ASSISTANCE BENEFITS AFTER MARRIAGE
Senate Bill 752 (S-1) as passed by the Senate
Sponsor: Sen. Wayne Schmidt
House Committee: Families, Children, and Seniors
Senate Committee: Families, Seniors, and Human Services
Complete to 5-10-18
SUMMARY:
Senate Bill 752 would amend the Social Welfare Act to require the Department of Health and Human Services (DHHS) to exclude a new spouse’s income for a certain period of time when determining financial eligibility for Family Independence Program (FIP) assistance and when determining a program group’s income and assets, if the household income does not exceed 275% of federal poverty guidelines.
Currently under the Act, the DHHS is required to establish and administer the FIP to provide temporary assistance to families who are making efforts to achieve independence. The DHHS must establish income and asset levels for eligibility, types of income and assets to be considered in making eligibility determinations, payment standards, and composition of the program group and the FIP assistance group. An individual is eligible for FIP assistance if he or she meets certain requirements, which include being a member of a program group whose income and assets are less than the income and asset limits set by the DHHS. The Act defines program group as a family and all those individuals living with a family whose income and assets are considered for purposes of determining financial eligibility for FIP assistance.
The bill would specify that program group does not include a new spouse beginning one month after the marriage until 18 months after the marriage, and would require the DHHS to exclude a new spouse’s income when determining a program group’s income and assets during that period if the household income does not exceed 275% of the federal poverty guidelines.
The bill would also require the DHHS to exclude a new spouse’s income when determining financial eligibility for FIP assistance from one month after the date of the marriage until 18 months after that date if the household income does not exceed 275% of the federal poverty guidelines.
The bill would take effect January 1, 2019.
MCL 400.57, 400.57a, and 400.57b
FISCAL IMPACT:
Senate Bill 752 may increase costs to the state of Michigan and would have no fiscal impact on local units of government.
The Family Independence Program (FIP) is a cash assistance program for low-income families with children that is administered by the Department of Health and Human Services. The FIP grants help families meet their basic subsistence needs, and most recipient groups are single-parent families with one or more children that have little or no earned income. To be eligible for FIP, a family must meet both income and asset requirements. The benefits that family groups receive vary depending upon income and family size. In FY 2017-18, the FIP program is appropriated $82.4 million to distribute in benefits. As of April 2018, there is an average of 18,573 FIP cases, which include approximately 43,380 recipients in Michigan. In 2018, the average monthly grant to families is $366.
Under the bill’s provisions, the determination of financial eligibility of a family group would exclude the income of a new spouse until 18 months after the date of the marriage, if the household income does not exceed 275% of federal poverty guidelines. Any increased costs to the FIP program would depend upon how many family groups would now become eligible for benefits or for a higher monthly benefit amount based upon a change in income eligibility due to the new spousal income exclusion.
Fiscal Analyst: Viola Bay Wild
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.