Page 1

Copies of this publication may be obtained by calling 651-296-6753. This document can be made available in alternative formats for people with disabilities by calling 651-296-6753 or the Minnesota State Relay Service at 711 or 1-800-627-3529 (TTY). Many House Research Department publications are also available on the Internet at: www.house.mn/hrd/hrd.htm. INFORMATION BRIEF Research Department Minnesota House of Representatives 600 State Office Building St. Paul, MN 55155

Danyell Punelli, Legislative Analyst 651-296-5058 Updated: August 2010

Minnesota Family Investment Program Grants: Calculation and Exit Points

The Minnesota Family Investment Program (MFIP) is a jointly funded, federal- state program designed to provide income assistance for eligible low-income families. MFIP replaced the Aid to Families with Dependent Children (AFDC) program, which was repealed by Congress in 1996. This information brief describes how MFIP grants are calculated and describes the current exit points for the program.

MFIP Grant Calculation Minnesota’s welfare reform legislation based the MFIP grant for families on a “transitional standard” that incorporated both a cash portion and a food portion (replacing the food support award).1

Eligible families with no earnings receive monthly grants equal to the transitional standard. The transitional standard includes both a cash portion and a food portion.2 The cash portion equals the AFDC standard in effect before welfare reform. MFIP families receive the food portion of assistance as part of the MFIP grant instead of receiving a separate benefit through the federal Supplemental Nutrition Assistance Program (SNAP).

1 Minn. Stat. § 256J.24, subd. 5. 2 Although MFIP combines cash and food assistance, the federal Supplemental Nutrition Assistance Program (SNAP) remains in effect for individuals and families who are not on MFIP. In Minnesota, most SNAP recipients are: (1) adults in households that do not qualify for MFIP because no children are present; or (2) former MFIP families with earnings high enough so that their MFIP grant would be less than the food portion of the grant. (By receiving food support instead of MFIP, families are subject to federal SNAP’s requirements and are not subject to any of MFIP requirements.)