PA to Reinstate Asset Test for SNAP

Unless the decision of the Pennsylvania Department of Public Welfare (DPW) is reversed, beginning May 1st people under the age of 60 who have more than $2000 in savings or seniors with more than $3,250 in countable assets, despite having very low incomes, will no longer qualify for Supplemental Nutrition Assistance Program (SNAP/food stamps) benefits.  In late December, our state government informed the federal government that it will reinstate the "asset test" for SNAP applicants, denying vital food assistance to an estimated 36,000 Pennsylvanians with modest savings.

Greater Pittsburgh Community Food Bank is working with other organizations across the Commonwealth to urge Governor Corbett to reverse this decision. We hope you will join us in this effort.

AARP is providing a toll-free number to make it easy for all of us to contact the Governor's office in Harrisburg. Please call 1-800-515-8134 and tell the Governor that you oppose the decision to reinstate the asset test.

Specific objections to reinstating the asset test include:

• While DPW notes that the asset test is related to an initiative to reduce fraud and abuse in department programs, federal statistics show that Pennsylvania's fraud rate is one of the lowest in the nation at just one-tenth of 1%.
• Pennsylvania currently receives $2.5 billion in federal SNAP funds annually.  Implementation of the asset test would cause Pennsylvania to lose at least $55 million in federal SNAP dollars, if DPW's projections of those affected are accurate.  Because every dollar of SNAP benefits generates $1.79 in economic activity, Pennsylvania stands to lose millions of dollars of local economic impact under the plan.
• An asset test will also cost Pennsylvania additional taxpayer money to administer the program, including technological upgrades, and additional staff training and time.  Nearly 850,000 households that currently receive SNAP would also have to file paperwork concerning their assets, which would place further strain on already overworked and understaffed county offices.
• Although Pennsylvania had a SNAP asset test in 2008, the state removed this barrier because it was detrimental to seniors and others with savings.  The trend in other states has been to eliminate these asset tests, especially during the recession, which has pushed many working and middle-class people into poverty.  If it implements this test, Pennsylvania will become one of just 11 states states to impose an asset test for SNAP eligibility.
• Older adults and people who have recently lost their jobs, which are two groups that are more likely than others to have savings, would be particularly affected by the new requirement.  An asset test would only make it more difficult for seniors and low-income families to afford food in this tough economy.
• Furthermore, asset limits discourage low-income families from saving and force families in need to spend down their savings in order to seek SNAP benefits.  However, families must be able to save money in order to achieve self-sufficiency.  In addition, it has been found that assets are important to a family's physical and mental health, as well as its economic and social well-being.
• The new asset barrier to SNAP further diminishes the government assistance available to low-income Pennsylvanians, thus increasing their reliance on food banks, which are already experiencing record demand due to the economic downturn and the high cost of food.  Estimates provided by our national partner, Feeding America, reveal a potential increase in demand of 29% at Pennsylvania's food banks due to the implementation of this policy.

Please call Governor Corbett today (1-800-515-8134) and speak out in support of our neighbors in need by voicing your opposition to the SNAP asset test.