The debt ceiling deal could lead to 750,000 older Americans losing SNAP benefits

• The debt ceiling deal could lead nearly 750,000 adults to lose their Supplemental Nutrition Assistance Program, or SNAP, benefits.
• The Fiscal Responsibility Act raises the age limit for work-reporting requirements from 50 to 54.
• Exemptions to the requirement were expanded under the new legislation to include veterans, homeless, and those in the foster care system.

The debt ceiling deal could lead nearly 750,000 adults to lose their Supplemental Nutrition Assistance Program, or SNAP, benefits following new work-reporting requirements.

According to new research from the Center on Budget and Policy Priorities, a non-partisan think tank, the Fiscal Responsibility Act would jeopardize federal food assistance for adults aged 50 to 54, especially those with major barriers to employment. SNAP benefits, or food stamps, give monthly funds to low-income individuals and families for food purchases.

SNAP's existing work-reporting requirement states that adults aged 18 to 49 without dependents can only receive benefits for three months in a three-year period unless they can show employment or job training attendance for 20 hours a week. The debt ceiling deal raises the age limit for these requirements to childless workers aged 50 to 54.

The legislation, which raises the debt ceiling until 2025, would first apply to 50-year-old workers starting 90 days after enactment, followed by workers aged 51 and 52; beginning in 2024, this would then apply to workers aged 53 and 54. These requirements would remain in effect until Oct. 1, 2030.

Some childless adults can qualify for exemptions including having a work-limiting disability or being pregnant. CBPP noted that high denial rates and long wait times for receipt of disability benefits has made accessing SNAP benefits increasingly difficult.

These exemptions were expanded under the new legislation to include veterans, people who are homeless, and young adults who were recently in the foster care system. The Congressional Budget Office estimated that around 78,000 more people would receive protections under the new exemptions than would lose assistance, or about a 0.2% increase in those receiving SNAP benefits.

Speaker of the House Kevin McCarthy could not secure the $4.5 trillion in spending cuts that he initially proposed, while President Joe Biden also had cuts attached to the deal. Some Democratic lawmakers criticized the work requirements within the deal.

"As somebody who was a food stamp recipient, there is absolutely no way I can see myself green-lighting something that will take food from people's mouths," Missouri Rep. Cori Bush told reporters last week.

"You're not going to balance the budget, much less pay down the debt, through these kinds of changes," Ed Bolen, director of SNAP state strategies at the Center on Budget and Policy Priorities, told CNBC. "On the other hand, you're going to affect up to 750,000 low-income older Americans who need food assistance."

CBPP research noted that the existing work-reporting requirement does not increase employment or earnings but do lead thousands to lose their food benefits. According to a study from February by the American Economic Association, the work-reporting requirement reduced SNAP participation among adults subject to the restrictions by 53%. Expanded work requirements could pose additional challenges for older workers facing age-related discrimination.

It is uncertain how many people would benefit from the new exemptions, though most of those newly subject to the requirement are not veterans or experiencing homelessness.

The legislation also reduces the number of individual hardship exemptions that states can offer applicants and limits the carry over of unused exemptions. Under current law, states can give exemptions to up to 12% of potential recipients who are subject to the work-reporting requirement. States can carry over any unused exemptions indefinitely.

The new legislation would bring hardship exemptions down to 8% and bars states from carrying over unused exemptions for the following year. The CBPP research noted that hardship exemptions have been used to assist survivors of domestic abuse and those working less hours due to temporary barriers.

Are you an older American who relies on SNAP benefits and who could be affected by this change? Tell your story to this reporter at nsheidlower@insider.com.