Social Security: New Proposal Says COLAs Won’t Affect SNAP Benefits — What Does That Mean for You?
Written by
Vance Cariaga
Edited by
Ashley Almario
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Getting a cost-of-living adjustment (COLA) added to your Social Security benefit every year is mostly good news because the adjustment boosts your monthly payment and acts as a hedge against inflation. The one downside is that the extra money also increases your income and might disqualify you from certain benefits, including Supplemental Nutrition Assistance Program (SNAP) benefits, formerly known as food stamps.
A pair of U.S. congresswomen — Rep. Gwen Moore (D-Wisc.) and Rep. Jan Schakowsky (D-Ill.) — want to change that by ensuring that annual COLAs do not alter eligibility for SNAP.
On Friday, July 28, Moore and Schakowsky introduced the COLAs Don’t Count Act, which would exempt annual Social Security COLAs from SNAP eligibility and benefit determinations. Veteran’s benefits and state supplementation program payments would also be exempt.
The proposed legislation is particularly timely this year because the 2023 Social Security COLA is 8.7% — the biggest bump in more than 40 years. The average Social Security check rose by more than $140 a month thanks to the COLA, but it also pushed many recipients above SNAP income eligibility thresholds.
SNAP is a food purchasing assistance program for low-income households. It’s overseen by the U.S. Department of Agriculture and administered at the state level. Nearly 9 million Social Security and Supplemental Security Income (SSI) beneficiaries receive SNAP benefits. To qualify, you must meet certain income limits. Once your income moves above those limits, your benefits are reduced or eliminated.
The 2023 COLA increase led to reduced food-stamp benefits for more than one-third (36%) of SNAP participants, according to USDA data cited in the press release from Moore’s office. The average SNAP reduction is $32 a month, and an estimated 28,000 SNAP households “completely lost their eligibility,” the press release said.
“Social Security’s COLA is a vital enhancement to account for inflation because it helps support sustained and sufficient retirement and disability benefits,” Moore said in a statement. “This is especially important for so many beneficiaries who rely on Social Security as their only source of income. But COLA increases should not cost one’s food assistance, especially since these same individuals are more likely to be feeling the pain of higher food prices.”
The idea behind her bill is to better align SNAP with the needs of recipients.
“Without congressional action, many vulnerable Americans, including seniors, veterans, and individuals with disabilities could see their SNAP benefits decrease annually,” Moore added. “I know my office received calls from concerned constituents whose SNAP benefits were adversely impacted by recent COLAs and so did my colleagues.”
The 2023 Social Security COLA had an almost immediate impact on SNAP and other benefits in some parts of the country. In Louisiana, for example, more than 145,300 SNAP households (about 34% of the total) faced monthly benefit reductions, according to the Louisiana Department of Children & Family Services. The average reduction was a little more than $47 a month.
The reductions also coincided with the end of nationwide emergency SNAP allotments approved during the COVID-19 pandemic.
The COLAs Don’t Count Act aims to address these problems by protecting SNAP benefits from COLA adjustments. For the bill to become law, however, it must first be passed by the Republican-led U.S. House. That could be a challenge because of attempts by some GOP lawmakers to cut rather than bolster SNAP.
“Cost-of-Living Adjustments are designed to ensure that Social Security and SSI benefits are not eroded by inflation, but, unfortunately, COLAs are being used to undermine these very programs,” Schakowsky said in a statement.
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