Page 6

Delaware TANF State Plan 10-1-23 to 09-30-26 Page 6 of 59

• Financial assistance received from school grants, scholarships, vocational rehabilitation payments, JTPA payments, educational loans, and other loans that are expected to be repaid will not be counted as income for TANF program purposes. Also, other financial assistance received that is intended for books, tuition, or other self-sufficiency expenses will be excluded; • Earnings of dependent children, regardless of student status, will be disregarded in determining the family's eligibility and the amount of TANF benefits; and • A one-time bonus payment of $350.00 will be paid from TANF funds to teens who graduate from high school by age 19 and are on the TANF grant. This bonus, which will be paid directly to the high school graduate, will be disregarded as income. This one- time payment is MOE-funded. Families with teens who are eligible for this bonus must be receiving TANF benefits. A family's income must meet the standards described on page 6 for the family to be financially eligible for TANF. DSS staff must verify that the student has graduated from high school before issuing the bonus payment.

A family's income must be less than 185% of the applicable standard of need for the family to be financially eligible for TANF.

Income Tests to Determine Eligibility

There are two income tests to determine financial eligibility. The first test is a gross income test, and the second is a net income test.

• Gross income test: Compares the family's income to 185% of the applicable standard of need. Both applicants and recipients must pass this income test; and • Net income test: Compares a family's income, after applying certain disregards, to the applicable standard. o For applicants, defined as families who have not received assistance in at least one of the four months immediately preceding the application, the net income is compared to the payment standard. o For recipients, defined as families who have received assistance in at least one of the four months preceding the application or are current recipients, the net income is compared to the standard of need. • A family's income must be less than the gross and net income limits for the family to be financially eligible for TANF. Once eligibility is established, the grant amount is determined. • Gross income is the total of the earned and unearned income.