Food Assistance Benefits Boosted by New 'Low-Cost' Standard, Shelter Deduction Cap Eliminated

The Closing the Meal Gap Act of 2025 is a major overhaul of how federal food assistance benefits are calculated and delivered. Essentially, it aims to increase the value of benefits for recipients and remove several restrictions that have historically limited access and amount.

The core change is swapping out the current "thrifty food plan" standard—which sets the baseline cost of a minimal diet—for a more generous "low-cost food plan." This new standard is based on the cost of feeding a specific four-person family model, and the Secretary of Agriculture has the authority to define the specific food items in this plan and must reevaluate it every five years, starting in 2029. The immediate effect of this shift (Section 2) is that the baseline for benefits should increase for everyone receiving assistance, moving from a 'thrifty' (read: bare minimum) calculation to one based on a slightly more realistic 'low-cost' budget.

No More Time Limits: The End of Section 6(o)

For many people relying on this assistance, one of the most significant changes is the complete elimination of Section 6(o) of the Food and Nutrition Act (Section 4). This is the provision that imposed time limits on receiving benefits for certain individuals. By striking this entire section and cleaning up all related references across federal law, the bill removes a major hurdle and source of anxiety for many users. For an unemployed person trying to get back on their feet, this means the safety net won't suddenly disappear after a few months, regardless of their work status, providing continuous support as long as they meet the program’s other eligibility requirements.

The Shelter Cap Is Gone—But Watch the Medical Deduction

The bill also makes two major changes to how income deductions are calculated, which directly impacts how much a household receives. First, it completely removes the cap on deductions for excess shelter costs (Section 3). Previously, there was a limit on how much of your rent or mortgage you could deduct when calculating your income for benefits. For people living in high-cost areas—think major city centers or expensive rural housing markets—this change is huge. Removing the cap means households with high housing burdens will see more of their income shielded, likely leading to higher benefit allotments.

On the medical side, the bill introduces a standardized medical expense deduction for elderly or disabled households (Section 3). Instead of tracking every receipt, they can now opt for a standard deduction, starting at $140 for Fiscal Year 2023, which will be adjusted yearly based on the Consumer Price Index for Medical Care. This is a simplification win for many. However, there’s a catch: the bill explicitly states that costs related to special diets cannot be included in either the standard deduction or the actual medical expense deduction. For someone with a chronic condition requiring expensive, specialized food, this exclusion could create a new financial burden, forcing them to absorb those costs directly.

What It Means for Your Wallet and the System

Overall, this legislation is designed to increase the financial help provided to eligible families by raising the benefit floor and allowing greater income protection for high housing costs. While the removal of the time limit simplifies access, the shift in benefit calculation relies heavily on the Secretary’s definition of the new "low-cost food plan" market basket. The devil, as always, will be in the administrative details of that definition. The trade-off here is clear: increased benefits and reduced restrictions for recipients will inevitably lead to higher overall program expenditures, which is the cost borne by taxpayers to close that meal gap.