In October 2019, FNS published a proposed rule entitled “Standardization of State Heating and Cooling Standard Utility Allowances.” This action modernizes the standard utility allowances used in calculating Supplemental Nutrition Assistance Program (SNAP) benefits in order to enhance program integrity and ensure equity among program participants.
This study develops standard methodologies that might be used to construct standard utility allowances, which are used by States as part of the SNAP eligibility and benefit determination.
This memorandum provides a policy option to states to help soften the impact that reduced SUAs might have on SNAP households in certain state.
Due to the impact on SNAP benefits resulting from continuing fluctuations in energy prices, FNS is modifying the Standard Utility Allowance blanket waiver memorandum of Oct. 14, 2010 to allow certain states to extend fiscal year (FY) 2010 SUA amounts through March 31, 2011.
It has come to FNS's attention that, due to unusual shifts in utility costs, SNAP benefits to needy families may decrease when states make annual SUA adjustments this year - even if the circumstances of those households remain constant.
Several state agencies have recently asked FNS to approve increases in their Standard Utility Allowances (SUA’s) for heating and cooling based on projections of substantial price increases in energy sources – particularly natural gas. We are aware of broad interest in the issue of the impact of higher energy prices on household budgets and appreciate the conferences and correspondence that bring this issue to our attention.
This notice reminds state agencies of the requirements of the Food Stamp Program regulations and suggests guidelines for development of standard utility and/or telephone allowances by presenting examples of some of the methodologies used by states to develop these allowances.