SNAP Benefits Are Higher in 2023. But Will It Be Enough?

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

Record numbers of people used food pantries last year, reflecting a growing food insecurity. 

Supplemental Nutrition Assistance Program (SNAP) benefits have increased significantly in recent years. This is partly a reflection of the higher cost of living, as well as changes in the way benefits get calculated. Higher SNAP payments have helped reduce poverty and food insecurity, but unfortunately, millions of Americans still struggle to put food on the table.

How high are SNAP benefits for 2023?

SNAP benefits are calculated by taking the maximum amount for that household size and making deductions depending on income and other factors. In Oct. 2022, SNAP benefits increased by about 12.5% to reflect the higher cost of living. This figure will be adjusted again in Oct. 2023.

In much of the country, the maximum monthly SNAP benefit for a household of four is now $939. That’s about $7.70 per person per day. However, according to the Center on Budget and Policy Priorities (CBPP), the average SNAP benefit for a household of four is $718. That breaks down to about $5.90 per person per day — less than $2 per meal.

Maximum SNAP benefits by household size for 2023 fiscal year in most states

Estimated average SNAP benefits for 2023 fiscal year in most states

The Thrifty Food Plan

The USDA’s Thrifty Food Plan is a crucial part of calculating SNAP benefits. It’s essentially the USDA’s estimate of the lowest-cost way to feed a household healthily. It includes a mix of dairy, fruit and vegetables, grains, proteins, and other items. Its thrifty food basket is the basis for all SNAP benefit calculations.

In 2021, the USDA overhauled the Thrifty Food Plan for the first time in decades. Until then, the food basket operated on a number of outdated assumptions in terms of what people ate and how much time they had to prepare meals. The updates meant an increase of over 20% in food benefits, which the CBPP estimated would lift 2.4 million SNAP participants out of poverty.

Are SNAP benefits enough?

The updates to the Thrifty Food Plan mean that families are now better able to feed themselves using SNAP benefits than they were a few years ago. However, inflation and an end to emergency allotments are both big issues. There were record numbers of people at food banks last year, and the Urban Institute reports that food insecurity is rising.

Inflation already means SNAP benefits don’t go as far

At a fundamental level, inflation makes everything more expensive. Housing costs are higher. Utility costs are higher. Medical costs are higher. And lower income households who spend a higher percentage of their cash on essentials are hardest hit. As a result, some families have had to choose between paying bills or putting food on the table. There’s just not enough money in their bank accounts to cover everything.

In terms of SNAP benefits, which get recalculated annually, the value of those payments shrinks with every passing month. The current system isn’t designed to handle double digit inflation. For example, SNAP adjustments get announced in June and implemented in October. By the time the June changes came into effect, the cost of the USDA’s food basket had already increased by almost $30 from $939.90 to $967.70. In some households, that’s 15 meals.

An end to emergency allotments

SNAP benefits may be higher than ever, but some households will receive less money next year. Here’s why: Emergency allotments will almost certainly come to an end. Emergency allotments are extra food benefits that states have been able to pay because of the pandemic.

Provisions during the public health emergency allowed states to waive certain SNAP requirements and pay extra money. All households could receive the maximum benefit and those that already did could get an extra $95 a month. The Urban Institute estimates that emergency allotments kept 4.2 million people out of poverty in the fourth quarter of 2021.

A number of states have already stopped making the extra payments, and when the national health emergency ends, others will have to follow suit. We don’t know exactly when the health emergency will end, but when it does it will mean a number of families will receive less money.

Food insecurity is a growing issue

Inflation put pressure on most households last year, making it harder to save money and — in some cases — put food on the table. Increased SNAP benefits have certainly made a difference and helped reduce hunger. Unfortunately, the higher benefits may not be enough to beat inflation and other SNAP changes.

If you aren’t sure how to pay for your food costs, see if you can qualify for any other food assistance programs. You may also be able to get emergency help at nearby food pantries and soup kitchens. Call United Way on 2-1-1 for more information on local assistance programs.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our expert loves this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our expert even uses it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

 Read More