Remove the BBCE net income test from California's Modified Categorical Eligibility

changelog.d/ca-snap-zero-allotment.fixed.md

@@ -0,0 +1 @@
+Apply California's zero-allotment participation screen to SNAP households of three or more while preserving Modified Categorical Eligibility's net-income waiver and smaller households' minimum allotments.

changelog.d/fix-ca-mce-net-income-test.fixed.md

@@ -0,0 +1 @@
+Remove the SNAP net income test from California's broad-based categorical eligibility (CalFresh Modified Categorical Eligibility) for households with and without elderly or disabled members, per CDSS ACLs 12-62, 13-32, 14-56 and 15-42.

policyengine_us/parameters/gov/hhs/tanf/non_cash/income_limit/net_applies/hheod.yaml

@@ -5,7 +5,16 @@ AL:
 AZ:
   2015-10-01: false
 CA:
-  2015-10-01: true
+  # Elderly or disabled households with gross income at or below 200% of the
+  # poverty line are conferred MCE like any other household, and MCE has no
+  # net income test (CDSS ACL 13-32 note; ACL 15-42). Those above 200% are
+  # not MCE and face the regular net income and resource tests instead,
+  # which gross_hheod.yaml routes them to.
+  # ACL 11-11 expanded MCE to all non-assistance CalFresh households on
+  # 2011-02-01. Retain 2015-10-01 as this model's BBCE baseline, matching
+  # the surrounding California gross, asset, and poverty-year parameters;
+  # this flag alone does not establish modeled eligibility in 2011.
+  2015-10-01: false
 CO:
   2015-10-01: true
   2024-07-01: false
@@ -104,5 +113,23 @@ metadata:
       href: https://www.snapscreener.com/?p=table
     - title: USDA ERS SNAP Policy Database (bbce_elddisinclmt column, Jan 1996 - Dec 2020)
       href: https://www.ers.usda.gov/data-products/snap-policy-data-sets
+    - title: CDSS All County Letter 13-32, MCE/BBCE and elderly/disabled CalFresh households
+      href: https://www.cdss.ca.gov/lettersnotices/EntRes/getinfo/acl/2013/13-32.pdf#page=3
+    - title: "CDSS All County Letter 14-56, CalFresh Modified Categorical Eligibility #page 2,4"
+      href: https://www.cdss.ca.gov/lettersnotices/entres/getinfo/acl/2014/14-56.pdf#page=2
+    - title: CDSS All County Letter 14-63, CalFresh households eligible but entitled to no benefits
+      href: https://www.cdss.ca.gov/lettersnotices/entres/getinfo/acl/2014/14-63.pdf#page=2
+    - title: CDSS All County Letter 15-42, MCE gross income limit and income reporting thresholds
+      href: https://www.cdss.ca.gov/lettersnotices/EntRes/getinfo/acl/2015/15-42.pdf#page=4
+    - title: CDSS Manual of Policies and Procedures 63-409.1, requirements for participation
+      href: https://www.cdss.ca.gov/ord/entres/getinfo/pdf/fsman04b.pdf#page=34
+    - title: CDSS June 30, 2014 letter, CalFresh Modified Categorical Eligibility
+      href: https://www.cdss.ca.gov/lettersnotices/entres/getinfo/coletters/calfreshmodifiedcategoricaleligibility.pdf#page=3
+    - title: CDSS All County Letter 11-11, statewide expansion of MCE to all NACF households
+      href: https://www.cdss.ca.gov/lettersnotices/entres/getinfo/acl/2011/11-11.pdf#page=1
+    - title: 7 CFR 273.2(j)(2)(xi), categorical eligibility exemptions
+      href: https://www.law.cornell.edu/cfr/text/7/273.2#j_2_xi
+    - title: 7 CFR 273.9(a), income eligibility standards
+      href: https://www.law.cornell.edu/cfr/text/7/273.9#a
   breakdown:
   - state_code

policyengine_us/parameters/gov/hhs/tanf/non_cash/income_limit/net_applies/non_hheod.yaml

@@ -5,7 +5,18 @@ AL:
 AZ:
   2015-10-01: false
 CA:
-  2015-10-01: true
+  # CalFresh Modified Categorical Eligibility (MCE) has no net income test.
+  # An MCE household of three or more receives the allotment the issuance
+  # table gives for its net income, even above the net standard, and a
+  # household of one or two receives the minimum allotment (CDSS ACL 12-62,
+  # examples 4-5; ACL 14-56; ACL 15-42). Zero-allotment households of three
+  # or more are denied for that reason, not for failing a net test
+  # (ACL 14-63).
+  # ACL 11-11 expanded MCE to all non-assistance CalFresh households on
+  # 2011-02-01. Retain 2015-10-01 as this model's BBCE baseline, matching
+  # the surrounding California gross, asset, and poverty-year parameters;
+  # this flag alone does not establish modeled eligibility in 2011.
+  2015-10-01: false
 CO:
   2015-10-01: true
   2024-07-01: false
@@ -102,5 +113,23 @@ metadata:
       href: https://www.snapscreener.com/?p=table
     - title: USDA ERS SNAP Policy Database (bbce_inclmt column, Jan 1996 - Dec 2020)
       href: https://www.ers.usda.gov/data-products/snap-policy-data-sets
+    - title: "CDSS All County Letter 12-62, examples of MCE/BBCE households for CalFresh #page 4-5"
+      href: https://www.cdss.ca.gov/lettersnotices/entres/getinfo/acl/2012/12-62.pdf#page=4
+    - title: CDSS All County Letter 14-56, CalFresh Modified Categorical Eligibility
+      href: https://www.cdss.ca.gov/lettersnotices/entres/getinfo/acl/2014/14-56.pdf#page=4
+    - title: CDSS All County Letter 14-63, CalFresh households eligible but entitled to no benefits
+      href: https://www.cdss.ca.gov/lettersnotices/entres/getinfo/acl/2014/14-63.pdf#page=2
+    - title: CDSS All County Letter 15-42, MCE gross income limit and income reporting thresholds
+      href: https://www.cdss.ca.gov/lettersnotices/EntRes/getinfo/acl/2015/15-42.pdf#page=4
+    - title: CDSS Manual of Policies and Procedures 63-409.1, requirements for participation
+      href: https://www.cdss.ca.gov/ord/entres/getinfo/pdf/fsman04b.pdf#page=34
+    - title: CDSS June 30, 2014 letter, CalFresh Modified Categorical Eligibility
+      href: https://www.cdss.ca.gov/lettersnotices/entres/getinfo/coletters/calfreshmodifiedcategoricaleligibility.pdf#page=3
+    - title: CDSS All County Letter 11-11, statewide expansion of MCE to all NACF households
+      href: https://www.cdss.ca.gov/lettersnotices/entres/getinfo/acl/2011/11-11.pdf#page=1
+    - title: 7 CFR 273.2(j)(2)(xi), categorical eligibility exemptions
+      href: https://www.law.cornell.edu/cfr/text/7/273.2#j_2_xi
+    - title: 7 CFR 273.9(a), income eligibility standards
+      href: https://www.law.cornell.edu/cfr/text/7/273.9#a
   breakdown:
   - state_code

policyengine_us/tests/policy/baseline/gov/hhs/tanf/non_cash/meets_tanf_non_cash_net_income_test.yaml

@@ -1,30 +1,37 @@
-- name: Default household meets California's BBCE net income test (100%).
+# California's Modified Categorical Eligibility (MCE) has no net income
+# test (CDSS ACL 12-62, ACL 13-32, ACL 14-56, ACL 15-42), so the cases on the
+# mechanics of the net standard use Rhode Island, whose BBCE keeps the net
+# test for both household types.
+- name: Default California household meets the BBCE net income test because MCE has none.
   period: 2022
   output:
     meets_tanf_non_cash_net_income_test: true
 
-- name: California household with net income exactly at the standard meets the net income test.
+- name: Rhode Island household with net income exactly at the standard meets the net income test.
   period: 2022
   input:
     snap_fpg: 12_000
     snap_net_income: 12_000
+    state_code: RI
   output:
     # Monthly standard is ceil(1.0 x 1,000) = 1,000; net income of 1,000
     # per month is exactly at it.
     meets_tanf_non_cash_net_income_test: true
 
-- name: California household with net income above the standard fails the net income test.
+- name: Rhode Island household with net income above the standard fails the net income test.
   period: 2022
   input:
     snap_fpg: 12_000
     snap_net_income: 12_120
+    state_code: RI
   output:
     # Net income of 1,010 per month exceeds the 1,000 standard.
     meets_tanf_non_cash_net_income_test: false
 
-- name: California household at the rounded-up whole-dollar standard meets the net income test.
+- name: Rhode Island household at the rounded-up whole-dollar standard meets the net income test.
   period: 2022
   input:
+    state_code: RI
     # Monthly poverty guideline of 2,220.83 yields a whole-dollar standard
     # of ceil(2,220.83) = 2,221, so a rounded net income of exactly 2,221
     # still passes; a raw ratio comparison (2,221 / 2,220.83 > 1) would
@@ -34,7 +41,7 @@
   output:
     meets_tanf_non_cash_net_income_test: true
 
-- name: California nine-person household at the published FY 2026 net standard meets the net income test.
+- name: Rhode Island nine-person household at the published FY 2026 net standard meets the net income test.
   period: 2026-01
   input:
     people:
@@ -50,11 +57,11 @@
     households:
       household:
         members: [person1]
-        state_code: CA
+        state_code: RI
   output:
     meets_tanf_non_cash_net_income_test: true
 
-- name: California nine-person household just above the FY 2026 net standard fails the net income test.
+- name: Rhode Island nine-person household just above the FY 2026 net standard fails the net income test.
   period: 2026-01
   input:
     people:
@@ -70,9 +77,75 @@
         # $4,972 under 7 CFR 273.9(a)(3)(ii). Net income of $4,973 is $1
         # above it.
         snap_net_income: 4_973
+    households:
+      household:
+        members: [person1]
+        state_code: RI
+  output:
+    meets_tanf_non_cash_net_income_test: false
+
+- name: California MCE household of four above the FY 2026 net standard meets the net income test.
+  period: 2026-01
+  input:
+    people:
+      person1: {}
+    spm_units:
+      spm_unit:
+        members: [person1]
+        snap_unit_size: 4
+        is_tanf_non_cash_hheod: false
+        # $286 above the four-person FY 2026 net standard of $2,680 (CDSS
+        # ACIN I-46-25, attachment I).
+        snap_net_income: 2_966
     households:
       household:
         members: [person1]
         state_code: CA
   output:
+    # An MCE household of three or more gets the issuance-table allotment
+    # "even if the household's net income exceeds the maximum amount
+    # allowable" (CDSS ACL 12-62, example 5; ACL 14-56; ACL 15-42).
+    meets_tanf_non_cash_net_income_test: true
+
+- name: California MCE elderly or disabled household above the FY 2026 net standard meets the net income test.
+  period: 2026-01
+  input:
+    people:
+      person1: {}
+    spm_units:
+      spm_unit:
+        members: [person1]
+        snap_unit_size: 1
+        is_tanf_non_cash_hheod: true
+        # $486 above the one-person FY 2026 net standard of $1,305 (CDSS
+        # ACIN I-46-25, attachment I).
+        snap_net_income: 1_791
+    households:
+      household:
+        members: [person1]
+        state_code: CA
+  output:
+    # Elderly or disabled households at or below 200% of the poverty line
+    # are conferred MCE, and MCE households of one or two get the minimum
+    # allotment even above the net standard (CDSS ACL 13-32, note).
+    meets_tanf_non_cash_net_income_test: true
+
+- name: Rhode Island household of four above the FY 2026 net standard fails the net income test.
+  period: 2026-01
+  input:
+    people:
+      person1: {}
+    spm_units:
+      spm_unit:
+        members: [person1]
+        snap_unit_size: 4
+        is_tanf_non_cash_hheod: false
+        snap_net_income: 2_966
+    households:
+      household:
+        members: [person1]
+        state_code: RI
+  output:
+    # The same household fails where the state's BBCE keeps the net test:
+    # $2,966 exceeds the four-person FY 2026 standard of $2,680.
     meets_tanf_non_cash_net_income_test: false