Opinion ID: 2371403
Heading Depth: 3
Heading Rank: 1

Heading: The Food Stamp Program

Text: The Food Stamp Act, 7 U.S.C. §§ 2011, et. seq., is a state administered program funded by the federal government to provide low-income individuals with an opportunity to obtain a more nutritious diet. 7 U.S.C.A. § 2013(a) (West 1999); see West v. Bowen, 879 F.2d 1122, 1124 (3d Cir.1989). The Secretary of Agriculture prescribes the standards for eligibility for food stamps, but state agencies are authorized to make individual eligibility determinations and to distribute the food stamps to eligible households, which may use them to purchase food from approved, retail food stores. Atkins v. Parker, 472 U.S. 115, 117, 105 S.Ct. 2520, 2523, 86 L.Ed.2d 81, 85 (1985) (footnote omitted); see 7 U.S.C.A. § 2014(b) (West Supp.2003). In order to participate in the Food Stamp Program, states must comply with the Food Stamp Act and the Secretary's regulations. 7 U.S.C.A. §§ 2020(a), 2025 (West 1999). Maryland law requires the Department to implement the program in conformity with federal and state law and regulations. Maryland Code, Art. 88A, § 13A(e) (1957, 2003 Repl. Vol.)(stating that the administration of State programs by Montgomery County shall .... be governed by State and federal regulations). [6] Eligibility for food stamps is largely determined by a household's income. Section 2014(a) of the Food Stamp Act provides: Participation in the food stamp 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. See also Knebel v. Hein, 429 U.S. 288, 289, 97 S.Ct. 549, 551, 50 L.Ed.2d 485, 488 (1977). As a general rule, the recipient's food stamp allotment decreases when his or her income increases. See West, 879 F.2d at 1124. Although [h]ousehold income for purposes of the food stamp program shall include all income from whatever source, see 7 U.S.C.A. § 2014(d) (West Supp.2003)(emphasis added), certain exclusions (regarding incoming revenue) and deductions (regarding expenses) apply. For example, federal energy assistance payments may be excluded from the income calculation. See West v. Sullivan, 973 F.2d 179, 181 (3d Cir.1992). Benefits, such as social security disability benefits, are not excluded under the program, however, and thus ordinarily constitute income. [7] See Stevens v. Jackson, 800 F.Supp. 344, 345 (W.D.Va.1992)(explaining how a household's food stamp allotment was reduced because the household received social security disability benefits). In addition to excluding certain incoming revenue from the applicant's total income calculation, certain deductions also apply. 7 U.S.C.A. § 2014(e). Deductions serve to account for many of the applicant's necessary expenses, see Knebel, 429 U.S. at 296, 97 S.Ct. at 554, 50 L.Ed.2d at 492, thus reducing the applicant's total income calculation and increasing the amount of food stamps for which his or her household is eligible. Some of the allowable deductions include child care expenses, medical expenses, and excess shelter costs. 7 U.S.C.A. § 2014(e). COMAR 07.03.17.43 outlines how net monthly income is to be calculated in Maryland pursuant to federal law. [8] Under the regulation, net income is the applicant's gross income minus certain deductions. The deduction at issue here is the excess shelter cost deduction, which allows applicants to subtract from their gross income a limited or capped amount of allowable excess shelter costs. 7 U.S.C.A. § 2014(e)(6)(A). [9] Allowable excess shelter costs include, inter alia, monthly utility costs such as heating and cooking fuel, electricity, and water adding up to more than half of the household's income. COMAR 07.03.17.43I; see also MARYLAND DEPARTMENT OF HUMAN RESOURCES FOOD STAMP MANUAL § 212.3 available at http://www.dhr.md.us/stamp/manual (last visited May 10, 2004). Although the amount of the excess shelter cost deduction is capped for most food stamp applicants at approximately $378, [10] elderly or disabled households are eligible for an unlimited or uncapped deduction, which allows them to subtract all of their excess shelter costs from their gross income. 7 U.S.C.A. § 2014(e)(6)(B). [11] Specifically, COMAR 07.03.17.43I(3), which is derived from 7 C.F.R. § 273.9(d)(6)(ii), [12] provides: If the household contains an elderly or disabled member as described in Regulation.02B of this chapter, the total amount of the excess shelter cost is subtracted. In short, elderly and disabled applicants are eligible for the uncapped excess shelter cost deduction, which allows them to deduct all of their excess shelter expenses, while all other applicants are eligible only for a capped amount. The consequence of this regulation is that elderly and disabled food stamp recipients receive a greater benefit under the excess shelter cost deduction than other applicants do because, by subtracting all of their allowable shelter costs from their gross income instead of just the limited, capped amount, their net income is reduced to a greater extent. See Huberman v. Perales, 884 F.2d 62, 64 (2d Cir.1989)(explaining how a disabled woman's food stamp allotment increased significantly because she was eligible for the uncapped shelter deduction instead of the capped one). Lower net income, as we have noted, generally results in an increased food stamp allotment. See 7 U.S.C.A. § 2014. In order to receive the uncapped excess shelter cost deduction, food stamp recipients must be 60 years of age or older or disabled. Section 2012(r)(2) of the Food Stamp Act defines a disabled member of a household eligible for food stamps in terms of someone who receives benefits. Under the provision, an elderly or disabled member includes someone who: (A) receives supplemental security income benefits ... or (B) receives Federally or State administered supplemental assistance..., interim assistance pending receipt of supplemental security income, disability-related medical assistance..., or disability-based State general assistance benefits ...; (3) receives disability or blindness payments... or receives disability retirement benefits from a governmental agency because of a disability considered permanent under section 221(i) of the Social Security Act (42 U.S.C. 421(i)).... Section 271.2 of Title 7 of the Code of Federal Regulations states that elderly or disabled member for the purposes of the Food Stamp Program includes a member of a household who: (2) Receives supplemental security income benefits under title XVI of the Social Security Act or disability or blindness payments under titles I, II, X, XIV, or XVI of the Social Security Act; (3) Receives federally or State-administered supplemental benefits under section 1616(a) of the Social Security Act provided that the eligibility to receive the benefits is based upon the disability or blindness criteria used under title XVI of the Social Security Act; (4) Receives federally or State-administered supplemental benefits under section 212(a) of Pub.L. 93-66; (5) Receives disability retirement benefits from a governmental agency because of a disability considered permanent under section 221(i) of the Social Security Act.