FAA4.K Financial Eligibility Factors : 01 Expenses Exceed Income (EEI)
Expenses Exceed Income (EEI)
Information on this page refers to the Nutrition Assistance program Information on this page refers to the Cash Assistance program
When a budgetary unit(g) reports their expenses exceed their reported income and available resources, an “expenses exceed income (EEI)” situation exists.
Policy
An Expenses Exceed Income (EEI) situation exists when a budgetary unit reports expenses that are more than both of the following:
The budgetary unit’s reported gross income.
The budgetary unit’s available resources.
Participants whose living expenses exceed their income must provide information about the management of their finances. The participant may not be eligible for NA or CA benefits when one of the following occurs:
The participant does not respond to a request for information about paying their bills.
The participant provides bills that are paid, but the participant does not identify how the bills were paid.
FAA explores the participant’s income and expenses at the interview to determine whether the budgetary unit’s expenses exceed their income. When a budgetary unit is EEI, the participant is asked to explain how they plan to pay their bills.
During the interview, participants not currently receiving benefits must resolve or address the EEI situation, even when there is a loss of income. The participant can provide a statement, which must make sense and not conflict with other known information related to their case.
NOTE Refusing to discuss or explain an EEI situation during the interview is considered a refusal to cooperate. The participant must cooperate before eligibility can be determined. For more information about cooperation requirements, see Refusal to Cooperate.
After approval, FAA may send a notice to the participant asking how they meet their expenses. The participant must respond to this FAA request for information, even when nothing has changed since the interview. Failure to respond to an FAA request for information can cause benefits to stop.
NOTE When FAA receives information from the participant, there is no change to the benefits when the unpaid expenses continue to exceed the budgetary unit's income.
Benefits are stopped when one of the following occur:
The participant met their expenses and continued to be EEI without an explanation.
NOTE The participant must report all income and resources to be eligible for benefits.
The participant failed or refused to provide EEI information.
NOTE A new application may not be necessary when the participant provides the requested information after denial or after benefits have been stopped.
Verification
Acceptable verification depends on which of the following EEI situations apply to the participant:
At an initial interview, when a participant is not able to pay their expenses, examples of acceptable verification of proof they are not paying their bills include, and are not limited to, any of the following:
Overdue bills.
Eviction notice.
Shut off notices.
A participant statement, when not questionable(g).
NOTE An acceptable statement may include the phrase “I don’t know”.
After approval, when shelter and utility bills are paid, examples of acceptable verification of proof how the bills were paid include, and are not limited to, any of the following:
A participant statement that identifies receipt of noncash contributions.
Bank statements indicating withdrawals or sufficient resources to meet living expenses.
Loan documents.
A signed and dated statement from a person providing funds identifying whether the funds are considered one or more of the following:
Loan
Gift
Vendor payment
The participant is working instead of making payment (in-kind income)
NOTE The statement must include the phone number and complete address of the person providing funds, the amount of money supplied, and how long they will provide funds.
 
Legal Authorities
last revised 03/28/2022