This may include agencies that support veterans

[[Page 34344]]

which may have information regarding an individual's prior service that 
can streamline verification of an individual's veteran status if the 
State agency finds it questionable. Similarly, State and Tribal IV-E 
agencies or State Medicaid agencies may have information on an 
individual's current or former placement in foster care that the SNAP 
State agency could use to verify an individual's status as a former 
foster youth. As a reminder, Section 475(5)(I) of the Social Security 
Act also requires child welfare agencies to provide any official 
documentation necessary to prove former foster care status to young 
people who have been in foster care for six or more months and exit 
foster care after attaining age 18. Likewise, State agencies' housing 
assistance programs or Continuums of Care may have information on an 
individual's housing status and eliminate the need for further 
verification to determine an individual's homelessness status and 
exception from the time limit. Through their participation in other 
programs, these vulnerable individuals have already demonstrated their 
status as homeless, disabled, pregnant, etc. to another program. The 
Department expects State agencies to avoid imposing a redundant burden 
on these individuals, which could impede their ability to claim an 
exception from the time limit, by using information available to the 
State agency.
    Therefore, in the interest of improved efficiency and minimizing 
unnecessary burden on individuals, the Department proposes at 7 CFR 
273.24(l) to require State agencies to assist individuals when 
requiring verification of exception status by using all information 
available to the State agency before requesting the individual provide 
sources of verification. The Department intends for State agencies to 
use existing information available in their eligibility system or 
through data sharing agreements. State agencies are not required to 
establish new data sharing agreements; however, the Department highly 
encourages State agencies to determine ways to collaborate with other 
State agencies, improving the coordination and information sharing 
across programs.
    The Department recognizes that, when possible, State agencies 
likely use similar processes to support households in gathering other 
necessary verifications, however, it is proposing 7 CFR 273.24(l) in 
lieu of amending 7 CFR 273.2(f)(5)(i) for several reasons. Reducing 
barriers to identifying exceptions is especially important because of 
the impact that exception status and the time limit can have on an 
individual's SNAP eligibility. State agencies are more likely to 
already have access to information about household circumstances that 
except an individual from the time limit. As such, the Department is 
proposing this requirement at 7 CFR 273.24(l) and is not amending 7 CFR 
273.2(f)(5)(i) to clarify that the requirement is specific to 
verification of exception status when questionable and is not intended 
to replace existing efforts State agencies employ to assist households 
in obtaining verification for other household circumstances.

7 CFR 271.2, 273.7(b)(3), and 273.24(k): Screening and Assigning 
Countable Months

    Individuals subject to the time limit are a largely vulnerable 
population. An FNS study titled, ``The Impact of SNAP Able-Bodied 
Adults Without Dependents (ABAWD) Time Limit Reinstatement in Nine 
States,'' researched characteristics of individuals potentially subject 
to the time limit, meaning they are 18 to 49 and do not meet an 
exemption from the general work requirement, and do not live in a 
household with someone under the age of 18.\16\ The study found that 
this population is less connected to the workforce and has higher rates 
of homelessness as well as mental and physical limitations, compared to 
other SNAP participants aged 18 to 49.
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    \16\ U.S. Department of Agriculture. Food and Nutrition Service. 
The Impact of SNAP Able-Bodied Adults Without Dependents (ABAWD) 
Time Limit Reinstatement in Nine States by Laura Wheaton and et al. 
Washington, DC, 2021. https://www.fns.usda.gov/snap/impact-snap-able-bodied-adults-without-dependents-abawd-time-limit-reinstatement-nine.
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    Sec. 6(o)(3) of the Act provides exceptions from the time limit to 
ensure certain individuals who face additional barriers to employment 
are not required to meet the more stringent time limits. Exceptions are 
provided for individuals based on certain circumstances, including 
those for individuals considered mentally or physically unfit for work, 
pregnant individuals, or those who are responsible for the care of a 
dependent child to name a few. As described earlier, following the 
passage of the FRA, individuals are also now excepted if they are 
experiencing homelessness, a veteran, or 24 years of age or younger who 
were in foster care on their 18th birthday (or higher age if the State 
offers extended foster care to a higher age).
    In order to properly apply an exception to a case, State agencies 
must first evaluate individuals potentially subject to the time limit 
to determine if they are indeed subject to the time limit, or if they 
qualify for an exception. The Department refers to this process as 
``screening.'' State agencies must perform a thorough screening to 
appropriately apply the time limit or an exception and to ensure only 
the appropriate individuals accrue countable months.\17\ This proposed 
rule would address requirements for when this screening must occur and 
what steps State agencies must take prior to assigning countable 
months.
---------------------------------------------------------------------------

    \17\ A countable month is a month in which a person is receiving 
a full SNAP benefit allotment, is not meeting the time limit, and is 
not otherwise exempt (i.e., the person is not meeting an exception 
from the time limit, is not living in an area covered by a waiver, 
is not receiving a discretionary exemption, does not have good cause 
for not meeting the work requirement, or is not in the month of 
notification from the State agency of a ``provider determination'' 
(from a SNAP E&T provider)).
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Screening at Initial and Recertification Application

    The FRA required State agencies to apply the new exception criteria 
at initial application and recertification application. The Department 
issued guidance regarding requirements to screen for the new exceptions 
at initial and recertification application, consistent with the FRA and 
existing expectations for other exceptions from the time 
limit.18 19 20
---------------------------------------------------------------------------

    \18\ U.S. Department of Agriculture. Food and Nutrition Service. 
Implementing SNAP Provisions in the Fiscal Responsibility Act of 
2023. Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/implementing-fra-provisions-2023.
    \19\ U.S. Department of Agriculture. Food and Nutrition Service. 
Supplemental Nutrition Assistance Program (SNAP)--SNAP Provisions of 
the Fiscal Responsibility Act of 2023--Questions and Answers #1. 
Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/provisions-fiscal-responsibility-act-2023-questions-and-answers-1.
    \20\ U.S. Department of Agriculture. Food and Nutrition Service. 
Supplemental Nutrition Assistance Program (SNAP)--SNAP Provisions of 
the Fiscal Responsibility Act of 2023--Questions and Answers #2. 
Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/provisions-fiscal-responsibility-act-2023-questions-answers-2.
---------------------------------------------------------------------------

    The need to screen for ABAWD exceptions at initial application and 
recertification application is not new to State agencies--prior to the 
FRA, screening individuals at initial and recertification application 
for exceptions was necessary, as the Act provides that individuals must 
not be subject to the time limit if they meet one of the exceptions 
listed in Sec. 6(o)(3) of the Act. The Department has repeatedly 
emphasized the importance of screening for ABAWD exceptions at initial 
and recertification application through

[[Page 34345]]

guidance, including in the SNAP Able-Bodied Adults Without Dependents 
(ABAWD) Policy Guide.\21\ While a screening requirement is not 
explicitly included in current regulations, State agencies must already 
have this screening process in place in order to effectuate the ABAWD 
provisions.
---------------------------------------------------------------------------

    \21\ U.S. Department of Agriculture. Food and Nutrition Service. 
Supplemental Nutrition Assistance Program (SNAP) Able-Bodied Adults 
Without Dependents (ABAWD) Policy Guide. Washington, DC, 2023. 
Accessed January 2, 2024. https://www.fns.usda.gov/snap/guide-serving-abawds-time-limit-participation. See also U.S. Department of 
Agriculture. Food and Nutrition Service. ABAWD Time Limit Policy and 
Program Access Memo. Washington, DC, 2015. Accessed January 2, 2024. 
https://www.fns.usda.gov/snap/ABAWD/time-limit-policy-program-access-memo.
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    The Department is taking this opportunity to include clear language 
in the regulations that State agencies must screen for all exceptions 
from the time limit at initial and recertification application at new 
section 7 CFR 273.24(k). This will codify existing practices and 
clarify screening requirements and ensure compliance with the statutory 
exceptions. By adding this section to the regulations, the Department 
seeks to improve consistency in program operations and provide quality 
customer service in line with the December 13, 2021, Executive Order on 
Transforming Federal Customer Experience and Service Delivery to 
Rebuild Trust in Government.
    Given the necessity of screening to properly administer exceptions, 
the Department is also proposing to include explicit language regarding 
the requirement for State agencies to screen for the exemptions from 
the general work requirements at certification and recertification at 7 
CFR 273.7(b)(3), as State agencies must screen for both exemptions from 
the general work requirements and exceptions from the time limit to 
adequately determine if an individual should be subject to the time 
limit.\22\ Individuals are not subject to the time limit if they meet 
an exemption from the general work requirements, as provided at Sec. 
6(o)(3)(D) of the Act. This is an important first step in evaluating 
which, if any, work requirements apply to an individual. The proposed 
change would simply codify the need to determine if an individual is 
exempt from the general work requirements before registering the 
individual for work,\23\ and promote further consistency in how 
exceptions are identified and work requirements policy is applied.
---------------------------------------------------------------------------

    \22\ U.S. Department of Agriculture. Food and Nutrition Service. 
SNAP Work Rules Screening Checklists and Flow Chart. Washington, DC, 
2023. Accessed January 2, 2024. https://www.fns.usda.gov/snap/work-rules-screening.
    \23\ U.S. Department of Agriculture. Food and Nutrition Service. 
SNAP Employment and Training Screening and Referral Guidance. 
Washington, DC, 2023. Accessed January 2, 2024. https://www.fns.usda.gov/snap/et-screening-and-referral-guidance.
---------------------------------------------------------------------------

    The Department also proposes to amend the definition of screening 
to reflect these changes. The provision currently only refers to 
determining if an individual should or should not be referred to E&T. 
Determining whether an individual should be referred to E&T is closely 
intertwined with determining whether the individual is subject to the 
general work requirement and ABAWD time limit. For example, a decision 
to refer an individual to E&T can only follow a determination that the 
individual is subject to the general work requirement. Similarly, 
whether an individual is subject to the time limit may affect the E&T 
referral decision. Therefore, the Department also proposes amending the 
definition of ``screening'' at 7 CFR 271.2 to include determining if an 
individual meets an exemption from the general work requirements listed 
in Sec. 6(d)(2) of the Act or an exception from the time limit listed 
in Sec. 6(o)(3) of the Act.

Screening and Applying Exceptions During the Certification Period

    The FRA requires the new exceptions to be applied at initial 
application and recertification, however, questions arose during 
implementation about requirements for identifying exceptions during an 
individual's certification period. These questions reflected confusion 
among State agencies on how to comply with the FRA, the Act, and 
program rules. Some of the uncertainties raised include how States 
agencies account for individuals who appear to be newly subject to the 
time limit due to the changes in age-based exceptions, but the State 
agency has not screened those individuals to determine if they meet any 
exception. Since these individuals were not subject to the time limit 
at the time of their last certification, the State agency would likely 
not have any information on whether the individual meets another 
exception. Similarly, an individual subject to the time limit before 
the FRA could now be excepted as a veteran, however, the State agency 
may not know the individual is a veteran because the information is not 
collected in the SNAP application. In both scenarios for ongoing 
households, the State agency could not properly determine if the 
individual should be subject to the time limit.
    The Department issued implementation guidance to address questions 
around the requirements for screening during the certification 
period.24 25 26 This guidance detailed expectations of State 
agencies to apply the exceptions for ongoing households when the State 
agencies were able to identify such excepted households. However, there 
was no requirement for State agencies to evaluate households during 
their certification period for the purposes of identifying or applying 
an exception.
---------------------------------------------------------------------------

    \24\ U.S. Department of Agriculture. Food and Nutrition Service. 
Implementing SNAP Provisions in the Fiscal Responsibility Act of 
2023. Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/implementing-fra-provisions-2023.
    \25\ U.S. Department of Agriculture. Food and Nutrition Service. 
Supplemental Nutrition Assistance Program (SNAP)--SNAP Provisions of 
the Fiscal Responsibility Act of 2023--Questions and Answers #1. 
Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/provisions-fiscal-responsibility-act-2023-questions-and-answers-1.
    \26\ U.S. Department of Agriculture. Food and Nutrition Service. 
Supplemental Nutrition Assistance Program (SNAP)--SNAP Provisions of 
the Fiscal Responsibility Act of 2023--Questions and Answers #2. 
Washington, DC, 2023. Accessed December 11, 2023. https://www.fns.usda.gov/snap/provisions-fiscal-responsibility-act-2023-questions-answers-2.
---------------------------------------------------------------------------

    Program rules also do not establish a process during the 
certification period that would provide the information needed for the 
State agency to identify if an individual is subject to the time limit, 
or if they meet another exception from the time limit. Beyond new 
challenges in FRA implementation, State agencies face ongoing 
challenges in properly applying exceptions or subjecting individuals to 
the time limit when changes occur during the certification period. 
Further, the Department also recognizes it may be burdensome on both 
the individual and the State agency to require screening during the 
certification period when a change in exception status occurs. As such, 
the proposed rule would not require State agencies to screen during the 
certification period.
    While the Department does not propose to require screening during 
the certification period, if a State agency learns about a change in 
exception status for an individual during the certification period, the 
State agency must act accordingly. A State agency could learn about the 
change from various sources such as household reports, data sharing or 
shared eligibility system arrangements with other programs, or 
voluntary screening undertaken by a State agency during a certification 
period.

[[Page 34346]]

    If a State agency determines an individual newly meets an 
exception, the State agency must apply the exception at that time and 
not subject the individual to the time limit. If a State agency learns 
an individual has lost an exception, the State agency must screen to 
see if the individual qualifies for a different exception. If the 
individual qualifies for a different exception, the individual is not 
subject to the time limit. The Department is proposing this requirement 
to apply to new exceptions at 7 CFR 273.24(k)(1)(ii) to ensure State 
agencies are clear on their responsibilities as it relates to applying 
the time limit and assigning countable months and complying with Sec. 
6(o)(3) of the Act and program rules at 7 CFR 273.24(b)(1).
    Due to the complexities of screening during the certification 
period and the importance of not improperly subjecting individuals to 
the time limit, the Department is also clarifying that if the State 
agency has information that an individual's excepted status has 
changed, then the State agency cannot assign countable months until it 
has screened an individual for other exceptions and determined they are 
subject to the time limit. If the individual does not meet another 
exception, the State agency must begin applying countable months in 
accordance with program rules at 7 CFR 273.24(b)(1) and ensure 
individuals are properly notified of what work requirements they are 
required to meet in accordance with 7 CFR 273.7(c)(1)(ii) and (iii). 
The Department is outlining this requirement at 7 CFR 273.24(k)(1)(i) 
for changes during the certification period, prohibiting State agencies 
from assigning countable months until it has screened and determined an 
individual does not meet an exception from the time limit. This 
prohibition on assigning countable months also applies at initial and 
recertification application and is outlined at 7 CFR 273.24(k).
    When an individual loses an exception during the certification 
period, this only informs the State agency that the individual no 
longer meets that particular exception. It does not provide sufficient 
information to determine if the individual should now be subject to the 
time limit, as the individual may meet another exception. This is 
especially true given the fluid nature of some of the exceptions, such 
as homelessness or pregnancy, which individuals may meet only 
temporarily. As such, the State agency must screen to determine if the 
individual meets another exception in order to know if the individual 
should be subject to the time limit and to comply with Sec. 6(o)(3) of 
the Act, which requires State agencies to only subject individuals who 
do not meet an exception to the time limit.
    For example, the State agency may be aware an individual has turned 
18 during the certification period and is no longer excepted for being 
under the age of 18. However, this individual may qualify for another 
exception, such as the exception for homeless individuals or the 
exception for individuals 24 years of age or younger and in foster care 
on their 18th birthday. The State agency must not assign countable 
months to this individual before the State agency has screened for 
other exceptions and determined no other exceptions apply, either 
during the certification period or at the next recertification.
    In the case that a State agency attempts to screen during the 
certification period, but is unable to do so, the State agency must not 
penalize individuals for not responding, require the household to come 
into the office per program rules at 7 CFR 273.2(e)(1), or send a 
request for contact (RFC). RFCs may only be sent to resolve unclear 
information that meets the criteria outlined at 7 CFR 273.12(c)(3). 
Otherwise, the State agency would wait until the next recertification 
to screen the individual, and then at that time, either apply another 
exception or begin applying the time limit.
    It is also possible that individuals may meet more than one 
exception from the time limit. When this occurs, the Department 
encourages State agencies to apply the exception that will have the 
longest impact, minimizing the need to rescreen an individual if they 
lose an exception and reducing burden on both the State agency and 
individuals. For example, if a State agency screens an individual and 
determines they are a veteran who is also experiencing homelessness, 
the Department recommends that the State agency apply the exception for 
veteran, avoiding the need to rescreen the individual if they no longer 
qualify for the exception for individuals experiencing homelessness 
since the individual's veteran status will not change. While the 
Department highly encourages this as a best practice, the Department 
recognizes not all State agency eligibility systems have the same 
capabilities and therefore, is not proposing this as a requirement.

7 CFR 273.24(g) and (h): Discretionary Exemptions

    The Act provides State agencies the ability to extend eligibility 
for time-limited participants who are not meeting the time limit and do 
not live in an area with an ABAWD waiver. This may be done through use 
of a discretionary exemption, and each discretionary exemption can be 
used to exempt up to one individual for one month. As defined by law, 
each State agency's allotment of discretionary exemptions is calculated 
annually by the Department, based on the total number of time limited 
participants that were ineligible in the State due to the time limit in 
the preceding fiscal year, known as ``covered'' individuals.
    Prior to the FRA, the Act instructed the Department to calculate 
discretionary exemptions such that the average monthly number of 
exemptions do not exceed 12 percent of the number of covered 
individuals in the State. Sec. 312 of the FRA amends Sec. 6(o)(6) of 
the Act and reduces the allotment of exemptions to not exceed 8 percent 
of covered individuals. The Department proposes conforming edits to 7 
CFR 273.24(g)(3) to reduce the allotment to not exceed 8 percent of 
covered individuals in the State.
    Current regulations at 7 CFR 273.24(h)(2)(i) also allow State 
agencies to carryover all unused discretionary exemptions into the next 
fiscal year (FY). Sec. 312 of the FRA further amends Sec. 6(o)(6) of 
the Act, prohibiting State agencies from accumulating unused exemptions 
for more than the current fiscal year and subsequent fiscal year during 
FY 2024 and beyond. During FY 2024, State agencies received their 
allotment of discretionary exemptions, which included their historical 
balance of unused exemptions. The prohibition on accumulating unused 
exemptions allows for the carryover of this historical balance only 
into the subsequent fiscal year (FY 2025). Then starting in FY 2026, 
State agencies will only carryover unused discretionary exemptions 
earned for the previous fiscal year, not including historical balance. 
As such, the Department is proposing conforming edits to 7 CFR 
273.24(h)(2)(i) to limit carryover to only unused discretionary 
exemptions earned for the previous fiscal year starting in FY 2026.

Procedural Matters

Executive Orders 12866, 13563, and 14094

    Executive Orders 12866, 13563, and 14094 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563

[[Page 34347]]

emphasizes the importance of quantifying both costs and benefits, of 
reducing costs, of harmonizing rules, and of promoting flexibility. 
This proposed rulemaking has been determined to be significant under 
section 3(f)(1) of Executive Order 12866, as amended by Executive Order 
14094, and was reviewed by the Office of Management and Budget in 
conformance with Executive Order 12866.

Regulatory Impact Analysis Summary

    As required for all rules that have been designated as significant 
by the Office of Management and Budget, a Regulatory Impact Analysis 
(RIA) was developed for this proposed rule. It follows this rule as an 
Appendix. The following summarizes the conclusions of the regulatory 
impact analysis:
    The Department estimates the total increase in federal transfers 
(SNAP benefit spending) associated with the provisions of this proposed 
rule to be approximately $2.8 billion over the nine years Fiscal Year 
(FY) 2023-FY 2031, averaging $306.5 million per year. Over the nine-
year period FY 2023-FY 2031, federal costs (not including transfers) 
are estimated to total approximately $252.5 million, or an annual 
average of $28.1 million. Total State agency administrative expenses 
are also estimated to be approximately $252.5 million over the nine-
year period, or an annual average of $28.1 million. Costs associated 
with administrative burden to individual SNAP participants are 
estimated to be approximately $322.0 million over the nine-year period, 
or an annual average of $35.8 million.
    This proposed rule will primarily affect SNAP participants who are 
subject to the time limit, which the Department estimates to be, upon 
full implementation of the FRA's provisions in FY 2026, approximately 
9.3 percent of SNAP participants, although far fewer will lose 
eligibility for SNAP. Hence, most SNAP participants will not be 
affected by this proposed rule. The estimated net impact of the 
proposed rule's change in the age-based exceptions and three new 
exceptions is a net increase in SNAP participation of about 54,000 
individuals per year when fully implemented. In FY 2026, this includes 
345,000 participants losing eligibility, 369,000 participants retaining 
eligibility, and about 30,000 new participants.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612) requires Agencies 
to analyze the impact of rulemaking on small entities and consider 
alternatives that would minimize any significant impacts on a 
substantial number of small entities. Pursuant to that review, it has 
been certified that this rule would not have a significant impact on a 
substantial number of small entities. This proposed rule would not have 
an impact on small entities because the changes required by the 
regulations are directed toward State agencies operating SNAP programs.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as major rule as defined by 5 U.S.C. 804(2).

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local and tribal 
governments and the private sector. Under section 202 of the UMRA, the 
Department generally must prepare a written statement, including a cost 
benefit analysis, for proposed and final rules with ``Federal 
mandates'' that may result in expenditures by State, local or tribal 
governments, in the aggregate, or the private sector, of $100 million 
or more in any one year. When such a statement is needed for a rule, 
Section 205 of the UMRA generally requires the Department to identify 
and consider a reasonable number of regulatory alternatives and adopt 
the most cost effective or least burdensome alternative that achieves 
the objectives of the rule.
    This proposed rule does not contain Federal mandates (under the 
regulatory provisions of Title II of the UMRA) for State, local and 
tribal governments or the private sector of $100 million or more in any 
one year. Thus, the rule is not subject to the requirements of sections 
202 and 205 of the UMRA.

Executive Order 12372

    This Supplemental Nutrition Assistance Program is listed in the 
Catalog of Federal Domestic Assistance under Number 10.551 and is 
subject to Executive Order 12372, which requires intergovernmental 
consultation with State and local officials. (See 2 CFR chapter IV.) 
Since SNAP is State-administered, FNS has formal and informal 
discussions with State and local officials on an ongoing basis 
regarding program requirements and operations. This provides USDA with 
the opportunity to receive regular input from program administrators 
and contributes to the development of feasible program requirements. 
For example, SNAP participated in three webinars covering FRA 
implementation and responded to State agency questions and concerns 
over implementation. SNAP also is providing ongoing technical 
assistance with State agencies covering implementation of the FRA and 
work requirements more generally.

Federalism Summary Impact Statement

    Executive Order 13132 requires Federal agencies to consider the 
impact of their regulatory actions on State and local governments. 
Where such actions have federalism implications, agencies are directed 
to provide a statement for inclusion in the preamble to the regulations 
describing the agency's considerations in terms of the three categories 
called for under Section (6)(b)(2)(B) of Executive Order 13132. The 
Department has considered the impact of this rule on State and local 
governments and has determined that this rule does not have federalism 
implications. Therefore, under section 6(b) of the Executive Order, a 
federalism summary is not required.

Executive Order 12988, Civil Justice Reform

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This rule is intended to have preemptive effect 
with respect to any State or local laws, regulations or policies which 
conflict with its provisions or which would otherwise impede its full 
and timely implementation. This rule is not intended to have 
retroactive effect unless so specified in the Effective Dates section 
of the final rule. Prior to any judicial challenge to the provisions of 
the final rule, all applicable administrative procedures must be 
exhausted.

Civil Rights Impact Analysis

    FNS has reviewed the proposed rule, in accordance with Departmental 
Regulation 4300-004, ``Civil Rights Impact Analysis,'' to identify and 
address any major civil rights impacts the proposed rule might have on 
program participants on the basis of age, race, color, national origin, 
sex (including gender identity and sexual orientation), or disability. 
We believe that the provisions of the FRA and the requirements for 
verification and screening will have a potential impact on certain 
protected groups as it relates to SNAP work requirements. However, an 
adverse impact analysis could not be conducted due to data limitations 
for the potential impact on individuals based on race, ethnicity, 
gender, and age that may be subject to the time limit. We

[[Page 34348]]

also believe that the addition of the new ABAWD exceptions will provide 
greater and continuous access to SNAP benefits for SNAP applicants and 
participants. We find that the implementation of mitigation strategies 
and monitoring will lessen these potential impacts.

Executive Order 13175

    Executive Order 13175 requires Federal agencies to consult and 
coordinate with Tribes on a government-to-government basis on policies 
that have Tribal implications, including regulations, legislative 
comments or proposed legislation, and other policy statements or 
actions that have substantial direct effects on one or more Indian 
Tribes, on the relationship between the Federal Government and Indian 
Tribes, or on the distribution of power and responsibilities between 
the Federal Government and Indian Tribes.
    The Department expects this proposed rule will impact tribes to a 
no greater or lesser degree than other applicant or eligible SNAP 
households. FNS provided an opportunity for consultation on March 15, 
2024. The Tribes had minimal comments, but one Tribe raised two 
concerns. First, the Tribe described the challenges and burden that 
former foster care youth face in obtaining formal documentation needed 
to verify that they were in foster care, especially in rural areas. FNS 
appreciates these concerns and the proposed requirements in this rule 
are intended to reduce this burden on individuals by requiring the 
State agency to use information already available to verify exception 
status. Second, the Tribe raised concerns over the decrease in the 
allotment of discretionary exemptions from 12 to 8 percent of the ABAWD 
caseload. FNS recognizes this concern, however, the decrease in 
discretionary exemptions is a statutory provision of the FRA and 
therefore, cannot be changed by this rulemaking.
    If a Tribe requests further consultation in the future, FNS will 
work with the Office of Tribal Relations to ensure meaningful 
consultation is provided.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 35; 5 CFR 1320) 
requires the Office of Management and Budget (OMB) approve all 
collections of information by a Federal agency before they can be 
implemented. Respondents are not required to respond to any collection 
of information unless it displays a current valid OMB control number. 
The agency is requesting a revision for OMB Control Number 0584-0479 
for these new, existing, and changing provisions in this rule. These 
changes are contingent upon OMB approval under the Paperwork Reduction 
Act of 1995. Additionally, when the information collection requirements 
have been approved, FNS will publish a separate action in the Federal 
Register announcing OMB's approval.
    Comments on this proposed rule must be received by May 30, 2024. 
Send comments to the Office of Information and Regulatory Affairs, OMB, 
Attention: Desk Officer for FNS, Washington, DC 20503. Please also send 
a copy of your comments to Catrina Kamau, Chief, Certification Policy 
Branch, 1320 Braddock Place, 5th Floor; Alexandria, Virginia 22314. For 
further information, or for copies of the information collection 
requirements, please contact Catrina Kamau indicated above.
    Comments are invited on: (a) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information shall have practical 
utility; (b) the accuracy of the agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used; (c) ways to enhance the quality, 
utility, and clarity of the information to be collected; and (d) ways 
to minimize the burden of the collection of information on those who 
are to respond, including use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology.
    All responses to this document will be summarized and included in 
the request for OMB approval. All comments will also become a matter of 
public record.
    Title: Supplemental Nutrition Assistance Program: Work Requirements 
and Screening.
    OMB Number: 0584-0479.
    Expiration Date: 2/28/2026.
    Type of Request: Revision to an existing collection.
    Abstract: This proposed rule would amend SNAP regulations to 
implement changes made by the Fiscal Responsibility Act (FRA) of 2023. 
Some of the proposed changes would modify current regulations resulting 
in an increase in the reporting burden for State agencies, while others 
will result in no change.
    The FRA amended the exceptions from the time limit, increasing the 
upper limit of the age-based exception from 50 to 55 over two years and 
adding three new exceptions for homeless individuals, veterans, and 
individuals aging out of foster care. The changes to the age-based 
exception will result in an increase in the number of individuals 
subject to the time limit, while the new exceptions will result in a 
decrease. The Department estimates a net increase in the number of 
individuals subject to the time limit. As a result, the Department 
estimates an increase in burden for State agencies and individuals. The 
Department anticipates additional burden related to verification of 
work hours and countable months, issuance and review of the 
Consolidated Work Notice, and the review of the oral explanation of the 
work requirements for individuals newly subject to the time limit. The 
Department also anticipates additional burden related to the issuance 
and review of the Notice of Adverse Action for individuals newly 
subject to the time limit who reach three countable months and become 
ineligible. The Department is accounting for this net increase in 
individuals subject to the time limit and the resulting additional 
burden in this information collection.
    The FRA amended the SNAP program purpose to include assisting low-
income individuals in obtaining employment and earnings. The Department 
does not anticipate any burden related to this change. The FRA also 
reduced the annual allotment of discretionary exemptions and reduced 
carryover of unused exemptions. The Department does not estimate any 
change in burden related to reporting of discretionary exemptions, 
which is covered under OMB Control Number 0584-0594 (Food Programs 
Reporting System (FPRS); expiration date: 09/30/2026).
    In addition to implementing the provisions of the FRA, this 
proposed rule would also establish regulations that require State 
agencies to screen individuals for exemptions from the general work 
requirements and exceptions from the time limit. Currently, State 
agencies are required to screen individuals for exemptions from the 
general work requirements and exceptions from the time limit at initial 
and recertification application. However, this requirement is not 
captured in regulations and the related burden not captured in any 
existing information collection. The Department is including new burden 
related to screening in this information collection, which is required 
to ensure State agencies apply ABAWD policy correctly.
    This proposed rule would also amend regulations to require State 
agencies to use all available information to verify exception status, 
when questionable, before requiring individuals to provide 
verification. The Department does not

[[Page 34349]]

anticipate a change in the burden related to the verification of 
questionable information, which is covered under OMB Control Number 
0584-0064 (SNAP Forms: Applications, Periodic Reporting, Notices; 
expiration date: 02/29/2024). The Department anticipates an increase in 
burden related to verification of questionable exception status, which 
will be offset by a decrease in burden related to the verification 
provision of this proposed rule.
    The Department also anticipates start-up burden related to the 
statutory and regulatory changes. State agencies will need to update 
their eligibility systems and notices to include the new exceptions and 
changes to the age-based exception. State agencies will also need to 
update their policy manuals and documents with the changes to ABAWD 
eligibility and the screening requirements. Lastly, State agencies will 
need to develop and provide training on the new requirements to State 
agency staff.
    These new requirements necessitate a revision to OMB Control Number 
0584-0479 (Expiration Date: 02/28/2026). The Department is seeking a 
renewal of OMB Control Number 0584-0479 during the Final Rule phase. 
OMB Control Number 0584-0479 currently covers burden related to 
preparation and submission of ABAWD waivers. ABAWD waivers are 
submitted via the Waiver Information Management System (WIMS), and the 
burden for this submission which is covered under OMB Control Number 
0584-0083 (Operating Guidelines, Forms, Waivers, Program and Budget 
Summary Statement; expiration date: 9/30/2026). The proposed rule would 
not make changes to burden covered under OMB Control Number 0584-0083. 
Due to the addition of new burden items, the Department recommends 
changing the title of 0584-0479 to ``Supplemental Nutrition Assistance 
Program: Work Requirements and Screening.''

Start-Up Burden

    Respondents: State Agencies.
    Estimated Number of Respondents: 53 State Agencies and 107,370 
eligibility workers.
    Estimated Number of Respondents per Respondent: 2,029 responses.
    Estimated Total Annual Burden on Respondents: 473,857 hours, an 
increase of 473,857 hours from current inventory of 0 hours in 0584-
0479.

Ongoing Burden

    Respondents: State Agencies and Individuals.
    Estimated Number of Respondents: 53 State Agencies and 
26,801,899.49 Individuals.
    Estimated Number of Respondents per Respondent: 505,696.88 
responses per State Agency and one (1) per Individual.
    Estimated Total Annual Burden on Respondents: 3,617,537.24 hours 
(1,809,350.12 hours for State Agencies and 1,808,187.12 hours for 
Individuals), an increase of 3,616,374.244 hours from current inventory 
of 1,163 hours in 0584-0479.
    The total burden for this rulemaking is 4,090,231.24 burden hours 
and 53,711,362.97 total annual responses. This represents an increase 
to the burden hours for OMB Control Number 0584-0479, resulting in a 
total inventory of 4,091,394.24 burden hours (4,090,231.24 new burden 
hours + 1,163 existing burden hours) and 53,711,362.97 responses 
(unchanged).
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BILLING CODE 3410-30-P

E-Government Act Compliance

    The Department is committed to complying with the E-Government Act 
of 2002, to promote the use of the internet and other information 
technologies to provide increased opportunities for citizen access to 
Government information and services, and for other purposes.

List of Subjects

7 CFR Part 271

    Administrative practice and procedures, Employment, Supplemental 
Nutrition Assistance Program.

7 CFR Part 273

    Administrative practice and procedure, Able-bodied adults without 
dependents, Employment, Time limit, Work requirements.

    Accordingly, the Food and Nutrition Service proposes to amend 7 CFR 
part 271 and 273 as follows:

0
1. The authority citation for parts 271 and 273 continues to read as 
follows:

    Authority: 7 U.S.C. 2011-2036.

PART 271--GENERAL INFORMATION AND DEFINITIONS

0
2. In Sec.  271.1, amend paragraph (a) by adding two sentences at the 
end of the paragraph to read as follows:


Sec.  271.1  General purpose and scope.

    (a) * * * That program includes as a purpose to assist low-income 
adults in obtaining employment and increasing their earnings. Such 
employment and earnings, along with program benefits, will permit low-
income households to obtain a more nutritious diet through normal 
channels of trade by increasing food purchasing power for all eligible 
households who apply for participation.
* * * * *
0
3. In Sec.  271.2, revise the definitions of ``homeless individual'' 
and ``screening'' to read as follows:


Sec.  271.2  Definitions

* * * * *
    Homeless individual means
    (1) An individual who lacks a fixed and regular nighttime 
residence, including, but not limited to, an individual who will 
imminently lose their nighttime residence; or
    (2) An individual whose primary nighttime residence is:
    (i) A supervised shelter designed to provide temporary 
accommodations (such as a welfare hotel or congregate shelter);
    (ii) A halfway house or similar institution that provides temporary 
residence for individuals intended to be institutionalized;
    (iii) A temporary accommodation for not more than 90 days in the 
residence of another individual; or
    (iv) A public or private place not designed for, or ordinarily 
used, as a regular sleeping accommodation for human beings (a hallway, 
a bus station, a lobby, or similar places).
* * * * *
    Screening means an evaluation by the eligibility worker as to 
whether a person meets an exemption from the general work requirements, 
meets an exception from the able-bodied adults without dependents time 
limit, or should or should not be referred for participation in an 
employment and training program. Screening for participation in 
employment and training programs is not considered an approvable E&T 
component.
* * * * *

PART 273--CERTIFICATION OF ELIGIBLE HOUSEHOLDS

0
3. In Sec.  273.7, add paragraph (b)(3) to read as follows:


Sec.  273.7  Work provisions.

* * * * *
    (b) * * *
    (3) State agencies must screen individuals to determine if they 
meet an exemption listed in paragraph (b)(1) of this section at 
certification and recertification.
* * * * *
0
4. In Sec.  273.24:
0
a. Amend paragraph (c)(1) by removing the number ``50'' and adding in 
its place ``55'';
0
b. Amend paragraph (c)(5) by removing ``or'' at the end of the 
paragraph;
0
c. Amend paragraph (c)(6) by removing the period and adding a semicolon 
in its place;
0
d. Add paragraphs (c)(7) through (10);
0
e. Amend paragraph (g)(3) by removing the number ``12'' and adding in 
its place ``8'';
0
f. Amend paragraph (h)(2)(i) by adding a sentence at the end; and
0
g. Add paragraphs (k) and (l).
    The additions read as follows:


Sec.  273.24  Time Limit for able-bodied adults.

* * * * *
    (c) * * *
* * * * *
    (7) Homeless, as defined in Sec.  271.2 of this chapter;
    (8) A veteran, defined as an individual who, regardless of the 
conditions of their discharge or release from, served in the United 
States Armed Forces (such as Army, Marine Corps, Navy, Air Force, Space 
Force, Coast Guard, and National Guard), including an individual who 
served in a reserve component of the Armed Forces, or served as a 
commissioned officer of the Public Health Service, Environmental 
Scientific Services Administration, or the National Oceanic and 
Atmospheric Administration; or
    (9) An individual who is 24 years of age or younger and who was in 
foster care under the responsibility of any State, District, U.S. 
Territories, Indian Tribal Organization, or Unaccompanied Refugee 
Minors Program on the date of attaining 18 years of age, including 
those who remain in extended foster care in States that have elected to 
extend foster care in accordance with section 475(8)(B)(iii) of the 
Social Security Act (42 U.S.C. 675(8)(B)(iii) or those who leave 
extended foster care before the maximum age.
    (10) Unless otherwise changed by law, the exceptions provided at 
paragraphs (c)(7) through (9) of this section cease to have effect on 
October 1, 2030, and the age limit provided in paragraph (c)(1) of this 
section reverts from ``55 years of age or older'' to ``50 years of age 
or older'' on October 1, 2030.
* * * * *
    (h) * * *
    (2) * * *
    (i) * * * Starting in FY 2026, FNS will increase the estimated 
number of exemptions allocated to the State agency for the subsequent 
fiscal year by the remaining balance of unused exemptions earned for 
the previous fiscal year.
* * * * *
    (k) Screening. The State agency must screen individuals for 
exceptions from the time limit listed under paragraph (c) of this 
section at certification and recertification. The State agency must not 
assign countable months unless it has screened the individual and 
determined that no exception applies.
    (1) Changes in exception status during the certification period.
    (i) Loss of an exception. If during the certification period an 
individual has a change in circumstances that results in the loss of an 
exception from the time limit, the State agency cannot begin assigning 
countable months until it screens the individual to determine whether 
any other exception applies.
    (ii) Newly meeting an exception. If during the certification period 
an individual subject to the time limit has a change in circumstance 
that results in the individual now meeting an exception, the State 
agency must act promptly to apply the exception and

[[Page 34356]]

cannot assign a countable month once the State receives information 
that is not questionable. If the State agency determines the 
information is questionable, the State agency must act promptly to 
verify the information. Once verified, the State agency must apply the 
exception and cannot assign countable months.
    (l) Verification of exceptions. If the State agency determines an 
individual's exception status under paragraph (c) of this section is 
questionable, the State agency must first attempt to verify exception 
status using information available to the State agency, such as 
information from other public assistance programs through data sharing, 
before requiring individuals provide documentary evidence or other 
sources of verification.

Cynthia Long,
Administrator, Food and Nutrition Service.

    Note:  The following appendix will not appear in the Code of 
Federal Regulations.

Appendix A--Regulatory Impact Analysis

I. Statement of Need

    This proposed rulemaking is necessary to amend Supplemental 
Nutrition Assistance Program (SNAP) regulations to reflect mandates 
within the Fiscal Responsibility Act (FRA) of 2023 (Pub. L. 118-5) 
establishing changes to SNAP's work requirements and time limit for 
several groupings of adults. The FRA also directs the U.S. 
Department of Agriculture (the Department) to add to the program 
purpose language in the Food and Nutrition Act of 2008 (the Act), as 
amended. The proposed rule amends SNAP regulations to incorporate 
several provisions of the FRA: adjust SNAP's able-bodied adult 
without dependents (ABAWD) work requirement and time limit on a 
phased-in approach to newly included individuals who are aged 50-54; 
establish new exceptions for individuals who are veterans, homeless, 
and youth aged 24 or younger who have aged out of a foster care 
program from SNAP's ABAWD work requirement and time limit; decrease 
State agencies' annual allotment of discretionary exemptions for 
individuals subject to the ABAWD time limit from 12 percent to 8 
percent; and limit State agencies' ability to carryover unused 
discretionary exemptions beyond one year. The provisions outlined 
above will be phased in between the enactment of the legislation in 
June 2023, through October 2025, with several provisions sunsetting 
October 1, 2030. The proposed rule also makes a discretionary 
amendment to the regulations requiring State agencies to screen 
individuals for exceptions to the time limit, as well as exemptions 
from the general work requirement, as State agencies must screen for 
both to adequately determine if an individual should be subject to 
the time limit. The Department is proposing to amend the regulations 
to clarify requirements for screening to improve consistency in 
program operations across States and provide quality customer 
service.

II. Summary of Impacts

    The Department estimates the net total increase in federal 
transfers (SNAP benefit spending) associated with the provisions of 
this proposed rule to be approximately $2.8 billion over the nine 
years Fiscal Year (FY) 2023-FY 2031, averaging $306.5 million per 
year. Over the nine-year period FY 2023-FY 2031,\27\ this is the net 
result of a reduction in transfers of $6.3 billion by terminating 
benefits to about 2.0 million individuals and reducing the benefits 
of 103,000 individuals by $155.2 million, and an increase in 
transfers of $9.2 billion due to about 2.7 million individuals 
meeting exceptions from the ABAWD time limit. Over the nine-year 
period, federal administrative costs (not including transfers) are 
estimated to total $252.5 million, or an annual average of $28.1 
million. Total State agency administrative expenses are also 
estimated to be approximately $252.5 million over the nine-year 
period, or an annual average of $28.1 million. Costs associated with 
administrative burden to individual SNAP participants are estimated 
to be approximately $322.0 million over the nine-year period, or an 
annual average of $35.8 million. See Table 1 for a year-by-year 
presentation of changes to transfers, federal administrative costs, 
State agency administrative costs, and burden costs to individual 
participants.
---------------------------------------------------------------------------

    \27\ A nine-year analysis period is used to align with the 
implementation and sunset periods established by the FRA. See 
discussion of baseline and time horizon of analysis for more detail.
---------------------------------------------------------------------------

    This proposed rule will primarily affect SNAP participants who 
are subject to the ABAWD work requirement and time limit, which the 
Department estimates to be approximately 9.3 percent of SNAP 
participants upon full implementation of the FRA's provisions in FY 
2026. However, many of these participants will meet the work 
requirement or receive an exception, so far fewer will lose 
eligibility for SNAP.
    The estimated net impact of the proposed rule's change in the 
age-based exceptions and three new exceptions is a net increase in 
SNAP participation of about 55,000 individuals per year when fully 
implemented. In FY 2026, this includes 345,000 participants losing 
eligibility, 369,000 participants retaining eligibility through one 
of the new exceptions, and about 30,000 new participants. See Table 
8 for year-by-year details on additional participation and transfer 
impacts.
    The rule is estimated to increase administrative burden for most 
State SNAP agencies at initial implementation, throughout the period 
the provisions are in effect, and at the sunset of the provisions 
that expire on October 1, 2030. The rule is expected to result in a 
one-time administrative burden of 473,857 total hours (about $10.3 
million in FYs 2023 and 2024 after 50 percent federal cost 
reimbursement \28\) in start-up costs for State agencies. Ongoing 
State agency administrative burden is expected to increase annually 
by an average of about 1.4 million total hours for 53 State agencies 
(about $25.3 million annually after 50 percent federal cost 
reimbursement). The one-time total State agency administrative 
burden of sunsetting the applicable provisions within this proposed 
rule is estimated to be 625,024 total hours (about $15.0 million in 
FYs 2030 and 2031 after 50 percent federal cost reimbursement). The 
rule provisions will impose additional administrative burden on 
participants who are subject to the ABAWD work requirement, 
estimated to be an ongoing average annual burden of 1.4 million 
hours for all individuals impacted, or (about $35.3 million 
annually), as well as will impose a one-time burden during the 
sunsetting of applicable provisions of 151,167 hours (or about $4.0 
million in FY 2031). In addition to the federal cost of the 50 
percent reimbursement to State agencies, the rule is expected to 
result in a one-time administrative burden of 90 hours at 
implementation (or $6,760 in FY 2024) and a one-time administrative 
burden of 63 hours at sunset (or $5,813 in FY 2030) to the Federal 
Government. The impacts of the proposed rule's provisions are 
summarized in the following table (Table 1).
---------------------------------------------------------------------------

    \28\ Fifty percent of State agencies' allowable SNAP 
administrative costs are reimbursed by the Federal Government, as 
defined at 7 CFR 277.4(b).

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[[Page 34357]]

[GRAPHIC] [TIFF OMITTED] TP30AP24.005

    As required by OMB Circular A-4, in Table 2 below, the 
Department has prepared an accounting statement showing the 
annualized estimates of benefits, costs, and transfers associated 
with the provisions of this rule. Due to the primary focus on 
transfer

[[Page 34358]]

effects in this near-term analysis, the Department has used a 
discount rate of 2 percent. Increases in SNAP benefit payments are 
categorized as transfers; increases in administrative burden for 
State agencies, households, and the Federal Government are 
categorized as costs.
[GRAPHIC] [TIFF OMITTED] TP30AP24.006

    In the discussion that follows, there is a section-by-section 
description of the effects of the proposed rule on SNAP 
participants, the Federal Government, and State agencies 
administering SNAP.

III. Background

A. Work Requirements in SNAP

    The Food and Nutrition Act of 2008 (the Act), as amended, 
establishes national eligibility standards for SNAP, including work 
requirements for certain individuals. The first of these 
requirements, referred to as the general work requirement, requires 
individuals between the ages of 16-59 who are able to work to 
register for work; accept an offer of suitable employment; not 
voluntarily quit or reduce hours of employment below 30-hours per 
week, without good cause; and participate in workfare or SNAP 
Employment and Training (E&T) \29\ if required by the State agency. 
Most SNAP participants are exempt from the general work requirement 
because they are older adults, children, have a disability, or meet 
another exemption from the general work requirement listed in the 
Act.
---------------------------------------------------------------------------

    \29\ The SNAP Employment and Training (E&T) program helps SNAP 
participants gain skills and find work that moves them forward to 
self-sufficiency. Depending on whether a State agency operates a 
mandatory E&T program, individuals in some States may be required to 
participate in the State's E&T program as a condition of meeting 
work requirements. Federal funding for SNAP E&T was $384 million in 
FY 2023.
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    A subset of individuals who are subject to the general work 
requirement are also subject to an additional requirement, referred 
to as the able-bodied adult without dependents (ABAWD) work 
requirement. Prior to the FRA, individuals subject to the ABAWD work 
requirement were individuals ages 18 to 49 who do not have a child 
(under age 18) in their SNAP household and are not considered 
disabled by SNAP rules.\30\ The Act limits individuals who are 
subject to the ABAWD work requirement and time limit, also referred 
to as time-limited participants,

[[Page 34359]]

to receiving SNAP benefits for 3 months in a 36-month period (the 
time limit) unless they are meeting the ABAWD work requirement, live 
in an area where the time limit is waived due to a lack of 
sufficient jobs or a high unemployment rate, or are otherwise 
exempt. If an individual subject to the ABAWD work requirement and 
time limit receives SNAP benefits in a month when they did not meet 
the work requirement or otherwise were waived or excepted from the 
time limit as noted above, that month is considered a ``countable'' 
month and counts as 1 of the 3 months within the 36-month period 
where the individual may still retain SNAP eligibility. The Act 
provides exceptions from the ABAWD work requirement and time limit 
based on certain individual circumstances, such as physical or 
mental limitations that limit ability to work, need to care for a 
dependent household member, pregnancy, or meeting an exemption from 
the general work requirement. Individuals can meet the ABAWD work 
requirement by working, participating in a qualifying work program, 
or any combination of the two, for at least 20 hours per week 
(averaged monthly to 80 hours per month). Individuals can also meet 
the ABAWD work requirement by participating in and complying with 
workfare. For the purposes of meeting the ABAWD work requirement, 
working includes unpaid or volunteer work that is verified by the 
State agency.
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    \30\ In SNAP, an individual is considered disabled if they 
receive federal disability or blindness payments under the Social 
Security Act, including Supplemental Security Income (SSI), receive 
state disability or blindness payments based on SSI rules, receive 
disability retirement benefits from a governmental agency because of 
a permanent disability, receive an annuity under the Railroad 
Retirement Act and are eligible for Medicare or are considered 
disabled under SSI; are a veteran who is totally disabled, 
permanently homebound, or in need of regular aid and attendance; or 
are the surviving spouse or child of a veteran who is receiving VA 
benefits and is considered permanently disabled.
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B. Characteristics of Individuals Subject to the ABAWD Work 
Requirement and Time Limit

    The Department estimates that in FY 2024, approximately 9 
percent of SNAP participants are ages 18 to 49 and subject to the 
ABAWD work requirement, and 84 percent of them are in one-person 
SNAP households.\31\ These time-limited participants have very low 
household gross income, averaging only 32 percent of the federal 
poverty line (FPL). For comparison, the average SNAP household has a 
gross income twice as high, or about 65 percent of the FPL. About 21 
percent of time-limited participants are experiencing homelessness 
at the time of SNAP certification or recertification.\32\ Research 
indicates that time-limited participants who are not meeting the 
ABAWD work requirement can face significant barriers to finding or 
increasing their employment. A 2021 USDA study in 9 States found 
that 5 to 12 percent of SNAP participants subject to the time limit 
were meeting the work requirement when those States reinstated the 
time limit after the Great Recession. Participants who were homeless 
were much less likely to meet the ABAWD work requirement. The study 
also found the reinstatement of the time limit substantially reduced 
SNAP participation among individuals subject to the time limit, with 
no evidence of increased employment or earnings.\33\
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    \31\ Note: The Department estimates that individuals subject to 
the ABAWD work requirement are a larger share of the caseload than 
would be suggested by the most recent SNAP QC data available (from 
pre-pandemic FY 2020). This is due to the extended suspension of the 
ABAWD time limit during the COVID-19 Public Health Emergency by the 
Families First Coronavirus Response Act (FFCRA). While the pre-
pandemic FY 2020 QC data suggests this group accounts for 7.3 
percent of SNAP participants, the Department believes 9 percent is a 
more accurate estimate for the start of FY 2024. This estimate is 
based on caseload trends in the wake of the Great Recession when the 
time limit was similarly temporarily lifted by the American Recovery 
and Reinvestment Act of 2009.
    \32\ Based on tabulation of pre-pandemic FY 2020 SNAP QC data.
    \33\ Wheaton, Laura et al. (2021) The Impact of SNAP Able-Bodied 
Adults Without Dependents (ABAWD) Time Limit Reinstatement in Nine 
States. Prepared by the Urban Institute for the USDA Food and 
Nutrition Service, 2021. Available at: https://www.fns.usda.gov/snap/impact-snap-able-bodied-adults-without-dependents-abawd-time-limit-reinstatement-nine.
---------------------------------------------------------------------------

C. Factors That Permit Time-Limited Individuals To Continue 
Participating in SNAP Beyond Three Months

    As previously discussed, some individuals who are subject to the 
ABAWD work requirement may meet an exception from the time limit. 
The Act also allows for waivers of the time limit in geographic 
areas with an unemployment rate over 10 percent or an insufficient 
number of jobs to provide employment for individuals, as defined at 
7 CFR 273.24(f). Individuals residing in areas with a waiver of the 
time limit continue receiving benefits even if they are not meeting 
the ABAWD work requirement for more than 3 months in a 36-month 
period. Lastly, the Act establishes an annual allotment of 
discretionary exemptions that State agencies may use to extend 
eligibility for a time-limited participant who is not meeting the 
ABAWD work requirement. Each discretionary exemption can extend 
eligibility for one participant for one month and a single 
participant can receive multiple one-month discretionary exemptions. 
As defined by law, each State agency's allotment of discretionary 
exemptions is calculated annually by the Department, based on the 
total number of time-limited participants in the State who have 
exceeded three countable months due to the time limit in the 
preceding fiscal year, known as ``covered'' individuals. Prior to 
the FRA, State agencies' annual allotments of discretionary 
exemptions were based on 12 percent of the total number of covered 
individuals in the State. If a State agency did not use the 
exemptions, they could be carried over indefinitely.

D. FRA Legislative Updates

    The FRA \34\ amended the Act, revising the definition of who is 
subject to the ABAWD work requirement and time limit, exceptions 
from the time limit, procedures for the calculation and carryover of 
discretionary exemptions, as well as the program purpose. Based on 
these changes, the Department is proposing to amend the regulations 
to reflect the requirements of the FRA. The FRA also required the 
Department to publicize all available State requests for waivers 
authorized by Sec. 6(o)(4)(A), including supporting data, and all 
Department approvals of waivers within 30 days of enactment. The 
Department complied with this requirement and is not proposing 
rulemaking relating to this provision.
---------------------------------------------------------------------------

    \34\ Full text of the law can be found at: https://www.congress.gov/bill/118th-congress/house-bill/3746/text.
---------------------------------------------------------------------------

E. Baseline and Time Horizon of Analysis

    Our baseline for measuring the costs, benefits, and transfers 
associated with this proposed rule is the Department's estimated 
SNAP participation and benefit spending for FYs 2023-2031, shown in 
Table 3 below. The baseline represents the Department's best 
estimate of SNAP participation and spending (in nominal dollars) in 
the absence of the provisions included in this proposed rule. All 
costs related to administrative burden for State agencies, the 
Federal Government and households are measured against currently 
approved burden estimates in OMB Control No. 0584-0479.
    This regulatory impact analysis (RIA) uses FY 2023-FY 2031 as 
the timeframe for analysis because this range fully incorporates the 
implementation and sunsetting periods of FRA provisions. A 9-year 
analysis period (rather than a more typical 5-year or 10-year 
period) is used to align with the implementation period established 
by the FRA, beginning in September 2023. While some of the 
provisions included in the FRA and in the proposed rule will be 
ongoing, others are expected to sunset at the start of FY 2031. As a 
portion of SNAP participants will not be affected by the sunset 
immediately upon the start of the fiscal year, but rather at their 
screening that will take place during FY 2031, the Department 
expects there will be some continuing transfer impacts in FY 2031, 
as well as administrative costs associated with the sunsetting of 
certain provisions in FYs 2030 and 2031. Thus, the Department 
determined that the period FY 2023-FY 2031 is the appropriate period 
to assess the proposed rule's economic effects.

[[Page 34360]]

[GRAPHIC] [TIFF OMITTED] TP30AP24.019

F. Methodology

    Multiple data sources were used to estimate how the provisions 
in the proposed rule would affect SNAP participants, State agencies, 
and the Federal Government. Methodology and estimates are discussed 
in this section, according to the data source used. To estimate the 
effects of the proposed rule's provisions, the proportion of SNAP 
participants likely to be affected by each provision was derived 
from the following data sources. Those ratios were then applied to 
the Mid-Session Review of the FY 2024 President's Budget baseline 
for SNAP spending and participation to produce estimates of changes 
in participation and benefit spending (in nominal dollars) for 
future years. These were the most recent baseline inputs available 
at the time this analysis was prepared.
---------------------------------------------------------------------------

    \35\ Each year as part of the process of developing the 
President's Budget, the Department produces estimates of expected 
SNAP participation and benefit spending over a ten-year period. 
Estimates in this Regulatory Impact Analysis are based on Department 
Estimates for the Mid-Session Review of the FY 2024 President's 
Budget; benefit values for FY 2023 reflect certified benefit amounts 
(excluding emergency allotments authorized during the COVID-19 
Public Health Emergency).
---------------------------------------------------------------------------

SNAP Quality Control Data

    The estimates provided in this RIA are primarily based on SNAP 
Quality Control (QC) data from the pre-pandemic portion of FY 
2020,\36\ and the SNAP baseline included in Table 3. At the time of 
analysis, this is the most recent period for which the Department 
has QC data from all 53 State agencies due to interruptions in QC 
data collection during the COVID-19 Public Health Emergency. SNAP QC 
data are collected annually as part of the ongoing effort to 
determine the accuracy of SNAP certification actions.\37\ Data are 
collected for a sample of SNAP households that is statistically 
representative at both the national and state levels. The pre-
pandemic FY 2020 QC dataset includes data from 18,319 households, 
including information on household earnings, household composition, 
and participant characteristics that permit inference of ABAWD 
status (e.g., age, disability status, presence of children in the 
SNAP household, and whether the individual is exempt from the SNAP 
general work requirement). The data also include information that 
can be used to infer employment status (e.g., amount of monthly 
earned income). The sample of households included in the pre-
pandemic FY 2020 dataset are weighted to be representative of the 
SNAP caseload during that period nationally and in each State.
---------------------------------------------------------------------------

    \36\ SNAP QC data from the pre-pandemic period covers October 
2019 to February 2020, as data collection after February 2020 was 
limited by the COVID-19 public health emergency.
    \37\ Detailed information on the QC review process, including 
sampling requirements and procedures for conducting QC reviews, can 
be found on the FNS website at: https://www.fns.usda.gov/snap/quality-control.
---------------------------------------------------------------------------

    Estimates derived from the QC data include:

50-54-Year-Olds Newly Subject to the ABAWD Work Requirement and Time 
Limit

     Share of SNAP participants that are likely to be newly 
subject to the ABAWD work requirement and time limit due to the 
FRA's change to include 50-to-54-year-olds (2.0 percent of total 
SNAP participants). Among this group, we estimated:
    [cir] The share that are likely meeting the ABAWD work 
requirement, based on information about employment status and 
earnings (10.6 percent).
    [cir] The share that are likely to increase their work hours in 
order to begin meeting the ABAWD work requirement, based on earnings 
information (2.28 percent). Specifically, this estimate is based on 
the share of individuals who were estimated to work 15-19 hours per 
week.
    [cir] The share that are likely to be excepted from the ABAWD 
work requirement for reasons other than the three new exceptions 
temporarily established by the FRA (e.g., a physical or mental 
limitation that limits ability to work) because they are exempt from 
the general work requirement for a reason other than disability (33 
percent).
    [cir] The average monthly per person benefit received by 
individuals in this group (26.6 percent of the Thrifty Food Plan 
(TFP)).

New Exception for Homelessness

     Share of time-limited participants (between the ages of 
18-54) who are also experiencing homelessness (20.6 percent). Among 
this group, we estimated:
    [cir] The share that are likely meeting the ABAWD work 
requirement, based on information about employment status and 
earnings (2.7 percent).
    [cir] The share that are likely to increase their work hours in 
order to begin meeting the ABAWD work requirement (1 percent).\38\ 
Because these individuals would begin meeting the ABAWD work 
requirement, they are removed from the pool of individuals we 
estimate would receive an exception from the time limit.
---------------------------------------------------------------------------

    \38\ Note: We use 1 percent for this group, rather than 2.28 
percent, based on the assumption that individuals experiencing 
homelessness will face greater challenges in increasing their work 
hours due to unstable housing, transportation barriers, inconsistent 
access to hygiene materials or professional clothing, and other 
challenges related to homelessness, as described by sources such as 
the Urban Institute (https://www.urban.org/urban-wire/why-it-so-hard-people-experiencing-homelessness-just-go-get-job,), the 
National Alliance to End Homelessness (https://endhomelessness.org/resource/overcoming-employment-barriers/), and the University of 
Michigan School of Public Health (https://sph.umich.edu/pursuit/2020posts/homelessness-and-job-security-challenges-and-interventions.html).
---------------------------------------------------------------------------

    [cir] The share that are likely to be excepted from the ABAWD 
work requirement for reasons other than the three new exceptions 
temporarily established by the FRA (e.g., a physical or mental 
limitation that limits ability to work) because they are exempt from 
the general work requirement for a reason other than disability (32 
percent).
    [cir] The average monthly per person benefit received by 
individuals in this group (29.9 percent of the TFP).

Estimation of New SNAP Participation Based on the New FRA Exceptions

     To estimate the likely increase in SNAP participation 
as a result of the new exceptions in place, the Department estimated 
a 1 percent increase in the share of childless adults without 
disabilities between the ages of 18 and 49 in the SNAP baseline. 
This modest estimate is based on the fact that the FRA provisions 
went into effect at a time when many areas had waivers of the time 
limit due to high unemployment rates that occurred during the COVID-
19 pandemic. Hence, many of these individuals made eligible by the 
new exceptions may have already been participating in SNAP.

Changes in the Share of the Time-Limited SNAP Participants Between FY 
2020 and FY 2024

     The Department believes the number of time-limited SNAP 
participants increased between the period for which we have SNAP QC 
data (pre-pandemic FY 2020) and the end of FY 2023, when the FRA's 
provisions began to take effect. This is due to the temporary 
suspension of the ABAWD time limit for the duration of the COVID-19 
Public Health Emergency authorized by the Families First Coronavirus 
Response Act (FFCRA).
     Given that time-limited participants largely did not 
accrue countable months prior to July 2023 due to the temporary 
suspension of the ABAWD time limit during the pandemic, the 
Department believes time-

[[Page 34361]]

limited participants were a larger share of total participants at 
the end of FY 2023 and beginning of FY 2024 than indicated by the 
pre-pandemic FY 2020 QC data (7.3 percent) when fewer geographic 
areas had waivers of the time limit.
     The Department opted to use FY 2013 SNAP QC data as a 
proxy estimate for increased participation by time-limited 
individuals. In 2009, the time limit was similarly suspended 
nationwide for an extended period by the American Recovery and 
Reinvestment Act of 2009 and most States continued to qualify for 
and use Statewide waivers through FY 2013 due to high unemployment 
rates that lingered after the Great Recession. FY 2013 SNAP QC data 
indicate that time-limited participants were 9.0 percent of total 
SNAP participants.
     Correspondingly, the Department assumed that time-
limited participants ages 18-49 make up a larger share of 
participants (9.0 percent) at the start of FY 2024, before declining 
to back to 7.3 percent of participants in FY 2025 and subsequent 
years as was seen in pre-pandemic FY 2020 when unemployment rates 
were lower. This adjustment was not made to time-limited 
participants ages 50-54 because their share of total participants 
was similar in the FY 2013 and pre-pandemic FY 2020 QC data.

Veterans' Participation in SNAP and ABAWD Status From American 
Community Survey (ACS) Data

    Given that the SNAP QC data do not include information about 
veteran status, the Department relied on 2022 American Community 
Survey (ACS) data to estimate how many individuals participating in 
SNAP may be subject to the ABAWD work requirement and are veterans. 
The ACS data were tabulated to determine how many individuals in the 
U.S. have prior military service, are between the ages of 18-54, 
participate in SNAP, do not have a disability,\39\ and do not have a 
child in their household.\40\ Compared to the total number of 
individuals reporting SNAP participation in the 2022 ACS, this 
resulted in an estimate that 0.22 percent of SNAP participants may 
be eligible for the new exception from the ABAWD time limit for 
veterans. Without data on how many of these veterans would be exempt 
from the ABAWD work requirement for reasons other than the three new 
exceptions temporarily established by the FRA (e.g., a physical or 
mental limitation that limits ability to work), we assume the same 
share as time-limited participants ages 18 to 49 (32 percent).
---------------------------------------------------------------------------

    \39\ As defined in SNAP rules.
    \40\ The ACS variables used to create this tabulation were: 
DRATX (``Veteran service connected disability rating''); HUPAC_RC1 
(``HH presence and age of children recode''); FS (``Yearly food 
stamp/Supplemental Nutrition Assistance Program (SNAP) 
recipiency''); MIL_RC1 (``Military service recode''); SSIP_RC1 
(``Supplementary Security Income past 12 months recode''); and 
AGEP_RC1 (``Age recode'').
---------------------------------------------------------------------------

    Without data on average monthly per person benefits for time-
limited participants who are also veterans, we assume that they 
receive the same average benefit as 18-to-54-year-old time-limited 
participants who are not working at least 20 hours per week (25.9 
percent of the TFP).

Former Foster Youths' Participation in SNAP From Administration for 
Children and Families (ACF)

    The SNAP QC data do not include information about participants 
that were formerly in the foster care system. The Department was 
unable to find a national survey that would permit it to estimate 
how many former foster youth between the ages of 18-24 participate 
in SNAP, nor to determine the share who may be considered subject to 
the ABAWD work requirement and time limit. In the absence of 
reliable data, the Department generated an estimate based on 
information available from the Administration for Children and 
Families (ACF) on how many youth age out of the foster care system 
each year, nationally. ACF indicates that about 20,000 youth 
emancipate from foster care each year,\41\ resulting in a total 
cohort of 18-24-year-old former foster youth of up to 140,000 
individuals. We adjusted the 140,000 cohort size downward to reflect 
the fact that about 68 percent of the U.S. population lives in 
States that have opted to provide foster care up to age 21,\42\ so 
there are likely proportionally fewer 18-to-20-year-olds in the 
total former foster youth population. The adjustment resulted in an 
estimate that 99,000 former foster youth could fall into the 18-24 
age group that would be eligible for the new exception from the time 
limit.
---------------------------------------------------------------------------

    \41\ The United States Department of Health and Human Services, 
Administration for Children and Families publishes an annual 
Adoption and Foster Care Analysis and Reporting System (AFCARS) 
Report. The most recent report uses FY 2021 data. https://www.acf.hhs.gov/sites/default/files/documents/cb/afcars-report-29.pdf.
    \42\ This estimate is based on information in ``States with 
Approval to Extend Care Provide Independent Living Options for Youth 
up to Age 21'' from the Government Accountability Office, https://www.gao.gov/assets/gao-19-411.pdf.
---------------------------------------------------------------------------

    However, not all 99,000 individuals would participate in SNAP 
and be considered subject to the ABAWD work requirement. Using the 
best-available data and research on former foster youth outcomes, 
the Department assumes that approximately 65 percent of individuals 
in this group may be SNAP-ineligible, are already meeting the ABAWD 
work requirement, or are not subject to the ABAWD work requirement 
(for reasons that can include being a student, having a child in 
their household, or having a disability).\43\ In the absence of 
precise data to inform the estimate, the Department estimated that 
the remaining 35 percent of this group will benefit from the new 
exception (about 35,000 individuals per year).
---------------------------------------------------------------------------

    \43\ Sources informing this estimate include: The Annie E. Casey 
Foundation, https://www.aecf.org/resources/future-savings; Chapin 
Hall at the University of Chicago, https://www.chapinhall.org/wp-content/uploads/Midwest-Eval-Outcomes-at-Age-26.pdf; the United 
States Department of Agriculture, https://www.fns.usda.gov/snap/characteristics-snap-households-fy-2020-and-early-months-covid-19-pandemic-characteristics; and ABAWD Waiver coverage rates, https://www.fns.usda.gov/snap/ABAWD/waivers.
---------------------------------------------------------------------------

    Without data on average monthly per person benefits for time-
limited participants who are also former foster youth up to age 24, 
we assume that they receive the same average monthly benefit as 18-
to-49-year-old time-limited participants who are not working at 
least 20 hours per week (25.7 percent of the TFP).

SNAP ABAWD Waiver Coverage and ACS Data on Low-Income Population

    Waivers of the ABAWD time limit play a significant role in 
determining the number of participants who are subject to the time 
limit at any given time. The Department determined it was necessary 
to estimate the share of time-limited participants who are likely to 
live in a waived area to more accurately determine how many 
individuals would lose or retain eligibility annually due to the 
FRA. Without this adjustment, estimates would overstate both the 
increase in transfers associated with time-limited participants 
retaining SNAP eligibility because of the new exceptions, and the 
decrease in transfers associated with individuals ages 50-54 newly 
becoming subject to the ABAWD work requirement and time limit, and 
subsequently losing eligibility.
    Internal analyses were conducted to estimate the share of 
participants subject to the ABAWD work requirement likely to live in 
a waived area at two different points in time, based on the 
assumption that FY 2023 would have a higher level of waiver 
coverage, declining to stabilize at a lower rate in FY 2026:
    (1) Quarter 2 of FY 2023, to reflect a ``high'' degree of waiver 
coverage as FRA provisions began to go into effect, when many State 
agencies still had statewide waivers of the time limit due to high 
unemployment rates that occurred during the COVID-19 pandemic; and
    (2) Quarter 1 of FY 2020, to reflect a ``low'' degree of waiver 
coverage that occurred in the pre-pandemic months, after an extended 
period of relatively low unemployment rates nationally.
    To conduct these analyses, we identified the local areas covered 
by FNS-approved waivers \44\ of the ABAWD time limit in each of the 
two above-noted time periods. Then, ACS data were used to determine 
the share of the low-income population (defined as below 125 percent 
of the FPL) in the U.S. that lived in those waived areas; the low-
income population was used as a proxy for SNAP participants. The 
results of these analyses indicated that in a period of ``high'' 
waiver coverage, 55 percent of SNAP participants likely live in an 
area with a waiver of the time limit, and in periods of ``low'' 
waiver coverage, about 40 percent of SNAP participants likely live 
in an area with a waiver of the time limit. Additionally, analysis 
of SNAP QC data on the distribution of participants aged 50-54 
indicates that the share of SNAP participants who live in an area 
with a waiver is about 10 percentage points lower, compared to those 
aged 18-49 years. Thus, we assume waiver coverage

[[Page 34362]]

among those aged 50-54 years was 10 percentage points lower than 
those aged 18-49 years who are subject to the ABAWD work 
requirement. The Department assumed that FY 2023 would have ``high'' 
waiver coverage and would decline each year to reach ``low'' waiver 
coverage in FY 2026.
---------------------------------------------------------------------------

    \44\ All FNS-approved ABAWD Waivers are publicly-available at 
https://www.fns.usda.gov/snap/ABAWD/waivers.
---------------------------------------------------------------------------

State-Reported Data on Discretionary Exemption Usage

    To assess the effects of the FRA's provisions limiting States 
agencies' discretionary exemption allotments to 8 percent of covered 
individuals and preventing carryover of unused exemptions beyond one 
fiscal year, the Department examined State agency-reported data on 
discretionary exemption usage. States are required to provide this 
data to the Department on an annual basis. The Department examined 
data from FY 2016-FY 2019 to understand how many exemptions States 
typically use. Those data indicated that State agencies typically 
use less than an 8 percent allotment of discretionary exemptions. 
The four-year period FY 2016-FY 2019 was used to represent a multi-
year period during which the time limit was not lifted nationally.

Estimating the Value of State Agency, Federal, and Participant Burden

    Cost estimates in this RIA account for increased burden for 
State agencies, the Federal Government, and SNAP participants. 
Hourly labor rates used to monetize burden hours in this analysis 
align with those presented in the proposed rule's burden table:
     State agency program staff: FY 2023 fully-loaded labor 
rate is $31.48. This is based on Bureau of Labor Statistics (BLS) 
May 2022 estimates of the median hourly wage rate for occupation 
code 21-1090, Miscellaneous Community and Social Service Specialists 
($23.67) multiplied by 1.33 to represent fully-loaded wages.
     State agency program manager: FY 2023 fully-loaded 
labor rate is $51.18. This is based on BLS May 2022 estimates of the 
median hourly wage rate for occupation code 11-9151, Social and 
Community Service Managers ($38.48) multiplied by 1.33 to represent 
fully-loaded wages.
     State agency computer developers: FY 2023 fully-loaded 
labor rate is $52.69. This is based on BLS May 2022 estimates of the 
median hourly wage rate for occupation code 15-0000, Computer and 
Mathematical Operations ($39.62) multiplied by 1.33 to represent 
fully-loaded wages.
     Federal program analyst: FY 2023 fully-loaded labor 
rate is $71.38. This is based on OPM 2023 salary data for the 
Washington-Baltimore-Arlington, DC-MD-WV-PA locality pay region for 
a GS-13 Step 1 employee ($53.67) multiplied by 1.33 to represent 
fully-loaded wages.
     Federal supervisory analyst: FY 2023 fully-loaded labor 
rate is $84.36. This is based on OPM 2023 salary data for the 
Washington-Baltimore-Arlington, DC-MD-WV-PA locality pay region for 
a GS-14 Step 1 employee ($63.43) multiplied by 1.33 to represent 
fully-loaded wages.
     Federal division director: FY 2023 fully-loaded labor 
rate is $99.22. This is based on OPM 2023 salary data for the 
Washington-Baltimore-Arlington, DC-MD-WV-PA locality pay region for 
a GS-15 Step 1 employee ($74.60) multiplied by 1.33 to represent 
fully-loaded wages.
     SNAP participants: FY 2023 labor rate is $22.02. This 
is based on the Current Population Survey (CPS) FY 2023 median 
weekly wage for full-time and salary workers, ages 16 and up 
($1,101/week, divided by 40 hours to produce an hourly rate of 
$27.525). Because burden on SNAP participants reflects activities, 
like completing SNAP forms, that occur outside of an employment 
setting, the hourly rate derived from the weekly wage is discounted 
by 20 percent to remove the value of taxes and other work-related 
costs, resulting in $22.02.
    The labor rates presented above are inflated for estimates of 
burden costs in future years using CPI-W projections from the Office 
of Management and Budget's (OMB) FY 2025 President's Budget Economic 
Assumptions. All administrative expense estimates presented in this 
RIA are based on labor rates that have been inflated based on CPI-W 
projections.

IV. Section-by-Section Analysis

    The increases and decreases in SNAP benefit transfers, 
administrative costs, and burden hours associated with each 
provision of the proposed rule are discussed separately in this 
section of the RIA. Throughout the section-by-section analysis, FY 
2026 is used as a reference year to provide an indication of the 
proposed rule's effect after all provisions have been phased-in.

A. Requirement To Add Purpose Language to the Food and Nutrition 
Act of 2008

    Discussion: This provision of the FRA requires the Department to 
add the following program purpose to The Act: ``That program 
includes as a purpose to assist low-income adults in obtaining 
employment and increasing their earnings. Such employment and 
earnings, along with program benefits, will permit low-income 
households to obtain a more nutritious diet through normal channels 
of trade by increasing food purchasing power for all eligible 
households who apply for participation.'' The Department proposes 
adding this language as an addition to 7 CFR 271.1(a), where the 
general purpose and scope of SNAP are defined.
    Effect on SNAP Participants: As this provision is 
administrative, the Department expects it will not impact program 
participants in a quantifiable way.
    Effect on State Agencies: The Department expects no State agency 
burden to be incurred as a direct result of this provision.
    Effect on Federal Spending: The Department expects no changes in 
federal administrative costs or transfers to be incurred as a direct 
result of this provision.

B. Requirement To Update Exceptions From the ABAWD Time Limit

    There are four components that comprise this provision, which 
expands the category of individuals subject to the ABAWD work 
requirement and time limit by adjusting the upper age limit from 49 
to 54, on a phased-in timeline between September 2023 to October 
2024, as well as creates three new categories of exceptions from the 
ABAWD time limit. All components of this provision will sunset on 
October 1, 2030, pending any future legislative changes.

Changes to Age-Based Exceptions

    Discussion: This provision gradually raises the upper age limit 
defining who is subject to SNAP's ABAWD work requirement from age 49 
to age 54, thereby expanding the group of SNAP participants who are 
subject to the time limit. Specifically, the upper age limit changed 
from age 49 to age 50 on September 1, 2023; from age 50 to age 52 on 
October 1, 2023; and will change from age 52 to age 54 on October 1, 
2024. Upon full phase-in of these adjustments, the ABAWD time limit 
will apply to adults aged 18 through 54 until the sunset of this 
provision on October 1, 2030. This provision will sunset immediately 
on October 1, 2030, and is not subject to a phase-out period in FY 
2031.
    Only individuals aged 50 to 54 who do not qualify for an 
exception from the ABAWD time limit (such as a physical or mental 
condition that limits ability to work, need to care for a dependent 
household member, or meeting an exemption from the general SNAP work 
requirement) would be newly considered subject to the ABAWD time 
limit.
    Effect on SNAP Participants: The Department expects the changes 
to the age-based exception to decrease program participation among 
SNAP participants ages 50 to 54 who are newly subject to the ABAWD 
work requirement and time limit from implementation in FY 2023 until 
sunset of the provision. If these individuals are not able to meet 
the ABAWD work requirement, the time limit will take effect and they 
will lose program eligibility after 3 months of SNAP participation 
per 36-month period unless that individual qualifies for an 
exception, receives a discretionary exemption, or lives in an area 
with a waiver of the time limit.
    In FY 2026, when this provision is fully implemented, the 
Department (using SNAP QC data) estimates 1.8 percent of all SNAP 
participants, approximately 753,000 individuals (450,000 individuals 
ages 50 to 52, and 302,000 individuals ages 53 to 54) may be 
impacted by the age adjustments and be newly subject to the ABAWD 
work requirement and time limit because they meet the new definition 
of an ABAWD and are not working 20 or more hours per week.
    The Department estimates that a small share (about 2.3 percent) 
of these individuals will be able to gain or increase their 
employment to at least 20 hours per month to retain SNAP 
eligibility. The Department based this estimate on the share of 
these individuals that are estimated to work at least 15 hours but 
less than 20 hours per week. As a result of the increased work 
hours, SNAP benefits for these individuals will decrease by an 
average of $121 per month in FY 2026. This small share of new 
individuals (about 17,000 people in FY 2026) subject to the ABAWD 
time limit will not lose SNAP eligibility because of the time limit.
    The Department estimates that 33 percent of the remaining 
individuals will qualify for an exception from the ABAWD work 
requirement and time limit for reasons other

[[Page 34363]]

than the three new exceptions temporarily established by the FRA 
(e.g., a physical or mental condition that limits ability to work) 
because they are exempt from the SNAP general work requirement for a 
reason other than disability.
    Finally, the Department estimates that approximately 30 percent 
of the remaining individuals ages 50 to 54 will live in areas 
covered by a waiver of the time limit and, therefore, will not be 
subject to the time limit.
    After these adjustments discussed above, in FY 2026 the 
Department estimates 345,000 individuals will lose SNAP eligibility 
and an average of $272 per month in SNAP benefits due to the change 
in the upper age limit. Individuals who lose eligibility due to the 
time limit may rejoin SNAP after the expiration of the 36-month 
period or sooner by meeting the ABAWD work requirement, though a 
2021 USDA study on the ABAWD time limit suggests employment outcomes 
are unlikely to improve among those who lose eligibility due to the 
time limit. The primary results in the study found that the ABAWD 
time limit has a small, statistically significant negative impact on 
employment outcomes.\45\ A sensitivity analysis among a smaller 
group of time-limited participants in this study showed no 
statistically significant impact of the ABAWD time limit on 
employment in two States and a small positive impact on employment 
in a third State. Therefore, the Department estimates that very few 
individuals who lose SNAP eligibility will be able to increase their 
work hours to regain SNAP eligibility within the 36-month period, 
particularly in light of the barriers adults over the age of 50 can 
face in re-entering the job market such as employer age 
discrimination, increased likelihood on health challenges, and lack 
of training opportunities, among other reasons.\46\
---------------------------------------------------------------------------

    \45\ Wheaton, Laura et al. (2021) The Impact of SNAP Able-Bodied 
Adults Without Dependents (ABAWD) Time Limit Reinstatement in Nine 
States. Prepared by the Urban Institute for the USDA Food and 
Nutrition Service, 2021. Available at: https://www.fns.usda.gov/snap/impact-snap-able-bodied-adults-without-dependents-abawd-time-limit-reinstatement-nine.
    \46\ Thomassen K, Sundstrup E, Skovlund SV, Andersen LL. 
Barriers and Willingness to Accept Re-Employment among Unemployed 
Senior Workers: The SeniorWorkingLife Study. Int J Environ Res 
Public Health. 2020 Jul 25;17(15):5358. doi: 10.3390/ijerph17155358. 
PMID: 32722360; PMCID: PMC7439115.
---------------------------------------------------------------------------

    At full implementation in FY 2026, the Department estimates that 
benefit losses among 50-to-54-year-olds newly subject to the ABAWD 
time limit will represent a 0.94 percent reduction in total annual 
SNAP benefit spending (transfers), or about $1.1 billion. The 
Department estimates federal transfers to decrease over the nine-
year analysis period of FY 2023 to FY 2031 by a total of $6.5 
billion because of this provision.
    In addition to the direct impacts discussed above, there are 
additional secondary impacts which are difficult to quantify. The 
individuals who will lose eligibility for SNAP benefits are likely 
to experience hardship through increased food insecurity or poverty. 
This, in turn, could have societal impacts through increased 
healthcare costs related to increases in food insecurity and poverty 
or impacts on other nutrition assistance, including food banks. The 
Department notes that while there are studies that describe the 
relationships between SNAP, food security, poverty, and health care 
costs, these studies do not permit estimation of potential impacts 
on transfers specific to the dispersed ABAWD population that might 
be affected by this proposed rule.
BILLING CODE 3410-30-P

[[Page 34364]]

[GRAPHIC] [TIFF OMITTED] TP30AP24.007


[[Page 34365]]


BILLING CODE 3410-30-C

New Exceptions

    In addition to expanding the group of individuals subject to the 
ABAWD work requirement and time limit, the FRA provides new 
exceptions from the time limit for individuals experiencing 
homelessness, who are veterans, or individuals through age 24 who 
were participating in foster care on their 18th birthday (or higher 
age if the State offers extended foster care to a higher age). Below 
each of these new exceptions is analyzed individually. The impact of 
the new exceptions on federal transfers and on SNAP participants 
will be itemized within discussion of each exception, while the 
aggregate impacts on transfers, federal burden, State agency burden, 
and SNAP participant burden will be summarized after the discussion 
of each new exception.

Individuals Experiencing Homelessness

    Discussion: Prior to the FRA, individuals who were experiencing 
homelessness and not meeting the ABAWD work requirement could only 
continue to participate in SNAP after accruing three countable 
months if the State agency chose to use the State's allotment of 
discretionary exemptions to provide the individual with an exception 
from the time limit on a month-by-month basis (until the State has 
depleted its allotment of discretionary exemptions). A State agency 
may also consider an individual experiencing homeless to be ``unfit 
for work,'' and thereby exempt from the general work requirement and 
thus the ABAWD time limit.
    The FRA provides exceptions from the time limit for individuals 
experiencing homeless. To consistently implement this provision 
nationwide, the Department is proposing to standardize the 
definition of a ``homeless individual'' at 7 CFR 271.2 as follows:
    ``Homeless individual means
    (1) An individual who lacks a fixed and regular nighttime 
residence, including, but not limited to, an individual who will 
imminently lose their primary nighttime residence, provided that 
primary nighttime residence will be lost within 14 days, no 
subsequent housing has been identified and the individual lacks 
support networks or resources needed to obtain housing; or
    (2) An individual whose primary nighttime residence is:
    (i) A supervised shelter designed to provide temporary 
accommodations (such as a welfare hotel or congregate shelter);
    (ii) A halfway house or similar institution that provides 
temporary residence for individuals intended to be 
institutionalized;
    (iii) A temporary accommodation for not more than 90 days in the 
residence of another individual; or
    (iv) A place not designed for, or ordinarily used, as a regular 
sleeping accommodation for human beings (a hallway, a bus station, a 
lobby or similar places).''
    Prior to the FRA, State SNAP agencies were already required to 
screen for households experiencing homelessness to identify 
households eligible for the homeless shelter deduction. Using SNAP 
QC data, the Department estimates that approximately 3.2 percent of 
all SNAP participants experience homelessness. However, SNAP 
participants subject to the ABAWD time limit are much more likely to 
experience homelessness. In the most recent data available to the 
Department 20.6 percent of time-limited participants experience 
homelessness.\47\
---------------------------------------------------------------------------

    \47\ This estimate includes 50-to-54-year-olds newly subject to 
the ABAWD work requirement and time limit.
---------------------------------------------------------------------------

    In FY 2026 when this provision is fully implemented, the 
Department (using SNAP QC data) estimates 1.8 percent of all SNAP 
participants, approximately 766,000 individuals (615,000 individuals 
ages 18 to 49, and 151,000 individuals ages 50 to 54) experiencing 
homelessness may be affected by the new exception from the ABAWD 
work requirement and time limit because they meet the definition of 
a time-limited participant and are not working 20 or more hours per 
week.
    The Department estimates that a small share (about 1 percent) of 
these individuals will be able to gain or increase their employment 
to at least 20 hours per week to retain SNAP eligibility. Compared 
to the general population of time-limited participants in SNAP, 
fewer participants who are experiencing homelessness are meeting the 
work requirement in the QC data. Additionally, individuals 
experiencing homelessness can face substantial barriers to gaining 
or retaining employment, including poor access to transportation, 
poor access to health care, and stigma against individuals 
experiencing homelessness. Therefore, the Department believes the 
share of time-limited individuals who are experiencing homelessness 
that will be able to increase their work hours is likely smaller 
than the 2.3 percent observed amongst all time-limited participants 
in the SNAP QC data.
    The Department estimates that 32 percent of the remaining 
individuals will be excepted from the ABAWD work requirement and 
time limit for reasons other than the three new exceptions 
temporarily established by the FRA (e.g., a physical or mental 
condition that limits ability to work) because they are exempt from 
the general work requirement for a reason other than disability. 
Finally, the Department estimates that approximately 40 percent of 
the remaining individuals will live in areas covered by a waiver of 
the time limit and, therefore, would not be subject to the time 
limit in absence of this provision.
    After these adjustments discussed above, in FY 2026 the 
Department estimates 309,000 individuals experiencing homelessness 
between the ages of 18 and 54 will retain SNAP eligibility beyond 3 
months in a 36-month period (averaging to 11 months of benefits 
gained per individual per year) and continue receiving an average of 
$305 per month, per person, in SNAP benefits because of the new 
exception for individuals experiencing homelessness. At full 
implementation in FY 2026, this represents a 0.92 percent increase 
in total annual SNAP benefit spending (transfers), or about $1.0 
billion. The Department estimates federal transfers to increase over 
the nine-year period of FY 2023 to FY 2031 by a total of $7.3 
billion because of this new exception for individuals experiencing 
homelessness.
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BILLING CODE 3410-30-C

Veterans

    Discussion: The FRA additionally provides a new exception from 
the ABAWD time limit for time-limited participants who are veterans. 
No previous unique work requirement exceptions have been applied to 
veterans in SNAP. To implement this change, the Department 
identified the need to standardize a definition of who is considered 
a veteran. The Department proposes to define veteran at 7 CFR 
273.34(c)(8) as an individual who, regardless of the conditions of 
their discharge or release from, served in the United States Armed 
Forces (such as the Army, Marine Corps, Navy, Air Force, Space 
Force, Coast Guard, and National Guard), including an individual who 
served in a reserve component of the Armed Forces, or served as a 
commissioned officer of the Public Health Service, Environmental 
Scientific Services Administration, or the National Oceanic and 
Atmospheric Administration.
    Effect on SNAP Participants: The Department does not collect 
information on SNAP applicants' and participants' military service 
history, so it is unable to precisely estimate how many SNAP 
participants may benefit from the veteran exception. Based on data 
from the 2022 ACS, the Department estimates 2.5 percent of SNAP 
participants are veterans, but a much smaller share (0.22 percent) 
may be veterans who are subject to the ABAWD work requirement and 
time limit.
    In FY 2026, when the FRA's provisions are fully implemented, the 
Department estimates approximately 92,000 individuals (63,000 
individuals between the ages of 18 and 49 and 29,000 individuals 
ages 50 to 54) are veterans that may be affected by the new 
exception to the ABAWD work requirement and time limit because they 
meet the definition of a time-limited participant and are likely not 
working 20 or more hours per week.
    The Department estimates that 32 percent of these individuals 
will qualify for an exception from the ABAWD work requirement for 
reasons other than the three new exceptions temporarily established 
by the FRA (e.g., a physical or mental condition that limits ability 
to work) because they are exempt from the SNAP general work 
requirement for a reason other than disability.
    Finally, the Department estimates that approximately 40 percent 
of remaining individuals ages 18 to 49 and 30 percent of the 
remaining individuals ages 50 to 54 will live in areas covered by a 
geographic waiver of the time limit and, therefore, will not be 
subject to the time limit.
    After these adjustments discussed above, in FY 2026 the 
Department estimates 39,000 individuals who are veterans between the 
ages of 18 and 54 will retain SNAP eligibility beyond 3 months in a 
36-month period (averaging to 11 months of benefits gained per 
individual per year) and continue receiving an average of $264 per 
month, per person, in SNAP benefits because of the new exception 
from the time limit for veterans. At full implementation in FY 2026, 
this represents a 0.10 percent increase in total annual SNAP benefit 
spending (transfers), or about $115.0 million. The Department 
estimates federal transfers to increase over the nine-year period of 
FY 2023 to FY 2031 by a total of $787.6 million as a result of this 
new exception.
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BILLING CODE 3410-30-C

Individuals Who Were in Foster Care

    Discussion: The third new exception from the time limit 
prescribed by the FRA is for SNAP participants aged 24 and under who 
were in foster care on their 18th birthday or such higher age as the 
State has elected under Sec. 475(8)(B)(iii) of the Social Security 
Act. The Department notes that this definition does not require that 
an individual was in foster care in the State in which they are 
applying for or receiving SNAP benefits.
    In creating the implementation guidance, the Department 
clarified that ``foster care under the responsibility of a State'' 
includes foster care programs run by Districts, Territories, or 
Indian Tribal Organizations. The Department also clarified that the 
exception applies to individuals who are in foster care when they 
reach 18 years of age even if they elect to stay in foster care up 
to the State's maximum age, as well as individuals aged 18 to 24 who 
were in foster care at the time they turned 18 years of age, even if 
the individual exits extended foster care before the maximum age.
    Effect on SNAP Participants: The Department does not collect 
data on SNAP applicants' and participants' history in foster care, 
so it is unable to precisely estimate how many individuals will 
benefit from the new exception for former foster youth. Based on 
information from the Adoption and Foster Care Analysis and Reporting 
System (AFCARS) \48\ about how many youth age out of foster care 
each year, the Department estimates that there are approximately 
99,000 individuals between the ages of 18 and 24 who were in foster 
care at their 18th birthday but have since emancipated. Of those 
99,000 individuals, the Department estimates that about 35,000 may 
be SNAP participants (0.08 percent of all SNAP participants) who are 
subject to the ABAWD work requirement and are not otherwise 
qualified for an exception. The remaining 64,000 individuals in this 
group are assumed to be not eligible for SNAP, already meeting the 
ABAWD work requirement, or not subject to the ABAWD work requirement 
and time limit (for reasons that can include being a student, having 
a child in their household, or having a disability).
---------------------------------------------------------------------------

    \48\ Per ACF guidance to States, States must include in AFCARS 
all children in foster care under the responsibility for placement 
or care of the State title IV-B/IV-E agency, which includes 
Unaccompanied Refugee Minors. More detail can be found at: https://www.acf.hhs.gov/orr/policy-guidance/clarification-unaccompanied-refugee-minor-urm-eligibility-chafee-independent.
---------------------------------------------------------------------------

    In FY 2026, among these 35,000 individuals, the Department 
estimates that approximately 40 percent will live in areas that are 
covered by a geographic waiver of the time limit, and therefore will 
not be subject to the time limit. Therefore, the Department 
estimates about 21,000 individuals who are former foster youth will 
retain SNAP eligibility beyond 3 months in a 36-month period 
(averaging to 11 months of benefits gained per individual per year) 
and continue receiving an average of $262 per month in FY 2026 
because of this new exception. In FY 2026, this represents a 0.05 
percent increase in total annual SNAP benefit spending (transfers), 
or about $60.0 million. The Department estimates federal transfers 
to increase over the nine-year period of FY 2023 to FY 2031 by a 
total of $425.4 million as a result of this new exception.
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BILLING CODE 3410-30-C

Combined Impacts for All Changes to Exceptions--Federal Transfers

    As a result of this proposed rule, the estimated net impact of 
the change in the age-based exceptions and the three new exceptions 
is an average net increase in SNAP participation of about 55,000 
individuals per year when fully implemented in FY 2026. In FY 2026, 
this includes 345,000 participants losing eligibility, 369,000 
participants retaining eligibility, and about 30,000 new 
participants.\49\ The Department estimates that a small number of 
new participants (ages 18-49) will newly begin receiving SNAP 
benefits due to the new exceptions allowing individuals who are 
experiencing homelessness, are veterans, or were formerly in the 
foster care system to participate in SNAP who otherwise may have 
thought they would be ineligible due to the ABAWD work requirement 
and time limit. The Department estimates federal transfers to 
increase over the nine-year period of FY 2023 to FY 2031 by a total 
of $2.8 billion as a result of the change in the age-based 
exceptions and the new exceptions in the FRA. On an annual basis, 
federal transfers are estimated to increase by an average of $306.5 
million.
---------------------------------------------------------------------------

    \49\ This estimate of about 30,000 new participants assumes an 
increase of roughly 1 percent in the baseline number of time-limited 
adults ages 18 to 49. This is the Department's best estimate in the 
absence of better data.
---------------------------------------------------------------------------

    In addition to the direct impacts discussed above, there are 
additional secondary impacts which are difficult to quantify. The 
individuals who will retain eligibility for SNAP benefits are less 
likely to experience increased food insecurity or poverty than if 
they had lost access to SNAP benefits in absence of the new 
exceptions provided by the FRA. This in turn could have societal 
impacts through decreased healthcare costs related to food 
insecurity and poverty or impacts on other nutrition assistance, 
including food banks. The Department notes that while there are 
studies that describe the relationships between SNAP, food security, 
poverty, and health care costs, these studies do not permit 
estimation of potential impacts on transfers specific to the 
dispersed ABAWD population that might be affected by this proposed 
rule.
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BILLING CODE 3410-30-C

Combined Impacts for All Changes to Exceptions--Household Burden Costs

    The Department expects there to be an increased time burden for 
50-to-54-year-old SNAP participants who are newly considered to be 
subject to the ABAWD time limit. These individuals will be required 
to report work hours and review and respond to notices informing 
them of the ABAWD work requirement and time limit. Based on 
estimates provided in the burden table prepared for the proposed 
rule's information collection request, an estimated 366,751 
individuals will experience an annual 15.5-minute burden related to 
these activities for total time of 94,744 hours annually and an 
annual cost of $2.3 million in FY 2026. In addition, 317,000 
individuals within this group will also need to review and respond 
to Notices of Adverse Action (NOAAs) when they lose SNAP eligibility 
due to not meeting the work requirement, estimated to be an 
additional 4-minute burden per person for a time of 21,133 hours 
annually and a total annual cost of $502,616 in FY 2026.
    Upon sunset of this provision on October 1, 2030, the upper 
limit of ages subject to the ABAWD work requirement will reverse to 
age 49 and the three new exceptions will be removed, pending any 
future legislative updates. Any 50-to-54-year-old participants who 
were subject to the time limit will stop accruing any countable 
months immediately at October 1, 2030. The Department expects 50-to-
54-year-old participants who lost eligibility due to the time limit 
to return to the program gradually beginning in FY 2031.
    However, the Department is unable to estimate whether some 
eligible individuals will not return to the program due to being 
unaware of changes in the work requirement rules, stigma, or any 
other reason. As individuals who had not been subject to the time 
limit during the duration of this rule due to the three new 
exceptions within the rule become subject to the time limit at their 
next recertification or screening during FY 2031, the Department 
estimates a one-time burden on 490,271 participants of 15.5 minutes 
related to work reporting administrative activities for a total of 
$3.4 million in FY 2031. While a portion of this group is expected 
to meet the work requirement, receive an exemption, or meet a 
different exception from the time limit, approximately 367,703 
individuals are expected to have an additional 4-minute burden to 
review and respond to NOAAs, at a one-time total approximate cost of 
$653,188 in FY 2031.

Combined Impacts for All Changes to Exceptions--State Agency 
Administrative Costs

    Implementation: State agencies began incurring administrative 
costs to implement the FRA's changes to exceptions from the ABAWD 
time limit in FY 2023 through various administrative activities, 
such as updating State eligibility systems; preparing for and 
executing worker training; updating relevant applications, notices, 
and forms; updating State SNAP regulations; and spending additional 
time with program participants to discuss program changes in 
relation to the individual's case.
    The State administrative burden for initial implementation 
activities for all provisions of the proposed rule is estimated to 
be approximately 473,857 hours, totaling $10.3 million for start-up 
activities in FYs 2023 and 2024 for 53 State agencies, after 50 
percent federal cost reimbursement. The Department is unable to 
disaggregate the portion of that cost that applies specifically to 
each provision of the proposed rule.
    Ongoing: On an ongoing basis, State agencies will need to 
discuss the ABAWD work requirement, verify hours worked, and provide 
appropriate noticing to individuals who are newly subject to the 
ABAWD work requirement and time limit (estimated at 366,751 
participants). This is estimated to take 15.5 minutes per individual 
and cost an estimated $1.6 million in FY 2026, after 50 percent 
federal cost reimbursement. The State agency will incur an 
additional 4-minute burden for each of the estimated 317,000 
participants who will need to be issued Notices of Adverse Action 
(NOAAs) due to not meeting the work requirement for a total annual 
cost of $359,285 in FY 2026, after 50 percent federal cost 
reimbursement.
    Sunsetting: For the sunsetting of this provision on October 1, 
2030, the Department estimates that State agencies will again need 
to complete eligibility system updates; train eligibility workers; 
update relevant applications, notices, and forms; update State SNAP 
regulations; and spend time with program participants who will be 
impacted by this change. The sunsetting administrative costs are 
estimated to be a total one-time burden of 625,024 hours, equating 
to about $15.0 million for 53 State agencies in FYs 2030 and 2031 
after 50 percent federal cost reimbursement.

Combined Impacts for All Changes to Exceptions--Federal Administrative 
Costs

    Implementation: In addition to the federal transfer effects 
previously discussed, the Department expects it will take the 
Federal Government approximately 90 hours to make all administrative 
updates pertaining to implementation of this rule, resulting in an 
estimated one-time total expense of $6,760 in FY 2024. However, the 
Department is unable to disaggregate the portion of those 90 hours 
that apply specifically to each provision of the proposed rule. 
Additionally, the federal share of State agencies' administrative 
expenses to implement all provisions of the proposed rule is 
estimated to be a total one-time cost of $10.3 million for start-up 
activities in FYs 2023 and 2024. Similarly, the Department is unable 
to disaggregate the portion of that cost that applies specifically 
to each provision of the proposed rule.
    Ongoing: To provide administrative support throughout the 
duration of the FRA's changes to exceptions from the ABAWD time 
limit, the Department estimates ongoing administrative costs to the 
Federal Government to be on average $32.2 million annually during 
years of full implementation (FY 2026-FY 2030) for the federal share 
of State agencies' ongoing administrative expenses.
    Sunsetting: When the FRA exception provisions sunset on October 
1, 2030, the Department estimates the federal administrative burden 
in FY 2030 to be a one-time cost of $5,813, and a one-time cost of 
$15.0 million in FYs 2030 and 2031 for the Federal share of State 
agencies' administrative expenses.

C. Requirement To Adjust the Number of Discretionary Exemptions 
Available to State Agencies Each Year

    Discussion: The FRA reduces the allotment of discretionary 
exemptions State agencies will accrue in each fiscal year. Prior to 
the FRA, each fiscal year each State agency accrued an allotment of 
one-month exemptions equal to 12 percent of its at-risk time-limited 
participants; this FRA provision lowers that rate to 8 percent, 
beginning with the allotment State agencies have available for use 
in FY 2024. The provision also restricts each State's ability to 
carryover unused discretionary exemptions between fiscal years from 
all unused discretionary exemptions to only those allotted during 
the prior fiscal year. Starting in FY 2026, State agencies will only 
carryover unused discretionary exemptions earned for the previous 
fiscal year, not including historical balances.
    Effect on SNAP Participants: It is difficult to predict the 
precise impacts of these two changes within each State, as well as 
across States. If a State agency was consistently using a high 
proportion of discretionary exemptions under the prior allotment of 
12 percent, a small number of SNAP participants in that State may no 
longer receive a discretionary exemption and therefore lose SNAP 
eligibility as a result of the ABAWD time limit. If a State agency 
was not using a high proportion of their discretionary exemptions 
prior to the FRA change, this change may have no effect on SNAP 
participants in that State. The most recent data available to 
Department indicate that State agencies typically use less than an 8 
percent allotment of discretionary exemptions. Between FY 2016 and 
FY 2019, only five instances were identified in which a State did 
not exceed their annual allotment, but used more exemptions than 
they would have earned for the fiscal year, assuming an allotment 
based on 8 percent of covered individuals.\50\ As a result, this 
analysis scores the provision to lower allotments to 8 percent of 
covered individuals as having, at most, a nominal effect on SNAP 
benefit spending (transfers).
---------------------------------------------------------------------------

    \50\ Based on State agency-reported data on discretionary 
exemption usage. FY 2016-FY 2019 is used as the most recent period 
of data available as these are the most recent years in which State 
agencies used discretionary exemptions and during which the time 
limit was not waived nationwide by FFCRA.
---------------------------------------------------------------------------

    However, those State agencies that have exceeded an 8 percent 
allotment have tended to use many more exemptions than they had 
accrued for the relevant fiscal year. In other words, those States 
drew upon their banks of carried over exemptions. In the FY 2016-FY 
2019 period, there were 33 instances of State agencies using carried 
over exemptions. Over those 33 instances, a total of 832,048 
``banked'' exemptions were used. Given that one exemption permits 
one time-limited participant to participate in SNAP for one 
additional month, this equates to

[[Page 34374]]

approximately 69,337 individuals gaining a full year of SNAP 
participation (832,048 divided by 12 months) over the four-year 
period, or 17,334 individuals annually, on average. The Department 
does not have information on why States opted to use carried over 
exemptions in each of these cases. However, State agencies are known 
to use discretionary exemptions to exempt individuals from the time 
limit in areas that have been affected by a natural disaster or to 
mitigate the effects of an area losing coverage by a waiver of the 
time limit.
    Beyond FY 2025, State agencies will no longer carryover unused 
exemptions indefinitely, which will reduce some State agencies' 
banks of available exemptions. As a result, State agencies may have 
reduced ability to use discretionary exemptions to extend time-
limited individuals' SNAP participation in similar scenarios. 
However, the Department is unable to predict how many such scenarios 
could occur in future years and how a State agency would choose to 
use discretionary exemptions, nor how many individuals subject to 
the ABAWD time limit may be affected.
    In FY 2024 and FY 2025, the Department anticipates that State 
agency application of discretionary exemptions could change as State 
agencies attempt to ``spend down'' discretionary exemptions that 
will otherwise expire. This ``use-or-lose'' scenario could 
incentivize some State agencies to use more discretionary exemptions 
in FYs 2024 and 2025, which could result in fewer individuals losing 
SNAP eligibility due to the ABAWD time limit in these two fiscal 
years. However, given that State agencies typically under-use the 
discretionary exemptions available to them, the Department does not 
expect measurable changes to SNAP participation or transfers to 
occur.
    Effect on State Agencies: The implementation of this provision 
may require some State agencies to reconsider the State's approach 
to using discretionary exemptions, which could add burden hours for 
these State agencies. We are unable to estimate how many State 
agencies may be affected, but estimate the administrative burden to 
be nominal.
    Effect on Federal Spending: The Department estimates nominal 
changes in federal transfers because of reductions in discretionary 
exemption allotments, from 12 percent to 8 percent, and restrictions 
on carryover of unused exemptions beyond one fiscal year.
    While a decrease in available discretionary exemptions would 
mean a federal transfer savings if States consistently used all 
discretionary exemptions available to them each year prior to the 
reduction, State agencies' past patterns of discretionary exemption 
usages suggest they will not fully apply all discretionary 
exemptions available to them.
    As previously discussed in the analysis of changes to 
exceptions, the Department expects it will take the Federal 
Government approximately 90 hours to make all administrative updates 
pertaining to implementation of this rule, resulting in an estimated 
one-time total expense of $6,760 in FY 2024. However, the Department 
is unable to disaggregate the portion of those 90 hours that apply 
specifically to each provision of the proposed rule.
    Additionally, as previously discussed, the federal share of 
State agencies' administrative expenses to implement all provisions 
of the proposed rule is estimated to be a total one-time cost of 
$10.3 million in FYs 2023 and 2024. Similarly, we are unable to 
disaggregate the portion of that cost that applies specifically to 
each provision of the proposed rule. This provision is not expected 
to generate any ongoing administrative costs to the Federal 
Government. Finally, there are no sunsetting administrative costs 
pertaining to this provision, as it is enacted on a permanent basis.

D. Screening

    Discussion: This provision would require State agencies to 
evaluate individuals to determine if they are subject to the time 
limit or if they qualify for an exception. This includes determining 
if an individual is exempt from the general work requirement, as 
individuals are not subject to the time limit if they meet an 
exemption from the general work requirement. The Department refers 
to this process as ``screening.'' Screening would be required at 
initial and recertification application and State agencies would be 
prohibited from assigning countable months to an individual if the 
State agency has not screened them for exceptions, including the new 
exceptions established by the FRA. If an individual subject to the 
time limit has a change in circumstances that result in them now 
meeting an exception, the State agency cannot assign a countable 
month if the information is not questionable. This is a longstanding 
expectation of State agencies that the Department proposes to 
outline at 7 CFR 271.2, 273,7(b)(3), and 273.24(k) to ensure 
countable months are not applied inappropriately.
    Effect on SNAP Participants: This provision is intended to 
ensure that SNAP participants are not incorrectly deemed ineligible 
for SNAP for not meeting the ABAWD work requirement, without first 
requiring the State agency to determine that they are not eligible 
for any exceptions. The Department does not currently have 
information available that would permit it to estimate how many 
individuals may retain SNAP eligibility because of more effective 
screening for exceptions from the time limit and exemptions from the 
SNAP work requirements. Among those who do retain eligibility as a 
result of this provision, the Department estimates each individual 
will continue to receive an average of $252 in monthly SNAP benefits 
(25.9 percent of the TFP in FY 2024).
    Aside from benefit impacts of this provision, SNAP participants 
are expected to bear an administrative burden due to increased 
screening. FNS estimates that screening for exceptions from the 
ABAWD work requirement and screening for exemptions from the general 
work requirement each require approximately 4 minutes of a 
participant's time. Some participants will only incur a 4-minute 
burden because they are only subject to the general work 
requirement. Individuals subject to the ABAWD work requirement are 
also subject to the general work requirement and therefore will 
incur 8 minutes of burden, per screening. In total, screening will 
affect approximately 19.0 million SNAP participants and equal 
approximately 1.7 million additional hours annually in FY 2026. This 
would equate to an estimated annual burden of $40.2 million across 
all individuals in FY 2026. Because this provision of the rule does 
not sunset, there are no expected burden costs of sunsetting this 
provision.
    Effect on State Agencies: State agencies are expected to bear 
the administrative cost of updating their internal screening 
policies and practices; train workers on new procedures; and carry 
out any other administrative steps necessary to implement this 
provision. As discussed previously, the State administrative burden 
for initial implementation activities for all provisions of the 
proposed rule is estimated to be approximately 473,857 hours, 
totaling $10.3 million for start-up activities (including system 
changes) in FYs 2023 and 2024 for 53 State agencies, after 50 
percent federal cost reimbursement. The Department is unable to 
disaggregate the portion of that administrative cost that applies 
specifically to each provision of the proposed rule.
    Due to the additional estimated 4 or 8 minutes of time spent 
with participants during the screening process, explained above, the 
annual projected administrative burden to State agencies is 1.7 
million hours, or approximately $28.8 million annually in FY 2026 
after 50 percent federal cost reimbursement. Because this provision 
of the rule does not sunset, there are no expected administrative 
costs of sunsetting this provision.
    Effect on Federal Spending: Federal administrative burden 
associated with implementing the final rule have been discussed in 
previous sections of the RIA. The federal share of State agencies' 
administrative expenses to comply with this update is estimated to 
be approximately $28.8 million annually in FY 2026 for 53 State SNAP 
agencies. There are no sunsetting administrative costs pertaining to 
this provision, as it is enacted on a permanent basis.

[[Page 34375]]

V. Distributive Impacts

A. Differences in State-Level Impacts

    Effects of the FRA's provisions in the proposed rule vary by 
State due to differences in demographics, as well as differences in 
how States administer SNAP. For example, States that regularly 
qualify for and request waivers of the ABAWD time limit will have 
smaller portions of their participants affected by changes to the 
ABAWD work requirement. The provision to make 50-to-54-year-olds 
subject to the ABAWD work requirement and time limit will have 
slightly different effects on States' participants, depending on the 
share of their participants that falls into the newly expanded ABAWD 
age range. While 2 percent of all SNAP participants are estimated to 
fall into the expanded 50-to-54-year-old age range of time-limited 
participants, the share of each State's SNAP participants varies 
from 0.5 percent in Nebraska, to 4.8 percent in the U.S. Virgin 
Islands. See Appendix Table A for estimates for each State.
    Similarly, the distribution of individuals experiencing 
homelessness across the U.S. is not uniform. Information available 
from the U.S. Department of Housing and Urban Development (HUD) 
indicates that the homeless population in the U.S. is concentrated 
in a handful of States. The January 2023 Point-in-Time estimates 
\51\ of homeless individuals from HUD indicate that over half of all 
individuals experiencing homelessness in the U.S. (56.8 percent) 
lived in just five States: California, New York, Florida, 
Washington, and Texas. California, alone, accounted for 27.8 percent 
of all individuals experiencing homelessness.
---------------------------------------------------------------------------

    \51\ Available here: https://www.huduser.gov/portal/datasets/ahar/2023-ahar-part-1-pit-estimates-of-homelessness-in-the-us.html.
---------------------------------------------------------------------------

    The share of each State's SNAP participants who are experiencing 
homelessness, or are time-limited participants and experiencing 
homelessness, also varies. Nationally, about 3.2 percent of SNAP 
participants are experiencing homelessness, according to pre-
pandemic FY 20 SNAP QC data. More specifically, about 1.9 percent of 
SNAP participants are considered subject to the ABAWD work 
requirement and experiencing homelessness. The State with the lowest 
share of time-limited participants experiencing homelessness is 
Mississippi (0.1 percent) and the State with the highest share is 
California (5.9 percent). See Appendix Table B for estimates for 
each State.
    It should be noted that the accuracy of the estimates in this 
section can be affected by the size of a State's caseload. States 
with smaller caseloads also have smaller SNAP QC data samples, which 
can affect the reliability of State-level estimates based on the QC 
data.

B. Differences Among Subgroups

    While the ABAWD work requirement and time limit do not apply to 
individuals who are considered disabled or elderly by SNAP rules, 
the Department acknowledges that some SNAP participants who are 
elderly or disabled may nevertheless be affected by the provisions 
in this proposed rule. A small share of individuals subject to the 
ABAWD work requirement and time limit (8.3 percent) are in a SNAP 
household with an elderly or disabled person. If these individuals 
lose eligibility because of the ABAWD time limit, their household 
will experience a decrease in total SNAP benefits available to the 
household. The provisions included in this proposed rule will not 
affect SNAP households with children, as individuals subject to the 
ABAWD work requirement, by definition, do not have children in their 
SNAP household.
    Individuals affected by the provisions in the proposed rule are 
more likely to be male, when compared all adults between ages 18 and 
54 in the SNAP caseload (50 percent, compared to 35 percent). While 
participants subject to the ABAWD work requirement and time limit 
between ages 18 and 54 are equally divided between males and 
females, those who are over age 50 are more likely to be female (54 
percent) and those who experience homelessness are more likely to be 
male (61 percent). See Table 9, below, for estimates of the sex of 
SNAP participants in several subgroups affected by the proposed 
rule's provisions. The Department does not have data on the sex of 
SNAP participants who are subject to the ABAWD work requirement and 
time limit who are also veterans or former foster youth.
[GRAPHIC] [TIFF OMITTED] TP30AP24.012

    The distribution of races and Hispanic ethnicity among SNAP 
participants affected by the proposed rule is generally similar to 
the distribution among all SNAP participants ages 18 to 54, with the 
exception of homeless time-limited participants. SNAP participants 
subject to the ABAWD work requirement ages 18 to 54 have roughly the 
same likelihood of being white or black (42 percent and 27 percent, 
respectively) as all SNAP participants ages 18 to 54 (42 percent and 
26 percent). However, SNAP participants who are subject to the ABAWD 
work requirement and experiencing homeless are less likely to be 
white (36 percent) than SNAP participants ages 18 to 54 (42 
percent), and more likely to be black or Hispanic or Latino of any 
race (30 percent and 17 percent, respectively) compared to all SNAP 
participants ages 18 to 54 (26 percent and 12 percent). It is 
important to note that the Department does not have data on the race 
or ethnicity of 14 percent of SNAP participants ages 18 to 54, which 
could affect these estimates. See Table 10, below, for estimates of 
the race and ethnicity of SNAP participants in several subgroups 
affected by the proposed rule's provisions. The Department does not 
have data on the race or ethnicity of SNAP participants who are 
subject to the ABAWD work requirement who are also veterans or 
former foster youth.

[[Page 34376]]

[GRAPHIC] [TIFF OMITTED] TP30AP24.013

VI. Uncertainties

A. Effectiveness of Screening for New Exceptions

    In this analysis, the Department assumes that all individuals 
subject to the ABAWD work requirement are correctly screened for 
qualifying exceptions. For example, we assume that all individuals 
who are experiencing homelessness and subject to the ABAWD work 
requirement are correctly excepted from the time limit. Human error 
is likely to result in some share of individuals not receiving an 
exception for which they qualify, and it is also possible that some 
participants will not disclose information that could lead to an 
exception (for example, a participant may not want to disclose their 
experience with the foster care system). As a result, the count of 
SNAP participants who lose eligibility or retain eligibility due to 
the proposed rule could be higher or lower in reality. However, 
given that the Department estimates that the share of individuals 
losing eligibility is very similar to the share receiving one of the 
three new exceptions, we do not anticipate that the overall net 
transfer impact of the rule would change significantly.

B. ABAWD Waiver Coverage in Future Years

    The number of SNAP participants who are subject to the ABAWD 
time limit at any given time is affected by the extent of geographic 
waivers of the ABAWD time limit. In this RIA, we assume the national 
unemployment rate will remain low through FY 2031.
    As a result, we also assume that fewer SNAP participants (about 
40 percent) will live in an area covered by a waiver of the time 
limit than is true during economic downturns, like the Great 
Recession or the COVID-19 public health emergency. If a higher share 
of individuals live in an area where the time limit is waived, then 
both transfer increases and decreases will be reduced. Fewer 50-to-
54-year-olds would lose eligibility due to the time limit, reducing 
transfer savings. Conversely, if individuals who receive an 
exception from the time limit due to being a veteran, homeless, or a 
qualifying former foster youth live in an area with a waiver of the 
time limit, there would be no transfer increase associated with 
their retaining eligibility because of an exception.
    Alternatively, if a lower share of individuals live in an area 
where the time limit is waived, then both transfer increases and 
decreases would rise. However, given that the Department estimates 
that the share of individuals losing eligibility is very similar to 
the share of individuals retaining eligibility, we do not anticipate 
that the overall net transfer impact of the rule would change 
significantly.

C. Number of Individuals Who Will Be Eligible for New Exceptions 
for Veterans and Former Foster Youth

    Unlike homelessness, the Department does not gather data on 
whether SNAP applicants or participants are veterans or former 
foster youth. Therefore, we are unable to precisely estimate how 
many individuals who may be subject to the ABAWD work requirement 
may benefit from these two new exceptions. This RIA contains the 
Department's best estimates of how many individuals may be affected. 
If the number of individuals who receive one of these two new 
exceptions is higher than anticipated, there would be a slight 
increase in transfers. If the number is lower than anticipated, 
there would be a slight decrease in transfers. Given that the 
Department believes time-limited individuals who are veterans or 
former foster youth up to age 24 make up a small portion of SNAP

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participants (cumulatively, approximately 0.22 percent of 
participants), we do not expect this uncertainty to result in 
significant changes to the net transfer impact associated with the 
proposed rule.

VII. Sensitivity Analysis

    Table 11, below, illustrates how the RIA's estimates might 
change if different assumptions regarding the uncertainties 
discussed above were used. Sensitivity analysis estimates were 
produced using the same general methodology as the primary estimates 
in the RIA. Alternative assumptions used for the sensitivity 
analysis include:
    A. Assume 10 percent of estimated groups receiving a new 
exception are not appropriately identified during screening and do 
not receive the exception.
    B. Assume employment outcomes are worse than anticipated and 
waiver coverage settles at 10 percentage points higher than 
projected.
    C. Assume employment outcomes are better than anticipated and 
waiver coverage settles at 10 percentage points lower than 
projected.
    Table 11 breaks down each scenario's impact on overall federal 
transfers during the first year of full implementation (FY 2026), as 
well as over the nine-year analysis period of this RIA, FY 2023 
through FY 2031.
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    The proposed rule would result in a 0.27 percent increase in 
total SNAP benefit spending over the nine-year period of analysis, 
or $268.1 million in FY 2026 and $2.8 billion over FY 2023-FY 2031. 
If screening for the three new exceptions in this rule were to be 
conducted with only 90 percent efficacy (thereby reducing the number 
of those excepted by 10 percent) as demonstrated in Scenario A, 
total SNAP benefit spending would increase to a smaller degree, by 
0.18 percent. In FY 2026, Scenario A would decrease the cost of the 
proposed rule by $132.2 million, compared to the primary estimates 
in this RIA. Over the nine-year period FY 2023-FY 2031, Scenario A 
would decrease the cost of the proposed rule by approximately $922.6 
million, compared to the primary estimates in this RIA. The smaller 
increase in transfers under Scenario A is due to fewer time-limited 
participants retaining SNAP eligibility as a result of the FRA's 
three new exceptions from the time limit.
    Analyses of Scenarios B and C indicate that a 10-percentage 
point increase or decrease to the share of individuals covered under 
waivers of the time limit would result in a corresponding $53.8 
million increase or decrease in overall SNAP spending in reference 
year FY 2026 ($529.2 million over FY 2023-FY 2031) compared to the 
primary estimates in this RIA. This represents approximately a 0.05 
percentage-point increase or decrease in transfer spending.

VIII. Alternatives

    With one exception, the policy changes analyzed in this RIA were 
prescribed by the FRA; therefore, assessment of policy alternatives 
is limited. The proposed rule would implement changes to exceptions 
form the ABAWD work requirement and time limit in a way that closely 
adheres to the FRA's statutory language. In order to provide needed 
guidance to State agencies implementing the FRA's changes to the 
ABAWD work requirement, the Department has provided definitions of 
who qualifies for the FRA's new exceptions from the time limit for 
individuals experiencing homelessness, veterans, and former foster 
youth up to age 24 in this proposed rulemaking. However, these 
definitions do not expand upon the categories included in the FRA.
    The Department has determined the clarification of definitions 
of who qualifies for the FRA's new exceptions would have limited 
effect on the welfare effects of the rule. The Department did not 
consider alternative definitions for these groups because it sought 
to align its definitions with the terms used in the FRA and with 
definitions used by federal agencies who are experts in serving 
those groups, to the extent allowable by the Food and Nutrition Act 
of 2008, as amended.
    The Department is proposing one addition to the FRA's required 
provisions to amend the regulations to clarify requirements for 
screening individuals for exceptions from the work requirements and 
time limit. This added provision would require State agencies to 
screen for exceptions at initial and recertification application and 
prohibits them from assigning countable months to an individual if 
the State agency has not screened the individual for exceptions. 
Further, it also addresses State agency responsibilities when an 
individual experiences a change in circumstances during the 
certification period that results in a change in exception status.
    The Department considered finalizing the proposed rule without 
this screening requirement. Omitting the screening requirement would 
not have a measurable effect on transfers, but would reduce State 
administrative expenses, household burden expenses, and federal 
administrative costs; the precise reduction in administrative costs 
for this provision alone cannot be disaggregated from the projected 
administrative costs.
    However, in the absence of regulations clarifying screening 
requirements, questions from State agencies arose during FRA 
implementation of how and when it may identify if an individual 
meets one of the new exceptions from the time limit. As such, the 
Department determined that standardizing national screening 
practices was necessary to improve consistency in program operations 
and provide quality customer service in line with the December 13, 
2021, Executive Order on Transforming Federal Customer Experience 
and Service Delivery to Rebuild Trust in Government. To effectively 
ensure screening practices are standard across State agencies, the 
Department is proposing to require State agencies to first screen 
for exemptions from the general work requirement, as this is an 
important first step in evaluating which, if any, work requirements 
apply to an individual, since individuals are not subject to the 
time limit if they meet an exemption from the general work 
requirement. The proposed rule therefore clarifies requirements on 
both screening for the

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general work requirement, as well as to determine whether an 
individual is subject to the time limit, in order to ensure uniform 
national practices.
    The Department did not consider any other alternatives for 
inclusion in the proposed rule.
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[FR Doc. 2024-08338 Filed 4-29-24; 8:45 am]
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