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Chapter: 1600 Assets

Program: FS 12 1610.0584 Lottery and Gambling Winnings (FS) Lottery or Gambling Winnings are defined as a cash prize equal to or greater than the maximum allowable asset limit for elderly and disabled households won in a single game before taxes or other withholdings. For the purposes of this provision, this asset limit applies to all households, including non-elderly/disabled households.

All households receiving Food Stamps must report when they receive substantial lottery or gambling winnings. These winnings must be reported within 10 days following the end of the month in which the household received the substantial lottery or gambling winnings. If multiple individuals shared in the purchase of a ticket, hand, or similar bet, then only the portion of the winnings allocated to the member of the food stamp household will be counted toward the eligibility determination.

Substantial lottery or gambling winnings received by any individual in the household will disqualify the entire food stamp assistance group. The eligibility specialist must take prompt action to close the food stamp case. Notice of Adverse action will be provided. The household may reapply at any time for food stamp benefits. When the household reapplies after losing eligibility due to lottery or gambling winnings, they must meet all regular financial asset limits and income eligibility to regain eligibility – categorical eligibility rules cannot be applied at this time. After the household is found eligible using regular non-categorical rules, they may regain categorical eligibility at the next change, recertification, or application.

When a member of the assistance group (including Head of Household) that lost eligibility due to receipt of lottery/gambling winnings moves out of household, the household composition of the original assistance group no longer exists. The separate household (remaining members) may reapply and have eligibility determined using normal food stamp rules, including categorical eligibility rules, if applicable.

The value for substantial winnings will be adjusted annually. 1610.0593 Assets Excluded by Federal Law (FS) Items excluded by federal law as income are also excluded as assets. These items include, but are not limited to the following:

1. Payments to a natural child of a Vietnam veteran born with spina bifida, except spina bifida occulta, as a result of the exposure of one or both parents to Agent Orange (P.L. 104-204).

2. Payments to a natural child of a woman Vietnam veteran born with one or more birth defects resulting in permanent physical or mental disability (P.L. 106-419).

3. Disaster assistance payments (P.L. 100-707). This exclusion applies to federal disaster assistance and comparable state or local assistance.

4. Payments received under the Alaska Native Claims Settlement Act (P.L. 92-203, Section 29 and the Amendments P.L. 100-241, 2/3/88). All compensation (including cash, stock, partnership interest, land, interest in land, and other benefits) are excluded.

5. Payments received for children under the Child Nutrition Act [P.L. 89-642, section 11(b)]. Programs include the Special Milk Program, the School Breakfast Program and the WIC Program.

6. Coupons that may be exchanged for food at farmers' markets, as part of a WIC demonstration project, which are received as a result of the Child Nutrition Act of 1966 (P.L. 100-435, Section 501, 9/19/88).