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Discover how cost of living adjustment (COLA) will affect your SNAP benefits next year

The cost of living adjustment (COLA) not only impacts retirement benefits, but also the Supplemental Nutrition Assistance Program SNAP, which provides food stamps via an EBT card. This adjustment, carried out by the United States Department of Agriculture (USDA), ensures that allocations reflect the rise in living costs, allowing families to maintain a basic standard of living.

Unlike the annual COLA adjustment for retirement benefits, which is announced in October by the Social Security Administration, the SNAP adjustment is made at the beginning of the federal fiscal year, on October 1. This means SNAP beneficiaries see these changes during the current year, whereas increases in retirement benefits apply to the following year.

How and when SNAP benefits are adjusted

The USDA annually adjusts SNAP maximum allocations, deductions, and income eligibility standards based on changes in the cost of living. According to official figures, nearly 5 million seniors receive both SNAP and retirement benefits, highlighting the importance of these adjustments for a significant portion of the population.

“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,” explains the USDA on its website.

Eligibility standards and income limits

Income eligibility standards for SNAP are set by law and based on the poverty level. Gross monthly income limits are set at 130% of the poverty level for household size, which means total household income before deductions. On the other hand, net monthly income, which is gross income minus allowable deductions, is set at 100% of the poverty level.

Each year, the USDA announces the COLA and new maximum allocations for SNAP benefits. For example, last year, the 2024 COLA was announced on August 3, so this year’s announcement regarding the 2025 COLA increase and its impact on SNAP benefits is expected at a similar time.

Maximum allocations will increase for the 48 states and DC, Alaska, Guam, and the U.S. Virgin Islands. For this year, the maximum allocation for a family of four in the 48 states and DC was $973, and this amount is expected to increase for the new fiscal year.

For SNAP beneficiaries, these adjustments mean an update in the benefits they receive, in line with the rising cost of living. This is crucial to ensure that families can meet their basic food needs without their purchasing power being eroded by inflation.

Impact on seniors and families

The fact that nearly 5 million seniors receive both SNAP and retirement benefits underscores the importance of these adjustments. For many of these beneficiaries, SNAP food stamps are an essential part of their monthly budget, helping them cover food costs that would otherwise be unaffordable.

The cost of living adjustment process is meticulous and based on detailed economic data to ensure that changes accurately reflect the rise in the cost of living. The USDA reviews inflation data and adjusts maximum allocations, deductions, and income eligibility standards accordingly.

This adjustment process is not only carried out for SNAP but also for other assistance programs that depend on these metrics. Implementing these changes is crucial to maintaining the program’s goal of providing adequate assistance to those who need it most.

Expectations for the next COLA

With the announcement of the 2025 COLA expected in the coming months, SNAP beneficiaries can anticipate an increase in their benefits to help mitigate the effects of inflation. These adjustments are essential to ensure that beneficiaries can maintain a basic standard of living and cover their food needs.

SNAP beneficiaries can prepare for these changes by staying informed through official USDA channels and local assistance offices. Additionally, it is important for beneficiaries to review their benefits and ensure their income and deductions are up-to-date to receive the correct amount of assistance.

Conclusion

The cost of living adjustment (COLA) has a significant impact on the benefits of the Supplemental Nutrition Assistance Program (SNAP), ensuring that beneficiaries can maintain their standard of living despite rising costs. With the next round of adjustments expected for the 2025 fiscal year, it is crucial for beneficiaries to stay informed and prepared for these changes, which aim to provide necessary relief during times of inflation.

Coordination between the USDA and other assistance programs ensures these adjustments are accurate and reflect the real needs of beneficiaries, helping millions of families effectively meet their basic food needs.

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