How States Can Ease the Budget Crunch as Poor Families’ Incomes Rise

My last post summarized some policy changes Children’s HealthWatch advocates to avert losses of SNAP (food stamp) benefits before families are in good enough financial shape to make up the difference.

These are all changes Congress would have to authorize. Lots of luck there.

But as with the minimum wage, states can act when Congress won’t. CHW has some recommendations for them — and might have had another if it had finished its report after Congress passed the new Farm Bill.

Happily, several of CHW’s recommendations will be irrelevant to most states because their policies already make SNAP benefits available to households that aren’t quite so poor as the standard federal rules require.

Unhappily, states that haven’t probably won’t — at least so long as right-wingers control the policymaking apparatus. Witness how some are foregoing waivers that would preserve benefits for able-bodied adults without dependents.

Here nevertheless are CHW’s policy solutions for states.

One is broad-based categorical eligibility for SNAP — a policy already in place in 40 states and the District of Columbia.

With this option, states can raise the gross income cut-off to 200% of the federal poverty line, thus opening the door to more families whose deductions, e.g., housing, childcare costs, would bring their net income below the FPL. Nothing states can do about the net income cut-off.

States can also lift or altogether eliminate the standard $2,000 limit on “countable” assets, e.g., money in the bank, all but $4,650 of the value of a car.

Here again, CHW is more or less preaching to the choir, since only a few states still impose the standard asset test. And 35, plus the District have none at all.

Or perhaps the sermon was indirectly to House Republicans, who wanted the new Farm Bill to end broad-based categorical eligibility — and with it, states’ flexibility on asset tests.

A last recommendation would keep families from going over the SNAP cliff due to temporary income increases, e.g., occasional spurts in work hours, a lone child support check.

States can require recipients to recertify, i.e., prove they’re still eligible, yearly, instead of at the minimum four-month intervals. Some states and the District already do.

They can also, CHW says, smooth the “peaks and valleys” by averaging income over several months, rather than the prior four weeks.

Either or both of these would eliminate the off-again-on-again-experience that Witness to Hunger Tianna Gaines-Turner, among others, has complained of — and to some extent, the food insecurity they suffer because of the time lag between income dips and SNAP renewals.

Now, as I mentioned, states can do one thing CHW didn’t advocate due to timing. They can prevent the benefits cuts House Republicans got into the Farm Bill by giving SNAP households a somewhat larger LIHEAP (Low Income Home Energy Assistance Program) benefit.

The LIHEAP benefit can qualify some eligible households for a larger SNAP benefit than they’d otherwise receive. This, in a small way, would mitigate the much larger problem — benefits that are altogether insufficient to cover the costs of a reasonably healthful diet, even before they’re reduced due to income increases.

Eight states have thus far said they’d raise their LIHEAP benefits to the new $20 per year threshold. The District is likely to do the same, since the boost is in the Mayor’s proposed budget — and not controversial, so far as we can tell.

The move certainly is controversial in Congress. House Speaker John Boehner has called it “fraud,” though it’s nothing of the sort. Four House committee chairman have demanded to know what the U.S. Health and Human Services Department intends to do about it.

However this plays out, SNAP benefits still leave a very large number of people at risk of hunger, as Feeding America’s new Map the Meal Gap report suggests.

Not much more states can do about this either. The average nationwide cost of a meal is about $1.00 higher than the maximum per meal SNAP benefit for a four-person family. The gap in the District is closer to $2.00 — and presumably similar in other high-cost cities.

States can, however, minimize the number of people for whom hunger is an everyday experience — through better SNAP outreach, for example, and cross-linked benefits processing.

And to return to where I started, they can make it easier for families who’ve inched up the income scale to keep food on the table without coming up short on the rent.

 

 

One Response to How States Can Ease the Budget Crunch as Poor Families’ Incomes Rise

  1. […] also cited states’ varying responses to federal policy choices that can enable them to enroll more low-income people in SNAP (the food stamp program) — and […]

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