FNS Documents & Resources

On July 4, 2025, President Donald J. Trump signed into law the One Big Beautiful Bill Act of 2025 (OBBB). Section 10104 of the OBBB prohibits state agencies from treating internet costs as an allowable shelter expense for the purposes of the excess shelter deduction in the Supplemental Nutrition Assistance Program.

This memorandum provides FDPIR administering agencies with guidance on how to apply the new shelter/utility deduction and outlines changes in the process to calculate a household’s net monthly income to account for the new shelter/utility deduction.

The purpose of this memorandum is to provide state agencies and program operators of the child nutrition programs, including the National School Lunch Program, School Breakfast Program, Child and Adult Care Food Program, and the Summer Food Service Program, with additional information and clarification on the state agency monitoring process regarding the: 1) Child nutrition label, 2) watermarked CN label, and 3) manufacturer’s Product Formulation Statement.

The Child Nutrition Labeling Manual provides food manufacturers with instructions on how to apply and obtain approval for a CN label. 

CN numbers that appear on the valid list apply to the CN logo and crediting statement only. It is the manufacturer's responsibility to ensure that the product label meets all other federal labeling requirements.

States annually update Standard Utility Allowances (SUAs) to reflect changes in utility costs. When determining a household’s eligibility, states consider a household’s total shelter costs, including the cost of utilities. Since actual utility costs are often hard to determine, states can use SUAs, which are standard amounts that represent low-income household utility costs in the state or local area. SUAs may be used in lieu of the household's actual costs when determining eligibility and benefit amount.

We adjust SNAP maximum allotments, deductions, and income eligibility standards at the beginning of each federal fiscal year.