The Supplemental Nutrition Assistance Program (SNAP), often referred to as food stamps, aims to assist low-income individuals and families by providing funds to purchase essential groceries. Eligibility for SNAP is determined by strict criteria, primarily based on income and resources, set by the United States Department of Agriculture (USDA). One aspect that often raises questions is whether owning a vehicle counts as property and impacts SNAP benefits.
While owning a vehicle does not automatically disqualify someone from receiving SNAP, it can influence eligibility based on specific factors. The USDA has guidelines to assess vehicles as resources, but states also have the authority to establish their own rules regarding vehicle evaluations.
Here in this guide, we will break down how vehicle ownership can affect SNAP eligibility, including the key factors considered and exceptions that might apply.
Does the vehicle count as a resource for SNAP?
The SNAP program, managed by the USDA, is designed to help those in need by providing financial support for groceries. To ensure that assistance reaches those who need it most, the USDA evaluates both income and resources when determining eligibility.
Vehicle Ownership and SNAP Eligibility
Owning a car doesn’t automatically make someone ineligible for SNAP benefits. However, the vehicle’s impact on eligibility depends on its value and use.
Countable Resources and Vehicle Value
According to USDA guidelines, households are allowed up to $2,750 in countable resources. If a household member is 60 years or older or has a disability, the limit increases to $4,250. Countable resources generally include cash and bank accounts but exclude primary residences, most retirement plans, and certain benefits like Supplemental Security Income (SSI).
When Does a Vehicle Count as a Resource?
Vehicles may count as part of the applicant’s resources if their fair market value exceeds $4,650. However, each state can establish its own rules for evaluating how vehicles affect SNAP eligibility. A vehicle might not be counted as a resource if it meets any of the following conditions:
- Used to generate income (e.g., taxis, trucks, delivery vehicles).
- Produces annual income equal to its market value.
- Necessary for long-distance travel for work.
- Serves as a family home.
- Transports a household member with a disability.
- Transports essential resources like fuel or water.
- Has a resale value of less than $1,500.
If a vehicle is not excluded, the greater of its fair market value above $4,650 or its equity value is considered part of the applicant’s resources.
What If You Have a Car Loan?
Owning a vehicle with an active loan doesn’t automatically disqualify you from SNAP. If the vehicle doesn’t meet the state’s criteria for exclusion, its value may count as a resource. In these instances, the state SNAP agency will decide whether the applicant remains eligible.
Owning a vehicle can impact SNAP eligibility, but many factors influence this determination. The type of vehicle, its value, purpose, and state-specific regulations all play a role. Understanding these guidelines can help applicants make informed decisions about their eligibility and resource management.
