Will SNAP Benefits Increase in 2024?

The Supplemental Nutrition Assistance Program (SNAP) is a federal initiative to help families cover their monthly food costs. SNAP has some specific income and work eligibility requirements, but in general, the program can significantly help lower-income families who need extra help buying food.

More than 22 million U.S. households -- 12.5% of the population -- receive SNAP benefits, according to Pew Research Center. The program is especially important right now as elevated inflation, rising interest rates, and the generally high cost of nearly everything have strained many Americans' personal finances.

Each year, the government decides how much SNAP benefits should increase for the next fiscal year, which begins on Oct. 1, and in 2024, the amount has gone up slightly, but not by much.

SNAP benefits have increased for 2024

The U.S. The Department of Agriculture (USDA) recently announced that it will increase the SNAP maximum benefits for a family of four in 2024 to $973. And while the increase is likely welcomed by those using the program, it's also a relatively modest increase of 3.6% from the previous year's maximum benefits of $939.

The USDA makes an annual cost-of-living adjustment for SNAP benefits, but the problem with this year's increase is that it's not keeping up with the rapid rise in food prices. The USDA cites on its own website that food prices are up by 5.8% on average this year, above the historical average. For example, in 2020, food costs increased by about 3.4%.

The USDA may have made the SNAP benefits adjustment based on food cost predictions for 2024 -- which are estimated to rise by 2.1%, instead of looking back on food prices from the previous year. The agency says the average monthly cost for a family of four, using the USDA's strictest food budget, is $974.

Still, the increase to $973 per month may not go far enough to help some families, especially given the fact that inflation has soared over the past couple of years. If you want to sign up for SNAP benefits, you can do so through your state. You can find local SNAP offices, contact information, eligibility requirements, and online applications on the USDA website.

Food is just one part of a monthly budget

While receiving any type of food assistance is likely welcomed by some families, there's no getting around the fact that most Americans' monthly budgets are strained right now. The latest Consumer Price Index figures show how much prices have risen in the following categories over the past year:

• Shelter costs are up 7%
• Gas prices are up 3%
• Electricity prices have risen 2.6%
• Transportation services are up 9.1%

With all those expenses rising, it's unsurprising that Americans aren't feeling optimistic about their finances right now. Nearly 70% of Americans say the economy is getting worse and not better, according to a recent Suffolk University and USA Today poll. And 49% say rising food prices are one of their biggest concerns.

Keeping track of a month's worth of expenses is complicated enough on its own, and it's even harder when prices rise. A budgeting app can be a helpful tool to track where your money is going and even to track how much your spending in specific categories has changed.

There's no telling what will happen with the economy in 2024. Right now, the job market remains strong, and thankfully, inflation is slowing. But many Americans' budgets will likely remain strained as their savings rate has fallen and credit card debt has topped $1 trillion.

That may keep demand for SNAP benefits elevated, and it remains to be seen whether the latest increase in benefits for 2024 will be enough.