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Food and Nutrition Service, Braddock Metro Center, 1320 Braddock Place, Alexandria, VA 22314 USDA is an Equal Opportunity Provider, Employer, and Lender Docusign Envelope ID: BAD1DB50-22E3-4162-878B-B32285F53FCC July 15, 2024 Andrea Brayboy Branch Chief CalFresh and Nutrition Branch California Department of Social Services 744 P Street, OB 8 Room 922 Sacramento, California 95814 Dear Branch Chief Brayboy: This letter is in response to the Standard Medical Deduction (SMD) Demonstration Project annual report the California Department of Social Services (the State) submitted to the Food and Nutrition Service (FNS) on December 21, 2023. After reviewing the report, FNS has determined the State should increase its SMD amount and revise the Heating and Cooling Standard Utility Allowance (HCSUA) offset amount to maintain cost neutrality for this project. FNS is modifying the approval of the demonstration waiver contingent upon the new SMD amount of $150 and the new HCSUA offset amount of $4 with an effective implementation date of October 1, 2024. FNS believes a $150 SMD and $4 HCSUA offset – not the current $120 SMD and $3 offset – is sufficient to achieve the cost neutrality requirement associated with the terms and conditions of the SMD demonstration project. The project expires September 30, 2025, as indicated in FNS' August 26, 2021, approval letter. All other terms and conditions of that approval apply to this modification. We are requesting that your agency submit as quickly as possible, written acceptance of the approval. The appropriate State official should sign your written acceptance of these terms and conditions. Attach this acceptance letter to a chatter post in WIMS case #8395. Please alert FNS when uploading the document by tagging the relevant Regional and National staff listed in the WIMS case team using the @ sign. Sincerely, Moira Johnston Acting Director Program Development Division Supplemental Nutrition Assistance Program