General Assembly Raised Bill No. 5540 seeks to amend Section 17b-112 of the general statutes regarding the temporary family assistance program managed by the Department of Social Services. The bill allows the Commissioner of Social Services to operate parts of the program as a state-funded initiative to avoid federal fiscal penalties, while ensuring that families receiving assistance under this state-funded portion meet the same eligibility criteria as those under the federal program. Key provisions include the clarification of the definition of "family," the ability for administrative transfers between assistance programs, and exemptions from time-limited benefits for families with specific circumstances. Additionally, families can petition for six-month extensions of benefits if they demonstrate good faith efforts to comply with program requirements.

The bill introduces significant changes to eligibility and benefit calculations, including disregarding earned income up to the federal poverty level, eliminating the asset limit for assistance eligibility, and allowing families to disregard the first fifty dollars of current child support in eligibility determinations. It also establishes a transitional benefit for families whose earnings exceed the federal poverty level, along with labor force retention bonuses and annual cost-of-living adjustments for benefits. Furthermore, the bill addresses "benefits cliffs" by mandating the disregard of transitional benefits when determining eligibility for nutrition assistance and establishing a two-year pilot program to support 200 households. The pilot program will require annual reporting to assess its effectiveness, with the overall aim of helping families maintain their temporary family assistance benefits despite increases in income.

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