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It isn’t easy to prepare for a loss in income, but there are steps you can take.
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The emergency Supplemental Nutrition Assistance Program (SNAP) benefits that some households have come to rely on will no longer be paid after February. In some states, families have been able to receive additional food benefits since March 2020, but now those pandemic-related benefits will end nationwide.
What the end to emergency allotments means
Normally, SNAP benefits are calculated by taking the maximum benefit amount and making deductions depending on income and other factors. But the emergency allotments meant states could waive those rules and pay families the maximum amount for their household size. Families that already received the maximum could get up to $95 in extra benefits.
According to the Center on Budget and Policy Priorities (CBPP), the maximum SNAP payment for a family of four in 2023 is $939, but the average benefit is $718. That shows that when the emergency allotments end, some families will receive considerably less money. Indeed, according to the Food Research and Action Center, on average, SNAP recipients will lose $82 a month.
Last year’s spiraling inflation hit lower-income households harder. It’s more difficult to cut back when you’re already spending a large amount of your income on essentials. The extra SNAP money meant families had more in their bank accounts to cover other costs such as rent and utilities.
How to prepare for the end of emergency SNAP benefits
As of January, over 30 states were still paying emergency allotments, and most of them will likely continue to do so in February. However, if you live in one of those states, it’s important to start thinking about how you’ll cope come March. Make sure your income and other details are up to date with your local agency — if you’ve lost hours or your income is less than it was, you may be entitled to more money.
In the near term, you might make the most of the extra money to buy staples in bulk this month that will last you into March and April. Bear in mind that you don’t have to spend all your SNAP money every month. Depending on how tight your budget is today, perhaps you could also carry some of your extra SNAP money over so you’ll have a little more when the extra payments end.
Here are four additional steps that might help.
1. Take stock of your finances
If you’ve gotten used to additional SNAP benefit payments, losing that extra money will likely come as a blow. You may feel like you’ve already made dramatic cuts to your budget to handle the crazy cost of living increases, but unfortunately you may need to reorganize your spending even more.
Work out how much less you will receive and what impact that will have on your total income. Use the new figure and revisit your monthly costs versus your income. If you spend more than you bring in, look for any areas you can cut back or ways you can bring in more money. There are no easy answers, and the temptation to use a credit card or take on debt to handle the difference is understandable. The trouble is that debt payments can add up and will eat into your monthly budget, making life even more difficult down the road.
2. See if you’re eligible for other financial assistance
SNAP is not the only federal assistance program out there. In terms of food assistance, you may qualify for WIC, also known as the Special Supplemental Nutrition Program for Women, Infants and Children. People over 60 years old may be eligible for the Commodity Supplemental Food Program (CSFP).
READ MORE: 4 Little-Known Perks of WIC Benefits
Housing is one of the biggest costs for most families. Individual states and territories have different rental assistance programs, so if you haven’t already, see if you are eligible. The Housing and Urban Development (HUD) also runs a public housing program for low-income families.
You may also be able to get help to cover your utility bills through the Low Income Home Energy Assistance Program (LIHEAP). Head to benefits.gov or call United Way by dialing 2-1-1 to find out more about financial assistance programs in your area.
3. Get the most out of the SNAP benefits you still receive
The end of emergency allotment payments means many people will get less SNAP benefits in March. However, there are ways to make the money you do receive go further. For example, with the Double Up Food Bucks program, you’ll get $2 worth of fruit and vegetables for every $1 you spend at participating markets and stores. It’s a great way to get fresh produce, effectively at half price.
Some cash back apps also work with your Electronic Benefits Transfer (EBT) card, meaning you can earn rewards on your grocery shopping. If you need to buy more expensive items, such as meat or laundry detergent, hunt around for coupons or special offers that will reduce the costs.
4. Look into emergency help
If you are having trouble feeding yourself or your family, you are not alone. More than 50 million people used food banks or food pantries in 2021, according to Feeding America. Search for nearby food pantries and soup kitchens and find out how they work. There are no rules to stop you visiting several food pantries in your area, but if you haven’t been to one before, bear in mind that you might need to arrive early to get certain items. You may also need to provide some form of ID or proof of address.
Bottom line
Losing the extra SNAP benefits in March will put a hole in many family budgets. While there are no easy answers, don’t ignore the problem. The more you can plan now and hopefully even adjust your spending, the less painful the drop in income will be.
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