Eligibility Rules Create 'Benefits Cliffs' in SNAP Program

A 'benefits cliff' exists within the Supplemental Nutrition Assistance Program (SNAP) where eligibility rules cause recipients to lose benefits if their earnings cross a specific limit. This point is reached when an increase in income triggers a reduction or loss of public assistance that is greater than the additional income a household has gained. Federal researchers have documented how this possibility complicates financial decisions regarding raises, extra hours, or better-paying jobs for low-income households. SNAP benefits are provided to low- and no-income households across the United States.

The benefits cliff creates a financial trap for working families who are trying to increase their household income. If earnings cross the eligibility threshold, the loss of public assistance can outweigh the gain from increased pay. This structure affects the financial stability of low-income recipients who rely on the program for food security.