AFDC makes a payment to a family unit rather than an individual. The payment is frequently referred to as the "grant." An individual who meets the eligibility requirements for both AFDC and SSI may choose the program under which he/she prefers to receive benefits. However, if the individual receives SSI, he/she may no longer be included in the AFDC grant.
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 replaced Title IV-A of the Social Security Act (SSACT) (which provided for AFDC) with cash block grants to States for Temporary Assistance for Needy Families (TANF). This legislation was effective October 1, 1996. States were required to have their TANF plans in effect by July 1, 1997, unless granted an exception by the Administration for Children and Families (ACF). The following rules apply only to the AFDC program. See SI 00830.403 for the policy and procedures on TANF.
For SSI purposes, Aid to Families with Dependent Children (AFDC) refers to the payments made under the former Part A of Title IV of the Social Security Act except for payments made under the former section 406(e) of Part A. (Payments under section 406(e) are emergency assistance payments and the applicable instructions appear at SI 00830.405.)
AFDC payments are federally funded income based on need and, unless excluded under a PASS (SI 00870.001 ff.), are counted dollar for dollar as income. The $20 general income exclusion does not apply to this income.
An AFDC payment is always considered to be a cash payment, even if the AFDC agency makes the payment directly to the vendor. The presumed maximum value (PMV) rule (SI 00835.300 ff.) does not apply to this income.
The income which an individual derives from an AFDC payment to the family unit is the difference between the AFDC payment actually made to the unit and the AFDC payment which would have been make had that individual not been included in the grant. (Note that the AFDC payment may increase when the individual is removed, in which case no income is derived.)
Any AFDC payments received prior to the first AFDC termination date communicated orally by the State AFDC agency are income for SSI purposes. Any AFDC payments issued and received on or after the first AFDC termination date communicated orally by the State AFDC agency are not income for SSI purposes. (These payments should be brought to the AFDC agency's attention since they are AFDC overpayments which are subject to recovery by that agency.) EXAMPLE l: An individual is about to be put into SSI pay status. The State advises SSA orally that the individual will be removed from the AFDC grant effective June 1. SSA later receives written confirmation from the State indicating that the individual was, in fact, removed from the grant effective June 1. AFDC received prior to June 1 is income for SSI. There is no AFDC or SSI overpayment. EXAMPLE 2: Same scenario as in example 1 above, but the written confirmation from the State indicates that the individual actually was removed from the AFDC grant on August 1. AFDC received prior to June 1 is income for SSI. AFDC received for the period on or after June 1 is an AFDC overpayment. EXAMPLE 3: An individual files for SSI. SSA is unaware that the individual is receiving AFDC and initiates SSI payments (without consideration of the AFDC). SSA later learns that AFDC is being received. Upon learning of the receipt of AFDC, SSA obtains an AFDC termination date orally from the State. AFDC received prior to the termination date communicated orally by the State is income for SSI (which may result in an SSI overpayment). Any AFDC received for the period on or after the termination date communicated orally by the State is an AFDC overpayment.