§1902(xx)(2) · 42 C.F.R. §435.552
What actually counts
Seven ways to satisfy the Medicaid community engagement requirement, what each covers once the Centers for Medicare & Medicaid Services (CMS)rule fills in the statute, and how hours get documented. That rule is an Interim Final Rule with Comment period (IFC), so it governs now and can still change. Everything on this page is Medicaid. Supplemental Nutrition Assistance Program (SNAP) works differently and the difference is not small.
Start here
There are seven, not five
“Five criteria” is common shorthand and it undercounts. The statute lists seven, and the two most often dropped are the two that matter most for designing a program.1
The statute names the activities; it does not define them. Each one counts “as determined in accordance with criteria established by the Secretary through regulation,” so the detail below — including where community service may be performed — comes from the Centers for Medicare & Medicaid Services (CMS) rule rather than from Congress, and is not yet final.14
- (A)Work — at least 80 hours a month
- (B)Community service — 80 hours (the CMS rule adds “at a public or nonprofit organization”)
- (C)Participation in a work program — 80 hours
- (D)Enrollment in an educational program at least half-time — no hour count
- (E)Any combination of A through D totalling 80 hours
- (F)Monthly income of at least $580 (federal minimum wage × 80) — measured as MAGI-based household income
- (G)For seasonal workers, an average at that level over the preceding six months — good for one month
(E) and (F) are the ones that get lost. Without (E) you would think someone has to pick one activity and hit 80 hours in it alone. Without (F) you would think hours are the only currency.
§1902(xx)(2)(B)
Community service is broader than 501(c)(3)
CMS considered restricting community service to organizations with 501(c)(3) status and explicitly declined:3
Such a narrow interpretation … ignores the reality that there are various community organizations that operate structured programs which provide services to benefit the community, but which may not be a 501(c)(3) organization, such as local government agencies, religious nonprofits (such as non-denominational ministries), and smaller social service providers.
CMS-2454-IFC, preamble
The auspices test survives, though.What CMS declined to require is 501(c)(3) status, not the public-or-nonprofit condition itself. The codified definition says community service is completed “under the auspices of public or nonprofit organizations,” and those organizations “include organizations described in section 501(c)(3) … and other organizations.” So the host may be a local government agency, a religious nonprofit, or a small unincorporated service provider — but a for-profit business does not qualify as the sponsoring organization. The rule also requires the organization to provide oversight, to keep a record of the activity, dates and hours with a point of contact who can confirm them, and not to serve a partisan purpose.5
Unpaid, but not necessarily voluntary.The definition begins “community service means unpaid work,” so paid work is not community service — it is work, under (A). What the service need not be is voluntary: CMS says service completed to satisfy a court order or other mandate still benefits the community and still counts.53
Training embedded in a service placement counts as service time. This is the provision most worth knowing:
These embedded activities allow an individual to develop necessary skills so that they can complete the community service … For example, such embedded activities could include attending training as part of the community service program, such as attending a computer training class to learn a certain computer skill to provide tech tutoring for seniors. Such training would count towards an individual’s community service hours.
CMS-2454-IFC, preamble
So a placement that teaches someone a skill and then puts them to work using it is not a workaround. The training hours and the service hours both count, under the same pathway.3
§1902(xx)(2)(A)
Work includes unpaid and in-kind work
The statute does not define work. CMS borrowed the definition the food-assistance agency already uses, deliberately, to keep the two programs aligned. That definition covers work for money, work in exchange for goods or services (in-kind work), unpaid work other than community service, and any combination of the three.36
The practical consequence: someone trading labor for housing, or doing unpaid work in a family operation, is doing something the rule already recognizes.
§1902(xx)(2)(C) · §1902(xx)(9)(D)
Work programs are a closed list
This is the pathway most often described loosely, and it is the most tightly defined of the four. A work program is not “job training” in general. §1902(xx)(9)(D) defines the term by cross-reference to the food-assistance statute, so the definition sits in a different act entirely and reading §71119 end to end never shows it to you.1 It names five things:2
- A program under title I of the Workforce Innovation and Opportunity Act.
- A program under section 236 of the Trade Act of 1974.
- A program of employment and training operated or supervised by a State or political subdivision that meets standards approved by the Governor, including SNAP employment and training, other than supervised job search or job search training.
- A program of employment and training for veterans, operated by the Department of Labor or Veterans Affairs and approved by the Secretary.
- A certified workforce partnership under
7 U.S.C. §2015(d)(4)(N).
The workforce partnership route is open to nonprofits. §2015(d)(4)(N)allows USDA or the State agency to certify an organization delivering workforce development services, where the program provides at least 20 hours a week of training, work or experience that enhances employability, uses no food-assistance funds, reports enough for the State to verify participation, and will act as an employment reference. That is the door for an organization that wants its own track to count under (C) rather than only under (B).2
Verification for work programs tightens on 2028-01-01: from that date, where a state cannot confirm 80 hours from data it already holds, it must require documentation where documentation is reasonably available, and must have a process for accepting other evidence where it is not.4
§1902(xx)(9)(B) · 42 C.F.R. §435.552(b)–(d)
Education, including below half-time
Half-time enrollment satisfies the requirement outright, with no hour count.1 There is no federal credit threshold behind that line.The rule leaves full-time, half-time and less-than-half-time status to the school or institution, following the Department of Education’s approach at 34 C.F.R. §668.2(b) and SNAP’s at 7 C.F.R. §273.5(b)(10). Any specific credit count someone quotes as “the half-time line” is their institution’s, not the federal rule’s.5 Like work programs, this term is defined rather than left open, though less narrowly. §1902(xx)(9)(B)says an educational program includes an institution of higher education as defined by the Higher Education Act of 1965, and a program of career and technical educationas defined by the Carl D. Perkins Act of 2006. The word is “includes,” so the list is not exhaustive, and the rule adds to it:5
We include in our definition of educational program a State-approved program of study leading to a certificate of high school equivalence for an applicable individual who has not received a high school diploma … (such as a GED program offered at a community college) … However, independent study and self-paced online preparation outside of a State-approved program do not provide sufficient structure to qualify.
CMS-2454-IFC, on §435.552(b)
A General Educational Development (GED) is the credential that quotation is describing.
Below half-time still generates countable hours. Where the program uses credit hours, one credit hour of instruction counts as three hours a week, multiplied by 4.33 to give a monthly total. Where it does not use credit hours, the actual hours attending class and participating count.5
Worked example
Two credit hours → 2 × 3 = 6 hours a week → 6 × 4.33 = 26 hours a month. That leaves 54 hours to find elsewhere, which community service covers in about thirteen hours a week.
Enrollment status holds through vacation and recess, based on status just before the break, and ends when the student withdraws, is expelled, or finishes a term without registering for the next one — excluding optional winter and summer sessions.5
§1902(xx)(2)(E)
Combining is expressly allowed
Any combination of work, community service, work program, and education counts toward the same 80 hours. This is written into the statute, not inferred.1
It is what makes a designed pathway possible: coursework and a service placement in the same month, together, rather than either one alone having to carry the full load.
§1902(xx)(2)(F)–(G)
Earnings instead of hours
Monthly income of at least the federal minimum wage times 80 hours — $580 — satisfies the requirement with no hours counted at all.1The test is the dollar figure, not the hours behind it. At Hawaiʻi’s minimum wage that much money takes roughly 36 hours of work a month, and less again as the state wage rises.
§435.552(f) directs the agency to measure the individual’s MAGI-based income, for their MAGI-based household, as defined at §435.603. CMS considered limiting the test to earned income and declined. So the figure includes household income the person did not earn — which cuts both ways: it can carry someone over the line who works very little, and it means a paycheque alone does not describe the test.5Proving it is the state’s job first. Under the corrected rule the state must look to payroll and other data it already holds before asking anyone for paperwork, and only turns to the individual when that fails — so a pay stub is one accepted form of evidence rather than something everyone has to produce.4
Seasonal workers may use a six-month average at the same level, which matters in an economy with seasonal tourism and agriculture.1 Note what it does and does not buy: it demonstrates compliance for a month, on the average monthly income over the preceding six months. It is not a twelve-month qualification and it does not exempt anyone. “Seasonal worker” is the term as described in 26 U.S.C. §45R(d)(5)(B), and the same MAGI-based household income measure applies.5
This is the exit. Someone who enters through service and ends up earning is no longer counting hours.
§1902(xx)(5) · §435.557
Proving it
States must check their own data first — payroll, claims, encounter data — before asking anyone for paperwork. Only when that fails does the burden move to the individual.4
Where documentation is needed for community service, CMS describes the kind of information that supports a determination: the general nature of the program, the dates and hours completed, and a description of the activity, kept in an auditable form.3
That is an ordinary output of any volunteer management system. The organizations best placed to keep people compliant are the ones already tracking hours.
References
- 1.
- 2.7 U.S.C. §2015(o) — SNAP work requirement for able-bodied adults uscode.house.gov ↗in libraryThe statute §10102 amends. The prelim edition may not yet show the H.R. 1 amendments.
- 3.CMS-2454-IFC — Medicaid Program; Community Engagement Requirement for Certain Individuals. Centers for Medicare & Medicaid Services (CMS) interim final rule with comment period (IFC), 91 FR 33348 (2026-06-03) federalregister.gov ↗in librarySections 435.557 and 435.558 of this rule were replaced by a correction on 2026-06-29 — see the correction entry.
- 4.CMS-2454-IFC Correction, C1-2026-11094, 91 FR 39028 (2026-06-29) — Centers for Medicare & Medicaid Services; §435.557 and §435.558 replaced in full federalregister.gov ↗in libraryControls over the 2026-06-03 text for verification. Defines "reliable information available to the State" as eight enumerated sources, with claims and encounter data limited to the preceding 12 months.
- 5.42 C.F.R. §435.552 — Demonstrating community engagement: definitions, enrollment status, credit-hour conversion, monthly income ecfr.gov ↗Added by the CMS interim final rule. Paragraph (b) defines community service, work, educational program and work program; (c) leaves half-time status to the school; (f) and (g) set the income routes on MAGI-based household income under §435.603.
- 6.7 C.F.R. §273.24 — Time limit for able-bodied adults ecfr.gov ↗in libraryNot yet updated for H.R. 1. H.R. 1 §10102 rewrote the exception list — it excepts only “under 18, or over 65,” so the upper bound is 65 — and removed the veteran, homeless and former-foster-youth exceptions. Paragraph (c) as published still shows the old rule.