State of Iowa still in process of implementing asset test provision of 2023 public assistance law

Hunter
09/02/24

The State of Iowa is still in the process of implementing a 2023 law establishing new requirements and regular checks on residents receiving public assistance benefits.

The Gazette reports officials from the Iowa Department of Health and Human Services told them some components of Senate File 494 have been implemented, including those requiring checks of sources of income from the IRS and the Social Security Administration. Other components of the bill’s requirements currently are in process and will take time to implement as they require major upgrades to state information technology systems.

A large portion of the law pertains to the implementation of a new “real-time” eligibility verification system — a list of data sources for the system to cross check, and contracting with a third-party vendor to implement the system.

The new law limits households to a maximum of $15,000 in liquid assets and personal property in order to receive Supplemental Nutrition Assistance Program (SNAP) benefits, excluding an applicant’s home, first car, retirement accounts and a second car worth up to $10,000.  Household income cannot be more than 160 percent of the federal poverty level.

While supporters say the changes will prevent fraud and abuse, detractors say the actual number of fraud cases is low, and the law could result in deserving families being denied benefits.

The law requires Health and Human Services to implement provisions of the bill incrementally, with full implementation no later than July 1, 2025.