Social Security Increase: Can COLA Increase Reduce Your SNAP Benefits?

The The National Insurance Service confirmed that SS benefits will increase by 5.9% for nearly 70 million Americans in 2022. The news comes as the inflation rate rose to 6.8% in 2021, the highest increase in 12 months since 1982, according to US Bureau of Labor Statistics.

According to the Social Security and Medicare policy analyst at the Senior Citizens League, Mary Johnson, recipients will not see the full economic effect of high inflation on SS revenues before 2023, but low-income programs may end up with lower benefit amount.

“If the income is right on the border, and high COLA is received, which could potentially cause trims to benefits from programs, “Johnson said.”[ads1]; Some individuals may lose access to certain low-income benefits altogether because of COLA increases their income across the border.”

How does extra social security income affect SNAP recipients?

Low-income programs such as SNAP, Medicare extra help, and rental assistance has intricate qualification requirements and income restrictions regulated in proportion to a percentage of the federal poverty level. The US Department of Agriculture (USDA) adjusts SNAP max allocations, deductions, and income eligibility standards at the beginning of each federal fiscal year.

The federal poverty line is usually on track with COLA, but 2021 may result in less benefits for SNAP recipients because COLA grew at a faster rate than Consumer price index for urban consumers (CPI-U), according to Johnson.