The cost of living adjustment (COLA) not only affects pension provision, but also the Supplemental Nutrition Assistance Program SNAPthe food stamps via a EBT card. This adjustment was made by the US Department of Agriculture (USDA) ensures that allocations reflect increases in the cost of living and thus enable families to maintain a basic standard of living.

In contrast to the annual COLA adjustment for retirement benefits announced in October by the Social Security Administration, the SNAP adjustment takes place at the beginning of the federal fiscal yearon October 1. This means that these changes will apply to SNAP beneficiaries in the current year, while the retirement benefit increases will not take effect until the following year.

When and how SNAP benefits are adjusted (COLA)

The USDA annually adjusts maximum SNAP allotmentsDeductions and income eligibility standards based on changes in the cost of living. According to official figures, nearly 5 million seniors receive both SNAP and pension benefits, underscoring the importance of these adjustments for a significant portion of the population.

“We are adjusting the maximum allocations, deductions and income eligibility standards for SNAP at the beginning of each federal fiscal year. The fiscal year begins on October 1. Changes are based on changes in the cost of living. The cost of living is the amount of money needed to maintain a basic standard of living. explains the USDA on its website.

How does the USDA determine maximum allotments for SNAP benefits?

The USDA determines the Maximum allocations for SNAP Benefits through a multi-stage process:

1. The maximum SNAP allotment is tied to the cost of the USDA’s Thrifty Food Plan (TFP). The TFP is the cost of a nutritious diet for low-income households. In August 2021, the USDA updated the TFP, increasing SNAP benefits to help millions of families eat healthy.
2. Maximum monthly allotments are based on household size. For example, in fiscal year 2024, the maximum monthly allotment is $291 for a 1-person household, $535 for a 2-person household, $766 for a 3-person household, and $973 for a 4-person household. Each additional person increases the maximum allotment by $219.
3. To calculate a household’s actual SNAP benefit, the USDA assumes that families spend 30% of their net income on food. Households with no net income receive the maximum benefit for their household size.
4. For households with net income, the monthly SNAP benefit is equal to the maximum allotment for that size minus 30% of net income. Net income is determined by applying various deductions from gross income.

SNAP Benefits and COLA 2025: Important Changes That Could Affect Your Eligibility

Income requirements for SNAP are set by law and based on the poverty level. Gross monthly income limits are set at 130% of the poverty level for household size, which is total household income before deductions. On the other hand, the monthly net incomei.e. gross income minus permissible deductions, is set at 100% of the poverty line.

Each year, the USDA announces the COLA and new maximum allocations for SNAP BenefitsFor example, last year’s 2024 COLA was announced on August 3, so this year’s announcement regarding the 2025 COLA increase and its impact on SNAP benefits is expected at a similar time.

Maximum allotments will increase for the 48 states and DC, Alaska, Guam, and the U.S. Virgin Islands. This year, the maximum allotment for a family of four in the 48 states and DC was $973, and that amount is expected to increase in the new fiscal year.

For SNAP beneficiaries, these adjustments mean an update to the benefits they receive. in line with the rising cost of livingThis is crucial to ensure that families can meet their basic food needs without their purchasing power being affected by inflation.

When will the USDA announce COLA adjustments for SNAP benefits?

The The USDA typically announces the cost-of-living adjustment (COLA) for SNAP benefits in August each year, with the changes taking effect on October 1, the beginning of the federal fiscal year.

With the Announcement of COLA 2025 expected in the coming months, SNAP recipients can expect an increase in their benefits to mitigate the effects of inflation. These adjustments are essential to ensure that recipients can maintain a basic standard of living and meet their food needs.

SNAP beneficiaries can prepare for these changes by through official USDA channels and local assistance agencies. In addition, it is important for beneficiaries to review their benefits and make sure their income and deductions are up to date in order to receive the correct amount of assistance.

• The Social Security Administration announces COLA adjustments for retirement benefits in October. They take effect the following January. SNAP benefits are adjusted at the beginning of the federal tax year on October 1.
• The USDA fits SNAP benefits based on inflation and economic data. This ensures that benefits correspond to the actual cost of living and purchasing power is maintained.
• Every year when the COLA is announced, USDA updates income Eligibility requirements and deductions based on the poverty line. In addition, the maximum SNAP allotments will be adjusted.
• The exact The COLA increase varies from year to year. but it is designed to keep SNAP benefits in line with rising living costs. For fiscal year 2024, the maximum allotment for a For a family of four in the 48 contiguous states and DC, the amount is $973.