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HomeMy WebLinkAboutAgenda 10-07-2025; 12-5 - Information Item - Memorandum - HR 1 Food and Nutrition Services Expanded Work Requirements 1 J o"NGE COUNTY DEPARTMENT OF SOCIAL SERVICES 113 Mayo Street, Hillsborough, NC 27278 1 919.245.2800 MEMORANDUM TO: Orange County Board of County Commissioners FROM: Lindsey Shewmaker, Social Services Director DATE: October 7,2025 SUBJECT: HR 1 Food and Nutrition Services Expanded Work Requirements Summary of Changes HR 1 made significant changes to the Federal Supplemental Nutrition Program(SNAP). The first of the major changes, expanded work requirements,will take affect this year and could cause many Food and Nutrition Services (FNS) recipients to lose benefits. The Orange County Department of Social Services will be working with other County departments and community partners to educate and inform individuals in those targeted populations about upcoming changes and will work with the same groups to try to mitigate the impact and keep people connected to benefits. It is unclear how many people in Orange County will be impacted by the changes,but we do know there are currently 868 older adults, age 55-64, currently receiving benefits. Statewide, 1 in 8 people receive FNS benefits, according to the North Carolina Department of Health and Human Services. Of those 1.4 million beneficiaries,46,000 are Veterans who may face eligibility changes depending on additional income and disability factors, 66%are members of families with children,many of whom will face eligibility changes depending on the age of children in the household, and 20% are members of families without children who are also likely to face eligibility or work requirement changes. To stay eligible after the changes are implemented,recipients will need to: • Work or volunteer at least 20 hours a week, • Participate in a training program, • Or be declared medically exempt by a doctor. Even if a recipient is already meeting these rules,they will now need to submit documentation or risk losing benefits. Background On July 4,2025,President Trump signed into law new rules that expand work requirements for the federal SNAP program,which in North Carolina we call the Food and Nutrition Services Program(FNS). Orange County Government I www.orangecountync.gov 1 919.732.8181 2 J o"NGE COUNTY DEPARTMENT OF SOCIAL SERVICES 113 Mayo Street, Hillsborough, NC 27278 1 919.245.2800 The FNS program has long had work requirements for a group identified as Able-Bodied Adults Without Dependents (ABAWDs). HR 1 expanded those requirements and removed several previous exemptions. General work requirements include: • Registering for work, or • Not voluntarily quitting a job or reducing your work hours below 30 a week without a good reason, or • Voluntarily participating in FNS Employment and Training(More than a Job,NC) and taking a suitable job if offered. Recipients can be exempt for these general work requirements if they are: • Already working at least 30 hours a week or earning at least$217.50 in pre-tax income per week, or • Taking care of a child under age 6 or an incapacitated person, or • Receiving TANF, or • Receiving or applied for unemployment, or • Studying in school or a training program at least half-time(but college students are subject to other eligibility rules), or • Have a physical or mental disability that prevents you from working(including pregnancy), or • Participating regularly in an alcohol or drug treatment program. If an individual is not working 30 hours per week and falls under the category for an ABAWD,they must meet the following work requirements to continue receiving FNS benefits: • Work at least 80 hours a month(work can be paid or unpaid,volunteer, or for goods or services (something other than money), or • Participate in a work program at least 80 hours a month, or • Participate in a combination of work and work program hours for a total of at least 80 hours a month. A work program includes FNS Employment&Training(More than a Job,NC),the TANF work program, and the Workforce Innovation and Opportunity Act(WIOA)work program, all of which Orange County Department of Social Services currently runs. Prior to the new legislation,the category for ABAWDs included adults age 18-54. Exempt populations included persons experiencing homelessness,veterans,those living with children under age 18, and young adults who had aged out of foster care. The changes to the law will go into effect in the next two months. States must begin tracking this three-month time limit for people newly subject to this requirement when they are approved or recertified for benefits. The USDA guidance is not Orange County Government I www.orangecountync.gov 1 919.732.8181 3 J o"NGE COUNTY DEPARTMENT OF SOCIAL SERVICES 113 Mayo Street, Hillsborough, NC 27278 1 919.245.2800 detailed,but this means that people who apply or are recertified beginning in October 2025 (or earlier depending on start date)will exhaust their three months of benefits as soon as January 1 and states will, at that time,begin cutting people off FNS who cannot document that they qualify for an exemption or are meeting the 20-hours per-week work requirement. Who is Impacted? The work requirements changes will impact FNS recipients who were previously exempt based on one or more qualifying factors.The law expands the existing work requirements to include: • Older adults aged 55 through 64; and • Parents/caretakers with children aged 14 and older; and • Veterans; and • People experiencing homelessness; and • Young people who recently aged out of foster care. Unless they can document 20 hours per week of work or participation in a narrow set of work activities or prove they qualify for an exemption,these individuals now can only receive FNS for three months in a three-year period. If these adults are cut off,benefits will be reduced significantly for their remaining household members, including children in school. When will these changes take effect? These changes were signed into law on July 4, 2025, and must take effect soon. On Friday, September 19th, 2025,North Carolina counties received guidance from the North Carolina Department of Health and Human Services stating that counties should"continue using current procedures and await further instruction from DHHS." States have 120 days from the date a law is signed before they are held accountable for program changes. This hold- harmless period for quality control(QC)purposes will expire on November 1,2025.We currently expect the State to have the new rules in place by mid-October or earlier. Once the policy changes are rolled out in North Carolina, staff will have to evaluate new applications and recertifications based on the policy changes. For the below examples, assume the policy changes are effective October 15th,2025. Example 1: Carl is a 55-year-old man who is currently not working. He applies for FNS benefits on October 16th,2025.He will be informed at application that he is subject to work requirement rules and will need to show that he is working in a paid or unpaid job, seeking employment, or participating in a training or jobs program for 20 hours per week to continue Orange County Government I www.orangecountync.gov 1 919.732.8181 4 J o"Nce COUNTY DEPARTMENT OF SOCIAL SERVICES 113 Mayo Street, Hillsborough, NC 27278 1 919.245.2800 receiving benefits. His work hours will need to be reported monthly. If he fails to meet these requirements for three months,he will lose benefits and be unable to receive FNS for three years unless he begins meeting work requirements. Carl will also be asked if he meets any exemptions, including being medically unable to work. If his doctor provides verification that he is medically unable to work, or if he meets any other exemption, Carl will be exempt for the new requirements. Example 2: Lucy is a 60-year-old woman who has been receiving FNS benefits for several years. She must recertify her eligibility every six months.When Lucy comes to recertify her benefits after October 15`h, she will be informed that she is now subject to the new work requirements. Communication Strategies and Plans Orange County Social Services is working with the State to identify a list of current recipients likely to be impacted by these changes. In the meantime, data shows there are 868 individuals who are age 55-64 currently receiving benefits. Some of this group is likely to meet another exemption but staff are working with community partners to help educate the target populations. (older adults,persons experiencing homelessness, and veterans) Strategies include: • Providing notice in advance of these changes through advertising and partnerships with the Orange County Department on Aging,the Orange County Housing Department,the Orange County Criminal Justice Resource Department,the Orange County Office of Civil Rights& Civic Life, churches, and other community partners. (early communication materials are included as an attachment) • Holding a targeted job fair in partnership with the Department on Aging for seniors. • Working with the Chapel Hill/Carrboro Chamber of Commerce and Hillsborough Chamber of Commerce to identify local employers committed to an age-diverse workforce. • Identifying volunteer opportunities for adults who are not seeking paid employment that can meet work requirements. • Attending community outreach events and provide information on program changes and opportunities for employment activities. Orange County Government I www.orangecountync.gov 1 919.732.8181 +- - I 1 1 • 1 • 1 1 • 1 1 } • . 1 . 1 1 • 1 . . . r r s 1 1 1 • • . • / 1 . • • �h 1 1 . 1 ' • 1 ' 1A All , • • • Even if you are already meeting these rules, you may now need to submit documentation or risk losing your benefits. Please respond to phone calls or letters you receive from your caseworker to keep Your benefits. ORANGE COUNTY DEPARTMENT OF Call 919-245-2800 for more information. SOCIAL SERVICES Changes to FNS r On July 4, 2025, President Trump signed into law ` new rules that expand work requirements for Food and Nutrition Services (FNS). Persons experiencing homelessness will now be subject to work requirements -- unless they are able to meet another exception to the , rules.These rules will take effect soon in North Carolina. _ , �► To stay eligible you may need to: H • Work or volunteer at least 20 hours a week, " • Participate in a training program, - '4 • Or be declared medically exempt by a doctor. 000 Even if you are already meeting these rules, you may now1 1submit Changes to FNS On July 4, 2025, President Trump signed into law new rules that expand work requirements for Food and Nutrition Services (FNS).Veterans will now be subject to work requirements unless they are able ` to meet another exception to the rules.These rules will take effect soon in North Carolina. To stay eligible you may need to: • Work or volunteer at least 20 hours a week, • Participate in atraining program, • Or be declared medically exempt by a doctor. 000 Even if you are already meeting these rules, you may now need to submit Y)t documentation or risk losing your benefits. Please respond to phone calls or ORANGE COUNTY letters you receive from your caseworker to keep your benefits. D� 919-245-2800