SNAP Benefits Cliff: When More Money Can Leave Families Worse Off
SNAP families across the U.S. rely on food stamps to put food on the table. But the 'benefits cliff' can see that help removed.
SNAP benefits, a federal program providing food assistance to low-income households, can leave families worse off when earnings cross a certain threshold, according to experts. This phenomenon, known as a "benefits cliff," occurs when an increase in income results in a larger reduction or loss of SNAP benefits than the additional income received.
For low-income families, this can complicate decisions about taking extra hours, accepting raises, or moving into better-paying jobs. Alicia Freemont, a single mother in Nebraska, experienced this firsthand when she lost $150 in monthly SNAP benefits after earning $19 more than the eligibility limit. Despite her increased income, her financial situation worsened, leading her to seek additional work hours and ultimately losing her home.
Similar cases have been documented by researchers, who note that small income increases may not significantly improve a family's ability to meet their expenses due to the high cost of living. Alicia's situation is not unique, with studies showing that loss of SNAP benefits can lead to increased food insecurity and limited access to healthcare among former recipients.
Experts emphasize that eligibility thresholds are administrative measures, and crossing them does not necessarily result in improved financial stability.
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