FNS Documents & Resources

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.

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 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.

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 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.