(a) When a household leaves TANF, the State agency may freeze for up to 5 months the household's benefit amount after making an adjustment for the loss of TANF. This is the household's transitional period. To provide the full transitional period, the State agency may extend the certification period for up to 5 months and may extend the household's certification period beyond the maximum periods specified in Sec. 273.10(f). Before initiating the transitional period, the State agency must recalculate the household's food stamp benefit amount by removing the TANF payment from the household's food stamp income. At its option, the State agency may also adjust the benefit to account for:
(1) Changes in household circumstances that it learns about from another State or Federal means-tested assistance program in which the household participates; or
(2) Automatic annual changes in the food stamp benefit rules, such as the annual cost of living adjustment.
(b) The State agency must include in its State plan of operation whether it has elected to make these changes:
(1) At the beginning of the transitional period; or
(2) Both at the beginning and during the transitional period.
(c) When a household leaves TANF, the State agency at its option may end the household's existing certification period and assign the household a new certification period that conforms to the transitional period. The recertification requirements at Sec. 273.14 that would normally apply when the household's certification period ends must be postponed until the end of the new certification period. If the transitional period results in a shortening of the household's certification period, the State agency shall not issue a household a notice of adverse action under Sec. 273.10(f)(4) but shall specify in the transitional notice required under Sec. 273.29 that the household must be recertified when it reaches the end of the transitional benefit period or if it returns to TANF during the transitional period.