This memo provides clarification regarding income for military families that are participating in the USDA Child Nutrition Programs.
Gross income including base pay, regular housing allowance (BAH, VHA, BAQ), subsistence (BAS), clothing allowance, hazardous duty, hostile fire, flight pay, incentive, etc. must be included as income on a free and reduced price meal application for military families. Also included are payments made under the U.S. Armed Forces Family Subsistence Supplemental Allowances (FSSA). See page 36-37 of the Eligibility Guidance (which can be found on the web at: http://www.fns.usda.gov/cnd/Guidance/default.htm). The only exceptions are listed below:
1. The housing allowance paid under the "Military Housing Privatization Initiative" is excluded. This is a legislative exclusion which applies to specific bases and does not apply to households living off base in the general commercial/private real estate market. The exclusion of income under the "Military Housing Privatization Initiative" will expire after September 30, 2003, unless Congress extends it.
2. During Operation Enduring Freedom, no matter where a household member is deployed and regardless of the specific military operation, only the income made available to the household is to be included as income on a free and reduced price meal application. The deployed household member is to be counted as part of the household.
3. When both parents are deployed and the children are staying with friends or relatives, the children would be counted as part of the household where they are residing. In addition, both parents would be included as members of the household and only the funds provided to the household by the deployed military parents would be included in the total household income.
4. Any payment made to a household under the Agent Orange Compensation Exclusion Act is not included as income. See Item 12 on page 38 of the Eligibility Guidance.
5. Any payments made or mandatory salary reduction related to the Veteran's Educational Assistance Act of 1964 (GI Bill) is also excluded. See Item 22 on page 38 of the Eligibility Guidance.
6. The Earned Income Tax Credit (EITC) is not included as income. This applies to military and non-military alike.
For additional information contact the Child Nutrition Office at (501) 324-9502.