Millions Face Food Stamp Reductions Amid Rising Grocery Costs

Millions of Americans who rely on the Supplemental Nutrition Assistance Program (SNAP) are poised to experience reduced benefits or loss of eligibility due to recent federal policy changes. The Congressional Budget Office estimates that approximately 2.4 million individuals, or about 6% of enrollees, could lose access to SNAP each month as a result of stricter work requirements and adjustments in benefit calculations.

The Urban Institute projects that up to 22.3 million U.S. households may be affected by these changes. Currently, about 42 million individuals in 22.3 million households receive food stamps, according to the U.S. Department of Agriculture (USDA).

Some states are already implementing the new restrictions. For instance, Pennsylvania will enforce stricter work rules starting November 1. These changes come at a time when grocery costs are rising, and poverty rates are increasing among senior citizens and Black Americans, as indicated by recent Census data.

Anti-hunger advocates express concern that reduced SNAP benefits could exacerbate food insecurity. Carolyn Vega, associate director of policy analysis for Share Our Strength, an anti-hunger nonprofit, stated, "We are deeply concerned that the cuts to SNAP will lead to an increase in hunger."

Monitoring the impact of these SNAP cuts may become more challenging, as the USDA announced on September 20 that it is halting its annual Household Food Security Report. The department cited reasons such as redundancy, cost, politicization, and fear-mongering for discontinuing the report. However, advocates argue that eliminating the report could obscure the effects of the policy changes on food insecurity.

New work requirements are being introduced as the labor market faces challenges, raising the risk that more individuals could lose access to food stamps under the stricter rules. Gina Plata-Nino, a food stamp expert at the Food Research & Action Center, noted, "It's a tough workforce right now, and the work requirements come without any support."

The new rules expand the definition of "able-bodied adults without dependents" (ABAWDs) to include individuals up to age 64. These adults must prove they are working, volunteering, or engaged in education or training for at least 20 hours a week to qualify for food stamps. Previously, the work requirements applied to those between 18 and 54 years old. Additionally, former exemptions for veterans, homeless individuals, and youth aging out of foster care have been removed.

Individuals who do not meet the work requirements will be limited to receiving food stamps for three months within a three-year period. Plata-Nino highlighted the challenges faced by affected populations, stating, "Just off the bat, those are veterans, youths aging out of foster care — think about what it means to be unhoused, trying to get a job when you don't have a place to shower. Again, these populations are going to be worse off."

Republican lawmakers advocate for work requirements, arguing that they encourage employment and community engagement in exchange for food aid. However, anti-hunger advocates contend that the rules often remove individuals from the program due to difficulties in filing paperwork or challenges in securing sufficient work hours, especially given the prevalence of "just-in-time" scheduling.

Under the new tax and spending law, additional changes to the SNAP program could reduce benefits for millions. For example, SNAP applicants can deduct utility costs from their incomes when calculating benefits, which can increase their food-stamp allotments. However, the new law prevents recipients from counting internet expenses as part of their household costs when determining benefits. This change, effective since July 4, is expected to reduce benefits for approximately 65% of participating households by an average of $10 per month.

Long-term changes may further strain states' ability to provide food stamps. Starting in fiscal year 2027, states will be required to cover 75% of administrative costs, up from the current 50%. Additionally, states with high error rates in SNAP benefit payments will need to provide more funding for the program beginning in 2028. Carolyn Vega expressed concern about states' financial capacity to meet these requirements, stating, "It's uncharted territory. We do worry some states might decide they can't take that level of liability and won't participate in SNAP."