25-08

Rule Impact Statement

To: Programs administrator

Legal Services - Policy

From: Sondra Shelby, Adult and Family Services (AFS) Director

Adult and Family Services

Date: September 15, 2025

Re: Chapter 50. Supplemental Nutrition Assistance Program (SNAP)

Subchapter 5. Non-Financial Eligibility Criteria

Part 3. Special Households

340:50-5-29 [AMENDED]

Part 9. Work Registration

340:50-5-86 [AMENDED]

Part 10. Able-bodied adults without dependents (ABAWD) work requirements

340:50-5-100 [AMENDED]

Subchapter 7. Financial Eligibility Criteria

Part 3. Income

340:50-7-22 [AMENDED]

340:50-7-29 [AMENDED]

340:50-7-31 [AMENDED]

(Reference WF 25-08)

Contact: Caleb Turner, Programs Manager V, 405-982-3685

A. Brief description of the purpose of the proposed rule:

(i) Purpose.

The proposed amendments to Chapter 50, Subchapter 5 and 7 amend the rules to comply with federal law changes.

(I) Rule classification

The proposed amendments are classified as non-major rules as they will not exceed one million dollars over the initial five-year period following the promulgation of the proposed rule. The total cost of annual implementation and compliance is estimated to be $69,320.00 which includes .5 FTE for staff training and approximately 160 hours of technical development.

(II) A determination whether the proposed rule is mandated by federal law, or as a requirement for participation in, or implementation of, a federally subsidized or assisted program.

Federal law mandated these proposed substantive amendments as a condition of Oklahoma's participation in the Supplemental Nutrition Assistance Program (SNAP). Food and Nutrition Service (FNS) published a final rule on November 18, 2024, and on December 17, 2024 (89 Fed. Reg. 91198 (Nov. 18, 2024) and 89 Fed. Reg. 102342 (Dec. 17, 2024)). Per Section 271.1(b) of Title 7 of the Code of Federal Regulations [7 C.F.R. §271.1(b)], "Part 271 contains general information, definitions, and other material applicable to all parts of this subchapter[,]" and "Part 273 describes the eligibility criteria to be applied by State agencies and related processing requirements and standards." The updated rules communicated changes to 7 C.F.R. §§ 271.2, 273.7, 273.9, 273.10, and 273.24. On July 4, 2025, the president signed Public Law (P.L.) 119-21. Sections 10102 and 10103 of P.L. 119-21 amended Sections 2014 and 2015 of Title 7 of the United States Code [7 U.S.C. §§ 2014 and 2015]. These parts of the United States Code govern SNAP eligibility.

(III) A determination whether the proposed rule exceeds the requirements of the applicable federal law.

The proposed amendments are not fully required by federal law, but Oklahoma Human Services (OKDHS) has not exceeded its legal authority.

There is one state option relevant to this rulemaking. The state may establish the actual costs of all applicable utility services per 7 C.F.R. 273.9(d)(6)(iii); establish a SUA and permit a household to submit verification of greater utility costs at initial certification, certification renewal, or when a household moves per 7 C.F.R. 273.9(d)(6)(iii)(F); or mandate the use of the SUA per 7 C.F.R. 273.9(d)(6)(iii)(G)(1).

OKDHS has previously decided to mandate the use of a standard utility allowance per 7 C.F.R. § 273.9(G)(1) and will continue to use this state option. Federal law requires all other proposed substantive amendments.

(IV) A summary and preliminary comparison of any existing or proposed federal regulations that are intended to address the activities to be regulated by the proposed rule.

Food and Nutrition Service (FNS) published a final rule on November 18, 2024, and on December 17, 2024 (89 Fed. Reg. 91198 (Nov. 18, 2024) and 89 Fed. Reg. 102342 (Dec. 17, 2024)). Per 7 C.F.R. §271.1(b), "Part 271 contains general information, definitions, and other material applicable to all parts of this subchapter[,]" and "Part 273 describes the eligibility criteria to be applied by State agencies and related processing requirements and standards." The updated rules communicated changes to 7 C.F.R. §§ 271.2, 273.7, 273.9, 273.10, and 273.24.

Per 89 Fed. Reg. 91198 (Nov. 18, 2024), the updated regulations: (1) add internet service fees as a countable excess shelter utility cost in 7 C.F.R. § 273.9(d)(6)(ii)(C); (2) award, per 7 C.F.R. § 273.9(d)(6)(iii)(D)(3), the heating and cooling standard utility allowance (HCSUA) to any household that has received an energy assistance (EA) payment, including Low Income Home Energy Assistance Program (LIHEAP) and weatherization benefits, greater than $20 annually in the last 12-calendar months; and (3) require, per 7 C.F.R. § 273.9(d)(6)(iii)(G)(2), states that mandate the use of a standard utility allowance (SUA) to award the HCSUA to residents of public housing units which have central utility meters and which charge the households only for excess heating or cooling costs.

Per 89 Fed. Reg. 102342 (Dec. 17, 2024), the updated regulations: (1) revise the "homeless individual" and "screening" definitions in 7 C.F.R. § 271.2; (2) require Oklahoma to screen for all Work Registration exemptions at initial application and certification renewal and apply the exemption that will be in effect the longest when a person qualifies for more than one exemption in 7 C.F.R. § 273.7(b)(3); (3) exempt the homeless, veteran, and former foster care children from the able-bodied adult without dependents (ABAWD) work requirement (7 C.F.R. § 273.24(c)(7), (8), and (9)); (4) per 7 C.F.R § 273.24(k), require Oklahoma to screen for all ABAWD exemptions at initial application and certification renewal, not assign a countable month unless OKDHS determines no ABAWD exemption applies, and apply the exemption that will be in effect the longest when a person qualifies for more than one exemption in 7 C.F.R. § 273.24(c); (5) clarify, per 7 C.F.R. § 273.24(k)(1), OKDHS may not assign countable months until a new screening is conducted if a household member loses an ABAWD exemption during the certification period; (6) promptly grant a household an ABAWD exemption when OKDHS receives non-questionable information that a household member is meeting an ABAWD exemption during the certification period (7 C.F.R. § 273.24(k)(2)); and (7) require OKDHS to exhaust "information available to the State" before requesting verification of an ABAWD exemption.

On July 4, 2025, the president signed P.L. 119-1 and amended the federal law governing SNAP. The new law: (1) eliminates the homeless, veteran, and former foster care children ABAWD exemptions; (2) subjects persons up to age 65 to the ABAWD work requirement; (3) allows an ABAWD exemption when a household member meets a Work Registration exemption per 7 U.S.C. 2015(d)(2); (4) amends how old a child may be to confer an ABAWD exemption for a parent or a responsible household member from 18 years of age to 14 years of age; (5) adds ABAWD exemptions per 25 U.S.C. § 1603(13) and (28) and per 25 U.S.C. § 1679(a); (6) requires that only households with an elderly or disabled member receive the SUA due to an EA payment; (7) requires OKDHS not include internet expenses when calculating an SUA or determining the excess shelter deduction; (8) exempt a payment under state law to provide energy assistance from countable income only when an household includes an elderly or disabled person; and (9) allow energy expenses covered by a payment under state law to provide energy assistance to be a countable deductible expense only for a household that include an elderly or disabled person.

Federal law includes utility costs as an "allowable shelter expense." Per 7 C.F.R. § 273.9(d)(6)(ii)(C):

The cost of fuel for heating; cooling (i.e., the operation of air conditioning systems or room air conditioners); electricity or fuel used for purposes other than heating or cooling; water; sewerage; well installation and maintenance; septic tank system installation and maintenance; garbage and trash collection; all service fees required to provide service for one telephone, including, but not limited to, basic service fees, wire maintenance fees, subscriber line charges, relay center surcharges, 911 fees, and taxes.

The state may establish the actual costs of all applicable utility services per 7 C.F.R. 273.9(d)(6)(iii), establish a SUA and permit a household to submit verification of greater utility costs at initial certification, certification renewal, or when a household moves per 7 C.F.R. 273.9(d)(6)(iii)(F), or mandate the use of the per 7 C.F.R. 273.9(d)(6)(iii)(G)(1). Per 7 C.F.R. § 273.9(d)(6)(iii)(B) and (C), the state must seek the FNS approval of its SUA "at least every five years" and review its SUA annually to account for cost changes.

(ii). Strategic Plan Impact.

The proposed amendments achieve OKDHS goals by communicating updated eligibility information to applicants, recipients, and OKDHS staff; ensuring effective and efficient program administration; complying with federal law; and exercising available state options to simplify program administration.

(iii). Substantive changes.

Subchapter 5. Non-Financial Eligibility Criteria

Part 3. Special Households

Oklahoma Administrative Code (OAC) 340:50-5-29 is amended to: (1) update the definition of a "homeless person" per 7 C.F.R. § 271.2; (2) reorganize the section; and (3) remove information duplicated in OAC 340:50-7-31.

Part 9. Work Registration

OAC 340:50-5-86 is amended to: (1) indicate OKDHS applies the work registration exemption that will be in effect the longest when a household member qualifies for more than one exemption; (2) clarify what verification OKDHS accepts to verify an unemployment compensation applicant or recipient; and (3) update language.

Part 10. Able-bodied adults without dependents

OAC 340:50-5-100 is amended to: (1) reorganize the section; (2) update language; (3) add a "screening" definition per 7 C.F.R. § 271.2; (4) require screening at initial certification and certification renewal; (5) prohibt the assignment of a countable month unless OKDHS has screened a household member; (6) indicate OKDHS applies the ABAWD exemption that will be in effect the longest when a household member qualifies for more than one ABAWD exemption; (7) clarify that the month an Oklahoma SNAP Works worker provider notifies OKDHS that a participant is ill-suited for a component is not a countable month; (8) clarify, per 7 C.F.R. § 273.24(k)(1), OKDHS may not assign countable months until a new screening is conducted if a household member loses an ABAWD exemption during the certification period; (9) remove worker responsibilities from the rule text to Instructions to Staff; (10) update citations; (11) require household members to be 65 years of age or older to qualify for an ABAWD exemption; (12) remove the ABAWD exemptions for veterans, homeless persons, and former foster care children; (13) allow an ABAWD exemption when a parent or a household member is responsible for a child under 14 years of age; and (14) add ABAWD exemptions per 25 U.S.C. § 1603(13) and (28) and per 25 U.S.C. § 1679(a).

Subchapter 7. Financial Eligibility Criteria

OAC 340:50-7-22 is amended to: (1) correct citations; (2) update language; and (3) add an income exemption for state law energy assistance payments to households with elderly or disabled members per 7 U.S.C. § 2014(k)(4).

OAC 340:50-7-29 is amended to: (1) update language; (2) correct a citation; and (3) indicate that payments under state law for energy assistance are countable income unless there is an elderly or disabled person is in the household.

OAC 340:50-7-31 is amended to: (1) correct a citiation; (2) update language; (3) update the agency and acronym from "Oklahoma Department of Human Services" and "DHS" to "Oklahoma Human Services" and "OKDHS"; (3) include condo and association fees as an allowable rent or mortgage cost; (4) allow households who have an elderly or disability household member and qualify for LIHEAP, weatherization, or similar EA benefit to claim the standard utility allowance; and (5) prevent a household from claiming utility expenses paid through a energy assistance program authorized per state law unless there is elderly or disabled household member in the household.

(iv). Reasons.

OKDHS SNAP requests emergency rulemaking to comply with deadlines in amendments to an agency's governing law and avoid violating federal law and regulations. FNS published a final rule on November 18, 2024, and on December 17, 2024 (89 Fed. Reg. 91198 (Nov. 18, 2024) and 89 Fed. Reg. 102342 (Dec. 17, 2024)). The SUA changes are effective October 1, 2025, and the remaining changes were effective January 2025. On July 4, 2025, the president signed P.L. 119-21. Sections 10102 and 10103 of P.L. 119-21 amended Sections 2014 and 2015 of 7 U.S.C. §§ 2014 and 2015 and revised the previously submitted federal rulemaking.

In this rulemaking, OKDHS continues to use and mandate SUAs to establish the utility costs for SNAP households. OKDHS uses data from the Oklahoma Housing Authority to establish the costs a household may face and submits the updated amounts to FNS annually for approval. OKDHS previously elected to mandate SUAs for all utility costs to simplify program administration, reduce household verification, and improve quality.

(v). Repercussions.

If the proposed amendments are not implemented, (1) OKDHS rules will conflict with federal law; and (2) the state's error rate could be impacted.

(vi). Legal authority.

Director of Human Services; Section 162 of Title 56 of the Oklahoma Statutes [56 O.S. § 162]; 7 U.S.C. §§ 2014-2015; P.L. 119-21; 7 C.F.R. §§ 271.2, 273.7, 273.9, 273.10, 273.12, and 273.24

(vii). Emergency rulemaking approval is requested.

B. A comprehensive analysis of the rule's economic impact on the Agency, including but not limited to, full-time employee count and any costs or benefits. The analysis includes a detailed explanation of the methodology and assumptions used to determine the economic impact, including, whenever possible, the dollar amounts calculated. OKDHS does not anticipate any agency costs or benefits associated with screening for ABAWD or Work Registration exemptions at application and certification renewal, nor with implementing the new screening requirements.

OKDHS anticipates 529.5 staff hours to train its SNAP eligibility staff and 20 hours for program staff to develop training materials. This equates to .5 FTE. The average salary for this type of work is approximately $60,000/year plus benefits (estimated at 50% of salary). The total cost estimate for the training work is $45,000.

OKDHS does not anticipate an increase in its full-time employee count to comply with the new SUA requirements. Per 7 C.F.R. § 273.9(d)(6)(iii)(B) and (C), OKDHS must seek the FNS approval of its SUA "at least every five years" and review its SUA annually to account for cost changes. Per 89 Fed. Reg. 91216 (Nov. 18, 2024), FNS anticipates these activities require 40 staff hours every five years and 20 hours annually. OKDHS will meet this burden with existing program staff.

OKDHS must make system changes to update its technology to comply with P.L. 119-21. OKDHS anticipates at least 160 hours of technical programming to update the system. The average cost per hour for this type of work is $152.00/hr for total of $24,320.00.

C. A comprehensive analysis of the rule's economic impact outside the Agency, including a detailed quantification of implementation and compliance costs on the affected businesses, business sectors, public utility ratepayers, individuals, state or local government units, and on the state economy. The analysis includes a detailed explanation of the methodology and assumptions used to determine the economic impact, including, whenever possible, the dollar amounts calculated, as well as a list of fee changes with a separate justification for each fee change: There are potential impacts on SNAP beneficiaries due to changes in federal law.

OKDHS cannot determine if a person will lose eligibility due to an ABAWD exemption change. Agency staff must re-screen the affected household members for eligibility at the next certification or certification renewal to determine eligibility. The following SNAP beneficiaries may be affected. P.L. 119-21 eliminates the homeless, veteran, and former foster care children ABAWD exemptions. There are 31,464, 1,681, and 72 Oklahomans currently using these exemptions. The new law also requires household members to be 65 years of age or older to qualify for an ABAWD exemption. There are 12,624 currently SNAP recipients who were exempt from the ABAWD rules who may be affected by this change. The law also modified the caretaker exemption to allow the parent or responsible household member to be ABAWD exempt when a child is under 14 years of age. The exemption previously allowed the caretaker exemption when the child was under 18 years of age. There are 12,697 Oklahoma SNAP recipients who may be affected. The law also granted an exemption per 25 U.S.C. § 1603(13) and (28) and per 25 U.S.C. § 1679(a). There are 2,774 current beneficiaries who may gain a SNAP exemption.

The federal law grants the SUA to households that include an elderly or disabled member who received certain energy assistance in the past 12 months. OKDHS projects that granting the SUA to households with an elderly or disabled member may allow 2,425 current beneficiaries to qualify for the SUA.

D. A description of the classes of persons who most likely will be affected by the proposed rule, including classes that will bear the costs of the proposed rule, and any information on cost impacts received by the Agency from any private or public entities: The class of persons most likely to be affected by the proposed amendments are OKDHS staff, contracted provider staff, SNAP applicants, and SNAP recipients.

E. A description of the classes of persons who will benefit from the proposed rule: The classes of persons who will benefit are OKDHS staff, contracted provider staff, SNAP applicants, and SNAP recipients.

F. A description of the probable economic impact of the proposed rule upon the affected classes of persons or political subdivisions, including a listing of all fee changes and, whenever possible, a separate justification for each fee change: There are no fees associated with this rulemaking.

G. A determination whether implementation of the proposed rule will have an impact on any political subdivisions or require their cooperation in implementing or enforcing the rule: The proposed amendments neither have an economic impact on any political subdivision nor require the cooperation of any political subdivisions in implementation or enforcement of the rules.

H. A determination whether implementation of the proposed rule will have an adverse economic effect on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act: There are no anticipated adverse effects on small businesses as provided by the Oklahoma Small Business Regulatory Flexibility Act.

I. A description of any measure taken by the Agency to minimize the cost and impact of the proposed rule on business and economic development in this state, local government units of this state, and individuals: There are no alternatives to implementing the changes required by federal law.

J. A determination of the effect of the proposed rule on the public health, safety, and environment and, if the proposed rule is designed to reduce significant risks to the public health, safety, and environment, an explanation of the nature of the risk and to what extent the proposed rule will reduce the risk: OKDHS does not anticipate the rules to reduce significant risks to the public health, safety, and environment.

K. A determination of any detrimental effect on the public health, safety, and environment if the proposed rule is not implemented: If the proposed amendments are not implemented, there are no expected detrimental effects on public health, safety, and environment.

L. An analysis of alternatives to adopting the rule: Per 89 Fed. Reg. 91226 (Nov. 18, 2024), 48 states have mandated the use of a SUA. OKDHS has previously elected to mandate the SUA and is not revisiting that decision through this rulemaking. OKDHS believes using the actual costs would create more opportunities for quality control errors because staff would have to manually determine the actual cost amount.

M. Estimates of the amount of time that would be spent by state employees to develop the rule and of the amount of other resources that would be utilized to develop the rule: Following final adoption of the rule, OKDHS anticipates 529.5 staff hours to train its SNAP eligibility staff and 20 hours for program staff to develop training materials.

N. The date the rule impact statement was prepared and, if modified, the date modified: Prepared May 9, 2025; modified September 15, 2025.

Last Modified on Dec 30, 2025