SNAP benefits in Indiana will increase after Thrifty Food Plan changes
The U.S. Department of Agriculture on Monday announced changes to its Thrifty Food Plan, the basis of its formula for determining food stamp benefits, modernizing the program and increasing its purchasing power for the first time in its over 40-year history.
The Thrifty Food Plan, one of four budgets created by the USDA to suggest general cost levels of nutritious diets for children and families, was first instituted in the 1970s and, aside from cost-of-living adjustments, has not been updated to reflect changes in dietary recommendations or broader economic trends.
As the plan is used to determine maximum allotments for the Supplemental Nutrition Assistance Program (SNAP) — commonly known as food stamps — critics have often said it placed a healthy lifestyle out of reach of those receiving aid.
The updated plan includes a 21% increase in budget, which would result in an average monthly increase of $36.24 for those enrolled in the program. USDA projections say Indiana could see as much as $298 million in additional benefits in the next fiscal year, which begins Oct. 1.
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Emily Weikert Bryant, executive director of Feeding Indiana’s Hungry, said that rather than continue to adjust an outdated budget, the new plan more accurately reflects the current needs and realities of the average American family.
“The background formula was based on food preparation costs and nutrition standards that were developed in 1975,” she said. “(The update) better reflects 21st century nutrition standards, food preparation needs and ensuring that those that are on the program can better afford the healthy foods they need.”
“Looking at an additional 40 cents per person, per meal, I think is a significant impact or will have a significant impact on Hoosiers utilizing the SNAP program, because it’s providing them with a more adequate amount to be able to purchase the nutritious things that they need.”
How the Thrifty Food Plan was updated
The USDA outlines four budgets using dietary guidelines, intake recommendations and the consumer price index to suggest general costs of healthy diets. The plans are adjusted for inflation and an annual cost-of-food analysis. In July 2020, the USDA announced a 5% increase as the result of this analysis, more than doubling the annual average increase for the program and putting maximum allotments at what was then an all-time high.
But that was still an adjustment of 1970s-era numbers, which didn’t take into account that not all families will have the time to prepare all meals and snacks at home, or that nutritionists now recommend a higher intake of red, orange and leafy green vegetables, according to the Center on Budget and Policy Priorities.
The revision was prompted by the 2018 Farm Bill, which tasked the USDA with re-evaluating the plan by 2022 and then again every five years. President Biden also voiced support of updates to the plan upon taking office in January.
The updates took into account four factors outlined in the 2018 bill: current food prices, the average American diet, dietary guidance and nutritional information. Costs were calculated using updated purchasing data — from stores, not self-reported household data — and includes an increase in calories to “support an active lifestyle,” according to a USDA news release.
The actual benefits received per household are determined by eligibility factors such as income and household size. The new maximum monthly allotments by household size, effective Oct. 1 through September 2022, are:
- 1: $250
- 2: $459
- 3: $658
- 4: $835
- 5: $992
- 6: $1,190
- 7: $1,316
- 8: $1,504
- Each additional person: add $188
The average increase in individual benefit comes down to about 40 cents per meal, per day, Weikert Bryant said.
“It’s providing them with a more adequate amount to be able to purchase the nutritious things that they need,” she said.
SNAP ‘extremely impactful’ in state’s economic recovery
In June, the month for which data is most recently available, 635,385 Hoosiers received SNAP benefit, totaling over $145 million, according to the Family and Social Services Administration.
Emergency aid throughout the pandemic has increased the amount of aid sent to each recipient, but a look back to January 2020 shows how obvious the disparity was between the federal government’s ideal budgets and what families were receiving. That month, $67,969,036 was issued to 561,268 Hoosiers.
The average amount issued to each household was $267.69 — less than half of the lowest of budgets for a family of four, per the USDA.
Boosts to SNAP aid will be “extremely impactful” for Indiana’s continued economic recovery, Weikert Bryant said, as families will have more to spend on the things they need.
“It’s being spent — it’s not being saved, it’s not cash value, it’s food, and it’s going right back into the communities,” she said. “So, for those extra few million dollars that Indiana’s likely to see, that’s going back into our economy.”
You can reach IndyStar reporter Holly Hays at [email protected]. Follow her on Twitter: @hollyvhays.