USDA is advising recipients of the Discrimination Financial Assistance Program (DFAP) payments issued in late July and early August that they may need to report those to remain eligible for benefits from other government programs.

Because the payments are taxable, they must be included in the recipient’s 2024 tax return. But they should also be reported as quickly as possible to their Medicaid, Supplemental Nutrition Assistance Program, Supplemental Security Income or other applicable offices, officials said.

“The decisions you need to make about benefits may be time sensitive,” said Monica Rainge, USDA’s deputy assistant secretary for civil rights who oversaw the DFAP payments. “Unlike taxes where you may have until the end of the year to make decisions, some of these benefit decisions must be made right away.”

Rainge served as moderator for a Zoom conference call organized by the National Black Farmers Association on Sept. 17. The call was aimed at Mississippi DFAP recipients but was attended by persons from other states. Another call is being organized for Alabama DFAP recipients.

Mississippi farmers, ranchers and forest landowners or persons who attempted to apply for loans received 13,283 of the 43,000 payments USDA issued to individuals who experienced discrimination in USDA’s farm lending programs prior to 2021. Alabama received the second highest total of 10,907 payments.

Related:DFAP is closed, will not reopen, USDA says

Consult a professional

Rainge said DFAP payment recipients who also are eligible for public benefit programs “should be consulting professionals, attorneys or professional advocates who can assist you with helping to make decisions about how your DFAP award may impact your public benefits.

“Everyone's situation is different,” she noted. “So, it is important that you take the information you receive tonight and discuss these matters with an attorney or an advocate.”

Among the programs that could be affected by the DFAP payments are Medicaid, the Supplemental Nutrition Assistance Program, Supplemental Security Income and Social Security Disability payments, VA benefits and Section 8 housing subsidies. Social Security retirement benefits are not affected.

“Basically, anything that is needs based, that you had to provide them with income and resources to determine your eligibility, this award will affect those benefits,” said Carshena L. Bailey, managing attorney for the Mississippi Center for Legal Services, and a panelist on the call. “It will affect SNAP benefits, for example. This one-time (DFAP) payment is never considered income, but it is considered a resource for SNAP. As long as you have money in the bank from it, it is a resource. You can’t wait until recertification time. You need to go ahead and report it.”

Related:USDA makes DFAP payments to 37,647 producers in the South

Needs based

If recipients are over the resource base because of the DFAP payment, SNAP administrators can reduce the benefits. “You won’t later have an issue with overpaying or being taken off the program because you didn’t report resources or income,” said Bailey. “That’s going to be the same for any Supplemental Security Income benefits you receive because it is needs based.”

Sarah Somers, legal director of the National Health Law Program, also spoke during the conference call about Medicaid benefits and introduced Bailey.

“USDA reached out to us because we have been working on Medicaid issues literally for decades, and we have partners in legal services and disability rights attorneys around the country, including Mississippi,” Somers said. “We branched out with the National Legal Aid and Defender Association to help explain how it affects SNAP eligibility or SSI payment eligibility, and we rolled in some other benefits as well. (Visit https://www.nlada.org/usda-dfap/award-recipients to see more information.)

“This is a compilation of information generally about DFAP payments and public benefits,” Somers said, referring to the link. “This gives you background information and has frequently asked questions about Medicaid, SNAP, SSI. There are links to almost all of the states, including Mississippi.”

Eligibility rules

The site also has a pop-up window with a four-page explanation for the eligibility rules for Medicaid and other benefit programs. Persons with more questions can also call the DFAP Call Center at 1-800-721-0970.

Bailey said SNAP benefit resources are limited in the state of Mississippi. “To receive SNAP benefits, you can have no more than $2,750 in resources for most households. There are some exceptions. If a person who is disabled or over the age of 60 lives in the home, that amount goes up to $4,250.”

For Medicaid, the one-time DFAP payment is considered income. “As long as you have the money in the bank, you may have to report that amount to Medicaid every month,” said Bailey. “Housing and Urban Development programs are also need based. Usually, their resource amounts are relatively high, but you should report it so they can calculate any changes that are necessary.”

If recipients have specific questions, they can contact Mississippi Center for Legal Services or North Mississippi Rural Legal Services. The toll-free number is the same for both agencies: 1 800 498-1804.

The panelists also discussed the differences in Social Security retirement income, Social Security Disability and Supplemental Security Income or SSI.

“If you’re drawing disability income from Social Security and you worked and paid in that is Social Security Disability Income,” said Kara Boyd with the National Black Farmers Association. “If you haven’t worked or didn’t pay in enough, that’s Supplemental Security Income Social Security Disability Income or SSISSDI, and that is the part that is affected by your resources and income.”

“Supplemental Security Income is also what children receive,” said Bailey. “If you have a child in the household receiving SSI, you need to report that as well.”