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SNAP Changes Benefit Decreases

Guide to Proposed Changes to Supplemental Nutrition Assistance Program Certification, Benefits, and Eligibility

Mary Zaki
University of Maryland
Department of Agricultural and Resource Economics
University of Maryland Extension

Proposed Changes that would Decrease Benefit Amount or Participation in SNAP
CURRENT LAW HOUSE BILL
Proposed Changes
SENATE BILL
Proposed Changes
Categorical Eligibility (7 USC § 2014(a) and 7 USC § 2014(j))
States have the option to grant SNAP eligibility to households in which every member within that household receives benefits (cash or otherwise) from Temporary Assistance for Needy Families (TANF) block grants, Supplemental Security Income cash assistance (SSI), or state General Assistance (GA). Hence, this type of eligibility does not directly consider the income and asset holdings levels of households. 
Update to Categorical Eligibility (H.R. 2, sec. 4006)
States will not be able to grant Categorical Eligibility for SNAP if TANF benefits received by household members are neither cash assistance nor ongoing substantial services such as transportation, childcare or counseling and if household (gross) income is more than 130% (200% for elderly or disabled) of the poverty line. 

Estimated 2019-2028 Impact: −$5,035 million from households losing SNAP eligibility. CBO comments that the loss of SNAP eligibility will have an added impact on children who will lose access to free school lunch (as the National School Lunch Program also implements categorical eligibility). 
No Proposed changes
Standard Utility Allowance (7 USC § 2014(e)(6) and 7 USC § 2014(k)(4))When calculating total shelter costs of households (that get deducted from gross income when calculating net income), State agencies can use a "standard utility allowance"(SUA) in lieu of actual utility expenses. A households generally qualifies for SUA if they pay for heating or cooling or if they receive more than $20 in assistance through the federal Low-Income Home Energy Assistance Program (LIHEAP).  
Availability of Standard Utility Allowances based on receipt of energy assistance. (H.R. 2, sec. 4010)
span>Households will not automatically qualify for SUA for receiving  LIHEAP assistance unless the household receives more than $20 and includes an elderly member. 

Estimated 2019-2028 Impact: −$5,250 million due to reduction in benefits as net income would be higher for those who are unable to apply SUA. CBO estimates 560,000 households would have their SNAP benefits reduced by an average of $84 per month.
No Proposed changes
Deduction for Child Support Payments and cooperation with child support agencies (7 USC § 2014(e)(4) and 7 USC § 2015(l) and 7 USC § 2015(m))
States have the option to deduct income used for child support payments in the net income calculation. Also states have the option, but are not obligated, to make it mandatory for custodial and non-custodial parents of a child under the age of 18 in a single parent household to cooperate with child support agencies (to determine paternity and enforce support payments) to be eligible to receive SNAP benefits.
Child support; cooperation with child support agencies (H.R. 2, sec. 4011)
States would no longer be able to deduct child support payments from income in the net income calculation. States must make it mandatory that custodial and non-custodial parents of a child under the age of 18 in a single parent household to cooperate with child support agencies to be eligible to receive SNAP benefits.

Estimated 2019-2028 Impact: −$4,000 million in benefits, +$7,525 million in administrative costs. Benefits decrease as household net income will increase for households that begin to receive child support. Administrative costs increase to operate the child support program.
No Proposed changes
Additional sources: Congressional Budget Office. (2018). "Cost Estimate of H.R. 2, Agriculture and Nutrition Act of 2018"; Congressional Budget Office. (2018). "Cost Estimate of S. 3042, Agriculture Improvement Act of 2018."; U.S. Senate. (2018). "Agriculture Improvement Act of 2018 Section-by-section"; U.S. House of Representatives.(2018)."Agriculture and Nutrition Act of 2018 Section-by-section."