Preparing Clients for SNAP Cuts to Utility & Internet Deductions

Author
Elly Jordan
Post Date
Interest Area
Public Benefits

Starting this fall, many Michigan families who rely on food assistance will see changes in how their benefits are calculated resulting from the federal budget bill known as the One Big Beautiful Bill Act (OBBBA). This post will assist advocates in preparing with clients.

Food assistance, known by its federal program name, Supplemental Nutrition Assistance Program (SNAP) is critical to Michigan communities. It reduces health care costs, improves educational outcomes, and supports local jobs and economies. According to Michigan League for Public Policy, approximately 14% of Michiganders live in households that do not have consistent, secure supplies of food, and “African-American residents, who are much more likely to live in high-poverty neighborhoods with few sources of healthy foods, are twice as likely to face food shortages.” The Michigan Department of Health and Human Services has explained that food assistance is also lower than most people imagine, with the average amount per person this year around $173 per month or $5.68 per day. Despite this, food assistance eases budget strains for low-income households, and losses in food assistance have a domino effect in covering rent, transportation, and other costs.

Two big changes are coming this fall:

1. Internet costs won’t count anymore.

U.S. Department of Agriculture had allowed families to include a basic internet bill in their standard utility allowance (SUA), recognizing that internet is as essential as electricity for work, school, and accessing benefits. OBBBA cancels that. Starting October 1, 2025, internet costs will no longer help increase SNAP benefits.

2. Cuts to the Heat and Eat program.

The “Heat and Eat” program has been a lifeline in many states. Here’s how it works: if a household receives even a very small Low Income Home Energy Assistance Program (LIHEAP) payment —as little as $30 a year — that automatically qualifies them for the higher Heating and Cooling SUA. This boosts their SNAP benefits without requiring complicated proof of utility bills.

OBBBA cuts back on this option. States will no longer be able to use these small LIHEAP payments to qualify households for the HCSUA. This means that families whose rent already includes utilities, or who don’t have bills in their own name, may lose access to the higher SUA and see their benefits shrink.

Checklist to consider:

1) Maximize non-utility deductions

Medical expenses (if age 60+ or disabled): Gather and submit recurring costs (prescriptions, co-pays, over-the-counter medications with doctor’s note, transportation) to claim the medical expense deduction.

Dependent care costs: Make sure child or adult care receipts are on file.

Legally obligated child support paid: Provide proof to increase the income deduction.

2) Protect access to the heating and cooling allowance

Document utility responsibility: Keep current lease/utility bills in the head of household’s name showing responsibility for heating or cooling costs.

3) Anticipate loss of the internet component

Switch to Lifeline or low-cost Internet Service Provider (ISP) plans: Clients may be able to use the Federal Communications Commission (FCC) Lifeline Program and carrier “low-income” plans to maintain service. The State has put together this list of such resources.

Leverage community workarounds if internet no longer fits into a budget: Public libraries, school-issued hotspots, and community center Wi-Fi can help families access benefits portals, telehealth, and job search tools. The State of Michigan has issued this map of publicly available Wi-Fi resources around the state. In coming months, these thirteen organizations will be rolling out resource centers for internet access through a recent state grant, which may provide another source of support.

4) Time recertifications and report changes strategically

Report higher shelter or utility costs promptly: Rent increases, a new electric bill in the client’s name, or medical costs can offset some losses.

5) Add energy affordability supports

Apply early for LIHEAP (energy help) and the Weatherization Assistance Program (WAP): These programs lower overall spending on utilities, easing the impact of a smaller SNAP deduction.

Ask utilities about Budget Billing or Arrearage Management Programs: Many utility providers offer levelized billing and programs that forgive portions of past-due balances with on-time payments.

6) Seek alternative nutrition supports

Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), school meals (including the Community Eligibility Provision, or CEP), Summer Electronic Benefit Transfer (Summer EBT), and local pantries:. The Mutual aid hub may also be a resource for food through these changes. These can stabilize food budgets while SNAP adjusts.