What Is Fiduciary Liability
Fiduciary liability is the legal responsibility that caseworkers, benefit administrators, and agency officials assume when they manage public assistance funds or make eligibility decisions on behalf of applicants. If someone in this position fails to follow proper procedures, mishandles benefits, or makes an error that damages a client, they can be held personally liable for that harm.
In government benefits programs like SNAP, Medicaid, TANF, and WIC, fiduciary liability protects you. It means the people processing your application, determining your eligibility, or distributing your benefits are legally bound to act in your interest and follow established rules. When they don't, there are consequences.
How Fiduciary Liability Applies to Your Benefits
Government benefits administrators operate under strict fiduciary standards. For SNAP (Supplemental Nutrition Assistance Program), administrators must verify your income against the current federal poverty line and process applications within 30 days. For Medicaid, fiduciaries must correctly assess whether your household income falls below your state's specific threshold, which ranges from 138% to 212% of the federal poverty level depending on your state. For TANF (Temporary Assistance for Needy Families) and WIC (Women, Infants, and Children), similar verification and eligibility thresholds apply.
If a caseworker incorrectly denies your SNAP application when you qualified, fails to enroll you in Medicaid when eligible, or mishandles your WIC documentation, they breach their fiduciary duty. You can file a formal appeal and potentially seek damages if the error caused you financial harm.
Your Rights Under Fiduciary Liability
- Right to accurate eligibility determination: Administrators must follow their state's published income thresholds and verification procedures without deviation.
- Right to proper documentation: Your application file must be maintained accurately, and you must be notified of any missing information within 10 days for SNAP and similarly for other programs.
- Right to appeal: If a fiduciary decision harms you, you can request a hearing where an independent reviewer examines whether proper procedures were followed.
- Right to know the rules: Agencies must provide you written notice of eligibility requirements and how benefits are calculated.
Common Questions
- What happens if a caseworker denies my SNAP benefits by mistake? You have the right to an appeal hearing within 60 days of denial. You can present evidence that you meet the income or other eligibility requirements. If the state worker failed to follow proper procedures, you may be eligible for back benefits.
- Can I get money back if Medicaid covered me incorrectly for several months? If the agency error means you received benefits you didn't qualify for, they may seek repayment. If their error wrongly denied you eligible coverage, you're entitled to retroactive benefits back to your application date or up to 90 days before application, whichever is longer.
- Who do I contact if I think my administrator made a fiduciary error? Start with your state or local benefits office's appeals unit. If unsatisfied, contact your state's human services ombudsman or a legal aid organization in your area that handles benefits cases.