Great news if you are a new SNAP recipient who got USDA approval to receive Food Stamps in the United States. The 2025 COLA increase will be included in all the payments scheduled in December. The increase became effective on October 1, 2024. Since then, all eligible beneficiaries will receive more money on their EBT (Electronic Benefit Transfer) cards.
The COLA increase has not been beneficial for all Americans receiving SNAP payments. This is because the State of Hawaii has received a reduction rather than an increase. So, even if you got a low boost, it is better than getting less money for a whole year.
How much will SNAP payments increase in 2025?
It is uncertain and no one knows how much Food Stamp benefits will go up in 2025. What is clear, is that the current maximum amounts with the 2025 COLA will remain the same through September 30, 2025.
Then, on October 1, 2025, the new Cost-of-Living Adjustment will become effective. This is because USDA applies COLA at the beginning of the Fiscal Year and not at the beginning of the year like Social Security does.
USDA uses the TFP (Thrifty Food Plan) to calculate the price of a market basket for a family of 4. Of course, this is an estimate and it is carried out every June. In this way, USDA can help SNAP recipients maintain their purchasing power.
How much have benefits increased after the 2025 COLA increase?
The boost a family of 4 has received after the 2025 COLA increase is just 2 dollars. While a SNAP recipient could get up to $973 through September 30, 2024, they can receive up to $975 in December 2024.
The largest SNAP payment will be up to $1,756, up from $1,751. This moderate COLA increase will mean eligible recipients will get 5 dollars extra per month, which is about $60 extra per year.
An individual can barely tell the difference between the SNAP payments before or after the 2025 COLA increase. The current maximum amount is just $292, up from $291. A single dollar boost may be not much, still, it will be better than receiving less money like in Hawaii.