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How do utility costs affect SNAP benefit calculations?
Executive summary
Utility costs enter SNAP calculations primarily through the shelter deduction and the Standard Utility Allowance (SUA); higher allowed utility deductions reduce countable income and can raise benefits [1] [2]. Recent rule changes in 2024–2025 and a 2025 federal law mean more households may have to document actual heating/cooling bills rather than automatically qualify for a heating-and-cooling SUA, a shift that can lower benefits for many non‑elderly/non‑disabled households [3] [4] [5].
1. How utility costs feed into SNAP math — the basic mechanics
SNAP calculates benefits by starting with a household’s gross income, subtracting allowed deductions (including a shelter deduction that counts rent/mortgage plus utilities), and then taking 30% of the resulting net income off the program’s maximum allotment to get the monthly benefit [1] [6]. Housing-related expenses — rent or mortgage and utility costs — therefore reduce countable income: a larger shelter/utility deduction generally produces a larger SNAP benefit [2] [1].
2. The Standard Utility Allowance: a blunt tool to simplify verification
To avoid verifying every applicant’s bills, most states apply a Standard Utility Allowance (SUA): a set amount representing typical utility costs in that state which is added to housing costs when computing the shelter deduction [3] [4] [5]. The SUA “simplifies SNAP benefit calculations” by letting states use an estimated utility number rather than month‑to‑month actuals [3]. USDA issued rules to standardize how SUAs are set and updated, effective January 17, 2025, while still letting states tailor SUAs to local costs [4].
3. Policy changes that shift who gets the heating/cooling SUA automatically
Under prior practice, households that received more than $20 annually from energy‑assistance programs like LIHEAP automatically qualified for the heating-and-cooling SUA; after the July 2025 federal law, automatic qualification now applies only to households with an elderly or disabled member, and other households must provide documentation of heating/cooling expenses to claim the HCSUA [3] [7]. State guidance (e.g., Maryland) reflects this change: non‑elderly/non‑disabled households receiving energy assistance may need separate proof of heating/cooling bills to claim the SUA [5].
4. Who wins and who loses from switching from SUA to actual bills
When states or federal rules push households to submit actual utility bills instead of using an SUA, outcomes diverge. If a household’s actual bills are lower than the SUA, their SNAP deduction shrinks and benefits can fall; if actual bills are higher, benefits could rise — but the administrative burden and verification barriers can deter claimants or delay benefits [8] [4]. FRAC warned that resetting SUAs could reduce benefits in states with high heating costs because some state SUAs were lowered under USDA’s 2025 rulemaking [4].
5. Interaction with other 2025 changes and administrative realities
The 2025 policy package included broader changes affecting SNAP benefit timing and growth (e.g., limits on how often benefits can increase), and guidance about issuance during periods of fiscal stress; those shifts can interact with utility‑allowance changes to produce net losses for some households even as maximum allotments move modestly under COLA adjustments [8] [9] [1]. Advocates and state agencies are flagging that verification requirements may be applied at recertification or when new applications are processed, so many existing recipients could see differences only at redetermination [5] [3].
6. Competing perspectives and implicit agendas
Advocates such as FRAC and many state hunger organizations frame SUAs as essential to fairly reflect rising energy costs and to minimize administrative friction that can suppress benefits [4] [5]. By contrast, policy changes in 2025 that restrict automatic SUA eligibility and require more documentation have been characterized in some summaries as cost‑containment or program‑integrity measures embedded in a broader federal package — critics argue those tradeoffs disproportionately affect non‑elderly, non‑disabled low‑income households and may reduce benefits [3] [10]. State guidance documents (e.g., Maryland Hunger Solutions) indicate practical implementation that can vary by state and by household composition, underscoring an administrative motive to reduce paperwork but also political choices about benefit targeting [5].
7. What the reporting does not (yet) say
Available sources do not mention detailed national estimates of how many households will lose benefits or the precise dollar impact per household nationwide as a direct result of the 2025 documentation changes; likewise, they do not provide post‑implementation empirical outcome studies (not found in current reporting) [4] [3]. For case‑level projections, advocates and state agencies are the closest sources presently cited [4] [5].
8. Practical takeaways for people applying or recertifying
If you’re applying or up for recertification, expect states to use either an SUA or actual bills in the shelter deduction; if your household is not elderly or disabled and you receive energy assistance, be prepared to produce heating/cooling bills or other documentation to claim the heating‑and‑cooling SUA [3] [5]. Use state SNAP calculators or agency guidance to estimate benefits under both SUA and actual‑bill scenarios, because outcomes can move either way depending on local SUAs and your real utility charges [11] [12] [2].