Division of Family and Economic Security, Bureau of Working Families

Emergency Assistance Manual

2.6.6 Financial Crisis

The following two categories of emergencies must be a result of a financial crisis due to reasons beyond the control of the caretaker relative(s), or that constitute good cause as determined by the W-2 agency: 

  1. Impending Homelessness due to Financial Crisis and Notice to Terminate Tenancy (see 2.6.4.4); and 
  2. Energy Crisis (see 2.6.5). 

The financial crisis and the emergency do not need to occur in the same month. However, the emergency must be a result of the financial crisis.  

The financial crisis must be caused by one of the following: 

  • Loss of employment that does not include voluntarily leaving employment without good cause; 
  • Substantial loss of wages due to:
    • Illness or injury of an EA Group member; 
    • Domestic violence;
    • Lack of child care;
    • A transportation breakdown; or
    • A reduction of work hours by an employer, including temporary employment.
  • Loss of income due to a second parent leaving the EA Group; 
  • Exceptional, unexpected, and necessary expenses that are not the responsibility of a third party, such as car repair expenses necessary for transportation to work or out-of-pocket medical expenses required to be paid; 
  • Loss of W-2 benefits due to a sanction that is subsequently overturned through the Fact Finding process; or 
  • Other reasonable circumstances that constitute good cause as determined by the W-2 agency, including but not limited to: 
    • The substantial reduction in or loss of child support payments; 
    • Loss of support from another caretaker relative, other adult household member, relative or other person outside the home who provided financial support to the EA Group; 
    • Loss of Unemployment Insurance (UI); 
    • Loss of student financial aid for housing; 
    • The substantial reduction in or loss of an income tax refund; or 
    • Decrease in a W-2 payment due to a sanction for which the W-2 participant is subsequently found to have good cause.

EXAMPLE 1: Janet lost her job due to her company down-sizing in May. She managed to pay her bills until her savings were depleted. She received an eviction notice in November and applied for EA. Janet may be eligible for EA for impending homelessness due to Financial Crisis and Notice to Terminate Tenancy based on her lost employment, which led to her eviction notice.

EXAMPLE 2: Emily worked various temporary office assistant jobs for several months in placements by a local temporary employment agency. Then, the agency informed Emily that it had not received any more requests for office assistants and had no other job placements to offer her. Emily missed the next rent payment for her apartment, where she lives with her two children. She received an eviction notice and applied for EA. Emily’s loss of income from her temporary jobs and eviction notice would qualify as a financial crisis for EA.

History: Release 26-01.