Understand the changes in food stamps and how they impact beneficiaries each year
When and How SNAP Benefits Are Adjusted (COLA)
The USDA changes the highest amounts of SNAP benefits, deductions, and income requirements every year to reflect changes in the cost of living. Official numbers show that almost 5 million seniors get both SNAP and retirement payments. This shows how important these changes are for a large part of the population.
We change the maximum amounts that can be given out, the amounts that can be taken out, and the income levels that qualify for SNAP at the start of each government fiscal year. The new fiscal year starts on October 1. The changes are based on how much it costs to live. The USDA says on its website that the cost of living is the amount of money needed to keep up a basic standard of living.
How does the USDA determine the maximum allotments for SNAP benefits?
The USDA uses a multi-step method to figure out how much SNAP benefits people can get:
- The most you can get from SNAP is based on how much the USDA’s Thrifty Food Plan (TFP) costs. For low-income families, the TFP is how much a healthy meal costs. The USDA changed the TFP in August 2021. This meant that SNAP benefits went up, which helped millions of families afford a healthy diet.
- Monthly maximums are set based on the number of people living in the home. For example, the most a family can get each month in fiscal year 2024 is $291 for one person, $535 for two people, $766 for three people, and $973 for four people. For every extra person, the highest amount goes up by $219.
- The USDA thinks that families will spend 30% of their net income on food, which is how they figure out how much SNAP they actually get. Families with no net income get the most help for the size of their family.
- If a family has a net income, the monthly SNAP benefit is 30% of the net income minus the maximum benefit for that size of household. Taking different things away from gross income gives you net income.
SNAP Benefits and the 2025 COLA: Key Changes That Could Affect Your Eligibility
Income limits for SNAP are set by law and are based on the poverty level. The maximum gross monthly income for a family of four is 130% of the poverty level. This is the total income of the family before any reductions. Not so with net monthly income, which is gross income minus expenses that are allowed. It is set at 100% of the poverty level.
The USDA comes out with the COLA and new maximum SNAP payments every year. For example, the 2024 COLA was announced on August 3, so the 2025 COLA rise and how it will affect SNAP benefits should be announced around the same time this year.
Maximum allocations will increase for the 48 states and DC, Alaska, Guam, and the U.S. Virgin Islands. For this year, the maximum allocation for a family of four in the 48 states and DC was $973, and this amount is expected to increase for the new fiscal year.
These changes mean that people who get SNAP payments will get more money to cover the rising cost of living. This is very important to make sure that families can get the food they need without losing buying power due to inflation.
When does the USDA announce the COLA adjustments for SNAP benefits?
The Cost of Living Adjustment (COLA) for SNAP benefits is usually announced by the USDA in August of each year. The changes go into effect on October 1, which is the first day of the government fiscal year.
The 2025 COLA is expected to be announced in the next few months. This means that SNAP recipients can expect their benefits to go up to help offset the effects of inflation. These changes are needed to make sure that beneficiaries can keep up a basic level of life and get enough food.
SNAP recipients can get ready for these changes by keeping up to date through official USDA channels and their local aid offices. Also, people who get benefits should check their benefits and make sure that their income and taxes are correct so that they get the right amount of help.
- The Social Security Administration announces COLA adjustments for retirement benefits in October. They take effect the following January. SNAP benefits are adjusted at the start of the federal fiscal year on October 1st.
- The USDA adjusts SNAP benefits based on inflation and economic data. This ensures benefits match the real cost of living and keeps purchasing power.
- Each year, when it announces the COLA, the USDA updates the income eligibility standards and deductions based on the poverty level. It also adjusts maximum SNAP allotments.
- The exact COLA increase varies year to year, but is designed to help SNAP benefits keep up with rising living costs. For fiscal year 2024, the maximum allotment for a family of four in the 48 contiguous states and D.C. will be $973.