Variations in Programs’ Financial Eligibility Rules Stem Primarily From Federal Statutes and Regulations

Substantial variations exist in the financial eligibility rules across selected means-tested federal programs. Rules About Types and Amounts of Income Limits Vary Across Programs

The first and most basic difference among programs is the variation in type of income limits used for determining program eligibility. Variations in Financial Rules and Other Factors Contribute to Administrative Duplication and Client Burden

Variations in financial eligibility rules and the multiplicity of agencies that administer programs at the state and local level have contributed to the formation of administrative processes that involve substantial complexity and duplication of staff efforts. (How these states have used computer systems to establish joint application processes is discussed later in the report.) Some Progress Has Been Made to Streamline or Coordinate Eligibility Determination Processes

Overall, federal, state, and local entities have made limited progress in simplifying or coordinating eligibility determination processes. Several of the states we visited realigned some of the financial rules, yet this approach has been used to a limited extent. One study found that primary responsibility for most of the approximately 80 major programs that assist low-income families and individuals resides in 19 congressional committees and 33 subcommittees. Many federal, state, and local officials recognize that additional efforts to simplify or coordinate eligibility determination processes are needed.
Why GAO Did This Study

About 80 means-tested federal programs assisted low-income people in 1998. GAO reviewed 11 programs that assisted families and individuals with income, food, medical assistance, and housing.

What GAO Found

Despite substantial overlap in the populations they serve, the 11 programs varied significantly in their financial eligibility rules. At the most basic level, the dollar levels of the income limits--the maximum amounts of income an applicant can have and still be eligible for a program--vary across programs. Beyond this, differences exist in the income rules, such as whose income and what types of income are counted. The variations and complexity of the federal financial eligibility rules, along with other factors, have led to processes that are often duplicative and cumbersome for both caseworkers and applicants. Overall, federal, state, and local entities have made little progress in simplifying or coordinating eligibility determination processes. States realigned some of the financial rules, but only to a limited extent. Another approach uses computer systems to establish joint eligibility determination processes that a single caseworker can administer. Efforts to simplify or better coordinate eligibility determination processes confront many obstacles, including restrictive federal program statutes and regulations. In addition, program costs may rise if financial eligibility rules are changed.