USDA Proposes Rule to Reform Supplemental Nutrition Assistance Program Categorical Eligibility

On November 10 2026 the Food and Nutrition Administration of the Department of Agriculture published a proposed rule in the Federal Register regarding the Supplemental Nutrition Assistance Program. The regulatory action titled Supplemental Nutrition Assistance Program: Reforming Categorical Eligibility proposes amending current regulations at Title 7 of the Code of Federal Regulations Part 273. The primary change limits categorical eligibility for food assistance solely to households receiving Temporary Assistance for Needy Families assistance as defined by federal regulations at Title 45 Code of Federal Regulations section 260.31. Written comments on the proposed rule are scheduled to close on December 10 2026. This administrative development revives a longstanding debate concerning how federal safety net programs interact with state-administered block grants. Background and Legislative History The statutory foundation for the Supplemental Nutrition Assistance Program dates back to the Food Stamp Act of 1977 which established eligibility based on household income and resource standards created by Congress. Subsequent legislation including the Omnibus Reconciliation Act of 1982 refined these criteria. Under the current Food and Nutrition Act of 2008 households without elderly or disabled members must maintain a monthly gross income equal to or lower than 130 percent of the Federal Poverty Guidelines and a net income equal to or lower than 100 percent of the Federal Poverty Guidelines. Categorical eligibility was introduced through the Food Security Act of 1985 as a pilot project. Lawmakers intended the mechanism to eliminate redundant paperwork by allowing state workers to accept eligibility determinations made under other means-tested assistance programs with financial criteria equal to or more restrictive than food assistance standards. The Hunger Prevention Act of 1988 made categorical eligibility permanent. Legislative reports from that era emphasized that relying on external eligibility determinations reduced administrative burdens while ensuring assistance reached very needy individuals. The Shift from AFDC to TANF When Congress established categorical eligibility the Aid to Families with Dependent Children program served as the primary cash assistance vehicle for low-income families with children. The Aid to Families with Dependent Children program shared close programmatic alignment with food assistance standards. However the passage of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 fundamentally altered the welfare landscape by replacing Aid to Families with Dependent Children with the Temporary Assistance for Needy Families block grant program. This statutory shift transitioned federal policy from primarily cash assistance to a flexible funding model encompassing cash support and various non-cash services. States gained substantial discretion over Temporary Assistance for Needy Families eligibility criteria. Many states began utilizing block grant funds for non-cash benefits lacking the strict income and resource limits of earlier programs. These services included childcare worker training programs and family support initiatives authorized under broader statutory purposes. Because certain Temporary Assistance for Needy Families funded services lacked income limits or featured thresholds significantly higher than food assistance standards critics argued that categorical eligibility expanded well beyond its original administrative purpose. Regulatory Impact and Prior Rulemaking The Department of Agriculture previously attempted to address this policy divergence under past administrations. On July 24 2019 the agency proposed a rule that would have limited Temporary Assistance for Needy Families benefits conferring categorical eligibility to those characterized as ongoing and substantial. The Biden administration subsequently withdrew that proposed rule on June 10 2021. Under the newly proposed framework the agency seeks to align categorical eligibility strictly with federal definitions of assistance. The accompanying regulatory impact analysis acknowledges that these revisions may introduce increased administrative burdens for state agencies, reduce overall food assistance spending, and potentially impact eligibility for federally funded school meal programs tied to program participation.