7 CFR § 273.17(d)(4) & 7 CFR § 273.18(e)(7) and (g)(3)


Restored benefits for underpayments must be used to offset any approved unpaid SNAP claims including suspended collections.  

Exception:  Restored underpayments are not used to offset a claim when restoring benefits due to an underpayment for an initial month’s benefit, unless the EDG agrees to the reduction.


Amounts remaining after offsetting all outstanding and approved claims are issued to the EDG.

Note:  Claims suspended for a pending FH will not be offset by an underpayment.  All other EMS suspended status codes (SU – Suspended and SC – Suspended due to Court Order) will be offset when an underpayment is approved.


See SNAP Claims Management Plan.