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FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 Determine the allowable monthly medical deduction for recurring expenses by adding the total monthly expenses to the converted monthly amount for non- monthly expenses. 7. Expenses Reported During the Certification Period a. The FNS unit is not required to report changes in medical expenses during the CP. b. If a FNS unit reports a change in medical expenses that would increase benefits during the CP, request verification of the reported change in medical expenses prior to acting on the change. Send a DSS-8650. Do not terminate benefits if the FNS unit fails to provide verification. 8. Budgeting Recurring Expenses During the Certification Period a. Determine the allowable deduction for the changed medical expense. b. Add this amount to the current expense being allowed. The result is the new monthly medical deduction. c. Delete any existing expense being replaced by a new or changed expense. 340.15 SPECIAL PROCEDURES FOR MEDICAL EXPENSES A. When a specified person resides in a group home, only allow the medical expenses that can be identified separately from food and shelter payments made to the home. B. Verified anticipated changes in the FNS unit medical expenses are allowed if they can be reasonably expected to occur during the CP based on available information about the recipient’s medical condition, public or private insurance coverage, and current medical expenses. This can be a “one-time-only” or a “recurring” expense. Example: A specified person states he will start a new medication next month, and the pharmacist verifies the cost of the new medication. If the FNS unit reports an anticipated expense but verification is not available, flag the case to request verification when the expense occurs. C. The lump-sum annual adjustment that some veterans receive is not considered a reimbursement for medical expenses. The amount of the monthly pension payment and the annual adjustment are based on the family’s other income and expenses. At the end of the year, the Veteran’s Administration (VA) sends a letter to the family requesting verification of the past year’s income and out-of-pocket medical and educational expenses. The VA will then either establish a claim for an overissuance or make a retroactive income payment to the family. Monthly pensions in the coming year may also be adjusted. The annual adjustment is not considered to be a recurring