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Minnesota Family Investment Program Minnesota House Research Department Page 16 Care Assistance, and health care programs was also transferred to the Red Lake Band of Chippewa Indians. Some of the features of the Red Lake Band’s program are different from MFIP, including the following: The Band imposes some additional types of sanctions. School attendance is mandatory for Red Lake Band assistance units headed by a minor. The Band allows cultural activities to be provided under employment services. Benefits MFIP benefits are based on family size, with the MFIP grant composed of a cash portion and a food portion.26 Counties issue both the cash and the food portion of an MFIP family’s grant in electronic debit card form, called EBT (Electronic Benefits Transfer). However, the two kinds of benefits are electronically segregated on the family’s EBT card. This ensures that the family can only use the food portion of their MFIP benefit to purchase food items that are approved under the federal SNAP program, from a retailer that has been approved under that program. There are no such restrictions on the cash portion of the MFIP benefit; the family accesses these benefits through automatic teller machines (ATMs). There are certain locations at which no person may obtain cash benefits through the use of an EBT card, including gambling establishments, tattoo parlors, liquor stores, and tobacco stores. Additionally, EBT cards cannot be used to purchase tobacco products or alcoholic beverages. EBT cardholders are also limited to using the cash portion on the EBT card in Minnesota and the surrounding states.27 A recipient found to be guilty of using an EBT card to purchase prohibited items is disqualified from receiving assistance for one year for the first offense, two years for the second offense, and permanently for the third offense. Beginning October 1, 2021, both the cash and food portion of the transitional standard are annually adjusted for inflation. Prior to October 1, 2021, only the food portion of the transitional standard was annually adjusted for inflation.
26 MFIP families receive the food portion of assistance as a part of the MFIP grant, instead of receiving a separate benefit through the federal SNAP program. The MFIP food portion uses the same EBT mechanism to deliver the food benefits as the SNAP program does. 27 See Minn. Stat. § 142A.13, subds. 2, 3, and 12.