USDA Draft Rule Would Strip Food Stamps From 6.3 Million Households
A new rule targeting broad-based categorical eligibility aims to save $44 billion over five years but risks removing benefits from families with TANF support.
By Ibrahim Howard ·
6.3 million Americans could lose their food assistance benefits if the U.S. Department of Agriculture finalizes a proposal announced on Nov. 11. The agency wants to restrict broad-based categorical eligibility, a policy that currently lets households receiving certain Temporary Assistance for Needy Families benefits qualify for SNAP even when their income or assets exceed standard limits.
The Department of Health and Human Services administers TANF, which states use for cash aid, child care subsidies, and employment training. Most states rely on broad-based categorical eligibility to expand food stamp access. Under the new draft rule, households that depend solely on non-cash TANF benefits would no longer be automatically eligible for SNAP. The USDA argues this change ensures benefits reach households with the greatest financial need.
The agency’s impact analysis projects that nearly 17% of current SNAP households would lose eligibility by fiscal year 2029. These families would fail to meet federal income or asset thresholds. The proposal also impacts school nutrition programs. USDA estimates that roughly 1.78 million children would lose automatic eligibility for free breakfast and lunch if the rule takes effect.
USDA projects the changes would cut federal SNAP spending by about $44 billion over the next five years. In a notice outlining the proposal, the department noted that current rules allow some households with resources above federal limits to receive aid. The document states, "The Department is aware of cases in which millionaires have received SNAP benefits." The agency described the current practice as "irresponsible to Congress and taxpayers."
SNAP serves as one of the nation's largest anti-hunger programs, providing food assistance to approximately 36 million people. The proposed rule is not yet final. The agency has opened a public comment period that runs through Dec. 10, 2026. USDA will review the feedback before deciding whether to finalize, revise, or withdraw the rule.
If approved, the changes would not take effect immediately. The agency’s analysis indicates that implementation would not begin until 2029. Until then, the current eligibility standards remain in place for households receiving non-cash TANF benefits.
