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Supplemental Nutrition Assistance Program (SNAP) Benefits Cliff Undermines Gains for Working Families

By Drooid · · How we work

The Core Issue: Benefits Lost When Earnings Rise

A “benefits cliff” occurs when a modest increase in household income triggers a reduction or loss of SNAP assistance that exceeds the extra earnings. The Department of Health and Human Services defines the cliff as a situation where the benefit cut equals or surpasses the income gain. Alicia Freemont, a 29-year-old single mother in Nebraska, illustrates the problem: after earning just $19 above the SNAP eligibility limit in early 2024, she lost $150 per month in benefits, forcing her to work up to 18 hours in a day and later rely on credit cards after a car accident and subsequent injuries.

Research Findings and Numbers

  • SNAP serves more than 35 million people nationwide.
  • A 2019 Health Affairs study linked benefit loss after earnings rises to higher odds of household and child food insecurity.
  • A 2021 American Journal of Clinical Nutrition study reported former recipients who lost SNAP within the prior year had more than twice the odds of severe food insecurity and 80 % higher odds of low food security among children.
  • A 2024 HHS survey of 1,804 current and former benefit recipients found that anticipated benefit loss reduced willingness to accept higher-paying jobs; smaller losses and larger net gains increased willingness.
  • A 2025 Washington University survey showed over one-in-five workers on public benefits turned down extra hours or promotions to avoid a cliff.
  • The Center on Budget and Policy Priorities notes SNAP benefits decline by roughly 24–36 cents for each additional dollar earned.

Policy Landscape and State Responses

SNAP benefits taper as income rises, with a 20 % deduction for earned income. The federal gross-income test caps eligibility at 130 % of the federal poverty level, but states may adopt Broad-Based Categorical Eligibility (BBCE) to raise the ceiling. Nebraska, where Freemont lives, uses BBCE to set the threshold at 165 % of the poverty level, allowing an estimated 8,000 Nebraskans—including about 7,000 children—to remain on SNAP in 2023, though the ultimate eligibility line remains.

Official Perspectives

Stephen Grimaldi, executive director of New York Common Pantry, emphasizes that crossing an eligibility line does not automatically improve a family’s financial situation. Stephanie Gonzalez Guittar, associate professor of sociology at Rollins College, notes that small income gains often fail to alter quality of life given current living costs.

Verbatim Quotes

  • “Small income increases may not be substantial enough to change one’s quality of life based on current costs of living,” — Gonzalez Guittar
  • “The important thing to recognize is that eligibility thresholds are an administrative way of drawing a line, but people's financial circumstances don't change substantially or meaningfully when they cross that line.” — Stephen Grimaldi, executive director of New York Common Pantry
  • “At first it was devastating. Even now, it’s still kind of devastating,” — News Alicia