Almost 12 million
food stamp customers have been
greatly affected by recent major
changes in the Food Stamp Program.
Because the program adds nearly
$1.5 billion to the economy of
46 States and the District of
Columbia, almost everyone else
is affected by these changes.
The new regulations implement
the bill that Congress
debated in late 1970 and the
President signed into law on
January 11, 1971 (P.L. 91-671)
amending the Food Stamp Act
of 1964. The new law provides
major reforms in the program,
among which are the following:
* Establishment of
uniform eligibility rules.
* Annual review of the
value of the food stamp
allotment to take into account
changes in retail food prices.
* Extension of authority
for program appropriations
through fiscal year 1973.
* A stamp allotment
sufficient to purchase a
nutritionally adequate diet
with the cost limited to
30 percent or less of household
income.
PROPERTY o:- ,
IRRARY
UI'IIVf:.n~ll Y uF 1\.vRl H
AT GREENSBORO
stamp
Based on "Food Stamp Changes Go Into Effect, "
printed in FOOD AND NUTRITON, October 1971.
FOOD AND NUTRITIOI1 SERVICE
iJ. S. DEPARTMENT OF AGRICULTURE
6peeCoct
w
ffl/
lJ,qt,
Fto
FC,~Jt/'10 * The requirement that ablelq1~
bodied persons, with exceptions,
register for and accept reasonable
job offers.
* Variable purchase requirements,
which enable eligibles to
buy less than full allotments.
* Option of having the cost
of stamps deducted from welfare
checks.
* Use of coupons by elderly
to purchase meals delivered by
defined agencies.
* Required "outreach" efforts
by States (with Federal cost
sharing) to bring needy people
into the program.
* Concurrent distribution
of food stamps and donated foods
in the same area.
* Fair hearing rights for
aggrieved program participants.
Following the rule-making procedure
set forth in the Federal Register
on July 10, 1971, USDA published
food stamp regulations in proposed
form to implement the new law.
These proposed regulations, published
on April 16, 1971, were publicized
widely to the media: A press
release and newsletter were sent
out immediately. In this manner
public comment was encouraged.
Over 780 individuals and organizations
responded with 3,600 comments.
As a result, the final regulations
were improved and streamlined
except in those instances where the
recommended changes were in conflict
with the basic requirements of the
Si>ECIAI. COUJiCrtONS & UNIVI RSI t'Y ARCHIVI:S
W AL'riLK CLINTON jA <.: ~ SUN LtBKAM Y
THE U N I Vtt RS ITY oF N oMTH C ,u~: oLINA Ar G u ! EN SBOKo
HoME EcoNOMICS PAMPHLETS CoLLECTION
law.
Some of the highlights of the new
regulations include the following:
NATIONAL ELIGIBILITY STANDARDS:
Eligibility of households in which
all members are receiving public
assistance is determined without
regard to income and resources
eligibility standards applied to all
other households. In determining
eligibility of all other households,
income limitations shall be the
higher of the income standards in
effect in a particular State or the
District of Columbia prior to
July 29, 1971, or those shown on the
table below. Standards in Alaska and
Hawaii are adjusted in accordance
with the separate poverty guidelines
and food costs peculiar to those
States.
MONTHLY MAXIMUM INCOME
ELIGIBILITY LEVELS
Persons )48 States & D. C.l Alaska fHawaii
1 $178 $214 $202
2 233 281 265
3 307 400 400
4 373 480 480
5 440 573 573
6 507 667 667
7 573 733 73:3
8 640 813 813
Each
additional
~erson (Add) $53 $67 $67
All programs of the U. S . Department
of Agriculture are available to all
persons without regard to race, color
creed, sex, national origin, or
political affiliation.
2
INCOME to be measured in
determining household eligibility
and purchase requirement (the
amount the household is to pay for
its food stamp allotment) is, in
general, any cash or payments to
members of the household from
any source, including all types
of public assistance, scholarships
and educational grants.
Changes have been made to
allow the cost of educational
expenses for tuition and
mandatory fees, including those
paid for by scholarships, grants,
fellowships, and veterans
benefits, to be deducted from
income in determining eligibility.
In addition, the regulations
have been changed to allow: a
deduction of 10 percent of earned
income or training allowance (not to
exceed $30 per household per month)
in recognition of the costs of
going to work or taking training;
deductions for shelter costs that
exceed 30 percent of income~
medical payments in excess of $10
per month for the household;
payments for child care when
necessary for a household member to
accept or continue employment; and
unusual expenses resulting from
disaster or casualty losses.
Under the shelter provision,
changes have been made to allow
basic phone service as a utility
hardship.
Not counted as income to the
household are: the earnings of a
child under 18 who is still in
school; benefits which do not
involve a cash transaction (e.g. the
free use of living quarters);
certain non-recurring lump-sum
payments such as insurance settlements,
inheritances, income tax
refunds, and all loans except
educational ones on which repayment
is not due until completion of the
recipient's education.
Mandatory deductions from
earnings in amounts which are not
elective by the recipients, such as
income tax, Social Security tax,
and required union dues, are considered
as a "household expense" in
arriving at the household income
figure.
RESOURCES such as savings
accounts, negotiable securities
and certain property, are limited
to $1500 per household, plus an
additional $1500 for households of
two or more containing at least
one person 60 years old or older.
Not counted as resources are
the value of such items as a home,
household goods, car, personal
effects, cash value of life
insurance policies, income-producing
property, and tools and machinery
essential to employment or selfsupport.
However, resources do include
such nonliquid assets as non-incomeproducing
buildings, land, or
other real or personal property, at
fair market value.
TAX DEPENDENTS: No household
can be eligible if it has a member
over 18 years old who is claimed
as a dependent for Federal income
tax purposes by a parent or guardian
in another household which itself
is not eligible for either food
stamps or donated foods. Although
3
there were many objections to this
provision, it is required by law
and must remain.
WORK REGISTRATION: The law
sets work registration as an eligibility
requirement for food stamps
for any able-bodied household
member between ages 18 and 65, unless
that member is responsible for the
care of dependent children under
18 or of incapacitated adults; a
student enrolled at least half
time in any school or training
program recognized by a Federal,
State or local government agency;
working at least 30 hours per week.
The work registration form is
to be forwarded by the food stamp
certification office to the State
or Federal employment office for
the area.
For the household to be
eligible for stamps, the registered
member or members of the household
must cooperate in seeking and accept
employment of a type and in a location
reasonably consistent with
physical and mental fitness (with
consideration of transportation
costs and commuting time) and at
wages, including piece-rate basis,
that are the highest of applicable
Federal and State minimums or other
authorized Federal regulations, but
in no case less than $1.30 per hour.
Modifications have been made
to make it clear that State agencies
must determine the suitability of
available jobs for work registrants
on the basis of criteria listed.
The services of the Department of
Labor and Federal and State employment
offices will be utilized.
The revised regulations also
make it clear that persons not
working because of a strike or
lockout are required to comply with
the work registration requirement
but do not have to work at a plant
subject to a strike or lockout. In
addition, the registrant cannot be
required to join, resign from, or
refrain from joining any recognized
labor organization as a condition
of employment.
FOOD STAMP ALLOTMENT: Allotments
of food stamps are geared to cost of
USDA's economy diet, with the amount
of money paid by households not to
exceed 30 percent of income. Stamps
will be issued free to one- and twoperson
households with incomes under
$20 a month, and all other households
with income under $ 3 0.
Under the new law public assistance
households may elect to have
payment for their full allotment of
food stamps deducted regularly from
money they get under any federally
aided assistance program.
All households may elect at
time of issuance to receive all,
three-quarters, one-half, or onequarter
of their monthly food stamp
allotment with their payment
adjusted accordingly. Public assistance
households electing to have
their payments for food stamps
deducted from their welfare check may
return the full allotment of properly
issued food stamps to the State agency
fo r a refund of their purchase
requirement .
4
EXAMPLES OF MONTHLY ALLO'IMENTS AND AMOUNTS TO BE PAID BY
RECIPIENTS IN THE 48 CONTIGUOUS STATES AND DISTRICT OF COLUMBIA
For a Household of: 1 2 4 6
Food Stamp Allotment $36 $64 $ll2 $152
Purchase Reguirement
(Net Monthly Income)
$ 0- 19.99 Free Free Free Free
20- 29.99 $ 1 $ 1 Free Free
100- 109.99 18 23 $ 25 $ 27
150- 169.99 26 36 41 43
190- 209.99 44 53 55
210- 229.99 44 59 61
250- 269.99 71 73
290- 309.99 82 85
330- 359.99 86 97
360- 389.99 88 104
450- 479.99 ll6
480- 509.99 120
Note: Because food costs are determined to be significantly
higher in Alaska and Hawaii, food stamp allotments are greater
than those of the other 48 States.
Separate issuance tables are published for Alaska and Hawaii.
MEALS-ON-WHEELS: Elderly
participants who are disabled or
feeble and cannot adequately prepare
all of their own meals may use
food stamps to pay for meals
delivered to them by nonprofit meal
delivery services. These delivery
services like retailers and wholesalers,
will be authorized to
redeem food stamps by FNS.
DUAL FOOD ASSISTANCE: When the
Food Stamp Program opens in a county
or city that has been distributing
donated foods, both programs will
be permitted at the State's request
for a transition period up to three
months.
Regulations now permit the
permanent operation of both programs.
The regulations require that both
programs use the national eligibility
standards and controls to prevent
double participation by the same
household. In order to be approved
for the dual operation, a State must
furnish proper justification with its
request.
FAIR HEARING PROCEDURES: The
regulations spell out procedures by
which any participant aggrieved by an
action of the State agency or its
local counterpart affecting participation
can ask for a fair hearing.
Each household is to be informed
5
of its right to a hearing at the
time of application. Reas·onable
time to enter a request for a
hearing, reasonable advance notice
of the date of the hearing, the
right to examine documents and
confront witnesses, and prompt
decisions are required.
OUTREACH EFFORTS: States are
required to develop an "outreach".
program to be approved by FNS and to
become part of the State Plan of
Operation. In outreach activities,
emphasis has been placed on the use
of other ·groups and organizations and
the development of bilingual materials.
"Outreach" means any effort that
will inform low-income households of
the availability and benefits of the
program and to encourage the participation
of all eligible households.
In order to accompl~sh their
mission, the States may rely on
help from Federal, State or local
agencies and organizations and from
volunteers. To help speed up the
process at certification centers,
volunteers may act as receptionists
or assist applicants in completing
their applications; they can provide
transportation to and from the food
stamp office and grocery; they can
act as authorized representatives
for those unable to travel and where
a meal delivery service is available,
volunteers can help in bringing
meals to elderly recipients.
ELIMINATING PROGRAM ABUSE:
Provisions aimed at eliminating abuses
of the program require that "quality
control" plans be included in each
State's Plan of Operation. Misuse
Revised August 1972
of'authorization to purchase"
cards (the document households get
when certified for participation,
commonly termed ATP cards) is
subject to the same penalties as
unauthorized issuance and use of
the food coupons themselves.
TRANSFER OF ELIGIBILITY:
Certified households (except those
certified under disaster or emergency
-provisions) may transfer eligibility
for 60 days following a move from
one food stamp area to another,
provided the household circumstances
remain the same.
ELIMINATION OF CREDIT PROVISIONS:
Eliminated from the new
regulations were the credits provisions,
under which improperly
denied benefits subsequently
gained at a hearing would have been
retroactively credited at State
expense toward food stamp purchase
requirements.
*****
6
U. S. GOVERNMENT PRINTING OFFICE : 1972 0- 473-184
-.,.
