Payments through the AFDC (Aid to Families with Dependent Children) Program are considered to be unearned income. AFDC is paid on a monthly basis and is based on a standard of need for a particular~household size. Households receiving AFDC may also receive other income as long as the income does not exceed the standard of need.

AFDC payments vary widely from state to state. Also, various payments are received by AFDC recipients in other states which are not by AFDC recipients in this State. These payments will be handled as specified below.

In some states an AFDC recipient will receive a clothing allowance when children enter or return to school or daycare. Any such allowance a state agency provides no more frequently than annually is excluded as income provided there was no corresponding reduction in the AFDC payment for the same month. If a corresponding reduction in the AFDC payment was made, the allowance will not be excluded as income.