NEADA submitted comments last week to the U.S. Department of Agriculture (USDA) in response to its proposal to revise the calculation for the standard utility allowance (SUA) in the Supplemental Nutrition Assistance Program (SNAP). The SUA determines the amount of assistance SNAP-eligible households receive to pay for their home energy use. The current process for calculating the SUA is determined at the state level and varies between states. The USDA’s proposed change would set the SUA at a fixed rate of 80 percent of each state’s median residential energy expenditures. NEADA commented that this approach would disproportionately impact families in states with highly variable energy costs, particularly those using heating oil or propane. Instead, NEADA recommends using actual energy cost data to estimate the SUA in each state.
The proposed rule also did not provide specific guidance on how the USDA arrived at the 80 percent ceiling or why it decided against an approach using actual energy use or a proxy based on each family’s housing characteristics. According to the USDA analysis, this proposal would reduce benefits to 7 million people in 3 million households. NEADA recommended in its comments that SNAP should look to LIHEAP for expertise on estimating fuel costs for low-income households that take into account the wide variation price by fuel type, and regional variations.
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