Examining the role of the excess shelter deduction in the Supplemental Nutrition Assistance Program benefit formula

The Supplemental Nutrition Assistance Program's (SNAP) excess shelter deduction acknowledges that high shelter expenses can compete with food spending. We examined whether the deduction facilitates benefit targeting. We estimated that 48%–67% of SNAP households received the deduction, with the likelihood varying by region, household composition, and housing tenure. Households living in the Northeast or renting unsubsidized housing were especially likely to face limits on the deduction amount. According to our results, the excess shelter deduction likely helps households obtain higher SNAP benefit allotments albeit to a limited extent.