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

• NM TANF State Plan (2024-2026)
• 8.102 NMAC - Cash Assistance Programs
• 8.102.500 NMAC - Eligibility Policy
• 8.102.520 NMAC - Income

Income Eligibility Tests

Gross Income Test

Gross income must be at or below 85% of the Federal Poverty Guidelines for the benefit group size.

Source: 8.102.500.8(B) NMAC, State Plan Section 9.8, p.20

Net Income Test

Countable net income must be at or below 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

Source: 8.102.520.12(C) NMAC, State Plan Section 9.8, p.21

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(D) NMAC, State Plan Section 9.8, p.21

Child Support Deduction

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

Source: 8.102.520.10 NMAC

Resource Limits

Resource Type	Limit
Liquid resources	$1,500
Non-liquid resources	$2,000

Source: 8.102.510.8 NMAC, State Plan Section 9.7, p.20

Payment Standards (Historical)

Benefit Group Size	Aug 2015 (7.5% adj)	Nov 2018 (adj removed)	Aug 2023 (23% increase)
1	$244	$266	$327
2	$327	$357	$439
3	$409	$447	$549
4	$493	$539	$663
5	$576	$630	$775
6	$659	$721	$887
7	$743	$812	$999
8	$843	$922	$1,134
Each additional	+$83	+$91	+$111

Source: 8.102.500.8(D) NMAC, State Plan p.19

Benefit Calculation

Benefit = Payment Standard - Countable Income

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

File Structure

Variables

nm_works/
├── eligibility/
│   ├── nm_works_eligible.py
│   ├── nm_works_gross_income_eligible.py
│   ├── nm_works_net_income_eligible.py
│   └── nm_works_resources_eligible.py
├── income/
│   ├── nm_works_gross_income.py
│   ├── nm_works_countable_income.py
│   ├── earned/
│   │   ├── nm_works_countable_earned_income.py
│   │   └── nm_works_earned_income_deduction_person.py
│   ├── unearned/
│   │   └── nm_works_countable_unearned_income.py
│   └── deductions/
│       ├── nm_works_childcare_deduction.py
│       └── nm_works_child_support_deduction.py
├── nm_works.py
└── nm_works_maximum_benefit.py

Parameters

nm_works/
├── income/
│   ├── gross_limit/rate.yaml (85% FPL)
│   └── deductions/
│       ├── work_incentive/ (single_parent, two_parent, rate)
│       ├── childcare/amount.yaml (bracket by age)
│       └── child_support/ (disregard, passthrough)
├── payment_standard/
│   ├── amount.yaml (by size, with history)
│   ├── additional_person.yaml
│   └── max_table_size.yaml
└── resources/limit/ (liquid, non_liquid)

Not Implemented

• Extended age eligibility for special education (18-21)
• Extended age eligibility for high school students (18-19)
• Transition Bonus Program
• Diversion Payment
• Sanctions
• Support Services
• School Clothing Allowance

🤖 Generated with Claude Code

[codecov]

Codecov Report

✅ All modified and coverable lines are covered by tests.
✅ Project coverage is 100.00%. Comparing base (ffcbc3e) to head (20d8d8e).
⚠️ Report is 213 commits behind head on main.

Additional details and impacted files

@@            Coverage Diff             @@
##              main     #7039    +/-   ##
==========================================
  Coverage   100.00%   100.00%            
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  Files            3        13    +10     
  Lines           39       184   +145     
==========================================
+ Hits            39       184   +145     

Flag	Coverage Δ
unittests	100.00% <100.00%> (ø)

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[PavelMakarchuk]

PR Review - New Mexico Works (NM TANF)

Overall Assessment: ✅ APPROVE

This is a well-implemented new program that follows PolicyEngine patterns correctly.

---

🟢 Strengths

Code Patterns - All Checks Pass:

• ✅ No hard-coded values - all numeric values sourced from parameters
• ✅ Correct nm_works_* naming prefix used consistently
• ✅ Proper adds attribute for pure sums, add() function for operations
• ✅ Correct add() > 0 pattern instead of .any()
• ✅ Monthly period for all benefit calculations
• ✅ Correct entity levels (SPMUnit for household, Person for individual)
• ✅ No TODOs or stub implementations
• ✅ Proper defined_for usage with StateCode.NM
• ✅ Reference format uses tuples correctly

Parameters - Complete and Well-Documented:

• ✅ All parameters have required metadata (description, unit, period, label, reference)
• ✅ References include specific NMAC sections and PDF page numbers
• ✅ Value formatting uses underscores for large numbers
• ✅ Proper bracket structure for scale parameters

CI Status:

• ✅ All checks passing (Lint, Tests, Coverage)

---

🟡 Minor Suggestions (Non-Blocking)

1. Label Consistency: Some labels like "work incentive percentage disregard rate" could be simplified to "work incentive disregard rate"

2. Period for Resources: resources/limit/liquid.yaml and non_liquid.yaml use period: month - verify this is intentional vs annual

3. Variable Documentation: Consider adding docstrings to complex formulas like nm_works_earned_income_deduction_person.py explaining calculation steps

4. Historical Tests: Verify tests exist for each payment standard period (2015, 2018, 2023)

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Validation Summary

Check	Result
Hard-coded Values	✅ None found
Naming Conventions	✅ Correct nm_works_* prefix
adds/add() Usage	✅ Correct
Period Handling	✅ Monthly for benefits
Entity Levels	✅ Correct
Reference Quality	✅ Good - includes NMAC sections + page numbers
CI Status	✅ All passing

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Regulatory Coverage

Based on PR description, implementation covers:

• ✅ Gross income test (85% FPL)
• ✅ Net income test (payment standard)
• ✅ Work incentive deductions ($125 single/$225 two-parent + 50%)
• ✅ Childcare deduction ($200 under 2, $175 age 2+)
• ✅ Child support ($50 disregard + passthrough)
• ✅ Payment standards with historical values
• ✅ Resource limits ($1,500 liquid + $2,000 non-liquid)

Not implemented (documented in PR):

• Extended age eligibility
• Transition Bonus Program
• Diversion Payment
• Sanctions

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Recommendation: Ready to merge ✅

🤖 Generated with Claude Code