National Health Emergency Could End Soon. What That Means for Your Food Benefits

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KEY POINTS

  • The public health emergency allows states to pay households extra food benefits as well as giving people health benefits.
  • The White House says it's working to unwind the public health emergency which has been in place for almost three years.
  • NGOs warn of looming "hunger cliff" when extra food benefits end.

The White House is working to lift the public health emergency, which could also reduce food benefits in many states.

For many people the worst of the COVID-19 pandemic is over and life has returned to some semblance of normal. That isn't to say COVID has gone away, but at least the lockdowns, travel restrictions, and lurking sense of fear are in the rear windscreen. Now the government is preparing to lift the public health emergency. For some Americans, this could have a big impact on their medical cover and food benefits.

Why an end to the public health emergency could affect people's food benefits

The public health emergency contained a number of provisions designed to make people's lives easier as they got through an unprecedented situation. One provision let individual states pay extra food benefits in the form of emergency allotments. It's connected to the Supplemental Nutrition Assistance Program (SNAP) that helped over 40 million people keep food on the table last year.

SNAP benefits are usually calculated by taking the maximum benefit amount for a household and making deductions based on income and other factors. The emergency allotments mean states can pay every household the maximum (no deductions) and also waive certain restrictions. Households that already receive the maximum amount receive at least $95 more. In December, 32 states continued to pay emergency allotments, some of which have the highest poverty rates in the country.

The difficulty is that, economically speaking, we're still facing a pandemic hangover. Inflation soared to 40-year highs, pushing up the prices of everything from groceries to housing, and putting pressure on people's bank account balances. Unfortunately, lower-income families have been hardest hit by spiraling living costs. The extra SNAP money has been a lifeline for some households as it's freed up money to pay other essential bills.

Various NGOs warn that taking the extra cash away will mean more Americans go hungry. Earlier this year, the Food Action & Research Center warned of a steep "hunger cliff" and said most SNAP participants will lose over $80 a month in food benefits.

When will the public health emergency end?

The public health emergency (PHE) was introduced in January 2020 and has been extended every 90 days since then. It is due to end in the middle of January 2023, and as yet no extension has been announced. The government has also said that it will give 60 days notice before terminating the health emergency.

While it hasn't announced an extension, it also hasn't given the promised two-month notice. Given that it's now the middle of December, this means we can expect the PHE to continue until mid-February at the very least. Indeed, Georgetown University's Center for Children & Families thinks there's a good chance the PHE will be extended until April 2023.

All the same, Politico reports that Ashish Jha, the White House COVID response coordinator is working behind the scenes to lift the PHE. The idea is to transition a lot of COVID provisions into the normal healthcare system so it won't happen overnight. Jha says that ensuring Americans can access the necessary treatment is a priority, but it isn't clear what would happen to food benefits.

Preparing for lower SNAP benefits

If you live in a state that still pays the emergency allotments, try not to become overly reliant on that extra cash. It's easier said than done, but there are a few steps you can take. These include:

  • Understanding how your state handles unused SNAP benefits: In most cases, unused SNAP benefits should roll over from one month to the next. However, according to Forbes, it varies by state and if you don't use your benefits for a long period of time, you could lose them completely. If there's a chance the emergency payments could end in April, you might ease the immediate pain by saving some of your SNAP money before then.
  • Finding out what other assistance you might qualify for: There are a number of other assistance programs that can help those in need to pay for food, utilities, and even rent. Call United Way at 2-1-1 to find out what help is available at a national or local level.
  • Maximizing your SNAP benefits: Look for ways to stretch the SNAP dollars you do receive. For example, some cash back apps work with EBT payments, so you might be able to earn money back on your spending. Also look for programs in your state that double the SNAP dollars you spend on produce at participating stores and farmers markets.
  • Seeing if you can save by bulk buying: You may also consider using the extra funds to buy in bulk while that money's available. Just be sure to buy items that will last and that you will use -- otherwise it will end up costing you more than you save.

It may feel as if we've jumped from one crisis to another in recent years, but sadly 2023 could bring more financial and economic challenges. The government may find ways to ease the transition, but it is by no means a certainty. Anything you can do in the coming months to reduce your costs or even save a few dollars could make life easier when those extra food benefits stop coming.

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