National Farmworker Jobs Program eligibility, Change 1

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                 WIOA-NFJP
               ADVISORY SYSTEM                            CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                        OWI
             Washington, D.C. 20210                        DATE
                                                           July 12, 2021

ADVISORY:       TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 18-16
                CHANGE 1

TO:             STATE WORKFORCE ADMINISTRATORS
                STATE WORKFORCE AGENCIES
                STATE WORKFORCE LIAISONS
                STATE AND LOCAL WORKFORCE BOARDS AND CHAIRS
                AMERICAN JOB CENTERS
                NATIONAL FARMWORKER JOBS PROGRAM GRANTEES
                STATE MONITOR ADVOCATES

FROM:           SUZAN G. LEVINE
                Principal Deputy Assistant Secretary

SUBJECT:        Change 1 to Training and Employment Guidance Letter 18-16, Program
                Eligibility and Enrollment Guidance for the National Farmworker Jobs Program

1. Purpose. To clarify participant eligibility for the National Farmworker Jobs Program
   (NFJP) authorized under Section 167 of the Workforce Innovation and Opportunity Act
   (WIOA).

2. Action Requested. NFJP grantees should use this guidance when enrolling individuals for
   services to comply with portions of WIOA Title I Section 167 and the WIOA Final Rules.
   NFJP grantees must actively work with their American Job Centers (AJC) and other
   workforce system partners in identifying services and programs that are tailored to the
   applicants’ needs and career pathway interests. Individuals who are determined ineligible for
   NFJP should be connected to other AJC services or alternative programs for which they
   qualify.

3. Summary and Background.
   a. Summary – This Change 1 allows grantees to consider the nature of the agriculture
      industry, including farmworkers’ seasonal employment patterns and irregular income
      when determining program eligibility. Additionally, Section 4.II, Other Key
      Requirements, is updated to reflect an order of a United States District Court regarding
      consideration of Deferred Action for Childhood Arrivals (DACA). This Change 1 also
      provides guidance regarding the updated low-income definition under the Consolidated
      Appropriations Act, 2021 (P.L. 116-260) for determining eligibility of participants to
      receive services through NFJP grants awarded with Program Year 2021 funds.
      Additionally, Section 4.I, Eligibility Requirements for NFJP Participants, updates the list

 RESCISSIONS                                              EXPIRATION DATE
 TEGL 18-16                                               Continuing

       of individuals that grantees can serve through NFJP to align with the approved
       Employment and Training Administration (ETA) Form 9172, Department of Labor
       (DOL)-Only Participant Individual Record Layout (PIRL). Furthermore, this guidance
       includes Attachment I: Included Income, Excluded Income, and Examples of Methods to
       Calculate Income Tool. All other information in TEGL 18-16 remains the same.
   b. Background – ETA published TEGL 18-16 in January 2017. In the years since, grantees
      have asked questions about how income should be calculated in determining participant
      eligibility. Further, courts have addressed questions on DACA, and the recent
      appropriations act adjusted program eligibility. This Change addresses all three of these
      occurrences.
4. Program Details.
   I. Eligibility Requirements for NFJP Participants. Individuals receiving career services,
      training services, housing services, youth services, or related assistance services through
      NFJP funding must meet, on the date of application for enrollment, criterion A and
      criterion B below as defined in 20 CFR 685.110:
        A. To receive NFJP services an individual must be either a(n):
                i. Eligible seasonal farmworker adult;
               ii. Eligible migrant farmworker adult;
              iii. Eligible migrant and seasonal farmworker (MSFW) Youth;
              iv. Dependent Adult of an eligible MSFW; or
               v. Dependent Youth of an eligible MSFW.

           and,

         B. A low-income individual who faces multiple barriers to economic self-sufficiency
            as defined in Section IV.6 below.

       Note: Grantees may enroll a participant as either MSFW adult or MSFW youth
       participant as described in 20 CFR 685.320, but not in both categories. See definitions in
       Section 4.III below. Additionally, NFJP-funded permanent housing developed with
       NFJP funds must be promoted and made widely available to eligible MSFWs, but
       occupancy is not restricted to eligible MSFWs.

   II. Other Key Requirements. Male participants in NFJP must have presented and
       submitted to registration as required by Section 3 of the Military Selective Service Act
       (50 U.S.C. App. 453) (see WIOA Section 189(h)). TEGL 11-11, Change 1 and 2 provide
       Selective Service registration requirements for ETA programs authorized by WIOA.
       TEGL 11-11 Change 1 and Change 2 implemented the requirements of WIA Section
       189(h), and WIOA retains the same requirements. This guidance establishes that
       individuals who failed to register may still be eligible for NFJP services if they are able to
       provide, and the grantee determines, that there was not a knowing and willful failure to
       register according to the definitions provided in TEGL 11-11 Change 1 and Change 2.
       Please visit the Selective Service website for more information about the registration
       requirements at www.SSS.gov. The Selective Service System also provides a quick

     reference chart showing who must register located at https://www.sss.gov/wp-
     content/uploads/2020/11/WhoMustRegisterChart.pdf.

     Please note that TEGL 2-14 specifies that an individual who has been granted relief under
     DACA and has employment authorization documents may be eligible to receive DOL-
     funded services (provided that the individual meets all other program eligibility
     requirements). NFJP grantees must continue to follow existing DOL policy in TEGL 2-
     14 and any updated guidance DOL releases on these individuals’ eligibility for DOL-
     funded programs. For further information about eligibility for DACA, please review the
     U.S. Citizenship and Immigration Services (USCIS) website https://www.uscis.gov/. For
     information on prohibition on discrimination against certain non-citizens, see WIOA
     Section 188(a)(5).

III. Definitions. To help determine participant eligibility under section 4.I. of this TEGL, see
     the definitions below:
       A. Eligible seasonal farmworker, as defined in WIOA Section 167(i)(3)(A), means a
           low-income individual who: i.) for 12 consecutive months out of the 24 months
           prior to application for the program involved, has been primarily employed in
           agricultural or fish farming labor that is characterized by chronic unemployment
           or underemployment, and ii.) faces multiple barriers to economic self-
           sufficiency. Please note that dependents of an eligible seasonal farmworker may
           receive NFJP services.
               The terms “primarily employed in agricultural or fish farming labor” used in
                the definition of eligible seasonal farmworker refer to an individual who earns
                at least 50 percent of their total income from farmwork or is employed at least
                50 percent of their total employment time in farmwork.
               The terms “chronic unemployment or underemployment” used in the
                definition of eligible seasonal farmworker refer to the nature of the agriculture
                or fish farming labor force as a whole and not whether an applicant is either
                chronically unemployed or underemployed. For the purposes of determining
                eligibility, grantees do not need to demonstrate that an individual is either
                chronically unemployed or underemployed.
                Similarly, grantees are not required to separately document that an individual
                faces multiple barriers to economic self-sufficiency in determining eligibility,
                since farmworker status and low-income status are both barriers to
                employment as defined in WIOA Section 3(24) (and thus, individuals who
                meet the farmworker and low-income criteria have multiple barriers by
                definition). To effectively serve all NFJP participants, grantees are
                encouraged to assess participants’ experience, skills, and needs, leveraged
                with labor market information, to help inform their career planning approach.
                Additionally, although grantees are not required to separately document
                multiple barriers to determine eligibility, grantees should document any
                information about an applicant’s barriers to economic self-sufficiency and use
                it to inform the development of a career plan for all participants as well as to
                improve the program’s effectiveness. Career planning is a client-centered

         approach designed to develop comprehensive programs and to coordinate
         supportive services during program participation and after job placement
         described in WIOA Section 3(8).
B. Eligible migrant farmworker, as defined in WIOA Section 167(i)(2), means an
   eligible seasonal farmworker as defined in WIOA Section 167(i)(3) whose
   agricultural labor requires travel to a job site such that the farmworker is
   unable to return to a permanent place of residence within the same day. Please
   note that dependents of eligible migrant farmworkers may receive NFJP
   services.

C. Eligible MSFW youth means an eligible MSFW aged 14-24 who is
   individually eligible or a dependent of an eligible MSFW. Grantees may enroll
   participants aged 18-24 as either an MSFW adult or an MSFW youth
   participant (described in § 685.110), but not in both categories.

D. Dependent of an MSFW as defined in 20 CFR 685.110 is an individual who:
    1) Was claimed as a dependent on the eligible MSFW’s Federal income tax
       return for the previous year; or
    2) Is the spouse of the eligible MSFW; or
    3) If not claimed as a dependent for Federal income tax purposes, is able to
       establish:
       (i) A relationship as the eligible MSFW’s;
            (A) Child, grandchild, great grandchild, including legally adopted children;
            (B) Stepchild;
            (C) Brother, sister, half-brother, half-sister, stepbrother, or stepsister;
            (D) Parent, grandparent, or other direct ancestor but not foster parent;
            (E) Foster child;
            (F) Stepfather or stepmother;
            (G) Uncle or aunt;
            (H) Niece or nephew;
            (I) Father-in-law, mother-in-law, son-in-law; or
            (J) Daughter-in-law, brother-in-law, or sister-in-law; and
       (ii) The receipt of over half of his/her total support from the eligible
            MSFW's family during the eligibility determination period.

  Note: To receive services as dependents, the family members of an eligible MSFW
  must meet the definition of a dependent as described in 20 CFR 685.110.

  For the purposes of determining eligibility for a “dependent of an eligible MSFW,”
  the dependent’s farmworker family member is required to demonstrate that they are
  an “eligible MSFW” by meeting both the eligibility requirements in criterion A
  (farmworker status) and criterion B (low-income status).

  For the purpose of determining eligibility for individuals receiving housing services,
  the same eligibility requirements (farmworker status and low-income status) apply as

               described in Section 4.I of this TEGL. For an MSFW’s family member who does
               not meet the definition of dependent at 20 CFR 685.110, grantees must serve them as
               an eligible MSFW individual or Other Individual, as appropriate.

           E. Low-Income Individual means an individual as defined in WIOA Section 3(36)(A),
              and incorporating the low-income provision of the NFJP appropriations language in
              Public Law 116-260, who:
                i. Receives, or in the past 6 months has received, or is a member of a family that
                     is receiving or in the past 6 months has received, assistance through the
                     supplemental nutrition assistance program (SNAP) established under the Food
                     and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.); the program of block grants
                     to States for temporary assistance for needy families program (TANF) under
                     part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.); or the
                     supplemental security income (SSI) program established under title XVI of the
                     Social Security Act (42 U.S.C. 1381 et seq.); or State or local income-based
                     public assistance;
                ii. Is in a family with total family income that does not exceed the higher of:
                          1. 150 percent1 of the poverty line2 (Note: this provision of the low-
                             income definition takes effect July 1, 2021 for determining eligibility
                             of participants to receive services through NFJP grants awarded with
                             Program Year 2021 funds. For determining eligibility of participants
                             to receive services through Program Year 2020 funds or earlier,
                             grantees must use 100 percent of the poverty line for this provision); or
                          2. 70 percent of the Lower Living Standard Income Level
                             (LLSIL);
                iii. Is a homeless individual (as defined in Section 41403(6) of the Violence
                      Against Women Act of 1994 (42 U.S.C. 14043e–2(6)), or a homeless child
                      or youth (as defined under Section 725(2) of the McKinney-Vento
                      Homeless Assistance Act (42 U.S.C. 11434a(2));
                iv. Receives or is eligible to receive a free or reduced price lunch under
                      the Richard B. Russell National School Lunch Act (42 U.S.C. 1751

1
 Note, The Consolidated Appropriations Act, 2021 (P.L. 116-260) specified that, “…notwithstanding the definition
of ‘eligible seasonal farmworker’ in section 167(i)(3)(A) of the WIOA relating to an individual being ‘low-income’,
an individual is eligible for migrant and seasonal farmworker programs under section 167 of the WIOA under that
definition if, in addition to meeting the requirements of clauses (i) and (ii) of section 167(i)(3)(A), such individual is
a member of a family with a total family income equal to or less than 150 percent of the poverty line.” Accordingly,
ETA has revised the definition of “low-income individual” above to incorporate this provision. However, as noted
above, this provision is tied to the appropriations language, and applies to grant activities funded under Program
Year 2021 awards. ETA will subsequently revise its guidance regarding the definition of “low-income individual,”
as needed, if the same provision is not included in subsequent appropriations.
2
  Pursuant to WIOA Section 3(49), the term “poverty line” as defined by the Office of Management and Budget is
revised annually in accordance with Section 673(2) of the Community Services Block Grant Act (42 U.S.C.
9902(2)). The poverty line is updated annually based on most recent data available from the U.S. Census Bureau.
The U.S. Department of Labor, Employment and Training Administration posts the poverty guidelines and the
LLSIL online at https://www.dol.gov/agencies/eta/llsil. The U.S. Department of Health and Human Services also
posts the poverty guidelines online at https://aspe.hhs.gov/poverty-guidelines.

                       et seq.);3 Is a foster child on behalf of whom State or local
                       government payments are made; or
                  v.   Is an individual with a disability whose own income meets the income
                       requirement of clause (ii), but who is a member of a family whose income
                       does not meet this requirement (WIOA Section 3(36)(A)).

           F. Family Income and Low-Income Eligibility. For the purposes of determining low-
              income status as defined under WIOA Section 3(36)(A) for an individual who
              resides with their family in a single residence, grantees should use “family” as
              defined in 20 CFR 675.300, which means two or more persons related by blood,
              marriage, or decree of a court, who are living in a single residence, and are included
              in one or more of the following categories:
                   (1) A married couple and dependent children;
                   (2) A parent or guardian and dependent children; or
                   (3) A married couple.

               Note: When determining family income, NFJP grantees have the discretion to
               develop policies, outline methodologies, and select a method to calculate family
               income. All methods must be aligned with the grantee organization’s policies and
               procedures, and grantees should consult with their Federal Project Officers in
               examining or changing their income determination methodologies. See Section IV
               of this TEGL and the NFJP Program Guide for additional information.

               When calculating the family income, grantees may use the income of the married
               couple, single parent, or guardian as well as other regular contributions for support,
               if appropriate. To determine the family size, grantees may use the total number of
               individuals who fall under the definition of family as defined above. See the NFJP
               Program Guide to learn more about what counts as income and other regular
               contributions for support. The NFJP Program Guide is available at
               https://farmworker.workforcegps.org/resources/2018/09/20/19/58/NFJP-Program-
               Guide. Additionally, if an individual is not living in a single residence with other
               family members, that individual is not a member of a family for the purpose of
               income calculations to determine eligibility under NFJP.

               Additionally, pursuant to 20 CFR 685.110, an MSFW youth may be individually
               eligible or may receive services as a dependent of an eligible MSFW. When an
               MSFW youth is individually eligible this means their own income and farmwork
               meets the low-income and farmwork requirements.

           G. Farmwork means cultivation and tillage of the soil, dairying, production,
              cultivation, growing, and harvesting of any agricultural or horticultural
              commodities. This includes the raising of livestock, bees, fur-bearing animals, or

3
  An individual who receives or is eligible to receive free or reduced price lunch. To qualify for free meals through
the National School Lunch Program, the income of the child’s family must not exceed 130 percent of the poverty
level. To qualify for reduced-price meals, the income of the child’s family must not exceed 185 percent of the
poverty line. The eligibility guidelines are available at https://www.fns.usda.gov/cn/income-eligibility-guidelines.

         poultry, farming of fish, and any practices (including any forestry or lumbering
         operations) performed by a farmer, or on a farm, as an incident to or in
         conjunction with such farming operations, including preparation for market,
         delivery to storage or to market, or to carriers for transportation to market. It also
         includes the handling, planting, drying, packing, packaging, processing, freezing,
         or grading prior to delivery for storage of any agricultural or horticultural
         commodity in its unmanufactured state (See WIOA Final Rule
         https://www.dol.gov/agencies/eta/wioa/regulations).

         Pursuant to WIOA Section 167(i)(3)(A), individuals must have performed labor
         for wages in occupations and industries within agricultural production and
         agricultural services for 12 consecutive months out of the 24 months prior to
         application for the program involved. Note that in some exceptional
         circumstances, grantees may shift the 24-month eligibility determination period
         so that it precedes a period of unavailability experienced by an individual, as
         described in Section IV of this TEGL. In these circumstances, grantees should
         review the labor performed by such an individual within the modified 24-month
         eligibility determination period, rather than within the 24 months immediately
         preceding the individual’s application to the program.

         Although the North American Industry Classification System (NAICS) codes are
         the primary resource used to help define farmwork, ETA recommends that NFJP
         grantees draw upon multiple factors rather than refer only to the NAICS codes.
         For information on industry sectors, see https://www.bls.gov/bls/naics.htm.

IV. Eligibility Determination Procedures.
      Eligibility Determination Period for Farmworker Status: To determine an
         applicant’s farmworker status, grantees must use any consecutive 12-month period
         within the 24-month period immediately preceding the date of application for NFJP
         by the MSFW applicant.

                 An applicant’s eligibility determination shall be valid for 60 days from the
                  date of the initial application. After the initial 60-day period has elapsed,
                  if the individual is not an enrolled participant, the grantee will update the
                  information to re-certify the applicant.

                 When an applicant was unavailable for work in the period immediately
                  preceding the date of application because he/she had been in the armed
                  forces, institutionally confined by incarceration or other legal detainment,
                  hospitalized, or otherwise unavailable due to a documented disability,
                  grantees may establish an eligibility determination period during the 24
                  months immediately preceding the date of such unavailability, provided,
                  however, that such period may not begin more than 48 months prior to the
                  date of application.

        Eligibility Determination for Low-income Status: To determine an applicant’s low-
         income status, grantees must calculate income at the time of application.

                  Methods for Calculating Income. MSFWs experience earnings
                   fluctuations throughout the year due to the nature of working in the
                   agriculture industry. Determining whether an individual meets the low-
                   income requirement by gathering source documentation for the past 12
                   months may be challenging and may distort an individual’s financial
                   circumstance at the time of application. NFJP grantees have the discretion
                   to develop policies, outline methodologies, and select a method that
                   annualizes an individual’s income in a way that reflects the financial
                   circumstances of an individual at the time of application. Grantees should
                   document any changes in wages and salaries, and document the reason
                   they chose a specific method to annualize an individual’s income. All
                   methods must be aligned with the grantee organization’s policies and
                   procedures. See NFJP Program Guide for additional information.

V. NFJP Enrollment. To be a program participant, an individual must complete the
   following requirements: eligibility determination, career assessment, and receipt of at
   least 1 of the 5 program elements (i.e., career services, training services, housing
   assistance services, youth services, and/or certain related assistance services). These
   individuals will be considered program participants and will be included in either adult or
   youth performance calculations.

   Individuals who are enrolled in certain related assistance activities that require significant
   involvement of grantee staff are also considered participants (see 20 CFR 685.400(b)).
   Specifically, “certain related assistance” activities are those that require an eligibility
   determination and a career assessment, as described above, and are directly related to
   education, training, career, and/or employment outcomes. These activities may include,
   but are not limited to:
      Solutions to increase graduation rates;
      Remedial and adult-basic education;
      Self-employment and related business or micro-enterprise development or
         education; and
      Occupational career and technical education.

    An individual who receives only related assistance services that 1) do not require
    significant involvement of grantee staff time; and 2) do not require a career assessment
    by grantee staff of an individual’s skills, education, or career objectives (including all
    emergency assistance services) will be considered a “reportable individual,” as defined
    in 20 CFR 677.150(b). Such individuals are not included in performance calculations as
    program participants. For example, the Department does not consider pesticide and
    worker safety training (which neither requires significant involvement of grantee staff
    time nor career assessments) to be the kind of related assistance that requires the
    individual to be included in the performance calculations.

    Emergency assistance, a form of short-term related assistance, may be provided to
    eligible MSFWs and their dependents as defined in 20 CFR 685.110 to address these
    farmworker’s immediate needs. Emergency assistance may include but is not limited to,
    the provision of necessary items like garments of clothing, food, and transportation
    vouchers. When an individual receives emergency assistance only (and no other NFJP
    services), an applicant’s self-attestation is acceptable as sufficient documentation of
    eligibility.

    Under certain circumstances, NFJP grantees may provide emergency assistance to H-2A
    Temporary Agricultural Workers (H-2A workers) to address an immediate and short-
    term need. NFJP grantees are expected to leverage available alternative resources and
    coordinate continuously with State Monitor Advocates, Farm Labor Specialists, and
    other community-based partners, whenever possible, to raise awareness with respect to
    any underlying issues preventing the H-2A workers from receiving similar benefits or
    assistance, as required by the agricultural employer’s certified job order or work contract
    with the H-2A workers (see 20 CFR part 655 Subpart B, 20 CFR part 653, and 29 CFR
    part 501). The Department’s Wage Hour Division (WHD) has developed a user-friendly
    H-2A Worker Rights Card for workers and H-2A Worker Rights Poster for employers,
    which summarizes the benefits, wages, and working conditions to be provided to H-2A
    and U.S. workers performing the same work for the employer. Electronic versions of
    the H-2A Worker Rights Card and Poster in English and Spanish can be found on the
    WHD’s web site at https://www.dol.gov/agencies/whd/agriculture/h2a.

    In circumstances where an H-2A worker submits a complaint or reports a possible
    violation of any contractual H-2A labor standard, NFJP grantees should refer the H-2A
    worker to the appropriate office of the State Monitor Advocate (SMA) who can educate
    the H-2A worker regarding how to file a formal complaint with the State Workforce
    Agency (SWA) Employment Service Complaint System (Complaint System). See
    TEGL 8-17 for additional guidance at
    https://wdr.doleta.gov/directives/corr_doc.cfm?docn=6290. The SMA or outreach
    workers (SWA staff) will explain the Complaint System to the H-2A worker. If the H-
    2A worker wishes to file a complaint, the SWA staff will take the complaint in writing
    and refer to WHD, the agency that enforces the contractual obligations under the H-2A
    program, as described at 29 CFR part 501. If the H-2A worker decides not to file a
    complaint, the report of a suspected violation could turn into an apparent violation and
    may be handled as a complaint as described at 20 CFR 658.419.

VI. Data Validation and Performance Reporting Requirements. NFJP grantees are required
    to have an eligibility determination system that enables the generation of a record
    supporting eligibility determinations and enrollment decisions, including program
    participant status, low-income status, etc. To learn about data validation requirements,
    NFJP grantees can review guidance in TEGL 23-19 at
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=9155. See Attachment II of
    TEGL 23-19 Source Documentation for Core/Non-Core Programs DOL-only Data
    Element Validation. The table displays the PIRL data element numbers, data element

        names, definitions/instructions, program specific requirement and source documentation
        needed to perform data element validation on each data element.

        Additionally, NFJP grantees can review guidance on performance reporting
        requirements in TEGL 14-18 at
        https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=7611. Note, although
        redetermination is not required under NFJP, participants may experience an unexpected
        interruption that leads to disenrollment. In such circumstances, grantees may use PIRL
        data element #923, Other Reasons for Exit, to exclude a participant from performance
        calculations. Note: Code 6 may be used when an individual who was determined to be
        eligible, is later determined not to have met eligibility criteria. Similar to other
        performance reporting data elements, grantees are required to maintain documentation
        when using PIRL data element #923. Additional ETA performance reporting updates are
        available at https://www.dol.gov/agencies/eta/performance/updates.

5. Inquiries. All NFJP Grantees should submit inquiries to their respective Federal Project
   Officer.

6. References.
    WIOA (Pub. L. 113-128), Title I;
    WIA (Pub. L. 105-220), Title I;
    WIOA DOL-Only Final Rule (20 CFR parts 603, 651 to 658, 675, and 679 to 688);
    TEGL NO. 23-19 Guidance for Validating Required Performance Data Submitted by
      Grant Recipients of U.S. Department of Labor (DOL) Workforce Programs;
    TEGL NO. 14-18 Aligning Performance Accountability Reporting, Definitions, and
      Policies Across Workforce Employment and Training Programs Administered by the U.S.
      Department of Labor (DOL);
    TEGL NO. 8-17 Guidance on the Requirement for a Memorandum of Understanding
      (MOU) Between State Monitor Advocates (SMA) and National Farmworker Jobs
      Program (NFJP) Grantees;
    TEGL NO. 2-14 Eligibility of Deferred Action for Childhood Arrivals Participants for
      Workforce Investment Act and Wagner-Peyser Act Programs; and
    TEGL NO. 11-11 Change 1 and Change 2 Selective Service Registration Requirements
      for Employment and Training Administration Funded Programs.

7. Attachment(s).
    Attachment I: Included Income, Excluded Income, and Examples of Methods to
      Calculate Income Tool

                                                                 Attachment I to TEGL 18-16, Change 1

Included Income, Excluded Income, and Examples of Methods to Calculate Income Tool
Use this attachment in conjunction with TEGL 18-16, Change 1. The definition of a low-income
individual under the Workforce Innovation and Opportunity Act (WIOA) Section 3(36) does not
exclude unemployment compensation (this includes Pandemic Emergency Unemployment
Compensation, Pandemic Unemployment Assistance, and Extended Benefits), old-age survivors
insurance benefits, or child support payments from income calculations as they were previously
excluded under the Workforce Investment Act (WIA) Section 101(25). ETA used the U.S.
Department of Labor’s Bureau of Labor Statistics definition of income to develop this tool.1
This tool aims to increase NFJP grantees’ understanding of what types of income would count
towards the income requirement to qualify for NFJP and provide examples of methods to
calculate income.
      A. Examples of the types of income that could be included when making eligibility
         determination based on income are outlined in the table below.
                                                     Included Income
          Income:                         Wages and salaries;2
          Earnings before                 Self-employment income;
          Taxes                           Social Security (Old-Age Survivors and Disability Insurance),
                                           private and government retirement;
                                          Interest, dividends, rental income, and other property income;
                                          Unemployment and workers’ compensation; and
                                          Regular contributions for support (alimony and child support) –
                                           Please note, the term regular for this source of income. If an
                                           individual is a parent and cannot rely on receiving contributions
                                           such as child support, grantees may consider this when calculating
                                           income.

                                     Important to Know: When gathering information about an individual’s
                                     income, please note that some types of Federal, State, or local income-
                                     based public assistance may automatically qualify someone as low-
                                     income.
                                         For example, under WIOA Section 3(36)(A)(i), an individual
                                           meets the low-income eligibility when they receive, or in the past
                                           6 months has received, or is a member of a family that is
                                           receiving or in the past 6 months has received, assistance through
                                           the supplemental nutrition assistance program (SNAP)
                                           established under the Food and Nutrition Act of 2008 (7 U.S.C.
                                           2011 et seq.); the program of block grants to States for temporary
                                           assistance for needy families program (TANF) under part A of
                                           title IV of the Social Security Act (42 U.S.C. 601 et seq.); or the
                                           supplemental security income (SSI) program established under

1
    https://www.bls.gov/cex/csxgloss.htm
2
    https://www.bls.gov/bls/glossary.htm

                                                      Attachment I to TEGL 18-16, Change 1

                                  title XVI of the Social Security Act (42 U.S.C. 1381 et seq.); or
                                  State or local income-based public assistance;
                                 Additionally, per WIOA Section 3(50), the term "public
                                  assistance'' means Federal, State, or local government cash
                                  payments for which eligibility is determined by a needs or
                                  income test. State or local income-based public assistance
                                  payments, which includes but is not limited to the following type
                                  of assistance:

                                   •   Utility
                                   •   Child care
                                   •   Nutrition
                                   •   Housing

                           Note: See section 6 of TEGL 18-16, Change 1 for additional
                           information on how public assistance may qualify an individual as
                           “low-income.”

B. Examples of types of income that could be excluded when making eligibility
   determination based on income are outlined in the table below. When calculating
   income, do not include any allowance, earnings, or payments stemming from
   participation in WIOA Title I programs. Per 20 CFR 683.275 (d), allowances,
   earnings, and payments to individuals participating in programs under title I of WIOA
   are not considered as income for purposes of determining eligibility for and the
   amount of income transfer and in-kind aid furnished under any Federal or Federally-
   assisted program based on need, other than as provided under the Social Security Act
   (42 U.S.C. 301 et seq.).

                                         Excluded Income

  Volunteer/Job              Allowances, earnings, and payments to individuals participating
  Training                    in programs under title I of WIOA;
  Payments
                             Any payment to volunteers under Title I (VISTA and others) and
                              Title II (RSVP, foster grandparents, and others) of the Domestic
                              Volunteer Service Act of 1973;

                             Payments to volunteers under Section 8(b)(1)(B) of the Small
                              Business Act (SCORE and ACE); and

                             Payments and allowances to individuals participating in
                              AmeriCorps to the extent excluded by the National and
                              Community Service Act of 1990.

  Student                    Student financial assistance received under Title IV of the Higher
                              Education Act of 1965, including the Pell Grant, Supplemental

                                               Attachment I to TEGL 18-16, Change 1

Financial Aid            Education Opportunity Grant, State Student Incentive Grants,
                         National Direct Student Loan, PLUS, College Work Study, and
                         Byrd Honor Scholarship Programs, to the extent excluded by the
                         Act; and

                        Payments received under the Carl D. Perkins Vocational Education
                         Act, as amended by the Carl D. Perkins Vocational and Applied
                         Technology Act Amendments of 1990, P.L. 101-392.

Military Service-       Any amounts received as military pay or allowances by any
related Income           person who served on active duty, and certain other specified
                         benefits paid while on active duty or paid by the Department of
                         Veterans Affairs (VA) for vocational rehabilitation, disability
                         payments, or related VA-funded programs are not to be
                         considered as income, in accordance with VA Title 38 U.S.C.
                         4213 and 20 CFR 683.230. For additional information about
                         assisting Veterans, please see Training and Employment
                         Guidance Letter NO. 10-09.

                    All pay and/or financial allowances earned while a veteran was on
                    active duty are exempt. Title 38 U.S.C. 4213 also exempts from
                    inclusion in “low income” calculations any financial benefits
                    received by a covered person under the following Chapters of Title
                    38 of the U.S. Code:

                        11. Compensation for service-connected disability or death.
                        13. Dependency and indemnity compensation for service-
                        connected deaths.
                        30. All-volunteer force educational assistance program.
                        31. Training and rehabilitation for veterans with service-connected
                        disabilities.
                        35. Survivors’ and dependents’ educational assistance.
                        36. Administration of educational benefits

                    Also excluded from “low income” calculations are benefits received
                    under Chapter 106 of Title 10 U.S. Code, Educational assistance for
                    members of the selected reserve.

                    Note: Pension payments authorized by Title 10 U.S. Code, such as
                    those received by military retirees whether or not their retirement
                    was based on disability, are not exempt and are to be included in
                    “low income” calculations. Also not exempt are pension benefits
                    paid under Chapter 15 of Title 38 U.S. Code.

                                                                     Attachment I to TEGL 18-16, Change 1

        Lump sum                        Lump sum payments or large cash settlements are not counted as
        payments                         income since they are not received on a regular basis. These
                                         funds may be provided as compensation for a loss that must be
                                         replaced, such as payment from an insurance company for fire
                                         damage to a house.

                                     Note: When lump sum payments are put into a savings account and
                                     the household regularly draws from that account for living expenses,
                                     the amount withdrawn is counted as income.

    C. Examples of Methods for Calculating Income

    NFJP grantees have the flexibility to use different methods for calculating income and should
    use a method that considers an individual’s current income. Methods to annualize income
    are not limited to, but may include the following approaches below. When annualizing an
    individual’s income, grantees must also include other sources of income that are listed above
    under section A, of this tool. The examples below demonstrate three different ways to
    calculate an individual’s wages. The methods only reflect income calculations to determine
    an individual’s eligibility for NFJP.

        Salary Method: Use this method for individuals who have pay stubs or other source
         documentation covering the most recent 6 months of their family’s wages. Grantees
         should use this method when there is little or no variation in the wages or salaries for any
         of the pay stubs submitted for income verification. To calculate an individual’s annual
         income based on wages or salaries, first, multiply the gross3 pay listed on the paystub or
         source documentation by the number of pay periods in the six-month determination
         period. Next, multiply the result by two to determine the annual wages or salaries.
         Example: Five pay stubs are provided indicating gross wages of $772 each. The pay
         frequency is biweekly (13 times in six months). [($772 ×13= $10,036) × 2] = $20,072.

        Average Pay Method: Use this method for individuals who have six monthly bank
         statements or other source documentation which show variation in the individual’s
         wages. These variations may result for several reasons, including overtime or work for a
         different employer. In circumstances where variation exists, grantees can determine an
         individual’s average gross wages by adding the total gross wages and dividing the result
         by the number of monthly bank statements. Example: an individual shows bank
         statements from the most recent 6 months. The bank statements for 6 months show the
         following monthly income $770, $290, $490, $490, $490, and $490. The total income
         for the individual for 6 months is $3,020. To calculate the monthly average, divide the
         result by 6. Then to calculate the individual’s annual income from wages, multiply the
         month average $503 by 12 to calculate annual income ($503 × 12= $6,040).
3
 Gross: usually refers to total earnings, before any deductions (such as tax withholding) including, where
applicable, overtime payments, shift differentials, production bonuses, cost-of-living allowances, commissions, etc.
https://www.bls.gov/bls/glossary.htm#earnings

                                                        Attachment I to TEGL 18-16, Change 1

   Intermittent Work Method: Use this method for individuals who have irregular income,
    or are self-employed. In circumstances where the individual does not have steady work,
    the grantee should ask the individual to supply as many pay stubs or other source
    documentation, as possible. To determine average gross wages, use the individual’s
    income from the prior month. When using the Intermittent Work Method, the grantee
    must explain missing pay stubs, non-work periods, etc. and selected method in their case
    notes. Grantees should use any information that an individual submits to calculate annual
    income.

NFJP grantees have the discretion to develop policies, outline methodologies, and select a
method that gives a result that reflects the financial circumstances of applicants at the time of
application. For example, if the Salary Method provides a more accurate reflection of an
individual’s current income, use the Salary Method to calculate annual income. If using the
Intermittent Work Method with source documentation for the prior month’s income provides
a more accurate reflection of an individual’s current income, this method may be used as a
basis for calculating annual income. ETA recommends NFJP grantees to work with their
AJC and other local or state agencies that provide income-based public assistance to learn
about other methods to calculate annual income (for example, energy assistance, medical
assistance, child care assistance, or community development block grant assistance).