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\par\'00FOOD STAMP CERTIFICATION MANUAL        \'00SECTION: REDUCING, SUSPENDING, OR   \'00
\par\'0018000-18300                            \'00         CANCELLING BENEFITS        \'00
\par\'00{\ul DATE: 4-1-88                           \'00SUBJECT: ALLOTMENT REDUCTION        }\'00
\par
\par
\par 18000{\ul PROCEDURES FOR REDUCING, SUSPENDING, OR CANCELLING BENEFITS}
\par
\par 18100{\ul Purpose/General Information}
\par
\par The Food Stamp Act of 1977, as amended, mandates the procedures under which food stamp benefits may be reduced, suspended, or cancelled if adequate funding for the Program is not available.  Any of these actions may be used for one or more months as deemed necessary by the Department of Agriculture, Food and Nutrition Service (FNS) and must equally affect all states participating in the program.
\par
\par 18200{\ul Notification}
\par
\par FNS will notify the Department of Human Services (DHS) of any reduction, cancellation or suspension of benefits which is to occur.  Notification will include the effective date of the action.  Upon receipt of notification of reduction, suspension or cancellation of benefits, DHS will notify the county offices of the impending action.  Depending upon the type of action and the effective date of the action, the county office will be notified via WMMA, Food Stamp Online Message Screen or Memorandum.  This information must be immediately transmitted to all county office personnel directly or indirectly involved in the administration of the Food Stamp Program.
\par
\par Information regarding the reduction, cancellation or suspension of benefits will be transmitted initially to recipients through mass communication - e.g. - press releases, news conferences etc.  Individual notices will be automatically printed and issued to food stamp recipients and/or applicants prior to or at about the same time the reduction, cancellation, or suspension is reflected in their food stamp allotment.
\par
\par FNS will subsequently notify DHS when the period of reduction, suspension and/or cancellation will end and normal issuance may resume.
\par
\par 18300{\ul Allotment Reduction}
\par
\par When an allotment reduction is mandated, FNS will designate the months during which the reduction will occur, the percentage of reduction and the allotments to be affected.  The reduction for currently certified cases will be handled automatically.  Revised tables will be issued to be used in certification activities.
\par
\par During any month in which a reduction is in effect, applications, change forms and monthly report forms will continue to be processed using the reduced maximum food stamp allotment.  Unless otherwise ordered by FNS, one and two person households will continue to be issued a minimum monthly food stamp allotment of $10.
\par\page  {\ul                                                                             } 
\par\'00FOOD STAMP CERTIFICATION MANUAL      \'00SECTION: REDUCING, SUSPENDING, OR     \'00
\par\'0018400-18500                          \'00         CANCELLING BENEFITS          \'00
\par\'00{\ul DATE:  4-1-88                        \'00SUBJECT: SUSPENSIONS AND CANCELLATIONS}\'00
\par
\par
\par
\par The reduced maximum allotment will not be used to calculate benefits for restorations or retroactive benefits for a prior, unaffected month.  The original maximum allotment in effect for the prior, unaffected month will be used to calculate restorations and/or retroactive benefits.  This is true even if these  benefits are actually issued during a month when a reduction is in effect.  For example, an application is approved during a month when a reduction is in effect.  The application period includes the month prior to the month of approval.  The household is eligible for retroactive benefits for the month prior to the month of approval and so the household's retroactive benefits will be based on the maximum food stamp allotment before the reduction.
\par
\par 18400{\ul Suspensions and Cancellations}
\par
\par FNS is responsible for determining when food stamp benefits must be suspended or cancelled due to a lack of funding.  In the event of such a decision, FNS must notify the state of the decision and must specify the effective date.  Upon receipt of this notification, the state must immediately take the actions required to implement the suspension or cancellation.  During any month in which a suspension or a cancellation is in effect, applications, change forms and monthly report forms will continue to be processed using normal procedures.  ({\ul Exception} - There are special time frames for processing expedited applications.  See FSC 19400 for a explanation of these time frames.)
\par
\par No benefits will be issued until authorized by FNS.  The $10 minimum benefit requirement for one and two person households will be disregarded, and benefits for all households will be suspended or cancelled.  Allotments or portions of allotments representing restored or retroactive benefits for a prior, unaffected month will not be suspended or cancelled, even though they are to be issued during a month of suspension or cancellation.  For example, an application is approved during a month in which a cancellation is in effect.  The application period includes the month prior to the month of approval, and the household is eligible for retroactive benefits for this month.  Since the cancellation was not in effect for the month prior to the month of approval, retroactive benefits {\ul only} will be issued to the household.
\par
\par 18500{\ul Expedited Services}
\par
\par Eligible expedited households which participate in the Food Stamp Program during periods of reduction will be issued food stamps based on the reduced maximum allotment in effect.  These food stamp benefits must be issued to the household within the time frames specified in FSC 9400-9430.
\par
\par During periods of suspension, applications from eligible, expedited households will be processed within the time frames specified in 9400 - 9430.  However, no food stamp allotments will be issued until the suspension is lifted.
\par\page  {\ul                                                                             } 
\par\'00FOOD STAMP CERTIFICATION MANUAL        \'00SECTION: REDUCING, SUSPENDING, OR   \'00
\par\'0018500-18800                            \'00         CANCELLING BENEFITS        \'00
\par\'00{\ul DATE: 4-1-88                           \'00SUBJECT: EXPEDITED SERVICES         }\'00
\par
\par
\par Households eligible for expedited processing who apply during periods of Program cancellation will receive expedited service.  However, there will be special processing timeframes.  During periods of Program cancellation, expedited applications must be completed within two days or by the end of the month of application, whichever is later.  No food stamp allotment will be issued during the month of cancellation.
\par
\par All other procedures specified in FSC 9100 - 9800 will apply to expedited applications during periods of Program reduction, cancellation and/or suspension.
\par
\par 18600{\ul Certification Periods}
\par
\par The reduction, suspension or cancellation of allotments in a specified month will have no effect on the certification periods assigned to households during that month.  See FSC 8700 - 8730 for instructions on assigning certification periods.
\par
\par 18700{\ul Restoration of Reduced, Cancelled or Suspended Allotments}
\par
\par Suspended benefits will be issued to eligible households at the conclusion of the period of suspension.  Upon being notified by FNS that a suspension of benefits is over, the state must act immediately to resume issuing food stamps to eligible households.
\par
\par Households whose food stamp allotments are reduced or cancelled as a result of the enactment of these procedures are not automatically entitled to a restoration of the benefits which were lost.  However, FNS may determine that all or part of these benefits may be restored if a surplus of funds occurs at a later time.
\par
\par 18800{\ul Fair Hearings}
\par
\par Any household that has its allotment reduced, suspended, or cancelled may request a fair hearing if it disagrees with the action.
\par
\par If a request for a Fair Hearing disputes only the fact that the reduction, suspension, or cancellation was ordered, the request may be denied by the Fair Hearing Section.  A hearing must be held when the household believes that its food stamp allotment was computed incorrectly under the reduction procedures or that the rules for implementing the reduction, cancellation and/or suspension were misapplied or misinterpreted.
\par
\par During a period of reduction, cancellation or suspension, the household does {\ul not} have a right to continuation of benefits pending the Fair Hearing decision.
\par}