Utility deduction rules for food assistance benefits set to change in November

Food assistance benefit amounts could change next month for thousands of New Mexicans because of new federal requirements for utility deductions.

The “One Big Beautiful Bill” passed in July made significant cuts to the social safety net and extended expiring tax breaks. The federal tax package also changed the way energy assistance payments will be applied during Supplemental Nutrition Assistance Program, or SNAP, eligibility determinations.

That could mean lower monthly SNAP benefits for some people. On average, affected households could see a $123 decrease in their SNAP benefits, according to New Mexico Health Care Authority spokeswoman Marina Piña.

Benefits will not change before Nov. 1.

“We’re reaching out early so families have time to prepare,” the Health Care Authority’s Income Support Division Director Niki Kozlowski said in a statement.

More than 460,000 people in the state received SNAP benefits in September. The rule change means an estimated 32,519 households may need to verify their cooling or heating costs to keep getting an energy deduction.

The Health Care Authority is trying to help SNAP recipients prepare for the changes so households who are still eligible for an energy expense deduction — called the Heating and Cooling Standard Utility Allowance — keep getting that deduction. The standard deduction in New Mexico is $408, according to the U.S. Department of Agriculture.

The Low Income Energy Assistance Program, or LIHEAP, is a federal program that helps households with heating and cooling costs.

Households that are getting assistance from LIHEAP or another home energy assistance program and include someone 60 or older or someone with a disability will still automatically get the energy expense deduction.

Other people could still get the energy expense deduction. But receiving LIHEAP alone will no longer be enough to qualify.

Instead, those households have to notify the Health Care Authority if they pay their own heating or cooling bills, something that can be proven with a utility bill, lease or landlord letter. If someone else pays the utilities, that amount will be counted as income and the deduction will not apply.

“If you’re unsure how this affects you, please contact us now, before your next renewal date, so we can walk you through what you may need to provide,” Kozlowski said.

The Health Care Authority field offices can be reached at 1-800-283-4465.