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New Supplemental Nutrition Assistance Program

On Thursday, April 29, Governor Culver signed the Health and Human Services (HHS) appropriations bill, approved by the legislature in late March. One significant component of the bill is increasing the eligibility requirement for the Supplemental Nutrition Assistance Program (SNAP, formerly Food Stamps) up to 160% of the federal poverty level and eliminating the asset test. This makes up to 26,000 additional working Iowans eligible for benefits.

“This change will result in Iowa receiving $17.9 million in federal assistance, which will generate $33 million in economic activity,” says Sarah Olson, manager of public policy for United Way of East Central Iowa, and public policy co-chair for United Ways of Iowa. “This is critical for many families still impacted by difficult economic conditions.”

Current eligibility threshold for SNAP is 130% of the federal poverty level. This means a family of four earning up to $28, 665 per year is able to receive benefits. Under the new threshold a family of four earning up to $35,280 would still be eligible. The new eligibility guidelines will take affect January 1, 2011. Eliminating the asset test means that families will not be denied benefits based on ownership of tangible assets like vehicles and property. Previously these assets would be considered as part of determining eligibility.

United Ways of Iowa’s Public Policy Committee helped lead the legislative effort. “We greatly appreciate the outstanding work done by United Way staff, legislators and other organizations like the Iowa Policy Project to make this happen,” said Sarah Ramsey, public policy director for United Way of Central Iowa. “Many more working families will now be able to grow their income and still receive these critical benefits.”

LOCAL IMPACT
In United Way of East Central Iowa’s six county coverage area (Benton, Cedar, Iowa, Jones, Linn and Washington) approximately 2,691 families will now be eligible for SNAP benefits as a result of this legislation. This means an additional $1.8 million coming into our communities, which will create $3.5 million in economic activity.

This change should also ease some of the pressure on local food banks which have seen significant increases in demand in the last year.

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United Way of East Central Iowa

1030 Fifth Avenue S.E. #100, Cedar Rapids, IA 52402

319-398-5372 or toll-free 800-332-8182

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