Notice2025-12691
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA); Interpretation of “Federal Public Benefit”
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Published
July 10, 2025
Issuing agencies
Agriculture Department
Abstract
This notice sets forth the interpretation that the U.S. Department of Agriculture (USDA) uses for the term "Federal public benefit" as used in Title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 104-193, 8 U.S.C. 1611. In doing so, this notice supersedes any prior interpretation in any notice or other document issued by any USDA agency. This notice also describes and preliminarily identifies the USDA programs that provide "Federal public benefits" within the scope of PRWORA.
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<title>Federal Register, Volume 90 Issue 130 (Thursday, July 10, 2025)</title>
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[Federal Register Volume 90, Number 130 (Thursday, July 10, 2025)]
[Notices]
[Pages 30621-30624]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-12691]
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Federal Register / Vol. 90, No. 130 / Thursday, July 10, 2025 /
Notices
[[Page 30621]]
DEPARTMENT OF AGRICULTURE
Personal Responsibility and Work Opportunity Reconciliation Act
of 1996 (PRWORA); Interpretation of ``Federal Public Benefit''
AGENCY: Office of the General Counsel, Department of Agriculture.
ACTION: Notice.
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SUMMARY: This notice sets forth the interpretation that the U.S.
Department of Agriculture (USDA) uses for the term ``Federal public
benefit'' as used in Title IV of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 104-193, 8
U.S.C. 1611. In doing so, this notice supersedes any prior
interpretation in any notice or other document issued by any USDA
agency. This notice also describes and preliminarily identifies the
USDA programs that provide ``Federal public benefits'' within the scope
of PRWORA.
FOR FURTHER INFORMATION CONTACT: Mr. Michael Poe, Office of the General
Counsel, USDA, 1400 Independence Avenue SW, Washington, DC 20250-1400,
(202) 769-8247.
SUPPLEMENTARY INFORMATION:
I. Background
According to Section 401 of PRWORA, 8 U.S.C. 1611(a), aliens who
are not ``qualified aliens'' are not eligible for any ``Federal public
benefit'' as defined in 8 U.S.C. 1611(c). The prohibition set forth in
Sec. 1611(a) is subject to certain exceptions set forth in Sec.
1611(b). The application of Sec. 1611(a) and exceptions contained in
Sec. 1611(b) are conceptually distinct from the meaning of ``Federal
public benefit'' and is not addressed in this Notice.
The statutory text, Sec. 1611(c), defines ``Federal public
benefit'' as ``(A) any grant, contract, loan, professional license, or
commercial license provided by an agency of the United States or by
appropriated funds of the United States'' and ``(B) any retirement,
welfare, health, disability, public or assisted housing, postsecondary
education, food assistance, unemployment benefit, or any other similar
benefit for which payments or assistance are provided to an individual,
household, or family eligibility unit by an agency of the United States
or by appropriated funds of the United States.'' 8 U.S.C. 1611(c)(1).
This definition, too, is subject to certain exceptions. See id. (c)(2)
(setting forth certain exceptions to the definition of ``Federal public
benefit'').
In addition, under Section 432 of PRWORA, as amended, to the extent
required by law, providers of a nonexempt ``Federal public benefit''
must verify that a person applying for the benefit is a qualified alien
and is eligible to receive the benefit. 8 U.S.C. 1642. While the
verification requirement is necessary to proper enforcement of PRWORA,
it is conceptually distinct from the meaning of the term ``Federal
public benefit'' and this Notice is not intended to address application
of such requirement. Neither does this Notice speak to ``Federal public
benefits'' that may be subject to other statutory authority besides
PRWORA regarding citizenship and alien eligibility.
II. Interpretation
Statutory construction `` `must begin, and often should end as
well, with the language of the statute itself.' '' United States v.
Steele, 147 F.3d 1316, 1318 (11th Cir. 1998) (quoting Merritt v.
Dillard, 120 F.3d 1181, 1185 (11th Cir. 1997). ``The plain meaning
controls.'' United States v. Robinson, 94 F.3d 1325, 1328 (9th Cir.
1996) (citation omitted). The statutory language is clear: if a USDA
program falls into either Sec. 1611(c)(1)(A) or (c)(1)(B), such
benefits are not available to individuals who are aliens, unless (i)
that individual is a qualified alien, or (ii) some other exception
applies to the USDA program, either under Sec. 1611(b) or via the
definitional limits on ``Federal public benefit'' set forth in (c)(2).
Thus, the task is simple: construe the plain language of (c)(1)(A) and
(c)(1)(B). Those provisions state that ``Federal public benefit''
means:
(A) any grant, contract, loan, professional license, or
commercial license provided by an agency of the United States or by
appropriated funds of the United States; and
(B) any retirement, welfare, health, disability, public or
assisted housing, postsecondary education, food assistance,
unemployment benefit, or any other similar benefit for which
payments or assistance are provided to an individual, household, or
family eligibility unit by an agency of the United States or by
appropriated funds of the United States.
If USDA ``provide[s]'' the (i) ``grant, contract, loan,
professional license, or commercial license,'' or if the ``grant,
contract, loan, professional license, or commercial license'' is
``provided by'' ``appropriated funds of the United States,'' then such
item is a ``Federal public benefit.'' Similarly, if USDA ``provide[s]''
the ``retirement, welfare, health, disability, public or assisted
housing, postsecondary education, food assistance, unemployment
benefit, or any other similar benefit,'' or such ``benefit'' is
``provided by'' ``appropriated funds of the United States,'' then such
benefit is a ``Federal public benefit,'' as long as the benefit is
``provided to'' one of three types of recipients: (i) ``an
individual,'' (ii) a ``household,'' or (iii) a ``family eligibility
unit.''
1. Grant
Section 1611(c)(1)(A) reaches ``any grant, contract, loan,
professional license, or commercial license'' provided by USDA. For
purposes of PRWORA, a grant means the award of funding for an
individual or entity to carry out specified activities without the
direct involvement of USDA. USDA administers a multitude of grant
programs, including those in which the grants go to institutions,
States, local governments, private entities and private organizations.
Sometimes the activity supported by the grant is carried out by the
``recipient''; sometimes the recipient issues a subgrant to an
individual or entity. For PRWORA purposes, the term ``grant'' includes
any ``subgrant'' derivative of a grant.
2. Contract
Many USDA programs and activities are carried out by the use of
contracts. For example, contracts are used by the Farm Service Agency
to provide assistance to agricultural producers in the form of income
support payments and by the Forest Service in conducting forest
management activities to reduce
[[Page 30622]]
the risk of wildfires. USDA also provides assistance and benefits to
individuals and entities through the use of several different types of
instruments including loan guarantees (e.g., programs of the Rural
Development agencies), reinsurance agreements (core operations of the
Risk Management Agency), cooperative agreements (agreements used by
numerous USDA agencies when the agency is working with another party to
accomplish a public purpose authorized by law) and ``export credit
guarantees'' (financial assurances made available through programs
administered by the Foreign Agricultural Service). In the context of
PRWORA, all instruments that are contractual in nature that are used by
USDA agencies are considered to be contracts.
With respect to any contract, professional license, or commercial
license, PRWORA excludes from the definition of ``Federal public
benefit'' ``any contract, professional license or commercial license
for a nonimmigrant whose visa for entry is related to such employment
in the United States, or to a citizen of a freely associated state, if
section 141 of the applicable compact of free association approved in
Public Law 99-239 or 99-658 (or a successor provision) is in effect.''
See 8 U.S.C. 1611(c)(2)(A).
3. Loan
The majority of loans made by USDA agencies are ``recourse'' loans
meaning the borrower is responsible for repayment of the full amount of
the accumulated principal and interest that has accumulated; in the
event the loan collateral is forfeited, the borrower remains
responsible for any difference between the value of the collateral and
the amount of the outstanding loan balance (principal plus interest).
Many loans made by the Commodity Credit Corporation (CCC), an agency
and instrumentality of the United States within USDA, are
``nonrecourse'' loans meaning that a borrower may forfeit the loan
collateral to CCC in full satisfaction of the loan. In the context of
PRWORA, both recourse and nonrecourse loans are considered to be loans.
4. Commercial License
As in the case of contracts, various types of legal documents are
considered by USDA to be a ``commercial license'' for PRWORA purposes.
For example, 7 CFR 6.20(b) provides: ``Effective January 1, 1995, the
prior regime of absolute quotas for certain dairy products was replaced
by a system of tariff-rate quotas. The articles subject to licensing
under the tariff-rate quotas are listed in Appendices 1, 2, and 3 to be
published annually in a notice in the Federal Register. Licenses permit
the holder to import specified quantities of the subject articles into
the United States at the applicable in-quota rate of duty. If an
importer has no license for an article subject to licensing, such
importer will, with certain exceptions, be required to pay the
applicable over-quota rate of duty.'' The United States Warehouse Act
establishes a voluntary system under which parties that store
agricultural commodities may obtain a license from USDA in lieu of
obtaining licenses from States. These, and similar licenses are
``commercial licenses'' for PRWORA purposes. The Forest Service issues
a variety of permits (i.e., ``special use permits'' issued under 36 CFR
251) that allow individuals and private entities the privilege of
conducting activities on land administered by the Forest Service. These
activities include non-commercial and commercial activities. If USDA
issues a special permit that allows the holder of the permit to engage
in a commercial activity, such permit is a ``commercial license'' for
PRWORA purposes.
5. PRWORA Provisions Applicable to the Food and Nutrition Service (FNS)
As previously discussed, the application of Sec. 1611(a) is
conceptually distinct from the definition of a ``Federal public
benefit'' under Sec. 1611(c). Nonetheless, to avoid confusion the
application of 8 U.S.C. 1615 to certain FNS programs is briefly
discussed. Section 1615(a) provides:
Notwithstanding any other provision of [PRWORA], an individual
who is eligible to receive free public education benefits under
State or local law shall not be ineligible to receive benefits
provided under the school lunch program under the Richard B. Russell
National School Lunch Act (42 U.S.C. 1751, et seq.) or the school
breakfast program under section 4 of the Child Nutrition Act of 1966
(42 U.S.C. 1773) on the basis of citizenship, alienage, or
immigration status.
Further, Sec. 1615(b) provides:
Nothing in [PRWORA] shall prohibit or require a State to provide
to an individual who is not a citizen or a qualified alien, as
defined in section 1641(b) of [Title 8], benefits under programs
established under the provisions of law described in paragraph (2).
In particular, the statutory provisions in paragraph (2) are ``(A)
Programs (other than the school lunch program and the school breakfast
program) under the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.) and the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.)[;] (B) Section 4 of the Agriculture and Consumer
Protection Act of 1973 (7 U.S.C. 612c note)[;] (C) The Emergency Food
Assistance Act of 1983[;] [and] (D) The food distribution program on
Indian reservations established under section 2013(b) of Title 7.''
Although they each fall within the meaning of ``Federal public
benefit'' under Sec. 1611(c), FNS continues to administer the
following programs in accordance with the superseding provisions of
Sec. 1615:
Food Distribution Program on Indian Reservations (FDPIR).
The Emergency Food Assistance Program (TEFAP).
Commodity Supplemental Food Program (CSFP).
Special Supplemental Nutrition Program for Women, Infants, and
Children (WIC).
WIC Farmers' Market Nutrition Programs.
Senior Farmers' Market Nutrition Programs.
National School Lunch Program.
School Breakfast Program.
Child and Adult Care Food Program.
Fresh Fruit and Vegetable Program.
Special Milk Program.
Summer Food Service Program.
Summer EBT.
USDA Food and Nutrition Service Disaster Assistance. (FNS does not
administer a distinct disaster assistance program but utilizes various
flexibilities, waivers, and options within the nutrition programs to
provide assistance. Therefore, 8 U.S.C. 1615 would continue to apply
where relevant).
III. USDA Programs
Activities of All Agencies Except FNS
The majority of the regulations of USDA programs and activities are
set forth in Title 7 of the Code of Federal Regulations. Regulations of
the Forest Service are set forth in Chapter II of Title 36 of the Code
of Federal Regulations. Regulations of the Food Safety Inspection
Service and certain activities of the Agricultural Marketing Service
and the Animal and Plant Health
Inspection Service are set forth in Title 9 of the Code of Federal
Regulations. USDA has not previously considered many USDA programs and
activities to provide ``Federal public benefits''; however, after a
focused review of these programs, USDA has concluded that many such
programs and activities clearly fall within the PRWORA definition of
``Federal public benefits''.
The major USDA programs and activities that provide ``Federal
public benefits'' generally fall into these categories:
[[Page 30623]]
Payments and loans made by CCC to support agricultural producers'
income and to support market prices of agricultural commodities
Grants and payment guarantees by CCC for the development of foreign
markets
Farm operating and farm purchase loans under programs administered
by the Farm Service Agency (FSA) and Rural Development
Rural Development loans, loan guarantees and grants to enhance
living conditions in communities across rural America including
loans for business and industry development, sewer and water
projects, single and multi-family housing construction, and rural
telecommunication projects
Grants made by the National Institute of Food and Agriculture to
develop, improve, and protect agricultural commodities and livestock
Grants and contracts used to protect National Forest System (NFS)
lands under the management of the Forest Service and lands that are
devoted to private forestry and receive assistance from the Forest
Service and permits issued by the Forest Service for activities on
NFS lands such as mining, timber harvesting and grazing
Grants and contracts used by the Natural Resources Conservation
Service (NRCS) and the Commodity Credit Corporation (CCC) to provide
assistance to farmers and ranchers to protect soil and water
resources on their farms and ranches
Specific programs and activities include: Licenses issued by the
Secretary of Agriculture under 7 CFR part 6 to allow duty-free
importation of certain dairy products otherwise subject to tariffs
Payments for the procurement of commodities, payments to producers
of commodities, and issuance of licenses (excluding inspections of
commodities) under 7 CFR parts 27 through 205 by AMS
Activities of the Risk Management Agency relating to the
administration of crop insurance and re-insurance (excluding
disaster payments made to producers for crop losses) under 7 CFR
parts 400 through 460
Activities of NRCS to provide financial assistance for the
protection of soil and water resources on farmland, private forest
land, and ranchland under 7 CFR parts 600 through 699
Activities of FSA to provide financial assistance for the protection
of soil and water resources on farmland, private forest land, and
ranchland; and loans for the purchase and operation of farming,
ranching, and other agricultural operations under 7 CFR parts 700
through 799 (excluding disaster payments made to producers for crop
losses)
Activities of AMS under 7 CFR parts 800 through 870 that provide
licenses to store agricultural commodities and that provide grants
to domestic textile mills
Activities of CCC under 7 CFR parts 1400 through 1450 that provide
income support and price support benefits to producers of
agricultural producers (excluding disaster payments made to
producers for crop losses)
Activities of CCC to provide financial assistance for the protection
of soil and water resources on farmland, private forest land, and
ranchland under 7 CFR parts 1455 through 1470 and Part 1491
Grants and payment guarantees made by CCC for the development of
domestic and foreign markets under 7 CFR parts 17, 1484 through
1489, 1493, 1499, and 1570 through 1599
Grants, loans, and loan guarantees made by RD agencies for
development of rural communities, and rural businesses and industry
under CFR parts 1700 through 2045, 3350 through 3570, and 4200
through 5001
Grants made by agencies in the Research, Education and Economics
mission area of USDA relating to all aspects of agricultural
research including improvements in the quality of commodities and
animals, disease prevention, enhanced crop production practices, and
food safety under 7 CFR parts 3400 through 3431
Any grant, contract, loan, or commercial license (including any
special use permit) issued by the Forest Service under 36 CFR parts
212 through 296 that relate to use of any portion of a National
Forest including mining, timber harvesting and grazing; and any
contract with the Forest Service to perform any land management
function such as timber thinning, road and trail maintenance, and
campground concessions
Licenses and registrations issued the Agricultural Plant and Health
Inspection Service (APHIS) relating to the exhibition and sale of
certain animals under 9 CFR part 2
Licenses issued by APHIS relating to persons authorized to handle
biological agents used to produce veterinary biological products,
and licenses to import such products under 9 CFR part 102
Licenses for the transfer and use of biological agents and toxins
issued by APHIS under 7 CFR part 331 and 9 CFR part 121
Programs and Activities of FNS
Federal Public Benefit Under the Meaning of Sec. 1611(c)(1)(A)
FNS administers a variety of grants, cooperative agreements, and
contracts. FNS grants primarily fall into two categories--discretionary
grants and mandatory grants. FNS Standard Operating Procedure (SOP)
refer to cooperative agreements and grants under the term ``grants.''
Authority to enter into contracts, grants, and cooperative agreements
in accordance with section 1472 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977, is delegated to the Under
Secretary for Food, Nutrition, and Consumer Services pursuant to 7 CFR
2.19. Other legal statutory authorities for such instruments include
the Food and Nutrition Act of 2008, as amended, the Richard B. Russell
National School Lunch Act, as amended, the Child Nutrition Act of 1966,
as amended, and annual appropriations legislation.
Section 1611(c)(1)(A) applies to ``any'' of the instruments listed.
The term ``any'' is all encompassing. Unlike its neighboring provision,
subparagraph (B), Sec. 1611(c)(1)(A) is void of limiting language
based on characteristics of the recipient(s) of the benefit or other
factors if the contract, grant, loan, professional license, or
commercial license is ``provided by an agency of the United States or
by appropriated funds of the United States.'' Congress explicitly
provided specific exceptions for contracts, professional licenses, and
commercial licenses at 8 U.S.C. 1611(c)(2) and the absence of other
qualifications on instruments listed at Sec. 1611(c)(1)(A) indicates
there are no others. Therefore, FNS interprets Sec. 1611(c)(1)(A) that
every grant, contract, loan, commercial license, and professional
license, of any kind or nature whatsoever regardless of its authorizing
statute or regulation provided by FNS or appropriated funds of the
United States is a ``Federal public benefit'' without exception other
than those contained at Sec. 1611(c)(2).
The statutory language at Sec. 1611(c)(1)(A) reaches all
instruments listed if ``provided by an agency of the United States or
by appropriated funds of the United States.'' Therefore, FNS considers
a sub-grant and a sub-contract made from a prime grant or prime
contract provided by FNS or appropriated federal funds to be a
``Federal public benefit.'' Accordingly, the ultimate beneficiaries to
whom federal funds flow from a contract or grant provided by FNS or
appropriated funds of the United States are recipients of a ``Federal
public benefit.'' For example, if a food bank receives a grant which is
used to purchase food for distribution, the individual who receives the
food assistance has received a ``Federal public benefit.''
As stated above, the applicability of other provisions of PRWORA is
conceptually distinct from the question of what the term ``Federal
public benefit'' means, and this Notice does not intend to address that
question except to the extent of the brief discussion concerning Sec.
1615 above.
FNS issues commercial licenses by authorizing retailers to accept
Supplemental Nutrition Assistance Program (SNAP) benefits pursuant to 7
CFR 278.1 and 7 U.S.C. 2018. Applicants are required to submit an
application that FNS must approve. Only if authorized, may a retailer
engage in the commercial activity of accepting SNAP benefits as payment
for certain commercial goods. Therefore, FNS
[[Page 30624]]
interprets ``Federal public benefit'' to include a retailer
authorization to participate in SNAP because such authorization is in
the form of a commercial license.
FNS administers 16 food and nutrition programs under a variety of
statutes like the Food and Nutrition Act of 2008, Richard B. Russell
National School Lunch Act, Child Nutrition Act of 1966, Agriculture and
Consumer Protection Act of 1973, Emergency Food Assistance Act of 1983,
and 7 U.S.C. 2013(b) (i.e., Food Distribution Program on Indian
Reservations). All food and nutrition programs meet the definition of
``Federal public benefit'' pursuant to Sec. 1611(c)(1)(B). The 16
programs are as follows:
The Supplemental Nutrition Assistance Program (SNAP).
Nutrition Assistance Program for Territories.
Food Distribution Program on Indian Reservations (FDPIR).
The Emergency Food Assistance Program (TEFAP).
Commodity Supplemental Food Program (CSFP).
Special Supplemental Nutrition Program for Women, Infants, and
Children (WIC).
WIC Farmers' Market Nutrition Programs.
Senior Farmers' Market Nutrition Programs.
National School Lunch Program.
School Breakfast Program.
Child and Adult Care Food Program.
Fresh Fruit and Vegetable Program.
Special Milk Program.
Summer Food Service Program.
Summer EBT.
Disaster Assistance.
In particular, these are benefits ``provided to an individual,
household, or family eligibility unit by an agency of the United States
or by appropriated funds of the United States.'' As discussed earlier,
some of the above programs are administered pursuant to 8 U.S.C. 1615
even though they are ``Federal public benefits''. FNS also recognizes
that the definition of ``Federal public benefit'' is inapplicable
``with respect to benefits for an alien who as a work authorized
nonimmigrant or as an alien lawfully admitted for permanent residence
under the Immigration and Nationality Act qualified for such benefits
and for whom the United States under reciprocal treaty agreements is
required to pay benefits, as determined by the Attorney General, after
consultation with the Secretary of State.'' See 8 U.S.C. 1611(c)(2)(B).
IV. Verification and Economic Impact
Due to the multitude of USDA programs that are available to tens of
millions of individuals, USDA will continue to evaluate the manner in
which it will verify compliance with PRWORA. USDA will, to the maximum
extent possible, minimize the imposition of reporting and information
and information collection requirements. Similarly, USDA continues to
analyze the economic impact of this interpretation, but at this time,
has not found there to be significant economic impact. USDA will issue
subsequent guidance on verification actions and a final determination
regarding the economic impact of this interpretation.
Ralph A. Linden,
Acting General Counsel, Office of the General Counsel.
[FR Doc. 2025-12691 Filed 7-9-25; 8:45 am]
BILLING CODE 3410-14-P
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