Mandatory Spending

Function 600 - Income Security

Tighten Eligibility and Determinations of Income for the Supplemental Nutrition Assistance Program

CBO periodically issues a compendium of policy options (called Options for Reducing the Deficit) covering a broad range of issues, as well as separate reports that include options for changing federal tax and spending policies in particular areas. This option appears in one of those publications. The options are derived from many sources and reflect a range of possibilities. For each option, CBO presents an estimate of its effects on the budget but makes no recommendations. Inclusion or exclusion of any particular option does not imply an endorsement or rejection by CBO.

Billions of dollars 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015-2019 2015-2024
Change in Outlays                        
  Apply income and asset limits to categorically eligible households 0.0 -0.5 -1.2 -1.2 -1.2 -1.2 -1.2 -1.2 -1.2 -1.2 -4.2 -10.0
  Apply income and asset limits to all households and further lower income eligibility limit to 100 percent of the federal poverty guidelines 0.0 -2.4 -4.9 -4.8 -4.7 -4.7 -4.6 -4.6 -4.6 -4.6 -16.7 -39.7

Note: This option would take effect in October 2015. Estimates are relative to CBO’s August 2014 baseline projections.

The Supplemental Nutrition Assistance Program (SNAP) provides benefits to low-income households to help them purchase food. Eligibility is generally based on participation in other government assistance programs or on the income and assets of a household. Most households that receive SNAP benefits—about 90 percent in fiscal year 2011—are considered to be “categorically eligible”; that is, they automatically qualify for benefits on the basis of their participation in other federal or state programs.

Among categorically eligible households, the majority—almost three-quarters in 2011—qualify for benefits under what is termed broad-based categorical eligibility. Namely, all household members receive or are authorized to receive noncash benefits from the Temporary Assistance for Needy Families (TANF) program (such as child care, transportation assistance, or even a token benefit such as a pamphlet describing TANF).

This option has two approaches for reducing SNAP spending. The first approach would apply the standard income and asset requirements to people who would otherwise be entitled to benefits through broad-based categorical eligibility. The second approach would incorporate the first approach and also lower the income limit for all households from 130 percent of the federal poverty guidelines to 100 percent.