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Flexible spending accounts let you stash away pre-tax money to cover your health care expenses (or, separately, dependent-care expenses).
Last year, individuals could have contributed as much as $2,850 to their health care FSA.
If you had a balance remaining on Dec. 31, you may still be able to use the money, depending on your employer’s FSA rules.

Joos Mind | Photodisc | Getty Images

Workers who use health-care flexible spending accounts likely have at least one important deadline approaching.
FSAs, as they’re called, let you stash away pre-tax money to cover your health-care expenses (or, separately, dependent-care expenses). Last year, individuals could have contributed as much as $2,850 to their health-care FSA. The limit for 2023 is $3,050.

Yet most companies have a “use it or lose it” policy — meaning that if you have a balance remaining on Dec. 31, you’ll end up forfeiting that money if your health-care expenses during the year were lower than your contributions.
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However, you might still have options for using your 2022 FSA balance, depending on your employer’s rules.
Here’s what to know.

You may still have time to submit 2022 expenses

If you have proof of 2022 expenses that qualify but you haven’t yet submitted them for reimbursement, most employers give you extra time to do so — a so-called “run-out” period.

“It’s optional, but almost all employers offer it,” said Lisa Myers, director of client services and benefits accounts for consultant Willis Towers Watson. “It just gives [workers] extra time to get reimbursed for expenses incurred last year.”
The most common deadline for this is March 31, she said, although some companies may give you six or 10 months.

Be aware that any documentation you submit to substantiate your claim must include five key things, Myers said: date of service, patient name, the provider’s name (i.e., your doctor or dentist), the type of service and the amount. Otherwise, the claim may get kicked back to you.

Some offer a grace period or carryover amount

Meanwhile, some employers also provide a grace period to spend any remaining 2022 FSA money — meaning qualifying 2023 health-care expenses also can be applied against last year’s balance. This period typically ends March 15.
“You can think of it as a two and half-month extension of your 2022 plan,” Myers said. 
And other companies allow you to carry over up to a certain amount from the previous year. For 2022 carryovers to 2023, that limit is $570 — although your company may have a lower cap.

Among workers who are allowed to carry over money, 49% end up forfeiting all or part of it, according to the Employee Benefit Research Institute. For those with a grace period, that share is 37%. Additionally, 48% with a traditional Dec. 31 deadline forfeit money, as well.

Check with your employer about its FSA rules

It’s common for workers to not know what their employer’s FSA rules are. If you’re uncertain, reach out to your company’s human resources department.
Alternatively, you can check your online FSA portal (if your company has one) for information. There also should be a phone number for customer service on the back of your FSA debit card that you can call.

The list of FSA-eligible items is lengthy

If you discover you’ve only got until March 15 to spend down remaining 2022 funds and are unsure how to use the money, there’s a broad range of services and products that qualify.
“Most people are surprised to learn everything that’s eligible,” said Rachel Rouleau, chief compliance officer for Health-E Commerce, parent company of FSAstore.com.
For starters, over-the-counter drugs don’t need a prescription to qualify. This includes things such as cold medicines, anti-inflammatories and allergy medicine.

Most people are surprised to learn everything that’s eligible.

Rachel Rouleau
Chief compliance officer for Health-E Commerce

Additionally, menstrual care products are eligible, as are items that became pertinent during the pandemic, such as at-home Covid tests, masks, hand sanitizer and other personal protection equipment used to combat the virus.
Other products that qualify include sunscreen, thermometers, eye-care products, baby monitors and pregnancy tests. FSAstore.com has a list of eligible items if you are uncertain whether something would qualify.
Be aware that the IRS does not allow stockpiling, which generally means you can’t buy more of a product at one time than you can use in that tax year. The specifics, though, are determined by FSA administrators.

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Now that the Supreme Court has heard oral arguments over Biden’s student loan forgiveness plan, here’s what borrowers can expect next.
Experts say a decision may come by late June.

A sign calling for student loan debt relief is seen in front of the Supreme Court as the justices are scheduled to hear oral arguments in two cases involving President Joe Biden’s bid to reinstate his plan to cancel billions of dollars in student debt in Washington, U.S., February 28, 2023. 
Nathan Howard | Reuters

Now that the Supreme Court has heard oral arguments over student loan forgiveness, borrowers may be wondering: What’s next?
Oral arguments last only a day, but the justices can take months to reach a decision, experts say. In an analysis of the last Supreme Court’s term, higher education expert Mark Kantrowitz found that half of the decisions were issued in June.

For many borrowers, that may be an agonizing wait: More than 26 million people applied for the Biden administration’s relief program before the U.S. Department of Education had to close its application portal amid legal challenges. The decision reached by the nine justices will determine whether those borrowers get up to $20,000 of their debt canceled.
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“For many people, this is life and death,” said Thomas Gokey, co-founder of the Debt Collective, a national union of debtors. “What’s at stake is being forced to choose between paying for student loans or being able to buy groceries, make rent and pay medical bills.”
Here’s what borrowers need to know while they wait for the Supreme Court’s ruling on student loan forgiveness.

Experts say the ruling could go either way

President Joe Biden’s plan has faced at least six lawsuits since it was rolled out in August.

The nine justices on Tuesday considered two of those legal challenges: one from six GOP-led states —Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina — and another backed by the Job Creators Network Foundation, a conservative advocacy organization.
Prior to the oral arguments, legal experts expected Biden’s plan to face tough odds with the justices. However, they then lobbed praise on Solicitor General Elizabeth Prelogar, the lawyer who represented the Biden administration in front of the highest court, for her performance, and some changed their tune.
“The Biden administration now seems more likely than not to win the cases,” Kantrowitz said.
University of Illinois Chicago law professor Steven Schwinn said Prelogar “knocked it out of the park.”
“I do think she could have influenced or even changed the thinking of two justices, maybe more,” he added.

The plaintiffs argued that the president doesn’t have the power to wipe out $400 billion in student debt without the authorization of Congress. The government attorney defending the policy countered that the Education Department can make changes to the federal student loan system, including debt forgiveness, during national emergencies.
A top Education Department official recently warned that the public health crisis has caused considerable financial harm to student loan borrowers and that its debt cancellation plan is necessary to stave off a historic rise in delinquencies and defaults.
At times, the justices seemed skeptical that those emergency powers included the kind of sweeping loan forgiveness the president is trying to carry out. But they also seemed doubtful at points that the plaintiffs had successfully proven they’d be harmed by the plan, which is typically a requirement to have standing to sue.

Payment pause on federal student loans is still ongoing

Federal student loan payments have been on pause since March 2020, when the coronavirus pandemic first hit the U.S. and crippled the economy. When the bills restart depends on how long the Supreme Court justices take to issue a decision, Kantrowitz said.
The Education Department in November said the bills would resume 60 days after the litigation over its student loan forgiveness plan resolves.
If the legal issues with the administration’s forgiveness plan are still unfolding by the end of June, or if it’s not allowed to move forward with forgiving student debt by then, payments will pick up at the end of August.
If the justices allow student loan forgiveness to go through, many borrowers will never have to restart payments. According to a White House estimate, roughly 20 million people could have their debt entirely cleared under the president’s plan.
“Sixty days will be enough to forgive student loan debt if the president’s plan survives,” Kantrowitz said. “They’ve already approved forgiveness for 16 million borrowers, so they just need to transmit this information to the loan servicers.”
He added: “It should take one to two weeks for the servicers to implement.”

A ruling against student loan forgiveness isn’t the end

Experts say that should the justices rule against the student loan forgiveness plan, the Biden administration could look for other ways to deliver its relief. The administration also could try to keep the payment pause in place for longer while it figures out those next steps.

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Smart Tax Planning

The Senate Finance Committee this week voted to advance Daniel Werfel’s nomination to become IRS commissioner.
The nomination process comes amid fierce debate over the agency’s $80 billion in new funding. 
The bipartisan committee vote was the final step before a full Senate vote on confirmation. 

Sen. Ron Wyden, D-Ore., speaks during a Senate Finance Committee nomination hearing on Feb. 23, 2021.
Greg Nash | Pool | Reuters

The Senate Finance Committee this week voted to advance Daniel Werfel’s nomination to become IRS commissioner amid fierce debate over the agency’s $80 billion in new funding. 
Following a confirmation hearing on Feb. 15, the bipartisan committee vote was the final step before a full Senate vote on confirmation.

Senate Finance Committee Chair Ron Wyden, D-Ore., said Werfel’s February testimony demonstrated he’s a “rule follower” who will work with “both sides of the committee.”  

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“He’s going to go through, I believe, in a matter of weeks,” said Mark Everson, a former IRS commissioner and current vice chairman at Alliantgroup, noting there is support from both sides of the aisle. 
“There’s a great deal of contention about the proper role of the IRS and tax administration in terms of its role on wealth distribution and a host of other issues,” he said. “But there’s agreement that you need a competent, accountable commissioner running this vital organ of government — and Danny Werfel is that person.”
Prior to Werfel’s role at Boston Consulting Group, he served former President George W. Bush as acting controller of the Office of Management and Budget. Under former President Barack Obama, he become permanent OMB controller, and later served as acting IRS commissioner.

Oversight of IRS funding is a priority for Republicans

The Senate Finance Committee vote comes amid continued scrutiny of the $80 billion in IRS funding allocated in August through the Inflation Reduction Act.

After months of disapproval, House Republicans in January voted to rescind the funding. But without support from the Democrat-controlled Senate or the White House, the bill was largely seen as political messaging.
And a group of House Republicans in January revisited the Fair Tax Act, which aimed to replace certain federal levies with a national sales tax and to decentralize the IRS. But policy experts say the fair tax has never been a mainstream idea.

In February, the Republican-led House Ways and Means Committee announced oversight priorities, with the $80 billion IRS funding “at the top of the list,” according to Chairman Jason Smith, R-Mo.  
Meanwhile, the IRS missed the six-month deadline to submit a plan for the funding on Feb. 17, as requested by Treasury Secretary Janet Yellen in August. Her priorities focused on taxpayer service, such as clearing the backlog of unprocessed tax returns, boosting customer service, overhauling technology and hiring workers.
Sen. John Cornyn, R-Texas, a member of the Senate Finance Committee, on Thursday spoke about the missed deadline during his opening statement, noting it’s “not inspiring when it comes to regaining the confidence of the American people.”
However, Everson believes the delay is an intentional choice from the agency.
“It would only muddy the waters because it would potentially give rise to another round of questions for the nominee,” he said.   More

Omar Marques | Lightrocket | Getty Images

Shares of Silvergate Capital plummeted Thursday after the bank delayed the filing of its annual 10-K report as it evaluates events that have happened since the end of 2022.
The company, which provides banking services to crypto businesses, ended the day lower by 57.72%. That pushed its year-to-date loss to 67%. It’s lost 95.7% in the past year.

Silvergate said in a filing Wednesday that it needs additional time for its accounting firm to complete certain audit procedures and that it’s “currently analyzing certain regulatory and other inquiries and investigations.”
Specifically, it cited the “sale of additional investment securities beyond what was previously anticipated” and the “impact that these subsequent events have on its ability to continue as a going concern.”
“The losses from the securities sales appear large enough to result in Silvergate calling out that it may now be less than well capitalized on its regulatory capital ratios,” JPMorgan analyst Steven Alexopoulos said in a note Thursday. “Given significant regulatory challenges (including the pending investigations from regulators) and business challenges (including the exacerbating liquidity challenges amid a crisis of confidence from digital asset customers), the company is reevaluating its businesses and strategies.”
JPMorgan downgraded Silvergate shares Thursday along with other Wall Street analysts.
Silvergate noted that its preliminary, unaudited financial results for 2022, filed Jan. 17, included a net loss attributable to common shareholders of $948.7 million, compared with net income of $75.5 million in 2021.

Silvergate is has been facing several challenges since the end of last year, following the blowup of crypto exchange FTX. In January it suffered another 40% drop in a single day after reporting massive withdrawals in the fourth quarter, in light of the FTX collapse. Then in February the Department of Justice opened an investigation into the bank’s dealings with FTX and its sister company Alameda Research.
The move in its shares weighed on Signature Bank, which also banks crypto startups. Its stock hit a 52-week low intraday, and fell as much as 7%
Coinbase also fell as much as 11%, but cut losses as the stock market rallied and finished the day down just 1.5%. The crypto services company said in a statement that has de minimis corporate exposure to Silvergate and that it has stopped accepting or initiating payments to or from Silvergate. Hedge fund Galaxy Digital, stablecoin issuers Circle and Paxos and others have taken the same measure.
The move did not have a big effect on cryptocurrencies, however. Bitcoin and ether both hovered at the flatline.

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Smart Tax Planning

If you’re banking on a refund this tax season, the IRS said you should file a complete and accurate return to avoid delays.
Before rushing to file, it’s important to gather tax documents for activity like your income, deductions and credits.
You can review last year’s tax return to make a checklist of which forms you may need this season.

Valentinrussanov | E+ | Getty Images

If you’re banking on a refund this tax season, the IRS has a warning: You should file a complete and accurate return to avoid delays.
While it’s been a smoother filing season compared with years past, it’s still important to file correctly the first time, experts say. One way to avoid possible issues is by getting organized with the necessary tax forms, known as information returns, sent to the IRS and taxpayers yearly.

“Missing tax documents are definitely going to cause a refund delay,” said Sheneya Wilson, a certified public accountant and founder of Fola Financial in New York.

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Here’s why: If you skip tax forms received by the agency, the IRS systems may flag your return and mail you a notice, she explained.
Whether you’re working with a tax professional or filing on your own, here’s what to know about your tax forms — and when to expect them.

When you’ll receive each tax form

While most tax forms have a Jan. 31 deadline, others aren’t due until mid-February or beyond, said certified financial planner John Loyd, owner at The Wealth Planner in Fort Worth, Texas. 
For example, the deadline for 1099-B for capital gains and losses and 1099-DIV for dividends and distributions is Feb. 15. But some investment firms get an extension from the IRS for more time to validate forms and avoid corrections, meaning you may not receive these forms until March, Loyd said. 

If you do need a corrected form, it can slow down your filing process because it takes time for the investment firm to update and reissue your documents, he said.
Regardless of your situation, it’s important to have all the necessary forms handy before filing your return, Loyd said. “It’s 1,000 times better” to file correctly the first time, he added, noting that IRS notices may take months to resolve.

Make a checklist with last year’s return

If you’re not sure which tax forms to expect, experts say last year’s tax return is a great starting point.
“I go page-by-page with the prior year and current year’s [returns],” said Marianela Collado, a CFP and CEO of Tobias Financial Advisors in Plantation, Florida. She is also a CPA. “That’s always a good check,” she said.
For earnings, some of the common forms include a W-2 for wages, 1099-NEC for contract or gig economy work, 1099-G for unemployment income and 1099-R for retirement plan distributions. 
For 2022, you probably won’t receive a 1099-K for payment apps such as Vemno or PayPal unless there were more than 200 payments worth an aggregate above $20,000. If you receive this form by mistake, the IRS said it is working on guidance.

Of course, it’s also important to make sure the numbers on your tax return match those on your 1099s because “that’s something that could trigger a delay,” Collado said.   
As for tax breaks, you may need forms 1098 for mortgage interest, 5498 for individual retirement account deposits, 5498-SA for health savings account contributions, 1098-T for tuition, 1098-E for student loan interest and more. More

Questions on fairness and the scope of the president’s power emerged as the Supreme Court justices debated Biden’s student loan forgiveness plan.
Here were some of the most heated exchanges during the arguments.

Justices on the bench hearing arguments about the student loan forgiveness program.
Source: Bill Hennessy

There were many tense moments Tuesday as the nine Supreme Court justices grilled the plaintiffs challenging the Biden administration’s student loan forgiveness plan and the government attorney defending the policy.
The Supreme Court agreed to hear two challenges against President Joe Biden’s unprecedented plan to cancel up to $20,000 in student debt for tens of millions of Americans. Six Republican-led states brought one lawsuit against the forgiveness plan, and conservative advocacy organization, the Job Creators Network Foundation, backed the second. Both accuse the president of overstepping his authority.

While the justices heard oral arguments, hundreds of student loan borrowers from around the country gathered outside the court in support of the president’s plan, with signs bearing messages such as “Death to student debt” and “Student debt cancellation is legal.”
The justices are expected to issue a decision by the end of June.
Here were three of the most heated exchanges during the arguments.

Response to a ‘once-in-a-century pandemic’

The Heroes Act of 2003, which the Biden administration is using as its legal justification to carry out its student loan forgiveness program, authorizes the education secretary to “waive or modify” student loan programs during national emergencies to avoid borrower distress.
Some of the justices expressed skepticism that that law permits the president to carry out the kind of sweeping debt relief his forgiveness plan entails. At an estimated cost of about $400 billion, Biden’s plan is one of the most expensive executive actions in history.

“You think…Congress shouldn’t have been surprised when half a trillion dollars is wiped off the books?” asked Chief Justice John Roberts.
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In response, Solicitor General Elizabeth Prelogar, the lawyer representing the Biden administration in front of the nine justices, said she recognized it was a big action.
“But that’s in direct reaction to the COVID-19 pandemic, which itself was a really big problem,” Prelogar said.
“There hasn’t been a national emergency like this in the time that the Heroes Act has been on the books that’s affected this many borrowers,” she said. “And so I think it’s not surprising to see in response to this once-in-a-century pandemic.”

Whether student loan forgiveness is ‘fair’

Supreme Court Justice Samuel Alito became frustrated with Prelogar at one point, accusing her of not answering his question on the fairness of the forgiveness plan.
“I’ll try one more time,” Alito said. “Why was it fair to the people who didn’t get arguably comparable relief?”
Prelogar replied that Congress had already made the decision to allow the Secretary of Education to provide borrowers relief when they’re impacted by a national emergency.
“And you could make this critique of every prior exercise of Heroes Act authority,” the solicitor general said. “There too, you could say, ‘Well, that only benefits the specific enumerated affected individuals,’ but it’s Congress who defined those individuals, and the secretary acted properly here in giving them relief.”

A top U.S. Department of Education official recently warned that the public health crisis has caused considerable financial harm to student loan borrowers and that its debt cancellation plan is necessary to stave off a historic rise in delinquencies and defaults.
Justice Sonia Sotomayor built on Prelogar’s response, pointing out that throughout the pandemic, different relief measures helped different people. One example is the Paycheck Protection Program, which aimed to offer potentially forgivable government loans to small businesses hurting from the pandemic.
“There’s inherent unfairness in society because we’re not a society of unlimited resources,” Sotomayor said. “Every law has people who encompass it [and] people outside it.”

Legal standing

The biggest obstacle for those trying to challenge Biden’s student loan forgiveness plan has been proving that they’ve been harmed by the policy, which is typically a requirement to have standing to sue.
The six states — Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina — opposing the president’s plan argue that debt forgiveness would lead to a loss of profits for the companies that service federal student loans in their states, particularly MOHELA, or the Missouri Higher Education Loan Authority.
Yet the justices were perplexed as to why the servicers weren’t bringing their own challenges then, and how the states could claim harm on their behalf.
“Do you want to address why MOHELA’s not here?” Justice Amy Coney Barrett asked.
“MOHELA doesn’t need to be here because the state has the authority to speak for them,” Nebraska Solicitor General James A. Campbell said.
Barrett wasn’t satisfied by that answer.
“Why didn’t the state just make MOHELA come then?” she asked. “If MOHELA is really an arm of the state…why didn’t you just strong-arm MOHELA and say you’ve got to pursue this suit?”
Campbell replied: “Your honor, that’s a question of state politics.”
MOHELA recently said its executives had no involvement in Missouri Attorney General Eric Schmitt’s decision to sue.

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The New Road to Retirement

Of the more than 2,250 Medicare Advantage Plan enrollees surveyed for a new report, 51% are “very satisfied” and 38% are “satisfied” with their plan.
If you are not among them, a current opportunity to change your coverage ends March 31.
Here’s what to know.

momcilog | E+ | Getty Images

For the most part, Medicare beneficiaries in Advantage Plans are happy with their coverage, a new study suggests.
Of the more than 2,250 enrollees surveyed for the report from eHealth, 51% are “very satisfied” and 38% are “satisfied.”

However, if you’re among those who are not thrilled about your 2023 Advantage Plan, you can do something about it.

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Your opportunity to make a change ends March 31

Each year between Jan. 1 and March 31, beneficiaries who are unhappy with the choice they made during Medicare’s annual open enrollment period (Oct. 15 – Dec. 7) can switch to a different Advantage Plan. Or, they can drop the one they have altogether in favor of basic Medicare (Part A hospital coverage and Part B outpatient care coverage).
“It’s the time of year when only beneficiaries in Advantage Plans who feel they made the wrong plan selection for 2023 can change it,” said Elizabeth Gavino, founder of Lewin & Gavino and an independent broker and general agent for Medicare plans.
Common reasons to do so include discovering a preferred doctor or other provider is not in network — which means you pay more to see them — or finding out your prescriptions either are uncovered or cost more than anticipated, Gavino said.

Of Medicare’s 64.5 million beneficiaries — the majority of whom are age 65 or older — about 29.1 million were enrolled in Advantage Plans in 2022, according to the Centers for Medicare & Medicaid Services. These plans deliver Parts A and B and usually Part D prescription drug coverage, along with extras such as basic dental and vision.

However, they come with their own cost-sharing structures (i.e., deductibles and copays) and their lists of drugs covered (and their cost), which differ from plan to plan — and are likely to change from year to year.

What to know if you’re dropping your Advantage Plan

If you want to return to basic Medicare instead of having an Advantage Plan, be aware that the move often means losing drug coverage — which means you would have to enroll in a standalone Part D plan.
This matters, because if you go 63 days without the coverage, you could face a lifelong late-enrollment penalty that gets tacked on to your monthly premiums if you do eventually enroll. That charge is 1% of the national base premium ($32.74 for 2023) for each full month you go without drug coverage.
Additionally, if you drop your Advantage Plan, don’t assume that you’ll be able to get a so-called Medigap policy, which many beneficiaries pair with basic Medicare. These plans either fully or partially cover cost-sharing of some aspects of Parts A and B, including deductibles, copays and coinsurance.

However, they come with their own rules for enrolling. So depending on your state, you may need to pass medical underwriting to get approved for a Medigap policy. This makes it worth knowing first that you would be able to be approved, said Danielle Roberts, co-founder of insurance firm Boomer Benefits.
There is an exception to the medical underwriting requirement: If you are within the first year of trying out an Advantage Plan, you generally can return to a Medigap policy without facing underwriting.

You can only make one change during this window

In contrast to Medicare’s annual fall enrollment, when a variety of options were available for those who wanted to modify their coverage, this Advantage Plan-related enrollment period comes with restrictions.
For starters, you can only make one switch. This means that once you move to a different Advantage Plan or drop it for basic Medicare, the change is generally locked in for the year. 
In other words, be sure your new choice will work for the rest of 2023. If you are looking for a more suitable plan, you can use Medicare’s online plan finder.

You can ask your doctor, pharmacy for guidance

Alternatively, if you want to make sure your doctor or other key provider is in network with a plan you’re considering switching to, you can check directly with them, said certified financial planner and physician Carolyn McClanahan, founder of Life Planning Partners in Jacksonville, Florida.
“Call your doctor’s office and ask what their favorite Medicare Advantage Plan is,” said McClanahan, a member of CNBC’s Financial Advisor Council.
You also could check with your pharmacy if you want to confirm your prescriptions are covered. “They see a lot come through, so they often do know which Advantage Plans cover your drug,” McClanahan said. 
Be aware that the current three-month window also differs from fall enrollment in that you cannot switch from one standalone Part D plan to another.  If you picked a Part D plan in the fall open enrollment period based on faulty or misleading information, you can call 1-800-Medicare to see if your situation would allow you to make a change.
Also from Jan. 1 through March 31, separate from the Advantage Plan window: If you missed your initial Medicare enrollment period, you can sign up during this time frame. As of this year, coverage takes effect the month after you enroll; it previously was July 1. More

In March, 32 states and Washington, D.C., will end emergency Supplemental Nutrition Assistance Program aid that helped individuals and families cope with food insecurity during the pandemic.
The average person is projected to receive about $90 less in SNAP benefits per month.
“It’s a huge hunger cliff families are facing,” one expert said.

People shop at a 99 Cents store in Santa Monica, California, on Sept. 13, 2022.
Apu Gomes | AFP | Getty Images

Food stamp recipients may be in for a shock as temporary pandemic enhancements to the Supplemental Nutrition Assistance Program expire, leading the average person to receive about $90 less in benefits per month.
“It’s a huge hunger cliff families are facing,” said Poonam Gupta, research associate at the Urban Institute’s Income and Benefits Policy Center.

As of March, 32 states along with Washington, D.C., Guam and the Virgin Islands will end the emergency allotments that were put in place in response to the Covid-19 pandemic to help individuals and families cope with food insecurity, according to the Center on Budget and Policy Priorities.
Congress terminated SNAP’s emergency increases with the December government funding bill. The broader federal public health emergency is scheduled to end May 11.
The SNAP emergency benefits have already ended in 18 states. For beneficiaries in the remaining locations, the February issuance will be their last with extra pandemic sums.
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Once the extra aid ends, every household in the affected states will receive at least $95 per month less, according to the Center on Budget and Policy Priorities. Some households will see a loss of $250 or more in benefits based on their incomes.

“It will unfortunately leave a lot of families across the country scrambling to stretch their budgets,” Gupta added.

Cuts to result in ‘a really tight budget’ amid inflation

The change comes as inflation is still reflected in higher prices on grocery store shelves. The latest consumer price index data shows double-digit percentage year-over-year price increases for eggs, butter and margarine, frozen vegetables, lettuce, and cereal and baking products.
Once SNAP’s emergency allotments phase out, benefits will average about $6.10 per person per day, according to the Center on Budget and Policy Priorities.

“That’s a really tight budget if you’re talking about low-income families,” said Ellen Vollinger, SNAP director at the Food Research and Action Center.
Starting this month, tens of millions of people will see large amounts of benefits missing from what they otherwise would have expected, she noted.
“This is a very precipitous change,” Vollinger said. “It hasn’t given a lot of time for customers to even know this is coming.”

It will unfortunately leave a lot of families across the country scrambling to stretch their budgets.

Poonam Gupta
research associate at the Urban Institute’s Income and Benefits Policy Center

The Food Research and Action Center is one of several organizations, including the U.S. Department of Agriculture and state agencies, that are working to spread the word about the change to make sure people are not surprised by a benefit shortfall at the grocery store checkout counter, according to Vollinger.
Meanwhile, some states are considering or have enacted state funds to help replace the lost federal benefits, either on a temporary or permanent basis. Last year, New Jersey enacted a SNAP floor of $95 per household.
The burden is now on states, cities and counties to do more as the federal government has shifted the problem and costs associated with it downstream, Vollinger said.
The Food Research and Action Center has advocated for congressional legislation to address the problem. That includes one bill, the Closing the Meal Gap Act, that would increase the minimum SNAP benefit and eliminate certain eligibility limits. The proposal had the support of more than 100 House Democrats and certain Senate Democrats in 2021 and 2022.
Spending on SNAP is slated to be part of the debate as lawmakers look to pass a new farm bill.
However, a reinstatement of the pandemic-era benefit enhancements is unlikely, Gupta said. In fact, some House lawmakers have called for cutting back on SNAP spending, Vollinger noted.

Food bank braces for increased demand

Los Angeles County Regional Food Bank workers help with food distribution in Willowbrook, California, on April 29, 2021.
Frederic J. Brown | Afp | Getty Images

The Urban Institute’s research shows the policy helped keep 4.2 million people above the poverty line. It also helped reduce poverty by 10% and child poverty by 14%. The reduction in poverty was highest for Black and Latino individuals.
As the extra benefits end, people will have to consider whether they can still afford to put the same amount of food on the table, Vollinger said.
Often that may mean an adult missing a meal. At worst, it could mean a child missing a meal, she said.
Residents of California will receive their last February emergency allotment in March, along with residents of a small group of other states including Hawaii, Kansas, Massachusetts, Minnesota, Nevada and Vermont.

The Los Angeles Regional Food Bank is bracing for a surge in demand when the extra pandemic benefits drop off.
“We’re very worried about it, because this is a huge drop” in California’s SNAP benefits, known as CalFresh, said Michael Flood, the food bank’s president and CEO. The food bank serves 800,000 county residents per month with 600 partner agencies and food pantries.
The food bank has been increasing its food purchases in recent weeks to anticipate increased demand for food assistance, Flood said.
Yet it is unclear how many more individuals and families may seek help. In the aftermath of the pandemic’s onset in 2020, the food bank was serving 1 million county residents, Flood said.
“If the resources are there, we know we can scale up and provide help,” Flood said. “But it’s not without its challenges.”

What to know if you’re on SNAP

You will continue to receive your regular benefits, even after the pandemic enhancements end, the Center on Budget and Policy Priorities said.
If you have questions about your benefits, contact your state human services agency.
If you’re seeking assistance, you may try dialing 211 to connect to agencies and community organizations.
If your personal situation has changed — your income has recently declined or certain qualifying expenses have increased — you may qualify for a higher regular benefit after updating your information with your state human services agency, according to the center.

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