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TANF Transmittal 71

901.14 TANF MANUAL 7/21 Page 14

Eligibility continues during FEP participation even though changes reported would otherwise cause the case to be ineligible, e.g., a parent with income in excess of 130% of the federal poverty level.

1. During placement in FEP employment, the recipient must continue to report required changes (Section 401.2.B.2.), and the changes must be entered in VaCMS. Although the information entered does not affect eligibility of the TANF case, the changes must be evaluated in accordance with SNAP and Medicaid requirements and may impact the assistance unit’s eligibility for SNAP or Medicaid.

2. If a redetermination is due anytime during the FEP placement and the case is receiving TANF and SNAP, the redetermination must be completed when due. Changes in the participant’s circumstances will not affect TANF eligibility during the FEP placement, except as noted in paragraph B above.

3. If the case is TANF only, the eligibility worker may postpone the redetermination until the last month of the FEP placement, since a full evaluation of eligibility must be completed at that time. In determining ongoing eligibility following termination of the FEP placement, the EW must take into account any changes that have occurred during the placement. If the FEP participant is retained by the employer following termination of the placement, wages received are evaluated the same as for unsubsidized employment.

4. Any wages earned while participating in the FEP will be excluded for up to six months per each participating individual. For example, if two people on a VIEW case are participating in FEP, then both of their wages will be excluded for up to six months during the VIEW participation period. If both parents are participating in VIEW and only one parent participates in FEP, then only the income for the FEP participant will be excluded.

C. Issuance of Stipend Payments to the Employer - The employer stipend is a monthly payment paid as partial reimbursement of expenses incurred by the employer for wages and training provided to the FEP participant. The stipend is predetermined and will be distributed in tiers:

• Tier I: Participant works 20 or more hours per week – employer will receive $500 • Tier II: Participant works 30 or more hours per week – employer will receive $750 • Tier III: Participant works 40 or more hours per week – employer will receive $1000

Stipends are normally issued on the first of each month through the monthly batch process. However, the first stipend must be issued through Benefit Adjustment when VaCMS cannot be updated because of the 10-day timely notice period.

Stipends are paid beginning the month after the participant enters a FEP placement. FEP stipends are issued for up to six consecutive months unless notified by the ESW to discontinue the payments prior to the end of the placement. In no instance are stipends to be paid for more than six months.

Example: TANF household with one parent, Mary Jay, is enrolled in FEP activity with Employer A for 3 consecutive months working at least 20 hours per week. In the 4th month, Mary worked more than 30 hours per week for the month. Worker changes the FEP Tier in the Activity Details screen from Tier 1 to Tier 2 in the 5th month. The ESW will inform the EW to re- determine TANF benefits for the household. Upon running eligibility, the household will be evaluated for TANF benefits. Mary Jay will be considered as a FEP individual and earned income for her will be not considered. A FEP stipend issued to Employer A will be issued with a Tier 2 benefit amount for the 6th month.