• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
PoliticsJoe Biden

Biden to provide more than 25% boost to food stamp benefits

By
Mike Dorning
Mike Dorning
and
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Mike Dorning
Mike Dorning
and
Bloomberg
Bloomberg
Down Arrow Button Icon
August 16, 2021, 12:00 PM ET
Video Poster
Add Fortune on Google for similar content.

The Biden administration will give the biggest long-term increase in food stamp benefits in the program’s history, giving Americans more money to buy groceries and adding billions of dollars in costs to the government, Agriculture Secretary Tom Vilsack said in a call Monday.

Average benefits in October will go up by more than 25% from pre-pandemic levels for the 42 million people in the program, a U.S. official said, speaking on condition of anonymity before Monday’s announcement.

The increase means that average monthly benefits will rise $36 per person from $121, according to the official. The New York Times reported the planned change earlier. The increase also means an approximate $20 billion cost increase per year for the program, Vilsack said.

“I think the pandemic sort of shocked people out of the belief that this is a program that was for some others, somebody else, I would never be involved in the SNAP program,” Vilsack said. “All the sudden we found families either in need of SNAP or in need of the food bank pantry system that never in a million years thought that they would be faced with that situation.”

Anti-hunger advocates have said the government subsidy is inadequate. The Agriculture Department is increasing the payments by revising the list of foods used to estimate the cost of a nutritious diet. Congressional approval isn’t needed for the change.

Without the Biden administration’s update in the formula, food stamps benefits would have dropped in October, with the Sept. 30 expiration of a temporary 15% boost provided by pandemic relief legislation. Now they will rise instead.

President Joe Biden has been seeking to increase government assistance to low-and middle-income Americans amid a pandemic in which many lost their jobs. Republicans have said Biden’s economic plan is fueling inflation and serves as a disincentive for people to work.

The move on food stamps is a reversal from the Trump administration, which tried to limit eligibility for food aid, though the proposed restrictions were overturned by courts.

Food stamps, formally known as the Supplemental Nutritional Assistance Program, once enjoyed broad bipartisan support. They’ve evolved into a partisan flashpoint in recent years, as conservatives fought to shrink the program. House Republicans tried to impose cuts in 2013 and 2018, the last two times the program was reauthorized as part of the five-year Farm Bill.

The instrument for the benefit increase is an obscure U.S. Department of Agriculture shopping list used to determine food stamp benefits, known as the Thrifty Food Plan. A provision in the 2018 Farm Bill called for an update of the market basket, and Biden ordered the department to proceed with the review two days after he took office.

The U.S. has periodically reviewed the market basket, first established as the Economy Food Plan in 1961 and updated in 1975 as the Thrifty Food Plan, to adjust for changes in nutritional guidelines and food consumption patterns. The most recent review was in 2006. Yet the prior reviews were always constrained to keep costs constant.

The 2018 Farm Bill, passed under Trump, imposed no cost constraint on the formula review.

$835 monthly

Advocates argue that the $22-a-day food budget USDA currently sets for a family of four is woefully inadequate and relies on outdated, unrealistic assumptions.

The market basket assumes a family eats more than five pounds of beans a week, for example. And outside studies have found that the food plan requires spending about two hours a day preparing meals, largely from scratch, at a time the average American family spends just a half hour on daily food preparation.

The Biden review allowed benefit recipients 7% more calories, based on weight gains in the U.S. population and new exercise recommendations, the USDA official said. It also incorporates the latest government dietary standards, adding more red and orange vegetables and more seafood, such as canned tuna.

The review also factored in the amount of time it takes to cook meals. Consequently, recipients are assumed to mostly use canned beans rather than dried beans and use other convenience foods such as bagged lettuce.

Congressional Republicans signaled skepticism even before the results of the update became known. The top-ranking Republicans on the Senate and House Agriculture committees, which oversee the program, asked in advance for a General Accountability Office investigation of how the Biden administration conducted the review.

Food stamp benefits are calculated on a sliding scale based on income and the number and age of people in a household.

The new maximum benefit for a family of four will increase to $835 a month, a 21% increase from pre-pandemic levels. The average benefit will rise 27%, adjusted for inflation.

Recipients are expected to spend 30% of their net income on food, with food stamps making up the deficit from the USDA food budget. Benefits can only be used to purchase groceries.

More than a quarter of the households enrolled in SNAP exhaust their monthly benefits in the first week after issuance, and more than half do so by the second week, according to a 2011 USDA study.

There are assumptions on what families in the program will do and need over time, and “we need to modernize those assumptions based on what’s actually happening in kitchens and in homes across America,” Vilsack said.

—With assistance from Elizabeth Elkin.

More must-read business news and analysis from Fortune:

  • Can you get unemployment if you lose your job for refusing to get vaccinated?
  • When to expect the best lumber deals
  • The “crazy” is leaving the housing market
  • Grocery prices continue to rise—and there’s no end in sight
  • How harsh are China’s COVID restrictions? A single infection closed the world’s third-busiest port

Subscribe to Fortune Daily to get essential business stories straight to your inbox each morning.

About the Authors
By Mike Dorning
See full bioRight Arrow Button Icon
By Bloomberg
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Politics

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Politics

Trump to impose 50% tariffs on most Canadian goods, invoking the ‘nuclear option’ that could unleash a new wave of economic chaos and inflation
EconomyTariffs
Trump to impose 50% tariffs on most Canadian goods, invoking the ‘nuclear option’ that could unleash a new wave of economic chaos and inflation
By Josh Boak and The Associated PressJuly 20, 2026
9 hours ago
President Donald Trump walks down the steps from Air Force One.
PoliticsDonald Trump
Trump admin attempted to uncover phone records of NYT journalists and sources related to coverage of Qatari-gifted Air Force One
By The Associated Press, Eric Tucker and Jocelyn NoveckJuly 20, 2026
10 hours ago
Alaskan pilot Ken Jouppi sits in an aircraft hanger in front of a plane.
LawSupreme Court
A passenger brought a 6-pack of beer on an Alaskan pilot’s plane. He now has to defend his plane’s seizure in front of the Supreme Court
By The Associated Press and Michael KunzelmanJuly 20, 2026
11 hours ago
Blue Owl Capital owns about a third of the Freedom Fuel properties: A look inside the $3.47 gas chain
North AmericaDonald Trump
Blue Owl Capital owns about a third of the Freedom Fuel properties: A look inside the $3.47 gas chain
By Brian Slodysko, Michael Biesecker and Josh BoakJuly 20, 2026
11 hours ago
A 13-year-old teenage boy looks at an iPhone screen displaying various social media apps.
PoliticsSocial Media
French President Macron backs effort to ban kids under 15 from social media before departing office next year
By The Associated Press and Samuel PetrequinJuly 20, 2026
12 hours ago
jd
PoliticsWhite House
JD Vance becomes first sitting vice president to welcome a child in office in over 150 years
By Darlene Superville and The Associated PressJuly 20, 2026
19 hours ago

Most Popular

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
14 hours ago
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Success
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
By Sydney LakeJuly 20, 2026
18 hours ago
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
AI
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
By Jason MaJuly 18, 2026
2 days ago
Warren Buffett says his $147 billion investing career was an accident: ‘I may be one of the 10 luckiest in the world’
Future of Work
Warren Buffett says his $147 billion investing career was an accident: ‘I may be one of the 10 luckiest in the world’
By Sarah GlodekJuly 20, 2026
1 day ago
Current price of silver as of Monday, July 20, 2026
Personal Finance
Current price of silver as of Monday, July 20, 2026
By Joseph HostetlerJuly 20, 2026
22 hours ago
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
Retail
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
By Sasha RogelbergJuly 20, 2026
22 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.