MDHHS and LEO highlight how SNAP helps reduce poverty, supports Michigan jobs, improves health and economic outcomes in local communities

LANSING, Mich. – Today, the Michigan Department of Health and Human Services (MDHHS) and the Michigan Department of Labor and Economic Opportunity (LEO) raised awareness of the important role the Supplemental Nutrition Assistance Program (SNAP) plays in helping many Michigan individuals and families supplement their grocery budget so they can afford nutritious food essential to their health and well-being. SNAP, the nation’s largest food assistance program, helps bridge food insecurity gaps, reduces poverty, supports Michigan jobs, improves health and economic outcomes, and in FY24, supported 1.4 million Michigan residents. Federal cuts to SNAP will reduce the amount of money available for individuals and families, leading to increased food insecurity and poverty in Michigan.

“There is a direct connection between hunger and health, so it’s critical that we work together to ensure that our families and communities have equitable access to healthy, safe and affordable food,” said Elizabeth Hertel, director of MDHHS. “Families shouldn’t be forced to choose between buying nutritious foods or paying their bills. By supporting families’ basic needs, SNAP helps families stay healthier, which can lead to reduced healthcare costs. SNAP is an investment in the health and well-being of our residents with long-term benefits for Michigan and our economy.”

“The impact of households losing SNAP benefits will be felt around the state, which demonstrates the urgency for the passage of the state budget to ensure that we can begin to prepare for an increased number of families in need and brace for the economic impact,” said Hertel.

"Ensuring everyone has access to healthy food isn't just the right thing to do, it's an investment in our economic strength and shared future," said Department of Labor and Economic Opportunity Director Susan Corbin. "SNAP dollars go right back into the community, supporting small farms, grocers and regional supply chains. Reducing this support weakens both food security and local economies that feed Michigan families."

How SNAP works

The U.S. Department of Agriculture’s (USDA) Food and Nutrition Service (FNS) administers SNAP at the federal level with states operating the program at the local level, determining eligibility and issuing benefits to eligible households.

SNAP benefits are provided on electronic benefit transfer (EBT) cards which participants can use to purchase food at grocery and convenience stores, farmers markets and other retailers, circulating money directly into the food supply chain and other retail sectors. SNAP spending generates revenue for grocery stores, farmers and other businesses which helps pay local wages, keep shelves stocked and boosts the local economy.

SNAP helps lift families out of poverty by allowing them to spend money that would otherwise have been used for food on other goods and services, including health-related activities. A 2021 study shows that infants and children in SNAP families are more likely to see a doctor for periodic check-ups. Additionally, older adults using SNAP are more likely to take the full dosage of prescription medications because they have enough income to afford food and medicine, compared to other older adults not participating in SNAP. 

According to new economic analysis from the National Grocers Association, SNAP funding supports approximately 388,000 jobs, over $20 billion in direct wages, resulting in over $4.5 billion in state and federal tax revenue. Error rates Under current law, SNAP benefits are 100% federally funded. Beginning FY 2028, states will be required to contribute to the cost of total SNAP benefits based on a state’s SNAP error rate.

The error rate measures the accuracy of a state’s eligibility and benefit determinations for participating households. There are two types of payment errors: underpayments and overpayments. Payment errors are largely due to unintentional mistakes made by clients and staff and are not an indicator of fraud. An error can occur if a household’s expenses are incorrectly calculated, a wrong paystub is used, or if a participant forgets to provide the state with an update on their income.

Michigan’s payment error rate has seen significant improvement in the past five years – reducing the rate from 13 in FY 2023 to 9.53 in FY 2024. However, with recently passed federal legislation, states with error rates above 6% will be responsible for a percentage of SNAP costs, depending on the severity of the error rate. This legislation will harm Michigan’s economy by an estimated $415 million. Michigan’s SNAP payment error rate: 

Source: https://www.fns.usda.gov/snap/qc/per

SNAP in Michigan

In FY 2024, the average SNAP household in Michigan received $335.03 in SNAP benefits per month, which is about $173 per person per month or $5.68 per person per day. Households with very low incomes receive more SNAP benefits than households closer to the poverty line because they need more help affording nutritious food. 

• 492,225 children benefit from SNAP.
• 38,513 veterans participating in SNAP.
• 36% of SNAP households have older adults.
• 43% of SNAP households have children.
• 51% of households have a person with a disability.
• 78% of SNAP households include someone with earned income.

In Michigan, over 9,700 retailers accept SNAP. In 2023, retailers redeemed over $3.6 million in SNAP. 

To be eligible for SNAP in Michigan, applicants must be a U.S. citizen (or acceptable non-citizen status) and must live in Michigan. Eligibility is based on the financial situation of all members of a household. Everyone who lives together, purchases and prepares food together is considered a member of the same household group. In order to determine if a household is eligible for SNAP, MDHHS will review a household’s expenses, assets and income. Expenses include rent, mortgage, utility bills, child support, and dependent care expenses. For individuals with a disability or who are at least 60 years old, medical care, supplies and health insurance premiums may be included as an expense.

For more information on food assistance, please visit: Michigan.gov/mdhhs/assistance-programs/food.

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