NORTH DAKOTA DEPARTMENT OF HUMAN SERVICES
BISMARCK, NORTH DAKOTA
July 10, 2006

IM #4989

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

FROM:	Blaine Nordwall, Director, Economic Assistance Policy

SUBJECT:	Effect of TANF Diversion Assistance on Other Programs

PROGRAMS:	Food Stamps, Medicaid, Child Care Assistance, LIHEAP

EFFECTIVE:	August 1, 2006

RETENTION: 	Until Manualized

This IM addressed the effect of TANF Diversion Assistance on other programs.  Listed are the programs and the policy effect.  

Food Stamps

430-05-20-80 – Categorical Eligibility
Individuals in which all members are in receipt of TANF including TANF Diversion Assistance are categorically eligible.  

430-05-40-10 – Exemptions from Work Requirements
Individuals who are receiving TANF Diversion Assistance are exempt from the Work Requirements for Participation in the Food Stamps as they are receiving TANF Diversion Assistance paid through TANF funds.  

430-05-40-45 - Job Opportunities and Basic Skills (JOBS) and Unemployment Compensation
When an existing uncured sanction is bypassed for TANF Diversion months and the sanctioned individual's needs are included in the TANF Diversion Assistance benefit, the individual must be included in the Food Stamp benefit.  If the existing sanction is processed when a TANF application is entered after the TANF Diversion Assistance case closes and the individual is subject to the sanction for TANF, the disqualification applies for Food Stamps.  

In this instance, the net grant is counted, as Household's with a Decrease in TANF policy at 430-05-50-15-15 does not apply to individual's who are sanctioned at the time they apply for TANF.  

	Example:

A TANF/FS household includes an individual who is sanctioned for TANF and as a result is disqualified for FS and the gross TANF grant is counted in determining eligibility and level of benefits for FS.  The TANF case closes.  The FS case continues and the individual remains DW for FS and the TANF grant is removed.  

The household re-applies for TANF and is eligible for Diversion Assistance.  The sanctioned individual’s needs are included in the Diversion Assistance grant.  Since the individual is eligible for Diversion Assistance the disqualification for FS must be ended and the individual included in the FS case.  The Diversion Assistance grant is counted for FS.  

Diversion Assistance closes.  The household reapplies for TANF and the individual is ineligible for TANF because of the outstanding JOBS sanction.  The individual must be disqualified for FS.  The net grant is counted as the sanction is being applied at initial application for TANF and will not result in an increase in FS.   

430-05-50-20-10 – Unearned Income
The TANF Diversion Assistance payment will be countable unearned income for Food Stamps just as the TANF payment is today.  

430-05-50-25-15 – Reimbursement for Past or Future Expenses
Any special allowances the household receives are excluded as a reimbursement.  

430-05-50-25-10 – Excludable Vendor Payments 
Housing/Shelter special allowances will be made as a vendor payment and will also be excluded.  The vendor payment is not counted as income and the payment paid to the third party for a household expense is not an allowable deduction.    

Medicaid

TANF Diversion Assistance Payments are excludable income for Medicaid.  TANF Diversion Assistance will be included in the definition of TANF.  

430-05-05 – Definitions
Temporary Assistance for Needy Families (TANF)
A program administered under North Dakota Century Code Chapter 50-09 and the Title IV-A pf the Social Security Act.  References to TANF include TANF Kinship Care Assistance and Diversion Assistance.  

Child Care Assistance Program

400-26-05 - General Definitions 
Diversion Assistance - helps prevent needy families from becoming dependent on continuing government benefits by providing cash assistance to qualified families to promote job retention.

400-26-20-10 – Income Exclusions
40.	Diversion assistance, all vendor payments and reimbursements for Diversion Assistance.

LIHEAP

415-25-05-20-20 OTHER INCOME
Income from all other sources not excluded by 415-25-05-30 must be included in the determination of the household's income. 
1.	TANF.
415-25-05-30 INCOME NOT COUNTED
Reimbursement for transportation, day care and other employment or training costs under Diversion Assistance.