Some states allow beneficiaries to deduct a standard utility charge from their income if they qualify for a federal heating aid program called the Low Income Home Energy Assistance Program (LIHEAP), even if they only receive a few dollars per year in heating aid. The arrangement results in about 850,000 households getting a utility deduction that is much larger than their actual utility bill. Because the deduction makes these families disposable income appear to be lower than it actually is, they get more food stamp money each month. The farm bill that passed the House on Wednesday saves $9 billion by closing that loophole. The savings from closing the heating aid loophole could have been returned to the food stamp program. Instead, Republicans succeeded in prodding Dems to accept $9 billion in new cuts on top of the $11 billion in expiring stimulus funds. That extra $9 billion in cuts means that close to a million households will see their benefits slashed by about $90 a month—enough to pay for a weeks worth of cheap groceries for a family of four.
Posted on: Wed, 29 Jan 2014 18:10:23 +0000
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