Add New Mexico TANF program

[hua7450]

Summary

Closes #7038

Implements the New Mexico TANF program (officially called "New Mexico Works"), administered by the New Mexico Health Care Authority (HCA).

Regulatory Authority

• 8.102 NMAC - Cash Assistance Programs
• 8.102.500 NMAC - Eligibility Policy
• 8.102.520 NMAC - Income
• HCA New Mexico Works Information

Income Eligibility Tests

Gross Income Test

Gross income must be less than 85% of the Federal Poverty Guidelines for the benefit group size.

Source: 8.102.520.11 NMAC

Net Income Test

Countable net income must be less than the payment standard (standard of need) for the benefit group size.

Source: 8.102.520.11 NMAC

Income Deductions & Exemptions

Work Incentive Deduction (Earned Income)

Family Type	Flat Deduction	Plus Percentage
Single-parent families	$125	+ 50% of remainder
Two-parent families	$225 per parent	+ 50% of remainder
Non-parent caretakers	$125	+ 50% of remainder
Non-benefit group members	$125	(flat only)

Source: 8.102.520.12 NMAC

Child Care Deduction

Child Age	Maximum Monthly Deduction
Under age 2	$200 per child
Age 2 and older	$175 per child

Source: 8.102.520.12 NMAC

Child Support Deduction

Component	Amount
Disregard	$50
Passthrough (1 child)	$100
Passthrough (2+ children)	$200

Source: 8.102.520.10 NMAC, HCA Child Support Announcement (Jan 2023)

Income Standards

Benefit Group Size	Payment Standard
1	$327
2	$439
3	$549
4	$663
5	$775
6	$887
7	$999
8	$1,134
Each additional	+$111

Source: 8.102.500.8(D)(4) NMAC, HCA 23% Increase Announcement (Sept 2023)

Benefit Calculation

Benefit = Payment Standard - Countable Income

Where:
  Countable Income = Countable Earned + Countable Unearned - Child Care Deduction
  Countable Earned = max(Gross Earned - Work Incentive Deduction, 0)
  Countable Unearned = max(Gross Unearned - Child Support Deduction, 0)

Source: 8.102.500.8 NMAC

Files Added

Parameters (27 files)

tanf/
├── age_threshold/
│   ├── high_school_student.yaml
│   ├── minor_child.yaml
│   └── special_education.yaml
├── diversion/
│   └── amount.yaml
├── income/
│   ├── deductions/
│   │   ├── child_care/amount.yaml
│   │   ├── child_support/
│   │   │   ├── disregard.yaml
│   │   │   └── passthrough.yaml
│   │   └── work_incentive/
│   │       ├── non_benefit_group/amount.yaml
│   │       ├── other_member/amount.yaml
│   │       ├── rate.yaml
│   │       ├── single_parent/amount.yaml
│   │       └── two_parent/amount.yaml
│   ├── gross_limit/rate.yaml
│   └── self_employment/mileage_rate.yaml
├── payment_standard/
│   ├── additional_person.yaml
│   ├── amount.yaml
│   └── max_unit_size.yaml
├── resources/
│   ├── liquid/amount.yaml
│   └── non_liquid/amount.yaml
├── sanctions/
│   ├── first_level_rate.yaml
│   └── second_level_rate.yaml
├── school_clothing_allowance/
│   ├── august.yaml
│   └── january.yaml
├── support_services/
│   └── income_limit_rate.yaml
└── transition_bonus/
    ├── amount.yaml
    ├── income_limit_rate.yaml
    └── minimum_work_hours.yaml

Variables (13 files)

tanf/
├── eligibility/
│   ├── nm_tanf_eligible.py
│   ├── nm_tanf_gross_income_eligible.py
│   └── nm_tanf_net_income_eligible.py
├── income/
│   ├── nm_tanf_child_care_deduction.py
│   ├── nm_tanf_child_support_deduction.py
│   ├── nm_tanf_countable_earned_income.py
│   ├── nm_tanf_countable_income.py
│   ├── nm_tanf_countable_unearned_income.py
│   ├── nm_tanf_earned_income_deduction_person.py
│   ├── nm_tanf_earned_income_deduction.py
│   └── nm_tanf_gross_income.py
├── nm_tanf_maximum_benefit.py
└── nm_tanf.py

Tests (11 files)

tanf/
├── integration.yaml (13 cases)
├── nm_tanf_child_care_deduction.yaml (14 cases)
├── nm_tanf_countable_earned_income.yaml (5 cases)
├── nm_tanf_countable_income.yaml (5 cases)
├── nm_tanf_countable_unearned_income.yaml (15 cases)
├── nm_tanf_earned_income_deduction.yaml (14 cases)
├── nm_tanf_eligible.yaml (5 cases)
├── nm_tanf_gross_income_eligible.yaml (12 cases)
├── nm_tanf_maximum_benefit.yaml (11 cases)
├── nm_tanf_net_income_eligible.yaml (12 cases)
└── nm_tanf.yaml (16 cases)

Test Coverage

• 122 total test cases
• Unit tests for each variable
• 13 integration tests covering realistic scenarios:
  • Single-parent with 1-3 children
  • Two-parent households
  • Households with working teenagers
  • Child care expense scenarios
  • Child support income scenarios
  • Edge cases (income at thresholds, large households)

Example Calculation

Case: Single parent with two children earning $1,000/month

Gross Income: $1,000/month
85% FPL for size 3: $1,762/month → Gross income eligible ✓

Work Incentive Deduction (single parent):
  Step 1: $1,000 - $125 = $875
  Step 2: $875 × 0.50 = $437.50
  Total deduction: $562.50
  Countable earned: $437.50

Payment Standard (size 3): $549
Benefit: $549 - $437.50 = $111.50/month

🤖 Generated with Claude Code

[codecov]

Codecov Report

✅ All modified and coverable lines are covered by tests.
✅ Project coverage is 100.00%. Comparing base (9739e2f) to head (ec13e64).
⚠️ Report is 17 commits behind head on main.

Additional details and impacted files

@@             Coverage Diff              @@
##             main     #7039       +/-   ##
============================================
+ Coverage   76.92%   100.00%   +23.07%     
============================================
  Files           1        14       +13     
  Lines          39       209      +170     
  Branches        4         0        -4     
============================================
+ Hits           30       209      +179     
+ Misses          8         0        -8     
+ Partials        1         0        -1     

Flag	Coverage Δ
unittests	100.00% <100.00%> (+23.07%)	⬆️

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