Social Security COLAs Won't Kill Your SNAP Benefits: New Rule Kicks In October 2027

The “COLAs Don’t Count Act of 2026” is a targeted piece of legislation aimed at fixing a frustrating problem in the social safety net: the benefits cliff. Essentially, this bill changes how the government calculates income for the Supplemental Nutrition Assistance Program (SNAP), better known as food stamps. The core change is simple: mandated Cost-of-Living Adjustments (COLAs) from Social Security, Railroad Retirement, or VA benefits will no longer count as income when determining your SNAP eligibility or benefit amount. This exclusion is set to start on October 1, 2027, and it also adds supplementary payments under Section 1616 of the Social Security Act to the list of excluded income, making the rules clearer for those receiving federal aid.

The Benefits Cliff Problem Solved

For years, a small COLA increase—say, an extra $20 a month in Social Security—could unintentionally trigger a major problem for low-income seniors, veterans, or disabled individuals relying on SNAP. That tiny income bump might push them over the eligibility limit, causing them to lose hundreds of dollars in food assistance. This bill directly addresses that by excluding the COLA increase from SNAP calculations. The exclusion is temporary, lasting through September 30th of the fiscal year, and it’s only available if you were already certified for SNAP the month before the COLA took effect (Section 2). This means the COLA actually translates into increased disposable income, rather than just replacing lost food money.

Who This Helps (And Why It Matters)

This change is a huge win for households where a senior citizen or veteran relies on both federal benefits and food assistance to make ends meet. Imagine a retiree who gets a COLA increase of $30 starting in January. Under the old rules, that $30 might have caused their SNAP benefits to drop by $50 or more—a net loss. Under the “COLAs Don’t Count” rule, that $30 increase is ignored by SNAP, ensuring the recipient keeps their full food assistance. This prevents the administrative absurdity where the government gives with one hand (the COLA) and immediately takes away with the other (reduced SNAP). The goal is to ensure that a modest, necessary increase in benefits for inflation doesn’t inadvertently lead to food insecurity.

Implementation and Timing

While this is a straightforward fix, it won’t happen immediately. The effective date for all these amendments is October 1, 2027 (Section 3). State agencies that administer SNAP will need to update their eligibility systems and training manuals to correctly process this new income exclusion. While this adds a minor administrative burden, it’s necessary to prevent the immediate reduction or loss of food assistance for vulnerable populations. By protecting SNAP recipients from the benefits cliff, this act allows federal cost-of-living adjustments to actually serve their intended purpose: helping recipients keep pace with inflation without sacrificing essential food aid.