In the realm of federal nutrition assistance, the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, plays a vital role in providing support to eligible families and individuals. To understand how SNAP benefits are determined and who qualifies, it is essential to examine the eligibility and benefit calculation rules in effect for the fiscal year 2023, which began in October 2022.

The COVID-19 pandemic prompted Congress and the U.S. Department of Agriculture (USDA) to introduce temporary modifications to SNAP eligibility and benefits. However, these temporary measures are slated to end this year due to recent legislation and the conclusion of the federal public health emergency. In parallel, USDA revised the Thrifty Food Plan (TFP) in 2021, resulting in increased SNAP benefit levels, which began in October 2021 and will continue to rise in the coming years.

To be eligible for SNAP benefits, a household must meet three tests related to income and resources. Firstly, the gross monthly income, which refers to household income before applying any program deductions, must generally be at or below 130 percent of the poverty line. For a three-person family in federal fiscal year 2023, the poverty line used to calculate SNAP benefits is $1,920 per month. Consequently, 130 percent of this poverty line amounts to $2,495 per month or approximately $29,940 per year. The poverty level varies based on family size.

The second test focuses on net income, or household income after applying deductions, which must also be at or below the poverty line. Lastly, assets must fall below specific limits, with households lacking a member aged 60 or older or with disabilities required to have assets of $2,750 or less, while households with such members must have assets of $4,250 or less. Assets include resources accessible to the household for purchasing food, such as bank accounts, while certain items like the household’s home, personal property, and retirement savings are not considered assets. States have the option to relax asset limits, and many have chosen to do so.

Regarding income, SNAP takes into account cash income from all sources, encompassing both earned income (prior to payroll taxes deduction) and unearned income such as cash assistance, Social Security, unemployment insurance, and child support. On the other hand, assets that count toward eligibility are resources available for purchasing food, while certain assets like the household’s home, personal property, and retirement savings are exempt. Most automobiles are also not counted as assets. However, states have the flexibility to modify asset limits, leading to variations across different states.

Certain categories of individuals are ineligible for SNAP, irrespective of income or assets. This includes individuals on strike, undocumented immigrants, certain college students attending school more than half time, and certain lawfully present immigrants. Unemployed adults aged 18 to 49 without children in the home and no disabilities are typically limited to receiving three months of SNAP benefits every three years in many areas. States have significant authority to impose work requirements on other SNAP households as well.

SNAP expects families receiving benefits to allocate 30 percent of their net income towards food expenses. Families with no net income receive the maximum benefit tied to the cost of USDA’s Thrifty Food Plan (TFP), which represents the cost of a nutritionally adequate diet according to the Dietary Guidelines for Americans, assuming individuals in low-income households make efforts to stretch their food budget. The TFP was updated in August 2021, leading to increased SNAP benefits and assisting millions of families in affording a healthy and nutritious diet.

For households with net income, the monthly SNAP benefit equals the maximum benefit for that household size minus 30 percent of the household’s net income. During the pandemic, these benefit calculation rules were temporarily suspended due to emergency allotments (EAs) that provided increased SNAP benefits to all households. However, the temporary increases will cease after the February 2023 issuance. Table 1 in the document outlines the maximum SNAP benefit levels for different household sizes in fiscal year 2023, along with estimated average benefits without the temporary pandemic-related increases.

On average, SNAP households received around $240 per month in fiscal years 2019 and 2020, prior to the pandemic and the TFP increase. The average SNAP benefit per person amounted to approximately $121 per month or roughly $4.00 per person per day. Since April 2020, average SNAP benefits have been higher due to legislation that provided temporary increases during the COVID-19 public health emergency. It is estimated that after the end of emergency allotments in February 2023, SNAP benefits per person will average around $182 per month or approximately $6.00 per person per day, considering the higher TFP and the impact of recent food price inflation.

Deductions play a crucial role in determining SNAP benefits, accounting for the fact that not all of a household’s income is available for food purchases as it must be used for other essential needs. SNAP allows various deductions from a household’s gross monthly income to calculate available or net income. These deductions include a standard deduction to cover basic unavoidable costs, an earnings deduction equal to 20 percent of earnings to account for work-related expenses and payroll taxes while incentivizing work, a dependent care deduction for necessary out-of-pocket child or dependent care expenses enabling a household member to work or participate in education or training, a child support deduction for legally obligated child support payments made by a household member, a medical expense deduction for out-of-pocket medical expenses exceeding $35 per month incurred by an older adult or a person with a disability, and an excess shelter deduction that considers the amount by which a household’s housing costs (including utilities) exceed half of its net income after other deductions. The excess shelter deduction is subject to limits unless at least one household member is an older adult or has a disability.

All SNAP households are eligible for the standard deduction, with over two-thirds of households (70 percent) claiming the shelter deduction, and a smaller percentage claiming the earnings, dependent care, child support, and medical expense deductions. These deductions have varying impacts on benefit levels, and their utilization depends on the specific circumstances of each household.

Understanding the eligibility requirements and benefit calculation rules of SNAP is crucial in assessing the program’s impact on eligible families and individuals’ access to adequate nutrition. The intricacies of income and asset evaluations, the role of deductions, and the calculation of benefit amounts all contribute to ensuring the program effectively supports those in need.