Overview
- The Agriculture Department has issued a proposed rule that would limit 'broad-based categorical eligibility,' the policy that lets states automatically enroll households that get certain other assistance into SNAP.
- USDA estimates roughly 3.2 million households, about 6.3 million people, would lose SNAP by fiscal 2029 if the rule is finalized and that federal benefit outlays would fall by about $44.6 billion over five years.
- The proposal would remove automatic links between SNAP and other programs and the department projects about 1.78 million children would lose automatic free school-meal status while most would still qualify through income verification.
- USDA says states will face higher administrative work to verify resources — about $929 million more over five years — though the agency projects a net state savings of about $5.2 billion because of lower benefit costs under recent law.
- The rule is at the formal proposal stage with publication in the Federal Register and a public comment period, and its fate could be shaped by pending farm bill debates, state cost-sharing rules and likely legal or political challenges.