TN 41 (03-91)

Citations:

Social Security Act as amended, Section 1612(b)(6);

20 CFR 416.1124(c)(2)

A. Definitions

1. Assistance Based on Need (ABON)

ABON is assistance:

• provided under a program which uses income as a factor of eligibility; and

• funded wholly by a State (including the District of Columbia, Indian tribes and the Northern Mariana Islands), a political subdivision of a State, or a combination of such jurisdictions.

EXCEPTION:   State supplementary payments, as defined in SI 01401.001, made to refugees are considered to be ABON even if the Federal government reimburses the State.

NOTE:   If a program uses income to determine payment amount but not eligibility, it is not ABON (e.g., some crime victims compensation programs).

2. Federal Funds

For purposes of this section, Federal funds means monies supplied and directed by the Federal government for a specific use or specific type of program (e.g., community service block grants, Federal matching funds for AFDC). Monies not allocated for specific purposes are not considered Federal funds.

EXAMPLE—  Nonspecific Funding

Revenue sharing funds are not “Federal funds” for purposes of this section and programs using these funds are considered wholly State funded.

B. Policy

Assistance based on need is excluded from income.

C. Procedure

1. Precedent Exists

If a precedent exists:

• Accept the claimant's allegation as to the type and source of assistance and exclude it without further development.

• Document the file to show that a precedent exists only  if you use a local precedent.

2. No Precedent Exists

If a precedent does not exist:

• Use documents in the individual's possession or contact the administering agency to determine the program under which the assistance is provided.

• Verify with agency personnel and/or program descriptions that no Federal or private funds are involved and that the program uses income in arriving at eligibility determinations.

• Retain the evidence (either written material or oral statements documented on a Report of Contact) for the field office precedent file.

NOTE:  If evidence establishes that the assistance is excludable under this provision, it is not necessary to verify the amount of assistance and when it was received.

• Document the file with copies of the original evidence, an RC, or mention that a local precedent exists.

D. Reference

Income based on need, SI 00830.170.