USDA draft rule targets $44 billion in SNAP cuts
Proposal would end automatic food aid for households relying on non-cash assistance, affecting 6.3 million people.
By Renata Mehta ·
The U.S. Department of Agriculture has released a draft rule that would reshape eligibility for the Supplemental Nutrition Assistance Program. The proposal aims to reduce federal spending by $44 billion over the next five years by tightening income and asset limits for beneficiaries.
The plan restricts a policy called broad-based categorical eligibility, or BBCE. This rule currently allows households receiving non-cash benefits from the Temporary Assistance for Needy Families program to qualify for SNAP, even if their income or assets exceed federal thresholds. Under the new draft, those households would no longer automatically qualify for food assistance solely based on that non-cash support.
USDA argues the change aligns benefits with the greatest financial need. The proposal notes that current rules have allowed some high-income households to receive aid. The department stated it is aware of cases where millionaires received SNAP benefits. Agency officials described continuing to fund households above federal eligibility limits as irresponsible to Congress and taxpayers.
An agency impact analysis projects that 6.3 million people would lose SNAP benefits by fiscal year 2029 if the rule is implemented. This represents nearly 17% of the households currently receiving assistance. The changes would also impact school meal programs. USDA estimates that 1.78 million children would lose automatic eligibility for free school breakfast and lunch.
SNAP serves roughly 36 million Americans, making it one of the largest anti-hunger programs in the country. The proposal is not yet final law. The department has opened a public comment period that runs through Dec. 10, 2026. USDA will review the feedback before deciding whether to finalize, revise, or withdraw the rule.
If the proposal is approved, the changes would not take effect immediately. Agency analysis indicates implementation would not begin until 2029. States currently use BBCE to expand access to SNAP benefits, often linking them to services like child care subsidies and employment training.
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