SNAP Update – Recipients to Benefit First from COLA Increase in Food Stamps

Getting a Cost of Living Adjustment (COLA) increase is a significant concern for millions of American recipients. SNAP (Supplemental Nutrition Assistance Program) beneficiaries will likely be the first to see extra money thanks to the annual COLA in the United States.

It’s important to note that COLAs are not always an increase. In some cases, recipients may see a reduction in benefits, as happened in Hawaii after the 2024 COLA. Knowing how COLA affects your SNAP benefits is crucial for managing your household budget.

SNAP and New COLA

Social Security and Supplemental Security Income (SSI) recipients won’t see their 2025 COLA until January 2025 for SSDI or retirement benefits, and December 31, 2024, for SSI. However, SNAP recipients will benefit sooner.

The USDA has announced that the new Food Stamp amounts will be effective from October 1, 2024. This means benefits might increase if the COLA projections hold. But when will recipients know the new amounts?

For the Fiscal Year 2024, Cost of Living Adjustments were announced on August 3, 2023. If the USDA follows a similar timeline, SNAP recipients may learn their new benefit amounts in less than two weeks.

Projected SNAP Amounts

The maximum SNAP amounts vary based on household size. For instance, a single person can receive up to $291, while a family of eight can receive up to $1,751. There’s a significant difference depending on the household size.

Based on a report from the Senior Citizens League, the COLA projection for Social Security is around 2.63%. If SNAP benefits increase by this amount, here’s what recipients could expect:

Household Size	Current Benefit	Projected Benefit (2.63% Increase)
1	$291	$298
2	$535	$549
3	$766	$786
4	$973	$998
5	$1,155	$1,185
6	$1,386	$1,422
7	$1,519	$1,559
8	$1,751	$1,797

As you can see, even a slight increase can make a notable difference, particularly for larger households.

Household’s Allowance

The maximum SNAP benefit increases with each additional person in the household. For Fiscal Year 2024, the maximum monthly benefit is $291 for a one-person household, $535 for two people, $766 for three people, with an extra $219 for each additional person.

Net Monthly Income

Households are expected to spend about 30% of their net income (after deductions) on food. Therefore, SNAP’s monthly benefit equals the maximum for that household size, minus 30% of their net income. Households with no net income receive the maximum benefit amount.

Deductions

To determine a household’s net income for SNAP, several deductions are applied to the gross monthly income:

• Standard Deduction: For basic costs.
• Earnings Deduction: 20% of earned income.
• Child Care and Dependent Care Deduction: For child care or other dependent care costs.
• Child Support Deduction: For legally obligated child support payments.
• Medical Expense Deduction: For expenses over $35/month for elderly or disabled members.
• Excess Shelter Deduction: For housing and utility costs.

These deductions reflect that not all income is available for food. SNAP eligibility and benefits are based on the net income after these deductions.

Knowing these components is essential for maximizing your SNAP benefits and ensuring your household’s financial stability. Stay informed about COLA changes and how they impact your benefits to make the most of the support available.

FAQs