Program Reduction, Suspension or Cancellation Procedures

Purpose [63-107, 63-207.5]

This section sets forth procedures to be followed if monthly CalFresh allotments must be reduced, suspended or cancelled by order of the Secretary of USDA if program costs exceed the fiscal year appropriation.

The county shall notify households of the reduction, suspension or cancellation of benefits as instructed by the State. Notices of adverse action shall not be provided. Instructions shall be provided by the State for issuing notices to affected households and shall provide the language and format to be used by the counties in such notices.

No lost benefits will be provided to households whose benefits are reduced or cancelled as a result of enactment of these procedures.

Reductions [63-107.2]

If a reduction in allotments is necessary The State will specify the percentage of reduction. The State will notify the counties when a reduction is to take effect and the percentage of reduction of the Thrifty Food Plan for each household size.

Upon notification that a reduction is to take effect, the county shall act to implement immediately.

A department memo will be issued to inform staff of a reduction in benefits and specific procedures to be followed. The computer program would be altered to reflect the appropriate percentage reduction in the Thrifty Food Plan for each household size and to allow for a minimum $10.00 benefit for one and two person households. Households of three or more could receive benefits in an amount of less than $10.00.

All households determined eligible for their initial months benefits in a month in which a reduction is in effect shall have initial months benefits prorated and reduced.

Allotments or portions of allotments representing restored or retroactive benefits for a prior unaffected month shall be reduced, suspended or cancelled even though issued in an affected month.

Suspensions and Cancellations [63-107.3]

The State will notify counties if CalFresh benefits are to be suspended or cancelled and the effective date of suspension or cancellation. The county shall act immediately to suspend or cancel benefits when notified to do so.

If benefits are suspended or cancelled, all households shall have their benefits suspended or cancelled; there will be no provision for a $10.00 minimum benefit.

Upon notification that a suspension or cancellation of benefits is over, the county shall act immediately to resume issuance of benefits to certified households.

Eligible Households [63-107.8]

The county shall continue to accept and process applications (new and recertifications) during a month(s) in which reduction, suspension, or cancellation is in effect.

If an applicant is found eligible for benefits in a month in which a reduction is in effect, the Thrifty Food Plan shall be reduced by the appropriate percentage for the applicant's household size and 30% of the net CalFresh Income subtracted from the reduced Thrifty Food Plan. The result will be the household's allotment.

ExampleExample

If a 25% reduction in the Thirty Food Plan amount is in effect for all five-person households, the reduction would be computed as follows:

The Thrifty Food Plan amount for a five-person household ($615) would be reduced to $461. Then 30% of the net CalFresh income would be deducted from the reduced Thrifty Food Plan amount. For example, 30% of a net CalFresh Income of $200 ($60) would be deducted from $461, resulting in a reduced allotment of $401.

If an applicant is found eligible for benefits during a suspension or cancellation, no benefits shall be issued until issuance is again authorized by the State.

In a month affected by a reduction, suspension or cancellation, recertifications shall be completed in accordance with 63-504.4. The reduction, suspension or cancellation of benefits shall not affect the certification period assigned to a household.

Issuance services must be provided to serve households receiving restored or retroactive benefits for a prior, unaffected month.
In months in which a suspension or cancellation of benefits is in effect, the county shall determine the issuance service to be provided, the location and hours of operation.

State Hearings [63-107.9]

Households affected by a reduction, suspension or cancellation as ordered by the State may request a state hearing if they disagree with the action, subject to the following:

  1. The State is not be required to hold state hearings unless the request is based on the household's belief that the new benefit level was computed incorrectly.
  2. The State shall deny a hearing to those households which are merely disputing the fact that a reduction, suspension or cancellation was ordered.
  3. Under 1 and 2 above, households are not entitled to a continuation of benefits pending a state hearing.
  4. A household may receive retroactive benefits if it is determined that its benefits were reduced by more than the amount directed by the State.

Benefit Calculation After State Hearing Decision [63-108]

Eligible households shall have their benefits calculated as follows:

  • If benefit reduction is ordered, the county shall reduce each of the Thrifty Food Plan amounts as follows:
    • The Thrifty Food Plan amounts shall be multiplied by the percentage specified and rounded to the nearest dollar amount, i.e., round down if it ends in 1 through 49 cents, round up if it ends in 50 through 99 cents. Subtract the results from the normal Thrifty Food Plan amount. Following the procedure above, the county would substitute the reduced Thrifty Food Plan amounts for the normal amounts to determine the reduced benefit levels for eligible households.
  • Except as noted below, if the reduced benefit calculation is less than $10, the household shall be provided with a $10 minimum benefit.

The provision for a $10 minimum may be disregarded in the event that the national reduction in benefits exceeds 90 percent of the benefits projected to be issued for the affected month. In this instance all households may have their benefits lowered by reducing the Thrifty Food Plan amounts by the percentage specified by the state.

  • The benefit reduction notice shall state whether minimum benefits are to be provided to households.
  • If a suspension or cancellation is in effect, eligible households shall have their allotment levels recalculated according to procedures set forth in Section 63-503.3. However, no allotments shall be issued for the month of suspension or cancellation. There shall be no $10 minimum benefits in a month of suspension or cancellation.
  • In the event of a suspension, cancellation or a reduction exceeding 90 percent of the affected month's projected issuance, ALL households shall have their benefits suspended, cancelled or reduced by the percentage specified by the state.

Records [63-107.7]

The county shall be able to produce a record of the amount of benefits each household received during a month of reduction and the amount each household would have received if full monthly allotments had been provided. In addition, the county shall provide a record of the amount of benefits suspended or cancelled.

Related Topics

Budgeting Concepts