Families who receive benefits through the Supplemental Nutrition Assistance Program (SNAP), also referred to as food stamps, will see an increase in their payments starting of October 1.
Even though there are already worries that the increase won't be sufficient, the benefits will automatically increase to reflect the most recent changes in the cost of living brought on by high inflation.
Millions of Americans to Receive Higher SNAP Benefits
SNAP benefits are received by close to 41 million Americans, according to US Department of Agriculture data. This year's cost-of-living adjustment is substantially larger than it was in previous years due to rising inflation continuing to drive up food prices.
The maximum benefit will rise from $658 to $740 for a family of three residing in the 48 contiguous states and Washington, DC. Remember that the amount of your new monthly benefit will vary based on your income and any eligible deductions. Other SNAP requirements, such as the income qualifying requirements and deductions, have expanded in number.
For homes of one to four persons, the standard deduction amount, which is a flat rate deducted from family income to calculate eligibility based on net income, increased from $177 to $193. An increase in deduction indicates that a household may be eligible for greater benefits.
The maximum gross monthly income that a family of three can have and still qualify for assistance has increased from $2,379 to $2,495, as per Forbes via MSN. Scale economies are considered in the calculation. Smaller households receive slightly more money per person than a household of four. More than four-person households receive slightly less money per member.
Regulations regarding eligibility are set by legislation. The maximum gross monthly income is 130 percent of the applicable poverty line for the size of the household. Gross income is the total, non-excluded income of a household before any deductions have been made.
The net monthly income ceiling is established at the federal poverty level. Net income is defined as gross income less permitted deductions, according to FNS. According to the USDA website, the maximum SNAP allotments for a family of four have increased as follows:
- For the 48 states and DC: $939
- Alaska: $1,172 to $1,819
- Hawaii: $1,79
- Guam: $1,385
- US Virgin Islands: $1,208
The amount that SNAP benefit recipients can subtract from their income to calculate their benefits, known as the shelter limit values, has also increased by $27, up to $624, in the 48 contiguous states and DC Maximum shelter deductions in other regions have increased as follows:
- Alaska: $996
- Hawaii $840
- Guam: $732
- Virgin Islands: $492
Maximum asset limitations were increased to $2,750 for all other households and $4,250 for households with at least one family member who is 60 years of age or older. You must notify the IRS of any changes to your household's monthly income that exceed $125, GoBanking Rates reported.
Inflation Prompts Increase in SNAP Benefits
Food stamp users are already falling behind even with this significant increase because inflation has risen steadily since June. According to the most recent figures from the Bureau of Labor Statistics, grocery prices increased 13.5% in August.
In addition to milk going up 17%, bread costs went up 16%, and eggs went up nearly 40%. While fruit and vegetables as a whole are up more than 9%, the price of chicken increased by 16%. The budgets of many Americans, even those who get food stamps, are being strained by rising food prices. To complement what they purchase at the grocery, many people are resorting to food banks.
According to a recent poll by the anti-hunger organization, 40% of the food pantries and soup kitchens in the Feeding America network showed an increase in the number of persons served in July compared to June. 40% more claimed that demand was roughly unchanged.
A COVID-19 pandemic relief program that Congress passed early in the outbreak is still assisting several beneficiaries of food stamps. Members of Congress increased registrants' monthly food stamp allowance to at least $95 per month, which is the minimum amount required for their family size. This program is still in operation in about 34 states and the District of Columbia.
A separate 15% benefit increase came to an end a year ago. The USDA updated its Thrifty Food Plan formula last year, which resulted in a sizable permanent increase in payments for those who receive food stamps. The monthly allotments increased by $36 for each person as a result of this, as per CNN.
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