The Supplemental Nutrition Assistance Program (SNAP), a federal initiative that collaborates with state governments to offer vital financial support to low-income families, will grow next year to deal with the inflation. Every year, the United States Department of Agriculture (USDA) undertakes the task of adjusting SNAP benefits to account for the rising cost of living and inflation.
In a move to provide more substantial assistance to those in need, the food stamps are set to increase by a notable 3.5% to 3.7% by the year 2024. This means that a family of four will soon be eligible to receive a maximum monthly allowance of $973, representing a positive upturn from the current $939. These new benefit amounts are anticipated to come into effect starting October 2023.
The new SNAP benefits values, starting in October 2023
Although the USDA has not revealed what the new values will be, we can do an exercise starting from a hypothetical 3.7%. Of course, these are just examples, because the final amounts to be paid will be revealed from October 2023, when the new fiscal year begins to run.
These could be new example values, depending on the size of each of the beneficiary households (2023 values, versus potential 2024 values). Remember that this are not final amounts:
- 1 person: from $281 to $291
- 2 people: from $516 to $535
- 3 people: from $740 to $737
- 4 people: from $939 to $973
- 5 people:from $1,116 to $1,157
- 6 people: from $1,339 to $1,388
- 7 people: from $1,480 to $1,534
- 8 people: from $1,691 to $1,753
- Each additional members: from $211 to $218
How are SNAP benefits increments calculated for the next year?
Calculating SNAP benefits for the upcoming year is a meticulous process that hinges on various key components. Initially, the calculation commences by ascertaining the maximum benefit achievable for your household, a value rooted in the USDA’s Thrifty Food Plan (TFP). The TFP reflects the cost of procuring and preparing a nutritionally balanced diet for individuals within low-income households, and is adjusted annually every October to factor in inflation.
Following this, the household’s net income is scrutinized, signifying the funds available for food after essential expenses. This involves a sequence of deductions from the gross monthly income, including a standard deduction for basic unavoidable costs, a 20% earnings deduction, and additional deductions for dependent care, child support, medical expenses (for those in the household with disabilities or older adults incurring out-of-pocket medical costs exceeding $35 monthly), and excess shelter expenses.
Finally, SNAP anticipates that beneficiary families will allocate 30% of their net income towards food, with this expected contribution then subtracted from the maximum benefit to derive the final SNAP benefit amount. The USDA will unveil the new food stamps values, and for sure, will be posted in their official website.