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TANF STATE PLAN STATE OF MICHIGAN DEPARTMENT OF HEALTH AND HUMAN SERVICES

Page 7 Revision Date: July 1, 2025

Policy for FIP is derived from the Social Security Act, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PL 104-193 of 1996), Michigan’s Social Welfare Act (Act 280 of 1939, as amended), and Michigan’s Administrative Rules.

Persons applying for or receiving assistance under FIP must meet certain eligibility factors. A. BASIC ELIGIBILITY REQUIREMENTS 1. Assets The family must have $15,000 or less in countable liquid assets and the total assessed value of real property must be $200,000 or less. Cash assets, such as currency, savings and checking accounts, investments, retirement plans, and trusts, are countable. Funds received for repair or replacement of a homestead are excluded for the period of time needed for repair or replacement, provided there is a written repair or replacement agreement. Funds received for the sale of a homestead are excluded for up to 12 months if the client has made a purchase agreement for another homestead.

Other cash exclusions include funds for the repair or replacement of household or other goods, funds from a bona fide loan, tax refunds and credits, accounts used solely for the expenses of a business, Flint Water Settlement funds, and funds from the earnings of a child under age 18 who is a student. Funds from excluded sources must not be commingled with countable assets or placed in time deposits. 2. Income The family’s monthly countable income minus disregards and allowable expenses must be less than the maximum monthly benefit amount for the group.

The following disregards apply to earned income.

• A qualifying income test is completed for application months. The first $200 plus 20% of the remainder of each employed person’s monthly earned income is disregarded. This result is added to any other countable income and compared to the maximum monthly benefit amount for the group. If the result is at least $1, the group passes the test. Otherwise, the group is not eligible.

• The first $200 plus 50% of the remainder of each employed person’s monthly earned income is disregarded when calculating the issuance amount for ongoing benefits.

The earnings of a child under age 18 who is attending school are completely excluded.