Food Stamps

Just a few weeks ago, Congress signed the new Farm Bill, which covered both agricultural and food stamps’ needs. One of the biggest debating points was the contentious “Heat and Eat” policy, a loophole that was widely exploited in every state. That loophole’s since been amended, but New York Governor Andrew Cuomo is doing things a little differently.

Heat and Eat

Although everyone’s probably familiar with the “Heat and Eat” policy, here it is one more time for good measure: SNAP recipients who paid rented either also paid utilities as extra, or had the utilities bundled in. Those who pay extra are eligible for extra assistance from their state, while many states also extended the same provision to those who had utilities included in their rent. To circumvent this piece of legislation, states set the minimum of energy assistance at $1, which has since been raised to $20 with the signing of the new Farm Bill. While this hasn’t cut anyone off from the food stamps they received before the Farm Bill was signed, it did mean they didn’t get access to extra provisions that the “Heat and Eat” policy unlocked.

Meanwhile, in New York…

New Yorkers have long had a reputation for doing things their own way, regardless of whatever the rest of the country is also doing. Good or bad, it’s a big part of the state’s personality and now they’re at it again. Governor Andrew Cuomo, concerned that 300,000 families would go hungry, said in a statement: “New York is stepping up to help families in need who are losing vital food assistance because of Washington cuts to the SNAP program. These federal cuts have made it harder for our state’s most vulnerable residents to put food on the table. The State has intervened on behalf of these low-income New Yorkers to make sure they can get food for themselves and their families.

Governor Cuomo plans on having New York funnel $6 million difference from the Office of Temporary and Disability Assistance (OTDA) to the federal Low Income Home Energy Assistance Program (LIHEAP), essentially paying for people’s Home Energy Assistance Program (HEAP) contributions when they can’t. On an individual basis, it’s not a lot of money per person and only works out to $20 per year per person, but the gesture is huge. Families or individuals who now won’t be cut off from the extra benefits can keep the extra average of $127 per month.

Counterpoint

Critics will, of course, point to the fact that New York’s personal bump of $6 million will end up costing the federal program a lot more. If even one individual is considered, the $20 New York is paying for them amounts to their being able to get an extra $1,524 a year—a huge difference. Multiply that by the 300,000 households who will benefit from Governor Cuomo’s action, and the amount swells to $457.2 million—a mighty high price to pay, or a mighty fine return on investment, depending on how you look at it.

No doubt, Governor Cuomo’s move will prove to be a polarizing one, but the families on the receiving end are no doubt behind him on every step.

What are your thoughts on Governor Cuomo’s plan to skirt the closed “Heat and Eat” loophole?