# Plain Language Summary: No Welfare for the Wealthy Act of 2023

This bill targets what supporters call the "nominal benefits loophole" in the food stamp program (officially called SNAP, or the Supplemental Nutrition Assistance Program). Currently, there's a rule that allows households to receive food stamp benefits even if they technically don't meet the income and resource limits, as long as they receive at least some minimal amount of benefits. This bill would eliminate that exception and require households to actually qualify under the standard income and resource rules to get any benefits at all.

In practical terms, this means some households that currently receive small food stamp payments would lose eligibility entirely. The bill targets situations where someone might have income or assets slightly above the normal limits but still qualifies for a tiny benefit amount under current rules. Once this bill takes effect, those people would get nothing instead of that small payment. The change would apply to new certification periods starting one year after the bill becomes law, so there would be a transition period before the new rules kick in.

The main impact would fall on households near the income cutoff for food stamps—people who are just barely over the limit but currently receive minimal benefits. Supporters argue this prevents wealthy people from gaming the system, though critics might point out that anyone receiving food stamps is likely struggling financially. The bill doesn't change eligibility for people who clearly qualify under normal income and resource limits; it only affects those borderline cases where the current system allows tiny benefit amounts.

No Welfare for the Wealthy Act of 2023

Cline, Ben

No Welfare for the Wealthy Act of 2023This bill requires all households participating in the Supplemental Nutrition Assistance Program (SNAP) to meet the program's income and asset requirements.Federal requirements generally provide two pathways for SNAP financial eligibility. A household may meet program-specific federal eligibility requirements, which include both income eligibility and an asset test. A household may also be automatically or&nbsp;categorically eligible for SNAP based on eligibility for or receiving cash benefits from other specified low-income assistance programs (e.g., Temporary Assistance for Needy Families [TANF]). Under this categorical eligibility, households that already meet financial eligibility rules in a program like TANF are not required to go through another financial eligibility determination in SNAP.Further, a majority of states also provide broad-based categorical eligibility (BBCE), a policy that makes most households with an income below a certain threshold categorically eligible for SNAP. Under BBCE, these states typically make households&nbsp;categorically eligible through receiving or being authorized to receive a minimal non-cash TANF benefit or service (e.g., a pamphlet). A state may set its own BBCE financial eligibility requirements for a household so long as the income requirement is below a certain level. A state's&nbsp;requirements do not have to match SNAP program-specific eligibility requirements. For example, most states that provide BBCE do not have an asset test for SNAP eligibility.&nbsp;The bill requires all SNAP households, including those that qualify under categorical eligibility, to meet the SNAP program's income and asset requirements. These requirements take effect one year after the bill's enactment and do not apply to certification periods that begin before the effective date.&nbsp;