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Title 7: SNAP Page 17 Iowa Department of Health and Human Services Employees’ Manual Chapter F: Budgeting Anticipating Income Revised February 13, 2026 Calculating Benefit Level 4. Subtract the Step 2 total from the Step 3 total. This is the net monthly allotment. See Exceptions to Benefit Level for minimum benefits in certain circumstances and Prorating Initial Month’s Benefits for payment for a partial month. Exceptions to Benefit Level Legal reference: 7 CFR 273.10(e)(2) and (4) Policy: If the allotment is not prorated as an initial month’s benefits and is $1, $3, or $5, certify the household for $2, $4, or $6, respectively. For an initial month’s prorated benefits, see the next section. The minimum monthly allotment for all eligible one-member and two-member households is $23. In an initial month, prorate this minimum monthly allotment from the date of application. When net-tested households, with three or more members, have a calculated allotment of zero, this is because their net income exceeds the minimum level for which benefits are issued. The system will automatically deny these households. Prorating Initial Month’s Benefits Legal reference: 7 CFR 273.10(a)(1) and 273.2(h)(2), 441 IAC 65.6(234) Policy: An “initial month” is the first month a household is certified following any break in certification. EXCEPTION: For migrant or seasonal farm worker households, “initial month” means the first month the household is certified following a break in participation of at least one month. In the initial month of certification, prorate the amount of net monthly allotment (Step 4 of Calculating Benefit Level), from the date of application through the end of the month. Determine the amount of the prorated allotment by using the following formula:

Net Monthly Allotment (from Step 4) × (31 - date of application) ÷ 30 = Initial Prorated Allotment Procedure: When using the prorating formula, do the following steps: 1. Subtract the date of application from 31 2. Multiply the Step 1 total by the full month’s allotment 3. Divide the Step 2 total by 30 4. Round the Step 3 total down to the whole dollar (drop the cents).