On July 4, 2025, President Donald J. Trump signed the One Big Beautiful Bill Act of 2025 (OBBB). The law contains several provisions that affect our programs.
On July 4, 2025, President Donald J. Trump signed into law the One Big Beautiful Bill Act of 2025. We are issuing this memorandum to provide Supplemental Nutrition Assistance Program state agencies with additional information on implementing Section 10103 of the OBBB, which changes the treatment of certain energy assistance payments for SNAP.
This memorandum covers questions related to provisions in the Supplemental Nutrition Assistance Program: Standardization of Heating and Cooling Standard Utility Allowances rule and the implementation process. FNS plans to publish additional question and answer guidance in the following months.
The final rule, SNAP: Standardization of State Heating and Cooling Standard Utility Allowances, was published in the Federal Register on Nov.18, 2024. This final rule amends SNAP regulations for calculating standard utility allowances (SUAs) and expands allowable shelter expenses to include basic internet costs. The rule also finalizes updates to the treatment of Low Income Home Energy Assistance Program payments. This memo provides a summary of the final rule provisions.
This final rule amends SNAP regulations for calculating standard utility allowances (SUAs) and expands allowable shelter expenses to include basic internet costs. The rule also finalizes updates to the treatment of Low Income Home Energy Assistance Program payments.
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.
The proposed rule would revise SNAP regulations to standardize the methodology for calculating standard utility allowances.
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.