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Federal Register / Vol. 86, No. 2 / Tuesday, January 5, 2021 / Rules and Regulations
shared equally between the Federal government and State agencies.
The estimates were derived as follows:
Between FY 2016 and FY 2018, the Federal share of 5050 spending increased by about $17 million, from $171 million to $188 million. Therefore, we assume that the Federal share of State 5050 spending would have increased by about $8 million per year.
In response to the changes in allowable components and activities as
well as the case management requirement, we assume that each year beginning in FY 2022 a small number of States increase their 5050 spending beyond current projected spending. In FY 2020 and FY 2021, we assume no States increase their 5050 spending due to the ongoing pandemic. In FY
2022, 4 States spend about 10 percent more, and by FY 2024 8 States have increased their spending by about 10
percent overall.

The per-State increase in 5050
spending is approximately $0.5 million per State. The per-State increase is estimated as follows: A 10 percent increase in 5050 spending equals $20.5
million in FY 2020. There are 53 State agencies including the District of Columbia, Guam, and the U.S. Virgin Islands, 43 of which currently spend 5050 funding on E&T services, therefore $20.5 million is divided by 43
to calculate the average $20.5 million/
43 = $0.49 million.

TABLE 7EXPECTED INCREASE IN STATE 50-50 SPENDING OVER TIME
Dollars in millions
FY 2020

FY 2021

FY 2022

FY 2023

FY 2024

Total
Pre-Farm Bill projected 50-50 spending ..
10% increase amount per State
Number of States increasing spending
State agency Cost

205
.49
0 0

213
.49
0 0

221
.49
4 2

229
.49
6 2

237
.49
8 5

10

Total, Federal + State

0

0

4

7

10

21

Totals may not sum due to rounding.

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Benefits of Final Rule The Department believes the statutory changes made by Section 4005 of the 2018 Farm Bill are intended to strengthen E&T programs and improve SNAP participants ability to gain and retain employment, thus reducing participant reliance on the social safety net. The changes contained in the final rule allow for more evidence-based activities, requiring more accountability on the part of both State agencies and E&T participants, while also retaining State flexibility. The requirement to inform ABAWDs of their work requirement will help ensure that these individuals are adequately informed of their responsibilities with respect to work requirements and of what steps they should take in order to comply with those requirements, or if they believe they should be exempt from those requirements.
Regulatory Flexibility Act The Regulatory Flexibility Act 5
U.S.C. 601612 requires Agencies to analyze the impact of rulemaking on small entities and consider alternatives that would minimize any significant impacts on a substantial number of small entities. Pursuant to that review, the Secretary certifies that this rule would not have a significant impact on a substantial number of small entities.
This final rule would not have a measurable impact on small entities because the changes required by the regulations are primarily directed toward State agencies operating SNAP
programs and SNAP E&T programs.
Some E&T providers may be considered
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small entities. This rule requires that E&T providers inform the State agency within 10 days when they have made a determination that an individual who was referred for E&T services is not a good fit for the component.
Congressional Review Act Pursuant to the Congressional Review Act 5 U.S.C. 801 et seq., the Office of Information and Regulatory Affairs designated this rule as not a major rule, as defined by 5 U.S.C. 8042.
Executive Order 13771
Executive Order 13771 directs agencies to reduce regulation and control regulatory costs and provides that the cost of planned regulations be prudently managed and controlled through a budgeting process. This final rule is considered an E.O. 13771
regulatory action. We estimate that it will impose $20.30 million in annualized costs at a 7% discount rate, discounted to a 2016 equivalent, over a perpetual time horizon.
Unfunded Mandates Reform Act Title II of the Unfunded Mandates Reform Act of 1995 UMRA, Public Law 1044, establishes requirements for Federal agencies to assess the effects of their regulatory actions on State, local and tribal governments and the private sector. Under section 202 of the UMRA, the Department generally must prepare a written statement, including a cost benefit analysis, for proposed and final rules with Federal mandates that may result in expenditures by State, local or tribal governments, in the aggregate, or the private sector, of $100 million or
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more in any one year. When such a statement is needed for a rule, Section 205 of the UMRA generally requires the Department to identify and consider a reasonable number of regulatory alternatives and adopt the most cost effective or least burdensome alternative that achieves the objectives of the rule.
This final rule does not contain Federal mandates under the regulatory provisions of Title II of the UMRA for State, local and tribal governments or the private sector of $100 million or more in any one year. Thus, the rule is not subject to the requirements of sections 202 and 205 of the UMRA.
Executive Order 12372
This Supplemental Nutrition Assistance Program is listed in the Catalog of Federal Domestic Assistance under Number 10.551 and is subject to Executive Order 12372, which requires intergovernmental consultation with State and local officials. See 2 CFR
chapter IV. FNS Regional offices are in contact with State agencies, who provide feedback on policies and procedures for the E&T program and overall SNAP policy.
Federalism Summary Impact Statement Executive Order 13132 requires Federal agencies to consider the impact of their regulatory actions on State and local governments. Where such actions have federalism implications, agencies are directed to provide a statement for inclusion in the preamble to the regulations describing the agencys considerations in terms of the three categories called for under Section
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