Q1: Program
Instruction TANF-ACF-PI-2008-4 dated May 6, 2008 states that if a State received
Contingency Funds for fewer than 12 months during the fiscal year, the
applicable FMAP is reduced to equal 1/12th multiplied by the number of eligible
months in the fiscal year for which the State received funding. Under which scenario, if any, would a State
that qualifies for Contingency Funds for all 12 months of the fiscal year, have
its applicable FMAP reduced: (a) a State
that requests and receives Contingency Funds for some of the months in the
fiscal year (e.g., 6 months); or (b) a State that requests a partial payment
for each of the 12 months of the fiscal year (e.g., 50 percent of the monthly
amount)?
A: Under
both scenarios, a State may receive up to 1/12th of 20 percent of
its annual State Family Assistance Grant applicable for the particular fiscal
year.
Under scenario (a), the
State’s applicable FMAP would be reduced (e.g., by 50 percent using 6 months). Under scenario (b), the full FMAP would apply.
There is no reduction in the FMAP when a
State requests partial or full payment of Contingency Funds (up to 20 percent
of the State’s annual State Family Assistance Grant applicable for the fiscal
year) for every month of the fiscal year.