USDA DFAP Awards May Affect Your Public Benefits!
Lump-Sum Awards from United States Department of Agriculture (USDA) under the USDA Discrimination Financial Assistance Program (DFAP) may affect your public benefits like Supplemental Nutrition Assistance Program (SNAP) and Medicaid.
USDA DFAP Awards and Medicaid
The information below is for the farmers and ranchers who applied for and received a one-time, lump-sum payment/award from the United States Department of Agriculture (USDA) under the USDA Discrimination Financial Assistance Program (DFAP). DFAP was created to address the consequences of prior discrimination by USDA in USDA farm lending. This general information will help people who receive these USDA DFAP awards understand the potential impact of such money on Medicaid coverage.
THE USDA AWARD MAY AFFECT YOUR MEDICAID ELIGIBILITY. EVERYONE’S SITUATION IS DIFFERENT. BE SURE TO CONSULT AN ATTORNEY OR ADVOCATE KNOWLEDGEABLE ABOUT MEDICAID FOR SPECIFIC ADVICE. See below for a list of resources.
What is Medicaid?
Medicaid is a joint federal and state program that helps cover medical costs for some people with limited income and resources. The federal government has general rules that all state Medicaid programs must follow, but each state runs its own program. This means eligibility requirements and benefits can vary from state to state.
How could my USDA DFAP award affect my Medicaid?
Your USDA DFAP award will increase your income and resources the month you receive it. Your Medicaid eligibility is based on having limited income and, for some categories, resources. Depending on the category in which you are eligible for Medicaid, the DFAP award may have a small or large effect on your Medicaid eligibility.
When is my USDA DFAP award considered “income?”
The USDA DFAP award is “income” in the month you receive it. Income is any item an individual receives in cash or in-kind that can be used to meet their need for food or shelter. Medicaid eligibility depends on both earned and unearned income. Earned income includes payment for work. Unearned income is all other income, such as retroactive benefits or a settlement payment. The USDA DFAP award is unearned income the month you receive it. This is unlikely to have any practical effect on you if you are already getting Medicaid.
When is my USDA DFAP award considered a “resource” or “asset?”
A resource, or asset, is something you own, such as a bank account, land, or personal property that could be used or sold to get money for food or shelter. Some categories of Medicaid count your assets on the first moment of the first of the month. If the value of your assets is greater than the maximum allowed in your state, you are not eligible for Medicaid in that category that month. The unspent portion of your USDA DFAP award will count as a resource on the first of the month following the month you receive it.
What are the Medicaid income and asset limits in my state for different Medicaid eligibility categories?
How the USDA DFAP award affects your Medicaid eligibility depends on the category of your Medicaid eligibility.
· If you are eligible for Medicaid and are under age 65, not disabled, and not pregnant, (Medicaid expansion) there is no asset limit in these categories, so your Medicaid is not at risk.
· If you are eligible for Medicaid because you are on SSI (Supplemental Security Income), or over age 65, or disabled, the asset limit for SSI and SSI-linked Medicaid is $2000 if 1 person, $3000 if you live with spouse.
· If you or your spouse are in a nursing home, much higher income and asset limits apply. Generally, your income must be under $2.829.00 and your assets must be under $2,000.00.
· If you are on Medicare and Medicaid pays ONLY your Medicare premiums,
your assets will not limit your eligibility in Louisiana. The income limits in Louisiana will vary depending on the size of your household.
If the USDA DFAP award increases your assets, AND you are receiving Medicaid because you are over age 65, blind, or disabled, AND you do not spend down to the allowable limit, you will become ineligible for Medicaid.
What can I do to avoid or lessen the impact of the USDA DFAP award on my Medicaid?
If you are receiving Medicaid because you are over age 65, blind, or disabled, you can avoid or lessen the impact of the USDA lump sum award by spending the money on an exempt resource. Examples of exempt resources include buying a home, a car, household good or personal effects, property essential for supporting yourself, life insurance, a burial plot and burial insurance.
For example, if you use the USDA DFAP payment to pay off a mortgage, pay off credit card or other debt, make home improvements or repairs, purchase a burial plot/plan, or trade in car for new one, you can spend down the amount of money necessary to be under the resource limit. DO NOT GIVE THE MONEY AWAY. This could make you ineligible for some Medicaid services for up to five years.
Do I need to report the USDA DFAP payment to Medicaid?
Yes. You should report to Medicaid the amount of the award you receive as soon as you get the money. If you do not report the award to Medicaid, you will have to pay back money you should not have received for covered health care expenses, and you may face other penalties or sanctions.
How do I get information from Medicaid about my benefits?
Call 1-888-342-6207, the Louisiana Medicaid Office or 1-866-ASK-ALSC (1-866-275-2572) for Acadiana Legal Service Corporation.
How can I find an attorney or advocate to help me understand the impact of the USDA DFAP award on my Medicaid?
Many USDA DFAP payment recipients can request brief legal advice through the ABA Free Legal Answers platform. You will need to select the state where you live and provide income information to determine eligibility for getting free advice. The advice is available to anyone with household income below 250% of the federal poverty guidelines. Once you are approved, you can create an account to ask a question and get advice from a volunteer attorney.
Residents in Delaware, Michigan, Minnesota, Montana, New Jersey, North Dakota, Ohio, and Rhode Island do not have access to the ABA Free Legal Answers platform. Alternative resources for residents of these states will be posted soon.
You can also contact the Legal Aid office that serves your community. Not all Legal Aid programs can assist with these kinds of questions, and they only serve people who meet financial eligibility requirements. You can look up your local Legal Aid at http://www.lsc.gov/about-lsc/what-legal-aid/i-need-legal-help
For general questions about your USDA DFAP award, contact the DFAP Call Center at 1-800-721-0970.
USDA DFAP Awards and Supplemental Nutrition Assistance Program (SNAP)
The information below is for the farmers and ranchers who applied for and received one-time, lump-sum awards from the United States Department of Agriculture (USDA) under the USDA Discrimination Financial Assistance Program (DFAP). DFAP was created to address the consequences of prior discrimination by USDA in USDA farm lending. This general information will help people who receive these USDA DFAP awards understand the potential impact of the money on SNAP benefits.
THE USDA AWARD MAY AFFECT YOUR SNAP ELIGIBILITY. EVERYONE’S SITUATION IS DIFFERENT. BE SURE TO CONSULT AN ATTORNEY OR ADVOCATE KNOWLEDGEABLE ABOUT SNAP IN YOUR STATE FOR SPECIFIC ADVICE. See below for a list of resources.
What are SNAP benefits?
SNAP is a federal program that provides benefits to low-income households to help pay for food at local grocery stores. SNAP benefits are administered by state human service agencies. SNAP eligibility and program rules differ in each state.
How could my USDA DFAP award affect my SNAP benefits?
Your eligibility for SNAP depends on your household’s income and assets/resources. The lump sum award you receive from the USDA DFAP is not income, but a resource. If your total resources increase above the maximum allowed by SNAP, you will no longer be eligible for SNAP. But if you remain eligible, your DFAP award will not affect the amount of SNAP you receive.
When is my USDA DFAP award considered “income” for SNAP?
A one-time, lump-sum payment by the government, like the USDA DFAP award, is never considered income for SNAP purposes.
When is my USDA DFAP award considered a “resource?”
Any of the USDA DFAP award left over after the month you receive it is a resource. For example: if you receive an award of $5,000 in June, and you spend $1,000 in June, the remaining $4,000 is a resource beginning in July and continuing each following month you have the money.
What are the SNAP resource limits in my state?
Remember, if you still have enough of the USDA DFAP award the month after you receive it to increase your total resources above the maximum allowed in your state, you will not be eligible for SNAP.
In Louisiana SNAP resource limits are:
$ 4,250.00, for households that:
· Contain at least one member who is age 60 or older, or disabled; OR
· Receive Supplemental Security Income (SSI); OR
· Receive Temporary Assistance for Needy Families (TANF, or welfare)
$ 2,750.00, for all other households.
What can I do to avoid or minimize the impact of the USDA DFAP award on my SNAP benefits?
If your USDA DFAP award will increase your resources above the limit, you can avoid its impact on your SNAP benefits by spending it in the month you receive it. It is a good idea to save receipts or other documentation of how you spent it, just in case your state agency has questions.
Some permissible ways to spend the DFAP award include: paying off bills (e.g. past due rent, utilities, credit cards); buying new furniture or household goods; buying new farm equipment; buying an irrevocable prepaid burial policy; buying gift cards for stores you often shop at (Wal-Mart, grocery store). Generally, it is not a good idea to pre-pay rent. If you have a large amount of money, consider funding a 529 account (for children’s educational expenses) or an ABLE account (savings for people who were disabled before age 26). Neither of these accounts are considered resources for SNAP.
DO NOT GIVE THE MONEY AWAY. Giving away the money could make you ineligible for the SNAP program for up to one year.
Do I need to report the USDA DFAP award to the human services agency in my state?
Best practice is to report all significant income and resource changes within 10 days of the change. Keep all receipts and other documentation of how the funds were spent in case your state agency asks you to prove you no longer have the funds available to you.
In Louisiana, if you spend the whole award in the month you receive it, you do not need to report it. If you have any money left over in the month afterward, and it pushes your resources above the limit, you should report it.
How do I get information about my SNAP benefits?
Contact your state SNAP agency. You can find contact info at www.dcfs.la.gov.
Where can I find more information about the impact of the USDA DFAP award on my SNAP benefits?
Many USDA DFAP award recipients can request brief legal advice through the ABA Free Legal Answers platform @ http://abafreelegalanswers.org/. You will need to select the state where you live and provide income information to determine eligibility for free legal advice, which is generally available to people with household income below 250% of the federal poverty guidelines. Once you are approved, you can create an account to ask a question and get advice from a volunteer attorney.
Alternative resources for residents in states that do not have access to the ABA Free Legal Answers platform will be posted soon to http://www.nlada.org/USDA-DFAP/award-recipients.
You can also contact the Legal Aid office that serves your community. Not all Legal Aid programs can assist with these kinds of questions, and they only serve people who meet financial eligibility requirements. You can look up your local Legal Aid at http://www.lsc.gov/about-lsc/what-legal-aid/i-need-legal-help
For general questions about your DFAP award, contact the DFAP Call Center at 1-800-721-0970.
USDA DFAP Awards and Supplemental Security Income (SSI)
The information below is for the farmers and ranchers who applied for and received one-time, lump-sum awards from the United States Department of Agriculture (USDA) under the USDA Discrimination Financial Assistance Program (DFAP). DFAP was created to address the consequences of prior discrimination by USDA in USDA farm lending. This general information will help people who receive these USDA DFAP awards understand the potential impact of the money on SSI benefits.
THE USDA DFAP AWARD Will AFFECT YOUR SSI ELIGIBILITY. EVERYONE’S SITUATION IS DIFFERENT. BE SURE TO CONSULT AN ATTORNEY OR ADVOCATE KNOWLEDGEABLE ABOUT SSI FOR SPECIFIC ADVICE. See below for a list of resources.
What is Supplemental Security Income (SSI)?
Supplemental Security Income (SSI) is a monthly cash assistance program run by the Social Security Administration (SSA). SSI provides a monthly check to individuals (adults and children) and some couples who meet very strict financial guidelines and are blind/disabled under SSA’s rules or are over 65. SSI is for people who have not worked enough to get Social Security on their own account or who only get a very small Social Security check.
What other benefits do the Social Security Administration (SSA) provide?
Social Security Retirement and Social Security Disability Insurance (SSDI) both come from SSA and are different from SSI. Both Social Security Retirement and SSDI require a person to have worked and paid into the Social Security system for a minimum number of quarters. The amount a person receives for Social Security Retirement and SSDI are based on how much they paid into Social Security. SSA also provides Social Security Survivor/Dependent benefits. Survivor/Dependent benefits are paid to eligible family members of people who worked and paid Social Security taxes before they died, retired or became disabled. Social Security Retirement, SSDI and Survivor/Dependent benefits are NOT affected by your USDA DFAP award.
How do I know whether the benefits I get from the Social Security Administration (SSA) are SSI or something else?
Many people do not know whether they are getting SSI or Social Security Disability/Retirement. There are a few ways to figure this out.
- Look at letters you get from the Social Security Administration. If a letter says “Supplemental Security Income” at its top, then the letter is about SSI.
- Look at the amount of money you get from SSA. The “full” federal SSI check is $943 per month for an individual and $1,415 for a couple where both people get SSI. If your check is much larger than this, you are likely getting other Social Security benefits and not SSI.
- Look at the date you get paid by SSA. If your money comes on the 1 st of the month, you are likely getting SSI. If you get paid on the 3rd of the month or later, you are likely getting other Social Security benefits.
- Call the Social Security Administration and ask if you get SSI.
How will my USDA DFAP award affect my SSI eligibility?
Under SSI rules, the USDA DFAP award is counted as income when you get it. If any is left after the end of the month, it counts as a resource. Both your increased income and resources are likely to affect eligibility for SSI benefits.
How will my increased income from my USDA DFAP award affect my SSI benefits?
When you get your USDA DFAP award, it counts as INCOME for SSI purposes in the month that you get the money. In general, the more income you get, the less your SSI payment will be. If you get too much income in a month, you may not be able to get SSI benefits for that month. You will likely have an OVERPAYMENT for SSI for the same month. A one-month overpayment is not a big problem. You do not need to worry too much about this if you avoid a resource problem. See below.
How will my USDA DFAP award change the amount of SSI I receive?
If the USDA DFAP award increases your countable income to more than your SSI benefit plus $20, you will not be eligible for SSI that month. If the DFAP award increases your countable income but your total countable income remains less than your SSI benefit plus $20, the countable income will be deducted from your SSI payment in two months.
For example:
If you receive $943 in SSI each month, then you receive $3,500 from the USDA in August, you are not eligible for your August SSI payment. SSA will request that you repay the $943 you received. (But remember, there are ways to deal with the overpayment, and you may not have to pay this money back.)
What can I do if SSA sends me a notice saying I owe an overpayment?
There are several ways to deal with the overpayment. You may not have to pay any of the money back. You might be eligible for a WAIVER of any overpayment. If you get a notice from the SSA that you have been overpaid, read the notice carefully. Ask for a waiver so you do not have to pay back the money. Be sure you respond by the deadline. If possible, get legal help. See below for possible resources. The absolute worst that will happen if you have an overpayment but are still collecting SSI is that SSA will take 10% of the full check out of your SSI benefit ($93.40) each month until the overpayment is paid back.
How will my increased resources from my USDA DFAP award affect my SSI benefits?
Resources or assets are things you own, including money in the bank. The amount of your USDA DFAP award left in the bank on the first day of the month after you get the award is counted as a resource. SSI has a limit on the total value of resources you can own and still get SSI. If you have more than $2,000 (individual) or $3,000 (couple) in countable resources in any month, you cannot get SSI benefits in that month. You might be able to get SSI in the next month if the value of your resources falls below the limit. See below.
WARNING: If the USDA DFAP award increases your resources above the limit and you do not spend down to the allowable resource limit or otherwise put the money in a place where it does not count for SSI purposes, you will become ineligible for SSI benefits. You will also likely lose your SSI for a period of time if you give the DFAP award away. If you are ineligible for more than 12 months, you will have to reapply to get back on SSI.
What can I do to avoid or minimize the impact of the USDA DFAP award on my SSI?
There are several ways to avoid having your USDA DFAP award count as a resource the month after you get it. Depending on the amount you get, consider seeking legal help to figure out the best options for your personal circumstances. Do not give the money away. Keep documentation of how you spend the money because SSA will likely make you prove that you do not still have it. You can spend the money on things you want or need. For example: ▪ Buy a home, a car, household goods, or personal effects. ▪ Pay bills or other debts. ▪ Set aside money in special accounts that do not count against you for SSI purposes, such as:
PLAN TO ACHIEVE SELF SUPPORT (PASS)
A PASS is a written plan of action for getting a particular kind of job or starting a business. For more information about PASS, see http://www.ssa.gov/ssi/spotlights/spot-plans-self-support.htm
ACHIEVING A BETTER LIFE EXPERIENCE (ABLE) ACCOUNT
An ABLE account is a savings account to which contributions can be made to pay for qualified disability expense of the account owner. The rules related to ABLE accounts are complicated and you should try to get legal help if you want to create one. To learn more about ABLE account, visit www.ablenrc.org and http://www.ssa.gov/ssi/spotlights/spot-able.html?tl=0
SPECIAL NEEDS OR POOLED TRUSTS
These accounts also allow you to set aside money for a person with a disability. The rules for both are complicated and you should get legal help if you want to create one.
Do I need to report the USDA DFAP award to SSA?
Yes. You must report to SSA the amount of the award you receive as soon as you get the money, and no later than the 10th day of the month after you receive it. You should also keep documentation of how you spend the money to provide to SSA. If you do not report the award to SSA, it will be more difficult to get a Waiver so that you do not have to pay back any SSI benefits that you should not have received.
What if I do not get SSI but someone in my household receives SSI?
If the person in your household who receives SSI is an adult but NOT your spouse, the USDA DFAP award you receive will not affect their SSI.
If the person who receives SSI is your spouse, it is possible that the award will affect your spouse’s SSI payment. The rules about how a spouse’s income and resources affect SSI payment are complicated. If you get a DFAP award and your spouse who lives with you gets SSI, you should seek legal help to figure out how the DFAP award will affect your spouse’s SSI payment.
If the person who receives SSI is your child or step-child, the award will likely affect the child’s SSI payment. The rules about how a parent’s or step-parent’s income and resources affect the child’s SSI are complicated. If you get a DFAP award and your child 5 USDA DFAP Awards and Supplemental Security Income (SSI) July 2024 or step-child who lives with you gets SSI, you should seek legal help to figure out how the DFAP award affects the child’s SSI payment.
How do I get information from SSA about my benefits?
Create and access your online account at http://www.ssa.gov/myaccount/. See more information at http://faq.ssa.gov/en-US/Topic/article/KA-01687.
Call 1-800-772-1213 between 8:00 a.m. – 7:00 p.m., Monday through Friday. If you are deaf or hard of hearing and use TTY equipment, you can call 1-800-325-0778. You may also be able to call your local office directly. To see if they have a local toll-free phone number that you can use, go to the SSA office locator at http://www.ssa.gov/locator/
Go to your local SSA office and ask them for help.
For more information about contacting SSA, visit http://www.ssa.gov/agency/contact/.
Where can I find more resources related to the impact of the USDA DFAP award on my benefits?
Many USDA DFAP award recipients can request brief legal advice through the ABA Free Legal Answers platform at http://abafreelegalanswers.org/. You will need to select the state where you live and provide income and asset information to determine eligibility for free legal advice, which is generally available to people with household income below 250% of the federal poverty guidelines. When answering questions about your assets, do not include your DFAP award. Once you are approved, you can create an account to ask a question and get advice from a volunteer attorney.
You can also contact the legal aid office that serves your community. Not all legal aid programs can assist with these kinds of questions, and they only serve people who meet financial and other eligibility requirements. You can look up your local legal aid at http://www.lsc.gov/about-lsc/what-legal-aid/i-need-legal-help.
Additional resources and information will be available soon at http://www.nlada.org/USDA-DFAP/award-recipients.
For general questions about your USDA DFAP award, contact the DFAP Call Center at 1-800-721-0970.