SNAP Benefits: Updated Resource Limits After 2025 COLA

As the Supplemental Nutrition Assistance Program (SNAP) adjusts to meet the needs of low-income households, key changes are set to take effect starting October 1, 2024. These adjustments include an increase in the asset limit, which plays a crucial role in determining eligibility for SNAP benefits.

If you’re a SNAP recipient or planning to apply, understanding these updated resource limits is essential.

New Asset Limits After 2025 COLA

The asset or resource limit for SNAP benefits is a critical threshold that applicants must meet to qualify. This limit includes cash on hand, money in bank accounts, and other countable resources. The changes for 2025 are as follows:

• Current Asset Limit (until September 30, 2024): The asset limit for households is set at $2,750.
• New Asset Limit (effective October 1, 2024): The asset limit will increase to $3,000.

This increase means that households applying for SNAP benefits can have up to $3,000 in countable resources without affecting their eligibility. This adjustment reflects the Cost of Living Adjustment (COLA) and aims to better accommodate the financial realities faced by low-income families.

Impact on Eligibility

The increase in the asset limit may positively impact many households that were previously ineligible for SNAP benefits due to having resources just above the $2,750 threshold. These households can reapply on or after October 1, 2024, to see if they qualify under the new rules.

Special Rules for Seniors and Disability Recipients

The SNAP program offers different asset limits for households with elderly or disabled members. These special rules are particularly important for those who are 60 years or older or have a qualifying disability.

• Current Asset Limit (until September 30, 2024): The asset limit for these households is $4,250.
• New Asset Limit (effective October 1, 2024): The asset limit will increase to $4,500.

This increase allows these households to retain more resources while still qualifying for SNAP benefits. The $250 increase could make a significant difference for seniors or disabled individuals who may have slightly more savings or assets.

Understanding Countable and Exempt Resources

Not all resources are counted when determining eligibility for SNAP benefits. Here’s a quick overview:

Countable Resources

These are resources that count towards the asset limit:

• Cash on hand
• Money in savings or checking accounts
• Stocks, bonds, and mutual funds
• Some life insurance policies that can be converted to cash

Exempt Resources

These resources are not counted towards the asset limit:

• A primary home and lot
• Retirement and pension plans
• Resources of individuals receiving Supplemental Security Income (SSI) or Temporary Assistance for Needy Families (TANF)
• Vehicles: In most cases, vehicles are exempt, but the rules can vary by state.

Understanding these distinctions is crucial for applicants to accurately assess their eligibility.

Income Limits and SNAP Eligibility

Besides asset limits, households must meet specific income criteria to qualify for SNAP. Here’s how it works:

Gross and Net Income Limits

• Gross Income: This is the total income before deductions. For most households, gross income must be at or below 130% of the Federal Poverty Level (FPL).
• Net Income: This is the income after allowable deductions, such as housing costs, child care, and medical expenses for elderly or disabled members. Net income must be at or below 100% of the FPL.

For households with an elderly or disabled member, meeting the net income limit is particularly important if their gross income exceeds the 130% FPL threshold. If a household meets these income requirements, the asset limit of $4,500 (starting October 1, 2024) applies.

Separate Household Consideration for Seniors and Disabled Individuals

Households with elderly or disabled members may qualify for separate SNAP benefits if they typically buy and prepare food separately from others in the household. This situation could arise when a senior lives with family members but manages their own food independently.

• Income Consideration: The gross income of the remaining household members must not exceed 165% of the poverty level to qualify for separate household status.

This option provides flexibility for seniors and disabled individuals, allowing them to maintain their independence while still receiving SNAP benefits.

Certification Period for Seniors

Seniors aged 60 and older with no income can apply for SNAP using the Elderly Simplified Application. This application streamlines the process and offers a certification period of 36 months, meaning seniors won’t have to reapply for benefits every year.

However, they must report any earnings or lottery/gambling winnings over $4,250 during this period. This reporting ensures that benefits are adjusted according to any significant changes in income or resources.

The 2025 COLA increase brings important updates to the SNAP program’s asset limits, particularly benefiting seniors and individuals with disabilities. By raising the resource limits, more households may qualify for food assistance, helping to alleviate financial strain.

Whether you’re currently receiving SNAP benefits or planning to apply, understanding these new rules is crucial for ensuring you receive the support you need.

FAQs