USDA confirms that food stamp recipients will see an increase in their benefits beginning Oct. 1, 2024
The U.S. Department of Agriculture (USDA) has announced that annual cost-of-living adjustments (COLA) will directly impact Supplemental Nutrition Assistance Program (SNAP) recipients beginning October 1, 2024. This adjustment, which is based on inflation and cost-of-living projections, promises to bring significant financial relief to households that rely on these benefits.
Unlike other assistance programs, such as Social Security and Supplemental Security Income (SSI), whose COLA adjustments are not implemented until January 2025, SNAP recipients will be able to enjoy the increase in less than two months. USDA will rely on the model used in the 2024 tax adjustment, announced on August 3, 2023, to determine the new amounts.
Possible New SNAP Benefits
For fiscal year 2024, current SNAP benefits vary significantly by household size:
- 1 person: up to $291
- 2 persons: up to $535
- 3 persons: up to $766
- 4 persons: up to $998
- 5 persons: up to $1,185
- 6 persons: up to $1,422
- 7 persons: up to $1,585
- 8 people: up to $1,751
With the COLA projection of approximately 2.63%, benefits could increase as follows: a single person could receive up to $298; a couple could see up to $549, while a family of four could receive up to $1,022.
Impact and Frequency of the SNAP COLA Adjustment
The SNAP cost-of-living adjustment is applied annually on October 1, before Social Security. This adjustment takes into account inflation and the cost of food according to the Thrifty Food Plan, which estimates the cost of a nutritious and affordable diet.
In years of high inflation, the COLA adjustment may reduce SNAP benefits for some households that also receive Social Security, although overall, the increase in Social Security may outweigh the reduction in SNAP, resulting in a positive net benefit.
It is important to note that nearly half of SNAP recipient households also receive Social Security, which may influence eligibility and the final benefit amount.
Maximizing SNAP Benefits: Deductions and Calculation
SNAP benefits are calculated based on household size, net income and several specific deductions:
- Standard deduction for basic expenses: a standard deduction is applied to cover basic expenses.
- 20% income deduction: 20% of earned income is subtracted.
- Dependent care deduction: Includes expenses associated with the care of children or other dependents.
- Child support deduction: Deduct legally obligated child support payments.
- Medical Expense Deduction: A deduction is allowed for medical expenses in excess of $35 per month for elderly or disabled members.
- Excess housing deduction: Includes housing and utility expenses.
These deductions reflect the reality that not all income goes to food, adjusting the SNAP benefit calculation based on net income after deductions are applied.
With the implementation of these new amounts starting in October, it is expected that beneficiaries will see a relief in their food expenses, improving their ability to meet the cost of living in an ever-changing economic context.