Supplemental Nutrition Assistance Program (SNAP)

Often called “food stamps,” Supplemental Nutrition Assistance Program (SNAP) is a federally funded

program, started in 1964, in which each month people receive a card like a debit card that they can use to buy

food. The amount of food aid for which a household is eligible varies by income, number of children, and other

factors but, in general, households are expected to spend about 30% of their own net income on food, and if

30% of their net income is not enough to purchase a nutritionally adequate diet, then those households are

eligible for SNAP.

SNAP can contribute to the poverty trap. For every $100 earned, the government assumes that a family can

spend $30 more for food, and thus reduces its eligibility for food aid by $30. This decreased benefit is not a

complete disincentive to work—but combined with how other programs reduce benefits as income increases, it
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