Adding or deleting a budget group member may increase the assistance payment, decrease the assistance payment, cause a month of zero cash payment, or ineligibility.
When the budget group asks to add an individual or when the County Assistance Office (CAO) requires that a mandatory member be added, the CAO will:
1. Ask the budget group to submit a Pennsylvania Application for Benefits (PA 600) asking to add the individual, except for a newborn child.
NOTE: The CAO will process the request within the time limits for applicants. See Chapter 104, Application.
NOTE: If the additional individual is a newborn child, see Section 168.812 before following step 2 below.
2. Complete a prospective determination of need by combining the best estimate of the budget group’s income and circumstances for the application month and the following month with the additional individual added.
3. If adding the member results in ineligibility, determine if the additional individual must be included in the budget group.
If the additional individual IS a mandatory budget group member, the CAO will:
Discontinue the cash payment effective the next payment day that can be met with proper notice.
Provide an Advance Notice (PA/FS 162A) unless one of the exceptions in Chapter 177, Notices applies
Do not complete an overpayment referral for any assistance received, if the individual reported the change timely.
If the addtional individual is NOT a mandatory budget group member, the CAO will:
Deny assistance to the applicant only;
Provide a Notice to Applicant (PA/FS 162)
Determine if the individual's income should be deemed to the budget group.
4. If the budget group remains eligible with the individual added, calculate the monthly payment amount. Budget the additional member’s income.
5. If the addition of the individual causes an increase in monthly assistance payment:
Add the individual effective the next payment date for which the deadline can be met;
Authorize a supplemental payment reflecting the additional individual's needs from the date eligibility is established to the effective date of the increase
Provide a Confirming Notice PA/FS 162C.
6. If the addition of the individual causes a decrease in the monthly assistance payment:
Add the person and decrease the payment for the first payment day that can be met with timely notice.
Provide an Advance Notice PA/FS 162A
Example 1: Mrs. Lewis and three children receive Temporary Assistance for Needy Familits (TANF) with January payment dates of Jan. 3 and 18. The family has been eligible for TANF because of the absence of Mr. Lewis. On Jan. 15, Mrs. Lewis reports that Mr. Lewis returned to the home. Mrs. Lewis completes a PA 600. The CAO determines Mr. Lewis eligible effective Jan. 15. Mr. Lewis has no income. The budget group remains eligible for TANF. The CAO authorizes an increase in the monthly assistance payment effective with the January 18 benefit and a supplemental one-time-issuance (OTI) to cover the payment difference for January 15-17.
Example 2: The Lewis example above, except Mr. Lewis works part-time and earns $70 per week. Mr. Lewis’s earnings are budgeted prospectively. The budget remains eligible for TANF with a new income adjustment of $140.
Assistance payment without Mr. L = $514
Family Size Allowance (FSA) with Mr. L = $607
Income adjustment - $140
Assistance payment with Mr. L = $467
The addition of Mr. Lewis decreased the monthly assistance payment. The CAO sends the budget group a PA/FS 162A. The addition of Mr. Lewis and the decrease are effective the first payment day following timely notice. There is no overpayment for the period January 15 until Mr. Lewis is added to the budget group.
If the CAO discovers that a budget group has not reported the presence of an individual required to be in the budget group, a redetermination of the budget group’s eligibility must be completed including the income and resources of the mandatory individual who moved to the common residence. Redetermine eligibility and recalculate the payment amount back to the date the change would have been made if the information had been reported timely.
There is an overpayment if that individual’s income and resources would have reduced the monthly assistance payment or resulted in ineligibility. Income deductions are not applied when the information is not reported timely.
There is an overpayment if that individual did not meet an eligibility requirement that would have affected the whole budget group. This includes such things as a TANF parent participating in a strike or the principal wage earner not cooperating with employment and training requirements.
The CAO will complete an overpayment referral if there has been an overpayment.
Example: In August the CAO discovers that a mandatory member has been living with the budget group since April. The CAO determines that, if the change had been reported timely, the person should have been added effective the first payment day in May. The new member’s income would have decreased the monthly payment. The CAO adds the mandatory member and decreases the payment amount effective the second benefit in August. The CAO completes an overpayment referral for May, June, July and the first payment day in August.
The CAO will waive certain cash assistance eligibility requirements during a grace period for a newborn child only. When notified of a child's birth, the CAO must:
1. Establish the grace period. The grace period begins with the newborn child’s birth date. It ends on the first day of the second month after the birth or on the parent’s release from the hospital, whichever is later.
2. If the CAO receives notification of the newborn child’s birth date before the end of the grace period, authorize cash assistance within 15 calendar days effective the newborn child’s date of birth. Authorize as soon as possible after receiving notification. Do not wait the full 15 calendar days to authorize.
NOTE: Do not authorize cash assistance for the newborn under the birth parent’s name if it is known that the birth parent will not have care and control of the newborn.
For example, do not add the newborn if the birth parent signed an adoption agreement giving the care and control of the newborn to someone else. In that instance, if the adoptive parents want to receive assistance for that child, an application for benefits must be completed on behalf of the newborn under the regular process.
NOTE: Notification may include contact by the birth parent, CAO liaison, birth center, midwife, neighbor or family member, facsimile from the hospital, newspaper birth announcement, system “Baby” alerts or a hospital Newborn Eligibility Form (MA 112). The contact may be in person, by phone or in writing.
NOTE: Although the MA 112 is a Medical Assistance (MA) form, the CAO must authorize cash assistance for an eligible child based on MA 112 receipt if that is how the CAO is notified of the birth.
An eligible child is one born to a custodial parent with an active cash assistance budget in which the parent is receiving cash for self and/or other children.
Example: Ms. Tate is receiving cash assistance as a pregnant individual with no children. When Baby Tate is born, the newborn is added to the cash budget. If Ms. Tate was receiving Supplemental Security Income (SSI), Baby Tate would be authorized for MA only unless Ms. Tate applies for cash assistance for the child.
3. There is a case alert system to notify of a newborn’s birth. It ensures a cash assistance/MA eligible newborn is authorized in the correct category. The CAO must act on this “Baby” alert, with at most three alerts allowed. The alert means that there is an invoice for the newborn’s medical services and the newborn was not added to eCIS. The CAO must authorize assistance effective the newborn’s date of birth upon receipt of the first alert.
4. If the CAO receives notification after the end of the grace period, the caretaker/relative must apply before the CAO can authorize cash assistance for the newborn. They must verify eligibility requirements and cooperate with providing verification. In this case, cash assistance is authorized for an eligible newborn child effective the date the CAO determines eligibility rather than the newborn’s date of birth.
NOTE: Authorize MA effective the newborn’s date of birth even if cash assistance was not authorized because the CAO received notification after the end of the grace period.
5. After authorizing cash assistance for the newborn child, the worker will mail the following to the individual:
A completed PA/FS 162C
A PA 600 asking the individual for information on the newborn child only
A completed Adding Your Baby to the Assistance Grant (PA 1576) to schedule an interview so eligibility can be determined before the end of the grace period
6. During the eligibility interview scheduled for the caretaker/relative, use the PA 600 to review and verify enumeration, support, budget group and all other eligibility requirements to support continued eligibility. Then return to step 2 to continue the process using Section 168.81.
A member may be removed from the budget group:
When they leave the common residence;
When they no longer meet eligibility requirements;
When removal of a non-mandatory member financially benefits the budget group
When the CAO is imposing a sanction.
When the CAO determines that a person should to be removed from the budget group, the CAO will:
1. Determine if the individual is being removed due to a sanction
2. If the individual is not being sanctioned:
Remove the individual from the budget group for the first payment date that can be met with proper notice.
Provide a PA/FS 162A unless the payment name waives the right to advance notice.
Do not process an overpayment referral or authorize a supplemental payment if the change was reported and acted upon timely.
3. If the individual is being sanctioned:
Impose the appropriate sanction per CAH 135.7.
Complete the prospective determination of need by estimating budget group income for the payment month.
Deem the income of a legally responsible relative (LRR), parent of a TANF minor parent or stepparent who stays in the common residence.
4. If the budget group is ineligible with the person removed, close the cash budget effective the first payment date that can be met with proper notice.
5. If the budget group is eligible with the individual removed, calculate the assistance payment amount. Determine if the deleted member’s income must still be counted:
If the individual removed is a sponsor of a noncitizen or stays in the common residence and is an LRR, stepparent, or parent of a TANF minor parent, income and/or resources must be deemed to the budget.
If the individual removed is an LRR, but is no longer in the common residence, count only the income made available by the LRR when completing the net test. Do not count the support income when determining the payment amount. Apply the support requirements in Chapter 131, Support. The individual must pay the entire amount.
NOTE: A putative paternal parent must acknowledge in writing that income made available to the budget group is support. Otherwise the income is considered a contribution.
If the individual removed stays in the common residence and is not an LRR, stepparent, sponsor of a noncitizen or parent of a TANF minor parent, count only the income made available by the individual removed. Count the income for the prospective determination and when calculating the payment amount.
Example 1: Mr. and Mrs. Mertz and their three children receive TANF with payment days of Jan. 11 and Jan. 26. On Jan. 15, Mr. Mertz, who is employed, leaves the common residence. The family has no other income.
The CAO removes Mr. Mertz from the budget group and removes his income from the benefit calculation effective Jan. 26. The CAO completes a prospective determination of need for Mrs. Mertz and children. If Mr. Mertz contributes to the family, the support income counts for the net test. If the family is eligible, the CAO must collect the support.
NOTE: An increase or decrease to the second check in a payment month will not result in an underpayment or overpayment for the month.
Example 2: Mr. and Mrs. Wagner receive TANF for themselves and two children. In February Mr. Wagner is sanctioned for 60 days for failure to comply with employment requirements. Mr. Wagner is employed part-time. The CAO removes Mr. Wagner effective the first payment day in March. The sanction period is March and April. The CAO will count Mr. Wagner’s expected income for March when completing the prospective determination of need. If eligible, Mr. Wagner’s income is deemed to determine the March payment amount. The CAO will calculate the income as though Mr. Wagner were still part of the budget group.
Example 3: Mrs. Hershey and children, Mike and Joe, receive TANF. On Feb. 15, Joe, age 18, quits school and starts working part-time. Joe will earn $80 per week. Mrs. Hershey asks that Joe be removed from the budget. Joe agrees to pay $20 per week room and board beginning Feb. 22. The budget group has no other income.
The CAO removes Joe from the budget group effective March 5, the first date that can be met with proper notice. The CAO projects $20 per week room and board income when completing the net test for March. The room and board income will be used to determine the monthly benefit amount.
If the caretaker/relative does not establish the newborn child’s eligibility by the end of the grace period, the CAO will reduce or stop cash benefits with the first payment date that can be met after the grace period. The CAO must send a PA/FS 162A to the caretaker/relative.
NOTE: Failure to establish eligibility applies to the newborn child only. If the newborn child is determined ineligible, the entire budget group does not necessarily become ineligible for TANF unless the newborn child is the only child in the budget group. See Chapter 110, Budget Groups.
Even if the newborn is removed from the grant, the caretaker/relative must still provide any information about the newborn child’s income and resources if the newborn is a mandatory budget group member. The CAO must include any newborn child’s income or resources when determining the budget group’s eligibility or benefit amount unless the newborn is not a mandatory budget group member.
The caretaker/relative must provide all information about the newborn child’s income or resources or risk ineligibility unless good cause is claimed and upheld or the newborn is not a mandatory budget group member.
If a newborn child is not included in the budget group, the caretaker/relative does not need to take support action for the newborn child.
The CAO must process a cash assistance overpayment for assistance received during the grace period if the caretaker/relative fails to establish the newborn child’s eligibility within the grace period.
The newborn child may be eligible for medical assistance even if found ineligible for cash assistance.
NOTE: Failure to add a newborn that is a mandatory budget group member at renewal will result in total ineligibility for the entire budget group.
There are special procedures to transfer abandoned children from one budget group to another quickly. Use these procedures only when:
The children are current TANF cash assistance recipients;
NOTE: This applies if the abandoned child is receiving TANF benefits in another state. The CAO can authorize TANF before the date the other state removes the child from its program. The CAO should give the state both the date the child began living in Pennsylvania and the date of the new TANF authorization.
The children are abandoned because the parents are substance abusers; and
Another caretaker is requesting cash assistance for the children.
The procedures are as follows:
1. The caretaker/relative tells the CAO that the children are now under their care and control. The caretaker/relative asks that assistance be authorized in their name on behalf of the children. If the children are not currently receiving assistance, complete the application process as usual.
2. If the children currently receive assistance, the worker will immediately (on the same work day), send a PA/FS 162A to the losing parent. The notice states that the monthly assistance payment will decrease/close because the children are being removed from the budget group.
3. Within the same day, the worker will complete the application or redetermination for the caretaker/relative and the children. This may include having the caretaker/relative complete the PA 600, obtain essential verification, and cooperate with child support requirements. Information that is already on file, such as birth dates and social security numbers, do not require additional verification.
4. When eligibility is established, authorize assistance on behalf of the children in the caretaker/relative’s name. If the caretaker/relative meets the definition of a specified relative or if a temporary exception to living with a specified relative may be granted, authorize assistance in the TANF category. See Chapter 127, Specified Relatives.
NOTE: It is not necessary to establish legal guardianship for abandoned children of substance abusing parents when adding these children to another caretaker/relative budget group.
5. The CAO may authorize assistance before the effective date that the benefit amount decreases for the losing parent’s budget group.
6. These actions happen in the following order on the same day:
Using individual delete, remove the children from the parent’s budget group effective with the first payment date that can be met with advance notice.
Using case or budget open, authorize medical assistance MA authorization is effective on the transaction date. Issue a duplicate medical assistance card if a replacement card is needed to make sure the caretaker has a valid medical card.
Using the FM Module, issue an OTI for the children based on the new family size allowance (FSA) amount covering the period from the MA authorization date to the day before the losing parent's budget closing date. Use supplemental reason code 227.
Depending on the payment day schedule, if the payment date for the newly authorized MA is different from the losing budget group’s payment date, you may need to issue two OTIs to cover the period to the losing budget group’s payment date.
On the deadline date, open the budget for the children in the “C” category beginning the day following the cash closure on their losing parent’s budget.
If the children are being added to an existing open cash budget, add the children effective with the first payment date that can be met.
7. Process an overpayment referral against the losing parent for assistance received for the children beginning with the date the children were added to the new case or budget to the date they were deleted from the losing parent’s budget.
8. If the losing parent appeals the FSA reduction within the 10-day appeal period, the children will still be removed from the parent’s budget group. Authorize a recurring Special Need Allowance (SNA) using reason code 228 to make up for the reduction amount because of the children’s removal from the grant. The parent’s budget must also revert to TANF using an override if applicable.
Example: Ms. Harris appeals the removal of two children from the TANF grant effective Jan. 8. Ms. Harris' assistance continues in the TANF category and the FSA continues to be based on a one-person FSA. However, authorize a recurring SNA to reflect the difference between a one-person and three-person FSA.
When the hearing decision is in favor of the CAO, the SNA is removed from the budget. Process an overpayment referral for the total amount of the TANF overpayment, including the SNA, against the losing parent’s TANF budget.
NOTE: Procedures for authorizing assistance in these unique cases have changed while requirements for assistance receipt have not changed. The caretaker/relative must establish eligibility for assistance using requirements in Chapter 104, Application, and Chapter 178, Verification. Those requirements are not changed or waived.
The special procedures below make the transfer faster from one budget group to another for abused individuals and/or their children. Use them only when the abused individual(s) in domestic violence situations are current cash assistance recipients.
NOTE: The individual asking for cash assistance due to domestic violence cannot be the payment name for an existing case. An individual claiming abuse who is the payment name is not eligible for an expedited authorization. Process these cases as an address change with the deletion of a budget group member(s) effective with the first benefit that can be reached.
The procedures are:
1. The individual tells the CAO about the move from an abusive situation and asks for assistance to be authorized. If the individual is not currently receiving assistance, complete the application process as usual.
2. If the individual is currently receiving assistance and is not the payment name, the worker will immediately (within the same work day) send a PA/FS 162A to the losing budget group advising that the monthly assistance payment is decreasing or the case is being closed because of the removal of the individual and/or children from the budget group.
3. Within the same day, the worker will complete the application for the individual and/or the children. This requires the worker to have the individual complete the PA 600, provide essential verification, and cooperate with child support requirements unless good cause prevents such cooperation.
NOTE: Transfer information needed for child support purposes from the other record.
Information that is already on file, such as birth dates and social security numbers, do not require additional verification. An individual’s statement is acceptable verification of flight from abuse.
4. When eligibility is established, authorize assistance on behalf of the individual and/or child. If the individual establishing the new budget group meets the definition of a specified relative for the child/ren, authorize assistance in the TANF category. If the child is removed from a TANF budget group but does not live with a specified relative, the CAO may grant a temporary exception to living with a specified relative and authorize assistance in the TANF category.
NOTE: Regulations allow for a TANF child to continue receiving benefits if that TANF child is placed under the care of a non-specified relative. See Chapter 127, Exception to Living With a Specified Relative.
5. Assistance may be authorized before the effective date of the losing group’s benefit reduction amount.
6. These actions happen in the following order on the same day:
Using individual delete, remove the individual(s) from the losing budget group effective with the first payment date that can be met allowing for Advance Notice.
Using case open or individual add, authorize medical assistance. The MA authorization is effective as of the transaction date. Issue a duplicate medical assistance card when a replacement card is needed, making sure the caretaker has a valid medical card.
Using the FM Module, issue an OTI for the new budget group based on the new FSA amount covering the period from the MA category authorization date to the day before the effective closing date in the losing budget. Use supplemental reason code 227.
NOTE: If the payment date for the newly authorized MA budget is different from the payment date of the losing budget group, the CAO may need to issue two OTIs to cover the period to the losing budget group’s payment date.
On the deadline date, open the budget for the individual(s) in the new budget group in the category effective with the date following the closure in the losing budget if applicable.
If the individual(s) is being added to an existing open cash budget, use Program Add effective the first payment date that can be met.
Process an overpayment referral against the losing budget group for assistance received for individual(s) in the new budget group beginning with the date of addition to the new case or budget to the date of deletion from the losing budget.
If a member of the losing budget group appeals the FSA reduction within the 10-day appeal period, the individual(s) in the new budget group will still be removed from the original budget group. Authorize a recurring Special Need Allowance (SNA) to the losing budget group to make up for the reduction amount. Authorize it using reason code 228. If TANF eligible children remain in the losing budget, it will stay as TANF.
When the hearing decision is in favor of the CAO, remove the SNA from the losing budget. Process an overpayment referral against the losing budget for the total overpayment amount, including the SNA and any money received during the appeal period.
NOTE: The procedure for authorizing assistance in these unique cases has changed. However, the standard eligibility requirements for the receipt of assistance have not changed. The victim(s) of domestic violence must establish eligibility for assistance under requirements in Chapter 104, Application, and Chapter 178, Verification. Those requirements are not changed or waived, except as specified in this section.
CAOs should follow the special procedures below to expedite the removal and addition of children from one budget group and added to another due to a custody hearing determination or settlement. Use these procedures only when the children affected by custody hearing decisions are current cash assistance recipients.
The procedures are as follows:
1. The individual gaining custody tells the CAO that custody of the children has been obtained, the children are under the care and control of the individual who gained custody, and that individual asks that assistance be authorized. If the children are not receiving assistance currently, then complete the application process as usual.
NOTE: The guardian must provide acceptable legal verification of the custody change. Acceptable legal verification may include:
Court approved settlement of a custody petition;
Custody order;
Divorce settlement documenting that custody has been agreed on.
Authorization of assistance cannot take place without presentation of a legal document verifying the custody change.
2. For children who are currently receiving assistance, the worker will immediately (within the same work day) send a PA/FS 162A to the losing budget group advising that the monthly assistance payment is being reduced or the case is being closed because of the removal of the individual and/or children from the budget group.
3. Within the same day, the worker will complete the application for the individual and/or the children. This requires the worker to have the individual complete the PA 600, provide essential verification, and cooperate with child support requirements unless good cause prevents such cooperation.
NOTE: Transfer information needed for child support purposes from the other record. An Automated Support Referral (PA/CS 643A) is generated on the losing parent.
Information that is already on file, such as birth dates and social security numbers, do not require additional verification. The caretaker/relative must provide a copy of the court order verifying custody.
4. When eligibility is established, authorize assistance on behalf of the individual and/or child. If the individual establishing the new budget group meets the definition of a specified relative for the child, authorize assistance in the TANF category.
NOTE: Regulations allow for a TANF child to continue receiving benefits if that TANF child is placed under the care of a non-specified relative while the courts make a custody decision. See Chapter 127, Exception to Living with a Specified Relative.
5. Assistance may be authorized before the effective date of the losing group’s benefit reduction amount.
6. These actions happen in the following order on the same day:
Using individual delete, remove the individual(s) from the losing budget group effective with the first payment date that can be met for Advance Notice.
Using case open or individual add, authorize medical assistance for the new budget group. The MA authorization is effective as of the transaction date. Issue a duplicate emergency MA card if required.
Using the FM Module, issue an OTI for the new budget group based on the new FSA amount covering the period from the date the MA budget is authorized to the day before the effective closing date in the losing budget. Use supplemental reason code 227.
NOTE: If the payment date for the newly authorized MA is different from the payment date of the losing budget group, the CAO may need to issue two OTIs to cover the period to the losing budget group’s payment date.
On the deadline date, open the budget for the individual(s) in the new budget group in the category effective with the date following the losing budget closure.
If the individual(s) is being added to an existing open cash budget, add them effective the first payment date that can be met.
7. Process an overpayment referral against the losing budget group for assistance received for individual(s) in the new budget group beginning with the date of addition to the new case or budget to the date of deletion from the losing budget.
8. If a member of the losing budget group appeals the FSA reduction within the 10-day appeal period, the children in the new budget group will still be removed from the original budget group. Authorize a recurring Special Need Allowance (SNA) to the losing budget group to make up for the reduction amount. Authorize it using reason code 228. If TANF-eligible children remain in the losing budget, it will remain TANF.
When the hearing decision is in favor of the CAO, remove the SNA from the losing budget. Process an overpayment referral against the losing budget for the total overpayment amount, including the SNA and any money received during the appeal period.
NOTE: The procedure for authorizing assistance in these special cases has changed. However, the standard eligibility requirements for the receipt of assistance have not changed. The caretaker/relative of the children must establish eligibility for assistance using requirements in Chapter 104, Application, and Chapter 178, Verification. Those requirements are not changed or waived, except as specified in this section.
Updated May 21, 2025, replacing February 7, 2013