SNAP benefits to increase by 21% on October 1
Photo: Annie Spratt/Unsplash
By Robert Davis
Coloradans will see a 21% increase to their Supplemental Nutrition Assistance Program (SNAP) benefits starting October 1, the Department of Human Services (CDHS) said last week.
The increase amounts to an average increase of $36.24 per month, or $1.19 per day, and raises the new maximum benefit for a family of four now stands at $835 per month, CDHS said. These totals are separate from the additional benefits provided under federal COVID-19 relief legislation.
The new benefits will become immediately effective on October 1, CDHS said in a press release. The State will also continue to provide the pandemic-related emergency allotment that adds an extra benefit of $95 per recipient, per month, on top of the federal benefit levels.
“This increase will help ensure low-income families have access to a healthy diet, which helps prevent disease, reduces health care costs, and supports children in the classroom, among other benefits,” Colorado SNAP Manager Teri Chasten said in a statement.
SNAP benefits are calculated using a formula set out in the U.S. Department of Agriculture’s Thrifty Food Plan (TFP), one of four ways the USDA estimates the cost of the country’s diet. The agency also uses its Low-Cost, Moderate-Cost, and Liberal Food Plan to measure this total.
TFP was created in the 1960s as a way of theoretically providing adequate nutrition to a family. It measures food consumption in pounds and uses the consumer price index (CPI)—which is adjusted for inflation—to measure food affordability.
Under the previous plan, which was last updated in 2006, the cost of dairy products and “other foods” such as candies, oils, and fats made up an average of 38.5% of the total SNAP benefit allowance calculation. One reason the report points to this is that children between the ages of nine and 19 years old reported higher consumption rates of these food groups.
In 2018, Congress passed the Farm Bill, which required the USDA to update its TFP by 2022 and every five years thereafter. This bill also required the agency to review how it calculates the maximum benefit allotments using data from current food prices, the typical American diet, dietary best practices, and the nutritional value of different foods.
The USDA finished updating the TFP in mid-August. One of the key changes lawmakers made was changing the way the plan calculates food costs. The revised TPF includes new purchasing data that measures the costs businesses bear to sell their products rather than the ability of consumers to purchase a product.
Stacy Dean, deputy undersecretary for the USDA, said in a blog post that the “re-evaluation put healthy food within reach for SNAP participants.”
“The pandemic has brought to bear the complex challenges of food insecurity, especially in households with children and in communities of color. Yet even before COVID, millions of SNAP participants were struggling to afford a nutritious diet,” she added.
Another unfortunate truth that the pandemic proved is that the price of food is not always tied to inflation, as the CPI calculation assumes. And food security benefits can fall short of their intentions if they don’t account for potential product cost impacts such as supply chain and workforce disruptions.
According to the latest figures from the Bureau of Labor Statistics, the cost of food in general increased by .4% in August and has risen 3.7% over the last year. The data shows the largest cost increases were from meats, poultry, fish, and eggs.
However, “food away from home” – or the cost of food prepared or sold by retailers – increased by 4.7% over the last 12 months, according to BLS data. The cost of both limited and full-service meals has increased by 6.9% and 4.9%, respectively, primarily due to labor shortages and supply chain issues.
For the nearly 250,000 households in Colorado who rely on SNAP benefits, the new benefit levels come at a critical time. According to SNAP data from the Office of Economic Security, the number of new SNAP applications has increased steadily since April. The number of new applications CDHS has received since June has exceeded the number of applications CDHS received during the pandemic, the data shows.
On average, Colorado pays more than $87 million per month in SNAP benefits, according to CDHS data.
Coloradans who are experiencing hunger or are struggling to afford nutritious food and are not currently participating in SNAP can apply at any time at their local human services office, by calling Hunger Free Colorado’s Hunger Hotline at 855-855-4626 or 2-1-1, or online at the Colorado PEAK website.