NORTH DAKOTA DEPARTMENT OF HUMAN SERVICES
BISMARCK, NORTH DAKOTA
February 22, 2005

	IM #4961

TO:		County Social Service Directors
Economic Assistance Policy Regional Representatives
Economic Assistance Policy Quality Control Reviewers

FROM:	Blaine Nordwall, Director, Economic Assistance Policy

SUBJECT:	EXCLUSION OF COMBAT PAY 

PROGRAMS:	Food Stamps, Medicaid, Child Care Assistance and TANF

RETENTION: 	September 30, 2005

FOOD STAMPS

On December 8, 2004, the President signed the Consolidated Appropriations Act, 2005, Public Law 108-447.   This law contains a provision that excludes from consideration as income in the Food Stamp Program additional pay received by military personnel as a result of deployment to a combat zone.

This provision is being implemented March 1, 2005, is effective for federal fiscal year 2005 and is retroactive to October 1, 2004.  Any household that had an increase in income as a result of the deployment of a service member to a designated combat zone that was counted in their food stamp case as of October 1, 2004 is entitled to restoration of lost benefits.  A desk review of case files is not required.  

This determination must be made at a household’s next recertification on or after March 1, 2005, unless the household requests a review of its case prior to that time.  This income exclusion continues until the household is recertified for the benefit month of October 2005 or later. 

If a household is initially applying, the policy is effective March 1, 2005 or the date of application, whichever is later.   

If a household reapplies and the case was previously closed or denied for excess income because excluded combat pay was counted, the household is entitled to restoration of lost benefits back to October 1, 2004 or the date of application, whichever was later. 

Based on the implementing memorandum from FNS received January 14, 2005, eligibility workers will now be required to determine if any monies made available to a household by an absent member deployed to a designated combat zone must be excluded when establishing the household’s income for food stamp purposes as follows: 

1.	First, the worker must establish what amount for food stamp purposes of the military person’s net pay was actually available to the household prior to the deployment of the military person to a designated combat zone. The line of thinking here is that we would only count the absent person’s pay that was actually available to the food stamp household (net income).  In order to determine the amount that is attributable to combat pay, subtract the previous net available income from the current available income.  Any amount that exceeds what was being received prior to deployment to a combat zone is excluded.

Keep in mind that the net income is used only if the military person was in the food stamp household prior to deployment to a combat zone.  If the military person was NOT in the food stamp household prior to deployment, the amount actually made available to the food stamp household is counted as unearned income.

2.	Next, the worker must determine the amount of his or her military pay that the absent member deployed in a designated combat zone is making available to his or her family.

3.	If the amount of his or her military pay that the absent member deployed in a designated combat zone is making available is equal to or less than the amount the household was receiving from the military person prior to deployment to a designated combat zone (net income), all of the allotment would be counted as income to the household for food stamp purposes.  Any portion of the amount that exceeds the amount the household was receiving prior to deployment of the military person to a designated combat zone should be excluded when determining the household’s income for food stamp purposes.

For example:  A food stamp household that included a military person was receiving $900.00 (net income) prior to deployment to a designated combat zone.  The military person is now providing $1,400.00 to the remaining household members.  When determining the household’s income for food stamp purposes, $900.00 would be counted and $500.00 is excluded.  

In order to arrive at this amount, the worker must review the last LES (Leave and Earnings Statement) of the military person immediately prior to deployment.  The LES will identify combat pay if it is being received and can be used to establish deployment to a combat zone.  Deployment to a combat zone can also be established through orders issued to the military person.  

QC Hold Harmless for Food Stamps

Federal Regulations allow for a hold harmless period for implementation of this policy.  This hold harmless period is effective beginning October 1, 2004 through June 28, 2005. 

Attachment 1 is a listing of designated combat zones.    

MEDICAID

Additional pay received by military personnel as a result of deployment to a combat zone is disregarded in determining eligibility.  The individual’s regular military pay continues to be countable income.  

CHILD CARE ASSISTANCE AND TANF 

Effective with March 2005 income, Child Care Assistance and TANF will disregard any additional monies received by a household as the result of the deployment of a service member to a designated combat zone.

Both Child Care Assistance and TANF count the gross income for all adult members of the household unit.  Both Programs consider the entire income of the parent temporarily away from home, including ones in military service.

To determine the amount of service member’s income that will be disregarded, compare the amount received before deployment and the amount the received after the deployment.  The difference between the two amounts is the amount that will be disregarded.

Example:  Dad was making $1,000 gross pay before deployment to a combat zone.  He now is receiving $1,400.  Disregard the additional $400.

LIHEAP

LIHEAP will not change policy at this time concerning combat pay.  In October 2005 there may be a change in policy.