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FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 NOTE: Benefits must be restored if an SSI applicant is later determined to be eligible for SSI benefits. In computing the restoration, allow the unlimited excess shelter deduction retroactive to the date of the FNS application or the date of initial SSI eligibility, whichever is later. NC FAST will automatically calculate the ongoing excess shelter expense based on information entered into the system. B. FNS unit Containing an Ineligible Alien, an Ineligible Individual Who Fails or Refuses to Obtain or Provide a SSN, or an Ineligible Able-Bodied Adult Without Dependents (ABAWD). 1. Allow the eligible FNS unit members a prorata share of the shelter, legal support obligation, and child care expenses that are paid by the ineligible member from the ineligible member’s own income. Include all FNS unit members in the utility expense for calculation of the utility deduction. This includes eligible and ineligible FNS unit members. 2. Determine the prorata share by: a. Dividing the allowable shelter expenses evenly for all FNS unit members including ineligible and disqualified members; and b. Multiplying the prorata share by the number of eligible and disqualified persons included in the FNS unit. This is the allowable expense. NOTE: An ineligible member is included in determining the utility deduction (SUA, BUA, or TUA); this amount is not to be prorated. 3. When an elderly or disabled individual (specified person) is the ineligible member, the capped shelter amount must be used for the eligible FNS unit members even if the shelter and utility expenses are paid by the ineligible member. 4. NC FAST automatically calculates the prorata share based on information entered in the system. C. FNS unit Containing a Disqualified Member 1. Allow the FNS unit a full deduction for shelter and utility expenses even if paid or incurred by a disqualified individual. Do not prorate the expenses. 2. This applies to individuals disqualified due to: a. Intentional Program Violation; b. Felony drug conviction, c. Fleeing felon, d. Probation/parole violator,