By Ben Molin, developer of SNAP Screener • February 2025

Analyzing the Net Income Limit

SNAP Screener helps households and advocates better understand SNAP eligibility rules and benefits calculations. This case study shows how a Hawaiʻi advocate used SNAP Screener to analyze the impact of the state's Net Income Test and helped inform a policy change expected to provide an estimated additional $40-45 million in annual benefits.

Background: Understanding the Net Income Test

Under the Federal program rules, financial eligibility for SNAP includes a Gross Income, Net Income, and Asset Test. Through Broad-Based Categorical Eligibility (BBCE), 44 states have raised or removed income and asset limits for SNAP. In some states, this results in increasing the Gross Income Test limit and removing the Asset Test, but leaving the Net Income Test unchanged.

A household's net income, in addition to being used for the 100% FPL (Federal Poverty Level) Net Income Test, is also used to determine benefit amounts. To determine the final benefit amount, SNAP subtracts 30% of net income from the maximum benefit amount.

In the 48 contiguous states, once a household's income approaches 100% net income, the calculated benefit amount drops to about 20% of the maximum benefit amount for a household of 4.

From my research that powers the SNAP calculator on snapscreener.com, only 6 states that use BBCE apply the Net Income Test. In these states, this test then creates a benefits cliff. For a household of four, as their net income reaches $2,600, benefits would fall from $195 per month to $0 per month – just by having $1 more in net income.

In the other BBCE states, while there is no strict Net Income Test at 100% FPL, there becomes an effective Net Income Test as net income can be too high to receive a benefit. Around 130% FPL is when benefit levels become calculated negative, and then the household is determined ineligible due to not receiving a positive benefit amount. In these states, benefit cliffs are largely avoided as benefits phase out with no drop (households could still be calculated eligible to receive $1).

Hawaiʻi’s Net Income Test: A Steeper Benefits Cliff

While the 48 contiguous states follow similar benefit patterns, Hawaiʻi's SNAP calculations differ significantly due to its higher food costs and correspondingly higher maximum benefit levels. As a result, households at the 100% FPL net income limit in Hawaiʻi qualify for substantially higher benefits compared to other states. A household at this limit can still receive about 50% of the maximum benefit amount, which itself is 77% higher than in the 48 contiguous states.

Up until February 3rd, 2025, Hawaiʻi had a Net Income Test. This means that for a household of four that was previously $1 over the net income limit, instead of getting $826 per month (or almost $10,000 per year) in food assistance, they would have been determined ineligible for SNAP. This cliff is over four times steeper than in other states.

Hawaiʻi Policy Change

Research by Dylan Moore (UHERO) and Nate Hix (Hawaiʻi Public Health Institute) identified the significant impact of Hawaiʻi’s Net Income Test on SNAP households, highlighting how the benefit cliff created sudden losses of thousands of dollars in food assistance for families just over the income limit. Their analysis estimated that eliminating this policy could provide $40–45 million in additional annual benefits to Hawaiʻi households. Read their full analysis here.

During his research, Nate Hix used SNAP Screener to model household income scenarios and assess the impact of the Net Income Test. Additionally, he was able to use SNAP Screener's 50-state rules database to see which other states had a similar set of rules, keeping the Net Income Test but with a 200% Gross Income limit (the maximum allowable).

Nate Hix explained how SNAP Screener was helpful in the research process:

"SNAP Screener proved to be an invaluable resource in assessing opportunities for our state by offering a clear reference to policies and practices in other states. Given that SNAP rules, regulations, benefits, and administrative options can often be complex and difficult to navigate, the easily accessible data provided by SNAP Screener brought much-needed transparency and clarity to the issue.

The Net Income test lacks clear documentation, making it challenging to determine its feasibility without extensive research and persistence. Compounding the issue, there was a lot of misinformation from various sources that complicated the process. Having SNAP Screener as a reliable and accurate resource was invaluable in cutting through the confusion and ensuring a clear understanding of the situation.

Once we identified the possibility of eliminating the Net Income cliff, SNAP Screener became an essential tool in estimating benefit amounts for those who would become newly eligible. By providing clear calculations, it helped dispel uncertainty about who would qualify and how much assistance they would receive if the net income test were removed. I ran dozens of scenarios through SNAP Screener to gain a clear understanding of the situation.

Once we had a clear understanding of the impact of removing the net income test, we presented our findings to Governor Green's office. Fortunately, he was immediately supportive and took swift action to ensure this policy change was implemented quickly and effectively."

This policy change is expected to have a major impact on working families across Hawaiʻi. As Governor Josh Green, M.D., stated: "This is going to provide a huge relief for our working-class families who are struggling with Hawaiʻi's highest-in-the-nation cost of living." (source).

Policy decisions are complex, but accessible, data-driven tools help clarify eligibility rules and their real-world impact. If you're researching SNAP policies in your state, explore SNAP Screener and our 50-state dataset to support data-driven policy solutions.