Food Insecurity Likely to Rise in Colorado Under New Rule
By Rayna Hetlage, policy analyst
Even during the best economic times, it’s still a struggle for some families to afford basic needs like putting food on the table. For people who are between jobs, experiencing a health emergency, or managing a long-term disability, the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, is an important lifeline to nutritious food for them and their children. Even for those who are working, wages for some jobs just aren’t keeping up with the cost of food. For those who use SNAP, it can be the difference between being able to pay the bills and living in poverty.
Hundreds of thousands of Coloradans use SNAP at one time or another to help pay for food, and most of them come live in a household with at least one worker. It’s especially important for families in communities in southern and southeastern Colorado, where upwards of 30% of households in some counties participate. In addition to reducing food insecurity, almost all of the dollars used to fund SNAP end up being spent locally. This is critical during economic downturns, when food assistance helps provide a stabilizing effect for local economies. Even during the current economic expansion, with many new jobs paying low wages it means SNAP is more than just a backstop in the event of a recession.
In July, the Trump administration proposed a change to SNAP that would end Broad Based Categorical Eligibility (BBCE). BBCE came about as a result of a 1996 change in the Temporary Assistance for Needy Families program (TANF), also known as basic cash assistance, that made it possible for states to offer non-cash benefits to eligible individuals and families. Families who qualify for TANF benefits are automatically eligible to get food assistance through SNAP. Currently, 43 states offer extended benefits to families who might not otherwise qualify for SNAP. Colorado is one of these states and allows individuals making up to 200% of the Federal Poverty Line (FPL) to qualify for SNAP benefits. Under the proposed changes more than 30,000 Coloradans will no longer be able to use SNAP to help pay for groceries.
According to the US Department of Agriculture, which administers SNAP, the proposed changes will disproportionately affect a significant amount of people who rely on SNAP. This includes 13.2% of families who have someone 65 and older living with them, 12.5% of working families, and 10.1% of families and individuals with no children.
Another rule announced In August by the Trump Administration will affect immigrant families seeking Lawful Permanent Status (LPS) who currently use SNAP, and even those who have used it in the past to avoid going hungry. This is because of changes to the guidelines for determining who is considered a “public charge.” Immigrants who are deemed to be a present or future public charge can have their LPS application or entry into the United States denied. Prior to the rule change, the two factors that were used to categorize someone as a public charge were whether or not an individual had been in long-term care at the governments’ expense and/or if they had received cash benefits from the government (including TANF and Supplemental Security Income, or SSI).
Under the rule change, the government would penalize immigrants who make use of SNAP to afford food, Medicaid so they can see the doctor, and housing assistance (such as Section 8 housing). The new rule makes it confusing for immigrants to determine what support systems they can and cannot use and has led to many people being fearful to apply for any sort of assistance. Whether the rule goes into effect as planned or not, people going without healthcare, food, and housing for fear their applications will be denied. When our neighbors go without their basic needs being met, our entire state suffers the consequences.
For families with children who turn to SNAP when they have trouble making ends meet, this new rule will be especially hard, and not just because they will have to find other ways to afford to feed their kids. Currently, children in households receiving SNAP automatically qualify for the free-or-reduced lunch program. When households lose their SNAP benefits, they will then have to undergo an additional application process and it is likely that some children will stop getting school breakfasts because of this additional bureaucratic barrier.
While SNAP is a critical support for families who are going through a hard time, or when the economic cycle goes from boom to bust,
SNAP provides a boost to the economy in Colorado because recipients are spending their benefits at local grocery stores, corner stores and farmers markets. Colorado receives an average of $127 in SNAP benefits per person per month. One analysis by the Colorado Department of Human Services and a separate one by the Colorado Fiscal Institute in addition to losing out on $45 million in benefits each year, an estimated $21-$84 million in total economic activity will be lost due to the change in policy. For the counties where as many as 30% of residents turn to SNAP for food, the economic consequences will be more pronounced. 93% of the cost of SNAP goes directly to food for families.
The costs of food insecurity are not only apparent in direct spending and the economic activity generated by SNAP benefits. The health and other costs associated with families not having enough to eat are between $1.02 billion and $2.1 billion according to analysis from local anti-hunger advocates. With fewer families receiving benefits it is possible that Colorado will see these costs rise, standing in stark contrast to the goal of reducing US health care spending. We know that the majority of SNAP recipients are working adults, and because of how many work low-wage jobs, SNAP is a critical tool for lifting adults, older Coloradans, and kids out of poverty.
This policy is one of many causing pressures on families and should be part of a broader conversation about how we pay low wage workers and the struggle to make ends meet. Throughout Colorado, families are having to make decisions between whether or not to pay their rent, maintain health insurance, put food on the table, or put gas in their car so that they can get to work. SNAP has been shown to help ease these struggles and keeps 117,000 Coloradans out of poverty, including 55,000 children, every year.
SNAP has time and time again been proven to provide important economic and health benefits for our communities. Ending BBCE could push many families who are making ends meet into poverty and punishes families and individuals that are attempting to save so they no longer need to turn to SNAP and can make ends meet on their own.
While this rule proposal is disheartening, there is still time for you to make a difference by telling the Trump administration an the USDA not to move forward with it. Please take a few minutes today to tell them why you think ending Broad Based Categorical Eligibility for SNAP would hurt people and communities across Colorado. There are several grassroots organizations like Center for American Progress, Feeding America, and Food Research Action Center who are making it easy for you to do just that.
Public comment is open until September 23rd.
