USDA SNAP rule change: 6.3 million Americans face food stamp cuts as $44 billion savings plan targets 46 states; could children also lose automatic free school meals?

The US Department of Agriculture wants to end a rule that allows states to qualify low-income households for food stamps without the usual federal income and asset checks. The proposed change could affect 3.2 million households, or about 6.3 million people, according to the USDA’s own estimate. It could also save the federal government more than $44 billion between 2027 and 2031 by reducing SNAP benefit payments.

The proposal targets Broad-Based Categorical Eligibility (BBCE), a policy used by 46 states to extend access to the Supplemental Nutrition Assistance Program (SNAP). The department wants to limit automatic eligibility to families receiving traditional cash assistance through the Temporary Assistance for Needy Families (TANF) programme. Other households would have to meet the standard federal SNAP income and asset requirements.

The proposal was scheduled for publication in the Federal Register on Tuesday. It is not a final rule, so the projected benefit losses are not yet confirmed outcomes.

What is the BBCE rule, and why does the USDA want to end it?

BBCE connects SNAP eligibility with TANF-funded services. Under the current policy, a household does not have to receive cash welfare to qualify. It may also qualify if it is authorised to receive, or claims, a minor non-cash TANF-funded service.

These services can include an information brochure, a pamphlet or access to a support helpline. States can use this connection to make more households eligible for food stamps. Many also raise the income limits and remove asset tests for households covered by the policy.

Under the standard federal SNAP rules, gross household income is generally limited to 130% of the federal poverty line. However, some states have used BBCE to extend eligibility to households earning as much as 200% of the poverty line, according to a 2019 policy brief.

The USDA now wants to remove this route to automatic eligibility. Under its proposal, only families receiving traditional TANF assistance, including cash welfare, would qualify through the categorical eligibility route. Other households would need to pass the regular SNAP income and asset tests.

The department’s position is that federal food assistance should be limited to households meeting the traditional low-income requirements.

How many people could lose SNAP benefits, and how much could the government save?

The USDA estimates that 3.2 million households could lose SNAP eligibility under the proposed rule. That figure represents about 6.3 million people living in those households. The two numbers describe the same affected population, counted by household and individual members.

However, the estimate does not mean that every person currently receiving SNAP would lose benefits. Households that already meet the standard federal income and asset requirements can still qualify without BBCE. The main risk is for families that depend on the higher state income limits or the removal of asset tests to receive assistance.

The financial impact could be substantial. The USDA estimates that ending BBCE would save more than $44 billion over five years, from 2027 through 2031. It also projects a $5.2 billion reduction in state spending over the same period.

These projected savings would largely come from benefits no longer being paid to households that lose eligibility. The proposal would therefore reduce government spending while also reducing access to food assistance for affected families.

Could children also lose free school meals?

The proposed SNAP change could affect children beyond the loss of household food benefits. Children living in SNAP households automatically qualify for free school breakfast and lunch without submitting a separate application.

If a household loses SNAP eligibility, its children could also lose this automatic route to free school meals. They may still qualify through other eligibility routes, but families could face additional requirements or paperwork.

This is not the first federal attempt to end BBCE. The Trump administration proposed a similar change in 2019. That proposal estimated that 3.1 million SNAP participants could lose eligibility. The Biden administration withdrew it in 2021.

Congress has also tried to restrict the policy. The House passed a farm bill in 2013–2015 that would have eliminated BBCE and another in 2017–2019 that would have limited it. Neither proposal survived the final legislative negotiations.