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How do utility allowances (Shelter and Utility Allowances) vary by state in SNAP calculations?
Executive summary
The USDA’s Food and Nutrition Service (FNS) lets states use Standard Utility Allowances (SUAs) — fixed amounts for utility and shelter costs — when calculating SNAP eligibility and benefits; a November 2024 final rule standardized methodology, added basic internet as an allowable utility, and requires states to update and submit SUA methodologies by Oct. 1, 2025 (provisions effective Jan. 17, 2025) [1] [2]. FNS estimates the final rule will leave most households’ benefits unchanged, increase benefits for about 30% of households and decrease benefits for about 5%, but actual state impacts depend on each state’s chosen methodology [2].
1. How SUAs function in state SNAP calculations — a practical shorthand
States consider a household’s shelter costs, including utilities, when determining SNAP net income; because collecting actual bills is often impractical, most states adopt SUAs — standardized values meant to represent low-income household utility costs locally — and apply them as part of the excess shelter deduction that reduces countable income for benefit calculations [3] [2]. The FNS guidance explains that SUAs are intended to reflect local low-income utility use and are updated annually to track utility cost changes [3].
2. What the 2024–25 federal rule changed — standardization with room for state choice
The final rule published by FNS standardizes how heating and cooling SUAs (HCSUAs) are calculated, sets criteria for the data and frequency of methodology updates, and explicitly recognizes basic internet costs as an allowable shelter expense — all effective Jan. 17, 2025 — while preserving state flexibility to reflect local cost variation; states were directed to implement eligibility-related provisions immediately and finalize methodology updates by Oct. 1, 2025 [1] [2]. FNS framed the rule as improving consistency and accuracy across states while still allowing “flexibility to reflect variations in local utility costs” [2].
3. How SUAs vary by state in practice — dependent on state methodology and local costs
Because states retain discretion in the specific data sources and exact allowance levels (within the new federal criteria), SUA dollar amounts differ across states and often by localities within states; those differences stem from varied local energy prices, housing stock, heating needs, and the state’s methodological choices when translating data into an SUA [1] [3]. FNS told states they may continue to set state- or local-level SUAs but must document the underlying data and update practices to meet the new federal requirements [1].
4. Who gains and who loses — aggregate federal estimate, state-level effects vary
FNS estimated the national-level impact: the majority of SNAP households would see no change, ~30% would see a small increase in benefits, and about 5% a small decrease — but FNS warns that “actual impacts will vary depending on the state’s final methodology,” meaning certain states (especially those with high heating costs) could see larger shifts for their residents [2] [4]. Advocacy groups have noted that states with higher heating needs may see reduced SUAs under the new methodology and therefore smaller excess shelter deductions, potentially lowering benefits for some households [4].
5. Recent complications and policy reversals that affect SUAs and internet treatment
After the FNS rule added basic internet as an allowable SUA component, subsequent legislative action (cited in FNS administrative guidance) — the One Big Beautiful Bill Act of 2025 — barred states from treating internet costs as an allowable shelter expense for the excess shelter deduction for FY26 SUA calculations, creating a patchwork of changing rules and prompting FNS to offer simplified FY26 guidance [5]. FNS also encouraged states to use a CPI-adjustment method for FY26 SUA values to streamline approvals and warned that alternative methods may not receive timely approval [5].
6. Where to find state-specific SUA numbers and timing
FNS’s SUA pages, state SNAP directories, and state SNAP agencies publish finalized SUA values and the methodologies used; FNS required states to submit updated methodologies and finalize values by Oct. 1, 2025 [1] [2]. Because states update SUAs annually and some interim policy changes occurred in 2025, users should consult their state SNAP agency or FNS state-directory postings for the most recent SUA figures [3] [1].
7. Limitations, disagreements and what reporting does not say
Available sources document the federal rule, its intent, and FNS impact estimates, but they do not provide a comprehensive, side‑by‑side table of current SUA dollar values by state in this collection of documents — state-level dollar amounts are not listed in the provided materials [1] [2] [5]. Also, while FNS gives national impact estimates, the exact magnitude of benefit changes at the state or household level depends on each state’s final methodological choices, which are variably reported [2].
If you want, I can pull the finalized SUA values and the methodological summaries for a specific state (or a set of states) from FNS/state SNAP sites and summarize expected beneficiary impacts based on the federal estimates and state energy profiles.