7 U.S.C. § 2014 (2024) — Title 7: AGRICULTURE / Chapter 51: SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM / Section 2014: Eligible households
Eligible households
Status: in_force

(a) Income and other financial resources as substantial limiting factors in obtaining more nutritious diet; recipients under Social Security Act

Participation in the supplemental nutrition assistance program shall be limited to those households whose incomes and other financial resources, held singly or in joint ownership, are determined to be a substantial limiting factor in permitting them to obtain a more nutritious diet. Notwithstanding any other provisions of this chapter except subsections (b), (d)(2), (g), and (r) of section 2015 of this title and section 2012(m)(4) of this title, households in which each member receives benefits under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), supplemental security income benefits under title XVI of the Social Security Act [42 U.S.C. 1381 et seq.], or aid to the aged, blind, or disabled under title I, X, XIV, or XVI of the Social Security Act [42 U.S.C. 301 et seq., 1201 et seq., 1351 et seq., or 1381 et seq.], shall be eligible to participate in the supplemental nutrition assistance program. Except for sections 2015, 2025(e)(1), and section 2012(m)(4) of this title, households in which each member receives benefits under a State or local general assistance program that complies with standards established by the Secretary for ensuring that the program is based on income criteria comparable to or more restrictive than those under subsection (c)(2), and not limited to one-time emergency payments that cannot be provided for more than one consecutive month, shall be eligible to participate in the supplemental nutrition assistance program. Assistance under this program shall be furnished to all eligible households who make application for such participation.

(b) Eligibility standards

Except as otherwise provided in this chapter, the Secretary shall establish uniform national standards of eligibility (other than the income standards for Alaska, Hawaii, Guam, and the Virgin Islands of the United States established in accordance with subsections (c) and (e) of this section) for participation by households in the supplemental nutrition assistance program in accordance with the provisions of this section. No plan of operation submitted by a State agency shall be approved unless the standards of eligibility meet those established by the Secretary, and no State agency shall impose any other standards of eligibility as a condition for participating in the program.

(c) Gross income standard

The income standards of eligibility shall be adjusted each October 1 and shall provide that a household shall be ineligible to participate in the supplemental nutrition assistance program if—

(1) the household's income (after the exclusions and deductions provided for in subsections (d) and (e)) exceeds the poverty line, as defined in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)), for the forty-eight contiguous States and the District of Columbia, Alaska, Hawaii, the Virgin Islands of the United States, and Guam, respectively; and

(2) in the case of a household that does not include an elderly or disabled member, the household's income (after the exclusions provided for in subsection (d) but before the deductions provided for in subsection (e)) exceeds such poverty line by more than 30 per centum.

In no event shall the standards of eligibility for the Virgin Islands of the United States or Guam exceed those in the forty-eight contiguous States.

(d) Exclusions from income

Household income for purposes of the supplemental nutrition assistance program shall include all income from whatever source excluding only—

(1) any gain or benefit which is not in the form of money payable directly to a household (notwithstanding its conversion in whole or in part to direct payments to households pursuant to any demonstration project carried out or authorized under Federal law including demonstration projects created by the waiver of provisions of Federal law);

(2) any income in the certification period which is received too infrequently or irregularly to be reasonably anticipated, but not in excess of $30 in a quarter, subject to modification by the Secretary in light of subsection (f);

(3) all educational loans on which payment is deferred, grants, scholarships, fellowships, veterans' educational benefits, and the like—

(A) awarded to a household member enrolled at a recognized institution of post-secondary education, at a school for the handicapped, in a vocational education program, or in a program that provides for completion of a secondary school diploma or obtaining the equivalent thereof;

(B) to the extent that they do not exceed the amount used for or made available as an allowance determined by such school, institution, program, or other grantor, for tuition and mandatory fees (including the rental or purchase of any equipment, materials, and supplies related to the pursuit of the course of study involved), books, supplies, transportation, and other miscellaneous personal expenses (other than living expenses), of the student incidental to attending such school, institution, or program; and

(C) to the extent loans include any origination fees and insurance premiums;

(4) all loans other than educational loans on which repayment is deferred;

(5) reimbursements which do not exceed expenses actually incurred and which do not represent a gain or benefit to the household and any allowance a State agency provides no more frequently than annually to families with children on the occasion of those children's entering or returning to school or child care for the purpose of obtaining school clothes (except that no such allowance shall be excluded if the State agency reduces monthly assistance under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) in the month for which the allowance is provided): Provided, That no portion of benefits provided under title IV–A of the Social Security Act [42 U.S.C. 601 et seq.], to the extent it is attributable to an adjustment for work-related or child care expenses (except for payments or reimbursements for such expenses made under an employment, education, or training program initiated under such title after September 19, 1988), and no portion of any educational loan on which payment is deferred, grant, scholarship, fellowship, veterans' benefits, and the like that are provided for living expenses, shall be considered such reimbursement;

(6) moneys received and used for the care and maintenance of a third-party beneficiary who is not a household member, and child support payments made by a household member to or for an individual who is not a member of the household if the household member is legally obligated to make the payments;

(7) income earned by a child who is a member of the household, who is an elementary or secondary school student, and who is 17 years of age or younger;

(8) moneys received in the form of nonrecurring lump-sum payments, including, but not limited to, income tax refunds, rebates, or credits, cash donations based on need that are received from one or more private nonprofit charitable organizations, but not in excess of $300 in the aggregate in a quarter, retroactive lump-sum social security or railroad retirement pension payments and retroactive lump-sum insurance settlements: Provided, That such payments shall be counted as resources, unless specifically excluded by other laws;

(9) the cost of producing self-employed income, but household income that otherwise is included under this subsection shall be reduced by the extent that the cost of producing self-employment income exceeds the income derived from self-employment as a farmer;

(10) any income that any other Federal law specifically excludes from consideration as income for purposes of determining eligibility for the supplemental nutrition assistance program except as otherwise provided in subsection (k) of this section;

(11)(A) any payments or allowances made for the purpose of providing energy assistance under any Federal law (other than part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)); or

(B) a 1-time payment or allowance made under a Federal or State law for the costs of weatherization or emergency repair or replacement of an unsafe or inoperative furnace or other heating or cooling device;

(12) through September 30 of any fiscal year, any increase in income attributable to a cost-of-living adjustment made on or after July 1 of such fiscal year under title II or XVI of the Social Security Act [42 U.S.C. 401 et seq., 1381 et seq.], section 3(a)(1) of the Railroad Retirement Act of 1974 (45 U.S.C. 231b(a)(1)), or section 5312 of title 38, if the household was certified as eligible to participate in the supplemental nutrition assistance program or received an allotment in the month immediately preceding the first month in which the adjustment was effective;

(13) any payment made to the household under section 3507 1 of title 26 (relating to advance payment of earned income credit);

(14) any payment made to the household under section 2015(d)(4)(I) of this title or a pilot project under section 2025(h)(1)(F) of this title for work related expenses or for dependent care;

(15) any amounts necessary for the fulfillment of a plan for achieving self-support of a household member as provided under subparagraph (A)(iii) or (B)(iv) of section 1612(b)(4) of the Social Security Act (42 U.S.C. 1382a(b)(4));

(16) at the option of the State agency, any educational loans on which payment is deferred, grants, scholarships, fellowships, veterans' educational benefits, and the like (other than loans, grants, scholarships, fellowships, veterans' educational benefits, and the like excluded under paragraph (3)), to the extent that they are required to be excluded under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.);

(17) at the option of the State agency, any State complementary assistance program payments that are excluded for the purpose of determining eligibility for medical assistance under section 1931 of the Social Security Act (42 U.S.C. 1396u–1);

(18) at the option of the State agency, any types of income that the State agency does not consider when determining eligibility for (A) cash assistance under a program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) or the amount of such assistance, or (B) medical assistance under section 1931 of the Social Security Act (42 U.S.C. 1396u–1), except that this paragraph does not authorize a State agency to exclude wages or salaries, benefits under title I, II, IV, X, XIV, or XVI of the Social Security Act (42 U.S.C. 301 et seq. [, 401 et seq., 601 et seq., 1201 et seq., 1351 et seq., 1381 et seq.]), regular payments from a government source (such as unemployment benefits and general assistance), worker's compensation, child support payments made to a household member by an individual who is legally obligated to make the payments, or such other types of income the consideration of which the Secretary determines by regulation to be essential to equitable determinations of eligibility and benefit levels; and

(19) any additional payment under chapter 5 of title 37, or otherwise designated by the Secretary to be appropriate for exclusion under this paragraph, that is received by or from a member of the United States Armed Forces deployed to a designated combat zone, if the additional pay—

(A) is the result of deployment to or service in a combat zone; and

(B) was not received immediately prior to serving in a combat zone.

(e) Deductions from income

(1) Standard deduction

(A) In general

(i) Deduction

The Secretary shall allow a standard deduction for each household in the 48 contiguous States and the District of Columbia, Alaska, Hawaii, and the Virgin Islands of the United States in an amount that is—

(I) equal to 8.31 percent of the income standard of eligibility established under subsection (c)(1); but

(II) not more than 8.31 percent of the income standard of eligibility established under subsection (c)(1) for a household of 6 members.

(ii) Minimum amount

Notwithstanding clause (i), the standard deduction for each household in the 48 contiguous States and the District of Columbia, Alaska, Hawaii, and the Virgin Islands of the United States shall be not less than—

(I) for fiscal year 2009, $144, $246, $203, and $127, respectively; and

(II) for fiscal year 2010 and each fiscal year thereafter, an amount that is equal to the amount from the previous fiscal year adjusted to the nearest lower dollar increment to reflect changes for the 12-month period ending on the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than food.

(B) Guam

(i) In general

The Secretary shall allow a standard deduction for each household in Guam in an amount that is—

(I) equal to 8.31 percent of twice the income standard of eligibility established under subsection (c)(1) for the 48 contiguous States and the District of Columbia; but

(II) not more than 8.31 percent of twice the income standard of eligibility established under subsection (c)(1) for the 48 contiguous States and the District of Columbia for a household of 6 members.

(ii) Minimum amount

Notwithstanding clause (i), the standard deduction for each household in Guam shall be not less than—

(I) for fiscal year 2009, $289; and

(II) for fiscal year 2010 and each fiscal year thereafter, an amount that is equal to the amount from the previous fiscal year adjusted to the nearest lower dollar increment to reflect changes for the 12-month period ending on the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than food.

(C) Requirement

Each adjustment under subparagraphs (A)(ii)(II) and (B)(ii)(II) shall be based on the unrounded amount for the prior 12-month period.

(2) Earned income deduction

(A) "Earned income" defined

In this paragraph, the term "earned income" does not include—

(i) income excluded by subsection (d); or

(ii) any portion of income earned under a work supplementation or support program, as defined under section 2025(b) of this title, that is attributable to public assistance.

(B) Deduction

Except as provided in subparagraph (C), a household with earned income shall be allowed a deduction of 20 percent of all earned income to compensate for taxes, other mandatory deductions from salary, and work expenses.

(C) Exception

The deduction described in subparagraph (B) shall not be allowed with respect to determining an overissuance due to the failure of a household to report earned income in a timely manner.

(3) Dependent care deduction

(A) In general

A household shall be entitled, with respect to expenses (other than excluded expenses described in subparagraph (B)) for dependent care, to a dependent care deduction for the actual cost of payments necessary for the care of a dependent if the care enables a household member to accept or continue employment, or training or education that is preparatory for employment.

(B) Excluded expenses

The excluded expenses referred to in subparagraph (A) are—

(i) expenses paid on behalf of the household by a third party;

(ii) amounts made available and excluded, for the expenses referred to in subparagraph (A), under subsection (d)(3); and

(iii) expenses that are paid under section 2015(d)(4) of this title or a pilot project under section 2025(h)(1)(F) of this title.

(4) Deduction for child support payments

(A) In general

In lieu of providing an exclusion for legally obligated child support payments made by a household member under subsection (d)(6), a State agency may elect to provide a deduction for the amount of the payments.

(B) Order of determining deductions

A deduction under this paragraph shall be determined before the computation of the excess shelter expense deduction under paragraph (6).

(5) Excess medical expense deduction

(A) In general

A household containing an elderly or disabled member shall be entitled, with respect to expenses other than expenses paid on behalf of the household by a third party, to an excess medical expense deduction for the portion of the actual costs of allowable medical expenses, incurred by the elderly or disabled member, exclusive of special diets, that exceeds $35 per month.

(B) Method of claiming deduction

(i) In general

A State agency shall offer an eligible household under subparagraph (A) a method of claiming a deduction for recurring medical expenses that are initially verified under the excess medical expense deduction in lieu of submitting information on, or verification of, actual expenses on a monthly basis.

(ii) Method

The method described in clause (i) shall—

(I) be designed to minimize the burden for the eligible elderly or disabled household member choosing to deduct the recurrent medical expenses of the member pursuant to the method;

(II) rely on reasonable estimates of the expected medical expenses of the member for the certification period (including changes that can be reasonably anticipated based on available information about the medical condition of the member, public or private medical insurance coverage, and the current verified medical expenses incurred by the member); and

(III) not require further reporting or verification of a change in medical expenses if such a change has been anticipated for the certification period.

(C) Exclusion of medical marijuana

The Secretary shall promulgate rules to ensure that medical marijuana is not treated as a medical expense for purposes of this paragraph.

(6) Excess shelter expense deduction

(A) In general

A household shall be entitled, with respect to expenses other than expenses paid on behalf of the household by a third party, to an excess shelter expense deduction to the extent that the monthly amount expended by a household for shelter exceeds an amount equal to 50 percent of monthly household income after all other applicable deductions have been allowed.

(B) Maximum amount of deduction

In the case of a household that does not contain an elderly or disabled individual, in the 48 contiguous States and the District of Columbia, Alaska, Hawaii, Guam, and the Virgin Islands of the United States, the excess shelter expense deduction shall not exceed—

(i) for the period beginning on August 22, 1996, and ending on December 31, 1996, $247, $429, $353, $300, and $182 per month, respectively;

(ii) for the period beginning on January 1, 1997, and ending on September 30, 1998, $250, $434, $357, $304, and $184 per month, respectively;

(iii) for fiscal year 1999, $275, $478, $393, $334, and $203 per month, respectively;

(iv) for fiscal year 2000, $280, $483, $398, $339, and $208 per month, respectively;

(v) for fiscal year 2001, $340, $543, $458, $399, and $268 per month, respectively; and

(vi) for fiscal year 2002 and each subsequent fiscal year, the applicable amount during the preceding fiscal year, as adjusted to reflect changes for the 12-month period ending the preceding November 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.

(C) Standard utility allowance

(i) In general

In computing the excess shelter expense deduction, a State agency may use a standard utility allowance in accordance with regulations promulgated by the Secretary, subject to clause (iv), except that a State agency may use an allowance that does not fluctuate within a year to reflect seasonal variations.

(ii) Restrictions on heating and cooling expenses

An allowance for a heating or cooling expense may not be used in the case of a household that—

(I) does not incur a heating or cooling expense, as the case may be;

(II) does incur a heating or cooling expense but is located in a public housing unit that has central utility meters and charges households, with regard to the expense, only for excess utility costs; or

(III) shares the expense with, and lives with, another individual not participating in the supplemental nutrition assistance program, another household participating in the supplemental nutrition assistance program, or both, unless the allowance is prorated between the household and the other individual, household, or both.

(iii) Mandatory allowance

(I) In general

A State agency may make the use of a standard utility allowance mandatory for all households with qualifying utility costs if—

(aa) the State agency has developed 1 or more standards that include the cost of heating and cooling and 1 or more standards that do not include the cost of heating and cooling; and

(bb) the Secretary finds (without regard to subclause (III)) that the standards will not result in an increased cost to the Secretary.

(II) Household election

A State agency that has not made the use of a standard utility allowance mandatory under subclause (I) shall allow a household to switch, at the end of a certification period, between the standard utility allowance and a deduction based on the actual utility costs of the household.

(III) Inapplicability of certain restrictions

Clauses (ii)(II) and (ii)(III) shall not apply in the case of a State agency that has made the use of a standard utility allowance mandatory under subclause (I).

(iv) Availability of allowance to recipients of energy assistance

(I) In general

Subject to subclause (II), if a State agency elects to use a standard utility allowance that reflects heating and cooling costs, the standard utility allowance shall be made available to households that received a payment, or on behalf of which a payment was made, under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) or other similar energy assistance program, if in the current month or in the immediately preceding 12 months, the household either received such a payment, or such a payment was made on behalf of the household, that was greater than $20 annually, as determined by the Secretary.

(II) Separate allowance

A State agency may use a separate standard utility allowance for households on behalf of which a payment described in subclause (I) is made, but may not be required to do so.

(III) States not electing to use separate allowance

A State agency that does not elect to use a separate allowance but makes a single standard utility allowance available to households incurring heating or cooling expenses (other than a household described in subclause (I) or (II) of clause (ii)) may not be required to reduce the allowance due to the provision (directly or indirectly) of assistance under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.).

(IV) Proration of assistance

For the purpose of the supplemental nutrition assistance program, assistance provided under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) shall be considered to be prorated over the entire heating or cooling season for which the assistance was provided.

(D) Homeless households

(i) Alternative deduction

The State agency shall allow a deduction of $143 a month for households—

(I) in which all members are homeless individuals;

(II) that are not receiving free shelter throughout the month; and

(III) that do not opt to claim an excess shelter expense deduction under subparagraph (A).

(ii) Adjustment

For fiscal year 2019 and each subsequent fiscal year the amount of the homeless shelter deduction specified in clause (i) shall be adjusted to reflect changes for the 12-month period ending the preceding November 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.

(iii) Ineligibility

The State agency may make a household with extremely low shelter costs ineligible for the alternative deduction under clause (i).

(f) Calculation of household income; prospective or retrospective accounting basis; consistency

(1)(A) Household income for those households that, by contract for other than an hourly or piecework basis or by self-employment, derive their annual income in a period of time shorter than one year shall be calculated by averaging such income over a twelve-month period. Notwithstanding the preceding sentence, household income resulting from the self-employment of a member in a farming operation, who derives income from such farming operation and who has irregular expenses to produce such income, may, at the option of the household, be calculated by averaging such income and expenses over a 12-month period. Notwithstanding the first sentence, if the averaged amount does not accurately reflect the household's actual monthly circumstances because the household has experienced a substantial increase or decrease in business earnings, the State agency shall calculate the self-employment income based on anticipated earnings.

(B) Household income for those households that receive nonexcluded income of the type described in subsection (d)(3) of this section shall be calculated by averaging such income over the period for which it is received.

(C) Simplified determination of deductions.—

(i) In general.—Except as provided in clause (ii), for the purposes of subsection (e), a State agency may elect to disregard until the next recertification of eligibility under section 2020(e)(4) of this title 1 or more types of changes in the circumstances of a household that affect the amount of deductions the household may claim under subsection (e).

(ii) Changes that may not be disregarded.—Under clause (i), a State agency may not disregard—

(I) any reported change of residence; or

(II) under standards prescribed by the Secretary, any change in earned income.

(2)(A) Except as provided in subparagraphs (B), (C), and (D), households shall have their incomes calculated on a prospective basis, as provided in paragraph (3)(A), or, at the option of the State agency, on a retrospective basis, as provided in paragraph (3)(B).

(B) In the case of the first month, or at the option of the State, the first and second months, during a continuous period in which a household is certified, the State agency shall determine eligibility and the amount of benefits on the basis of the household's income and other relevant circumstances in such first or second month.

(C) Households specified in clauses (i), (ii), and (iii) of section 2015(c)(1)(A) of this title shall have their income calculated on a prospective basis, as provided in paragraph (3)(A).

(D) Except as provided in subparagraph (B), households required to submit monthly reports of their income and household circumstances under section 2015(c)(1) of this title shall have their income calculated on a retrospective basis, as provided in paragraph (3)(B).

(3)(A) Calculation of household income on a prospective basis is the calculation of income on the basis of the income reasonably anticipated to be received by the household during the period for which eligibility or benefits are being determined. Such calculation shall be made in accordance with regulations prescribed by the Secretary which shall provide for taking into account both the income reasonably anticipated to be received by the household during the period for which eligibility or benefits are being determined and the income received by the household during the preceding thirty days.

(B) Calculation of household income on a retrospective basis is the calculation of income for the period for which eligibility or benefits are being determined on the basis of income received in a previous period. Such calculation shall be made in accordance with regulations prescribed by the Secretary which may provide for the determination of eligibility on a prospective basis in some or all cases in which benefits are calculated under this paragraph. Such regulations shall provide for supplementing the initial allotments of newly applying households in those cases in which the determination of income under this paragraph causes serious hardship.

(4) In promulgating regulations under this subsection, the Secretary shall consult with the Secretary of Health and Human Services in order to assure that, to the extent feasible and consistent with the purposes of this chapter and the Social Security Act [42 U.S.C. 301 et seq.], the income of households receiving benefits under this chapter and title IV–A of the Social Security Act [42 U.S.C. 601 et seq.] is calculated on a comparable basis under this chapter and the Social Security Act. The Secretary is authorized, upon the request of a State agency, to waive any of the provisions of this subsection (except the provisions of paragraph (2)(A)) to the extent necessary to permit the State agency to calculate income for purposes of this chapter on the same basis that income is calculated under title IV–A of the Social Security Act in that State.

(g) Allowable financial resources

(1) Total amount.—

(A) In general.—The Secretary shall prescribe the types and allowable amounts of financial resources (liquid and nonliquid assets) an eligible household may own, and shall, in so doing, assure that a household otherwise eligible to participate in the supplemental nutrition assistance program will not be eligible to participate if its resources exceed $2,000 (as adjusted in accordance with subparagraph (B)), or, in the case of a household which consists of or includes an elderly or disabled member, if its resources exceed $3,000 (as adjusted in accordance with subparagraph (B)).

(B) Adjustment for inflation.—

(i) In general.—Beginning on October 1, 2008, and each October 1 thereafter, the amounts specified in subparagraph (A) shall be adjusted and rounded down to the nearest $250 increment to reflect changes for the 12-month period ending the preceding June in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.

(ii) Requirement.—Each adjustment under clause (i) shall be based on the unrounded amount for the prior 12-month period.

(2) Included assets.—

(A) In general.—Subject to the other provisions of this paragraph, the Secretary shall, in prescribing inclusions in, and exclusions from, financial resources, follow the regulations in force as of June 1, 1982 (other than those relating to licensed vehicles and inaccessible resources).

(B) Additional included assets.—The Secretary shall include in financial resources—

(i) any boat, snowmobile, or airplane used for recreational purposes;

(ii) any vacation home;

(iii) any mobile home used primarily for vacation purposes;

(iv) subject to subparagraphs (C) and (D), any licensed vehicle that is used for household transportation or to obtain or continue employment to the extent that the fair market value of the vehicle exceeds $4,650; and

(v) any savings account, regardless of whether there is a penalty for early withdrawal.

(C) Excluded vehicles.—A vehicle (and any other property, real or personal, to the extent the property is directly related to the maintenance or use of the vehicle) shall not be included in financial resources under this paragraph if the vehicle is—

(i) used to produce earned income;

(ii) necessary for the transportation of a physically disabled household member; or

(iii) depended on by a household to carry fuel for heating or water for home use and provides the primary source of fuel or water, respectively, for the household.

(D) Alternative vehicle allowance.—If the vehicle allowance standards that a State agency uses to determine eligibility for assistance under the State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) would result in a lower attribution of resources to certain households than under subparagraph (B)(iv), in lieu of applying subparagraph (B)(iv), the State agency may elect to apply the State vehicle allowance standards to all households that would incur a lower attribution of resources under the State vehicle allowance standards.

(3) The Secretary shall exclude from financial resources the value of a burial plot for each member of a household and nonliquid resources necessary to allow the household to carry out a plan for self-sufficiency approved by the State agency that constitutes adequate participation in an employment and training program under section 2015(d) of this title or a pilot project under section 2025(h)(1)(F) of this title. The Secretary shall also exclude from financial resources any earned income tax credits received by any member of the household for a period of 12 months from receipt if such member was participating in the supplemental nutrition assistance program at the time the credits were received and participated in such program continuously during the 12-month period.

(4) In the case of farm property (including land, equipment, and supplies) that is essential to the self-employment of a household member in a farming operation, the Secretary shall exclude from financial resources the value of such property until the expiration of the 1-year period beginning on the date such member ceases to be self-employed in farming.

(5) The Secretary shall promulgate rules by which State agencies shall develop standards for identifying kinds of resources that, as a practical matter, the household is unlikely to be able to sell for any significant return because the household's interest is relatively slight or because the cost of selling the household's interest would be relatively great. Resources so identified shall be excluded as inaccessible resources. A resource shall be so identified if its sale or other disposition is unlikely to produce any significant amount of funds for the support of the household. The Secretary shall not require the State agency to require verification of the value of a resource to be excluded under this paragraph unless the State agency determines that the information provided by the household is questionable.

(6) Exclusion of types of financial resources not considered under certain other federal programs.—

(A) In general.—Subject to subparagraph (B), a State agency may, at the option of the State agency, exclude from financial resources under this subsection any types of financial resources that the State agency does not consider when determining eligibility for—

(i) cash assistance under a program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.); or

(ii) medical assistance under section 1931 of the Social Security Act (42 U.S.C. 1396u–1).

(B) Limitations.—Except to the extent that any of the types of resources specified in clauses (i) through (iv) are excluded under another paragraph of this subsection, subparagraph (A) does not authorize a State agency to exclude—

(i) cash;

(ii) licensed vehicles;

(iii) amounts in any account in a financial institution that are readily available to the household; or

(iv) any other similar type of resource the inclusion in financial resources of which the Secretary determines by regulation to be essential to equitable determinations of eligibility under the supplemental nutrition assistance program.

(7) Exclusion of retirement accounts from allowable financial resources.—

(A) Mandatory exclusions.—The Secretary shall exclude from financial resources under this subsection the value of—

(i) any funds in a plan, contract, or account, described in sections 401(a), 403(a), 403(b), 408, 408A, 457(b), and 501(c)(18) of title 26 and the value of funds in a Federal Thrift Savings Plan account as provided in section 8439 of title 5; and

(ii) any retirement program or account included in any successor or similar provision that may be enacted and determined to be exempt from tax under title 26.

(B) Discretionary exclusions.—The Secretary may exclude from financial resources under this subsection the value of any other retirement plans, contracts, or accounts (as determined by the Secretary).

(8) Exclusion of education accounts from allowable financial resources.—

(A) Mandatory exclusions.—The Secretary shall exclude from financial resources under this subsection the value of any funds in a qualified tuition program described in section 529 of title 26 or in a Coverdell education savings account under section 530 of that title.

(B) Discretionary exclusions.—The Secretary may exclude from financial resources under this subsection the value of any other education programs, contracts, or accounts (as determined by the Secretary).

(h) Temporary emergency standards of eligibility; Disaster Task Force; direct assistance to State and local officials

(1) The Secretary shall, after consultation with the official empowered to exercise the authority provided for by sections 5170a and 5192 of title 42, establish temporary emergency standards of eligibility for the duration of the emergency for households who are victims of a disaster which disrupts commercial channels of food distribution, if such households are in need of temporary food assistance and if commercial channels of food distribution have again become available to meet the temporary food needs of such households. Such standards as are prescribed for individual emergencies may be promulgated without regard to section 2013(c) of this title or the procedures set forth in section 553 of title 5.

(2) The Secretary shall—

(A) establish a Disaster Task Force to assist States in implementing and operating the disaster program and the regular supplemental nutrition assistance program in the disaster area; and

(B) if the Secretary, in the Secretary's discretion, determines that it is cost-effective to send members of the Task Force to the disaster area, the Secretary shall send them to such area as soon as possible after the disaster occurs to provide direct assistance to State and local officials.

(3)(A) The Secretary shall provide, by regulation, for emergency allotments to eligible households to replace food destroyed in a disaster. The regulations shall provide for replacement of the value of food actually lost up to a limit approved by the Secretary not greater than the applicable maximum monthly allotment for the household size.

(B) The Secretary shall adjust issuance methods and reporting and other application requirements to be consistent with what is practicable under actual conditions in the affected area. In making this adjustment, the Secretary shall consider the availability of the State agency's offices and personnel, any conditions that make reliance on electronic benefit transfer systems described in section 2016(h) of this title impracticable, and any damage to or disruption of transportation and communication facilities.

(i) Attribution of income and resources to sponsored aliens; coverage, computations, etc.

(1) For purposes of determining eligibility for and the amount of benefits under this chapter for an individual who is an alien as described in section 2015(f)(2)(B) of this title, the income and resources of any person who as a sponsor of such individual's entry into the United States executed an affidavit of support or similar agreement with respect to such individual, and the income and resources of the sponsor's spouse if such spouse is living with the sponsor, shall be deemed to be the income and resources of such individual for a period of three years after the individual's entry into the United States. Any such income deemed to be income of such individual shall be treated as unearned income of such individual.

(2)(A) The amount of income of a sponsor, and the sponsor's spouse if living with the sponsor, which shall be deemed to be the unearned income of an alien for any year shall be determined as follows:

(i) the total yearly rate of earned and unearned income of such sponsor, and such sponsor's spouse if such spouse is living with the sponsor, shall be determined for such year under rules prescribed by the Secretary;

(ii) the amount determined under clause (i) of this subparagraph shall be reduced by an amount equal to the income eligibility standard as determined under subsection (c) for a household equal in size to the sponsor, the sponsor's spouse if living with the sponsor, and any persons dependent upon or receiving support from the sponsor or the sponsor's spouse if the spouse is living with the sponsor; and

(iii) the monthly income attributed to such alien shall be one-twelfth of the amount calculated under clause (ii) of this subparagraph.

(B) The amount of resources of a sponsor, and the sponsor's spouse if living with the sponsor, which shall be deemed to be the resources of an alien for any year shall be determined as follows:

(i) the total amount of the resources of such sponsor and such sponsor's spouse if such spouse is living with the sponsor shall be determined under rules prescribed by the Secretary;

(ii) the amount determined under clause (i) of this subparagraph shall be reduced by $1,500; and

(iii) the resources determined under clause (ii) of this subparagraph shall be deemed to be resources of such alien in addition to any resources of such alien.

(C)(i) Any individual who is an alien shall, during the period of three years after entry into the United States, in order to be an eligible individual or eligible spouse for purposes of this chapter, be required to provide to the State agency such information and documentation with respect to the alien's sponsor and sponsor's spouse as may be necessary in order for the State agency to make any determination required under this section, and to obtain any cooperation from such sponsor necessary for any such determination. Such alien shall also be required to provide such information and documentation which such alien or the sponsor provided in support of such alien's immigration application as the State agency may request.

(ii) The Secretary shall enter into agreements with the Secretary of State and the Attorney General whereby any information available to such persons and required in order to make any determination under this section will be provided by such persons to the Secretary, and whereby such persons shall inform any sponsor of an alien, at the time such sponsor executes an affidavit of support or similar agreement, of the requirements imposed by this section.

(D) Any sponsor of an alien, and such alien, shall be jointly and severably liable for an amount equal to any overpayment made to such alien during the period of three years after such alien's entry into the United States, on account of such sponsor's failure to provide correct information under the provisions of this section, except where such sponsor was without fault, or where good cause for such failure existed. Any such overpayment which is not repaid shall be recovered in accordance with the provisions of section 2022(b) of this title.

(E) The provisions of this subsection shall not apply with respect to any alien who is a member of the sponsor's household or to any alien who is under 18 years of age.

(j) Resource exemption for otherwise exempt households

Notwithstanding subsections (a) through (i), a State agency shall consider a household member who receives supplemental security income benefits under title XVI of the Social Security Act [42 U.S.C. 1381 et seq.], aid to the aged, blind, or disabled under title I, II, X, XIV, or XVI of such Act [42 U.S.C. 301 et seq., 401 et seq., 1201 et seq., 1351 et seq., 1381 et seq.], or who receives benefits under a State program funded under part A of title IV of the Act (42 U.S.C. 601 et seq.) to have satisfied the resource limitations prescribed under subsection (g).

(k) Assistance to third parties included; educational benefits; exceptions

(1) For purposes of subsection (d)(1), except as provided in paragraph (2), assistance provided to a third party on behalf of a household by a State or local government shall be considered money payable directly to the household if the assistance is provided in lieu of—

(A) a regular benefit payable to the household for living expenses under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.); or

(B) a benefit payable to the household for housing expenses under—

(i) a State or local general assistance program; or

(ii) another basic assistance program comparable to general assistance (as determined by the Secretary).

(2) Paragraph (1) shall not apply to—

(A) medical assistance;

(B) child care assistance;

(C) a payment or allowance described in subsection (d)(11);

(D) assistance provided by a State or local housing authority;

(E) emergency assistance for migrant or seasonal farmworker households during the period such households are in the job stream;

(F) emergency and special assistance, to the extent excluded in regulations prescribed by the Secretary; or

(G) assistance provided to a third party on behalf of a household under a State or local general assistance program, or another local basic assistance program comparable to general assistance (as determined by the Secretary), if, under State law, no assistance under the program may be provided directly to the household in the form of a cash payment.

(3) For purposes of subsection (d)(1), educational loans on which payment is deferred, grants, scholarships, fellowships, veterans' educational benefits, and the like that are provided to a third party on behalf of a household for living expenses shall be treated as money payable directly to the household.

(4) Third party energy assistance payments.—

(A) Energy assistance payments.—For purposes of subsection (d)(1), a payment made under a State law (other than a law referred to in paragraph (2)(G) to provide energy assistance to a household shall be considered money payable directly to the household.

(B) Energy assistance expenses.—For purposes of subsection (e)(6), an expense paid on behalf of a household under a State law to provide energy assistance shall be considered an out-of-pocket expense incurred and paid by the household.

(l) Earnings to participants of on-the-job training programs; exception

Notwithstanding section 181(a)(2) of the Workforce Innovation and Opportunity Act [29 U.S.C. 3241(a)(2)], earnings to individuals participating in on-the-job training under title I of such Act [29 U.S.C. 3111 et seq.] shall be considered earned income for purposes of the supplemental nutrition assistance program, except for dependents less than 19 years of age.

(m) Simplified calculation of income for the self-employed

(1) In general

Not later than 1 year after August 22, 1996, the Secretary shall establish a procedure by which a State may submit a method, designed to not increase Federal costs, for the approval of the Secretary, that the Secretary determines will produce a reasonable estimate of income excluded under subsection (d)(9) in lieu of calculating the actual cost of producing self-employment income.

(2) Inclusive of all types of income or limited types of income

The method submitted by a State under paragraph (1) may allow a State to estimate income for all types of self-employment income or may be limited to 1 or more types of self-employment income.

(3) Differences for different types of income

The method submitted by a State under paragraph (1) may differ for different types of self-employment income.

(n) State options to simplify determination of child support payments

Regardless of whether a State agency elects to provide a deduction under subsection (e)(4), the Secretary shall establish simplified procedures to allow State agencies, at the option of the State agencies, to determine the amount of any legally obligated child support payments made, including procedures to allow the State agency to rely on information from the agency responsible for implementing the program under part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.) concerning payments made in prior months in lieu of obtaining current information from the households.

(Pub. L. 88–525, §5, Aug. 31, 1964, 78 Stat. 704; Pub. L. 91–671, §4, Jan. 11, 1971, 84 Stat. 2049; Pub. L. 93–86, §3(d), (e), (g), (h), Aug. 10, 1973, 87 Stat. 246, 247; Pub. L. 95–113, title XIII, §1301, Sept. 29, 1977, 91 Stat. 962; Pub. L. 96–58, §2, Aug. 14, 1979, 93 Stat. 390; Pub. L. 96–223, title III, §313(c)(2), Apr. 2, 1980, 94 Stat. 299; Pub. L. 96–249, title I, §§102–108, 112, 136–138, May 26, 1980, 94 Stat. 357–359, 361, 369, 370; Pub. L. 97–35, title I, §§104(a), 105–107, 115, 116(a)(1), title XXVI, §2611, Aug. 13, 1981, 95 Stat. 358–361, 364, 902; Pub. L. 97–98, title XIII, §§1305–1309, Dec. 22, 1981, 95 Stat. 1283, 1284; Pub. L. 97–253, title I, §§143(b), 145(c), (d), 146–152(a), 153, 189(a), Sept. 8, 1982, 96 Stat. 773–776, 787; Pub. L. 98–204, §4, Dec. 2, 1983, 97 Stat. 1385; Pub. L. 99–198, title XV, §§1507(a)(1), 1508–1513(a), 1514, 1515, Dec. 23, 1985, 99 Stat. 1567–1572; Pub. L. 99–500, §101(a) [title VI, §638(a)], Oct. 18, 1986, 100 Stat. 1783, 1783–34, and Pub. L. 99–591, §101(a) [title VI, §638(a)], Oct. 30, 1986, 100 Stat. 3341, 3341–34; Pub. L. 100–77, title VIII, §§803(a), 804(a), 805(a), 806(a), 807(a), July 22, 1987, 101 Stat. 534, 535; Pub. L. 100–232, §2(a), Jan. 5, 1988, 101 Stat. 1566; Pub. L. 100–387, title V, §501(a), Aug. 11, 1988, 102 Stat. 960; Pub. L. 100–435, title II, §§201, 202(a), title III, §§340–343, 351, title IV, §§402, 403, 404(f), Sept. 19, 1988, 102 Stat. 1655, 1656, 1663–1665, 1668; Pub. L. 100–707, title I, §109(d), Nov. 23, 1988, 102 Stat. 4708; Pub. L. 101–624, title XVII, §§1714–1718(a), 1719–1722, 1726(b)(2), Nov. 28, 1990, 104 Stat. 3783–3787; Pub. L. 102–40, title IV, §402(d)(2), May 7, 1991, 105 Stat. 239; Pub. L. 102–237, title IX, §§902–906, 941(2), Dec. 13, 1991, 105 Stat. 1884, 1885, 1892; Pub. L. 102–265, §1(a), Mar. 26, 1992, 106 Stat. 90; Pub. L. 102–367, title VII, §702(b), Sept. 7, 1992, 106 Stat. 1113; Pub. L. 103–66, title XIII, §§13911–13915, 13921, 13922(a), 13923, 13924, Aug. 10, 1993, 107 Stat. 673–675; Pub. L. 103–225, title I, §101(b)(2), Mar. 25, 1994, 108 Stat. 107; Pub. L. 104–193, title I, §109(a), title VIII, §§806–809(a), 810–812, Aug. 22, 1996, 110 Stat. 2169, 2309, 2313, 2314; Pub. L. 105–277, div. A, §101(f) [title VIII, §405(d)(2)(A), (f)(2)(A)], Oct. 21, 1998, 112 Stat. 2681–337, 2681–418, 2681–429; Pub. L. 106–387, §1(a) [title VIII, §§846(a), 847(a)], Oct. 28, 2000, 114 Stat. 1549, 1549A–65, 1549A–66; Pub. L. 107–171, title IV, §§4101–4108(a), 4112(b)(2), 4401(b)(2)(C), May 13, 2002, 116 Stat. 305–309, 313, 333; Pub. L. 110–234, title IV, §§4001(b), 4002(a)(2), 4101–4104, 4115(b)(3), May 22, 2008, 122 Stat. 1092, 1098–1100, 1106; Pub. L. 110–246, §4(a), title IV, §§4001(b), 4002(a)(2), 4101–4104, 4115(b)(3), June 18, 2008, 122 Stat. 1664, 1853, 1859–1861, 1867; Pub. L. 113–79, title IV, §§4005, 4006(a), 4008(b), 4022(b)(1), 4030(c), Feb. 7, 2014, 128 Stat. 786–788, 808, 814; Pub. L. 113–128, title V, §512(l)(1), July 22, 2014, 128 Stat. 1709; Pub. L. 115–334, title IV, §§4004, 4022(2), Dec. 20, 2018, 132 Stat. 4627, 4653.)

Editorial Notes

References in Text

The Social Security Act, referred to in subsecs. (a), (d)(5), (11), (12), (16), (18), (f)(4), (g)(2)(D), (6)(A)(i), (j), (k)(1)(A), and (n), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Titles I, II, IV, X, XIV, XVI, and XIX of the Social Security Act are classified generally to subchapters I (§301 et seq.), II (§401 et seq.), IV (§601 et seq.), X (§1201 et seq.), XIV (§1351 et seq.), XVI (§1381 et seq.), and XIX (§1396 et seq.), respectively, of chapter 7 of Title 42, The Public Health and Welfare. Parts A and D of title IV of the Act are classified generally to parts A (§601 et seq.) and D (§651 et seq.) of subchapter IV of chapter 7 of Title 42. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

Section 3507 of title 26, referred to in subsec. (d)(13), was repealed by Pub. L. 111–226, title II, §219(a)(1), Aug. 10, 2010, 124 Stat. 2403.

The Low-Income Home Energy Assistance Act of 1981, referred to in subsec. (e)(6)(C)(iv), is title XXVI of Pub. L. 97–35, Aug. 13, 1981, 95 Stat. 893, which is classified generally to subchapter II (§8621 et seq.) of chapter 94 of Title 42. For complete classification of this Act to the Code, see Short Title note set out under section 8621 of Title 42 and Tables.

The Workforce Innovation and Opportunity Act, referred to in subsec. (l), is Pub. L. 113–128, July 22, 2014, 128 Stat. 1425. Title I of the Act is classified generally to subchapter I (§3111 et seq.) of chapter 32 of Title 29, Labor. For complete classification of this Act to the Code, see Short Title note set out under section 3101 of Title 29 and Tables.

Codification

Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Pub. L. 99–591 is a corrected version of Pub. L. 99–500.

Amendments

2018—Subsec. (a). Pub. L. 115–334, §4022(2), substituted "2012(m)(4)" for "2012(n)(4)" in two places.

Subsec. (e)(6)(D). Pub. L. 115–334, §4004, added cls. (i) and (ii), redesignated former cl. (ii) as (iii), and struck out former cl. (i). Prior to amendment, text of cl. (i) read as follows: "In lieu of the deduction provided under subparagraph (A), a State agency may elect to allow a household in which all members are homeless individuals, but that is not receiving free shelter throughout the month, to receive a deduction of $143 per month."

2014—Subsec. (a). Pub. L. 113–79, §4008(b), substituted "subsections (b), (d)(2), (g), and (r) of section 2015 of this title" for "sections 2015(b), 2015(d)(2), and 2015(g) of this title".

Subsec. (d)(14). Pub. L. 113–79, §4022(b)(1)(A), inserted "or a pilot project under section 2025(h)(1)(F) of this title" after "section 2015(d)(4)(I) of this title".

Subsec. (e)(3)(B)(iii). Pub. L. 113–79, §4022(b)(1)(B), inserted "or a pilot project under section 2025(h)(1)(F) of this title " after "section 2015(d)(4) of this title".

Subsec. (e)(5)(C). Pub. L. 113–79, §4005, added subpar. (C).

Subsec. (e)(6)(C)(i). Pub. L. 113–79, §4006(a)(1), inserted ", subject to clause (iv)" after "Secretary".

Subsec. (e)(6)(C)(iv)(I). Pub. L. 113–79, §4006(a)(2), added subcl. (I) and struck out former subcl. (I). Text read as follows: "Subject to subclause (II), if a State agency elects to use a standard utility allowance that reflects heating or cooling costs, the standard utility allowance shall be made available to households receiving a payment, or on behalf of which a payment is made, under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) or other similar energy assistance program, if the household still incurs out-of-pocket heating or cooling expenses in excess of any assistance paid on behalf of the household to an energy provider."

Subsec. (g)(3). Pub. L. 113–79, §4022(b)(1)(C), inserted "or a pilot project under section 2025(h)(1)(F) of this title" after "section 2015(d) of this title".

Subsec. (i)(2)(D). Pub. L. 113–79, §4030(c)(1), substituted "section 2022(b) of this title" for "section 2022(b)(2) of this title".

Subsec. (k)(4)(A). Pub. L. 113–79, §4030(c)(2), substituted "paragraph (2)(G)" for "paragraph (2)(H)".

Subsec. (l). Pub. L. 113–128, which directed amendment of subsec. (l) by substituting "Notwithstanding section 181(a)(2) of the Workforce Innovation and Opportunity Act, earnings to individuals participating in on-the-job training under title I of such Act" for "Notwithstanding section 181(a)(2) of the Workforce Investment Act of 1998, earnings to individuals participating in on-the-job-training under title I of the Workforce Investment Act of 1998" was executed by making the substitution for "Notwithstanding section 181(a)(2) of the Workforce Investment Act of 1998, earnings to individuals participating in on-the-job training under title I of the Workforce Investment Act of 1998" to reflect the probable intent of Congress.

2008—Subsec. (a). Pub. L. 110–246, §4115(b)(3)(A), which directed substitution of "section 2012(n)(4)" for "section 2012(i)(4)", was executed by making the substitution in two places, to reflect the probable intent of Congress.

Pub. L. 110–246, §4001(b), substituted "supplemental nutrition assistance program" for "food stamp program" wherever appearing.

Subsecs. (b), (c). Pub. L. 110–246, §4001(b), substituted "supplemental nutrition assistance program" for "food stamp program".

Subsec. (d). Pub. L. 110–246, §4101, inserted heading, redesignated cls. (1) to (18) as pars. (1) to (18), respectively, and realigned margins, in pars. (1) to (16), substituted semicolon for comma at end, in par. (3), redesignated subcls. (A) to (C) as subpars. (A) to (C), respectively, and realigned margins, in subpars. (B) and (C), substituted semicolon for comma at end, in par. (11), redesignated subcls. (A) and (B) as subpars. (A) and (B), respectively, in subpar. (A), substituted semicolon for comma at end, realigned margin of subpar. (B), and added par. (19).

Pub. L. 110–246, §4001(b), substituted "supplemental nutrition assistance program" for "food stamp program" wherever appearing.

Subsec. (e)(1)(A)(ii). Pub. L. 110–246, §4102(1), substituted "not less than—" and subcls. (I) and (II) for "not less than $134, $229, $189, and $118, respectively."

Subsec. (e)(1)(B)(ii). Pub. L. 110–246, §4102(2), substituted "not less than—" and subcls. (I) and (II) for "not less than $269."

Subsec. (e)(1)(C). Pub. L. 110–246, §4102(3), added subpar. (C).

Subsec. (e)(3)(A). Pub. L. 110–246, §4103, struck out ", the maximum allowable level of which shall be $200 per month for each dependent child under 2 years of age and $175 per month for each other dependent," after "deduction".

Subsec. (e)(6)(C). Pub. L. 110–246, §4001(b), substituted "supplemental nutrition assistance program" for "food stamp program" wherever appearing.

Subsec. (g). Pub. L. 110–246, §4104(a)(1), inserted subsec. heading.

Subsec. (g)(1). Pub. L. 110–246, §4104(a), inserted par. heading, designated existing provisions as subpar. (A), inserted subpar. heading, inserted "(as adjusted in accordance with subparagraph (B))" after "$2,000" and after "$3,000", and added subpar. (B).

Pub. L. 110–246, §4001(b), substituted "supplemental nutrition assistance program" for "food stamp program".

Subsec. (g)(2)(B)(v). Pub. L. 110–246, §4104(b)(1), substituted "savings account" for "savings or retirement account (including an individual account)".

Subsec. (g)(3), (6). Pub. L. 110–246, §4001(b), substituted "supplemental nutrition assistance program" for "food stamp program".

Subsec. (g)(7), (8). Pub. L. 110–246, §4104(b)(2), (c), added pars. (7) and (8).

Subsec. (h)(2)(A). Pub. L. 110–246, §4002(a)(2), substituted "Disaster Task Force" for "Food Stamp Disaster Task Force".

Pub. L. 110–246, §4001(b), substituted "supplemental nutrition assistance program" for "food stamp program".

Subsec. (h)(3)(B). Pub. L. 110–246, §4115(b)(3)(B), substituted "section 2016(h)" for "section 2016(i)" in second sentence.

Subsec. (i)(2)(E). Pub. L. 110–246, §4115(b)(3)(C), struck out ", as defined in section 2012(i) of this title," after "household".

Subsec. (l). Pub. L. 110–246, §4001(b), substituted "supplemental nutrition assistance program" for "food stamp program".

2002—Subsec. (a). Pub. L. 107–171, §4112(b)(2), substituted "section 2012(i)(4) of this title" for "the third sentence of section 2012(i) of this title" in two places.

Subsec. (d)(6). Pub. L. 107–171, §4101(a), inserted at end "and child support payments made by a household member to or for an individual who is not a member of the household if the household member is legally obligated to make the payments,".

Subsec. (d)(16) to (18). Pub. L. 107–171, §4102, added cls. (16) to (18).

Subsec. (e)(1). Pub. L. 107–171, §4103, added par. (1) and struck out heading and text of former par. (1). Text read as follows: "The Secretary shall allow a standard deduction for each household in the 48 contiguous States and the District of Columbia, Alaska, Hawaii, Guam, and the Virgin Islands of the United States of $134, $229, $189, $269, and $118, respectively."

Subsec. (e)(4). Pub. L. 107–171, §4101(b)(1), added par. (4) and struck out heading and text of former par. (4). Text read as follows:

"(A) In general.—A household shall be entitled to a deduction for child support payments made by a household member to or for an individual who is not a member of the household if the household member is legally obligated to make the payments.

"(B) Methods for determining amount.—The Secretary may prescribe by regulation the methods, including calculation on a retrospective basis, that a State agency shall use to determine the amount of the deduction for child support payments."

Subsec. (e)(5), (6). Pub. L. 107–171, §4105(b)(1), redesignated pars. (6) and (7) as (5) and (6), respectively, and struck out heading and text of former par. (5). Text read as follows: "Under rules prescribed by the Secretary, a State agency may develop a standard homeless shelter allowance, which shall not exceed $143 per month, for such expenses as may reasonably be expected to be incurred by households in which all members are homeless individuals but are not receiving free shelter throughout the month. A State agency that develops the allowance may use the allowance in determining eligibility and allotments for the households. The State agency may make a household with extremely low shelter costs ineligible for the allowance."

Subsec. (e)(7). Pub. L. 107–171, §4105(b)(1)(B), redesignated par. (7) as (6). Former par. (6) redesignated (5).

Subsec. (e)(7)(C)(iii)(I)(bb). Pub. L. 107–171, §4104(1), inserted "(without regard to subclause (III))" after "Secretary finds".

Subsec. (e)(7)(C)(iii)(III). Pub. L. 107–171, §4104(2), added subcl. (III).

Subsec. (e)(7)(D). Pub. L. 107–171, §4105(a), added subpar. (D).

Subsec. (f)(1)(C). Pub. L. 107–171, §4106, added subpar. (C).

Subsec. (g)(1). Pub. L. 107–171, §4107(1), substituted "an elderly or disabled member" for "a member who is 60 years of age or older".

Subsec. (g)(6). Pub. L. 107–171, §4107(2), added par. (6).

Subsec. (h)(3)(B). Pub. L. 107–171, §4108(a), inserted "issuance methods and" after "Secretary shall adjust" in first sentence and inserted ", any conditions that make reliance on electronic benefit transfer systems described in section 2016(i) of this title impracticable," after "personnel" in second sentence.

Subsec. (i)(2)(E). Pub. L. 107–171, §4401(b)(2)(C), inserted ", or to any alien who is under 18 years of age" before period at end.

Subsec. (k)(4)(B). Pub. L. 107–171, §4105(b)(2), substituted "subsection (e)(6) of this section" for "subsection (e)(7) of this section".

Subsec. (n). Pub. L. 107–171, §4101(b)(2), added subsec. (n).

2000—Subsec. (e)(7)(B)(iii) to (vi). Pub. L. 106–387, §1(a) [title VIII, §846(a)], added cls. (iii) to (vi) and struck out former cls. (iii) and (iv) which read as follows:

"(iii) for fiscal years 1999 and 2000, $275, $478, $393, $334, and $203 per month, respectively; and

"(iv) for fiscal year 2001 and each subsequent fiscal year, $300, $521, $429, $364, and $221 per month, respectively."

Subsec. (g)(2)(B)(iv). Pub. L. 106–387, §1(a) [title VIII, §847(a)(1)], substituted "subparagraphs (C) and (D)" for "subparagraph (C)" and "to the extent that the fair market value of the vehicle exceeds $4,650; and" for "to the extent that the fair market value of the vehicle exceeds $4,600 through September 30, 1996, and $4,650 beginning October 1, 1996; and".

Subsec. (g)(2)(D). Pub. L. 106–387, §1(a) [title VIII, §847(a)(2)], added subpar. (D).

1998—Subsec. (l). Pub. L. 105–277, §101(f) [title VIII, §405(f)(2)(A)], substituted "Notwithstanding section 181(a)(2) of the Workforce Investment Act of 1998, earnings to individuals participating in on-the-job training under title I of the Workforce Investment Act of 1998" for "Notwithstanding section 1552(b) of title 29 or section 181(a)(2) of the Workforce Investment Act of 1998, earnings to individuals participating in on-the-job training programs under section 1604(b)(1)(C) or 1644(c)(1)(A) of title 29 or in on-the-job training under title I of the Workforce Investment Act of 1998".

Pub. L. 105–277, §101(f) [title VIII, §405(d)(2)(A)], substituted "Notwithstanding section 1552(b) of title 29 or section 181(a)(2) of the Workforce Investment Act of 1998, earnings to individuals participating in on-the-job training programs under section 1604(b)(1)(C) or 1644(c)(1)(A) of title 29 or in on-the-job training under title I of the Workforce Investment Act of 1998" for "Notwithstanding section 1552(b) of title 29, earnings to individuals participating in on-the-job training programs under section 1604(b)(1)(C) or section 1644(c)(1)(A) of title 29".

1996—Subsec. (a). Pub. L. 104–193, §109(a)(1), substituted "program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)" for "plan approved under part A of title IV of the Social Security Act".

Subsec. (b). Pub. L. 104–193, §806, inserted heading and substituted "Except as otherwise provided in this chapter, the Secretary" for "The Secretary".

Subsec. (d)(5). Pub. L. 104–193, §109(a)(2)(A), substituted "assistance under a State program funded" for "assistance to families with dependent children".

Subsec. (d)(7). Pub. L. 104–193, §807, substituted "17" for "21".

Subsec. (d)(11). Pub. L. 104–193, §808(a), added cl. (11) and struck out former cl. (11) which read as follows: "any payments or allowances made for the purpose of providing energy assistance (A) under any Federal law, or (B) under any State or local laws, designated by the State or local legislative body authorizing such payments or allowances as energy assistance, and determined by the Secretary to be calculated as if provided by the State or local government involved on a seasonal basis for an aggregate period not to exceed six months in any year even if such payments or allowances (including tax credits) are not provided on a seasonal basis because it would be administratively infeasible or impracticable to do so,".

Subsec. (d)(13) to (16). Pub. L. 104–193, §109(a)(2)(B), redesignated cls. (14) to (16) as (13) to (15), respectively, and struck out former cl. (13) which read as follows: "at the option of a State agency and subject to subsection (m) of this section, child support payments that are excluded under section 402(a)(8)(A)(vi) of the Social Security Act (42 U.S.C. 602(a)(8)(A)(vi)),".

Subsec. (e). Pub. L. 104–193, §809(a), added subsec. (e) and struck out former subsec. (e) which provided for deductions in computing household income for purposes of determining eligibility and benefit levels for households containing an elderly or disabled member and determining benefit levels only for all other households.

Subsec. (g)(2). Pub. L. 104–193, §810, added par. (2) and struck out former par. (2) which read as follows: "The Secretary shall, in prescribing inclusions in, and exclusions from, financial resources, follow the regulations in force as of June 1, 1982 (other than those relating to licensed vehicles and inaccessible resources), and shall, in addition, include in financial resources any boats, snowmobiles, and airplanes used for recreational purposes, any vacation homes, any mobile homes used primarily for vacation purposes, any licensed vehicle (other than one used to produce earned income or that is necessary for transportation of a physically disabled household member and any other property, real or personal, to the extent that it is directly related to the maintenance or use of such vehicle) used for household transportation or used to obtain or continue employment to the extent that the fair market value of any such vehicle exceeds a level set by the Secretary, which shall be $4,500 through August 31, 1994, $4,550 beginning September 1, 1994, through September 30, 1995, $4,600 beginning October 1, 1995, through September 30, 1996, and $5,000 beginning October 1, 1996, as adjusted on such date and on each October 1 thereafter to reflect changes in the new car component of the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics for the 12-month period ending on June 30 preceding the date of such adjustment and rounded to the nearest $50, and, regardless of whether there is a penalty for early withdrawal, any savings or retirement accounts (including individual accounts). The Secretary shall exclude from financial resources the value of a vehicle that a household depends upon to carry fuel for heating or water for home use when such transported fuel or water is the primary source of fuel or water for the household."

Subsec. (j). Pub. L. 104–193, §109(a)(3), substituted "program funded under part A of title IV of the Act (42 U.S.C. 601 et seq.)" for "plan approved under part A of title IV of such Act (42 U.S.C. 601 et seq.)".

Subsec. (k)(1). Pub. L. 104–193, §808(b)(1), in subpar. (A), substituted "State program funded" for "State plan for aid to families with dependent children approved" and in subpar. (B), struck out ", not including energy or utility-cost assistance," before "under" in introductory provisions.

Subsec. (k)(2)(C). Pub. L. 104–193, §808(b)(2), added subpar. (C) and struck out former subpar. (C) which read as follows: "energy assistance;".

Subsec. (k)(2)(F) to (H). Pub. L. 104–193, §811, redesignated subpars. (G) and (H) as (F) and (G), respectively, and struck out former subpar. (F) which read as follows: "housing assistance payments made to a third party on behalf of the household residing in transitional housing for the homeless;".

Subsec. (k)(4). Pub. L. 104–193, §808(b)(3), added par. (4).

Subsec. (m). Pub. L. 104–193, §812, added subsec. (m).

Pub. L. 104–193, §109(a)(4), struck out subsec. (m) which read as follows: "If a State agency excludes payments from income for purposes of the food stamp program under subsection (d)(13) of this section, such State agency shall pay to the Federal Government, in a manner prescribed by the Secretary, the cost of any additional benefits provided to households in such State that arise under such program as the result of such exclusion."

1994—Subsec. (f)(2)(C). Pub. L. 103–225 substituted "clauses (i), (ii), and (iii)" for "clauses (i), (ii), (iii), and (iv)".

1993—Subsec. (d)(7). Pub. L. 103–66, §13911, substituted "who is an elementary or secondary school student, and who is 21 years of age or younger" for "who is a student, and who has not attained his eighteenth birthday".

Subsec. (e). Pub. L. 103–66, §13922(a), in cl. (1) of fourth sentence, substituted "$200 a month for each dependent child under 2 years of age and $175 a month for each other dependent" for "$160 a month for each dependent", and struck out ", regardless of the dependent's age," before "when such care enables a household member to accept".

Pub. L. 103–66, §13912(a)(1), in fourth sentence struck out ": Provided, That the amount of such excess shelter expense deduction shall not exceed $164 a month in the forty-eight contiguous States and the District of Columbia, and shall not exceed, in Alaska, Hawaii, Guam, and the Virgin Islands of the United States $285, $234, $199, and $121 a month, respectively, adjusted on October 1, 1988, and on each October 1 thereafter, to the nearest lower dollar increment to reflect changes in the shelter, fuel, and utilities components of housing costs in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics, as appropriately adjusted by the Bureau of Labor Statistics after consultation with the Secretary, for the twelve months ending the preceding June 30" after "deductions have been allowed".

Pub. L. 103–66, §13912(b)(2), which directed amendment of subsec. (e), as amended by section 13912(b)(1) of Pub. L. 103–66, by striking out the fifth and sixth sentences, could not be executed in view of amendment by Pub. L. 104–193. See 1996 Amendment note above and Effective Date of 1993 Amendment note below.

Pub. L. 103–66, §13912(b)(1), inserted new fifth and sixth sentences: "In the 15-month period ending September 30, 1995, such excess shelter expense deduction shall not exceed $231 a month in the 48 contiguous States and the District of Columbia, and shall not exceed, in Alaska, Hawaii, Guam, and the Virgin Islands of the United States, $402, $330, $280, and $171 a month, respectively. In the 15-month period ending December 31, 1996, such excess shelter expense deduction shall not exceed $247 a month in the 48 contiguous States and the District of Columbia, and shall not exceed, in Alaska, Hawaii, Guam, and the Virgin Islands of the United States, $429, $353, $300, and $182 a month, respectively."

Pub. L. 103–66, §13912(a)(2), in seventh sentence struck out "under clause (2) of the preceding sentence" after "shelter expense deduction".

Pub. L. 103–66, §13921, inserted at end: "Before determining the excess shelter expense deduction, all households shall be entitled to a deduction for child support payments made by a household member to or for an individual who is not a member of the household if such household member was legally obligated to make such payments, except that the Secretary is authorized to prescribe by regulation the methods, including calculation on a retrospective basis, that State agencies shall use to determine the amount of the deduction for child support payments."

Subsec. (g)(2). Pub. L. 103–66, §13924, inserted at end: "The Secretary shall exclude from financial resources the value of a vehicle that a household depends upon to carry fuel for heating or water for home use when such transported fuel or water is the primary source of fuel or water for the household."

Pub. L. 103–66, §13923, substituted "a level set by the Secretary, which shall be $4,500 through August 31, 1994, $4,550 beginning September 1, 1994, through September 30, 1995, $4,600 beginning October 1, 1995, through September 30, 1996, and $5,000 beginning October 1, 1996, as adjusted on such date and on each October 1 thereafter to reflect changes in the new car component of the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics for the 12-month period ending on June 30 preceding the date of such adjustment and rounded to the nearest $50" for "$4,500".

Subsec. (g)(3). Pub. L. 103–66, §13913, inserted at end: "The Secretary shall also exclude from financial resources any earned income tax credits received by any member of the household for a period of 12 months from receipt if such member was participating in the food stamp program at the time the credits were received and participated in such program continuously during the 12-month period."

Subsec. (k)(1)(B). Pub. L. 103–66, §13915, substituted "housing expenses, not including energy or utility-cost assistance," for "living expenses".

Subsec. (k)(2)(F). Pub. L. 103–66, §13914, amended subpar. (F) generally. Prior to amendment, subpar. (F) read as follows: "housing assistance payments made to a third party on behalf of a household residing in transitional housing for the homeless in an amount equal to 50 percent of the maximum shelter allowance provided to families not residing in such transitional housing under the States' plan for aid to families with dependent children approved under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), if the State agency calculates a shelter allowance to be paid under the State plan separate and apart from payments for other household needs even though it may be paid in combination with other allowances in some cases;".

1992—Subsec. (d)(16). Pub. L. 102–265 substituted "subparagraph (A)(iii) or (B)(iv) of section 1612(b)(4) of the Social Security Act (42 U.S.C. 1382a(b)(4))" for "section 1612(b)(4)(B)(iv) of the Social Security Act (42 U.S.C. 1382a(b)(4)(B)(iv))".

Subsec. (l). Pub. L. 102–367 substituted "section 1604(b)(1)(C) or section 1644(c)(1)(A) of title 29" for "section 1604(5) of title 29".

1991—Subsec. (a). Pub. L. 102–237, §902, substituted "based on income criteria comparable to or more restrictive than those under subsection (c)(2) of this section, and not limited to one-time emergency payments that cannot be provided for more than one consecutive month," for "appropriate for categorical treatment".

Subsec. (d)(2). Pub. L. 102–237, §941(2)(A), made technical amendment to reference to subsection (f) of this section involving corresponding provision of original act.

Subsec. (d)(3)(A). Pub. L. 102–237, §903(1)(A), substituted "awarded to a household member enrolled" for "to the extent that they are used for tuition and mandatory school fees (including the rental or purchase of any equipment, materials, and supplies required to pursue the course of study involved)".

Subsec. (d)(3)(B). Pub. L. 102–237, §903(1)(B), inserted "used for or" after "amount" and substituted "program, or other grantor, for tuition and mandatory fees (including the rental or purchase of any equipment, materials, and supplies related to the pursuit of the course of study involved)," for "or program for".

Subsec. (d)(12). Pub. L. 102–40 substituted "section 5312 of title 38" for "section 3112 of title 38".

Subsec. (d)(16). Pub. L. 102–237, §903(2), (3), added cl. (16).

Subsec. (g)(5). Pub. L. 102–237, §904, inserted at end "A resource shall be so identified if its sale or other disposition is unlikely to produce any significant amount of funds for the support of the household. The Secretary shall not require the State agency to require verification of the value of a resource to be excluded under this paragraph unless the State agency determines that the information provided by the household is questionable."

Subsec. (h)(1). Pub. L. 102–237, §941(2)(B), made technical amendment to references to sections 5170a and 5192 of title 42 to reflect change in reference to corresponding provision of original act.

Subsec. (j). Pub. L. 102–237, §905, amended subsec. (j) generally. Prior to amendment, subsec. (j) read as follows: "Notwithstanding subsections (a) through (i) of this section, a State agency may consider the resources of a household member who receives supplemental security income benefits under title XVI of the Social Security Act, aid to the aged, blind, or disabled under title I, X, XIV, or XVI of the Social Security Act or who receives benefits under a State plan approved under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) and whose income does not exceed the applicable income standard of eligibility described in subsection (c)(2) of this section to be exempt for purposes of satisfying the resource limitations prescribed under subsection (g) of this section if the resources are considered exempt for purposes of such title."

Subsec. (k)(2)(E). Pub. L. 102–237, §941(2)(C), realigned the margin.

Subsec. (k)(2)(F). Pub. L. 102–237, §906, inserted before semicolon at end ", if the State agency calculates a shelter allowance to be paid under the State plan separate and apart from payments for other household needs even though it may be paid in combination with other allowances in some cases".

1990—Subsec. (a). Pub. L. 101–624, §1714(2), inserted after second sentence "Except for sections 2015, 2025(e)(1), and the third sentence of section 2012(i) of this title, households in which each member receives benefits under a State or local general assistance program that complies with standards established by the Secretary for ensuring that the program is appropriate for categorical treatment shall be eligible to participate in the food stamp program."

Pub. L. 101–624, §1714(1), struck out "and beginning on December 23, 1985," before "households in which each member receives".

Subsec. (d)(3). Pub. L. 101–624, §1715(a)(1), inserted "(A)" after "the like" and substituted "(including the rental or purchase of any equipment, materials, and supplies required to pursue the course of study involved) at a recognized institution of post-secondary education, at a school for the handicapped, in a vocational education program, or in a program that provides for completion of a secondary school diploma or obtaining the equivalent thereof, (B) to the extent that they do not exceed the amount made available as an allowance determined by such school, institution, or program for books, supplies, transportation, and other miscellaneous personal expenses (other than living expenses), of the student incidental to attending such school, institution, or program, and (C)" for "at an institution of post-secondary education or school for the handicapped, and".

Subsec. (d)(5). Pub. L. 101–624, §1716, inserted "and any allowance a State agency provides no more frequently than annually to families with children on the occasion of those children's entering or returning to school or child care for the purpose of obtaining school clothes (except that no such allowance shall be excluded if the State agency reduces monthly assistance to families with dependent children under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) in the month for which the allowance is provided)" after "household".

Pub. L. 101–624, §1715(a)(2), inserted "and" after "1988),", struck out "non-Federal" after "no portion of any", and struck out "and no portion of any Federal educational loan on which payment is deferred, grant, scholarship, fellowship, veterans' benefits, and the like to the extent it provides income assistance beyond that used for tuition and mandatory school fees," before "shall be considered such reimbursement".

Subsec. (e). Pub. L. 101–624, §1717, inserted before period at end of last sentence ", shall rely on reasonable estimates of the member's expected medical expenses for the certification period (including changes that can be reasonably anticipated based on available information about the member's medical condition, public or private medical insurance coverage, and the current verified medical expenses incurred by the member), and shall not require further reporting or verification of a change in medical expenses if such a change has been anticipated for the certification period".

Pub. L. 101–624, §1715(b), inserted ", amounts made available and excluded for the expenses under subsection (d)(3) of this section," after "third party" in fourth sentence.

Subsec. (f)(2). Pub. L. 101–624, §1718(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows:

"(A) Households not required to submit monthly reports of their income and household circumstances under section 2015(c)(1) of this title shall have their income calculated on a prospective basis, as provided in paragraph (3)(A).

"(B) Households required to submit monthly reports of their income and household circumstances under section 2015(c)(1) of this title shall have their income calculated on a retrospective basis, as provided in paragraph (3)(B), except that in the case of the first month, or at the option of the State the first and second months, in a continuous period in which a household is certified, the State agency shall determine the amount of benefits on the basis of the household's income and other relevant circumstances in such first or second month."

Subsec. (g). Pub. L. 101–624, §1726(b)(2), inserted before period at end of par. (3) "and nonliquid resources necessary to allow the household to carry out a plan for self-sufficiency approved by the State agency that constitutes adequate participation in an employment and training program under section 2015(d) of this title".

Pub. L. 101–624, §1719(1), designated first through fourth sentences as pars. (1) to (4), respectively, and added par. (5).

Subsec. (h)(3). Pub. L. 101–624, §1720, added par. (3).

Subsec. (j). Pub. L. 101–624, §1719(2), substituted "the resources of a household member who receives supplemental security income benefits under title XVI of the Social Security Act, aid to the aged, blind, or disabled under title I, X, XIV, or XVI of the Social Security Act or who receives" for "a household in which all members of the household receive" and "be exempt for purposes of satisfying the resource limitations prescribed under subsection (g) of this section if the resources are considered exempt for purposes of such title" for "have satisfied the resource limitations prescribed under subsection (g) of this section".

Subsec. (k)(2)(F). Pub. L. 101–624, §1721, added subpar. (F) and struck out former subpar. (F) which read as follows: "housing assistance payments made to a third party on behalf of a household residing in temporary housing if the temporary housing unit provided for the household as a result of such assistance payments lacks facilities for the preparation and cooking of hot meals or the refrigerated storage of food for home consumption; or".

Subsec. (k)(2)(H). Pub. L. 101–624, §1722, added subpar. (H).

1988—Subsec. (a). Pub. L. 100–435, §201, struck out "during the period" before "beginning on December 23, 1985" and "and ending on September 30, 1989" after "beginning on December 23, 1985,".

Subsec. (d)(1). Pub. L. 100–435, §340(2), inserted "(notwithstanding its conversion in whole or in part to direct payments to households pursuant to any demonstration project carried out or authorized under Federal law including demonstration projects created by the waiver of provisions of Federal law)" after "to a household".

Pub. L. 100–435, §340(1), which directed that "and except as provided in subsection (k)," be struck out was executed by striking out "except as provided in subsection (k)," as the probable intent of Congress.

Subsec. (d)(5). Pub. L. 100–435, §404(f), inserted "(except for payments or reimbursements for such expenses made under an employment, education, or training program initiated under such title after September 19, 1988)" after "child care expenses".

Subsec. (d)(8). Pub. L. 100–232 inserted "cash donations based on need that are received from one or more private nonprofit charitable organizations, but not in excess of $300 in the aggregate in a quarter," after "or credits,".

Subsec. (d)(11). Pub. L. 100–435, §343, substituted "allowances made for the purpose of providing energy assistance (A) under any Federal law, or (B) under any State or local laws, designated" for "allowances made under (A) any Federal law for the purpose of providing energy assistance, or (B) any State or local laws for the purpose of providing energy assistance, designated".

Subsec. (d)(14). Pub. L. 100–435, §402, added cl. (14).

Subsec. (d)(15). Pub. L. 100–435, §403(a), added cl. (15).

Subsec. (e). Pub. L. 100–435, §403(b), in fourth sentence inserted "and expenses that are paid under section 2015(d)(4)(I) of this title for dependent care" after "third party" and substituted "$160 a month for each dependent" for "$160 a month".

Pub. L. 100–435, §351, inserted provisions at end respecting method of claiming recurring medical expense deduction.

Subsec. (f)(1)(A). Pub. L. 100–435, §341, inserted provisions relating to permitted averaging of income and expenses in calculation of household income from member self-employed in farming operation and substituted "first" for "preceding".

Subsec. (f)(2). Pub. L. 100–435, §202(a), added par. (2) and struck out former par. (2) which read as follows:

"(A) Household income for—

"(i) migrant farmworker households, and

"(ii) households—

"(I) that have no earned income, and

"(II) in which all adult members are elderly or disabled members,

shall be calculated on a prospective basis, as provided in paragraph (3)(A).

"(B) Household income for households that are permitted to report household circumstances at specified intervals less frequent than monthly under the first sentence of section 2015(c)(1) of this title, may, with the approval of the Secretary, be calculated by a State agency on a prospective basis, as provided in paragraph (3)(A) of this subsection.

"(C) Except as provided in subparagraphs (A) and (B), household income for households that have earned income and for households that include any member who has recent work history shall be calculated on a retrospective basis as provided in paragraph (3)(B).

"(D) Household income for all other households may be calculated, at the option of the State agency, on a prospective basis as provided in paragraph (3)(A) or on a retrospective basis as provided in paragraph (3)(B)."

Subsec. (g). Pub. L. 100–435, §342, inserted provisions at end relating to exclusion of farm property from financial resources.

Subsec. (h). Pub. L. 100–707 substituted "sections 5170a and 5192" for "section 5142(a)".

Subsec. (k)(2)(E) to (G). Pub. L. 100–387 added subpar. (E) and redesignated former subpars. (E) and (F) as (F) and (G), respectively.

1987—Subsec. (c). Pub. L. 100–77, §803(a), inserted "shall be adjusted each October 1 and" after first reference to "eligibility".

Subsec. (e). Pub. L. 100–77, §804(a), in second sentence substituted "(3)" for "and (3)" and "October 1, 1986" for "each October 1 thereafter", and inserted cl. (4).

Pub. L. 100–77, §805(a), inserted at end of third sentence ", except that such additional deduction shall not be allowed with respect to earned income that a household willfully or fraudulently fails (as proven in a proceeding provided for in section 2015(b) of this title) to report in a timely manner".

Pub. L. 100–77, §806(a), amended proviso in fourth sentence generally. Prior to amendment, the proviso read as follows: "That the amount of such excess shelter expense deduction shall not exceed $147 a month in the forty-eight contiguous States and the District of Columbia, and shall not exceed, in Alaska, Hawaii, Guam, and the Virgin Islands of the United States, $256, $210, $179, and $109 a month, respectively, adjusted on October 1, 1986, and on each October 1 thereafter, to the nearest lower dollar increment to reflect changes in the shelter (exclusive of homeowners' costs and maintenance and repair component of shelter costs), fuel, and utilities components of housing costs in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics, as appropriately adjusted by the Bureau of Labor Statistics after consultation with the Secretary, for the twelve months ending the preceding June 30."

Subsec. (k)(2). Pub. L. 100–77, §807, temporarily added subpar. (E) and redesignated former subpar. (E) as (F). See Effective and Termination Dates of 1987 Amendment note below.

1986—Subsec. (e)(B). Pub. L. 99–500 and Pub. L. 99–591 substituted "contained in clause (1)" for "for the excess shelter expense deduction contained in clause (2)".

1985—Subsec. (a). Pub. L. 99–198, §1507(a)(1), inserted sentence providing that, notwithstanding any other provisions of this chapter except sections 2015(b), 2015(d)(2), and 2015(g) and the third sentence of section 2012(i) of this title, and during the period beginning on December 23, 1985, and ending on September 30, 1989, households in which each member receives benefits under a State plan approved under part A of title IV of the Social Security Act, supplemental security income benefits under title XVI of the Social Security Act, or aid to the aged, blind, or disabled under title I, X, XIV, or XVI of the Social Security Act, shall be eligible to participate in the food stamp program.

Subsec. (d)(1). Pub. L. 99–198, §1508(1), inserted "except as provided in subsection (k) of this section," after "payable directly to a household,". Such amendment was duplicated exactly by section 1509(a)(1) of Pub. L. 99–198 except that the amendment by section 1509(a)(1) inserted an "and" at beginning of phrase inserted.

Pub. L. 99–198, §1509(a)(1), which directed that "and except as provided in subsection (k) of this section," be inserted after "payable directly to a household,", was not executed to text because it exactly duplicates the amendment made by section 1508(1) of Pub. L. 99–198 except that the amendment by section 1508(1) of Pub. L. 99–198 does not contain the "and" at beginning of phrase inserted.

Subsec. (d)(3). Pub. L. 99–198, §1509(a)(2), substituted "post-secondary education" for "higher education" and inserted "and to the extent loans include any obligation fees and insurance premiums,".

Subsec. (d)(5). Pub. L. 99–198, §1509(a)(3), inserted "no portion of any non-Federal educational loan on which payment is deferred, grant, scholarship, fellowship, veterans' benefits, and the like that are provided for living expenses, and no portion of any Federal educational loan on which payment is deferred, grant, scholarship, fellowship, veterans' benefits, and the like to the extent it provides income assistance beyond that used for tuition and mandatory school fees," after "child care expenses,".

Subsec. (d)(9). Pub. L. 99–198, §1509(a)(4), inserted ", but household income that otherwise is included under this subsection shall be reduced by the extent that the cost of producing self-employment income exceeds the income derived from self-employment as a farmer".

Subsec. (d)(10). Pub. L. 99–198, §1509(a)(5), inserted "except as otherwise provided in subsection (k) of this section".

Subsec. (d)(13). Pub. L. 99–198, §1510(1), added cl. (13).

Subsec. (e). Pub. L. 99–198, §1511(1), substituted "homeowners' costs and maintenance and repair component" for "homeownership component" in second sentence.

Pub. L. 99–198, §1511(2), substituted "20 per centum" for "18 per centum" in third sentence.

Pub. L. 99–198, §1511(3)(B), in cl. (1) of the fourth sentence substituted "$160 a month" for "the same as that for the excess shelter expense deduction contained in clause (2) of this subsection".

Pub. L. 99–198, §1511(3)(C), substituted "and (2)" for ", or (2)" in fourth sentence.

Pub. L. 99–198, §1511(3)(A), amended proviso in cl. (2) generally. Prior to amendment, proviso read as follows: "That the amount of such excess shelter expense deduction shall not exceed $115 a month in the forty-eight contiguous States and the District of Columbia, and shall not exceed, in Alaska, Hawaii, Guam, and the Virgin Islands of the United States, $200, $165, $140, and $85, respectively, adjusted (i) on October 1, 1983, to the nearest lower dollar increment to reflect changes in the shelter (exclusive of homeownership costs), fuel, and utilities components of housing costs in the Consumer Price Index for all urban consumers published by the Bureau of Labor Statistics, as appropriately adjusted by the Bureau of Labor Statistics after consultation with the Secretary, for the fifteen months ending the preceding March 31, (ii) on October 1, 1984, to the nearest lower dollar increment to reflect such changes for the fifteen months ending the preceding June 30, and (iii) on October 1, 1985, and each October 1 thereafter, to the nearest lower dollar increment to reflect such changes for the twelve months ending the preceding June 30,".

Pub. L. 99–198, §1511(3)(D), in fourth sentence struck out ", or (3) a deduction combining the dependent care and excess shelter expense deductions under clauses (1) and (2) of this subsection, the maximum allowable level of which shall not exceed the maximum allowable deduction under clause (2) of this subsection, on January 1, 1981, adjusted to the nearest $5 increment to reflect such changes for the eighteen-month period ending the preceding September 30, and, on January 1, 1982, adjusted to the nearest $5 to reflect such changes for the twelve months ending the preceding September 30 and the subsequent three months ending December 31 as projected by the Secretary in light of the best available data, and, on every January 1 thereafter, adjusted annually to the nearest $5 increment to reflect such changes for the nine months ending the preceding September 30 and the subsequent three months ending December 31 projected by the Secretary in light of the best available data".

Pub. L. 99–198, §1511(4), inserted five new sentences after the existing seventh sentence beginning, respectively, "If a State agency", "A State agency may use", "A State agency not electing", "For purposes of", and "A State agency shall allow", thereby repositioning existing sentence beginning "Households containing an elderly or disabled member" to a new position as 13th sentence of subsec. (e).

Subsec. (f)(1)(A). Pub. L. 99–198, §1512, inserted sentence at end providing that notwithstanding preceding sentence, if the averaged amount does not accurately reflect the household's actual monthly circumstances because the household has experienced a substantial increase or decrease in business earnings, the State agency shall calculate the self-employment income based on anticipated earnings.

Subsec. (f)(2)(A). Pub. L. 99–198, §1513(a)(1), amended subpar. (A) generally, inserting reference to households that have no earned income and in which all adult members are elderly or disabled members.

Subsec. (f)(2)(B). Pub. L. 99–198, §1513(a)(2), substituted "households that are permitted to report household circumstances at specified intervals less frequent than monthly under the first sentence of section 2015(c)(1) of this title, may, with the approval" for "households that (i) are permitted to report household circumstances at specified intervals less frequent than monthly under section 2015(c)(1) of this title, (ii) have no earned income and in which all adult members are elderly or disabled members, or (iii) are any other households, other than a migrant household, not required to report monthly or at less frequent intervals under section 2015(c)(1) of this title, may, with the approval".

Subsec. (f)(2)(C). Pub. L. 99–198, §1513(a)(3), substituted "Except as provided in subparagraphs (A) and (B), household income for households that have earned income and for households that include any member who has recent work history shall be calculated on a retrospective basis as provided in paragraph (3)(B)" for "Household income for all other households shall be calculated on a retrospective basis as provided in paragraph (3)(B)".

Subsec. (f)(2)(D). Pub. L. 99–198, §1513(a)(3), added subpar. (D).

Subsec. (g). Pub. L. 99–198, §1514(1), substituted "$2,000, or, in the case of a household which consists of or includes a member who is 60 years of age or older, if its resources exceed $3,000" for "$1,500, or, in the case of a household consisting of two or more persons, one of whom is age 60 or over, if its resources exceed $3,000".

Pub. L. 99–198, §1514(2), (3), inserted in second sentence "and inaccessible resources" after "relating to licensed vehicles" and "and any other property, real or personal, to the extent that it is directly related to the maintenance or use of such vehicle" after "physically disabled household member", and inserted provision directing the Secretary to exclude from financial resources the value of a burial plot for each member of a household.

Subsec. (h)(2). Pub. L. 99–198, §1515, amended par. (2) generally. Prior to amendment, par. (2) read as follows: "The Secretary shall establish a Food Stamp Disaster Task Force, to assist States in implementing and operating the disaster program, which shall be available to go into a disaster area and provide direct assistance to State and local officials."

Subsec. (k)(1), (2). Pub. L. 99–198, §1508(2), added subsec. (k) consisting of pars. (1) and (2).

Subsec. (k)(3). Pub. L. 99–198, §1509(b), added par. (3).

Subsec. (l). Pub. L. 99–198, §1509(c), added subsec. (l).

Subsec. (m). Pub. L. 99–198, §1510(2), added subsec. (m).

1983—Subsec. (f)(2). Pub. L. 98–204 added subpar. (B), and redesignated former subpar. (B) as (C).

1982—Subsec. (c). Pub. L. 97–253, §§145(c), 146(a), substituted provisions that the income standards of eligibility shall render a household ineligible for food stamps if the household's income, after certain exclusions and deductions, exceeds the poverty line, or, in the case of a household not including an elderly or disabled member (after the exclusions provided for in subsec. (d) but before the deductions provided for in subsec. (e)) exceeds such poverty line by more than 30 per centum, for former provisions that the income standards of eligibility were, for households containing a member who was sixty years of age or over or a member who received supplemental security income benefits under title XVI of the Social Security Act or disability and blindness payments under titles I, II, X, XIV, and XVI of the Social Security Act, 100 per centum, and for all other households, 130 per centum, of the nonfarm income poverty guidelines prescribed by the Office of Management and Budget adjusted annually pursuant to section 2971d of title 42, for the forty-eight States and the District of Columbia, Alaska, Hawaii, the Virgin Islands of the United States, and Guam, respectively.

Subsec. (d)(12). Pub. L. 97–253, §147, added cl. (12).

Subsec. (e). Pub. L. 97–253, §§143(b), 145(d), 146(b), 148, 149, in first sentence substituted reference for households containing an elderly or disabled member for reference to households described in subsec. (c)(1) of this section, substituted reference to October 1, 1983, for reference to July 1, 1983, and reference to the nearest lower dollar increment for reference to the nearest $5 increment, respectively, wherever appearing in second sentence and in the proviso of cl. (2) of fourth sentence, respectively, in fourth and seventh sentences and in par. (A) substituted reference to elderly or disabled members for references to members who were sixty years of age or over or who received supplemental security income benefits under title XVI of the Social Security Act or disability and blindness payments under titles I, II, X, XIV, and XVI of the Social Security Act, in par. (B) substituted reference to the fourth sentence of this subsection for former reference to the preceding sentence of this subsection, and inserted provisions that in computing the excess shelter expense deduction under cl. (2) of the preceding sentence, a State agency may use a standard utility allowance in accordance with regulations promulgated by the Secretary, except that a State agency may use an allowance which does not fluctuate within a year to reflect seasonal variations, and that an allowance for a heating or cooling expense may not be used for a household that does not incur a heating or cooling expense, as the case may be, or does incur a heating or cooling expense but is located in a public housing unit which has central utility meters and charges households, with regard to such expense, only for excess utility costs, and that no such allowance may be used for a household that shares such expense with, and lives with, another individual not participating in the food stamp program, another household participating in the food stamp program, or both, unless the allowance is prorated between the household and the other individual, household, or both.

Subsec. (f)(2)(A). Pub. L. 97–253, §189(a), corrected a typographical error by substituting "prospective" for "propsective".

Subsec. (f)(4). Pub. L. 97–253, §150, inserted "(except the provisions of paragraph (2)(A))" after "of this subsection".

Subsec. (g). Pub. L. 97–253, §§151, 152(a), substituted "June 1, 1982" for "June 1, 1977", substituted "any licensed vehicle" for "and any licensed vehicle", struck out the designation "(1)" before "include in financial resources", substituted "$4,500, and, regardless of whether there is a penalty for early withdrawal, any savings or retirement accounts (including individual accounts)." for "$4,500," and struck out provision requiring the Secretary to study and develop means of improving the effectiveness of the resource requirements adopted under this subsection in limiting participation to households in need of food assistance, and implement and report the results of such study and the Secretary's plans to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate no later than June 1, 1978.

Subsec. (j). Pub. L. 97–253, §153, added subsec. (j).

1981—Subsec. (b). Pub. L. 97–35, §116(a)(1), struck out reference to Puerto Rico.

Subsec. (c). Pub. L. 97–35, §§104(a)(1), 116(a)(1), added cls. (1) and (2) and struck out reference to Puerto Rico.

Subsec. (d). Pub. L. 97–98, §§1305, 1306, inserted in cl. (5) a proviso that no portion of benefits provided under title IV–A of the Social Security Act, to the extent it is attributable to an adjustment for work-related or child care expenses, be considered such reimbursement, substituted in cl. (10) "any other Federal law" for "any other law", and inserted in cl. (11) provision requiring that State and local laws be designated as energy assistance and determined by the Secretary to be calculated as if provided on a seasonal basis for an aggregate period not to exceed six months in any year even if not so provided on such basis.

Pub. L. 97–35, §§107(c), 2611, struck out "(2)" after "(f)" in cl. (2), struck out cl. (10) relating to increased home energy costs during fiscal year 1981, and redesignated cl. (11), relating to income specifically excluded from consideration by any other law, as cl. (10).

Subsec. (e). Pub. L. 97–98, §1307, inserted ", with respect to expenses other than expenses paid on behalf of the household by a third party," after "entitled" in two places.

Pub. L. 97–35, §§104(a)(2), 105, 106, 115, 116(a)(1), completely revised and reorganized provisions to provide for computation of standard deduction of $85 per month instead of standard deduction of $60 per month and accompanying determinations respecting adjustments, applicability, etc., for computation.

Subsec. (f). Pub. L. 97–35, §107(a), completely revised and reorganized provisions to provide for calculation of household income through a prospective or retrospective basis instead of calculation of household income by the State agency, and accompanying determination respecting criteria, methodologies, etc., for calculation.

Subsec. (f)(2)(B). Pub. L. 97–35, §107(b), substituted provisions requiring calculation on a retrospective basis, for provisions requiring calculation on either a retrospective or prospective basis as elected by the State agency.

Subsec. (g). Pub. L. 97–98, §1309, inserted "(other than those relating to licensed vehicles)" after "June 1, 1977".

Subsec. (i). Pub. L. 97–98, §1308, added subsec. (i).

1980—Subsec. (c). Pub. L. 96–249, §137, struck out provisions requiring that the income poverty guidelines for the period commencing July 1, 1978, be made as up to date as possible by multiplying the income poverty guidelines for 1977 by the change between the average 1977 Consumer Price Index and the Consumer Price Index for March 1978, utilizing the most current procedures which have been used by the Office of Management and Budget, and that the income poverty guidelines for future periods be similarly adjusted.

Subsec. (d). Pub. L. 96–249, §§102, 112, inserted in cl. (2) "subject to modification by the Secretary in light of subsection (f)(2) of this section," after "quarter," and added cl. (11), relating to energy assistance payments or allowances.

Pub. L. 96–223 added cl. (10) and redesignated former cl. (10), relating to income specifically excluded from consideration by any other law, as cl. (11).

Subsec. (e). Pub. L. 96–249, §§103, 136, substituted provisions requiring that the standard deduction be adjusted every Jan. 1 to the nearest $5 to reflect changes in the Consumer Price Index for all urban consumers for items other than food for the last 12 months ending the preceding Sept. 30 for provisions requiring that the standard deduction be adjusted every July 1 and Jan. 1 and provisions requiring that the excess shelter expense deduction be adjusted every Jan. 1 to the nearest $5 increment to reflect changes in the shelter, fuel, and utilities components of housing costs in the Consumer Price Index for all urban consumers for provisions requiring that the excess shelter expense deduction be adjusted annually as of July 1.

Pub. L. 96–249, §§104, 105, increased monthly maximum deduction per household for dependent care expenses related to employment, or employment related training or education from $75 to $90, decreased the threshold amount of the excess medical expense for the elderly, blind, and disabled from $35 to $25, and extended availability of the excess medical expense deduction to blind and disabled persons and their spouses in Puerto Rico, Guam, and the Virgin Islands, when they receive cash welfare payments through programs equivalent to the Social Security Income program. See Repeals note below.

Subsec. (f). Pub. L. 96–249, §107, inserted provisions giving States the option of determining program eligibility and benefits by using income received in a previous month, following standards prescribed by the Secretary.

Subsec. (g). Pub. L. 96–249, §§108, 138, substituted "$1,500" for "$1,750", inserted "or that is necessary for transportation of a physically disabled household member" after "used to produce earned income", and struck out "or to transport disabled household members" after "or continue employment".

1979—Subsec. (e). Pub. L. 96–58 inserted provisions allowing for an excess medical expense deduction, a dependent care deduction, and an excess shelter expense deduction for elderly persons and persons receiving supplemental security income benefits or disability payments under the Social Security Act.

1977—Subsec. (a). Pub. L. 95–113 substituted reference to a more nutritious diet for reference to a nutritionally adequate diet, inserted provision that assistance under the program be furnished to all eligible households making application for participation, inserted reference to other financial resources held singly or in joint ownership, and struck out provisions excepting the limitation of the section in the case of disaster victims.

Subsec. (b). Pub. L. 95–113 inserted parenthetical reference to income standards for Alaska, Hawaii, Guam, Puerto Rico, and the Virgin Islands of the United States established pursuant to subsecs. (c) and (e) of this section, inserted provision that no State agency may impose standards for participation in the program additional to those meeting the eligibility standards established by the Secretary, and struck out provisions that had dealt with specific areas of income and financial resources for eligible households. See subsecs. (d) to (h).

Subsec. (c). Pub. L. 95–113 substituted provisions covering guidelines with regard to income standards for provisions covering employment of able-bodied adults in eligible households.

Subsec. (d). Pub. L. 95–113 substituted provisions specifying the specific items making up household income for provisions that required that the Secretary establish uniform national standards.

Subsecs. (e) to (h). Pub. L. 95–113 added subsecs. (e) to (h).

1973—Subsec. (b). Pub. L. 93–86, §3(g), (h), inserted provisos relating to payments in kind received from an employer by members of a household as bearing upon the promulgation of uniform national standards, provision limiting the authority of the Secretary to establish temporary emergency standards of eligibility to the duration of the emergency, and the provision authorizing such standards for households that are victims of a mechanical disaster disrupting the distribution of coupons.

Subsec. (c). Pub. L. 93–86, §3(e), inserted definition of "able-bodied adult person".

Subsec. (d). Pub. L. 93–86, §3(d), added subsec. (d).

1971—Subsec. (a). Pub. L. 91–671 inserted introductory phrase "Except for the temporary participation of households that are victims of a disaster as provided in subsection (b) of this section" and provision respecting other financial resources as being a limitation factor and substituted "in permitting them to purchase" for "in the attainment of".

Subsec. (b). Pub. L. 91–671 substituted provisions for establishment of uniform national standards of eligibility for participation by households in the food stamp program and minimum criteria of eligibility, ineligibility of any household which includes a member claimed as a dependent child for Federal income tax purposes by a taxpayer who is not a member of an eligible household, temporary emergency standards of eligibility, and special standards of eligibility and coupon allotment schedules in Puerto Rico and the Virgin Islands, not exceeding standards of eligibility or coupon allotment schedules of the States for prior establishment of standards of eligibility by the State agency, including maximum income limitations and limitation on resources to be allowed eligible households, and approval of such standards by the Secretary.

Subsec. (c). Pub. L. 91–671 added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date of 2014 Amendment

Amendment by Pub. L. 113–128 effective on the first day of the first full program year after July 22, 2014 (July 1, 2015), see section 506 of Pub. L. 113–128, set out as an Effective Date note under section 3101 of Title 29, Labor.

Pub. L. 113–79, title IV, §4006(c), Feb. 7, 2014, 128 Stat. 787, provided that:

"(1) In general.—Except as provided in paragraph (2), this section [amending this section and section 8624 of Title 42, The Public Health and Welfare] and the amendments made by this section shall—

"(A) take effect 30 days after the date of enactment of this Act [Feb. 7, 2014]; and

"(B) apply with respect to certification periods that begin after that date.

"(2) State option to delay implementation for current recipients.—A State may, at the option of the State, implement a policy that eliminates or reduces the effect of the amendments made by this section on households that received a standard utility allowance as of the date of enactment of this Act, for not more than a 5-month period beginning on the date on which the amendments would otherwise apply to the respective household."

Pub. L. 113–79, title IV, §4008(c), Feb. 7, 2014, 128 Stat. 788, provided that: "The amendments made by this section [amending this section and section 2015 of this title] shall not apply to a conviction if the conviction is for conduct occurring on or before the date of enactment of this Act [Feb. 7, 2014]."

Pub. L. 113–79, title IV, §4022(c)(1), Feb. 7, 2014, 128 Stat. 808, provided that: "The amendments made by this section [amending this section and sections 2025 and 2026 of this title] (other than the amendments made by subsection (a)(2) [amending section 2025 of this title]) shall apply beginning on the date of enactment of this Act [Feb. 7, 2014]."

Effective Date of 2008 Amendment

Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, except as otherwise provided, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Amendment by sections 4001(b), 4002(a)(2), 4101–4104, and 4115(b)(3) of Pub. L. 110–246 effective Oct. 1, 2008, see section 4407 of Pub. L. 110–246, set out as a note under section 1161 of Title 2, The Congress.

Effective Date of 2002 Amendment

Pub. L. 107–171, title IV, §4108(b), May 13, 2002, 116 Stat. 309, provided that: "The amendments made by this section [amending this section] take effect on the date of enactment of this Act [May 13, 2002]."

Pub. L. 107–171, title IV, §4401(b)(3), May 13, 2002, 116 Stat. 333, provided that: "The amendments made by this subsection [amending this section and sections 1612, 1613, and 1631 of Title 8, Aliens and Nationality] take effect on October 1, 2003."

Amendment by sections 4101–4107 and 4112(b)(2) of Pub. L. 107–171 effective Oct. 1, 2002, except as otherwise provided, see section 4405 of Pub. L. 107–171, set out as an Effective Date note under section 1161 of Title 2, The Congress.

Effective Date of 2000 Amendment

Pub. L. 106–387, §1(a) [title VIII, §846(b)], Oct. 28, 2000, 114 Stat. 1549, 1549A–66, provided that:

"(1) Except as provided in paragraph (2), the amendment made by this section [amending this section] shall take effect on March 1, 2001.

"(2) The amendment made by this section shall not apply with respect to certification periods beginning before March 1, 2001."

Pub. L. 106–387, §1(a) [title VIII, §847(b)], Oct. 28, 2000, 114 Stat. 1549, 1549A–66, provided that:

"(1) Except as provided in paragraph (2), the amendments made by this section [amending this section] shall take effect on July 1, 2001.

"(2) The amendments made by this section shall not apply with respect to certification periods beginning before July 1, 2001."

Effective Date of 1998 Amendment

Amendment by section 101(f) [title VIII, §405(d)(2)(A)] of Pub. L. 105–277 effective Oct. 21, 1998, and amendment by section 101(f) [title VIII, §405(f)(2)(A)] of Pub. L. 105–277 effective July 1, 2000, see section 101(f) [title VIII, §405(g)(1), (2)(B)] of Pub. L. 105–277, set out as a note under section 3502 of Title 5, Government Organization and Employees.

Effective Date of 1996 Amendment

Amendment by section 109(a) of Pub. L. 104–193 effective July 1, 1997, with transition rules relating to State options to accelerate such date, rules relating to claims, actions, and proceedings commenced before such date, rules relating to closing out of accounts for terminated or substantially modified programs and continuance in office of Assistant Secretary for Family Support, and provisions relating to termination of entitlement under AFDC program, see section 116 of Pub. L. 104–193, as amended, set out as an Effective Date note under section 601 of Title 42, The Public Health and Welfare.

Effective Date of 1993 Amendment

Amendment by section 13923 of Pub. L. 103–66 effective, and to be implemented beginning on, Oct. 1, 1993, see section 13971(a) of Pub. L. 103–66, set out as a note under section 2025 of this title.

Amendment by section 13912(a), (b)(1) of Pub. L. 103–66 effective, and to be implemented beginning on, July 1, 1994, see section 13971(b)(3) of Pub. L. 103–66, set out as a note under section 2025 of this title.

Amendment by sections 13911, 13913 to 13915, 13922(a), and 13924 of Pub. L. 103–66 effective, and to be implemented beginning on, Sept. 1, 1994, see section 13971(b)(4) of Pub. L. 103–66, set out as a note under section 2025 of this title.

Amendment by section 13921 of Pub. L. 103–66 effective, and to be implemented beginning on, Sept. 1, 1994, except that State agencies to implement such amendment not later than Oct. 1, 1995, see section 13971(b)(5) of Pub. L. 103–66, set out as a note under section 2025 of this title.

Amendment by section 13912(b)(2) of Pub. L. 103–66, effective, and to be implemented beginning on, Jan. 1, 1997, see section 13971(b)(6) of Pub. L. 103–66, set out as a note under section 2025 of this title.

Effective Date of 1992 Amendments

Amendment by Pub. L. 102–367 effective July 1, 1993, see section 701(a) of Pub. L. 102–367, formerly set out as a note under section 1501 of Title 29, Labor.

Pub. L. 102–265, §1(b), Mar. 26, 1992, 106 Stat. 90, as amended by Pub. L. 110–234, title IV, §4002(b)(1)(B), (D), (2)(OO), May 22, 2008, 122 Stat. 1096, 1098; Pub. L. 110–246, §4(a), title IV, §4002(b)(1)(B), (D), (2)(OO), June 18, 2008, 122 Stat. 1664, 1857, 1859, provided that:

"(1) In general.—The amendment made by subsection (a) [amending this section] shall take effect on the earlier of—

"(A) December 13, 1991;

"(B) October 1, 1990, for supplemental nutrition assistance program benefits households for which the State agency knew, or had notice, that a member of the household had a plan for achieving self-support as provided under section 1612(b)(4)(A)(iii) of the Social Security Act (42 U.S.C. 1382a(b)(4)(A)(iii)); or

"(C) beginning on the date that a fair hearing was requested under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) contesting the denial of an exclusion for supplemental nutrition assistance program benefits purposes for amounts necessary for the fulfillment of such a plan for achieving self-support.

"(2) Limitation on application of section.—Notwithstanding section 11(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2020(b)), no State agency shall be required to search its files for cases to which the amendment made by subsection (a) applies, except where the excludability of amounts described in section 5(d)(16) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(d)(16)) was raised with the State agency prior to December 13, 1991."

Effective Date of 1991 Amendment

Amendment by sections 902, 903(1), (2), 904–906, and 941(2) of Pub. L. 102–237 effective and to be implemented no later than Feb. 1, 1992, and amendment by section 903(3) of Pub. L. 102–237 effective on the earlier of Dec. 13, 1991, Oct. 1, 1990, for certain supplemental nutrition assistance program benefits households, or beginning on date of request for hearing where exclusion of certain amounts for supplemental nutrition assistance program benefits purposes was denied, with limitation on application of amendment, see section 1101(d)(1), (2) of Pub. L. 102–237, set out as a note under section 1421 of this title.

Effective Date of 1990 Amendment

Amendment by sections 1714(1), 1715, 1717, 1719, 1720, and 1726(b)(2) of Pub. L. 101–624 effective and implemented first day of month beginning 120 days after publication of implementing regulations to be promulgated not later than Oct. 1, 1991, amendment by section 1714(2) of Pub. L. 101–624 effective and implemented first day of month beginning 120 days after promulgation of implementing regulations to be promulgated not later than Oct. 1, 1991, in case of State general assistance program, and Apr. 1, 1992, in case of local general assistance program, amendment by sections 1716 and 1722 of Pub. L. 101–624 effective and implemented first day of month beginning 120 days after promulgation of implementing regulations to be promulgated not later than Apr. 1, 1991, amendment by section 1718(a) of Pub. L. 101–624 effective Nov. 28, 1990, and amendment by section 1721 of Pub. L. 101–624 effective Oct. 1, 1990, see section 1781 of Pub. L. 101–624, set out as a note under section 2012 of this title.

Effective Date of 1988 Amendments

Amendment by sections 201, 202(a), 403, and 404(f) of Pub. L. 100–435 to be effective and implemented on Oct. 1, 1988, amendment by sections 340 to 342 and 351 of Pub. L. 100–435 to be effective and implemented on July 1, 1989, amendment by section 343 of Pub. L. 100–435 to be effective and implemented on Sept. 19, 1988, and amendment by section 402 of Pub. L. 100–435 to be effective and implemented on Jan. 1, 1989, except that amendment by sections 201, 341, 342, 351, 402, 403, and 404(f) of Pub. L. 100–435 to become effective and implemented on Oct. 1, 1989, if final order is issued under section 902(b) of Title 2, The Congress, for fiscal year 1989 making reductions and sequestrations specified in the report required under section 901(a)(3)(A) of Title 2, see section 701(a), (b)(1), (2), (4), (c)(2) of Pub. L. 100–435, set out as a note under section 2012 of this title.

Pub. L. 100–387, title V, §501(b), Aug. 11, 1988, 102 Stat. 960, as amended by Pub. L. 110–234, title IV, §4002(b)(1)(B), (2)(JJ), May 22, 2008, 122 Stat. 1096, 1098; Pub. L. 110–246, §4(a), title IV, §4002(b)(1)(B), (2)(JJ), June 18, 2008, 122 Stat. 1664, 1857, 1859, provided that:

"(1) The amendments made by this section [amending this section] shall take effect on the date of enactment of this Act [Aug. 11, 1988].

"(2) The amendments made by this section shall not apply with respect to allotments issued under the Food and Nutrition Act of 2008 [this chapter] to any household for any month beginning before the effective period of this section begins."

Pub. L. 100–232, §2(b), Jan. 5, 1988, 101 Stat. 1566, provided that:

"(1) Effective Date.—Except as provided in paragraph (2), the amendment made by this section [amending this section] shall become effective upon the date of enactment of this Act [Jan. 5, 1988].

"(2) Application of Amendment.—The amendment made by this section shall not apply with respect to allotments issued under the Food Stamp Act of 1977 [now the Food and Nutrition Act of 2008, 7 U.S.C. 2011 et seq.] to any household for any month beginning before the date of enactment of this Act."

Effective and Termination Dates of 1987 Amendment

Pub. L. 100–77, title VIII, §803(b), July 22, 1987, 101 Stat. 534, provided that: "The amendment made by this section [amending this section] shall become effective on July 1, 1988."

Pub. L. 100–77, title VIII, §804(b), July 22, 1987, 101 Stat. 534, provided that: "The amendments made by this section [amending this section] shall become effective on October 1, 1987."

Pub. L. 100–77, title VIII, §805(b), July 22, 1987, 101 Stat. 535, provided that:

"(1) The amendment made by this section [amending this section] shall become effective and shall be implemented 45 days after the date of enactment of this Act [July 22, 1987].

"(2) The amendment made by this section shall not apply with respect to allotments issued under the Food Stamp Act of 1977 [now the Food and Nutrition Act of 2008, 7 U.S.C. 2011 et seq.] to any household for any month beginning before the effective date of the amendment."

Pub. L. 100–77, title VIII, §806(b), July 22, 1987, 101 Stat. 535, provided that:

"(1) The amendment made by this section [amending this section] shall become effective on October 1, 1987.

"(2) The amendment made by this section shall not apply with respect to an allotment issued under the Food Stamp Act of 1977 [now the Food and Nutrition Act of 2008, 7 U.S.C. 2011 et seq.] to a household for a certification period beginning before October 1, 1987."

Pub. L. 100–77, title VIII, §807(b), July 22, 1987, 101 Stat. 535, as amended by Pub. L. 101–220, §10, Dec. 12, 1989, 103 Stat. 1882; Pub. L. 110–234, title IV, §4002(b)(1)(B), (2)(E), May 22, 2008, 122 Stat. 1096, 1097; Pub. L. 110–246, §4(a), title IV, §4002(b)(1)(B), (2)(E), June 18, 2008, 122 Stat. 1664, 1857, 1858, provided that:

"(1) The amendments made by this section [amending this section] shall be effective and shall be implemented for the period beginning 90 days after the date of enactment of this Act [July 22, 1987] and ending September 30, 1990.

"(2) The Secretary shall adjust the level of benefits provided to households under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) during the period between September 30, 1989 and the effective date of this paragraph [Dec. 12, 1989] to ensure that the level of such benefits is no less than the level determined in accordance with the provisions of section 5(k)(2)(F) of the Food and Nutrition Act of 2008 [7 U.S.C. 2014(k)(2)(F)].

"(3) The amendments made by this section shall not apply with respect to allotments issued under the Food and Nutrition Act of 2008 [this chapter] to any household for any month beginning before the effective period of this section begins."

Effective Date of 1986 Amendment

Pub. L. 99–500, §101(a) [title VI, §638(b)], Oct. 18, 1986, 100 Stat. 1783, 1783–35, and Pub. L. 99–591, §101(a) [title VI, §638(b)], Oct. 30, 1986, 100 Stat. 3341, 3341–35, provided that:

"(1) Except as provided in paragraphs (2) and (3), the amendment made by subsection (a) [amending this section] shall become effective 30 days after the date of enactment of this Act [Oct. 18, 1986].

"(2) Except as provided in paragraph (3), the amendment made by subsection (a) shall not apply to an allotment issued to any eligible household under the Food Stamp Act of 1977 [now the Food and Nutrition Act of 2008] (7 U.S.C. 2011 et seq.) for any month beginning before the effective date of this subsection.

"(3) If a State elected before the date of enactment of this Act to compute household income in accordance with section 5(e) of the Food Stamp Act of 1977 [now the Food and Nutrition Act of 2008] (7 U.S.C. 2014(e)) (as amended by subsection (a)), the amendment made by subsection (a) shall become effective on May 1, 1986."

Effective Date of 1985 Amendment

Pub. L. 99–198, title XV, §§1511(2), (3), 1514(1), Dec. 23, 1985, 99 Stat. 1570, 1572, provided that the amendments made by sections 1511(2), (3) and 1514(1) are effective May 1, 1986.

Effective Date of 1982 Amendment

Amendment by Pub. L. 97–253 effective Sept. 8, 1982, see section 193(a) of Pub. L. 97–253, set out as a note under section 2012 of this title.

Effective Date of 1981 Amendments

Amendment by Pub. L. 97–35, except section 107(b) of Pub. L. 97–35 (which amended this section), effective on earlier of Sept. 8, 1982, or date such amendment became effective pursuant to section 117 of Pub. L. 97–35, set out as a note under section 2012 of this title, see section 192(a) of Pub. L. 97–253, set out as a note under section 2012 of this title.

Amendment by Pub. L. 97–98 effective on earlier of Sept. 8, 1982, or date such amendment became effective pursuant to section 1338 of Pub. L. 97–98, set out as a note under section 2012 of this title. See section 192(b) of Pub. L. 97–253, set out as a note under section 2012 of this title.

Amendment by Pub. L. 97–98 effective upon such date as Secretary of Agriculture may prescribe, taking into account need for orderly implementation, see section 1338 of Pub. L. 97–98, set out as a note under section 2012 of this title.

Pub. L. 97–35, title I, §116(a), Aug. 13, 1981, 95 Stat. 364, provided that the amendment made by section 116(a) is effective July 1, 1982.

Amendment by sections 104(a), 105, 106, 107(a), (c), and 115 of Pub. L. 97–35 effective and implemented upon such dates as Secretary of Agriculture may prescribe, taking into account need for orderly implementation, see section 117 of Pub. L. 97–35, set out as a note under section 2012 of this title.

Pub. L. 97–35, title I, §107(b), Aug. 13, 1981, 95 Stat. 361, provided that the amendment made by section 107(b) is effective Oct. 1, 1983.

Pub. L. 97–35, title XXVI, §2611, Aug. 13, 1981, 95 Stat. 902, provided that the amendment made by section 2611 is effective Oct. 1, 1981.

Effective Date of 1980 Amendment

Pub. L. 96–249, title I, §§104–106, May 26, 1980, 94 Stat. 358, provided that the amendments made by sections 104 to 106 are effective Oct. 1, 1981.

Effective Date of 1979 Amendment

Amendment by Pub. L. 96–58 to be implemented in all States by Jan. 1, 1980, but not to affect the rights or liabilities of Secretary, States, and applicant or participant households under provisions of this chapter as in effect on July 1, 1979, until implemented, see section 10(a) of Pub. L. 96–58, set out as a note under section 2012 of this title.

Effective Date of 1977 Amendment

Pub. L. 95–113, title XIII, §1301, Sept. 29, 1977, 91 Stat. 958, provided that the amendments made by section 1301 are effective Oct. 1, 1977.

Inapplicability of Subsection (j) Between December 23, 1985, and September 30, 1989

Pub. L. 99–198, title XV, §1507(a), Dec. 23, 1985, 99 Stat. 1568, provided that during the period beginning on Dec. 23, 1985, and ending on Sept. 30, 1989, subsec. (j) of this section would not apply.

Repeals

Sections 104 and 105 of Pub. L. 96–249, cited as a credit to this section, were repealed by Pub. L. 97–35, title I, §115, Aug. 13, 1981, 95 Stat. 364.

Section 313(c)(2) of Pub. L. 96–223, cited as a credit to this section, was repealed by Pub. L. 97–35, title XXVI, §2611, Aug. 13, 1981, 95 Stat. 902, effective Oct. 1, 1981.

Calculation of Household Income

Pub. L. 101–624, title XVII, §1718(b), Nov. 28, 1990, 104 Stat. 3785, as amended by Pub. L. 110–234, title IV, §4002(b)(1)(B), (2)(KK), May 22, 2008, 122 Stat. 1096, 1098; Pub. L. 110–246, §4(a), title IV, §4002(b)(1)(B), (2)(KK), June 18, 2008, 122 Stat. 1664, 1857, 1859, provided that:

"(1) In general.—Notwithstanding any other provision of law, during the period beginning October 1, 1988, and ending on the first day of the first month beginning at least 120 days after the date of enactment of this Act [Nov. 28, 1990], a State agency may elect to implement the amendment to section 5(f)(2) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(f)(2)) made by section 202(a) of the Hunger Prevention Act of 1988 (Public Law 100–435; 102 Stat. 1656) (with respect to the requirement that income be calculated on a prospective basis in the case of households that are not required to report monthly on their income and household circumstances).

"(2) Payment error rates.—Notwithstanding section 16(c) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c)), during the period referred to in paragraph (1), errors resulting solely from implementation by a State agency of the amendment referred to in paragraph (1) shall not be included in payment error rates determined under section 16(c) of such Act."

Study and Report to Congressional Committees on Implementation of Amendment to Subsection (a) by Pub. L. 99–198

Pub. L. 99–198, title XV, §1507(c), Dec. 23, 1985, 99 Stat. 1568, directed the Secretary of Agriculture to evaluate the implementation of the amendment made to subsec. (a) of this section by Pub. L. 99–198, §1507(a), and submit a report summarizing the results of such evaluation to Committees of Congress not later than 2 years after Dec. 23, 1985.

Study and Report Respecting Restricting Benefits of Food Stamp Program Based on Value of Assets of Participants

Pub. L. 96–243, May 16, 1980, 94 Stat. 345, directed the Department of Agriculture to study the effects of regulations which would limit benefits to participants in the food stamp program based upon value of the participants' assets, to recommend an appropriate level of asset value which would deny or reduce benefits to a participant and analyze the impacts of such a restriction, to consider appropriate exemptions to this restriction, to analyze the administrative burden which this will impose upon the States, and to report to Congress its findings in this matter not later than Jan. 15, 1981.

Study and Report of Impact and Advisability of Counting for Income Eligibility in Food Stamp Program Educational Loans, etc. Received by Individual or Household

Pub. L. 96–243, May 16, 1980, 94 Stat. 345, provided for the Secretary of Agriculture to study the impact and advisability of counting, for the purposes of income in determining eligibility: all educational loans on which payment is deferred; grants, fellowships, scholarships, and veteran's educational benefits used for the payment of tuition and mandatory fees at any educational institution of higher learning; and all housing subsidies including, but not limited to payments made by an outside party on behalf of an individual or household, and further provided for the Department of Agriculture to report to Congress its findings in this matter not later than Jan. 15, 1981.

1 See References in Text note below.
7 U.S.C. § 9055 (2024) — Title 7: AGRICULTURE / Chapter 115: AGRICULTURAL COMMODITY POLICY AND PROGRAMS / Subchapter III: DAIRY / Section 9055: Production history of participating dairy operations
Production history of participating dairy operations
Status: in_force

(a) Production history

(1) In general

Except as provided in paragraph (4) and subsection (b), when a dairy operation first registers to participate in dairy margin coverage, the production history of the dairy operation for dairy margin coverage is equal to the highest annual milk marketings of the participating dairy operation during any one of the 2011, 2012, or 2013 calendar years.

(2) Adjustment

In the subsequent calendar years ending before January 1, 2019, the Secretary shall adjust the production history of a participating dairy operation determined under paragraph (1) to reflect any increase in the national average milk production.

(3) Continued applicability of base production history

A production history established for a dairy operation under paragraph (1) shall be the base production history for the dairy operation in subsequent years (as adjusted under paragraph (2), as applicable).

(4) Base production history adjustment for participating dairy operations with production of less than 5,000,000 pounds

(A) In general

If the amount determined under paragraph (1) is less than 5,000,000 pounds, the production history of the dairy operation for dairy margin coverage shall be equal to—

(i) the amount determined under paragraph (1); plus

(ii) 75 percent of the amount described in subparagraph (B).

(B) Amount

The amount referred to in subparagraph (A)(ii) is, with respect to a dairy operation, the amount equal to—

(i) the production volume of such dairy operation for the 2019 milk marketing year; minus

(ii) the amount determined under paragraph (1).

(b) Election by new dairy operations

(1) Dairy operations with less than 1 year of production history

In the case of a participating dairy operation that has been in operation for less than a year, the participating dairy operation shall elect 1 of the following methods for the Secretary to determine the production history of the participating dairy operation:

(A) The volume of the actual milk marketings for the months the participating dairy operation has been in operation extrapolated to a yearly amount.

(B) An estimate of the actual milk marketings of the participating dairy operation based on the herd size of the participating dairy operation relative to the national rolling herd average data published by the Secretary.

(2) Dairy operations with 1 year or more of production history

In the case of a participating dairy operation that was not in operation prior to January 1, 2014, that has not established a production history, and that has been in operation for equal to or longer than 1 year, the participating dairy operation shall elect the annual milk marketings during any 1 calendar year to determine the production history of the participating dairy operation.

(3) Adjustment

The Secretary shall adjust the production history of a participating dairy operation determined under paragraph (1) or (2) to reflect any increase or decrease in the national average milk production relative to calendar year 2017.

(c) Required information

A participating dairy operation shall provide all information that the Secretary may require in order to establish the production history of the participating dairy operation for purposes of participating in dairy margin coverage.

(d) Limitation on changes to business structure

The Secretary may not make dairy margin coverage payments to a participating dairy operation if the Secretary determines that the participating dairy operation has reorganized the structure of such operation solely for the purpose of qualifying as a new operation under subsection (b).

(Pub. L. 113–79, title I, §1405, Feb. 7, 2014, 128 Stat. 690; Pub. L. 115–123, div. F, §60101(b)(3), Feb. 9, 2018, 132 Stat. 311; Pub. L. 115–334, title I, §1401(f), (k)(6), Dec. 20, 2018, 132 Stat. 4513, 4517; Pub. L. 118–22, div. B, title I, §102(c)(2)(A), Nov. 17, 2023, 137 Stat. 115.)

Editorial Notes

Amendments

2023—Subsec. (a)(1). Pub. L. 118–22, §102(c)(2)(A)(i), inserted "paragraph (4) and" before "subsection (b)".

Subsec. (a)(4). Pub. L. 118–22, §102(c)(2)(A)(ii), added par. (4).

2018—Subsec. (a)(1). Pub. L. 115–334, §1401(k)(6), substituted "dairy margin coverage" for "the margin protection program" in two places.

Subsec. (a)(2). Pub. L. 115–334, §1401(f)(1)(A)(i), substituted "In the subsequent calendar years ending before January 1, 2019" for "In subsequent years".

Subsec. (a)(3). Pub. L. 115–334, §1401(f)(1)(A)(ii), inserted ", as applicable" after "paragraph (2)".

Pub. L. 115–123 added par. (3).

Subsec. (b). Pub. L. 115–334, §1401(f)(1)(B), designated existing provisions as par. (1), inserted heading, redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, of par. (1), realigned margins, and added pars. (2) and (3).

Subsec. (c). Pub. L. 115–334, §1401(k)(6), substituted "dairy margin coverage" for "the margin protection program".

Subsec. (d). Pub. L. 115–334, §1401(f)(2), added subsec. (d).

Statutory Notes and Related Subsidiaries

Effective Date of 2023 Amendment

Amendment by Pub. L. 118–22 to be applied and administered as if enacted on Sept. 30, 2023, see section 102(g) of Pub. L. 118–22, set out in an Extension of Agricultural Programs note under section 9001 of this title.

Effective Date of 2018 Amendment

Amendment by Pub. L. 115–334 effective on Jan. 1, 2019, see section 1401(m) of Pub. L. 115–334, set out as a note under section 9051 of this title.

Amendment by Pub. L. 115–123 applicable beginning with the 2018 calendar year, see section 60101(b)(5) of Pub. L. 115–123, set out as a note under section 9051 of this title.
7 U.S.C. § 7613 (2024) — Title 7: AGRICULTURE / Chapter 103: AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION REFORM / Subchapter I: PRIORITIES, SCOPE, REVIEW, AND COORDINATION OF AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION / Section 7613: Relevance and merit of agricultural research, extension, and education funded by the Department
Relevance and merit of agricultural research, extension, and education funded by the Department
Status: in_force

(a) Review of National Institute of Food and Agriculture

(1) Peer review of research grants

The Secretary shall establish procedures that provide for scientific peer review of each agricultural research grant administered, on a competitive basis, by the National Institute of Food and Agriculture of the Department.

(2) Relevance and merit review of research, extension, and education grants

(A) Establishment of procedures

The Secretary shall establish procedures that provide for relevance and merit review of each agricultural research, extension, or education grant administered, on a competitive basis, by the National Institute of Food and Agriculture.

(B) Consultation with Advisory Board

The Secretary shall consult with the Advisory Board in establishing the merit review procedures on a continuous basis.

(3) Consideration

Peer and merit review procedures established under paragraphs (1) and (2) shall not take the offer or availability of matching funds into consideration.

(b) Advisory Board review

On an annual basis, the Advisory Board shall review—

(1) the relevance to the priorities established under section 7612(a) of this title of the funding of all agricultural research, extension, or education activities conducted or funded by the Department; and

(2) the adequacy of the funding.

(c) Requests for proposals

(1) Review results

As soon as practicable after the review is conducted under subsection (b) for a fiscal year, the Secretary shall consider the results of the review when formulating each request for proposals, and evaluating proposals, involving an agricultural research, extension, or education activity funded, on a competitive basis, by the Department.

(2) Input

In formulating a request for proposals described in paragraph (1) for a fiscal year, the Secretary shall solicit and consider input from persons who conduct or use agricultural research, extension, or education regarding the prior year's request for proposals.

(d) Scientific peer review of agricultural research

(1) Peer review procedures

The Secretary shall establish procedures that ensure scientific peer review of all research activities conducted by the Department.

(2) Review panel required

As part of the procedures established under paragraph (1), a review panel shall verify, at least once every 5 years, that each research activity of the Department and research conducted under each research program of the Department has scientific merit and relevance.

(3) Mission area

If the research activity or program to be reviewed is included in the research, educational, and economics mission area of the Department, the review panel shall consider—

(A) the scientific merit and relevance of the activity or research in light of the priorities established pursuant to section 7612 of this title; and

(B) the national or multistate significance of the activity or research.

(4) Composition of review panel

(A) In general

A review panel shall be composed of individuals with scientific expertise, a majority of whom are not employees of the agency whose research is being reviewed.

(B) Scientists from colleges and universities

To the maximum extent practicable, the Secretary shall use scientists from colleges and universities to serve on the review panels.

(5) Submission of results

The results of the panel reviews shall be submitted to the Advisory Board.

(e) Merit review

(1) 1862 and 1890 Institutions

Effective October 1, 1999, to be eligible to obtain agricultural research or extension funds from the Secretary for an activity, each 1862 Institution and 1890 Institution shall—

(A) establish a process for merit review of the activity; and

(B) review the activity in accordance with the process.

(2) 1994 Institutions

Effective October 1, 1999, to be eligible to obtain agricultural extension funds from the Secretary for an activity, each 1994 Institution shall—

(A) establish a process for merit review of the activity; and

(B) review the activity in accordance with the process.

(3) Hispanic-serving agricultural colleges and universities

To be eligible to obtain agricultural extension funds from the Secretary for an activity, each Hispanic-serving agricultural college and university shall—

(A) establish a process for merit review of the activity; and

(B) review the activity in accordance with such process.

(Pub. L. 105–185, title I, §103, June 23, 1998, 112 Stat. 527; Pub. L. 110–234, title VII, §§7129(c)(3), 7301, 7511(c)(30), May 22, 2008, 122 Stat. 1227, 1242, 1270; Pub. L. 110–246, §4(a), title VII, §§7129(c)(3), 7301, 7511(c)(30), June 18, 2008, 122 Stat. 1664, 1988, 2003, 2031; Pub. L. 113–79, title VII, §7301, Feb. 7, 2014, 128 Stat. 887.)

Editorial Notes

Codification

Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Section is comprised of section 103 of Pub. L. 105–185. Subsec. (f) of section 103 of Pub. L. 105–185 amended sections 361g, 3221, and 3222 of this title and repealed sections 346 and 3314 of this title.

Amendments

2014—Subsec. (a)(2). Pub. L. 113–79, §7301(1), substituted "Relevance and merit review of research, extension," for "Merit review of extension" in heading.

Subsec. (a)(2)(A). Pub. L. 113–79, §7301(2), inserted "relevance and" before "merit" and substituted "research, extension, or education" for "extension or education".

Subsec. (a)(2)(B). Pub. L. 113–79, §7301(3), inserted "on a continuous basis" after "procedures".

2008—Subsec. (a). Pub. L. 110–246, §7511(c)(30), substituted "National Institute of Food and Agriculture" for "Cooperative State Research, Education, and Extension Service" in heading and "the National Institute of Food and Agriculture" for "the Cooperative State Research, Education, and Extension Service" in text of pars. (1) and (2)(A).

Subsec. (a)(3). Pub. L. 110–246, §7301, added par. (3).

Subsec. (e)(3). Pub. L. 110–246, §7129(c)(3), added par. (3).

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, except as otherwise provided, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Amendment by section 7511(c)(30) of Pub. L. 110–246 effective Oct. 1, 2009, see section 7511(c) of Pub. L. 110–246, set out as a note under section 1522 of this title.
7 U.S.C. § 1941 (2024) — Title 7: AGRICULTURE / Chapter 50: AGRICULTURAL CREDIT / Subchapter II: OPERATING LOANS / Section 1941: Persons eligible for loans
Persons eligible for loans
Status: in_force

(a) In general

(1) Eligibility requirements

The Secretary may make and insure loans under this subchapter to farmers and ranchers in the United States, and to farm cooperatives and private domestic corporations, partnerships, joint operations, trusts, limited liability companies, and such other legal entities as the Secretary considers appropriate, that are controlled by farmers and ranchers and engaged primarily and directly in farming or ranching in the United States, subject to the conditions specified in this section. To be eligible for such loans, applicants who are individuals, or, in the case of cooperatives, corporations, partnerships, joint operations, trusts, limited liability companies, and such other legal entities, individuals holding a majority interest in such entity, must (A) be citizens of the United States, (B) for direct loans only, have either training or farming experience that the Secretary determines is sufficient to assure reasonable prospects of success in the proposed farming operations, taking into consideration all farming experience of the applicant, without regard to any lapse between farming experiences, (C) be or will become operators of not larger than family farms (or in the case of cooperatives, corporations, partnerships, joint operations, trusts, limited liability companies, and such other legal entities in which a majority interest is held by individuals who are related by blood or marriage, as defined by the Secretary, such individuals must be or will become either owners or operators of not larger than a family farm and at least one such individual must be or will become an operator of not larger than a family farm or, in the case of holders of the entire interest who are related by blood or marriage and all of whom are or will become farm operators, the ownership interest of each such holder separately constitutes not larger than a family farm, even if their interests collectively constitute larger than a family farm, as defined by the Secretary), and (D) be unable to obtain sufficient credit elsewhere to finance their actual needs at reasonable rates and terms, taking into consideration prevailing private and cooperative rates and terms in the community in or near which the applicant resides for loans for similar purposes and periods of time. In addition to the foregoing requirements of this subsection, in the case of corporations, partnerships, joint operations, trusts, limited liability companies, and such other legal entities, the family farm requirement of subparagraph (C) of the preceding sentence shall apply as well to the farm or farms in which the entity has an operator interest and the requirement of subparagraph (D) of the preceding sentence shall apply as well to the entity in the case of cooperatives, corporations, partnerships, joint operations, trusts, limited liability companies, and such other legal entities.

(2) Special rule

An entity that is an operator described in paragraph (1) that is owned, in whole or in part, by other entities, shall be considered to meet the direct ownership requirement imposed under paragraph (1) if at least 75 percent of the ownership interests of each embedded entity of the entity is owned directly or indirectly by the individuals that own the family farm.

(b) Rural youths in 4–H Clubs, Future Farmers of America, etc.

(1) Loans may also be made under this subchapter without regard to the requirements of clauses (2) and (3) of subsection (a) to youths to enable them to operate enterprises in connection with their participation in 4–H Clubs, Future Farmers of America, and similar organizations.

(2) A person receiving a loan under this subsection who executes a promissory note therefor shall thereby incur full personal liability for the indebtedness evidenced by such note in accordance with its terms free of any disability of minority.

(3) For loans under this subsection the Secretary may accept the personal liability of a cosigner of the promissory note in addition to the borrowers' personal liability.

(4) Youth enterprises not farming or ranching.—The operation of an enterprise by a youth under this subsection shall not be considered the operation of a farm or ranch under this chapter.

(5) Equitable considerations for default.—

(A) Debt forgiveness.—

(i) In general.—The Secretary may, on a case-by-case basis, provide debt forgiveness to a borrower for a loan made under this subsection if the borrower was unable to timely repay the loan due to circumstances beyond the control of the borrower, as determined by the Secretary, including any natural disaster, act of terrorism, or other man-made disaster that results in an inordinate level of damage or disruption severely affecting the borrower.

(ii) Eligibility for future loans.—Notwithstanding any other provision of law, debt forgiveness provided under this subparagraph shall not be used by any Federal agency in determining the eligibility of the borrower for any loan made or guaranteed by the agency.

(B) Education loans.—Notwithstanding any other provision of law, if a borrower becomes delinquent or is provided with debt forgiveness with respect to a youth loan made under this subsection, the borrower shall not become ineligible, as a result of the delinquency or debt forgiveness, to receive loans and loan guarantees from the Federal Government to pay for education expenses of the borrower.

(c) Direct loans

(1) In general

Subject to paragraphs (3) and (4), the Secretary may make a direct loan under this subchapter only to a farmer or rancher who—

(A) is a qualified beginning farmer or rancher;

(B) has not received a previous direct operating loan made under this subchapter; or

(C) has received a previous direct operating loan made under this subchapter during 6 or fewer years.

(2) Definition of direct operating loan

In this subsection, the term "direct operating loan" does not include—

(A) a loan made to a youth under subsection (b); or

(B) a microloan made to a beginning farmer or rancher or a veteran farmer or rancher (as defined in section 2279(e) 1 of this title).

(3) Transition rule

If, as of April 4, 1996, a farmer or rancher has received a direct operating loan under this subchapter during each of 4 or more previous years, the borrower shall be eligible to receive a direct operating loan under this subchapter during 3 additional years after April 4, 1996.

(4) Waivers

(A) Farm and ranch operations on tribal lands

The Secretary shall waive the limitation under paragraph (1)(C) or (3) for a direct loan made under this subchapter to a farmer or rancher whose farm or ranch land is subject to the jurisdiction of an Indian tribe and whose loan is secured by 1 or more security instruments that are subject to the jurisdiction of an Indian tribe if the Secretary determines that commercial credit is not generally available for such farm or ranch operations.

(B) Other farm and ranch operations

On a case-by-case determination not subject to administrative appeal, the Secretary may grant a borrower a waiver, 1 time only for a period of 2 years, of the limitation under paragraph (1)(C) or (3) for a direct operating loan if the borrower demonstrates to the satisfaction of the Secretary that—

(i) the borrower has a viable farm or ranch operation;

(ii) the borrower applied for commercial credit from at least 2 commercial lenders;

(iii) the borrower was unable to obtain a commercial loan (including a loan guaranteed by the Secretary); and

(iv) the borrower successfully has completed, or will complete within 1 year, borrower training under section 2006a of this title (from which requirement the Secretary shall not grant a waiver under section 2006a(f) of this title).

(5) Annual report on term limits on direct operating loans

(A) In general

The Secretary shall prepare a report annually that describes—

(i) the status of the direct operating loan program of the Department of Agriculture; and

(ii) the impact of term limits on direct loan borrowers.

(B) Demographic information

(i) In general

The report shall provide a demographic breakdown, on a State-by-State basis, of—

(I) all direct loan borrowers; and

(II) borrowers that have reached the eligibility limit for direct lending programs during the previous calendar year.

(ii) Demographic information

The available demographic information shall include, to the maximum extent practicable, a description of race or ethnicity, gender, age, type of farm or ranch, financial classification, number of years of indebtedness, veteran status, and other similar information, as determined by the Secretary.

(C) Additional content

In addition to information described in subparagraph (B), the report shall provide—

(i) a demographic analysis of the borrowers impacted by term limits;

(ii) information on the conditions impacting the direct lending portfolio of the Department of Agriculture, including impacts by region and agriculture sector, and credit availability within those regions and sectors;

(iii) to the maximum extent practicable, information on the status of borrower operations impacted by term limits; and

(iv) recommendations, if appropriate, to address any identifiable unmet credit needs.

(D) Submission

The Secretary shall—

(i) annually submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a copy of the report; and

(ii) make the report available to the public, including posting the report on the website of the Department of Agriculture.

(Pub. L. 87–128, title III, §311, Aug. 8, 1961, 75 Stat. 310; Pub. L. 92–419, title I, §120(a), Aug. 30, 1972, 86 Stat. 665; Pub. L. 95–334, title I, §114, Aug. 4, 1978, 92 Stat. 425; Pub. L. 97–98, title XVI, §1601(b), Dec. 22, 1981, 95 Stat. 1346; Pub. L. 99–198, title XIII, §§1301(a), 1302(b), 1303, Dec. 23, 1985, 99 Stat. 1518, 1519; Pub. L. 104–127, title VI, §§611, 661(f), Apr. 4, 1996, 110 Stat. 1087, 1107; Pub. L. 105–277, div. A, §101(a) [title VIII, §805(2)], Oct. 21, 1998, 112 Stat. 2681, 2681–39; Pub. L. 107–171, title V, §§5101, 5302(a), May 13, 2002, 116 Stat. 343, 344; Pub. L. 110–234, title V, §5101, May 22, 2008, 122 Stat. 1146; Pub. L. 110–246, §4(a), title V, §5101, June 18, 2008, 122 Stat. 1664, 1907; Pub. L. 113–79, title V, §§5101–5104, 5106(b)(1), Feb. 7, 2014, 128 Stat. 834–836, 838.)

Editorial Notes

References in Text

This chapter, referred to in subsec. (b)(4), was in the original "this title", meaning title III of Pub. L. 87–128, Aug. 8, 1961, 75 Stat. 307, known as the Consolidated Farm and Rural Development Act, which is classified principally to this chapter. For complete classification of title III to the Code, see Short Title note set out under section 1921 of this title and Tables.

Section 2279(e) of this title, referred to in subsec. (c)(2)(B), was redesignated section 2279(a) of this title by section 12301(b)(3) of Pub. L. 115–334.

Codification

Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Amendments

2014—Subsec. (a)(1). Pub. L. 113–79, §5101(1)–(5), designated existing provisions as par. (1) and inserted heading, in first sentence, substituted "limited liability companies, and such other legal entities as the Secretary considers appropriate," for "and limited liability companies", in second sentence, redesignated pars. (1) to (4) as subpars. (A) to (D), respectively, and substituted "limited liability companies, and such other legal entities" for "and limited liability companies" in two places, and, in third sentence, substituted "limited liability companies, and such other legal entities" for "and limited liability companies" in two places, "subparagraph (C)" for "clause (3)" and "subparagraph (D)" for "clause (4)".

Subsec. (a)(2). Pub. L. 113–79, §5101(6), added par. (2).

Subsec. (b)(1). Pub. L. 113–79, §5102, struck out "who are rural residents" after "youths".

Subsec. (b)(5). Pub. L. 113–79, §5103, added par. (5).

Subsec. (c)(2). Pub. L. 113–79, §5106(b)(1), added par. (2) and struck out former par. (2). Prior to amendment, text read as follows: "In this subsection, the term 'direct operating loan' shall not include a loan made to a youth under subsection (b) of this section."

Subsec. (c)(5). Pub. L. 113–79, §5104, added par. (5).

2008—Pub. L. 110–246, §5101, inserted section catchline and, in subsec. (a), inserted heading, substituted "The Secretary may" for "The Secretary is authorized to" in introductory provisions, and inserted ", taking into consideration all farming experience of the applicant, without regard to any lapse between farming experiences" after "farming operations" in cl. (2).

2002—Subsec. (a). Pub. L. 107–171, §5302(a), substituted "joint operations, trusts, and limited liability companies" for "and joint operations" wherever appearing.

Subsec. (c)(1). Pub. L. 107–171, §5101(1)(A), substituted "paragraphs (3) and (4)" for "paragraph (3)" in introductory provisions.

Subsec. (c)(1)(A). Pub. L. 107–171, §5101(1)(B), struck out "who has not operated a farm or ranch, or who has operated a farm or ranch for not more than 5 years" before semicolon.

Subsec. (c)(4). Pub. L. 107–171, §5101(2), added par. (4).

1998—Subsec. (a). Pub. L. 105–277 inserted "for direct loans only," before "have either" in cl. (2).

1996—Subsec. (b)(1). Pub. L. 104–127, §661(f), struck out "and for the purposes specified in section 1942 of this title" before period at end.

Subsec. (b)(4). Pub. L. 104–127, §611(b), added par. (4).

Subsec. (c). Pub. L. 104–127, §611(a), added subsec. (c) and struck out former subsec. (c) which read as follows: "The Secretary may not restrict eligibility for loans made or insured under this subchapter for purposes set forth in section 1942 of this title solely to borrowers of loans that are outstanding on December 23, 1985."

1985—Subsec. (a). Pub. L. 99–198, §1301(a), substituted—

(1) ", partnerships, and joint operations" for "and partnerships" wherever appearing after "corporations";

(2) ", partnerships, and joint operations" for ", and partnerships" wherever appearing after "corporations"; and

(3) "individuals" for "members, stockholders, or partners, as applicable," wherever appearing.

Pub. L. 99–198, §1303, in cl. (3) parenthetical, inserted provision treating blood or marriage related owner-operators of the entire farm interest as separate interest holders of not larger than family farms though collective ownership constitutes a larger than a family farm.

Subsec. (c). Pub. L. 99–198, §1302(b), added subsec. (c).

1981—Subsec. (a). Pub. L. 97–98 substituted "corporations and partnerships, the family farm" for "cooperatives, corporations, and partnerships, the family farm" and "as well to the entity in the case of cooperatives, corporations, and partnerships" for "as well to the entity".

1978—Pub. L. 95–334 substituted provisions setting forth eligibility criteria for loans to farmers and ranchers in the United States, and to farm cooperatives and private domestic corporations and partnerships controlled by farmers and ranchers and engaged primarily and directly in farming or ranching in the United States, for provisions setting forth eligibility criteria for loans to farmers and ranchers in the United States, Puerto Rico, and the Virgin Islands.

1972—Pub. L. 92–419 designated existing provisions as subsec. (a) and added subsec. (b).

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Effective Date of 1996 Amendment

Amendment by section 611 of Pub. L. 104–127 effective 90 days after Apr. 4, 1996, and amendment by section 661(f) of Pub. L. 104–127 effective Apr. 4, 1996, see section 663(a), (b) of Pub. L. 104–127, set out as a note under section 1922 of this title.

Effective Date of 1981 Amendment

Amendment by Pub. L. 97–98 effective Dec. 22, 1981, see section 1801 of Pub. L. 97–98, set out as an Effective Date note under section 4301 of this title.

Farm Operating Loan Eligibility

Pub. L. 106–224, title II, §255, June 20, 2000, 114 Stat. 424, provided that: "During the period beginning on the date of the enactment of this Act [June 20, 2000] and ending on December 31, 2002—

"(1) sections 311(c) and 319 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(c), 1949) shall have no force or effect; and

"(2) in making direct loans under subtitle B of that Act (7 U.S.C. 1941 et seq.), the Secretary shall give priority to a qualified beginning farmer or rancher who has not operated a farm or ranch, or who has operated a farm or ranch for not more than 5 years."

Authority of Secretary To Make or Guarantee Certain Loans

Pub. L. 104–134, title II, §2002, Apr. 26, 1996, 110 Stat. 1321–313, provided that: "Notwithstanding any other provision of law, the Secretary of Agriculture is hereby authorized to make or guarantee an operating loan under Subtitle B [7 U.S.C. 1941 et seq.] or an emergency loan under Subtitle C [7 U.S.C. 1961 et seq.] of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922 et. seq.), as in effect prior to April 4, 1996, to a loan applicant who was less than 90 days delinquent on April 4, 1996, if the loan applicant had submitted an application for the loan prior to April 5, 1996."

1989 Farm Operating Loans

Pub. L. 101–82, title III, §302, Aug. 14, 1989, 103 Stat. 582, required the Secretary of Agriculture to ensure that direct operating loans made or insured under this subchapter for 1990 crop production were to be made available to farmers and ranchers suffering major losses due to excess moisture, freeze, storm, or related condition occurring in 1989 or drought or related condition occurring in 1988 or 1989.

Similar provisions were contained in the following prior act:

Pub. L. 100–387, title III, §312, Aug. 11, 1988, 102 Stat. 948.

1 See References in Text note below.
7 U.S.C. § 4201 (2024) — Title 7: AGRICULTURE / Chapter 73: FARMLAND PROTECTION POLICY / Section 4201: General provisions
General provisions
Status: in_force

(a) Congressional statement of findings

Congress finds that—

(1) the Nation's farmland is a unique natural resource and provides food and fiber necessary for the continued welfare of the people of the United States;

(2) each year, a large amount of the Nation's farmland is irrevocably converted from actual or potential agricultural use to nonagricultural use;

(3) continued decrease in the Nation's farmland base may threaten the ability of the United States to produce food and fiber in sufficient quantities to meet domestic needs and the demands of our export markets;

(4) the extensive use of farmland for nonagricultural purposes undermines the economic base of many rural areas;

(5) Federal actions, in many cases, result in the conversion of farmland to nonagricultural uses where alternative actions would be preferred;

(6) the Department of Agriculture is the agency primarily responsible for the implementation of Federal policy with respect to United States farmland, assuring the maintenance of the agricultural production capacity of the United States, and has the personnel and other resources needed to implement national farmland protection policy; and

(7) the Department of Agriculture and other Federal agencies should take steps to assure that the actions of the Federal Government do not cause United States farmland to be irreversibly converted to nonagricultural uses in cases in which other national interests do not override the importance of the protection of farmland nor otherwise outweigh the benefits of maintaining farmland resources.

(b) Statement of purpose

The purpose of this chapter is to minimize the extent to which Federal programs contribute to the unnecessary and irreversible conversion of farmland to nonagricultural uses, and to assure that Federal programs are administered in a manner that, to the extent practicable, will be compatible with State, unit of local government, and private programs and policies to protect farmland.

(c) Definitions

As used in this chapter—

(1) the term "farmland" includes all land defined as follows:

(A) prime farmland is land that has the best combination of physical and chemical characteristics for producing food, feed, fiber, forage, oilseed, and other agricultural crops with minimum inputs of fuel, fertilizer, pesticides, and labor, and without intolerable soil erosion, as determined by the Secretary. Prime farmland includes land that possesses the above characteristics but is being used currently to produce livestock and timber. It does not include land already in or committed to urban development or water storage;

(B) unique farmland is land other than prime farmland that is used for production of specific high-value food and fiber crops, as determined by the Secretary. It has the special combination of soil quality, location, growing season, and moisture supply needed to economically produce sustained high quality or high yields of specific crops when treated and managed according to acceptable farming methods. Examples of such crops include citrus, tree nuts, olives, cranberries, fruits, and vegetables; and

(C) farmland, other than prime or unique farmland, that is of statewide or local importance for the production of food, feed, fiber, forage, or oilseed crops, as determined by the appropriate State or unit of local government agency or agencies, and that the Secretary determines should be considered as farmland for the purposes of this chapter;

(2) the term "State" means any of the fifty States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the Trust Territory of the Pacific Islands, or any territory or possession of the United States;

(3) the term "unit of local government" means the government of a county, municipality, town, township, village, or other unit of general government below the State level, or a combination of units of local government acting through an areawide agency under State law or an agreement for the formulation of regional development policies and plans;

(4) the term "Federal program" means those activities or responsibilities of a department, agency, independent commission, or other unit of the Federal Government that involve (A) undertaking, financing, or assisting construction or improvement projects; or (B) acquiring, managing, or disposing of Federal lands and facilities. The term "Federal program" does not include construction or improvement projects that on the effective date of this chapter are beyond the planning stage and are in either the active design or construction state; and

(5) the term "Secretary" means the Secretary of Agriculture.

(Pub. L. 97–98, title XV, §1540, Dec. 22, 1981, 95 Stat. 1341.)

Editorial Notes

References in Text

The effective date of this chapter, referred to in subsec. (c)(4), is six months after Dec. 22, 1981, see Effective Date note below.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 97–98, title XV, §1549, Dec. 22, 1981, 95 Stat. 1344, provided that: "The provisions of this subtitle [subtitle I (§§1539–1549) of title XV of Pub. L. 97–98, enacting this chapter] shall become effective six months after the date of enactment of this Act [Dec. 22, 1981]."

Short Title

Pub. L. 97–98, title XV, §1539, Dec. 22, 1981, 95 Stat. 1341, provided that: "This subtitle [subtitle I (§§1539–1549) of title XV of Pub. L. 97–98, enacting this chapter] may be cited as the 'Farmland Protection Policy Act'."

Farmland Protection

Pub. L. 101–624, title XIV, ch. 2, §§1465–1470B, Nov. 28, 1990, 104 Stat. 3616–3619, as amended by Pub. L. 102–237, title II, §§201(b), (c), 203, Dec. 13, 1991, 105 Stat. 1847, 1848, provided that:

"SEC. 1465. SHORT TITLE, PURPOSE, AND DEFINITION.

"(a) Short Title.—This chapter may be cited as the 'Farms for the Future Act of 1990'.

"(b) Purpose.—It is the purpose of this chapter to promote a national farmland protection effort to preserve our vital farmland resources for future generations.

"(c) Definitions.—As used in this chapter:

"(1) Allowable interest rate.—The term 'allowable interest rate' refers to the interest rate that the State trust fund pays on each eligible loan (including the interest paid by the State trust fund, State, or State agency on bonds or other obligations described in paragraph (2)).

"(2) Eligible loan.—The term 'eligible loan' means each loan made by lending institutions to each State trust fund, or to the State acting in conjunction with the State trust fund, to further the purposes of this chapter, and the proceeds from any issuance of obligations, or other bonded indebtedness, of any eligible State, the State trust fund, or any agency of an eligible State, except that no eligible loan shall bear an interest rate in excess of 10 percent per year.

"(3) Eligible state.—The term 'eligible State' means—

"(A) the State of Vermont; and

"(B) at the option of the Secretary and subject to appropriations, any State that—

"(i) operates or administers a land preservation fund that invests funds in the protection or preservation of farmland for agricultural purposes; and

"(ii) works in coordination with the governing bodies of counties, towns, townships, villages, or other units of general government below the State level, or with private nonprofit or public organizations, to assist in the preservation of farmland for agricultural purposes.

"(4) Lending institution.—The term 'lending institution' means any Federal or State chartered bank, savings and loan association, cooperative lending agency, other legally organized lending agency, State government or agency, political subdivision of a State, or any nonprofit conservation organization.

"(5) Program.—The term 'program' means the farmland preservation program established under this chapter to be known as the 'Agricultural Resource Conservation Demonstration Program'.

"(6) Secretary.—The term 'Secretary' means the Secretary of Agriculture.

"(7) State.—The term 'State' means any State of the United States, the Commonwealth of Puerto Rico, and the Virgin Islands of the United States.

"(8) State trust fund.—The term 'State trust fund' means any trust fund or an account established by an eligible State, or other public instrumentality of the eligible State, where such eligible State is approved to participate by the Secretary in the program under application procedures set forth in section 1466(j) or 1468.

"SEC. 1466. ESTABLISHMENT OF PROGRAM.

"(a) In General.—

"(1) Purpose.—The Secretary shall establish and implement a program, to be known as the 'Agricultural Resource Conservation Demonstration Program', to provide Federal guarantees and interest assistance for eligible loans described in section 1465(c)(2) made to, or issued for the benefit of, State trust funds.

"(2) Assistance.—Under the program the Secretary shall guarantee for a period of 10 years the timely payment of the principal amount and interest due on each eligible loan described in section 1465(c)(2) made to, or issued for the benefit of, State trust funds and shall for each such 10-year period subsidize the interest on such eligible loans at the allowable interest rate for the first 5 years after the loan is made, or issued, and at no less than 3 percentage points for the second 5 years under procedures described in subsection (b).

"(b) Mandatory Assistance to Each State Trust Fund.—The Secretary shall—

"(1) fully guarantee with the full faith and credit of the United States each eligible loan described in section 1465(c)(2) made to, or issued for the benefit of, each State trust fund under procedures established by the Secretary;

"(2) annually pay to each State trust fund an amount calculated by applying the allowable interest rate to the amount of each loan described in section 1465(c)(2) made to, or issued for the benefit of, each State trust fund during each of the first 5 years after the date on which each such loan was made or issued; and

"(3) annually pay to each State trust fund, for each year during the second 5-year period after each such eligible loan is made to, or issued for the benefit of, the State trust fund, an amount calculated by applying the interest rate difference, between the rate of interest charged to borrowers of direct loans as described in section 316(a)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1946(a)(2)) and the allowable interest rate, to the amount of each such loan made to, or issued for the benefit of, the State trust fund, as determined under procedures established by the Secretary.

"(c) Funding.—

"(1) Issuance of stock.—The Secretary of Agriculture shall make and issue stock, in the same manner as notes are issued under section 309(c) or 309A(d) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929(c) or 1929a(d)), to the Secretary of the Treasury for the purpose of obtaining funds from the Secretary of the Treasury that are necessary for discharging the obligations of the Secretary of Agriculture under this chapter. The stock shall not pay dividends and shall not be redeemable.

"(2) Purchase of stock.—The Secretary of the Treasury shall provide the funding necessary to implement this chapter. The Secretary of the Treasury shall purchase any stock of the Secretary of Agriculture issued to implement this chapter. The Secretary of the Treasury shall use as a public debt transaction the proceeds from the sale of any securities issued under chapter 31 of title 31, United States Code. The purposes for which the securities may be issued under such chapter are extended to include the raising of funds to purchase stock issued by the Secretary of Agriculture to implement this chapter with respect to each eligible State. The Secretary of Agriculture shall make and issue such stock as is necessary to fund this chapter to the Secretary of the Treasury who shall promptly purchase the stock (within 60 days) being offered by the Secretary of Agriculture.

"(3) Commodity credit corporation.—If the Secretary of Agriculture fails to issue stock as required under this chapter, or if funding is otherwise not provided as set forth in this chapter, for the eligible State described in section 1465(c)(3)(A), notwithstanding any other provision of law, the Secretary of Agriculture shall use the funds, services and facilities of the Commodity Credit Corporation to carry out the requirements of this chapter. The procedure described in paragraph (2) shall be used to reimburse the Corporation for funds expended to carry out this paragraph.

"(d) Required Purchases of Stock.—The Secretary shall promptly notify the Secretary of the Treasury, in writing, each time an application of an eligible State is approved by the Secretary under this chapter. The Secretary of the Treasury shall promptly purchase stock (within 60 days) offered by the Secretary under subsection (c) and the Secretary of Agriculture shall deposit the proceeds from each such sale of stock in accounts created to administer the program.

"(e) Entitlements.—The Secretary is entitled to receive funds, and shall receive funds, from the Secretary of the Treasury in an amount equal to the total par-value of the stock issued to the Secretary of the Treasury. Each State trust fund is entitled to receive, and the Secretary of Agriculture shall promptly pay to each such trust fund, amounts calculated under procedures described in subsection (b).

"(f) Regulations.—Except regarding the eligible State described in section 1465(c)(3)(A), the Secretary shall promulgate proposed and final regulations, under the prior public comment provisions of section 553 of title 5, United States Code, setting forth—

"(1) the application procedures for eligible States;

"(2) the factors to be used in approving applicants;

"(3) procedures for the prompt payment of the obligations of the Secretary under subsection (b);

"(4) recordkeeping requirements for approved State trust funds;

"(5) requirements to prevent program abuse and procedures to recover improperly obtained funds;

"(6) rules permitting State trust funds to act as revolving funds or to otherwise accumulate additional capital, based on investments, to be subsequently used to promote the purposes of this chapter; and

"(7) any other rules necessary and appropriate to carry out the program.

"(g) Duration of Program.—The program established under this chapter shall expire on September 30, 1996, except that any financial obligations of the Secretary shall continue to be met as required by this chapter.

"(h) Eligible Uses for Guaranteed Loan Funds.—

"(1) In general.—Funds from eligible loans (including proceeds from the sale of bonds or other obligations described in section 1465(c)(2)) guaranteed under this chapter, and any earnings of the State trust funds, may be used—

"(A) to purchase development rights, conservation easements or other types of easements, or to purchase agricultural land in fee simple or some lesser estate in land;

"(B) to pay all reasonable and customary costs including appraisal, survey and engineering fees, and legal expenses;

"(C) to pay the costs of enforcing easements or land use restrictions;

"(D) to cover the costs of complying with any regulations issued by the Secretary under this program and the costs of implementing the farmland plan of operation, except that the guaranteed loan proceeds shall not be used to pay overhead expenses of the State trust fund (rent, utilities, salaries, wages, insurance premiums, and the like); and

"(E) to generate earnings (including through investments not exceeding 10 years in duration for each eligible loan), to be used for future farmland preservation efforts, through investments in direct obligations of the United States or obligations guaranteed by the United States or an agency thereof or by depositing funds in any member bank of the Federal Reserve System or any federally insured State nonmember bank.

"(2) Collateral for loans.—To the extent consistent with relevant banking laws and practices, the investments or deposits described in paragraph (1)(E) may serve as collateral for loans made to, or on behalf of, the State trust fund.

"(i) State Use of Guaranteed Loan Funds.—The Secretary may issue regulations or procedures requiring each State trust fund to report to the Secretary regarding the uses of the eligible loans (described in section 1465(c)(2)) guaranteed by the Secretary and the Secretary may monitor the uses of the funds to ensure that the loans are used for purposes related to this chapter. Neither the Secretary or [nor] the lending institution shall have the power to require approval of each specific use of the loans guaranteed by the Secretary, the specific terms of each use of the loan funds, or the specific provisions of each purchase or investment made with loans guaranteed by the Secretary. The Secretary may require that each State trust fund provide a State farmland preservation plan of operation to the Secretary setting forth the plans for administering the program in the State and may require each State trust fund to periodically report to the Secretary on the purchases of interests in farmland and on other specific uses of the funds.

"(j) Special Rules for the Pilot Project State.—Notwithstanding any other provisions of this chapter, the following special rules shall apply to the eligible State described in section 1465(c)(3)(A):

"(1) Provision of loan guarantee and interest assistance agreement.—Within 30 days of the date any State trust fund in the eligible State receives a commitment for each eligible loan from a lending institution, the Secretary shall provide the lending institution with the loan guarantee and the interest assistance agreement so that the lending institution may disburse the full amount of the loan proceeds to the State trust fund on the date of loan closing to carry out this program. After the loan closing, the lending institution shall have no obligation to monitor or approve the use of loan proceeds by the State trust fund.

"(2) Approval of application.—The Secretary shall annually approve the completed application from the eligible State within 30 days after receipt if the application sets forth the general goals and policies of the State trust fund. The Secretary shall provide the Federal assistance required under this chapter beginning on the date the application or plan is approved.

"(3) Amount of guarantees.—The Secretary shall calculate the total amount of guarantees to be provided for fiscal year 1992 in an amount equal to double the sum of—

"(A) the amount that was made available in fiscal year 1991 to the State trust fund (the Vermont Conservation and Housing Board regardless of whether the fund had been approved by the Secretary in fiscal year 1991), by the State described in section 1465(c)(3)(A), political subdivisions thereof, charitable organizations, private persons, or any other entity, in addition to the proceeds from the sale of obligations of the State related to the purposes of the State trust fund and the fair market value of donations of interests in land to the State trust fund; and

"(B) the matching contribution calculated under section 1468(c) for fiscal year 1992 for the State.

"(k) Miscellaneous Provisions.—

"(1) Operation.—Each State trust fund may operate through nonprofit corporations, municipalities, or other political subdivisions of States in carrying out the purposes of the program established in this chapter.

"(2) Earnings.—Earnings on funds of each State trust fund may be used for any purposes related to carrying out the operations of the trust fund in a manner not inconsistent with the requirements of this chapter or the farmland preservation plan.

"SEC. 1467. FEDERAL ACCOUNTS AND COMPLIANCE.

"(a) Accounts.—To carry out the purposes of this chapter, the Secretary may establish in the Treasury of the United States an account, to be known as the 'Agricultural Resource Conservation Revolving Fund' (hereafter referred to in this chapter as the 'Fund'), for the use by the Secretary to meet the obligations of the Secretary under this chapter.

"(b) Compliance.—If the Secretary determines that any State trust fund is failing to comply, to a significant degree, with any requirements of this chapter, the Secretary shall report the failure to the Committee on Agriculture of the House of Representatives and to the Committee on Agriculture, Nutrition, and Forestry of the Senate, shall fully investigate the matter, may decline to provide additional Federal guarantees or interest subsidies to the State trust fund, and shall take other steps as may be appropriate to prevent the use of Federal assistance in a manner not consistent with this chapter.

"SEC. 1468. APPLICATIONS AND ADMINISTRATION.

"(a) Applications.—In applying for assistance under this chapter an eligible State described in section 1465(c)(3)(B) shall—

"(1) prepare and submit, to the Secretary, an application at such time, in such manner, and containing such information as the Secretary shall require;

"(2) agree that the State trust fund will use any funds provided, or guaranteed, by the Secretary under this chapter in a manner that is consistent with the chapter and the regulations promulgated by the Secretary; and

"(3) agree to comply with any other requirements set forth in agreements with the Secretary or as the Secretary may prescribe by regulation.

"(b) Annual Applications.—Eligible States described in section 1465(c)(3)(B) may apply for Federal assistance under this chapter on an annual basis. The Secretary shall approve or disapprove each application for assistance, and notify the applicant of the action not later than 30 days after receipt of a complete application.

"(c) Match and Maximum Amount.—

"(1) In general.—The total amount of any guarantees provided by the Secretary under this program for each eligible State shall equal an amount that is equal to double the amount that is, or shall be, made available to the trust fund (including matching funds described in paragraphs (2) through (4)) in each such eligible State by the State, political subdivisions thereof, charitable organizations, private persons, or any other entity, for acquiring interests in land to protect and preserve important farmlands for future agricultural use but in no event shall the total Federal share exceed $10,000,000 in any fiscal year for any given State.

"(2) Earnings.—Earnings of the State trust fund and funds expended by the State or the State trust fund prior to loan closing for purposes consistent with this chapter, and in the same fiscal year, may be considered as matching funds.

"(3) Obligations.—Proceeds from the sale of tax-exempt general obligation bonds, or other obligations, of the State or State trust fund shall be an allowable source of matching funds under this chapter for the same fiscal year.

"(4) Land.—The fair market value of any donation of an interest in land to the State trust fund, or a charitable organization working with the State trust fund, may be considered as matching funds, for the same fiscal year, if—

"(i) the fair market value is based on an appraisal determined to be adequate by the State trust fund; and

"(ii) the donation is consistent with the State farmland preservation plan,

except that the value of land donated to charitable organizations by the State trust fund shall not be included as part of the match.

"(d) Clarification of Federal Law.—Sellers of land, or of interests in land, to any State trust fund are not, and shall not be considered by the Secretary as, recipients or beneficiaries of Federal assistance.

"SEC. 1469. REPORT.

"Not later than September 30, 1992, and annually thereafter, the Secretary of Agriculture shall prepare and submit, to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, a report concerning the operation of the program established under this chapter.

"SEC. 1470. IMPLEMENTATION AND EFFECTIVE DATE.

"(a) In general.—This chapter shall become effective on October 1, 1990. Not later than December 30, 1990, the Secretary shall enter into an agreement with the State of Vermont to provide Federal assistance under this chapter to the State.

"(b) Regulations.—Not later than December 31, 1991, the Secretary of Agriculture shall publish in the Federal Register interim final regulations to implement this chapter. The regulations shall not require each State's program to give a priority to the acquisition of land, or interests in land, that is subject to significant urban pressure.

"SEC. 1470A. COMPTROLLER GENERAL REPORTS.

"On February 15 of 1992, and on December 1 of each of the years 1992 through 1996, the Comptroller General of the United States shall report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, on whether the Secretary of Agriculture is complying with the requirements of this chapter. The report shall include information concerning loans guaranteed under this chapter and the steps the Secretary of Agriculture has taken to comply with this chapter.

"SEC. 1470B. SPECIAL RULES FOR ISSUANCE OF STOCK FOR 1992.

"The Secretary shall issue the stock required to be issued to the Secretary of [the] Treasury under this chapter with respect to the eligible State described in section 1465(c)(3)(A), for fiscal year 1992, on or before December 20, 1991."

[Amendment by section 201(b), (c) of Pub. L. 102–237 to sections 1466 and 1470 of Pub. L. 101–624, set out above, effective as if included in the provision of the Food, Agriculture, Conservation, and Trade Act of 1990, Pub. L. 101–624, to which the amendment relates, see section 1101(b)(1) of Pub. L. 102–237, set out as an Effective Date of 1991 Amendment note under section 1421 of this title.]

Pub. L. 102–341, title VII, §730, Aug. 14, 1992, 106 Stat. 909, provided that: "For loan guarantees authorized under sections 1465–1469 of Public Law 101–624 [set out above] for the Agricultural Resource Conservation Demonstration Program, $10,000,000. For the cost, as defined in section 502 of the Congressional Budget Act of 1974 [2 U.S.C. 661a], $3,644,000: Provided, That, hereafter, no other funds are available in this or any other Act to carry out this program, other than those provided for in advance in Appropriations Acts, except for the cost of administering the program: Provided further, That such limitation shall not apply with respect to the duties and obligations of the Secretary regarding any loan or note guarantees, interest assistance agreements, or other understandings entered into during fiscal year 1992, and the personnel of the Department shall carry out the duties and obligations of the Secretary, and any other requirements imposed on the Secretary regarding such Agricultural Resource Conservation Demonstration Loan Program with respect to the loan made and guaranteed in 1992."

Executive Documents

Termination of Trust Territory of the Pacific Islands

For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions.