Page 35

Title 7: SNAP Page 32 Iowa Department of Health and Human Services Employees’ Manual Chapter G: Case Maintenance Common Changes in Household Circumstances Revised September 5, 2025 Penalty for Means-Tested Program Sanction Comment: Other than FIP, we aren’t aware of any means-tested programs that reduce cash benefits as a sanction. SSI reduces cash benefits to collect on an overpayment. This is a collection action, not a penalty. See 7-E, Recoupment.

Mr. Q’s SSI payment is being reduced to collect on an SSI overpayment. The Social Security Administration representative tells you that Mr. Q purposefully did not report earnings. The Social Security Administration did not sanction Mr. Q, but recouped the overpayment over a series of months. The 10% reduction is not applied to Mr. Q’s SNAP because his SSI payments are being reduced as a recoupment. Penalty for a FIP Sanction Legal reference: 7 CFR 273.11(j) Policy: Reduce a household’s SNAP by 10% when its FIP grant is reduced due to a FIP sanction. Apply the 10% reduction of SNAP for the same months FIP applies the sanction. Procedure: Impose the penalty when a household’s FIP is reduced as a sanction due to failure to:  Apply for other benefits for which the FIP recipient may qualify, or  Cooperate with the Child Support Recovery Unit. Apply the SNAP penalty and the FIP sanction at the same time. Leave the penalty as long as the FIP sanction is in place. Do not apply the penalty when FIP is reduced for any reason not listed above. It is not a sanction when:  A household is placed in the FIP limited benefit plan, or  FIP is being recouped. See 7-E, Recoupment. To implement the 10% penalty, see 14-B(5), Penalty for Not Following Another Program’s Rules. Do not apply the 10% SNAP penalty retroactively. The penalty is not imposed on eligible one-member and two-member households who are eligible for the minimum benefit due to categorical eligibility, because the decreased FIP income does not result in increased SNAP benefits. Workers do not determine this. Code the penalty when applicable, and the system will disregard it for these households. Comment: A FIP grant can increase even if a FIP sanction is in place. The 10% penalty still applies if the grant increases during the FIP sanction period.