USDA Proposes a Major SNAP Change That Could Cut Off About 6.3 Million People

Millions of Americans who rely on SNAP to put food on the table are watching a new proposal from Washington very closely. On Tuesday, Nov. 10, 2026, the U.S. Department of Agriculture published a proposed rule that would change how many households qualify for the Supplemental Nutrition Assistance Program, the program many people still call food stamps.

The USDA’s own estimate is striking. Once the rule takes full effect, roughly 3.2 million households containing about 6.3 million people would no longer qualify for benefits. That is close to one in five current SNAP recipients.

The proposal is not final yet, and the public has a chance to weigh in. Here is what the rule would change, who could be affected, what the USDA says about it, and what happens next.

What the Proposed Rule Would Change

The proposal targets something called broad-based categorical eligibility, often shortened to BBCE. Under current rules, a household can qualify for SNAP automatically, without a separate income or asset review, if its members receive a benefit from a state program funded by Temporary Assistance for Needy Families, or TANF.

That benefit does not have to be cash. According to News4JAX, it can include non-cash help such as childcare referrals or access to a phone line that connects families to services. States have used that flexibility to open SNAP to households that would not meet the program’s standard income and resource limits.

The new rule would limit automatic eligibility to households that receive TANF “assistance” as the federal government defines it. That means cash, payments, vouchers, and similar benefits meant to cover a family’s ongoing basic needs. Households that receive only minor non-cash services would have to qualify the regular way.

How Many States Use This Option

This is not a small loophole used by a few states. As of December 2025, 46 states used broad-based categorical eligibility, according to the figures reported with the proposal. Of those, 37 states set gross income limits higher than the federal SNAP threshold of 130 percent of the federal poverty guidelines.

Even more states have dropped asset tests altogether. Reports on the rule say 41 states have eliminated resource limits entirely, so savings and other assets are not counted. For many working families and older adults with modest savings, that flexibility has been the difference between qualifying and not.

If the rule is finalized, states would have to rework how they decide eligibility. Some households in high-cost areas or with savings above federal limits could be the first to lose benefits.

Who Could Lose Benefits

The USDA estimates that about 3.2 million households, containing roughly 6.3 million individuals, would no longer qualify once the rule is fully in place in fiscal year 2029. ABC13 Houston reported that the department said nearly 18 percent of current SNAP recipients would be cut from the rolls.

Households with incomes just above the standard federal limit could be affected. So could households with savings or other assets above SNAP’s regular resource limits. The department also estimates that more than 840,000 one- and two-person households currently receive the minimum monthly benefit of $23 only because of broad-based categorical eligibility.

That minimum benefit may sound small, but for an older adult living alone on a fixed income, it can still cover a few days of groceries each month. Advocates for low-income families have warned that added paperwork could also cause some eligible people to lose benefits by mistake.

Why the USDA Says the Change Is Needed

The USDA argues that broad-based categorical eligibility has drifted far from what Congress intended. In the department’s view, it was meant to reduce paperwork, not to expand who qualifies. The proposed rule calls it “irresponsible to Congress and the taxpayer” to keep allowing the practice.

The department points to cases where households with significant assets have received SNAP benefits in states with no resource limits. One widely cited example involved a Minnesota millionaire who received food stamps through this route. The USDA estimates that 11.5 percent of participating households, about 2.5 million households with 5.4 million people, currently have resources above the standard SNAP limit.

The department also cites a 2012 Government Accountability Office report. That report found payment errors in BBCE households at a rate of 17.2 percent, compared with 6.7 percent for other SNAP households.

How Much Money Is Involved

The USDA projects that the rule would reduce federal SNAP spending by about $44.65 billion over five years, from fiscal 2027 through 2031. States would see a net reduction of roughly $5.24 billion in SNAP spending over the same period.

There would be added costs, too. Administrative expenses are expected to rise by about $928.5 million as states update their eligibility systems and review more applications. Those costs would fall partly on state agencies that already run SNAP.

For shoppers, these figures may feel distant. But they show how large the change could be. SNAP supports grocery stores in every state, and fewer participants could ripple out to local businesses as well.

This Has Been Tried Before

This is not the first attempt to rein in broad-based categorical eligibility. The Trump administration proposed a similar change in July 2019. That proposal was withdrawn by the Biden administration in June 2021 before it took effect.

The USDA says the new version is simpler for states to put in place than the 2019 plan. Instead of a complicated set of rules about which TANF services count, it ties eligibility directly to the federal definition of TANF assistance. Supporters say that makes it clearer, while critics say it will still push many families off the program.

The proposal also arrives during a year of big changes for SNAP. Several states have already begun restricting soda and candy purchases, as covered in reports on SNAP soda limits coming in 2027.

What Happens Next

The rule is only a proposal for now. The public has until Dec. 10, 2026, to submit comments, and the USDA must review them before publishing a final rule. Changes are possible, and legal challenges are likely if it moves forward.

Even if it is finalized, the full effect is not expected until fiscal year 2029, according to the department’s own estimates. That gives states and households time to prepare. Current SNAP households should keep receiving benefits as usual while the rule is under review.

What SNAP Households Can Do Now

If you receive SNAP, there is no need to panic or change anything today. Keep reporting your income and household changes to your state agency as required, and watch for official letters about your case. The USDA’s official SNAP pages and your state agency are the best places for accurate updates.

It may also be a good time to look at your grocery budget and plan ahead, using tips like these ways to save on everyday costs. Do you think SNAP eligibility should be tightened, or would this change hurt too many families who need the help?