Recent data from the Consumer Price Index, released by the Bureau of Labor Statistics on August 10, reveals a troubling trend a 0.2% food stamps increase in the cost of food at home and a year-over-year surge of 4.9%.
In the face of persistent food stamps increase, even as broader inflation eases, there is growing concern about the impact on American households
These surging food stamps increase are straining family budgets. As the question arises, will Food Stamp allotments also rise to meet this challenge? For those dependent on the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, the escalating food stamps increase is causing additional financial strain. Although SNAP benefits are adjusted annually to account for inflation, the current cost-of-living adjustment for the fiscal year is based on 2021 prices, significantly lower than the current rates.
SNAP, administered by the U.S. Department of Agriculture, aids low-income Americans in affording groceries. It recalibrates maximum allotments, deductions, and income eligibility standards at the outset of each fiscal year. These food stamps increase adjustments are informed by variations in the cost of living. The USDA’s Thrifty Food Plan calculates the cost of a market basket for a family of four, a reference for providing nutritious, low-cost meals. Maximum allotments are determined based on this cost in June, forming the basis for the cost-of-living adjustment in fiscal year 2024, calculated from June 2023 prices.
These calculations consider household size, where smaller households receive more per person
Income eligibility standards are set by law, with gross monthly income limits at 130% of the poverty level for the respective household size, while net income limits are at 100% of the poverty level, accounting for allowable deductions.
Over the years, SNAP benefits have fluctuated. From 2013 to 2019, yearly SNAP benefit payments decreased by an average of 6.5% annually, according to USA Facts.org. In contrast, benefits surged by 32% from 2019 to 2020, primarily due to COVID-19-related adjustments. While inflation provided some relief in the last two fiscal years, these increments still struggled to keep pace with mounting consumer prices. For fiscal year 2023, the maximum SNAP allotment ranged from $939 a month for a family of four to $1,691 for a family of eight, with an additional $211 per person above eight.
Starting October 1, 2023, for fiscal year 2024, SNAP food stamps increased by approximately 3.5%, which lags behind the 4.9% year-over-year food inflation rate. This means that a family of four will receive $973 a month, with allotments rising to $1,751 for a family of eight, along with an extra $219 for each additional family member beyond eight. Notably, residents of Alaska, Hawaii, Guam, and the Virgin Islands receive higher maximum and minimum allotments than residents in the 48 contiguous states and the District of Columbia.
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