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healthy food - SNAP ASSET LIMITS HAVE UNINTENDED CONSEQUENCES - SIBEJO

SNAP asset limits aim to target government resources and program benefits to people with the greatest need. But they may discourage low�income households from building a savings cushion that would help them weather economic shocks, such as a job loss or an unexpected car repair or medical bill. A new study finds that relaxing SNAP asset limits increases low�-income households� savings (8% more likely to have at least $500) and participation in mainstream financial markets (5% more likely to have a bank account). It also reduces SNAP churn (households cycling on and off SNAP due to fluctuations in their income) by 26%. Taken together, relaxed asset limits increase households� financial security and stability by increasing savings and reducing benefit fluctuations, and they can decrease government administrative program costs when fewer people cycle on and off the program.

Source: Urban Institute, 7/26/16, SNAP Asset Limits

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