Stretched social safety net could see more strain in 2024
In 2024, the social safety net faces strain with increased challenges, funding uncertainties, and growing demand, posing potential difficulties ahead.
Despite low unemployment rates and increasing wages, Americans are increasingly relying on safety net programs that face potential strain in the coming year due to surging demand and uncertain federal funding.
In 2023, various COVID-era assistance programs, including additional food benefits, housing support, and funding for childcare centres, ran out. This has left many Americans with fewer resources in the new year to confront rising prices, which remain roughly 20% above pre-pandemic levels.
Further challenges loom as Congress returns from the winter holiday break with the task of passing a budget for 2024. The current extensions for last year's funding are set to expire in two phases—on Jan. 19 and Feb. 2. The spending dispute could jeopardize certain programs, with House Republicans advocating spending cuts to social programs and Senate Democrats facing challenges in reviving pandemic-era benefits like the child tax credit or rental assistance.
This potential reduction in support coincides with a rising demand for government aid. Over the past year, nearly a million more individuals have started receiving federal assistance through the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps. Since the onset of the pandemic in early 2020, the number of food stamp recipients has increased by 2.3 million to surpass 42 million.
Simultaneously, benefits for eligible food stamp recipients have diminished, decreasing by an average of at least $95 per person per month after the expiration of a Covid-era funding boost in March.
The food stamp program, with a projected budget of $111 billion for the current year, has also seen stricter eligibility requirements. Previously, individuals between 18 and 49 without a disability had to document at least 80 hours of work per month to qualify. However, recent legislation has expanded this work requirement to individuals aged 50 and will further extend to 54 starting in October.
In the Republican-controlled House, proposals for additional changes to the program include mandates for recipients under 65 to meet work requirements and the elimination of recent-work exemptions, even for those experiencing homelessness and young adults exiting the foster care system.
Food banks report a surge in people seeking assistance due to changes in the food stamp program, coupled with a 25% increase in food prices compared to pre-pandemic levels.
Another program facing pressure is the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). The National WIC Association warns that without a budget increase in 2024 above the $6 billion funding level, state programs may have to implement waitlists for new enrollees or reduce benefits for existing recipients.
Rising housing costs pose additional challenges for low-income households, particularly those relying on renter assistance programs. As pandemic-era assistance measures, such as eviction moratoriums and federal rental aid, expire, a growing number of Americans struggle to afford housing.
Federal programs designed to assist lower-income households with rent, like the Section 8 voucher program, are grappling with rising housing costs. Proposals in Congress could potentially decrease the number of people receiving housing vouchers, exacerbating the challenges faced by households seeking federal rental assistance.
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