Receiving a cost-of-living adjustment (COLA) annually for your Social Security benefit can be a welcome boost to your monthly income, offering protection against inflation. However, this benefit can come with a downside: the increased income may render you ineligible for certain crucial benefits like the Supplemental Nutrition Assistance Programme (SNAP).
Recognising the significance of addressing this issue, two U.S. congresswomen, Rep. Gwen Moore (D-Wisc.) and Rep. Jan Schakowsky (D-Ill.), have taken a stand. On July 28, they introduced the COLAs Don't Count Act, a proposed piece of legislation aimed at safeguarding SNAP eligibility and benefit determinations from the impact of annual Social Security COLAs. Additionally, the act would extend the exemption to include Veteran's benefits and state supplementation programme payments.
This legislative proposal comes at a timely moment, as the 2023 Social Security COLA has been the most substantial increase in over four decades, standing at 8.7%. While this hike has resulted in an average increase of more than $140 per month in Social Security checks, it has also caused many recipients to surpass SNAP income eligibility thresholds.
SNAP is a vital food purchasing assistance programme for low-income households, overseen by the U.S. Department of Agriculture and administered at the state level. Presently, nearly 9 million Social Security and Supplemental Security Income (SSI) beneficiaries receive SNAP benefits, subject to specific income limits. Once their income exceeds those thresholds, their benefits are either reduced or eliminated.
According to data from the U.S. Department of Agriculture, cited in a press release from Rep. Moore's office, the 2023 COLA increase led to reduced food stamp benefits for around 36% of SNAP participants, affecting an estimated 28,000 households that completely lost their SNAP eligibility. On average, SNAP benefits were reduced by $32 per month.
Rep. Moore emphasises that Social Security COLAs are crucial for maintaining adequate retirement and disability benefits amid inflation. However, she believes that these increases should not come at the cost of one's food assistance, especially considering that those relying solely on Social Security are more likely to feel the burden of rising food prices.
The COLAs Don't Count Act's core objective is to ensure that SNAP aligns better with the needs of its recipients. By taking congressional action, Rep. Moore seeks to prevent vulnerable Americans, including seniors, veterans, and individuals with disabilities, from experiencing annual decreases in their SNAP benefits due to COLAs.
The impact of the 2023 Social Security COLA was felt almost immediately in certain regions. For instance, in Louisiana, more than 145,300 SNAP households (approximately 34% of the total) faced reductions in their monthly benefits, with an average decrease of slightly over $47.
The reductions coincided with the end of nationwide emergency SNAP allotments that were approved during the COVID-19 pandemic, further exacerbating the situation.
However, passing the COLAs Don't Count Act into law poses a challenge as it requires approval from the Republican-led U.S. House. Some GOP lawmakers have shown a preference for cutting SNAP benefits instead of supporting their enhancement.
According to Rep. Schakowsky, the purpose of COLAs was to prevent expansion from destroying government-backed retirement and SSI benefits. Incidentally, the continuous maltreatment of COLAs undermines these principal projects.
In conclusion, the proposed COLAs Don't Count Act represents a crucial effort by Rep. Moore and Rep. Schakowsky to ensure fairness and continuity of vital SNAP benefits for those who depend on them most. By safeguarding SNAP from the impact of COLA adjustments, they strive to protect vulnerable individuals and uphold the principles of social welfare in the United States.
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