As a safety net, USDA has historically granted work requirement waivers for those individuals living in states that can demonstrate unemployment rates above 10 percent and/or, a lack of sufficient jobs in their state or within localities in their state. Today, USDA’s new rule tightens this waiver process.
<p>By: Hannah Walker, VP, Political Affairs, FMI and Elizabeth Tansing, Senior Director, State Government Relations, FMI</p> <p><img src="https://www.fmi.org/images/default-source/government-affairs/snap-logo.tmb-large-350-.jpg?sfvrsn=3138696e_2" data-displaymode="Thumbnail" alt="SNAP Logo" title="SNAP Logo" style="float: right; margin-bottom: 10px; margin-left: 10px;" />Earlier this month, the United States Department of Agriculture (USDA) issued a final rule, which makes changes to the waiver process for the Supplemental Nutrition Assistance Program’s (SNAP) work requirements for Able-Bodied Adults Without Dependents (ABAWD), defined by federal law as individuals between the ages of 18 to 49 able to work and with no dependents. </p> <p>An ABAWD may only receive SNAP benefits for three months out of every 36 months, unless the individual meets certain work requirements. Federal law requires these individuals to work a minimum of 80 hours per month to qualify for SNAP benefits beyond the three months in the 36-month timeframe. The work requirement can be filled in a variety of ways, including participating in workforce training. </p> <p>However, as a safety net, USDA has historically granted work requirement waivers for those individuals living in states that can demonstrate unemployment rates above 10% and/or, a lack of sufficient jobs in their state or within localities in their state. <strong>Today, USDA’s new rule tightens this waiver process.</strong></p> <p>FMI did not submit comments on the <a href="https://www.fns.usda.gov/snap/fr-020119">proposed rule</a> when it was first released in February 2019, but we have closely followed the process. Since the final <a href="https://www.federalregister.gov/documents/2019/12/05/2019-26044/supplemental-nutrition-assistance-program-requirements-for-able-bodied-adults-without-dependents">rule</a> - SNAP: Requirements for ABAWD - was released, FMI has heard from many of our members trying to better understand the rule and its potential impacts in their service areas. In addition, there have been varying, and sometimes conflicting, media reports, and even voices from both sides of the aisle that either support or oppose the rule. </p> <p>Below are resources we hope will be helpful to you in better understanding what the final rule does, and in what areas it may create the most impact. </p> <h4><strong>How does the final rule affect state-wide waivers? </strong></h4> <p>First, the final rule generally eliminates state-wide waivers in favor of waivers based on specific geographic areas. (We’ll delve into the definition of “geographic area” further below.) </p> <p>Second, the final rule only allows a geographic area waiver to work requirements for those individuals in these scenarios:</p> <ul> <li>An area that has a recent 12-month average unemployment rate over 10%.</li> </ul> <ul> <li>An area that has a 24-month average unemployment rate 20% or higher above the national rate. Additionally, the affected area cannot have lower than 6% unemployment.</li> </ul> <h4><strong>How is “geographic area” defined?</strong></h4> <p>The rule makes changes to how “geographic areas” can be defined in order to meet the above criteria. Previously, states had great flexibility in defining areas that could receive waivers. The final rule strictly defines areas for eligibility using the Bureau of Labor Statistics (BLS) Labor Market Areas (<a href="https://www.google.com/url?client=internal-element-cse&cx=013738036195919377644:6ih0hfrgl50&q=https://www.bls.gov/lau/lmadir2015.xlsx&sa=U&ved=2ahUKEwiZndSEnazmAhVqg-AKHeGeBlsQFjAFegQIBRAB&usg=AOvVaw2i8WRqlP7AIqBxJ3D4j6Db">LMA</a>) and their corresponding Local Area Unemployment Statistics data (<a href="https://www.bls.gov/lau/home.htm">LAUs data</a>). The final rule does acknowledge that all LMAs within a state may qualify for waivers and therefore effectively results in a statewide waiver.</p> <h4><strong>What about time limits on waivers?</strong></h4> <p>The final rule limits waiver duration to 12 months and allows for shorter durations at the state’s request. </p> <h4><strong>What states are impacted?</strong></h4> <p>Currently, four states and territories have statewide waivers while 32 states have partial waivers to specific geographic areas. Finally, 17 states have no current waivers. You can access a list of each state's status <a href="https://fns-prod.azureedge.net/sites/default/files/media/file/FY20-Quarter%201-ABAWD-Waiver-Status.pdf">here</a>. Using publicly available information, FMI created <a href="https://www.fmi.org/docs/default-source/gr/abawd-partial-waiver-guide.pdf?sfvrsn=941f526e_0" title="a guide">a guide</a> to the current partial waivers by county/metropolitan area in each state. </p> <h4><strong>How many ABAWD’s are impacted? </strong></h4> <p>According to USDA’s regulatory analysis, 688,000 individuals (in FY 2021) will not meet the work requirement or be otherwise exempt. USDA also says the net reduction in Federal SNAP spending associated with the final rule is approximately $109 million in fiscal year 2020 and $5.48 billion over the five years 2020–2024.</p> <h4><strong>When does the final rule go into effect?</strong></h4> <p>USDA has announced the final rule will take effect on April 1, 2020. However, if the rule is challenged with a lawsuit, the implementation could be delayed, and it is likely plaintiffs would see an injunction preventing the implementation of the final rule pending the disposal of the case. While no lawsuits have been filed yet, FMI has heard a court challenge is likely. </p> <p>FMI will continue to monitor this issue and share updates about the potential impact of the final rule. Given the complexity of this issue, we encourage members to reach out with any questions or comments. </p> <a href="mailto:
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