Green will seek $45M in additional welfare relief for Hawaiʻi families

The state of Hawai‘i will implement rule changes to the Supplemental Nutrition Assistance Program that are expected to generate an additional $45 million in benefits for Hawai‘i’s struggling families, according to an announcement from Gov. Josh Green.

The changes — prompted by a recent study by the University of Hawai‘i Economic Research Organization (UHERO) — mean that an extra 13,000 to 14,000 households will be eligible for an average of $3,200 a year in SNAP benefits, commonly known as food stamps.

“This is going to provide a huge relief for our working-class families who are struggling with Hawai‘i’s highest-in-the-nation cost of living,” said Green. “In identifying a critical opportunity for our SNAP program, UHERO’s research team is enabling us to make much-needed changes to our social welfare system so that families living from paycheck to paycheck can afford to put more food on their tables.”

In Hawai‘i, SNAP is one of the largest welfare programs available to low-income families. Currently, a family of four can receive as much as $1,759 a month in SNAP benefits. In a typical month, the total value of SNAP benefits in Hawai‘i exceeds $60 million.

For decades, the SNAP eligibility criteria were controlled by the federal government. Following changes to the program in 2000, states were given more flexibility to adjust the eligibility rules by establishing a program of “broad-based categorical eligibility.” Through BBCE, states were able to eliminate asset limits, which prevented households with high savings from receiving SNAP benefits. BBCE also allows states to raise limits on the amount of income households can receive and still qualify for SNAP.

According to UHERO, eliminating another income criteria known as the “net income limit” will expand the number of Hawaiʻi households receiving SNAP benefits by 13,000 to 14,000. (“Net income” in the SNAP program is defined as the total monthly household income after deducting certain non-food household expenses like rent, utilities, medical costs, childcare costs and others. Before BBCE, households needed to have a net income below the federal poverty line to qualify for SNAP benefits.)

Also according to UHERO, eliminating this limit will add little overhead: The state only needs to pay half of the additional administrative costs associated with the additional SNAP cases that would result. In 2019, Hawai‘i’s share of SNAP administrative costs was only about 5.6% of the amount of SNAP benefits that the state paid out to Hawai‘i families.

“This decision has far-reaching implications,” said Dylan Moore, a co-author of the UHERO report. “This change may further increase benefit payments by making it easier for households to understand whether they are eligible for SNAP.”

The Hawai‘i Public Health Institute’s Social Impact Policy Manager Nate Hix co-authored the report.