Disqualified NA Participant’s Effect on the NA Benefit Amount
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This subject includes information about how having an NA disqualified participant in the budgetary unit affects NA benefit determination and eligibility.
Policy
Special consideration is given to budgetary units(g) with a disqualified participant.
Disqualified participants are not included when determining the budgetary unit size or when assigning a benefit level.
Disqualified participants are included when determining the correct utility allowance amount for the budgetary unit.
Depending on the disqualification reason, the income and expenses of disqualified participants are counted in full or prorated to the remaining eligible participants in the budgetary unit.
Income and expenses are counted in full for a participant disqualified for any of the following reasons:
●NA work requirement disqualification
●Intentional program violation (IPV)
●Fleeing felon
●Felony drug conviction
●A conviction for any of the following:
Trading NA benefits for controlled substances
Trading controlled substances for NA benefits
Trafficking NA benefits
Making fraudulent statements concerning identity or residence in order to receive multiple NA benefits
●Refusing a job offer, voluntarily quitting a job, or voluntarily reducing work hours
●Nonqualified noncitizen participants with any of the following statuses:
Diplomats
Students
Tourists
Undocumented noncitizens
Visitors
Income and some expenses are prorated to the remaining eligible participants in the budgetary unit when a participant is disqualified for any of the following reasons: (See Example 1)
●Noncompliance with the Social Security number (SSN) requirements
●Nonqualified noncitizen participants with any of the following statuses:
Lawful Permanent Residents (LPRs) who are subject to and not meeting the five-year residency requirement
Parolees
NOTE Not all participants with parolee status are disqualified for NA. (See FAA3.D06B titled Noncitizen Paroled into the United States for more information.)
Special agricultural workers admitted for temporary residence
Prorating the income distributes an even portion of the disqualified participant’s income to the participants who are eligible and receiving benefits in the budgetary unit.
The types of expenses that are subject to proration include all of the following:
●Shelter
●Dependent care
●Child support
NOTE Utility expenses are not prorated.
Examples
1) Dena applies for NA for herself, her daughter Alivia, and her husband Kevin. Kevin is disqualified because of noncompliance with the Social Security number requirement. Dena and Alivia are eligible to receive NA benefits. Kevin earns $900 per month from his job. Kevin’s income is prorated to Dena and Alivia. To prorate the income, Kevin’s total monthly income of $900 is divided by the total number of participants in the budgetary unit(g), which is three. The $900 is divided by 3 which equals $300 for the average amount. The $300 is multiplied by the two remaining eligible participants in the budgetary unit. The total countable income is $600.
Legal Authorities
7 CFR 273.10(a)(1)(ii)(A)-(B)
7 CFR 273.10(a)(1)(iii)(A)-(C)
7 CFR 273.10(a)(2)
7 CFR 273.11(c)
last revised 11/04/2024