2025 SNAP COLA – How the October 1st Adjustment Will Affect Your Food Stamp Benefits

The cost of living adjustment (COLA) is a critical mechanism that impacts not only retirement benefits but also the Supplemental Nutrition Assistance Program (SNAP), which provides food assistance via an Electronic Benefits Transfer (EBT) card. Managed by the United States Department of Agriculture (USDA), this adjustment ensures that SNAP allocations align with the rising cost of living, helping families maintain their basic needs.

Timing of Adjustments

While the Social Security Administration (SSA) announces COLA adjustments for retirement benefits every October, these increases don’t take effect until January of the following year. In contrast, the USDA adjusts SNAP benefits at the start of the federal fiscal year, which begins on October 1. This means SNAP beneficiaries experience these changes during the current year, making it crucial for them to stay informed about upcoming adjustments.

How Benefits Are Adjusted

Each year, the USDA adjusts several components of SNAP, including maximum allocations, deductions, and income eligibility standards, based on changes in the cost of living. These adjustments are particularly significant for the nearly 5 million seniors who receive both SNAP and retirement benefits.

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The USDA explains this process clearly: “We adjust the maximum allocations, deductions, and income eligibility standards for SNAP at the start of each federal fiscal year. The fiscal year begins on October 1. Changes are based on changes in the cost of living. The cost of living is the amount of money needed to maintain a basic standard of living.”

Maximum Allotments

The USDA uses a detailed process to determine the maximum allotments for SNAP benefits, ensuring that they reflect the actual cost of living. Here’s how it works:

1. Thrifty Food Plan (TFP): The maximum SNAP allotment is linked to the cost of the USDA’s Thrifty Food Plan (TFP), which represents the cost of a nutritious diet for low-income households. For example, in August 2021, the USDA updated the TFP, resulting in an increase in SNAP benefits to help families afford a healthy diet.
2. Household Size: Maximum monthly allotments are set based on household size. For fiscal year 2024, the allotments are as follows:
   • 1-person household: $291
   • 2-person household: $535
   • 3-person household: $766
   • 4-person household: $973
   • Each additional person adds $219 to the maximum allotment.
3. Benefit Calculation: To calculate the actual SNAP benefit for a household, the USDA assumes that families will spend 30% of their net income on food. Households with no net income receive the maximum benefit for their size, while those with net income have their benefits reduced by 30% of their net income.

Impact

Income eligibility standards for SNAP are based on the poverty level, with gross monthly income limits set at 130% of the poverty level and net monthly income at 100%. Each year, the USDA announces the COLA and updates the maximum allocations for SNAP benefits accordingly.

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For instance, the 2024 COLA was announced on August 3, 2023, and similar announcements are expected in August 2024 for the 2025 fiscal year. The USDA will adjust the maximum allocations for various regions, including the 48 contiguous states and D.C., Alaska, Guam, and the U.S. Virgin Islands.

These adjustments are crucial as they ensure that SNAP benefits keep pace with inflation, allowing beneficiaries to meet their basic food needs. For example, the maximum allotment for a family of four in the 48 states and D.C. was $973 for fiscal year 2024, and this amount is expected to increase in the upcoming fiscal year.

Preparing for Changes

SNAP beneficiaries should stay informed about these annual adjustments by checking official USDA channels and local assistance offices. Ensuring that their income and deductions are up-to-date is also important to receive the correct amount of assistance. By staying proactive, beneficiaries can better navigate the changes brought about by the COLA adjustments.

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FAQs

When does the USDA announce COLA adjustments for SNAP benefits?

The USDA typically announces COLA adjustments in August, with changes taking effect on October 1.

How are SNAP benefits calculated?

SNAP benefits are calculated based on household size, net income, and the Thrifty Food Plan.

What is the maximum SNAP benefit for a family of four in 2024?

The maximum benefit is $973 for a family of four in the 48 states and D.C.

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How does the COLA affect SNAP benefits?

The COLA adjusts SNAP benefits to keep up with inflation and the rising cost of living.

Do SNAP benefits increase every year?

Yes, SNAP benefits are adjusted annually based on changes in the cost of living.