The Impact of SNAP Benefits Cliff on Working Families

Working families receiving Supplemental Nutrition Assistance Program (SNAP) benefits face a significant challenge known as the benefits cliff. This situation occurs when a small increase in earnings leads to a reduction or loss in public assistance, leaving families with fewer resources to feed their children despite working more hours or receiving a pay raise.

Understanding the Benefits Cliff

A benefits cliff is defined by the Department of Health and Human Services (HHS) as a situation where the reduction in benefits equals or exceeds the increase in earnings that triggered it. As such, families may see minimal improvement or even a decline in their finances when they work extra hours or receive a raise.

Families like Alicia Freemont’s experience this predicament firsthand. In Nebraska, Alicia lost $150 in monthly SNAP benefits in early 2024 because her income was $19 above the eligibility limit for her household. Despite her pay increase, the loss of benefits significantly impacted her ability to support her family.

Sociological Insights

Stephanie Gonzalez Guittar, an associate professor at Rollins College, emphasizes that small income increases often do not significantly enhance a family’s quality of life due to existing living costs.

For instance, Alicia worked full-time as a manager at a grocery store in Nebraska but had to take additional shifts to compensate for the lost benefits. Her financial troubles were compounded further when a car accident injured her, decreasing her work hours.

The Broader Problem

Many individuals find themselves in similar situations. Research consistently shows that losing SNAP benefits correlates with increased food hardship. According to a 2019 Health Affairs study, families losing SNAP benefits reported higher food and energy insecurity than those who maintained their benefits.

Stephen Grimaldi, executive director of New York Common Pantry, highlights that families nearing an eligibility threshold often continue to face the same financial pressures even after crossing it.

A 2024 HHS study revealed that concerns about benefit loss deterred current and former recipients from pursuing higher-paying job opportunities. Reports from Washington University in St. Louis found that over one in five workers receiving public benefits sometimes declined extra work to avoid falling into a worse financial situation.

Why SNAP Has a Benefits Cliff

SNAP benefits taper as income increases. While benefits decline gradually with rising income, a strict income eligibility threshold often results in complete ineligibility for SNAP. This can still affect households significantly, even if they would justify continued benefits based on other expenses.

States can use Broad-Based Categorical Eligibility (BBCE) to soften the impact. This policy allows states to raise SNAP’s gross-income limit above federal levels, helping families remain eligible amidst rising earnings. Nebraska, for example, sets a higher threshold, allowing many families to retain benefits.

Moving Forward

Although states can extend the eligibility threshold, a definite eligibility boundary exists. To mitigate abrupt disruptions, Grimaldi suggests a gradual reduction in benefits as incomes rise, providing families better incentives to work more without suddenly losing support.

Individuals like Alicia, who continue to struggle without SNAP support, often make sacrifices to ensure their children are fed. Alicia admits skipping meals herself to prioritize her children’s needs.

Alicia’s story is a testament to why a gradual transition could improve financial benefits for working families. As she reflects, It shouldn’t feel this hard.