How SNAP Impacts Consumption Patterns and Food Security: Evidence from Emergency Allotments during COVID-19

Background: In March 2020, in response to the onset of the COVID-19 pandemic, the U.S. government introduced several changes to the Supplemental Nutrition Assistance Program (SNAP), including Emergency Allotment (EA) waivers that granted all recipients eligibility for the maximum benefit and increased average SNAP benefits by 30 percent. Starting in April 2021, a number of states opted to discontinue the EAs, and by March 2023, when Congress ended EA nationwide, 18 states had already terminated the EA waivers, resulting in significant variation in SNAP benefits across states. We investigate to what extent the SNAP EA policy increased SNAP receipt rates and benefit amounts, as well as how households spent their increased benefits to address their needs. Finally, we examine the policy’s impact on household food insecurity.

Methods: We exploit the variation at the state level over time in SNAP policy, examining changes in EA waivers to investigate their impacts on SNAP receipt, household spending, and measures of food insecurity using datasets from the Current Population Survey — Annual Social and Economic Supplement and Food Security Supplement — as well as the Consumer Expenditure Survey. Employing an event study, we examine how SNAP receipt and outcomes evolved between 2017 and 2022 in response to EA policy by comparing states that continued EA with those that did not. Using difference-in-differences models, we analyze the effects of one year of exposure to EA policy on outcomes.

Results: Preliminary findings suggest that a full year of EA policy is associated with a 14% increase in SNAP receipt, a 49% increase in the amount of SNAP received, and an 18% increase in the duration of SNAP benefits among households with incomes less than 185% of the federal poverty line. Additionally, we find that a year of EA policy is linked with an 11% decrease in food insecurity among low-income households. We find the reduction in food insecurity, especially child food insecurity, is more significant among households in deep poverty (below 50% of the federal poverty line).

Conclusion: This study underscore the crucial role of SNAP policies in providing vital support to vulnerable populations. Policymakers should consider the positive impact of generous SNAP policies on reducing food insecurity and prioritize measures to maintain and strengthen these programs.