{ "id": "R42591", "type": "CRS Report", "typeId": "REPORTS", "number": "R42591", "active": false, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 428241, "date": "2014-02-12", "retrieved": "2016-04-06T23:07:31.778818", "title": "The 2014 Farm Bill: Changing the Treatment of LIHEAP Receipt in the Calculation of SNAP Benefits", "summary": "The Agricultural Act of 2014 (\u201cthe 2014 farm bill\u201d) was enacted on February 7, 2014. Included in the law\u2019s reauthorization of the Supplemental Nutrition Assistance Program (SNAP) is a change to how Low Income Home Energy Assistance Program (LIHEAP) payments are treated in the calculation of SNAP benefits. This change is expected to reduce some households\u2019 monthly benefit amounts, particularly households in states that have adopted the so-called \u201cHeat and Eat\u201d practice, where states leverage a nominal LIHEAP benefit into a larger SNAP benefit. The Congressional Budget Office (CBO) estimated that this change will reduce SNAP spending by approximately $8.6 billion over the 10-year budget window of FY2014-FY2023. Based on CBO\u2019s May 2013 baseline, this is approximately a 1% reduction in forecasted program spending over the 10-year period. \nSNAP law provides for both eligibility rules and, for eligible households, benefit calculation rules. The SNAP statute allows for certain deductions from income when calculating a household\u2019s monthly benefit amount; one of these deductions is the \u201cexcess shelter deduction,\u201d which incorporates utility costs. If a family incurs heating and/or cooling expenses, this deduction from income can be higher than for households not incurring these expenses, allowing for a higher SNAP benefit for the household. One way households can document heating and cooling expenses is by showing receipt of LIHEAP assistance. Under prior law, any amount of LIHEAP assistance could increase benefit amounts; under the 2014 farm bill change, LIHEAP assistance will have to be greater than $20 per year in order to be included in a household\u2019s benefit calculation. \nIn SNAP benefit calculation, a LIHEAP payment documents that the household has incurred heating and cooling costs. This documentation triggers a standard utility allowance (SUA), a figure intended to represent typical state-specific utility costs, which enters into the SNAP benefit calculation equation. (Most states use an SUA, but some opt not to and use only actual utility costs.) Unless the household is receiving the maximum SNAP benefit already, a household\u2019s monthly benefit can increase if the inclusion of an SUA results in an excess shelter deduction. Proof of heating or cooling expenses will trigger a higher SUA than proof of only telephone or water expenses. The higher SUA then gets factored into the calculation of a household\u2019s excess shelter deduction. In many cases, the higher the excess shelter deduction, the higher the monthly SNAP benefit will be. \nThe 2014 farm bill\u2019s change is expected to impact the \u201cHeat and Eat\u201d practice. Approximately 16 states provide nominal LIHEAP benefits through a \u201cHeat and Eat\u201d practice. \u201cHeat and Eat\u201d is a phrase that the low-income and anti-hunger advocacy community has used to describe state and program policies that leverage nominal (as little as 10 cents) LIHEAP payments into an increase in households\u2019 SNAP benefits that is larger than the initial LIHEAP payment. Also, a 17th state allows SNAP applicants to benefit from an SUA if the household applies for LIHEAP. Thus, the farm bill is expected to change 17 states\u2019 administration of SNAP and is expected to reduce some households\u2019 benefit amounts. \nThe 2014 farm bill\u2019s change in the law will require more than $20 a year in LIHEAP assistance in order to trigger the potential increase in benefits. The exact implementation timeline, details, and share of households affected will depend upon the U.S. Department of Agriculture Food and Nutrition Service\u2019s (USDA-FNS) interpretation and implementation of the policy, the options states choose in their implementation, and the share of households that will be able to document their heating and cooling expenses in other ways. \nCongress\u2019s final decision to change the law came after the passage of related proposals in both the House and the Senate. The 113th Congress\u2019s Senate-passed farm bill (S. 954) would have set a $10 threshold for LIHEAP payments to confer this potential advantage. The House-passed farm bill (H.R. 2642 combined with H.R. 3102) included the $20 threshold.", "type": "CRS Report", "typeId": "REPORTS", "active": false, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R42591", "sha1": "f4d989e6dc75888d57234618586a19f9a1a5c69d", "filename": "files/20140212_R42591_f4d989e6dc75888d57234618586a19f9a1a5c69d.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R42591", "sha1": "215a1adcf490af563bf23e26044284869b15cddb", "filename": "files/20140212_R42591_215a1adcf490af563bf23e26044284869b15cddb.pdf", "images": null } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc809982/", "id": "R42591_2013Sep17", "date": "2013-09-17", "retrieved": "2016-03-19T13:57:26", "title": "The Next Farm Bill: Changing the Treatment of LIHEAP Receipt in the Calculation of SNAP Benefits", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20130917_R42591_432a64502391af3ffd09ba9562017aba556e894b.pdf" }, { "format": "HTML", "filename": "files/20130917_R42591_432a64502391af3ffd09ba9562017aba556e894b.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc816239/", "id": "R42591_2012Jul10", "date": "2012-07-10", "retrieved": "2016-03-19T13:57:26", "title": "2012 Farm Bill: Changing the Treatment of LIHEAP Receipt in the Calculation of SNAP Benefits", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20120710_R42591_3b20c5c5d2115771eb29a7efe2c3afda5fdfce18.pdf" }, { "format": "HTML", "filename": "files/20120710_R42591_3b20c5c5d2115771eb29a7efe2c3afda5fdfce18.html" } ], "topics": [] } ], "topics": [ "Domestic Social Policy" ] }