Food Stamp ProgramDistribution of Employment and Training Performance-Based Funds

State welfare agencies are responsible for administering the Food Stamp Program and are required to operate the Food Stamp Employment and Training (E&T) program. To assist in the operation of their E&T programs, the State agencies receive a Federal E&T grant, a portion of which is distributed on the basis of each State agency's performance in serving the targeted mandatory population. This final rule amends Food Stamp Program regulations as a result of the Food, Agriculture, Conservation, and Trade Act Amendments of 1991, enacted December 13, 1991 (FACT Act). The FACT Act reduces the annual performance standard for State agencies from 50 percent to no more than 10 percent in FYs 1992 and 1993 and no more than 15 percent in FYs 1994 and 1995. This final rule freezes the performance-based E&T grants at the level the State agencies received in Federal Fiscal Year 1993, for two years from the fiscal year in which this final rule is promulgated. The Department is taking this action in order to enable State agencies to exercise their option to serve fewer people, as provided by the FACT Act without reduction of performance-based E&T funds. This final rule supports efforts to target the E&T program toward more intensive components for a smaller segment of the targeted mandatory population. However, State agencies are not required to implement a more intensive E&T program and may continue to operate broad-based programs.