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Title 7: SNAP Page 33 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 Establish a claim for any month in which the penalty should have been in place, if it is later discovered that the SNAP penalty was not applied.

Mrs. C fails to cooperate with CSRU in July. The worker sanctions Mrs. C by reducing her August FIP grant. The worker forgets to start the 10% SNAP penalty when reducing Mrs. C’s August FIP grant. In October, Mrs. C verifies that she cooperated with CSRU. The worker ends the FIP sanction for October. At that time, the worker discovers that the 10% SNAP penalty was never applied. The worker must establish a SNAP claim for August, September, and October. Penalty When Sanctioned Household Applies for FIP or SNAP Legal reference: 7 CFR 273.11(j) Policy: When a FIP sanction is in place and a household:  Applies for SNAP and FIP on the same application, start the 10% penalty when you approve the application.  Applies for FIP on an ongoing SNAP case, start the 10% penalty to SNAP for the month after FIP is approved. Timely notice is required.  Applies for SNAP on an ongoing FIP case, start the 10% SNAP penalty when you approve SNAP benefits.

1. Mr. M has an active SNAP case. In March, he applies for FIP and a prior sanction is in place. He fails to cure the sanction and FIP is approved on March 13. The 10% reduction is applied to his SNAP for April. 2. Ms. R’s household is approved for FIP and SNAP on May 7. Ms. R’s FIP grant is still under sanction for failing to cooperate with CSRU. Because the FIP sanction is in place when FIP and SNAP are approved at the same time, Ms. R’s SNAP is reduced by 10% for May. 3. Ms. T applies for SNAP and FIP on October 18, and has a prior child support sanction. She is eligible for emergency service and is approved for SNAP on October 19. Since FIP is not active at the time of SNAP approval, the 10% penalty is not applied. When FIP is later approved on October 29, the 10% penalty is imposed for December benefits, allowing for timely notice. Ending the 10% Penalty Legal reference: 7 CFR 273.11(j) Policy: Do not apply the 10% SNAP penalty in months FIP is suspended or canceled.