January SNAP Benefit Revisions Expected to Impact Millions of Recipients

January SNAP Benefit Revisions Expected to Impact Millions of Recipients

Washington D.C. – Revised payment calculations for the Supplemental Nutrition Assistance Program (SNAP) in January are anticipated to result in reduced benefits for many low-income Americans, with projections indicating a significant number of households may receive no benefits.

According to an analysis by the Center for Budget and Policy Priorities (CBPP), a research institute, approximately 40% of households receiving the maximum SNAP benefit level could experience a reduction of about half their usual payment. Households with alternative income sources, such as social security, disability, or employment, are projected to face a larger proportional decrease in benefits. The CBPP analysis indicates that some one-to-two-person households may receive $12, and an estimated 1.2 million households could receive no benefits. Overall, nearly 5 million individuals are projected to receive no SNAP benefits.

The Trump administration's partial SNAP benefits payment plan, sent to states, utilizes a contingency fund. The CBPP estimates that the U.S. Department of Agriculture (USDA) will allocate approximately $3 billion from this fund. This amount is less than the $4.65 billion that two federal judges had indicated should be used to maintain SNAP entitlements following a lapse in funding.

A federal judge in Rhode Island had previously ordered the administration to reinstate the SNAP program after its funding expired during a government shutdown. The USDA opted to use a smaller contingency fund, which could cover approximately half of the program's monthly cost, rather than a larger funding source suggested by federal judges in Rhode Island and Boston to fully cover payments.

Implementing the administration's revised funding formula presents procedural complexities for states, which are responsible for administering the program for 42 million Americans. The USDA had previously communicated that distributing benefits under this new framework could take weeks or months.

Tikki Brown, head of Minnesota's Department of Children, Youth and Families, stated that the process necessitates a complete recalculation and recoding of their system, with no immediate timeline for payments in her state. Danny Mintz of Code for America noted that some states utilize older systems from the 1970s, which may complicate the rapid implementation of extensive calculation changes. He added that concerns exist regarding potential system malfunctions due to altering benefit calculations and suggested that full funding from USDA would be the quickest method for states to disburse benefits.

Some states have indicated that benefit payments could be delayed by several weeks. Pennsylvania Human Services Secretary Val Arkoosh sent a letter to USDA, stating that the federal government was directing states to use a complex and labor-intensive approach. Pennsylvania has requested permission to utilize a simpler, faster method, previously approved for pandemic-related aid, which would involve distributing half of the usual SNAP payment to all beneficiaries.