Supplemental Nutrition Assistance Program (SNAP): Employment and Training Program Monitoring, Oversight and Reporting Measures, 90547-90569 [2024-26809]

Agencies

• DEPARTMENT OF AGRICULTURE
• Food and Nutrition Service

[Federal Register Volume 89, Number 222 (Monday, November 18, 2024)]
[Rules and Regulations]
[Pages 90547-90569]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-26809]



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Rules and Regulations
                                                Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 89, No. 222 / Monday, November 18, 2024 / 
Rules and Regulations

[[Page 90547]]



DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

7 CFR Parts 271 and 273

[FNS-2016-0037]
RIN 0584-AE33


Supplemental Nutrition Assistance Program (SNAP): Employment and 
Training Program Monitoring, Oversight and Reporting Measures

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

ACTION: Final rule.

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SUMMARY: The final rule implements the employment and training (E&T) 
provisions of the Agricultural Act of 2014. This section provided the 
Department additional oversight authority of State agencies' 
administration of the Supplemental Nutrition Assistance Program (SNAP) 
E&T program; required the Department to develop reporting measures and 
required State agencies to report outcome data to the Department. It 
also required the Department to monitor and assess State agencies' 
effectiveness of E&T programs and provided the Department with the 
authority to require State agencies to make improvements to their 
programs as necessary. Finally, State agencies are required to submit 
reports on the impact of certain E&T components, and in certain States, 
the E&T services provided to able-bodied adults without dependents 
(ABAWDs). The final rule will strengthen the E&T program through the 
collection of information to determine the overall effectiveness of the 
E&T program in reaching the goal of assisting participants in obtaining 
the skills necessary to obtain and retain employment.

DATES: 
    Effective date: This rule will become effective January 17, 2025.
    Implementation date: State agencies must implement all provisions 
of this rule no later than October 1, 2025.

FOR FURTHER INFORMATION CONTACT: Marcie Foster, Food and Nutrition 
Service, U.S. Department of Agriculture, 1320 Braddock Place, 5th 
Floor, Alexandria, VA 22314, [email protected]. Phone: (703) 305-
2930.

SUPPLEMENTARY INFORMATION:

List of Acronyms or Abbreviations Used in This Supplementary Discussion

    In the discussion of the provisions in this rule, the following 
acronyms or abbreviations stand in for certain words or phrases:

------------------------------------------------------------------------
                                                   Acronym, abbreviation
                     Phrase                              or symbol
------------------------------------------------------------------------
Able-bodied Adults without Dependents...........  ABAWDs
Code of Federal Regulations.....................  CFR
Employment and Training.........................  E&T
Federal Register................................  FR
Federal Fiscal Year.............................  FFY
Food and Nutrition Act of 2008, as amended......  The Act
Food and Nutrition Service......................  FNS
Secretary of the U.S. Department of Agriculture.  Secretary
Section (when referring to Federal Regulations).  Sec.
Supplemental Nutrition Assistance Program.......  SNAP
U.S. Department of Agriculture..................  The Department
U.S. Department of Labor........................  DOL
Workforce Innovation and Opportunity Act........  WIOA
------------------------------------------------------------------------

Summary Overview

    The final rule implements the E&T provisions of section 4022(a)(2) 
of the Agricultural Act of 2014 (Pub. L. 113-79). The Department 
published an interim final rule (IFR) on March 24, 2016 (81 FR 15613), 
that became effective May 23, 2016, and received 43 comments, 36 of 
which were substantive.
    After the release of the IFR the Department conducted various 
activities to provide guidance to State agencies on the implementation 
of the reporting measures. These activities included release of an 
implementation memo, two-part series of questions and answers and a 
webinar.\1\
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    \1\ Interim rule: SNAP Employment and Training Program 
Monitoring, Oversight and Reporting Measures (https://www.fns.usda.gov/snap/fr-032416).
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    The final rule incorporates changes from the interim final rule 
that includes specifying the information the Department will use in 
assessing the effectiveness of State's E&T programs; adding educational 
reporting measures for attainment of a credential or certificate and 
measurable skill gains; reporting of employment and earnings measures 
and educational measures by distinct participant characteristics, such 
as by race and/or ethnicity; and adding reporting measures for States 
operating mandatory E&T programs. The final rule also changes the due 
date of the State agency's submission of the E&T Annual Report from 
January 1 to April 15.
    The final rule establishes information sources that the Food and 
Nutrition Service (FNS) will use for assessing the effectiveness of E&T 
programs in preparing E&T participants for employment, including skill 
attainment and employment retention. The rule specifies the authority 
of FNS to require a State agency to modify its SNAP E&T State Plan to 
improve outcomes if determined through an assessment that the E&T 
outcomes are inadequate.

[[Page 90548]]

    The final rule requires State agencies to identify an outcome 
reporting measure for every component that is designed to serve at 
least 100 participants a year in annual E&T State Plan.
    The final rule also requires State agencies to submit an E&T Annual 
Report by April 15 each year that contains the following:
     Employment and earnings reporting measures that consist of 
four consecutive quarters of data from the two previous Federal Fiscal 
Years (FFY);
     Educational reporting measures that consist of data from 
the FFY ending the preceding September 30th;
     Employment and earnings reporting measures and educational 
reporting measures for each of the seven (7) participant 
characteristics;
     States that serve mandatory E&T participants will report 
on the number of SNAP participants required to participate in E&T and 
referred to E&T and the number and percentage of SNAP participants that 
were deemed ineligible for SNAP benefits due to failure to comply with 
E&T requirements;
     Number and percentage of E&T participants for the FFY 
ending the preceding September 30th by nine (9) participant 
characteristics;
     Component measures identified in the States' E&T State 
Plan for components that are designed to serve at least 100 
participants a year; and
     States that have committed to offering at-risk ABAWDs, 
defined as an able-bodied adult without dependents who are at risk of 
losing SNAP eligibility due to time-limited participation, a slot in a 
qualifying activity and received an additional allocation of funds will 
report on:
    [cir] The monthly average number of individuals in the State who 
meet the conditions of an at-risk ABAWD:
    [cir] The number of individuals the State offers a position in a 
work program or workfare program;
    [cir] The monthly average number of individuals who participate in 
such programs; and
    [cir] A description of the types of employment and training 
programs the State agency offered to at-risk ABAWDs and the 
availability of those programs throughout the State.
    The final rule specifies that State agencies may be required to 
submit the E&T Annual Report in a standardized format specified by FNS.
    The final rule will also reinstate regulatory language in 7 CFR 
273.24(a) for the definition of a workfare program for the purposes of 
meeting the ABAWD work requirement. This definition was inadvertently 
removed during a prior rulemaking.
    The Department would note that this final rule does not address any 
changes to ABAWD work requirements as a result of the Fiscal 
Responsibility Act of 2023 (Pub. L. 118-5). Those changes will be 
addressed through separate rulemaking.
    The Department discusses the changes from the interim final rule, 
as well as a summary of comments and explanation of each of the final 
regulatory changes in more detail below.

Summary of Changes From Interim Final Rule

     The interim final rule codified the authority of FNS to 
require a State agency to modify its E&T State Plan to improve 
outcomes. The final rule includes language that specifies the 
information sources that FNS will utilize in assessing the 
effectiveness of a State's E&T program.
     The interim final rule specified a January 1 due date for 
State agencies' submission of the E&T Annual Report. The final rule 
changes that due date to April 15.
     The interim final rule established a reporting measure for 
the completion of an educational, training, work experience or on-the-
job training component. The final rule removes and replaces this 
measure with two educational measures aligned with Workforce Innovation 
and Opportunity Act (Pub. L. 113-128) (WIOA) programs, for attainment 
of a credential or certificate, and measurable skill gains.
     The interim final rule required State agencies to 
disaggregate each of the reporting measures by four (4) key participant 
characteristics, e.g., of the 100 E&T participants in unsubsidized 
employment in the second quarter after completion of participation in 
E&T, 90 had the characteristic of a mandatory E&T participant. The 
final rule modifies this disaggregation by requiring the reporting of 
the employment, earnings, and educational measures for each of the key 
participant characteristics, e.g., of the 90 mandatory E&T participants 
who completed participation in E&T, 60 mandatory E&T participants are 
in unsubsidized employment in the second quarter after completion of 
participation in E&T. The final rule also introduces three (3) 
additional key participant characteristics, race and/or ethnicity and 
mandatory E&T participants deemed ineligible due to failure to comply 
with mandatory E&T.
     The interim final rule required State agencies to report 
the number and percentage of all E&T participants that participated 
during the reporting fiscal year by seven (7)participant 
characteristics, such as gender, age, etc. The final rule is modifying 
this requirement by adding race and/or ethnicity to the participant 
characteristics.

Summary of Comments and Explanation of Revisions

    FNS received thirty-six (36) relevant and non-duplicative comments. 
Thirty comments came from advocacy organizations and six comments from 
State SNAP agencies or State Workforce agencies. Generally, the 
comments were supportive of the interim final rule and believed that 
the reporting measures would greatly improve employment and training 
efforts in States. However, many of the supporters made recommendations 
for improvement or sought clarification of specific provisions.

General Comments

    Many commenters raised general or cross-cutting issues about the 
overall impact of the interim final rule. We address these issues in 
this section, followed by comments on each section of the interim final 
rule.

A. Additional Reporting Requirements

    Twenty-seven (27) commenters, while supportive of the interim final 
rule, believed that additional reporting requirements should be added 
to adequately evaluate the effectiveness of and need for change to 
States' E&T programs, specifically for States that serve mandatory E&T 
participants. Commenters urged that additional reporting measures be 
added to capture the following:
     The number and percentage of individuals required to 
participate in E&T;
     The number and percentage who were exempted from 
participation in E&T;
     The number and percentage who were sanctioned before 
participating in E&T; and
     The number and percentage of those who were sanctioned 
after beginning participation in E&T.
    Some commenters further suggested that States should be required to 
report on the sanctioned individuals' employment information and the 
number and percentage of individuals exempted from participation by 
exemption reason, noting exemptions as an important outcome in shaping 
an effective E&T program and remedying ineffective practices. In 
addition, one commenter proposed that States should report on the 
employment rates in the

[[Page 90549]]

second and fourth quarters after SNAP recipients are mandated to 
participate and suggested that States should be required to report on 
the number of mandatory E&T participants who receive a SNAP E&T 
assessment, as well as the number of those mandated to participate who 
are later found to be exempt. Three of the commenters urged that the 
final rule require States to report on the number of individuals who 
are assigned to SNAP E&T; the activity component to which they are 
assigned; and the number and percentage of individuals assigned to an 
activity who are sanctioned by the type of activity.
    The Department appreciates the comments and agrees that to assess 
the effectiveness of a State's E&T program, particularly those that 
serve mandatory E&T participants, sanction data for those that fail to 
comply with E&T requirements is an important factor. For this reason, 
the Department added additional reporting requirements for States that 
serve mandatory E&T participants in the E&T Program Activity Report 
(FNS-583) (OMB Control No. 0584-0064; expiration date: 06/30/2027) 
through the final rule, Employment and Training Opportunities in the 
Supplemental Nutrition Assistance Program, published January 5, 2021 
(``2021 final rule'', 86 FR 358). As required in the 2021 final rule, 
the Department will collect via the FNS-583 report the number of SNAP 
applicants and participants required to participate in E&T by the State 
agency and, of those applicants and participants, the number who began 
participation in an E&T program, the number who began participating in 
an E&T component, and the number of mandatory E&T participants who were 
deemed ineligible for failure to comply with E&T requirements. This 
FNS-583 data is capturing every time an individual is subject to 
mandatory participation in E&T and the resulting actions. This results 
in a duplicated count if an individual has multiple certification 
periods and is subject to mandatory participation in E&T at each of 
those certification periods in a reporting fiscal year. The FNS-583 
report also collects individual participation data and component 
participation.
    To complement and enhance the FNS-583 data, in this final rule, the 
Department is modifying the regulation at 7 CFR 273.7(c)(17)(iv) by 
adding to the E&T Annual Report for States that serve mandatory E&T 
participants the reporting of the unduplicated number of SNAP 
participants who were required to participate in E&T, the unduplicated 
number of those individuals who were referred to E&T and the 
unduplicated number and percentages of SNAP participants who were 
deemed ineligible for failure to comply with E&T requirements. The 
Department is adding these reporting elements to analyze the churn \2\ 
of SNAP E&T participants as well as the difference in the number of 
individuals required to participate and referred to E&T. This change is 
responsive to the comments received through the IFR. The Department 
believes the data from the FNS-583 report and the E&T Annual Report, as 
well as information collected through management evaluations, will 
provide FNS and State agencies information to assess the effectiveness 
of a mandatory E&T program.
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    \2\ Churn in SNAP is defined as when a household exits SNAP and 
then re-enters the program within 4 months. (Understanding the 
Rates, Causes, and Costs in Churning in the SNAP Program, November 
2014).
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    However, the Department does not believe that the other suggested 
reporting requirements, such as sanctioned individuals' employment 
information or the employment rates in the second or fourth quarters 
after being sanctioned, are necessary due to other changes being 
included for mandatory E&T programs, e.g. employment and earnings 
measures for participants deemed ineligible due to failure to comply 
with E&T, and believes that the additional burden these measures would 
place on State agencies outweighs their benefit in the overall 
determination of effectiveness of E&T programs. The Department is not 
addressing these suggested additional reporting requirements in this 
final rule.

B. Definitions

    Eleven commenters stated that the interim final rule failed to 
define ``completion of participation in E&T'', with nine of the 
commenters noting that the final rule should clarify that completion of 
participation in E&T has the same meaning as ``exit'' used in WIOA 
programs. One commenter asked if, for States that serve mandatory E&T 
participants, completion of participation in E&T correlates with 
becoming exempt from work registration for reasons others than 
employment. One commenter asked if completion of participation in E&T 
includes a person who (1) participates but leaves an assignment before 
meeting all obligations of the assignment while remaining a SNAP 
participant; (2) leaves a component after becoming ineligible for SNAP; 
or (3) finds unsubsidized employment during component participation.
    The Department appreciates the comments and agrees that for clarity 
and consistency the term ``completion of participation in E&T'' should 
be defined in the regulations. For the purposes of capturing the 
reporting measures of employment and earnings, completion of 
participation in E&T is defined as an E&T participant who has not 
received any E&T services for at least 90 days with no plans for future 
services, as discussed in the SNAP E&T Program Monitoring, Oversight 
and Reporting Measures Questions and Answer, Part II, released May 15, 
2017. This timeframe and definition align with the definition of 
``exit'' in WIOA programs as provided in Training and Employment 
Guidance Letter No.10-16, Change 3.\3\ The Department clarifies that 
for States serving mandatory E&T participants, completion of 
participation in E&T does not in any way relate to participants 
becoming exempt from work registration for reasons other than 
employment, unless an E&T participant stops participating in E&T as a 
direct result of the exemption status. Thus, completion of 
participation in E&T could include participants who leave an assignment 
before meeting all the obligations of the assignment while remaining a 
SNAP recipient, or participants who leave a component when becoming 
ineligible for SNAP or for participants who find unsubsidized 
employment during component participation, if those individuals do not 
receive any E&T services for at least 90 days. Under 7 CFR 271.2 the 
Department is codifying the definition of ``completion of participation 
in E&T'' to mean that an E&T participant has not received any E&T 
services for at least 90 days and no future services are planned.
---------------------------------------------------------------------------

    \3\ Training and Employment Guidance Letter No.10-16, Change 3 
issued September June 11, 2024 (https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2023/TEGL%2010-16%20Change%203/TEGL%2010-16%2C%20Change%203.pdf.
---------------------------------------------------------------------------

    Twenty-five commenters noted that the Department defines an ``E&T 
participant,'' for the purposes of reporting, as an individual who is 
placed in and begins an E&T component. The commenters stated that this 
definition fails to adequately capture many individuals in SNAP who are 
required to participate in E&T activities and that the regulation as 
written would not capture the outcomes of SNAP participants who are 
required to participate in E&T but are disqualified before they begin 
an E&T component.
    The Department appreciates the comments and agrees that the 
definition of an ``E&T participant,'' for the

[[Page 90550]]

purposes of reporting, discussed in the interim final rule would 
exclude those individuals who were deemed ineligible for SNAP before 
they were placed in an E&T component. The interim final rule did not 
add the definition of an E&T participant. This determination of when an 
individual could be considered an E&T participant for reporting 
purposes, as discussed in the interim final rule preamble, was based on 
an existing definition under 7 CFR 271.2 for ``placed in an employment 
and training (E&T) program'', which provided that a State agency may 
count a person as ``placed'' in an E&T program when the individual 
commences a component. As a result of the changes to the E&T program 
made through the Agricultural Improvement Act of 2018, the 2021 final 
rule made several changes to definitions under 7 CFR 271.2. The changes 
in the 2021 final rule modified definitions of an E&T program and E&T 
mandatory participant, added definitions for an E&T participant and an 
E&T voluntary participant, and removed the definition of ``placed in an 
employment and training (E&T) program.'' An ``E&T program'' is defined 
as a program operated by each State agency consisting of case 
management and one or more E&T components. The definition for an ``E&T 
participant'' is an individual who meets the definition of a mandatory 
or voluntary E&T participant. Because these definitions do not 
explicitly establish at what point an individual becomes an E&T 
participant for reporting on the E&T Program Activity Report (FNS-583) 
or E&T Annual Report, the Department is modifying the definition of an 
E&T participant under 7 CFR 271.2 to state that an ``E&T participant'' 
means an individual who meets the definition of a mandatory or 
voluntary E&T participant who is referred to E&T and begins at least 
one part of an E&T program, including orientation, assessment, case 
management services or a component. Because the purpose of the 
reporting measures is to measure the impact of the E&T services that an 
individual receives, the Department is not including mandatory E&T 
participants who do not appear for E&T services in the definition of an 
E&T participant. However, the modified definition will include 
individuals who do begin an E&T program including orientation, 
assessment, case management services, who were previously not being 
captured. Therefore, the Department is addressing in this final rule a 
modification to the definition of an ``E&T participant'' under 7 CFR 
271.2.
    One commenter suggested that the term ``former E&T participant'' be 
defined. The Department appreciates the comment and agrees that because 
the interim final rule under 7 CFR 273.7(c)(17) included the term 
former participant as one group of participants in the reporting 
measures that this term should be defined. Former participants are 
included in these measures to capture those individuals who began 
participation in an E&T program but who discontinued participation 
because they are no longer receiving SNAP benefits due to reasons such 
as failure to recertify. The Department is defining under 7 CFR 271.2 
the term ``former E&T participant'' to mean an individual who is no 
longer participating in E&T services because the individual is no 
longer receiving SNAP benefits.
    One commenter requested definitions for both the numerators and 
denominators for each of the reporting measures. The Department 
appreciates the comment and would note that the Department issued 
guidance \4\ through the SNAP E&T Outcome Reporting Interim Final Rule 
Questions and Answers Part II that was issued May 15, 2017, that 
provided such definitions and does not believe it necessary to define 
in regulations. For the measures of unsubsidized employment in the 
second or fourth after ``completion of participation in E&T'' the 
denominator includes those E&T participants who have completed 
participation, defined as not receiving services for 90 days, and the 
numerator consists of those participants who completed participation in 
E&T and have earned income in the second or fourth quarters after 
completion of participation in E&T. As these measures are generally 
aligned with measures in the WIOA program the Department wishes to 
retain some level of flexibility to accommodate changes that may be 
instituted in the WIOA programs. The Department is not including 
numerator and denominator definitions for these reporting measures in 
this final rule.
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    \4\ SNAP E&T Outcome Reporting Interim Final Rule Questions and 
Answers Part II, issued May 15, 2017 (https://fns-prod.azureedge.us/sites/default/files/snap/Clarification-SNAP-EandT-Outcome-Reporting-PartII.pdf).
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C. Delay Implementation

    Two commenters noted that the interim final rule requires States to 
start collecting complex data elements and that State agencies would 
need to evaluate the system changes, regulatory changes and new 
directives they would need to implement to comply with the new 
reporting requirements. One commenter noted that the State agency would 
need to seek State statutory changes to access employment and wage 
outcomes through quarterly wage reporting or the National Directory of 
New Hires. The commenters recommended that the implementation of the 
reporting measures be delayed to improve the quality, utility, and 
clarity of the information to be collected.
    The Department recognizes that the introduction of outcome 
reporting measures might require changes to States' data systems. 
However, the Department was statutorily required to issue an interim 
final rule implementing the provisions of section 4022 (c) of the Act 
within 18 months of enactment. The Department actively worked with 
State agencies to implement these provisions by conducting readiness 
assessments during FFY 2016 and FFY 2017 and offering grants for data 
systems annually beginning with FFY 2017. The Department also conducted 
a webinar for State agencies that included representatives from the 
Department of Labor on the use of quarterly wage record data.\5\ 
Because State agencies already collect participant characteristics, 
such as race and/or ethnicity for the SNAP program and some State 
agencies report educational measures such as attainment of credential 
or certificate for educational components in their E&T State Plans, the 
Department believes that most State agencies will be ready to implement 
these changes in the final rule. However, the Department is delaying 
implementation of all the provisions of this final rule until October 
1, 2025, in order to allow States sufficient time to make necessary 
changes to implement the final rule and to ensure that the first Annual 
Report under the final rule will be comprehensive of all provisions.
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    \5\ Webinar: SNAP E&T Outcome Reporting Requirements, August 23, 
2017 (https://www.youtube.com/watch?v=eP-PeKxdEd0).
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D. Annual Report Timeframe

    One commenter stated that the preamble for the interim final rule 
provided each measure under 7 CFR 273.7(c)(17) would be reported using 
the most recent data available during the reporting period. The 
commenter stated that the final rule should clarify that different 
measures will be reported for individuals in different time periods. 
The Department appreciates the comment and acknowledges that different 
measures contained within a State's annual report may consist of 
information from different time periods, due to the lag time for 
measures such as employment and earnings; therefore, the Department is 
modifying the regulatory

[[Page 90551]]

text in 7 CFR 273.7(c)(17) to indicate the time period to be reported 
for each section of the annual report. Due to the lag time in the 
employment and earnings reporting measures, as well as the lag time in 
the availability of quarterly wage records, for these measures State 
agencies will be required to report four (4) consecutive quarters of 
data from the two previous FFYs. This is consistent with the timeframe 
reported in annual reports as specified in guidance issued through the 
SNAP E&T Outcome Reporting Requirements--Questions and Answers (Q&A) 
Part II. The Department is aware that these lag times create a 
challenge for State agencies to provide four (4) quarters of data by 
the required January 1 due date of the annual report. To address this 
challenge the Department is modifying the due date of the Annual Report 
to April 15 under 7 CFR 273.7(c)(17). For educational measures added in 
this final rule for obtainment of a credential or certificate and 
measurable skill gains, State agencies will report on data from the 
previous FFY. State agencies will report participant characteristics 
for those E&T participants served in the E&T program from the previous 
FFY, consistent with guidance \6\ issued under the IFR.
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    \6\ SNAP E&T Outcome Reporting Interim Final Rule Questions and 
Answers Part II, issued May 15, 2017 (https://fns-prod.azureedge.us/sites/default/files/snap/Clarification-SNAP-EandT-Outcome-Reporting-PartII.pdf).
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E. County-Administered E&T Programs

    Two commenters stated that, for States with county-administered 
SNAP E&T programs, there should be a requirement that every county 
track and provide the same data to the State agency. They state that 
without this requirement the data will lack continuity and 
comparability between locations and the reports that the State agency 
provides to the Department will be incomplete. The Department 
appreciates the comment and would note that section 16(h)(5) of the 
Food and Nutrition Act of 2008, as amended (``the Act''), places the 
responsibility with the State agency for establishing component 
measures that will serve at least 100 individuals a year as well and 
for submitting the E&T Annual Report. In addition, section 11(a)(2) of 
the Act states that the responsibility of the agency of State 
government shall not be affected by whether the program is operated on 
a State-administered or county-administered basis. It is therefore the 
responsibility of the State agency to ensure that data is being tracked 
consistently, whether in a State-administered or county-administered 
program. The Department is not including additional requirements for 
county-administered SNAP E&T programs in this final rule.

F. E&T 100 Percent Grants

    One commenter noted that language included in the preamble to the 
interim final rule states that the Department retains the authority to 
consider outcome data as part of the scope of the impact for a State's 
E&T program when evaluating requests for additional 100 percent funds. 
The commenter stated that the April 2016 SNAP E&T State Plan Handbook 
did not discuss the use of outcome data for these reviews and that the 
final rule should address whether the Department intends to use outcome 
data when reviewing additional funds requests and if so, how the 
Department envisions this working when outcome data will not be 
available until the out-years.
    The Department appreciates the comments and clarifies that the 2021 
final rule implemented changes to the Department's process for 
reallocating unobligated or unexpended Federal E&T 100 percent funds to 
other State agencies requesting additional E&T funds, codified under 7 
CFR 273.7(d)(1)(iii)(E). This change was necessitated by requirements 
at section 16(h)(1)(C) of the Act, as amended by the Agricultural 
Improvement Act of 2018, that introduced priorities for the 
reallocation of funds, including the requirement that the Department 
determines that the requests funded have the most demonstrable impact 
on the ability of participants to find and retain employment that leads 
to increased household income and reduced reliance on public 
assistance. The Department has provided guidance in the revised 2022 
E&T State Plan Handbook \7\ and E&T Toolkit \8\ regarding the inclusion 
of information in State agencies' requests for additional funds 
demonstrating that the planned use of the funds has a demonstrable 
impact on the ability of participants to find and retain employment 
that increases the household income. The rule under 7 CFR 
273.7(d)(1)(iii) provides that in making reallocations the Department 
will consider, among other things, whether the employment and training 
programs and activities for which the State agency is requesting 
reallocated funds have the ``most demonstrable impact on the ability of 
participants to find and retain employment that leads to increased 
household income and reduced reliance on public assistance.'' The 
Department must also consider the size of the request relative to the 
State agency's E&T spending in prior years, the specificity of the 
State's plan for spending the reallocated funds, and the quality of the 
program and scope of impact for the State's E&T program. The Department 
considers the information provided by the State agency in their request 
as well as all performance data, including outcome data such as the 
reporting measures from prior E&T Annual Reports and E&T Program 
Activity reports, to fall within the factors already delineated in 7 
CFR 273.7(d)(1)(iii). Therefore, it is not necessary to make a change 
in this final rule.
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    \7\ E&T State Plan Handbook (https://www.fns.usda.gov/snap-et/state-plan-handbook).
    \8\ SNAP E&T Program Toolkit (https://www.fns.usda.gov/snap-et/toolkit).
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    One commenter noted that State system interfaces currently do not 
allow for the automated collection of employment and earnings data. The 
commenter asked if the Department would provide funding to support 
State system infrastructure costs for ongoing support or system 
enhancements and if State agencies can direct Department funds for 
system costs to other agencies responsible for the interfacing system.
    The Department notes that State agencies can use the E&T 100 
percent Federal grant and 50 percent administrative funds to develop or 
enhance information management systems used for collecting and 
reporting E&T data. State agencies choosing to use their E&T funds, 
whether the 100 percent Federal grant or the 50 percent administrative 
funds, for system development or modifications should include the 
anticipated costs of data collection in the estimated operating cost 
within their annual E&T State Plan. Additionally, the Department 
periodically makes available additional grant opportunities, such as 
through E&T Data and Technical Assistance Grants, which are intended to 
support the development of State SNAP E&T data collection and reporting 
systems. Since the ability to use those funds for information 
management systems already exists, it is not necessary to specify 
available funds in this final rule.

Reporting Measures

    Section 4022(a)(2) of the Agricultural Act of 2014 (Pub. L. 113-79) 
amended section 16(h)(5)(B)(i) and (ii) of the Act to require the 
Department to develop, in consultation with the Department of Labor 
(DOL), reporting measures that identify improvements in the skills, 
training, education, or work experience of members of households 
participating in SNAP. The measures were to be

[[Page 90552]]

based on common measures of performance for Federal workforce programs 
and include additional indicators that reflect the challenges facing 
the types of members of households participating in SNAP who 
participate in a specific E&T component. In the interim final rule, the 
Department, after consultation with DOL, established under 7 CFR 
273.7(c)(17)(i)-(iv) that State agencies would report annual outcome 
data based on measures that were similar to the performance indicators 
for the core programs in the WIOA, but that reflected the intent of the 
Act, and the unique characteristics of the SNAP E&T program and its 
participants. Those reporting measures included:
     The number and percentage of E&T participants and former 
participants who are in unsubsidized employment during the second 
quarter after completion of participation in E&T;
     The number and percentage of E&T participants and former 
participants who are in unsubsidized employment during the fourth 
quarter after completion of participation in E&T;
     The median quarterly earnings of all the E&T participants 
and former participants who are in unsubsidized employment during the 
second quarter after completion of participation in E&T; and
     The total number and percentage of participants that 
completed a training, educational, work experience or on-the-job 
training component.

G. Data Sources, Methodology and Method of Collection

    Regarding the measures required under 7 CFR 273.7(c)(17)(i) through 
(iv) one commenter asked if States are required to report on 
participants who enter E&T during the fiscal year or on individuals 
under certification in the fiscal year that enter and participate in 
E&T. The Department is clarifying that for the reporting measures of 
employment and earnings, due to the nature of these measures, State 
agencies are reporting on those E&T participants from the previous two 
FFYs who were referred to E&T, began at least one part of an E&T 
program including case management services or a component, and had 
obtained employment six months (second quarter) or one year (fourth 
quarter) after completion of participation in E&T. Therefore, the 
Department is modifying the regulatory text at 7 CFR 273.7(c)(17)(i) to 
indicate that for the reporting measures of employment and earnings 
State agencies shall report four (4) consecutive quarters of data from 
the two previous FFYs ending the preceding September 30.
    One commenter noted that the E&T State Plan Handbook issued by the 
Department in April 2016 included options for data sources for 
reporting measures and State reporting measures not discussed in the 
interim final rule, including the use of sampling. The commenter stated 
that the final rule should identify the data sources that States may 
use to meet the reporting requirements. Another commenter had questions 
regarding the use of sampling as a data source. They asked if States 
that choose to use sampling for State- and Federal-reported outcomes 
will report both outcomes for the same sample of 500 cases, or does the 
Department expect the sample of 500 cases for State reported outcomes 
to be different than the sample of 500 cases for the reporting 
measures. The commenter also asked if States are required to report 
outcome data in the E&T State Plan or does the E&T plan contain a 
description of the reporting measures that will be reported for that 
fiscal year. Another commenter asked if there is a required source of 
data or methodology for calculating median earnings.
    The Department appreciates the comments and notes that FNS issued 
guidance in the SNAP E&T State Plan Handbook in April 2016 and most 
recently updated May 2022 which specified that State agencies would 
determine the data source and the collection methodology it would use 
to gather the information needed for the annual report. The Department 
expressed that its preference was for State agencies to use 
administrative data and provided a list of sources they may consider 
using. These sources included Quarterly Wage Records (QWR) available 
through State's Unemployment Insurance (UI) program, the National 
Directory of New Hires, State's management information systems, manual 
follow-up or follow-up surveys of E&T participants. This guidance also 
indicated that State agencies may use sampling as a data collection 
methodology, rather than tracking all E&T participants. The Department 
recognized that given the variation in State's E&T programs, including 
their data collection and tracking procedures, State agencies were in 
the best position to determine the appropriate data source and 
collection methodology to employ. However, for the reporting measures 
of employment and earnings, the Department indicated that the preferred 
source of data was QWR but understood that State agencies needed lead 
time to negotiate data agreements, or in some cases require State 
regulatory or statutory changes granting them access to such data. For 
that reason, the Department indicated while State agencies moved toward 
the goal of using QWR for employment and earnings data, they could 
utilize any of the sources. State agencies indicate in their annual E&T 
State Plan the data sources they intend to use for reporting measures 
and component measures. For calculating the median quarterly wages in 
the second quarter after completion of participation in E&T, the 
methodology State agencies should employ is to arrange all individual 
quarterly earnings for participants in numerical order, from smallest 
to largest, and identify the wage that is in the middle of that list. 
Regarding the use of sampling, State agencies have discretion as to 
whether they employ different samples for reporting measures and State 
component measures, given that the nature and timeframe of the measures 
may differ. States choosing to use sampling as a collection methodology 
must also include details regarding the sample design in the E&T State 
Plan. The regulations under 7 CFR 273.7(c)(6)(xviii) specifies that in 
the annual E&T State Plan State agencies will provide a component 
measure for every component that is expected to include 100 or more 
participants, and those measures will be reported in the annual report 
specified in paragraph (c)(17). To maintain flexibility to account for 
variations among States, the Department is not changing in the final 
rule the data sources or collection methodology States may employ for 
the annual report.
    One commenter noted that UI QWR data does not capture all earnings, 
such as out of State, Federal or informal employment. The commenter 
asked if it was feasible for the Department to collect data on 
employment or to match nationally on behalf of States against the State 
submission of participants who completed an E&T program. Another 
commenter noted that the final rule should provide an option for States 
to request that the Department calculate performance measures related 
to employment and earnings using the Department's access to national 
quarterly wage record data or National Directory of New Hires. They 
indicated that such an option would relieve States of some of the 
burden imposed on the State to perform such measures and calculations, 
ensure standardized measurement standards for States participating in 
such an option, and provide the Department a more robust platform to 
assess the E&T program. The commenter stressed this as an option

[[Page 90553]]

and would not support making this approach mandatory. One commenter 
stated that the Department should allow the use of automated data 
exchanges and State wage information to identify the employment status 
and quarterly wages of former E&T participants. They noted that they 
have observed that within the first year of reinstating the ABAWD work 
requirement in their State,\9\ E&T vendors reported that the actual 
employment rate for SNAP participants is significantly higher than the 
37% employment rate identified by the State's data. The commenter noted 
that former E&T participants rarely verify their new employment status 
after reporting it since there is no incentive for them to do so and 
they believe that it is essential for States to be able to use wage 
matches through such sources as Work Number or Equifax to accurate 
report employment outcomes of E&T participants.
---------------------------------------------------------------------------

    \9\ The American Recovery and Reinvestment Act of 2009 (ARRA) 
suspended the time limit for individuals subject to the work 
requirements under section 6(o)(2) of the Food and Nutrition Act, 
unless the individual did not comply with requirements of a program 
offered by a State agency. This provision under ARRA expired at the 
end of FFY 2011.
---------------------------------------------------------------------------

    The Department acknowledges that the quarterly wage record data 
available through State's UI reporting does not capture all earnings, 
specifically Federal employment or the self-employed. As previously 
discussed, the Department is not requiring States to use a specific 
data source for the annual report. However, the Department believes 
that QWR data is the most reliable and efficient source of information 
pertaining to employment and earnings of E&T participants and suggest 
as a best practice the use of QWR data. Further, it would not be 
feasible for the Department to calculate performance measures related 
to employment and earnings because quarterly wage record data is not 
available from a single source at a national level, it resides within 
each State agency responsible for UI reporting. In addition, this would 
require the Department to collect individual case records on every E&T 
participant from each State agency and this would impose additional 
burden on State agencies. The Department does not collect individual 
case records in the SNAP program, including the SNAP E&T program. 
Therefore, the Department is not changing the data sources or method 
for collection in this final rule.

H. Employment and Earnings Measures

    One commenter asked if the fourth quarter employment after 
completion of E&T was intended to be a proxy for retention. This 
commenter also asked what if the employer or record from second and 
fourth quarters are different. The Department understands that the 
fourth quarter employment measure could be perceived as being a proxy 
for employment retention. However, the measure is a point in time 
measure and is only measuring whether an E&T participant is in 
unsubsidized employment twelve months after completing participation in 
E&T. Whether the E&T participant was included in the second quarter 
employment measure bears no relevance to the fourth quarter employment 
measure; therefore, the Department is not making a change in the final 
rule.
    Three commenters stated that the timeline for reporting employment 
and earnings measures should consider the six-month lag time in the 
availability of quarterly wage records (QWR). They noted, for States 
using QWR information, reporting on fourth quarter employment after 
completion of E&T by the January 1 due date of the annual report would 
not be possible for any group completing components in FFY 2017 or 
thereafter. This lag time in the availability of the QWR gives States 
little time to perform the matches and analysis before the E&T Annual 
Report is due on January 1.
    One commenter stated that the final rule should provide information 
addressing how States can request an extension or apply for a waiver of 
the requirement for States to submit an annual report to the Department 
on January 1 of each year.
    The Department appreciates the comments and acknowledges that the 
timeframe of the employment and earnings measures as well as the six-
month lag time in the availability of quarterly wage records (QWR) 
impacts State agencies' abilities to submit an E&T Annual Report that 
consists of four (4) quarters of data from only the preceding FFY on 
January 1. Therefore, the Department is modifying the regulatory text 
at 7 CFR 273.7(c)(17) to change the due date of the annual report to 
April 15. Additionally, the Department is modifying 7 CFR 
273.7(c)(17)(i) to reflect that for the employment and earnings 
measures State agencies shall submit four (4) consecutive quarters of 
data from the two previous FFYs.
    Regarding the quarterly median wage measure, one commenter noted 
that because the quarterly wage records reflect quarterly earnings and 
does not include a start date or the number of pay periods, individuals 
who are hired mid-quarter will appear to have lower wages than their 
actual hourly rate. The Department appreciates the comment on the 
limitation of quarterly wage records to reflect the earnings of 
participants who may obtain employment mid-quarter. However, the 
Department was required to develop reporting measures, in consultation 
with the Department of Labor, that were based on common measures of 
performance for Federal workforce programs and the quarterly median 
measure is aligned with WIOA programs. The Department believes that, to 
account for the mid-quarter hires, as well as to ensure consistency, 
all States would need to modify their collection processes to include 
capturing the start date of employment for those individuals as well as 
the wage information. In order to ensure consistency in the State 
agencies reporting of participant wage information, this would require 
that all State agencies, as well as E&T providers devote staff time to 
collect the information necessary from the E&T participants or 
employers. This would place an undue burden on E&T participants and 
their employers to provide participant wage information. The Department 
believes that this burden far outweighs the benefits to account for 
those mid-quarter hires, therefore, the Department is not modifying the 
regulations regarding the quarterly median wage measure in this final 
rule.
    One commenter questioned the practical utility of the employment 
and earnings measures and asked if employment and earnings six or 
twelve months after E&T participation correlate with the impact of the 
E&T intervention. Another commenter noted that the employment and 
earnings measures are reliant on systems outside of State SNAP agency 
and requires ongoing staffing effort to manually collect and compile 
the information, calling into question the effort and validity of such 
measures. The Department appreciates the comments and would note that 
the provisions of 4022(a) in the Agricultural Act of 2014 charged the 
Department with the responsibility to assess the effectiveness of SNAP 
E&T programs in preparing members of households participating in SNAP 
for employment, including the acquisition of basic skills necessary for 
employment; and increasing the number of household members who obtain 
and retain employment subsequent to participation in the SNAP E&T 
program. This section further required the Department, in consultation 
with the Department of Labor, to develop reporting measures that would 
identify improvements in the skills, training, education of SNAP

[[Page 90554]]

participants and that were based on common measures of performance for 
Federal workforce training programs. As noted previously, WIOA 
established common measures of performance to ensure consistency across 
all programs under WIOA. These common measures for employment and 
earnings specified the timeframe of second quarter and fourth quarter 
after exit from a WIOA program. The Department believes that the 
adoption of employment and earnings measures aligned with measures for 
workforce programs under WIOA meets the Department's obligation to 
assess States for the number of individuals who obtain and retain 
employment subsequent to participation in E&T programs. The Department 
is not modifying the provisions for the employment and earnings 
measures in this final rule.
    One commenter stated that while the Department has developed 
standardized reporting measures as required in the Act, it has not, at 
least as stated in the guidance provided in the E&T Plan Handbook, 
standardized the methods states must employ to collect data on those 
measures. Given that employment outcomes are known to differ based on 
the modality of data collection, the commenter suggested the final rule 
should address how the Department plans to adjust for performance 
differences across States using differing data collection 
methodologies.
    The establishment of reporting measures, as provided in section 
16(h)(5)(B) of the Act, was for the purpose of identifying improvements 
in the skills, training, education or work experience of members of 
households participating in States' Supplemental Nutrition Assistance 
Programs. The Act did not require the Secretary to establish reporting 
measures with performance targets or to compare reporting measures 
across State agencies. Therefore, the Department is not making changes 
in the final rule in response to this comment.

I. Completion of Education, Training, Work Experience or OJT Components

    One commenter stated that the reporting measures should also 
include a credential attainment measure consistent with the WIOA 
primary indicator on credential attainment. This includes measures such 
as the number and percentage of individuals assigned to E&T who obtain 
a recognized postsecondary credential, or a secondary school diploma or 
its recognized equivalent during participation in or within 1 year 
after exit from SNAP E&T. The commenter noted that measuring credential 
attainment is an important part of measuring skill-building outcomes. 
The Department agrees that the reporting measures should include 
educational measures that are aligned with WIOA.\10\ This includes 
measures such as credential attainment and measurable skill gain that 
are important factors to consider in assessing and evaluating the 
effectiveness of a State's E&T program in assisting E&T participants in 
obtaining skills necessary for employment. Measurable skill gains 
provide the Department and State agencies with an interim progress of 
participants who are enrolled in any educational or training program 
and is triggered by program enrollment rather than on completion of the 
program. Both measures are in practice by workforce development 
organizations. An analysis of State's FY 2021 E&T Annual Reports 
indicates that several State agencies already utilized these as 
component measures. Because of these factors, the burden on State 
agencies should be minimal. Therefore, the Department is creating two 
educational measures for attainment of credential or certificate and 
measurable skill gains under new 7 CFR 273.7(c)(17)(ii).
---------------------------------------------------------------------------

    \10\ Training and Employment Guidance Letter No.10-16, Change 3 
issued September June 11, 2024 (https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2023/TEGL%2010-16%20Change%203/TEGL%2010-16%2C%20Change%203.pdf.
---------------------------------------------------------------------------

    State agencies will be required to report the number and percentage 
of E&T participants enrolled during the preceding FFY in an educational 
or training program, excluding those in on-the-job training, customized 
training or transitional jobs, who attain a recognized post-secondary 
credential, certificate or a secondary school diploma, or its 
recognized equivalent, during participation in or upon completion of 
participation in E&T.
    State agencies will also be required to report the number and 
percentage of E&T participants who, during the preceding FFY, were in 
an education or training program that will lead to a recognized 
postsecondary credential or employment and who are achieving measurable 
skill gains, defined as documented academic, technical, occupational, 
or other forms of progress, towards such a credential or employment. 
This measure is intended to capture E&T participants who are working 
towards attainment of a credential or employment but may not have had 
sufficient time to achieve the intended outcome during the reporting 
fiscal year. In essence, this measure is reporting E&T participants' 
progress toward attainment of a credential or employment. Depending on 
the type of education or training program, documented progress could 
consist of one of the following:
     Documented achievement of at least one educational 
functioning level of a participant who is receiving instruction below 
the postsecondary education level.
     Documented attainment of a secondary school diploma or its 
recognized equivalent.
     Secondary or postsecondary transcript or report card for a 
sufficient number of credit hours that shows a participant is meeting 
the State unit's academic standards.
     Satisfactory or better progress report, towards 
established milestones, such as completion of one year of an 
apprenticeship program or similar milestones, from the training 
provider who is providing training.
     Successful passage of an exam that is required for a 
particular occupation or progress in attaining technical or 
occupational skills as evidenced by trade-related benchmarks such as 
knowledge-based exams.
    One commenter, commenting on the collection of the total number and 
percentage of participants that completed an educational, training, 
work experience of on-the job training measure, stated that the ability 
to capture completion of components, specifically an education or 
training component, is dependent upon a manual, individual-level 
process and would pose an undue burden on States without clear benefit. 
They asked what the Department hopes to deduce from this information. 
Another commenter noted that the ability to capture completion of 
components must be imbedded in the E&T case management system and would 
require additional system functionality and would further require 
direct reporting by participants and data entry by a worker. The 
commenter asked if the Department would require verification of 
completion and if documentation of completion would be included in 
management evaluations or other Federal reviews. One commenter sought 
clarification for the measure of completion of an educational, 
training, work experience or on-the-job training component. They asked 
that ``completion'' be defined, and a clarification of who is included 
in the denominator, if it is all E&T participants or only those 
participating in one of the components. One commenter stated that for 
the completion of educational, training, work experience or on-the-job 
training components a SNAP client has the potential to complete 
multiple E&T

[[Page 90555]]

activities. They stated that the final rule should clarify whether 
States should count completion in each of the components or just one 
and if States should only be reporting completion in one component 
during the fiscal year, clarify, how States should determine the 
completion to be reported.
    The Department acknowledges that capturing completion of components 
would necessitate some level of case management, whether through a 
manual process or through an automated system. However, separate and 
apart from any reporting requirements, recording when participants 
begin and complete any activity is a cornerstone of an effective 
employment and training program, ensuring participants are making 
progress toward individual goals as well as program goals. The 
Department would note at the time of the interim final rule, the 
Department established reporting measure for completion of an 
education, training, work experience or on-the-job training (OJT) 
component in 7 CFR 273.17(c)(17)(iv) of the interim final rule as a 
measure that was specific to the SNAP E&T program. This was done, 
partly because the Departments of Labor and Education were still in the 
process of finalizing their policies for the educational common 
measures of credential or certificate attainment and measurable skill 
gains, for the WIOA programs. The Department is not aware of other 
Federal agencies incorporating similar completion measures, and after 
reconsideration the Department does not believe ``completion'' is a 
meaningful measure. Therefore, considering the comments, the Department 
is removing the completion of education, training, work experience and 
on-the-job training reporting measure under 7 CFR 273.7(c)(17)(iv) and 
replacing with two educational measures for attainment of credential or 
certificate and measurable skill gains under new 7 CFR 
273.7(c)(17)(ii).

J. Alignment of Measures With WIOA

    Three commenters recommended that the Department fully align the 
proposed measures and reporting requirements with those established in 
WIOA and the final WIOA regulations to improve service integration and 
support evaluation of outcomes across programs. One of the commenters 
further stated that the Department should give States that choose to 
integrate services across the WIOA and SNAP E&T programs the option of 
using the common periods of participation with common exit used in WIOA 
programs. The Department appreciates the recommendation to fully align 
measures with those established in the WIOA programs. The measures in 
the interim final rule were closely aligned but not identical to those 
measures in WIOA. Some of the variation was attributable to differences 
in the frequency of reporting and difference in data needs. At the time 
of the interim final rule the Department did not include educational 
measures that aligned with WIOA, partly because the Departments of 
Labor and Education were still in the process of finalizing their 
policy. The Department encourages and applauds coordination and 
collaboration between WIOA and SNAP E&T to serve E&T participants. WIOA 
guidance states that common exit occurs when a participant, enrolled in 
multiple DOL-administered partner programs, has not received services 
from any DOL-administered program in which the participant is enrolled, 
to which the common exit policy applies, for at least 90 days, and no 
future services are planned.\11\ In SNAP E&T an individual's 
eligibility for SNAP E&T services is directly tied to their eligibility 
and receipt of SNAP benefits, this means that an individual's 
participation in SNAP E&T ends when they are no longer receiving SNAP 
benefits. The Department believes that it would place an undue burden 
on State agencies to apply the common exit principle for those 
individuals who may be co-enrolled in SNAP E&T and WIOA programs. 
Therefore, the Department is not making this change in this final rule.
---------------------------------------------------------------------------

    \11\ Training and Employment Guidance Letter No.10-16, Change 3 
issued September June 11, 2024 ((https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2023/TEGL%2010-16%20Change%203/TEGL%2010-16%2C%20Change%203.pdf).
---------------------------------------------------------------------------

    One commenter, while supportive of aligning reporting requirements 
between E&T and WIOA programs, suggested that the interim final rule 
should provide additional implementation time to allow States to align 
those standards. The commenter noted that SNAP E&T programs and WIOA 
programs are administered by different State agencies and have 
differences in vendors, outcome data tracking systems, eligibility and 
participant tracking systems. The commenter believed additional time is 
necessary to link the various systems and to align the reporting 
requirements. The Department appreciates the comment and acknowledges 
that State agencies need additional time to implement measures that are 
aligned with WIOA. Therefore, the Department will delay implementation 
of the educational reporting measures specified under the new 7 CFR 
273.7(c)(17)(ii) until October 1, 2025.

K. Performance Standards

    One commenter asked if the Department intended to apply performance 
standards for outcome measures of employment, earnings and completion 
of education, training, work experience or on-the-job training. The 
Department would like to clarify that the provisions of section 
16(h)(5)(A) of the Food and Nutrition Act of 2008, as amended by the 
Agricultural Act of 2014, required the Department to assess the 
effectiveness of States' E&T programs in preparing members of 
households participating in SNAP for employment, including the 
acquisition of basic skills necessary for employment, and in increasing 
the number of household members who obtain and retain employment after 
participation in SNAP E&T and to implement reporting measures to assist 
in making the determination of effectiveness. It was not the intent of 
the Department to apply performance standards or targets, or to compare 
the effectiveness of one State's E&T program to other States due to 
State flexibility in the design of their E&T program, such as the 
participants targeted for services, services to be delivered and the 
areas of the State for services, as well as the differences in labor 
markets and targeted occupations.

Disaggregated Characteristics of E&T Participants in Reporting Measures

    Section 16(h)(5)(B)(ii) of the Act, as amended by the Agricultural 
Act of 2014, requires that the reporting measures developed by the 
Department include additional indicators that reflect the challenges 
facing the types of members of households participating in SNAP who 
participate in a specific employment and training component. In the 
interim final rule, the Department identified three participant 
characteristics that it believed were the most important to understand 
the challenges to employment faced by SNAP E&T participants and former 
participants who are included in the reporting measures. Those 
characteristics included whether the participants were voluntary or 
mandatory participants; participants who had received a high school 
degree (or GED) prior to being provided with E&T services; and were 
able-bodied adults without dependents (ABAWDs). The interim final rule 
required States to report the number and percentage of E&T participants 
reported in each of the reporting measures, a disaggregation of the 
number, and percentage of those participants and former participants by 
each of the three characteristics.

[[Page 90556]]

    In the interim final rule, the disaggregated characteristics for 
the reporting measures, such as employment in the second or fourth 
quarters after completion of participation in E&T, reflect the 
composition of the outcome group. For example, the number of 
individuals in unsubsidized employment in the second or fourth quarter 
after completion of participation in E&T who are voluntary 
participants. The denominator is the number of individuals in 
unsubsidized employment in the second or fourth quarter after 
completion of participation in E&T and the numerator is the number of 
individuals who met one of the three characteristics.
    Two commenters requested the Department clarify that the 
disaggregated characteristics in the interim final rule require 
reporting the outcomes of the disaggregated groups, not simply of the 
composition of the group that is used to determine these outcomes. The 
denominator would then be the total amount of individuals who meet the 
characteristic, and the numerator would be the number of individuals 
who meet that characteristic who are in unsubsidized employment in the 
second or fourth quarter after completion of participation in E&T. For 
example, the number and percentage of all voluntary participants in 
unsubsidized employment during quarter two after completion of E&T 
participation. One of the commenters noted that reporting employment, 
earnings and credential attainment outcomes for subpopulations will 
provide valuable information on the effectiveness of different SNAP E&T 
strategies.
    The Department agrees that the disaggregated characteristics for 
the reporting measures, such as employment in the second or fourth 
quarters after completion of participation in E&T, should reflect the 
outcome observed for each characteristic, rather than the composition 
of the outcome group. The Department further agrees that this change 
would provide valuable information on the effectiveness of SNAP E&T 
observed by each participant characteristic. As a result, the 
Department is modifying the regulation for the disaggregated 
characteristics of the reporting measures to reflect the outcomes 
observed by each characteristic under renumbered 7 CFR 
273.7(c)(17)(iii).
    One commenter stated that individuals assigned to but not 
participating in E&T should be treated as a subpopulation for reporting 
purposes, just as are voluntary or mandatory participants, and 
participants achieving or not achieving a high school degree or its 
equivalent. The Department appreciates the suggestion that individuals 
assigned to but not participating in E&T should be treated as a 
subpopulation for reporting purposes. We agree that this is an 
important factor in evaluating the effectiveness of an E&T program, and 
the Department has recently modified the E&T Program Activity Report 
(FNS-583) to capture additional reporting elements for States that 
serve mandatory E&T participants through the 2021 final rule. The 
Department believes the role of outcome measures is to measure the 
impact of interventions received by participants, so covering 
individuals who never participated in E&T is not helpful for those 
outcome measures. However, the Department agrees that outcome measures 
should reflect those individuals who were required to participate in 
E&T, referred to E&T, began participating in an E&T program but who 
were subsequently deemed ineligible for SNAP due to failure to comply 
with E&T requirements. The Department believes that it is appropriate 
and would add value to add a characteristic for mandatory E&T 
participants who are deemed ineligible for SNAP due to a failure to 
comply with E&T requirements and therefore are adding this as a new 
characteristic under 7 CFR 273.7(c)(17)(iii).
    The Department remains committed in our efforts to advance racial 
equity and support for underserved communities, as demonstrated in 
Executive Order 13985 and the USDA Equity Plan. The Department is 
adding race and/or ethnicity of E&T participants as additional 
participant characteristics to be reported by State agencies. This is 
outlined in the race/ethnicity data collection requirements in 7 CFR 
272.6(g). As the regulations at 7 CFR 272.6(g) and (h) require State 
agencies to collect race and ethnicity data on participating households 
and report the data to FNS, the Department does not believe reporting 
measures by race and/or ethnicity will cause any additional burden on 
the part of the State agencies. The Department will use the participant 
characteristic information collected through the E&T Annual Reports, 
such as the race and ethnicity data, in conjunction with other data of 
SNAP participants to better understand and help identify potential 
equity concerns at various stages of the SNAP E&T service delivery 
process. This information will be used by the Department in assessing 
State's effectiveness of the E&T program in meeting the needs of all 
E&T participants.

State Component Measures

    Section 4022(a)(2) of the Agricultural Act of 2014 amended section 
16(h)(5)(B)(ii) of the Act to require each State agency to identify in 
its annual E&T State Plan appropriate reporting measures for each 
proposed component that serves a threshold of at least 100 participants 
a year. The State agencies are then required to report on those 
measures in their E&T Annual Reports to the Department. This section of 
the Act provided several measures that State agencies could consider, 
such as the percentage and number of program participants who received 
E&T services and are in unsubsidized employment subsequent to the 
receipt of those services. Other examples include State agency-
developed measures of a participant's interim progress toward achieving 
goals of a specific component and the number and percentage of program 
participants who are meeting program requirements in a component of the 
State agency's E&T program. Section 16(h)(5)(C)(iii) also charged the 
Department with the oversight responsibility to ensure that reporting 
measures are appropriate to identify improvements in skills, training, 
work and experience for participants in an E&T program component. The 
interim final rule established under 7 CFR 273.7(c)(6)(xviii) the 
requirement that State agencies include in the E&T State Plan a 
reporting measure for every component that is expected to include 100 
or more participants and include those measures in the E&T Annual 
Report. The rule included the list of suggested measures specified in 
the Act that State agencies could consider adopting. The Department 
chose a threshold of 100 participants a year to be consistent with the 
minimum specified in the Act. The Department would clarify that the 
intent of component measures is to measure the effectiveness of the 
intervention provided through the component so the ideal measure would 
be closely tied to the time of the intervention. For example, an 
appropriate measure for supervised job search is to measure E&T 
participant's attainment of unsubsidized employment upon completion of 
the component. To fulfill the Department's oversight responsibility, 
the Department will work with State agencies through the State Plan 
approval process to ensure that the State identified measures approved 
in the State Plan are appropriate for each component.
    One commenter noted that the interim final rule allows States to 
establish their

[[Page 90557]]

own component reporting measures subject to the Department's review and 
approval as part of the SNAP E&T State Plan review process. However, 
the rule is silent on the criteria by which component measures will be 
approved. The commenter suggests that the final rule provide that the 
Department will presumptively approve State component measures which 
are chosen from those measures suggested in the regulations and set 
forth the criteria under which the Department will deem other proposed 
measures appropriate. One commenter stated that, given the flexibility 
in determining state-designed reporting measures for components 
provided in the Act and interim final rule, it is essential that the 
Department defer to the States when reviewing and approving reporting 
measures in E&T State Plans. The commenter noted that with less than 
100 days between the effective date of the interim final rule and the 
date the State's FFY 2017 E&T plans were due, the States are best 
situated to determine how they can effectively collect and report data 
with very little time to plan. One commenter stated that the final rule 
should describe what flexibility will be provided to change or adjust 
reporting measures for individual components after approval as part of 
the annual SNAP E&T Plan, and if a change is approved what measures the 
State will be required to include in the annual report.
    The Department agrees that State agencies are best suited to 
determine an appropriate component measure that they can collect 
effectively and efficiently. The primary criteria for a component 
measure are that the measure be an outcome-based measure and not a 
process measure. The measure should be relevant to the given component 
and should be closely tied to the time of when the component was 
utilized for participants. For example, a measure of a measurable skill 
gains would not be applicable for a supervised job search component. 
The regulations under 7 CFR 273.7(c)(8) provide that if a State agency 
modifies or alters the nature or location of its components or the 
number or characteristics of persons served, a State Plan amendment 
must be submitted to the appropriate FNS Regional Office for approval 
at least 30 days prior to the planned implementation. This requirement 
extends to any proposed change in a component measure. If the proposed 
change is approved the State agency would be required to include the 
revised measure in that year's E&T Annual Report.
    One commenter stated that the SNAP E&T Handbook published by the 
Department on April 25, 2016, appears to include requirements for 
county-level reporting measures for State supervised, county 
administered States, while the interim rule does not. They stated they 
do not believe that the statute provides the Department the authority 
to require measures below the State level because section 4022(a)(2) 
states that the Secretary will monitor E&T programs ``carried out by 
State agencies'' and ``shall develop State reporting measures.'' They 
do not believe that county-administered States should be held to 
additional reporting requirements that are not required of State-
administered programs. The commenter proposed that the final rule 
specifically preclude county-level measurement. The commenter 
recommended that in the absence of such a prohibition, the Department 
should also provide information to address whether county-level 
reporting measurements were considered when the Department estimated 
States' administrative burden in complying with the requirements 
outlined in the interim rule.
    The Department would like to clarify that the table of components 
offered by each county included in the April 2016 E&T State Plan 
Handbook was provided as an option that county-administered States may 
use in completing the E&T State Plan. It was not intended to indicate 
that additional reporting requirements were placed on county-
administered programs. Rather, it was intended to assist State agencies 
in compiling the data collected from their counties. That optional 
table has since been modified to remove reporting measures by county. 
Further, the Department notes that section 11(a)(2) of the Food and 
Nutrition Act of 2008, as amended, specifies that the responsibility of 
the agency of State government shall not be affected by whether the 
program is operated on a State-administered or county-administered 
basis. Thus, the Act specifically places the responsibility with the 
State agency for establishing component measures in the annual E&T 
State Plan and reporting of those measures in the annual report.
    Twenty (20) commenters recommended that States should be required 
to report employment in the second and fourth quarters after completion 
of E&T and the median quarterly earnings in the second quarter for any 
component that is expected to include 100 or more participants, in 
addition to any State measures. Three of the commenters further stated 
that States should be required to report the completion of any 
component. The commenters stated that such information at the component 
level will allow States to assess the effectiveness of various 
approaches and redirect resources toward components with the greatest 
likelihood of helping SNAP participants improve their employability.
    The Department appreciates the comments but notes that section 
(16)(h)(5)(B)(iii) of the Act provides flexibility in identifying 
appropriate reporting measures for every component that serves at least 
100 participants a year in the annual E&T State Plans, with the 
Department's approval. The interim final rule under 7 CFR 
273.7(c)(6)(xviii) provided several examples of measures that State 
agencies could choose, such as the number of program participants that 
obtain unsubsidized employment subsequent to receipt of the component. 
States also can identify other measures in addition to the examples 
provided in the regulation. The Department would note that the intent 
of individual component measures is to measure the impact of a 
particular component. The Department does not believe that outcome 
measures of the E&T program, such as the reporting measures for 
employment and earnings six or twelve months after an individual's 
participation in an E&T program, which could consist of multiple 
components would be useful in measuring the effectiveness of a single 
component. However, the Department encourages State agencies to 
consider the full range of measures, including those measures that 
would provide an interim benchmark for participant's progress toward 
achieving goals of a specific component.
    One commenter stated that the final rule should address how the 
States are to be required to track component completion after a person 
is no longer a SNAP recipient. The commenter explained that currently 
there is no requirement in place for individuals to report their 
employment or training status upon completing a SNAP E&T component and 
that it would be very costly and difficult to obtain this information. 
The Department wishes to clarify that SNAP regulations do not require 
States to track component completion after a person is no longer a SNAP 
recipient. Under 7 CFR 273.7(c)(6)(xviii) States have the discretion to 
identify an appropriate component measure.
    One commenter noted States would need additional time to develop 
evaluation plans and establish effective collaboration with E&T vendors 
and other stakeholders to develop a comprehensive evaluation plan for 
each

[[Page 90558]]

proposed component serving at least 100 participants a year. They 
indicated that adequate planning and development time would ensure that 
collected data accurately measure intended outcomes. The commenter 
recommended delaying the implementation of reporting requirements. The 
Department appreciates the comment and acknowledges that adequate 
planning and development time is essential for ensuring accurate data 
collection procedures. The interim final regulations were published in 
the Federal Register on March 24, 2016, effective May 23, 2016, and 
States were required to identify component measures for components that 
served at least 100 participants annually in the FY 2017 E&T State 
Plan. While the Department realizes this only allowed States 
approximately six months to establish data collection procedures for 
component measures, guidance was issued in the Supplemental Nutrition 
Assistance Program--section 4022 of the Agricultural Act of 2014--
Questions and Answer (Part I), issued July 26, 2016, that indicated 
that the Department would work with individual States as needed to 
allow additional lead time for the States to finalize reporting 
measures and data sources.
    In conclusion, the Department codifies the regulatory text in 7 CFR 
273.7(c)(6)(xviii) as indicated in the interim final rule.

E&T Participant Characteristics

    Section 16(h)(5)(C) of the Act, as amended by the Agricultural Act 
of 2014, charges the Department with the responsibility for conducting 
oversight of State E&T program activities and lists four specific 
oversight activities. One of the activities includes ensuring that 
program activities are appropriate to meet the needs of the individuals 
referred by the State agency to an E&T program component. Additionally, 
as stated previously, section 16(h)(5)(B)(ii) of the Act required that 
reporting measures include additional indicators that reflect the 
challenges facing the types of members of households participating in 
SNAP who participate in a specific E&T component. Because the SNAP work 
registrant population, like the general SNAP population, is very 
diverse and faces a myriad of challenges to employment, such as 
measurable educational attainment, the Department believed that to have 
a better understanding of the effectiveness of SNAP E&T it must have a 
more complete picture of the population that is being served in E&T. 
For that reason, in the interim final rule the Department required 
State agencies to report the number and percentage of all E&T 
participants on seven characteristics. Those participant 
characteristics included the participants who:
     Are voluntary vs. mandatory;
     Have achieved a high school degree (or GED) prior to being 
provided with E&T services;
     Are ABAWDs;
     Speak English as a second language;
     Are male vs. female; and
     Belong in the following age ranges: 16-17, 18-35, 36-49, 
50-59, 60 or older.
    One commenter stated that it is unlikely that the six participant 
characteristics information would be useful in understanding the 
effectiveness of E&T programs, absent an effective way to establish 
relationship between participant characteristics, assignments, and 
outcomes. The commenter further stated that the Department did not have 
specific statutory authority to require reporting of participant 
characteristics and suggested more useful information on participant 
characteristics and the availability of appropriate assignments could 
be more efficiently obtained through specific research studies. Another 
commenter stated that the collection of reliable educational levels is 
problematic, and the utility of collecting is unclear. The commenter 
stated that SNAP eligibility systems do not collect educational 
attainment or an indicator for ``speaks English as a second language'' 
and that it's unclear what FNS intends to do with this information. The 
commenter also stated that the language of ``prior to being provided 
with E&T services'' is unclear and asked if SNAP E&T funds must be used 
to pay for the full cost of a service to be considered ``provided'' and 
how this applies to referrals to E&T.
    The Department appreciates the comments but disagrees that 
participant characteristics are not useful in understanding the 
effectiveness of E&T programs. Based on widely reported research and 
data, women, minorities and individuals with lower education levels 
face additional obstacles to employment and lower earnings. To 
understand the overall effectiveness of a program it is important to 
consider the demographics of the population that is receiving the 
services, as well as the challenges that face participants that have 
less than a high school diploma or equivalency prior to participation 
in E&T or participants that speak English as a second language. The 
Department further disagrees that the Department does not have the 
statutory authority to require reporting of participant 
characteristics. Section 16(h)(5)(B)(ii) of the Act provided broad 
discretion to the Department in creating reporting metrics by requiring 
the inclusion of additional indicators that reflect the challenges 
facing the types of members of households participating in SNAP E&T. 
Additionally, the Act charges the Department with oversight 
responsibility for ensuring that program activities are appropriate to 
meet the needs of the individuals referred by the State agency to an 
E&T program component. The inclusion of reporting participant 
characteristics was in direct response to this requirement specified in 
the Act, so the Department is retaining the participant characteristics 
reporting and as described earlier, adding race and/or ethnicity as a 
participant characteristic.
    The interim final rule at 7 CFR 273.7(c)(17)(v) required States to 
include in the annual report the number and percentage of E&T 
participants who met the characteristic of having obtained a high 
school diploma (or GED) prior to being provided with E&T services. The 
Department agrees with the comment that the term ``prior to being 
provided with E&T services'' is unclear. For that reason, to add 
clarity, the Department is modifying the regulatory language in 7 CFR 
273.7(c)(17)(v) for this characteristic to read ``E&T participants who 
obtained high school diploma and equivalency prior to referral to 
E&T.''
    One commenter asked for the participant characteristic of education 
attainment prior to participation in E&T, for States not already 
tracking this information, how are States expected to capture data for 
anyone that participates in FFY 2017 or after. The Department 
appreciates the comment and notes that the Department allowed State 
agencies who were not already collecting participant's educational 
attainment prior to participation in E&T in their automated systems to 
report that characteristic as ``unknown,'' until such time as the State 
agency could modify their collection procedures to capture this 
characteristic. Given the guidance, it is not necessary to make this 
change in the final rule.
    Two commenters inquired how participants should be reported if the 
characteristic, such as ABAWD status, changes multiple times during a 
reporting year. The Department issued guidance in the SNAP E&T Outcome 
Reporting Interim Final Rule: Questions and Answers Part II \12\ on May 
15, 2017, that State agencies should capture and report on a 
participant's characteristic at

[[Page 90559]]

the time the individual begins an E&T program within the reported 
fiscal year. No change is required in this final rule.
---------------------------------------------------------------------------

    \12\ SNAP E&T Outcome Reporting Interim Final Rule: Questions 
and Answers Part II.
---------------------------------------------------------------------------

    One commenter noted that all references to high school degree or 
GED should be replaced with ``high school diploma or equivalency.'' The 
commenter stated that GED is a trademarked name and is only one of 
several types of high school equivalency exams being used. The 
Department appreciates the suggestion and is therefore providing a 
change in the regulatory language under the renumbered 7 CFR 
273.7(c)(17)(iii)(F) and 7 CFR 273.7(c)(17)(v)(C) to reference high 
school diploma or equivalency.

Monitoring, Evaluating and Assessing State's E&T Programs

    The Agricultural Act of 2014 amended section 16(h)(5)(A) of the Act 
to require the Department to monitor and assess the effectiveness of 
E&T programs carried out by State agencies in preparing members of 
households participating in SNAP for employment, including the 
acquisition of basic skills necessary for employment, and increasing 
the number of household members who obtain and retain employment 
subsequent to participation in E&T. The Act also established in section 
16(h)(5)(C)(i)-(iii) of the Act specific Department oversight 
activities of E&T programs, that included ensuring:
     Compliance with Federal E&T program rules and regulations;
     That program activities are appropriate to meet the needs 
of the individuals referred by the State agency to an E&T program 
component;
     That reporting measures are appropriate to identify 
improvements in skills, training, work, and experience for participants 
in an E&T program component.
    Section 16(h)(5)(C)(iv) of the Act also specified Department 
oversight responsibilities for evaluating the compliance of States that 
receive an additional allocation for ensuring the availability of work 
opportunities for ABAWDs. This section provided the Department the 
authority to require any information from these States that were 
determined appropriate for evaluating compliance. This included 
requiring a report by the States on the number of individuals meeting 
ABAWD criteria; the number offered a work opportunity; the number who 
participated in such opportunities; and a description of the types of 
opportunities available throughout the State.
    Section 16(h)(5)(E) of the Act, as amended by the Agricultural Act 
of 2014, gives the Department the authority to require a State agency 
to make modifications to the State's E&T State Plan to improve outcomes 
if the Department determines that the E&T outcomes are inadequate.
    The SNAP regulations at 7 CFR 275.3(a) already requires FNS to 
conduct management evaluations (ME) reviews of targeted areas of SNAP 
program areas each year, including E&T. FNS identifies target areas 
each year based upon a number of considerations, including recent 
policy changes, risk to Federal funds and risk to program access. For 
example, FNS may identify program access as an area that the regional 
offices are required to review in every State, and nutrition education 
as an area to be reviewed on an at-risk basis, as necessary. This 
affords FNS maximum flexibility to target resources to those current 
areas of vulnerability or agency priorities.
    In previous years, FNS has not required its regional offices to 
perform an ME of each State's E&T program. FNS has required its 
regional offices to review E&T programs in States that operate third-
party partner programs, or that have combined Federal and non-Federal 
budgets over a certain threshold. As part of its general monitoring and 
oversight responsibilities, FNS will meet the requirement of the Act by 
continuing to perform MEs of States' E&T programs but will also 
continue to establish in guidance which target areas to focus attention 
each year.\13\
---------------------------------------------------------------------------

    \13\ Fiscal Year 2023 State Management Evaluation Target Areas 
(https://www.fns.usda.gov/snap/fiscal-year-2023-state-management-evaluation-target-areas).
---------------------------------------------------------------------------

    In addition, under existing authority FNS is required to review and 
approve State agencies' E&T plans and budgets. Through this process, 
FNS ensures that individual components are structured to meet the needs 
of participants and that the reporting measures for individual 
components with more than 100 projected participants required by this 
rule are appropriate to measure the impact of the components on 
participants.
    The interim final rule under 7 CFR 273.7(c)(16) established that 
FNS may require a State agency to make modifications to its SNAP E&T 
State Plan to improve outcomes if FNS determines that the E&T outcomes 
are inadequate.
    Two commenters provided remarks on the Department's monitoring, 
evaluating, and assessing of States' E&T programs. One commenter stated 
that they were concerned the rule discussed consequences for inadequate 
performance without any indication as to how performance expectations 
would be set and what would be considered inadequate. Another commenter 
stated that the final rule should address how the Department would 
monitor State E&T programs, assess their effectiveness, and determine 
that the State agencies' E&T outcomes are inadequate. The commenter 
asked what standards the Department will use to determine differential 
performances across States.
    The Department appreciates the comments. As stated previously, 
section 16(h)(5)(A) of the Act charges the Department with the 
responsibility to assess the effectiveness of E&T programs in preparing 
members of SNAP households for employment, including the acquisition of 
skills necessary for employment, and increasing the number of household 
members who obtain and retain employment subsequent to participation in 
E&T programs. Section 16(h)(5)(C) of the Act also requires the 
Department to evaluate State agencies' E&T programs on a periodic basis 
to ensure compliance with Federal E&T program rules and regulations; 
that program activities are appropriate to meet the needs of 
individuals referred by the State agency to an E&T program; and that 
reporting measures are appropriate to identify improvements in skills, 
training, work experience for participants in an employment and 
training program component. As mentioned previously, the interim final 
rule under 7 CFR 273.7(c)(16) established that FNS may require a State 
agency to make modifications to its SNAP E&T State Plan to improve 
outcomes if FNS determines that the E&T outcomes were inadequate. When 
the Department's oversight responsibilities for the assessment of 
effectiveness of E&T programs is considered, the Department believes 
that the term `outcomes' may be mistakenly assumed to refer only to the 
reporting measures rather than to outcomes of the overall assessment of 
E&T programs' effectiveness. The reporting measures from the E&T Annual 
Report are just one tool the Department will utilize to assess the 
effectiveness of a State agency's E&T program. Other information the 
Department will also use includes, but is not limited to, E&T State 
Plans, E&T Program Activity Reports (FNS-583), and ME reviews. Because 
State agencies have great flexibility in the design of their E&T 
program, in terms of targeted population, location of services, range 
of components, as well as differing labor

[[Page 90560]]

markets, the Department does not intend to set a benchmark or a 
threshold for inadequate performance but will rather assess and 
evaluate each State agency, taking into consideration attributes of a 
State's E&T program. As discussed further in this section the 
Department is developing a framework for assessing State's E&T 
programs. The attributes of a State's E&T program, such as targeted 
populations and differing labor markets is considered within the design 
of the framework. The Department does not believe it necessary to 
include these attributes in the regulations. However, to provide 
transparency and clarity, the Department is modifying the regulatory 
text at 7 CFR 273.7(c)(16) to include the sources of information the 
Department will use to determine the effectiveness of a State's E&T 
program, such as E&T State Plans, ME reviews, E&T Program Activity 
Reports, E&T Annual Reports and other factors the Department determines 
appropriate to the assessment. The Department is also amending this 
section to stipulate FNS' responsibility to assess that program 
activities are appropriate to meet the needs of individuals referred by 
the State agency to an E&T program.
    One commenter stated they appreciated that the Department would 
consider unemployment rates together with other important factors when 
looking at the unique challenges SNAP E&T participants face. The 
commenter encouraged the Department to consider a broad array of labor 
market indicators, including the Bureau of Labor Statistics alternative 
measures of labor market underutilization. They noted that labor market 
demand, not only a mismatch of skills to available jobs, is a key 
driver of the unemployment and underemployment problems many SNAP 
participants face. One commenter stated that it is critical that any 
attempt to use long-term data to determine the efficacy of an E&T 
program take into consideration any external influences that may have 
an impact on the job retention of an E&T participant but is not caused 
by the overall effectiveness of the training services received from an 
E&T vendor. This caution will ensure that States, stakeholders, and 
advocates are focusing on variables that are within the control of the 
E&T program, and not those that are outside the program's control. The 
Department appreciates the comments and agrees that when evaluating the 
effectiveness of State's E&T programs, external factors, such as the 
alternative measures of labor market underutilization, are important to 
consider when looking at the challenges SNAP E&T participants face. As 
previously mentioned, the Department is adding regulatory text to 7 CFR 
273.7(c)(16) to clarify the information the Department will use in 
evaluating the effectiveness of States' E&T programs.
    Currently, under 7 CFR 273.7(c)(16), FNS may require a State agency 
to make modifications to its SNAP E&T State Plan to improve outcomes if 
FNS determines that the E&T outcomes were inadequate. FNS will evaluate 
the effectiveness of SNAP E&T programs in several categories, such as 
intentional program design, integrated eligibility, deliberate program 
operations, and meaningful outcomes. FNS is amending 7 CFR 273.7(c)(16) 
to reflect these considerations. FNS will develop a framework with more 
detail which will be issued in guidance but anticipates each assessment 
category will contain various factors that may influence how effective 
programs are administered. For example, under deliberate program 
operations, factors may include component availability, component 
utilization, and whether the components offered are appropriate to 
meets the needs of the State's targeted population. One factor alone 
will not indicate whether a State's program is effective, but all the 
factors when viewed in their totality will provide a roadmap for needed 
areas of improvement. This assessment is not intended to provide a 
benchmark or performance target. Nor is the assessment intended to 
compare one State's E&T program against another. Rather, when 
determining effectiveness, FNS will consider whether the State's E&T 
program is designed and implemented with the purpose of meeting the 
needs of SNAP participants and assisting participants in gaining the 
skills necessary to obtain and retain employment.
    If through this effectiveness assessment of a State's E&T program, 
which includes, but is not limited to information collected through ME 
reviews and corrective action plans, and program activity reports, the 
State is found to have inadequate outcomes, such as inappropriate 
components for the targeted population the State serves in E&T, FNS 
will provide technical assistance to the State agency and make 
recommendations for modifications to the State's E&T State Plan. 
Depending upon the impact of the inadequate outcome on E&T 
participants, such as a high rate of individuals being deemed 
ineligible for SNAP benefits due to failure to comply with E&T 
requirements, FNS may require State agencies to amend their plan within 
that FFY. For other instances the State agency may be required to make 
the necessary modifications no later than in the E&T State Plan 
submitted for the next FFY. E&T State Plans are due at least 45 days 
before the start of a FFY as provided under 7 CFR 273.7(c)(8). The 
Department is modifying the regulation under 7 CFR 273.7(c)(16) to 
clarify that the modifications must be made before FNS will approve 
State E&T Plans.
    As a consequence for a State agency's failure to modify their E&T 
State Plan according to the recommendations by FNS to improve the 
effectiveness of the State's E&T program, FNS will employ the current 
authorities provided in the regulations under 7 CFR 272.2(e) to deny 
the State agency's E&T plan and under 7 CFR 273.7(d)(1)(ii)(B) that 
states a State agency's receipt of its 100 percent Federal E&T grant is 
contingent on FNS' approval of the State agency's E&T plan. This 
regulation further stipulates that non-receipt of an E&T grant does not 
release a State agency from its responsibility to design and operate an 
E&T program. Additionally, FNS will follow the procedure provided under 
7 CFR 276.4 regarding suspension and disallowance of administrative 
funds due to FNS determination of the efficiency and effectiveness of 
State agencies administration of SNAP. Under this process, FNS will 
provide advance warning to the State agency that their failure to 
modify their E&T State Plan can result in FNS rescinding the prior 
approval of the State agency's E&T State Plan and the State agency may 
be at risk of having administrative funds, including the 100 percent 
E&T Federal grant and E&T 50 percent reimbursement funds, suspended or 
disallowed until the State comes into compliance.

Procedural Matters

Executive Order 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 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility.
    This final rule has been determined to be significant under 
Executive Order 12866, as amended by Executive Order

[[Page 90561]]

14094, and was reviewed by the Office of Management and Budget (OMB) in 
conformance with Executive Order 12866.

Summary of Total Cost Impacts

    A regulatory impact analysis must be prepared for regulatory 
actions that are significant as defined by section 3(f)(1) of E.O. 
12866, as amended by E.O. 14904. This final rule does not meet the 
definition of significant under section 3(f)(1) of E.O. 12866, as 
amended, and therefore the Department has prepared an economic summary 
of the rule, rather than a regulatory impact analysis.
    This final rule makes changes to the interim final rule (IFR) 
published by the Department on March 24, 2016, and made effective May 
23, 2016. The Department expects several of the final rule provisions 
to impact FNS or State administrative costs. This final rule is not 
expected to impact SNAP participants' benefit levels and is expected to 
minimally impact household burden. For this economic analysis, the 
Department compares the final rule's costs and savings to a pre-IFR 
baseline of burden costs, in addition to the currently approved 
information collection request (ICR) which already incorporates 
activities of the IFR since it was updated in 2022 (OMB #0584-0614, 
approved from December 29, 2022, through December 31, 2025). As such, 
comparisons to the current ICR indicate changes in burden caused by the 
final rule compared to the IFR.
    The following provisions are expected to have measurable impacts:
    Final rule provisions that are unchanged from the interim final 
rule (IFR): These provisions represent a change from the pre-IFR 
baseline, but no change from the burden hours estimated under the IFR's 
provisions and the currently approved ICR.
     7 CFR 273.7(c)(6)(xviii) requires State agencies to 
identify component measures in their E&T Plans.
     7 CFR 273.7(c)(17)(i)(A)-(C) requires State agencies to 
report on employment and earnings measures in an E&T Annual Report, 
renumbered in this final rule.
     7 CFR 273.7(c)(17)(vi) requires State agencies to report 
the component measures identified in its E&T Plan, renumbered in this 
final rule.
     7 CFR 273.7(c)(17)(vii) requires ABAWD pledge States that 
have received additional allocation funds to report information 
regarding the use of those funds, renumbered in this final rule.
     7 CFR 272.1(f) mandates E&T Annual Report recordkeeping 
requirements.
    Final rule provisions that are revised or newly added: These 
provisions represent a change from the pre-IFR baseline and from the 
burden hours estimated under the IFR's provisions in the currently 
approved ICR.
     7 CFR 273.7(c)(17)(ii)(A)-(B) requires State agencies to 
report on educational measures in an E&T Annual Report.
     7 CFR 273.7(c)(17)(iii) requires State agencies to report 
on seven participant characteristics, a change from the four 
characteristics required in the IFR, for the employment and earnings 
measures and educational measures in 273.7(c)(17)(i) through (ii).
     7 CFR 273.7(c)(17)(v) modifies the reporting requirements 
for E&T participant characteristics established by the IFR to include 
race and/or ethnicity.
     7 CFR 273.7(c)(17)(iv) removes the IFR requirement for 
State agencies to report measures on completion of education, training, 
work experience, and on-the-job training. Additionally, the final rule 
adds required reporting for State agencies that serve mandatory E&T 
participants, which was not included in the IFR.
    Below, table 1 provides a summary of the total effects of all 
provisions in the final rule, compared to the pre-IFR baseline. The 
Baseline column shows the annual costs for each final rule provision, 
prior to implementation of the IFR. The columns with FY headers show 
the effects of the final rule in that specific fiscal year. FY 2026 is 
the first implementation year and the first year in which the discount 
rate is applied. As noted previously, there are no anticipated impacts 
on SNAP benefit payments to households (transfers) and nominal burden-
related costs to SNAP households. The cost for State agencies to 
conduct ongoing E&T program reporting and recordkeeping over five years 
(FY 2026 through FY 2030) is $4.33 million. The cost for Federal (FNS) 
staff to review and analyze the E&T outcome data provided by State 
agencies over five years is about $50,100. The total combined cost to 
State and Federal governments over five years, compared to pre-IFR 
policy, is approximately $4.38 million. All costs, except for those in 
discounted cost impact rows of table 1, are adjusted annually for 
inflation using the Consumer Price Index for Uban Wage Earners and 
Clerical Workers (CPI-W) fiscal year-over-fiscal year projections from 
OMB's Economic Assumptions for the FY 2025 Midsession Update.

                     Table 1--Summary of Total Cost Impacts, Compared to Pre-IFR Baseline *
                                      [Adjusted annually for inflation **]
----------------------------------------------------------------------------------------------------------------
                                   Pre-IFR                                                              5-Year
                                Baseline: ***   FY 2026    FY 2027    FY 2028    FY 2029    FY 2030      total
----------------------------------------------------------------------------------------------------------------
Costs Due to State Agency
 Burden (in 000s):
    Identifying State                      $0       $8.8       $9.1       $9.3       $9.5       $9.7       $46.3
     component measures......
    Reporting employment and                0      265.4      271.5      277.8      284.2      290.7     1,389.5
     earnings measures.......
    Reporting State component               0       88.5       90.5       92.6       94.7       96.9       463.2
     measures................
    Additional reporting for                0        8.3        8.5        8.7        8.9        9.1        43.7
     ABAWD pledge States.....
    E&T Annual Report                       0        4.4        4.5        4.6        4.7        4.8        23.2
     recordkeeping...........
    Reporting educational                   0      353.9      362.0      370.4      378.9      387.6     1,852.7
     measures................
    Reporting 7 participant                 0       44.2       45.3       46.3       47.4       48.4       231.6
     characteristics for
     measures................
    Reporting E&T participant               0       44.2       45.3       46.3       47.4       48.4       231.6
     characteristics.........
    Mandatory E&T program                   0        8.3        8.5        8.7        8.9        9.1        43.7
     reporting...............
                              ----------------------------------------------------------------------------------
        Total................               0      826.2      845.2      864.6      884.5      904.8     4,325.5
Discounted Cost Impact (in
 000s):
    7 percent................               0      768.4      768.4      768.4      768.4      768.4     3,841.9
    3 percent................               0      801.4      801.4      801.4      801.4      801.4     4,007.1
Costs Due to Federal Burden
 (in 000s):
    Reviewing and analyzing                $0        9.6        9.8       10.0       10.2       10.5        50.1
     E&T outcome data........
Discounted Cost Impact:
    7 percent................              $0        8.9        8.9        8.9        8.9        8.9        44.5
    3 percent................               0        9.3        9.3        9.3        9.3        9.3        46.4
----------------------------------------------------------------------------------------------------------------
* Totals may not sum due to rounding.

[[Page 90562]]

 
** Estimates (excluding those in the discounted cost impact rows) were adjusted for inflation using BLS' CPI-W,
  from the Office of Management and Budget's Economic Assumptions in the FY 2025 Midsession Update.
*** Prior to the IFR taking effect on May 23, 2016.

    The final rule's provisions will result in substantial benefits for 
FNS, State SNAP E&T programs, and SNAP E&T participants. Currently, 
research on the effects of SNAP E&T is limited and participant outcomes 
have not been quantified on a large scale. The improved reporting 
requirements finalized in this rule will allow FNS and State agencies 
to better measure and monitor the effectiveness of E&T programs and 
strategically improve those programs. FNS can use these data to assess 
which practices work well in SNAP E&T and share those best practices 
across State agencies. The final rule also allows FNS to require State 
agencies to modify their E&T State Plan if the data show inadequate 
outcomes in their E&T program. By improving E&T programs, participants 
will be better prepared for employment by acquiring the necessary 
skills to obtain and retain employment upon completion of E&T.
    FNS expects State agencies will not incur implementation costs in 
excess of those incurred as a result of the IFR. The implementation 
costs associated with this final rule include one-time costs for 
developing new or modifying existing data collection systems for E&T 
programs. FNS expects State agencies will incur a small increase in 
recurring burden costs in excess of those incurred as a result of the 
IFR. We estimate an increase of 740 total hours from the burden hours 
included in the currently approved ICR due to the addition of reporting 
on educational measures and State agencies that serve mandatory E&T 
participants. As a result, annual State E&T reporting and recordkeeping 
will cost an additional $61,764 per year in FY 2026 dollars,\14\ 
compared to the estimated costs in the current ICR. However, the 
Department acknowledges that there are uncertainties which could affect 
State burden (see Uncertainties section). Compared to a pre-IFR 
baseline, ongoing State agency burden as a result of the final rule are 
estimated to be approximately 186.8 hours per State, or 9,899 total 
hours annually.
---------------------------------------------------------------------------

    \14\ Based on a $57.92 median hourly wage for Computer and 
Information Systems Managers (11-3021) in May 2023 and multiplied by 
1.33 for a fully loaded wage of $77.03. Base wage derived from BLS 
Occupational Employment and Wage Statistics data (found here: 
https://www.bls.gov/oes/current/naics4_999200.htm#11-0000) and 
inflated using OMB's FY 2025 Mid-Session CPI-W projections in future 
years.
---------------------------------------------------------------------------

    The Department funds SNAP E&T programs through E&T grants and 
additional grants for State agencies that pledge to serve all 
individuals who are subject to the SNAP work requirement for able-
bodied adults without dependents (ABAWDs) and are at-risk of losing 
eligibility due to time-limited participation. The Department allocates 
these funds annually to State agencies based on the percentage of work 
registrants and time-limited participants in each State. State agencies 
may use their 100-percent federally funded E&T grants to pay for all 
costs associated with the implementation of this final rule. As such, 
the Department estimates the net cost to State agencies for these 
activities will be $0. However, the Federal government will provide 50-
percent reimbursement for administrative costs that exceed the State 
agencies' E&T grants.\15\
---------------------------------------------------------------------------

    \15\ Due to the uncertainties around States' decisions to use 
their E&T grants to fully fund implementation of this rule, the 
Department cannot quantify costs to the Federal government with more 
specificity.
---------------------------------------------------------------------------

State Agency Implementation Costs

    State agencies may find it necessary to implement system 
modifications to report on new measures that were not required in the 
IFR, including educational measures and mandatory E&T program measures. 
However, the Department estimates the new measures will not add to the 
overall implementation burden costs associated with the IFR included in 
the currently approved ICR (see table 2, below). This assumes that 
State agencies would rely on government entities with which they 
already have data matching or sharing agreements, but may need to 
renegotiate those agreements, such as with State Unemployment Insurance 
agencies for the matching of quarterly wage records, as well as other 
existing sources to obtain administrative data, including SNAP 
eligibility systems. The Department acknowledges that the actual number 
of hours to implement this final rule will vary by State agency (see 
Uncertainties section).
    According to the Bureau of Labor Statistics data at time of 
analysis, the fully loaded median hourly rate for functions performed 
by State agency workers for SNAP is $77.03 in 2023 dollars.\16\ Using 
this hourly rate and CPI-W projections from OMB to adjust for 
inflation, the one-time implementation costs associated with all 
provisions in the final rule, in comparison to the pre-IFR baseline, 
will total an estimated $2.3 million in FY 2026.
---------------------------------------------------------------------------

    \16\ Based on a $57.92 median hourly wage for Computer and 
Information Systems Managers (11-3021) in May 2023 and multiplied by 
1.33 for a fully loaded wage of $77.03. Base wage derived from BLS 
Occupational Employment and Wage Statistics data (found here: 
https://www.bls.gov/oes/current/naics4_999200.htm#11-0000).

                                                              Table 2--Implementation Costs
                                                                   [In FY2026 dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               Total annual       Total annual
                  Number of respondents                       Hours per        burden hours       burden hours     Difference  (IFR-    Total  start-up
                                                               response           (IFR)           (final rule)        final rule)            costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
53.......................................................             520             27,560             27,560                    0         $2,300,278
--------------------------------------------------------------------------------------------------------------------------------------------------------

State Agency Ongoing Costs and Savings

    The Department notes that States will be permitted to cover the 
burden-related costs associated with this final rule with 100-percent 
federally funded E&T grants. Therefore, the Department does not expect 
State agencies to directly incur ongoing costs because of the final 
rule. All costs in this section are in FY 2026 dollars and are expected 
to increase annually due to inflation.
    Provisions that are unchanged from the interim final rule (IFR) to 
the final rule: Burden hours identified in this section are included in 
the currently approved ICR and are unchanged by the final rule. Costs 
noted in this section are relative to the pre-IFR baseline.
    Identifying State component measures in E&T State Plan. State 
agencies are

[[Page 90563]]

required to identify in their E&T State Plan an outcome reporting 
measure for every component that serves at least 100 participants 
annually. Each State SNAP agency is estimated to spend two hours 
annually to identify component measures (106 total hours, annually), 
with a total annual cost of $8,847. There is no change in burden hours 
from the currently approved ICR.
    Reporting employment and earnings measures. State agencies are 
required to report on employment and earnings measures for E&T 
participants and former participants in their E&T Annual Report. Fifty-
three State agencies are expected to spend 60 hours annually to report 
these measures (3,180 total hours, annually), with a total annual cost 
of $265,417. There is no change in burden hours from the currently 
approved ICR.
    Reporting State component measures: State agencies are required to 
report component measures for E&T components serving at least 100 
participants a year. Each State agency is expected to spend 20 hours 
per year on this requirement (1,060 total burden hours, annually), with 
a total annual cost of $88,472. There is no change in burden hours from 
the currently approved ICR.
    Additional reporting for ABAWD pledge States. State agencies that 
have committed to offering at-risk ABAWDs participation in a qualifying 
activity and have received additional funds are required to report on 
the use of those funds. Ten State agencies \17\ are each expected to 
spend 10 hours on this requirement (100 total hours, annually), with a 
total annual cost of $8,346. There is no change in burden hours from 
the currently approved ICR.
---------------------------------------------------------------------------

    \17\ The estimation of 10 ABAWD pledge States is based on the 
average number of participating States prior to the COVID-19 Public 
Health Emergency.
---------------------------------------------------------------------------

    Recordkeeping for E&T Annual Report: State agencies are required to 
conduct recordkeeping for the E&T Annual Report. Each State agency is 
expected to spend one hour on this task per year (53 total hours, 
annually), with a total annual cost of $4,424. There is no change in 
burden hours from the currently approved ICR.
    Provisions that are revised or new in the final rule: Costs and 
savings identified in this section differ from those caused by the IFR, 
which are included in the currently approved ICR. Costs and savings in 
this section are discussed relative to the currently approved ICR and 
the pre-IFR baseline.
    New requirement to report educational measures, replacing 
requirement to report E&T annual measures in IFR. State agencies will 
be required to report on new educational measures for attainment of a 
credential or certificate and measurable skill gains for all E&T 
participants enrolled in education or training programs. These measures 
align with Workforce Innovation and Opportunity Act (WIOA) programs and 
replace the previous reporting measures in the IFR that required State 
agencies to report on completion of education, training, work 
experience, and on-the-job training. Each of the 53 State agencies are 
expected to spend 80 hours annually reporting these measures (4,240 
total hours, annually) with a total annual cost of $353,889. Because 
the reporting requirements that are being replaced represent 3,600 
total burden hours in the currently approved ICR, this change in the 
final rule results in a net increase of 640 annual burden hours and a 
net annual cost increase of $53,417.
    Modified requirement to report participant characteristics for 
reporting measures. State agencies are required to report on four 
participant characteristics for each employment, earnings and 
educational measures under the IFR. The final rule adds three 
additional participant characteristics for the reporting measures: race 
and/or ethnicity, and mandatory E&T participants deemed ineligible due 
to failure to comply with mandatory E&T. Each State agency is expected 
to spend 10 hours annually on this requirement (530 total burden hours, 
annually), with a total annual cost of $44,236. The requirement to 
report on four participant characteristics, which has become seven 
characteristics in this final rule, was previously included with 
another requirement in the IFR (See Modified requirement to report E&T 
participant characteristics, in the next paragraph of this section). 
That requirement was approved for a total of 1,060 burden hours in the 
currently approved ICR. The 530 total burden hours for this requirement 
were transferred from those 1,060 burden hours and do not reflect new 
burden hours.
    Modified requirement to report E&T participant characteristics. The 
final rule is adding race and/or ethnicity to the list of E&T 
participant characteristics that State agencies are required to report 
as established in the IFR. Each of the 53 State agencies are expected 
to spend 10 hours annually on this requirement, with a total cost of 
$44,236 annually. State agencies were previously expected to spend 20 
hours on this requirement under the currently approved ICR because it 
included the required reporting on four participant characteristics for 
reporting measures. However, this participant characteristics reporting 
requirement has been modified to seven participant characteristics and 
renumbered in the final rule (see Modified requirement to report seven 
participant characteristics for reporting measures in this section). 
Ten of the allotted 20 burden hours for this provision were transferred 
to the seven participant characteristics reporting requirement. 
Therefore, this modified requirement does not result in an overall 
change in annual burden hours compared to the currently approved ICR.
    New requirement for mandatory E&T program reporting. State agencies 
that serve mandatory E&T participants will be required to report on the 
number of SNAP participants who were required to participate in E&T and 
were referred to E&T, and the number and percentages of SNAP 
participants who were deemed ineligible for failure to comply with E&T 
requirements. This is a new provision that was not included in the IFR. 
Each State agency that serves mandatory E&T participants is expected to 
spend 10 hours implementing this new requirement. On average, 10 State 
agencies serve mandatory E&T participants (resulting in 100 total 
burden hours, annually), with a total annual cost of $8,346.

Annual Federal Government Cost

    FNS National Office employees must review and analyze the outcome 
data provided by State agencies as required by this final rule. An FNS 
National Office analyst at a GS-13 Step 5 level is expected to spend 
two hours to review each of the 53 State agencies' outcome data once 
per year for a total annual cost of $9,480, compared to the pre-IFR 
baseline.\18\ It is also estimated that an FNS National Office analyst 
at the GS-14 Step 1 level will spend one hour reviewing and approving 
the information, for a total annual cost of $93.25. The combined 
Federal costs associated with FNS review and analysis of E&T outcome 
data is $9,573 in FY 2026 dollars. The final rule does not cause a 
change in Federal burden hours compared to the currently approved ICR.
---------------------------------------------------------------------------

    \18\ Based on fully loaded wage (multiplied by 1.33) in FY 2024. 
Hourly wage rates available here: https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2024/DCB_h.pdf.
---------------------------------------------------------------------------

Annual Household Administrative Burden

    The Department estimates that household burden due to the final 
rule will be minimal. A small number of E&T participants may face 
additional

[[Page 90564]]

reporting burden due to the need to contact these individuals to track 
outcomes. However, the Department expects State agencies to bear the 
primary burden of tracking and reporting E&T outcomes. The final rule 
does not cause a change in annual household administrative burden 
compared to the currently approved ICR.

Uncertainties

    There is considerable variation in the size and scope of States' 
E&T programs. There is also significant variation in the structure and 
functionality of SNAP E&T data systems and State SNAP eligibility 
systems. This variability makes it difficult to anticipate the changes 
that State agencies might need to make to collect and report the 
required outcome data. For these estimates, the Department assumed that 
State agencies use a combination of methods to collect data, including 
using existing automated systems data, collecting new data, and 
collecting data for a sample of participants. Although the exact 
methods State agencies use could affect the cost, the Department 
expects that the total cost of the final rule will be minimal.
    Additionally, there is uncertainty regarding how State agencies 
will fund costs associated with State agency burden hours in this final 
rule. State agencies will be able to use their 100-percent federally 
funded E&T grants to pay for all costs associated with this rule, so 
the Department anticipates that the net cost to State agencies will be 
$0. However, State agencies may choose not to use their E&T grant funds 
or to use only a portion of the funds, in which case they would incur 
administrative expenses.

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 final rule would not have an 
impact on small entities because the provisions of this final rule 
apply to State agencies, which are not small entities as defined by the 
Regulatory Flexibility Act.

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 meeting the criteria in 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 final 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.)

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 final 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 final rule, in accordance with the Department 
Regulation 4300-004, ``Civil Rights Impact Analysis'' to identify and 
address any major civil rights impacts the final rule might have on 
minorities, women, and persons with disabilities. FNS specifically 
prohibits the State and local government agencies that administer the 
Program from engaging in actions that discriminate based on race, color 
national origin, sex (including gender identity and sexual 
orientation), religious creed, age, disability, and political beliefs. 
SNAP's nondiscrimination regulation can be found at 7 CFR 272.6(a). The 
final rule does not change these requirements. The final rule will 
require State agencies to collect and report outcome data on SNAP E&T 
programs and will not change work requirements or impact the population 
subject to work requirements. FNS will provide implementation guidance 
to State agencies through webinars or policy meetings for State 
agencies requesting technical assistance. FNS will also assist State 
agencies in improving the collection and analysis of State E&T data 
systems. FNS will provide information to program stakeholders, 
including State agencies and the general public, using a variety of 
communication methods: in-person, written and electronic, including 
ensuring that program information is generally available in multiple 
languages, and new materials on FNS' websites are compliant with 
section 508 of the Rehabilitation Act of 1973.

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

[[Page 90565]]

between the Federal Government and Indian Tribes, or on the 
distribution of power and responsibilities between the Federal 
Government and Indian Tribes. This rule will not 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. Thus, Executive Order 13175 does not 
apply to this action.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. Chap. 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.
    In accordance with the Paperwork Reduction Act of 1995, this final 
rule will contain information collections that are subject to review 
and approval by the Office of Management and Budget; therefore, FNS is 
submitting for public comment the changes in the information collection 
burden that would result from adoption of the proposals in this final 
rule.
    Comments on this final rule must be received by January 17, 2025. 
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 notice will be summarized and included in the 
request for OMB approval. All comments will also become a matter of 
public record.
    Title: SNAP: Employment and Training Program Performance 
Measurement, Monitoring and Reporting Requirements
    OMB Number: 0584-0614.
    Form Number: Not Applicable.
    Expiration Date: December 31, 2025.
    Type of Request: Revision of a currently approved collection.
    Abstract: As required by the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507(d)), FNS is submitting this information collection to OMB 
for its review and approval. The final rule will require State agencies 
to collect and report annually on: (1) the number and percentage of all 
E&T participants who are in unsubsidized employment during the second 
and fourth quarters after completion of participation in E&T; (2) 
Median quarterly wages of the E&T participants who are in unsubsidized 
employment during the second quarter after completion of participation 
in E&T; (3) educational measures for attainment of credential or 
certificates and measurable skill gains for all E&T participants 
enrolled in education or training programs; (4) employment, earnings 
and educational measures for each of seven unique participant 
characteristics; (5) certain unique characteristics of all E&T 
participants that participate in E&T during the preceding Federal 
fiscal year.
    The final rule also requires State agencies to identify in the 
annual E&T State Plan appropriate reporting measures for each proposed 
component that is projected to serve a threshold of at least 100 
participants a year and report on those measures in the E&T Annual 
Report. Additionally, the final rule requires that State agencies that 
have committed to offering all ABAWDs at risk of losing eligibility due 
to time-limited participation a slot in a qualifying activity and have 
received an additional allocation of funds, to report information 
regarding the use of those funds.
    The information collection for the SNAP E&T Performance 
Measurement, Monitoring and Reporting Requirements is currently 
approved under OMB Control No. 0584-0614, expiration date December 31, 
2025. The changes made to this information collection because of the 
final rule is described below. Once OMB approves the information 
collection request associated with this final rulemaking activity, the 
agency will publish a separate notice in the Federal Register 
announcing OMB approval.
    Change from Interim Final Rule: The interim final rule established 
a reporting measure for the completion of an educational, training, 
work experience or on-the-job training component under 7 CFR 
273.7(c)(17)(iv). The final rule removes and replaces this measure with 
two educational measures under the renumbered 7 CFR 273.7(c)(17)(ii).
    The interim final rule required State agencies to disaggregate each 
of the reporting measures by four key participant characteristics under 
7 CFR 273.7(c)(17)(vi). The final rule removes this disaggregation 
requirement and under the renumbered 7 CFR 273.7(c)(17)(iii) requires 
the State agencies to report the reporting measures of employment, 
earnings and educational measures for each of the key participant 
characteristics, including two additional key participant 
characteristics for race and/or ethnicity and mandatory E&T 
participants deemed ineligible due to failure to comply with mandatory 
E&T.
    The interim final rule required State agencies to report the number 
and percentage of all E&T participants that participated during the 
reporting fiscal year for seven (7) participant characteristics under 7 
CFR 273.7(c)(17)(v). The final rule modifies this requirement by adding 
race and/or ethnicity to the participant characteristics to be 
reported.
    The final rule under 7 CFR 273.7(c)(17)(iv) adds additional 
reporting requirements for State agencies that serve mandatory E&T 
participants.
    The Department received some comments on the cost and hour burden, 
as well as comments related to the underlying policy. One commenter 
noted that the regulations require several data elements that some 
State agencies currently do not collect that may require system 
implementation costs, including one-time capital costs, additional 
reporting costs for collecting and creating the required reporting 
measures and ongoing costs for operating and maintaining those system. 
The commenter suggested that the final regulations should explain how 
the Department determined that the interim rule did not meet the $100 
million threshold that would subject the regulation to the Federal 
Unfunded Mandates Reform Act (UMRA). The commenter also suggested that 
the final regulations should state the amount of additional funds the 
Department would make available to States to pay for these 
implementation costs. The Department appreciates the comment and would 
note that in determining the cost to implement the Department 
considered the analysis conducted of FY 2013 State agency E&T State 
Plans that indicated that thirty-six State agencies tracked the number 
of E&T participants that enter employment. The Department anticipated 
that some of the system implementation costs, including the one-time 
capital costs and the ongoing costs for collecting and reporting, could 
be paid for using the existing Federal grant funds States receive to 
operate E&T and that State funds in excess of

[[Page 90566]]

those grant funds are reimbursed at a 50 percent rate by the Federal 
government.
    One State agency believed, based on their experience, that the 
burden estimate for rule implementation was underestimated by the 
Department. They noted that they had recently completely redesigned 
their E&T data system that resulted in 14,577 hours of contractor time 
and 9,400 hours of State agency staff time totaling approximately $1.5 
million. The commenter estimated that modifications to implement the 
new reporting requirements would require at least 4,000 hours of 
contractor time and 2,600 hours of State staff for an estimated cost of 
approximately $546,000. The commenter believes that other States would 
likely need to invest a similar amount of time and money to comply with 
the new reporting requirements. The Department appreciates the 
commenter's experience in redesigning their E&T data system, the 
Department does not believe that this same experience would be borne by 
other State agencies, due to the different size and complexity of 
States' E&T programs. In determining the initial reporting and 
recordkeeping burden estimate, the Department relied on the analysis 
that indicated thirty-six State agencies had identified reporting 
measures and collected outcome data and that the remaining States would 
need to develop systems to collect and report the required data. The 
Department considered that in the first year that the interim final 
rule was published, State agencies would need to develop E&T data 
collection systems, modify existing system, or build interfaces between 
SNAP eligibility and SNAP E&T data collection systems. Several of the 
measures, such as employment, earnings, characteristics of E&T 
participants, State agencies could use a variety of sources to obtain 
administrative data, such as SNAP eligibility systems. The Department 
also anticipates that some State agencies would rely on government 
entities with which they already had agreements and would need to 
renegotiate those agreements, such as with State's UI agencies for the 
matching of quarterly wage records.
    One State agency stated that they estimated that ongoing reporting 
and maintenance would total 1,500 hours and that the Department's 
estimated burden of 231 hours is far below what States would need to 
spend in ongoing maintenance efforts. This State agency also stated 
that the burden for reporting participants who complete an educational 
or training program six months after completing the E&T program was 
underestimated by the Department. The commenter noted that they do not 
currently track completion of education or training programs, and this 
would require a manual process to contact participants six months after 
completing the E&T program. They estimate that this manual process 
would result in approximately 2,600 staff hours to collect a single 
data element and that this is not an efficient use of resources. The 
State agency acknowledged that the State's quarterly wage records could 
be used to report participant's employment and earnings after 
completion. However, they noted that not all individuals have wage 
information in this data source and that discrepancies in the Federal 
Employer Identification Number and self-employment contribute to the 
largest portion of unavailable wage matches for approximately 20 
percent of participants. For those cases, the commenter estimates that 
a manual process to gather quarterly earnings information would result 
in approximately 750 hours of staff time. Lastly, the State agency 
noted that they estimate the overall burden to collect and report the 
required information would be approximately 3,600 hours annually. They 
do not believe that this is an efficient use of resource for their 
State E&T program. The Department appreciates the comments and 
experience of this State agency. The Department again relied on the 
basis that a vast majority of State agencies already tracked E&T 
participants for various outcome measures, including obtainment of 
employment. The Department assumed that State agencies could use a 
combination of methods to collect the data including existing automated 
systems data, new data collection, and some contact with SNAP E&T 
participants. Further, the Department assumed that manual processes, 
such as contacting E&T participants would be minimal. As stated 
previously, given the variations of State's E&T programs, the 
Department does not believe the experience of this one State agency 
would equate into a similar experience by all State agencies.
    Respondents: State, local or Tribal governments.
    Estimated Number of Respondents: 53.
    Estimated Number of Responses per Respondent: One response per year 
for each State agency that administers the SNAP E&T program. State 
agencies will be required to report their outcome data annually.
    Estimated Total Annual Responses: 53.
    Estimated Time per Respondent: 25.32.
    Estimated Total Annual Burden Hours on Respondents: 9,899.
    Estimated Hourly Wage Rate (Fully-Loaded): $75.25.
    Estimated Total Annual Burden Cost on Respondents: $762,519.97.
    According to the Bureau of Labor Statistics as of May 2023, for 
Occupational Group (11-3021),\19\ has an hourly mean wage for functions 
performed by State agency workers for the SNAP program are estimated at 
$57.92 median hourly wage per staff. Including 33% for fringe benefits 
the fully loaded hourly rate per staff is estimated at $77.03 ($57.92 * 
33% = $19.11 + $57.92).
---------------------------------------------------------------------------

    \19\ https://www.bls.gov/oes/current/naics4_999200.htm#11-0000.

                           Estimated Initial Reporting and Recordkeeping Burden Hours
----------------------------------------------------------------------------------------------------------------
                                                                        Total         Number of         Total
               Description of activity                  Number of      annual       burden hours       burden
                                                       respondents    responses     per response        hours
----------------------------------------------------------------------------------------------------------------
One-time capital start-up and operating and                    53            53               520        27,560
 maintenance costs..................................
----------------------------------------------------------------------------------------------------------------


[[Page 90567]]


                                                    FNS SNAP ET Reporting Measures Reporting Estimate (OMB Control No. 0584-0614) Final Rule
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                   Total annual
                                                                                                   Number of    Frequency of      Total      Hours per     Annual    Hourly wage      cost of
       Respondent category         Type of respondent      Instruments             Form           respondents     response        annual      response     burden    rate (fully    respondent
                                                                                                                                responses                  (hours)     loaded)        burden
A                                 B..................  C.................  D...................             E               F    G = E x F            H   I = G x H            J       K = I x J
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
State/Local/Tribal Government...  State Agency Staff.  Identifying State   Not Applicable......         53.00            1.00        53.00            2      106.00       $77.03       $8,165.18
                                                        component
                                                        measures in E&T
                                                        State Plan under
                                                        7 CFR
                                                        273.7(c)(6)(xviii
                                                        ).
State/Local/Tribal Government...  State Agency Staff.  Reporting of        Not Applicable......         53.00            1.00        53.00           60    3,180.00        77.03      244,955.40
                                                        employment and
                                                        earnings measures
                                                        under renumbered
                                                        7 CFR
                                                        273.7(c)(17)(i)(A
                                                        )-(C).
State/Local/Tribal Government...  State Agency Staff.  ** NEW **           Not Applicable......         53.00            1.00        53.00           80    4,240.00        77.03      326,607.20
                                                        Reporting of
                                                        Educational
                                                        measures under
                                                        renumbered 7 CFR
                                                        273.7(c)(17)(ii)(
                                                        A)-(B).
State/Local/Tribal Government...  State Agency Staff.  ** REMOVED **       Not Applicable......          0.00            0.00         0.00            0        0.00        77.03            0.00
                                                        Reporting of SNAP
                                                        E&T Annual report
                                                        completion of
                                                        education,
                                                        training, work
                                                        experience or OJT
                                                        under ``old'' 7
                                                        CFR
                                                        273.7(c)(17)(iv).
State/Local/Tribal Government...  State Agency Staff.  ** REVISED **       Not Applicable......         53.00            1.00        53.00           10      530.00        77.03       40,825.90
                                                        Reporting of
                                                        Employment and
                                                        Earnings Measures
                                                        and Educational
                                                        Measures for 7
                                                        Participant
                                                        Characteristics
                                                        under renumbered
                                                        7 CFR
                                                        273.7(c)(17)(iii).
State/Local/Tribal Government...  State Agency Staff.  ** New **           Not Applicable......         10.00            1.00        10.00           10      100.00        77.03        7,703.00
                                                        Mandatory E&T
                                                        Program Reporting
                                                        under 7 CFR
                                                        273.7(c)(iv).
State/Local/Tribal Government...  State Agency Staff.  ** REVISED **       Not Applicable......         53.00            1.00        53.00           10      530.00        77.03       40,825.90
                                                        Reporting of E&T
                                                        Participant
                                                        Characteristics
                                                        under 7 CFR
                                                        273.7(c)(17)(v).
State/Local/Tribal Government...  State Agency Staff.  Reporting of State  Not Applicable......         53.00            1.00        53.00        20.00    1,060.00        77.03       81,651.80
                                                        Component
                                                        Measures under
                                                        renumbered 7 CFR
                                                        273.7(c)(17)(vi).
State/Local/Tribal Government...  State Agency Staff.  ABAWD Pledge        Not Applicable......         10.00            1.00        10.00        10.00      100.00        77.03        7,703.00
                                                        States Additional
                                                        Reporting under
                                                        renumbered 7 CFR
                                                        273.7(c)(17)(vii).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
    State Agency Reporting Burden Total........................................................         53.00            6.38       338.00        29.13    9,846.00        77.03      758,437.38
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                  FNS SNAP ET Reporting Measures Recordkeeping Estimate (OMB Control No. 0584-0614) Final Rule
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                   Total annual
                                                                                                   Number of    Frequency of      Total      Hours per     Annual    Hourly wage      cost of
       Respondent category         Type of respondent      Instruments             Form           respondents     response        annual      response     burden        rate       respondent
                                                                                                                                responses                  (hours)                    burden
A                                 B..................  C.................  D...................             E               F    G = E x F            H   I = G x H            J       K = I x J
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
State/Local/Tribal Government...  State Agency Staff.  SNAP E&T Annual     Not Applicable......         53.00            1.00        53.00         1.00       53.00       $77.03       $4,082.59
                                                        Report
                                                        recordkeeping
                                                        requirements
                                                        under 7 CFR
                                                        272.1(f).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 90568]]


                            FNS SNAP ET Reporting Measures ICR Burden Estimate Summary (OMB Control No. 0584-0614) Final Rule
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                           Total annual
                                                      Number of   Frequency of   Total annual    Hours per    Annual burden  Hourly wage      cost of
                                                     respondents    response       responses      response       (hours)         rate       respondent
                                                                                                                                              burden
                                                               A             B       C = A x B            D       E = C x D            F       G = E x F
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Reporting Burden.............................        53.00          6.38          338.00        29.13        9,846.00       $77.03     $758,437.38
Total Recordkeeping Burden.........................        53.00          1.00           53.00         1.00           53.00        77.03        4,082.59
Total Burden for #0584-0614........................        53.00          7.38          391.00        25.32        9,899.00        77.03      762,519.97
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Effect of State Agencies: The Department has estimated that the 
effect of State agencies will be two-fold. First a one-time capital 
cost for developing new or modifying existing data collection systems. 
And second, an annual reporting burden for collecting and reporting 
data for the required E&T Annual Report. States may also incur annual 
operating and maintenance costs for their data collection systems.
    Prior to Implementation: In the first year that the final rule is 
published, States may need to modify E&T data systems, or their 
processes for data collection relating to collecting educational 
reporting measures.

E-Government Act Compliance

    The Department is committed to complying with the E-Government Act, 
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, Food stamps, Grant 
programs-social programs.

7 CFR Part 273

    Administrative practice and procedures, Food stamps, Grant 
programs-social programs, Penalties, Reporting and recordkeeping.

    Accordingly, 7 CFR parts 271 and 273 are amended to read 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. Amend Sec.  271.2 by:
0
a. Adding in alphabetical order a definition for ``Completion of 
participation in E&T'';
0
b. Revising the definition of ``Employment and Training (E&T) 
participant'';
0
c. Adding in alphabetical order a definition for ``Former E&T 
participant''.
    The additions and revisions read as follows:


Sec.  271.2  Definitions.

* * * * *
    Completion of participation in E&T means that an E&T participant 
has not received any E&T services for at least 90 days and no future 
services are planned.
* * * * *
    Employment and Training (E&T) participant means an individual who 
meets the definition of a mandatory or voluntary participant who is 
referred to E&T and begins at least one part of an E&T program, 
including orientation, assessment, case management services or a 
component.
* * * * *
    Former E&T participant means an individual who is no longer 
participating in E&T services because the individual is no longer 
receiving SNAP benefits.
* * * * *

0
3. Amend Sec.  271.8 by adding an entry in the table for 
``273.7(c)(17)'' in numerical order to read as follows:


Sec.  271.8  Information collection/recordkeeping--OMB assigned control 
numbers.

------------------------------------------------------------------------
                                                            Current OMB
     7 CFR section where requirements are described         Control No.
------------------------------------------------------------------------
 
                                * * * * *
273.7(c)(17)............................................       0584-0614
 
                                * * * * *
------------------------------------------------------------------------

PART 273--CERTIFICATION OF ELIGIBLE HOUSEHOLDS

0
4. Amend Sec.  273.7 by revising paragraphs (c)(6)(xvii) and (c)(16) 
and (17) to read as follows:


Sec.  273.7  Work provisions.

* * * * *
    (c) * * *
    (6) * * *
    (xviii) For each component that is expected to include 100 or more 
participants, reporting measures that the State will collect and 
include in the annual report in paragraph (c)(17) of this section. Such 
measures may include:
    (A) The percentage and number of program participants who received 
E&T services and are in unsubsidized employment subsequent to the 
receipt of those services;
    (B) The percentage and number of participants who obtain a 
recognized credential, a registered apprenticeship, or a regular 
secondary school diploma (or its recognized equivalent), while 
participating in, or within 1 year after receiving E&T services;
    (C) The percentage and number of participants who are in an 
education or training program that is intended to lead to a recognized 
credential, a registered apprenticeship an on-the-job training program, 
a regular secondary school diploma (or its recognized equivalent), or 
unsubsidized employment;
    (D) Measures developed to assess the skills acquisition of E&T 
program participants that reflect the goals of the specific components 
including the percentage and number of participants who are meeting 
program requirements or are gaining skills likely to lead to 
employment; and
    (E) Other indicators approved by FNS in the E&T State Plan; and
* * * * *
    (16) FNS will assess the effectiveness of E&T programs in preparing 
E&T participants for employment, including obtaining of necessary 
skills and increasing the number of E&T participants who obtain and 
retain employment upon completion of participation in E&T. FNS will 
also assess that program activities are appropriate to meet the needs 
of individuals referred by the State agency to an E&T program. FNS may 
use all available information, including but not limited to, E&T State 
Plans, E&T Program Activity Reports, Annual Reports, and Management 
Evaluations. Based on this information, FNS will assess an E&T 
program's effectiveness across various categories including, but not 
limited to, intentional program

[[Page 90569]]

design, integrated eligibility, deliberate program operations and 
meaningful outcomes.
    (i) FNS may require a State agency to make modifications to its 
SNAP E&T plan to improve outcomes if FNS determines that the E&T 
outcomes are inadequate. FNS will consider these modifications in 
determining whether to approve a State's E&T plan.
    (ii) [Reserved]
    (17) The State agency shall submit an annual E&T report by April 15 
each year that contains the following:
    (i) Employment and Earnings Reporting Measures: State agencies 
shall report four consecutive quarters of data from the two previous 
Federal fiscal years ending the preceding September 30 for the 
following measures:
    (A) The number and percentage of E&T participants and former 
participants who are in unsubsidized employment during the second 
quarter after completion of participation in E&T.
    (B) Median quarterly earnings of the E&T participants and former 
participants who are in unsubsidized employment during the second 
quarter after completion of participation in E&T.
    (C) The number and percentage of E&T participants and former 
participants who are in unsubsidized employment during the fourth 
quarter after completion of participation in E&T.
    (ii) Educational Reporting Measures: State agencies shall report 
data for the Federal fiscal year ending the preceding September 30 for 
the following measures:
    (A) Attainment of a credential or certificate. The number and 
percentage of E&T participants enrolled in an education or training 
program, excluding those in on-the-job training, customized training or 
transitional jobs, who attain a recognized postsecondary credential, 
certificate or a secondary school diploma, or its recognized 
equivalent, during participation in or upon completion of participation 
in E&T.
    (B) Measurable skill gains. The number and percentage of E&T 
participants who, during the preceding Federal fiscal year, are in an 
education or training program that leads to a recognized postsecondary 
credential or employment and who are achieving measurable skill gains, 
defined as documented academic, technical, occupational, or other forms 
of progress, towards such a credential or employment.
    (iii) State agencies shall report the employment and earnings 
measures specified in paragraphs (c)(17)(i)(A) through (C) and 
educational measures specified in paragraphs (c)(17)(ii)(A) and (B) for 
each of following participant characteristics:
    (A) By Race and/or Ethnicity;
    (B) Voluntary E&T Participants;
    (C) Mandatory E&T Participants;
    (D) Mandatory E&T Participants deemed ineligible due to failure to 
comply with mandatory E&T;
    (E) E&T Participants who obtained high school diploma or 
equivalency prior to participation in E&T; and
    (F) ABAWDs.
    (iv) State agencies that serve mandatory E&T participants shall 
report for the Federal fiscal year ending the preceding September 30 
the following:
    (A) the unduplicated number of SNAP participants who were required 
to participate in E&T;
    (B) of those required to participate the unduplicated number and 
percentage referred to E&T; and
    (C) the unduplicated number and percentage of SNAP participants 
that were determined ineligible for failure to comply with E&T 
requirements.
    (v) The number and percentage of E&T participants for the Federal 
fiscal year ending the preceding September 30 who:
    (A) Are voluntary E&T participants;
    (B) Are mandatory E&T participants;
    (C) Have received a high school diploma or equivalent prior to 
being provided with E&T services;
    (D) Are ABAWDs;
    (E) Are English language learners;
    (F) By Gender identity;
    (G) Are within each of the following age ranges: 16-17, 18-35, 36-
49, 50-59, 60 or older; and
    (H) By Race and/or Ethnicity
    (vi) Reports for the measures identified in a State's E&T plan 
related to components that are designed to serve at least 100 
participants a year; and
    (vii) States that have committed to offering all at-risk ABAWDs 
participation in a qualifying activity and have received an additional 
allocation of funds as specified in paragraph (d)(3) of this section 
shall include:
    (A) The monthly average number of individuals in the State who meet 
the conditions in paragraph (d)(3)(i) of this section;
    (B) The monthly average number of individuals to whom the State 
offers a position in a program described in Sec.  273.24(a)(3) and (4);
    (C) The monthly average number of individuals who participate in 
such programs; and
    (D) A description of the types of employment and training programs 
the State agency offered to at risk ABAWDs and the availability of 
those programs throughout the State.
    (viii) States may be required to submit the annual report in a 
standardized format based upon guidance issued by FNS.
* * * * *

0
5. Amend Sec.  273.24 by adding paragraph (a)(4) to read as follows:


Sec.  273.24  Time limit for able-bodied adults.

    (a) * * *
    (4) Workfare program means:
    (i) A program under Sec.  273.7(m); or
    (ii) A comparable program established by a State or political 
subdivision of a State.
* * * * *

Tameka Owens,
Acting Administrator and Assistant Administrator, Food and Nutrition 
Service.
[FR Doc. 2024-26809 Filed 11-15-24; 8:45 am]
BILLING CODE 3410-30-P