The proposed rule, published Nov. 10, 2026, would narrow "categorical eligibility" — a pathway that lets states enroll households in SNAP without a separate income or resource review if all members receive benefits from a state program funded by the Temporary Assistance for Needy Families block grant. Under current practice, states can confer that eligibility through non-cash TANF services as well as cash aid, an approach known as broad-based categorical eligibility, or BBCE.

As of December 2025, 46 states use BBCE, according to the proposal. Thirty-seven of them set gross income limits above the federal SNAP threshold of 130% of the Federal Poverty Guidelines, and 41 have eliminated resource limits entirely.

The USDA argues that flexibility has stretched far beyond what Congress intended when it sought to reduce administrative paperwork. The department cites cases of households with substantial assets receiving benefits in states without resource limits, including a widely referenced case of a millionaire in Minnesota who obtained food stamps through a BBCE loophole.

"It is irresponsible to Congress and the taxpayer to support regulations that permit this practice," the proposed rule states.

The department also points to a 2012 Government Accountability Office report that found payment errors in BBCE households at a rate of 17.2%, compared with 6.7% for other SNAP households. USDA estimates that 11.5% of participating SNAP households — about 2.5 million households containing 5.4 million people — currently hold resources above the SNAP limit.

The proposal would ripple into other nutrition programs. About 1.78 million children would lose automatic eligibility for free school meals, though roughly 97% would still qualify through a separate income-based process and an estimated 28,000 children would be required to pay full price. Approximately 42,000 children could lose Summer Electronic Benefit Transfer benefits beginning in summer 2029, and about 5,500 women, infants and children currently eligible through BBCE would lose WIC eligibility entirely.

On the fiscal side, USDA projects the rule would reduce federal SNAP spending by about $44.65 billion over five years, from fiscal 2027 through 2031. States would see a net reduction of roughly $5.24 billion in SNAP spending, while administrative costs would rise by about $928.5 million as states adjust eligibility systems. The department also estimates that more than 840,000 one- and two-person households now receive the minimum $23 monthly benefit solely because of BBCE — nearly $214 million paid to households exceeding SNAP's statutory income or resource limits.

This is the federal government's second attempt at such a change. The first Trump administration proposed a similar overhaul in July 2019, which the Biden administration withdrew in June 2021. The current version ties categorical eligibility specifically to the federal definition of TANF "assistance" — cash, payments, vouchers and benefits meant to meet a family's ongoing basic needs — rather than the broader array of non-cash services states have used. USDA says that approach is simpler for states to implement than the 2019 framework.

The public comment period runs through Dec. 10, 2026. Comments can be submitted at regulations.gov under docket number FNA-2026-0661, by email to sm.fn.snappdbrules@usda.gov, or by mail to the SNAP Program Development Division, Food and Nutrition Administration, 5601 Sunnyside Ave., Beltsville, MD 20705.