Navigating the Benefits Cliff for SNAP Recipients

Working families receiving Supplemental Nutrition Assistance Program (SNAP) benefits often face a challenge known as the benefits cliff. This occurs when an increase in income results in a loss of public assistance that exceeds the gain from the additional earnings, leaving families with less overall income to manage their expenses and feed their children.

Federal researchers, academics, and organizations have documented how crossing these eligibility thresholds complicates decisions about working extra hours, accepting raises, or transitioning to better-paying jobs. While families may earn more, the reduction in benefits can significantly affect their overall financial situation.

Understanding SNAP and Benefits Cliffs

SNAP provides assistance to low- and no-income households, helping over 35 million people across the United States afford food. However, when household income rises, SNAP benefits may decrease or be completely cut off, creating a benefits cliff.

The Department of Health and Human Services (HHS) defines a benefits cliff as a scenario where a reduction in assistance matches or surpasses the income increase causing it. This means workers may receive a raise or take additional hours but gain little or even see a decline in their household finances.

Stephanie Gonzalez Guittar, an associate professor of sociology at Rollins College, highlights that small income increases may not substantially change a family’s quality of life due to existing living costs.

Alicia’s Story: $19 Over the Limit

Alicia Freemont, a mother in Nebraska, encountered the reality of the benefits cliff. In early 2024, her monthly SNAP benefits of $150 were cut when her income exceeded the eligibility threshold by less than $20. As a single mother working full-time, Alicia faced the challenge of replacing those lost benefits by working up to 18 hours a day.

After experiencing a car accident, Alicia applied for assistance again but was denied. Despite changes in her personal circumstances, her family continued to struggle financially. Credit cards became a vital means to cover expenses while working part-time and managing medical appointments.

Research Highlights Wider Issues

Research has consistently shown that losing SNAP benefits contributes to increased food insecurity, even when a family’s income improves. A 2019 Health Affairs study revealed that families who lost SNAP benefits had higher odds of household and child food insecurity than those maintaining consistent benefits.

In 2021, the American Journal of Clinical Nutrition reported that former SNAP recipients, within a year of losing benefits, faced significantly higher odds of severe food insecurity compared to current recipients. Additional studies have indicated that families sometimes resort to turning down extra work or promotions to avoid crossing eligibility thresholds that worsen their financial situations.

The Mechanics of SNAP Eligibility and Cliffs

SNAP benefits taper as income increases, calculated partly based on net income with a 20 percent deduction for earned income. Generally, benefits decrease by 24 to 36 cents for each additional dollar earned, softening the impact for most recipients.

However, families face income eligibility limits set at 130 percent of the federal poverty level, which can disqualify them from benefits. Some states implement Broad-Based Categorical Eligibility (BBCE) policies to raise income limits, like Nebraska, which set the threshold at 165 percent of the federal poverty level.

While this policy helps many families remain eligible, it doesn’t entirely remove the cliff effect. A gradual decrease in benefits, instead of abrupt cuts, can provide a clearer incentive for families to increase earnings without losing crucial support.

Alicia’s Continuing Struggle

Two years after losing SNAP benefits, Alicia still battles to support her family. She prioritizes her children’s needs over her own, often skipping meals to ensure her sons have enough food.

Alicia vocalizes the emotional toll faced daily: “I’ll skip a meal because, if we have leftovers, I’d rather it go to the boys.”

Despite the persistent challenges, Alicia reflects on her experience wishing for eligibility that would alleviate financial struggles and allow her family to manage bills more effectively.

For many families like Alicia’s, the benefits cliff remains a significant hurdle in achieving financial stability and maintaining a basic quality of life.