SNAP Update: New Snap Benefits COLA Payment Increase

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New maximum payment amounts for SNAP benefits have been announced by the U.S. Food and Nutrition Service (FNS).

In October 2024, the top amount available for claimants of Supplemental Nutrition Assistance Program (SNAP) benefits will increase across all 49 states and U.S. territories. There is one state that will see its maximum benefit drop. The new maximum rates will be in place for the duration of the 2025 fiscal year until the Cost of Living Adjustment (COLA) is set again for the 2026 fiscal year.

What are Snap Benefits:

SNAP provides monthly financial assistance to low-income households across all 50 states, Washington D.C., and U.S. territories. These funds are delivered through electronic benefit transfer (EBT) cards, which can be used at participating stores, and are paid monthly.

Snap Benefit recipients will have to wait until October to see an increase, as changes will be in place from October 1 and going forward. The Food Action and Research Center says around 36 percent of households that get SNAP benefits receive the maximum allotment.

Across the 48 contiguous states and Washington D.C., the maximum amount available to an individual claimant living on their own will rise to $292 per month, up by $1 from $291. For a household with four people, it will increase by $2 from $973 per month to $975.

What Deductions are allowed for the SNAP Program:

The following deductions are allowed for SNAP:

• A 20-percent deduction from earned income.
• A standard deduction of $198 for household sizes of 1 to 3 people (higher for some larger households and different for households in Alaska, Hawaii, the U.S. Virgin Islands, and Guam).
• A dependent care deduction when needed for work, training, or education.
• Medical expenses for elderly or disabled members that are more than $35 for the month if they are not paid by insurance or someone else. This is described on the elderly and disabled page.
• In some states, legally owed child support payments.
• A standard shelter deduction for homeless households of $179.66.
• Excess shelter costs as described below.

Allowable shelter costs include per the USDA website:

• Fuel to heat and cook with.
• Electricity.
• Water.
• The basic fee for one telephone.
• Rent or mortgage payments and interest.
• Taxes on the home.

Please remember some states allow a set amount for utility costs instead of actual costs.

The amount of the shelter deduction is capped at (or limited to) $672 unless one person in the household is elderly or disabled per the USDA website. The limit is higher in Alaska, Hawaii, and Guam. For a household with an elderly or disabled member, all shelter costs over half of the household's income may be deducted.

Anyone wanting to know if they qualify for SNAP benefits must apply in their state of residence and must meet certain requirements, including resource and income limits, which are outlined by the USDA on its website. Rules can vary between states because SNAP is administered at the state and local level, while the funds are provided by the federal government.