Programs also differ in their source of funding: some  programs are entirely federally-funded, while in other programs, the  states and the federal government each contribute some funding for  benefits, program administration, or both. Selected Federal Low-Income Programs Vary with Regard to Target Populations, Rules for Counting Income and Assets, and Benefits Selected Programs Target a Range of Low-Income Populations, Including People Who Are Elderly or Disabled or Those with Dependent Children, and Some Require Work

In addition to having different program purposes, the six programs we  reviewed target a range of low-income populations, including people with  some earnings, people who are elderly or disabled, or families with  dependent children, according to our analysis of agency documents, as  confirmed by the agencies (see table 3). These  variations affect whose income is counted, what income is and is not  counted, whether expenses are deducted from income, and how much  income applicants may have and still be eligible. For some programs, such  as SSI, the applicant unit is the individual, while for others, such as  SNAP, the unit is the household (see table 5). For purposes of  counting income, for example, both TANF and the Housing Choice  Voucher program count the income of individuals in a “family.” However,  in the case of the Housing Choice Voucher program, for example, a  single person living alone or a group of persons living together is  considered a “family,” while for TANF cash assistance, states determine  what constitutes a “family” and the family must generally include a  dependent child. In contrast, the cash  benefit received from the refunded portion of EITC is not counted as  income when determining eligibility for any of the other selected  programs. For the four programs that provide monthly benefits—Housing Choice  Vouchers, SNAP, SSI, and TANF—average benefit levels ranged from  $258 monthly for SNAP to $626 monthly for Housing Choice Vouchers in  fiscal year 2015. Legal, Administrative, and Financial Constraints Challenge Efforts to Streamline Rules for Low-Income Programs Several Challenges Hinder Efforts to Streamline Program Rules

Legal, administrative, and financial constraints pose challenges to  streamlining or better aligning varying eligibility rules for low-income  programs, according to our previous work. A key challenge to streamlining eligibility rules for these low-income  programs is that the programs are authorized by different federal statutes,  which establish many of the program rules. These different statutes were  enacted—and amended—at different times in response to differing  circumstances. Other laws, such appropriations acts, can also have an impact on  federal programs and their rules. Modifying eligibility rules to bring them  more in line with each other would require changing many laws and  coordination among a broad set of lawmakers, including multiple  congressional committees. To start with, a different federal agency or office  administers each program we reviewed. Specifically, for programs that allow  state flexibility, state governments also establish some program rules,  making it more difficult to streamline or align program rules within or  across these programs at the federal level. On the one hand, if such rule changes have the effect of  raising a program’s income eligibility limits, more people will be eligible for  assistance and that program’s costs may increase, particularly for  entitlement programs. Agencies and States Have Made Efforts to Streamline Rules within Program Constraints

Despite these challenges, Congress, federal agencies, and states have  taken some steps to streamline eligibility rules, according to our prior  work. These include establishing automatic or categorical eligibility  among programs, making greater use of technology and data-sharing  among low-income programs, and aligning application and eligibility  determination processes for multiple programs. For example, in addition to SNAP BBCE  policies already discussed (which make households that receive noncash  services funded by TANF categorically eligible for SNAP in some states),  SSI recipients in most states are automatically eligible for Medicaid health  insurance, and if they live alone or in households in which all members  receive SSI benefits, they are automatically eligible for SNAP. For  example, some states reported that they integrated aspects of the SNAP  eligibility process with those of other programs, such as through  combined applications, common eligibility workers, or integrated or linked  eligibility systems, according to our 2017 report. According to a December 2015 Congressional Research Service (CRS)  analysis of the latest data available for subsidized housing, Supplemental  Security Income (SSI), the Supplemental Nutrition Assistance Program  (SNAP) and Temporary Assistance for Needy Families (TANF), the  estimated proportion of those eligible who received benefits in 2012  varied substantially, and not all of those eligible actually received  benefits. Appendix II: Selected Deductions for Calculating Income for Determining Program Eligibility

Appendix III: Maximum Monthly Income an Applicant May Have and Still Be Eligible for Six Selected Low-Income Programs

There is no single maximum income amount an applicant may have to be  eligible for the six federal low-income programs we reviewed, and the  amount of allowable income varies significantly among the programs,  according to data confirmed by the administering agencies.
Why GAO Did This Study

Various federal programs provide cash assistance, food, housing, and health care to millions of individuals, families, and households whose income falls below defined levels and who meet other eligibility requirements. As GAO previously reported, the numerous financial and nonfinancial rules for determining eligibility for such low-income programs can confuse applicants and increase program administration challenges. GAO was asked to examine eligibility rules for low-income programs.
This report examines (1) the ways in which eligibility rules and benefits for selected federal low-income programs vary across the programs; and (2) what is known about challenges associated with efforts to streamline these rules. GAO reviewed relevant agency guidance and other information provided by agencies and analyzed financial eligibility rules and benefits across six low-income programs. GAO confirmed all information on program rules with the respective administering agencies. GAO selected these programs because they are among the largest of the federally funded programs addressing low-income people's basic needs and they illustrate variations in eligibility rules among low-income programs. GAO also reviewed previous GAO reports and selected reports from the Congressional Research Service and other knowledgeable research and policy organizations.

What GAO Found

Six key federally funded programs for low-income people vary significantly with regard to who is eligible, how income is counted and the maximum income applicants may have to be eligible, and the benefits provided. In fiscal year 2015, the most current data available, the federal government spent nearly $540 billion on benefits for these six programs—the Earned Income Tax Credit (EITC), Medicaid, the Housing Choice Voucher program, Supplemental Nutrition Assistance Program (SNAP), Supplemental Security Income (SSI), and Temporary Assistance for Needy Families (TANF). The target population for each of these programs differs, for example, people who are elderly or disabled or who have dependent children. Further, some programs have conditions for continued eligibility, such as participation in work activities under TANF. The six programs also vary in what income is and is not counted when determining an applicant's eligibility. For example, certain programs, such as SNAP, disregard a portion of earned income, while others do not. The maximum amount of income an applicant may have and still be eligible for benefits, which is determined for some programs at the federal level and for others at the state or local level, also differs significantly. As of December 2016, this amount ranged from $5,359 per month for one state's Medicaid program to $0 per month in one state for TANF cash assistance, for a single parent with two children. Benefit levels also differed across the six selected programs, with average monthly benefits for these programs ranging in fiscal year 2015 from $258 for SNAP to $626 for Housing Choice Vouchers, and four of the six programs adjust benefits annually.
Legal, administrative, and financial constraints pose challenges to efforts to streamline varying eligibility rules for federal low-income programs, according to GAO's current and previous work. A key challenge is that the programs are authorized by different federal statutes enacted at different times in response to differing circumstances. Other laws, such as appropriations laws, can also have an impact on federal programs and their rules. As a result, streamlining eligibility rules would require changing many laws and coordination among a broad set of lawmakers and congressional committees. A further challenge is that a different federal agency or office administers each program GAO reviewed. For some of these programs, such as TANF, state governments also establish some program rules, making it more difficult to streamline rules at the federal level within or across these programs. Finally, financial constraints may also affect efforts to streamline program rules. For example, if rule changes raise the income eligibility limit in a program, more people may become eligible and that program's costs may increase. Despite these challenges, Congress, federal agencies, and states have taken some steps to streamline program administration and rules, such as by making greater use of data-sharing where permitted by federal law and aligning programs' applications and eligibility determination processes. For example, SSI recipients in most states are automatically eligible for Medicaid, and GAO previously reported that some states have integrated the SNAP eligibility process with other low-income programs, such as through combined applications and common eligibility workers.

What GAO Recommends

GAO is not making recommendations in this report.