It’s not just retirement benefits that are affected by the cost of living adjustment (COLA). The SNAP program, which gives food stamps through an EBT card, is also affected. The United States Department of Agriculture (USDA) made this change to make sure that allocations keep up with rising prices of living so that families can keep up a basic level of living.
The Social Security Administration announces the yearly COLA change for retirement benefits in October. The SNAP change, on the other hand, happens on October 1, which is the first day of the federal fiscal year. This means that these changes happen this year for people who get SNAP benefits, but they happen the next year for people who get higher retirement benefits.
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.
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.
For the 48 states, DC, Alaska, Guam, and the U.S. Virgin Islands, the maximum amounts that can be given will go up. The most that a family of four in the 48 states and DC could get this year was $973. This number is likely to go up for the next fiscal year.
For SNAP beneficiaries, these adjustments mean an update in the benefits they receive, in line with the rising cost of living. This is crucial to ensure that families can meet their basic food needs without their purchasing power being eroded by 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.
Impact on seniors and families
The fact that almost 5 million seniors get both SNAP and retirement payments shows how important these changes are. SNAP food stamps are an important part of many of these people’s monthly budgets because they help them pay for food that they wouldn’t be able to buy otherwise.
To make sure that the changes made to the cost of living correctly reflect the rise in the cost of living, the process is very careful and based on a lot of economic data. The USDA looks at data on inflation and makes changes to maximum amounts given, deductions allowed, and salary requirements based on that information.
This process of making changes is not only done for SNAP, but also for other aid programs that use these measures. Putting these changes into action is necessary to keep the program’s goal of helping those who need it most.