Overhaul of Food Assistance Program to Affect Low-Income Households

Strategic Insights -

The Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, is set to undergo significant changes as part of a broader effort to revamp the nation's social safety net. Under the new plan, states will be required to take on a greater share of the program's administrative costs, and more individuals will be forced to work in order to receive benefits. The changes are expected to affect a substantial number of low-income households, which have relied on SNAP for decades.

Key Takeaways:

  • Over 47 million people nationwide received SNAP benefits in March, with participation down from a peak average of 47.6 million during the 2013 federal fiscal year.
  • The program provides monthly payments for food purchases to low-income residents earning less than $1,632 monthly for individuals or $3,380 monthly for a household of four.
  • More than one-third of the federal spending reduction from SNAP over the next 10 years comes from expanded work requirements, which the Congressional Budget Office (CBO) assumes would force some people off the rolls.
  • States could continue to seek federal waivers from SNAP work requirements in areas with unemployment over 10%, but the bill eliminates a more flexible exemption for areas without sufficient jobs.
  • The federal government currently splits the administrative costs of SNAP with states, but under the legislation, states would have to cover three-fourths of the administrative costs starting in 2027.

Statistics:

  • 47.6 million: The peak average number of people receiving SNAP benefits during the 2013 federal fiscal year.
  • 22 million: The number of households enrolled in SNAP as of March.
  • $186 billion: The projected reduction in federal spending from SNAP over the next 10 years.
  • 15%: The expected error rate for SNAP payments nationwide.
  • 5-15%: The percentage of training costs that states with high error rates would have to cover.
  • $1,632: The monthly income threshold for individuals to qualify for SNAP benefits.
  • $3,380: The monthly income threshold for households of four to qualify for SNAP benefits.

Sources:

  • "Senate approves legislation to overhaul food assistance program" by The Associated Press (no date provided).
  • Congressional Budget Office (CBO). (no date provided). "Estimated Budget Effects of the Family Security Act."