At the Cato Institute, Romina Boccia and Tyler Turman explain how wealthy families can receive SNAP benefits (aka food stamps) in many states. They write:
Federal SNAP guidelines include requiring applicant households to have a gross monthly income at or below 130 percent of the federal poverty line (FPL)—$2,292 for a family of two in 48 states, the average SNAP household size—and no more than $3,000 in countable assets, or $4,500 for households with elderly or disabled members. Countable assets include cash, money in checking or savings accounts, vehicles, and liquid financial investments such as stocks, bonds, and mutual funds not held in pension funds or 401(k)/IRA accounts.
SNAP has these eligibility standards to help ensure benefits target households with the least financial resources.
However, BBCE allows states to sidestep those federal rules by offering SNAP eligibility to those who qualify for other programs, such as Temporary Assistance for Needy Families (TANF). Even minimal TANF-funded services—such as brochures, pamphlets, and hotline numbers—can qualify someone for SNAP benefits.
States enjoy significant discretion in determining TANF eligibility, commonly setting both income and asset thresholds above SNAP’s statutory eligibility standards. Federal regulations permit states to extend TANF eligibility—and thus SNAP eligibility through BBCE—to households with incomes up to 200 percent of FPL. Additionally, because many states don’t have asset limits for their TANF programs, BBCE allows them to nullify SNAP’s asset restrictions entirely.
As of 2025, 43 states and DC have adopted BBCE. Of these, 28 have set the income eligibility threshold at the maximum 200 percent. All but five have abolished asset tests entirely.
As a result, millions of households with assets above SNAP’s statutory limits now qualify for benefits.
Read more here.
