In what may be a predictor of the future of SNAP benefits in the federal budget, Iowa has passed Senate File 494 with the House voting 58 to 41 to modify eligibility for SNAP benefits. These are in fact, paid by the federal government.  In March, the Iowa Senate passed a similar bill, and it is now up to Governor Kim Reynolds to enact this legislation.

The new requirements include: -

• Verification of identity of recipients.
•  $15,000 in liquid assets as a cutoff for eligibility, the limit to exclude the value of a home or first vehicle.
• Revaluation of recipients based on support through Medicaid and Child Support Services.

During 2022, approximately 285,000 residents of Iowa received SNAP benefits valued at $60.4 million provided by the federal government.  Iowa that jointly administers the SNAP program offers benefits to households making $48,000 for a family of four.  The federal government establishes eligibility at an income of $39,000 for a family of four.

The net result of the Iowa law would be that 8,000 Medicaid recipients and 2,800 SNAP recipients would lose benefits.  In addition, 600 residents could lose children’s health insurance program benefits.

The Bill has been soundly criticized despite the contention of the Floor Manager, Rep. Joel Fry, who stated that it “protects the program for those who need it most and I would suggest that we are creating a safety net that is sustainable for the long term”.  Proponents of the Bill claim that it will save state taxpayer dollars, a fallacious comment given that SNAP funds are derived from the federal government.