Earlier
this year, the United States Department of Agriculture (USDA) published a memo
to provide states with guidance on how to treat funds in crowdfunding accounts
when determining eligibility for the Supplemental Nutrition Assistance Program
(SNAP, formerly food stamps). Crowdfunding accounts are online platforms
through which donors fund specific campaigns for charity, needy individuals,
projects, or business ventures (e.g., Kickstarter, GoFundMe). The USDA
generally determined that state agencies administering SNAP benefits should
count funds in crowdfunding accounts to the extent that households can access
such funds. (Some crowdfunding platforms do not allow account holders to access
funds until they have reached a specified funding goal.) Read USDA’s memo on
crowdfunding here.
Earlier
this month, the USDA also distributed guidance on treatment of funds in
Achieving a Better Life Experience (ABLE) accounts when determining SNAP
eligibility. ABLE accounts generally allow eligible individuals and families to
save private funds for qualifying expenses related to disability or blindness.
Connecticut passed legislation last session that required the state treasurer
to establish an ABLE program and administer individual ABLE accounts (PA
15-80). Federal law requires funds in ABLE accounts be disregarded when
making eligibility determinations for means-tested federal programs. The USDA
determined that funds in ABLE accounts should be disregarded when state
agencies determine SNAP eligibility, as SNAP is a means-tested federal program.
Read the USDA’s memo on ABLE accounts here.
