The U.S. Department of Agriculture (USDA) has announced a proposed rule aimed at tightening eligibility requirements for the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps. The new measure seeks to address a loophole that has enabled individuals with significant assets, including owners of high-end vehicles such as Ferraris and Lamborghinis, to receive benefits.
Proposed Rule to Address Asset Test Exemptions
The USDA’s proposal would require all states to enforce an asset test for SNAP applicants, which would limit eligibility for those with substantial financial resources. Currently, 36 states and the District of Columbia have opted out of the federal asset test through a policy known as broad-based categorical eligibility. This policy allows households to qualify for SNAP based solely on income, without consideration of assets such as cash, investments, or luxury vehicles.
Under the proposed rule, households would be ineligible for SNAP if they possess more than $2,750 in countable assets, or $4,250 if at least one member is age 60 or older or has a disability. Assets include bank accounts, stocks, and vehicles, but exclude a primary residence and retirement accounts.
USDA Cites Need for Program Integrity
USDA Secretary Tom Vilsack stated, “This proposed rule is about ensuring that SNAP benefits are targeted to those who truly need them.” He added that the change would prevent individuals with significant wealth from qualifying for food assistance, while maintaining access for low-income families.
The USDA estimates that approximately 2.8 million people would lose SNAP eligibility under the new rule. The agency noted that the asset test is intended to ensure that recipients do not have substantial resources that could be used to meet their food needs.
Examples of Loophole Use
According to the USDA, the current policy has allowed some individuals with high-value assets to receive food stamps. The agency cited cases where applicants owned luxury vehicles, including Ferraris and Lamborghinis, but still qualified for benefits due to the absence of an asset test in their state.
“We have seen examples of people with significant assets, including expensive cars, being able to receive SNAP benefits,” the USDA said in a statement. “This undermines public confidence in the program and diverts resources from those who need them most.”
Public Comment Period and Next Steps
The proposed rule will be published in the Federal Register, after which the public will have 60 days to submit comments. The USDA will review feedback before finalizing the regulation.
