The Challenge of Benefits Cliffs for SNAP Recipients
Families receiving Supplemental Nutrition Assistance Program (SNAP) benefits can find themselves losing more in food assistance than they gain from a raise or additional work hours. If earnings surpass an eligibility threshold, it can lead to losing benefits worth more than the increased pay, resulting in less money to feed their children. This issue is termed a ‘benefits cliff,’ where an increase in earnings triggers a reduction or loss in public assistance, greater than the additional income acquired.
Federal researchers, academics, and organizations working with low-income families have documented how crossing these thresholds can complicate decisions about taking extra hours, accepting raises, or moving into better-paying jobs. In some situations, families cross the threshold, only to find they have lost a significant portion of their resources, despite increased wages.
SNAP’s Role in Supporting Families
SNAP benefits are provided to low- and no-income households throughout the United States. They assist over 35 million individuals across all states and U.S. territories with monthly payments uploaded to a prepaid benefits card, usable in participating grocery stores.
One individual facing this issue is Alicia Freemont, a 29-year-old mother from Nebraska. In early 2024, she experienced the benefits cliff after losing $150 monthly SNAP benefits due to her income being just under $20 above the eligibility limit for her household. Despite working full time, she found her situation precarious.
The Impact of Benefits Cliffs
Benefits cliffs occur across means-tested programs like SNAP, when assistance changes as household income rises. Defined by the Department of Health and Human Services (HHS), a benefits cliff entails a reduction in benefits equal to or larger than the earnings increase causing it. This means a worker receiving a raise might see little improvement or even a decline in their financial situation.
As shared by associate professor Stephanie Gonzalez Guittar of Rollins College, small increases in earnings may not significantly change a family’s ability to manage expenses. Alicia experienced this in early 2024, losing SNAP benefits after being only $19 over the income limit.
Alicia’s Struggle Beyond SNAP
After losing SNAP benefits, Alicia sought extra shifts to compensate, working up to 18 hours in a day. Later, she suffered a severe car accident, affecting her capacity to work and apply for assistance again. Despite being married and caring for three children, her financial challenges continued, relying partly on credit cards.
The Larger Picture of Benefits Cliffs’ Effects
Alicia’s predicament highlights a broader issue. Research has linked the loss of SNAP benefits with increased food hardship. A 2019 Health Affairs study found families losing SNAP benefits after earnings rose faced higher odds of food and energy insecurity. A 2021 study from the American Journal of Clinical Nutrition indicated former SNAP recipients had more significant odds of severe food insecurity compared to current beneficiaries.
Families near eligibility thresholds remain under the same financial pressure even after crossing them. Stephen Grimaldi, executive director of New York Common Pantry, notes that crossing an eligibility line does not always equate to financial security.
A 2024 HHS study emphasized the impact of benefit loss on the willingness to accept higher-paying work, influencing decisions among current and former SNAP recipients.
SNAP Program Challenges
SNAP benefits decrease gradually as income rises. Calculations include a 20% deduction for earned income, meaning benefits decrease by 24 to 36 cents for each additional dollar earned. While most recipients do not lose a full dollar in SNAP for every dollar earned, eligibility limits present challenges.
States can mitigate cliffs through Broad-Based Categorical Eligibility (BBCE), allowing for increased SNAP thresholds beyond federal limits. This approach helps working families remain eligible while earning more. Nebraska, Alicia’s home state, has increased its threshold, facilitating SNAP access for about 8,000 Nebraskans in 2023.
While SNAP’s formula aims to reduce assistance gradually, hard eligibility boundaries remain. Grimaldi advocates for a smoother transition to reduce disruption, highlighting the importance of incremental benefit decreases as earnings rise.
Alicia’s Continuing Struggle
Two years after losing SNAP benefits, Alicia and her family continue facing hardships. She prioritizes her children’s needs over her own, emphasizing the ongoing struggle without SNAP support. Her experience underscores the human aspect of navigating benefits cliffs.
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