The Impact of Supplemental Nutrition Assistance Program Policies on Asset Holdings

Abstract

AbstractMany states have increased the asset limits used to determine eligibility in the Supplemental Nutrition Assistance Program (SNAP) in recent years. Using three panels of the Survey of Income and Program Participation, we estimate the effect of increases in the SNAP vehicle and total asset limits on vehicle and financial assets among low‐education families. We find that higher vehicle limits, together with the elimination of the total asset limit, increase the probability that a family owns a vehicle. Moreover, eliminating the total asset limit increases the value held in liquid accounts. The effect on liquid assets is greater among families in metro areas and for those at the lower end of the asset distribution. The effects on vehicle assets occur mainly among those in non‐metro areas and at the higher end of the asset distribution. Our findings imply that removing asset limits of assistance programs can lead to an increase in assets among the low‐income population.