Federal Register - January 5, 2021
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Source: Federal Register
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Federal Register / Vol. 86, No. 2 / Tuesday, January 5, 2021 / Rules and Regulations TABLE 1SUMMARY OF IMPACTS
In millions of dollars
FY 2020
FY 2021
FY 2022
FY 2023
FY 2024
Total
Impacts on Federal Transfers nominal dollars Increased 100% E&T grant funding
$13
$13
$13
$13
$13
$65
Impacts on Federal 50% and State 50% Administrative Costs nominal dollars Administrative costs/burdencase management
Administrative costs/burdenrelated to sending new required ABAWD notice and notifying participants of Provider Determinations
Administrative costs/burdenreporting of additional measures
Total
39.8
39.8
39.8
39.8
39.8
199.0
0
6.8
6.8
6.8
20.4
0
0
39.8
39.8
46.6
46.6
46.6
219.4
Impacts on Burden of Participating Households costs in nominal dollars Household Burdencase management ..
Household BurdenNotification of Provider Determination
Household BurdenList of E&T Services Household BurdenABAWD Notification
4.6
4.6
4.6
4.6
4.6
23.0
0
0.8
0
0.8
0.8
0.8
0.8
4.0
0
0
1.6
1.6
1.6
4.8
Total
5.4
5.4
7.0
7.0
7.0
31.8
The 2018 Farm Bill included an additional $13 million per year in 100 percent grant funding for E&T.
A portion of these costs are expected to be covered using existing 100 percent grant funding.
These provisions are effective 10/1/21.
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Regulatory Impact Analysis: A
regulatory impact analysis must be prepared for major rules with economically significant effects $100
million or more in any one year. The Department does not anticipate that this final rule will have economic impacts of $100 million or more in any one year, and therefore, it does not meet the definition of economically significant under Executive Order 12866. An analysis assessing the costs and benefits of this rule is presented below.
As explained above, this rule codifies the 2018 Farm Bill changes related to E&T program operations, the ABAWD
work requirement, and the allocation and reallocation of 100 percent grant funds. Those changes and their expected costs and benefits are summarized briefly below:
Changes to SNAP E&T Programs, Components, and Activities Pursuant to the 2018 Farm Bill, the final rule makes several changes to E&T
components and allowable activities, including:
Replacing job search with supervised job search as an E&T
component and clarifying that supervision may be provided through a variety of modes including virtual modes to ensure States can continue to deliver services during the COVID
pandemic;
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eliminating job finding clubs as an allowable activity;
replacing job skills assessments with employability assessments;
adding apprenticeships and subsidized employment as allowable activities;
requiring a 30-day minimum for receipt of job retention services; and allowing activities from the 2014
Farm Bill E&T pilots to become allowable E&T components, if those activities had a demonstrable impact on the ability of participants to find and retain employment that leads to increased income and reduced reliance on public assistance.
The rule also implements the 2018
Farm Bill provision that requires all E&T programs to provide case management services to E&T
participants, in addition to one or more E&T components. We expect the cost of the case management to be approximately $39.8 million per year.
While all E&T participants must receive some case management, there is no expectation that participants receive ongoing case management if that is not desired by the participant and the participant is otherwise successfully participating in E&T. Consistent with the estimates used for the Paperwork Reduction Act section of the proposed rule, we assume approximately 460,000
annual E&T participants participate on
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average for 3.27 months. We further assume the average participant receives just over 1 hour total of case management services 30 minutes for the initial case management meeting and 15 minutes for subsequent monthly meetings. In addition, we expect caseworkers to spend approximately 10
minutes per case management session preparing for the meeting and 5 minutes recording case notes and otherwise documenting the case management interactions for a total of 1.87 hours per case. Using a fully-loaded hourly rate including benefits and indirect costs of approximately $46.32 6 results in an annual cost of about $39.8 million, shared equally. The Department believes that initially most States will use 100 percent grant funding, including the increased funding provided through the 2018 Farm Bill, to pay for the required case management services. In some States this may mean States reallocate funds from other activities in order to provide sufficient case management.
The case management requirement will also increase burden on individual 6 Based on May 2019 BLS Occupational and Wage Statistics for Social Workers, All Other, available at https www.bls.gov/oes/tables.htm, plus approximately 50 percent for fringe and overhead.
Overhead is included because this is a new activity and will likely result in hiring of additional staff or contractors.
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