LANSING, MI — A Democratic Senator is proposing the state do away with a means tests that disqualifies individuals with as much as $15,000 in assets from applying for food programs.
SB 725 would amend the Social Welfare Act so that Michigan stops using asset tests to determine eligibility for food assistance.
Under current law, many Supplemental Nutrition Assistance Program (SNAP) recipients face requirements and restrictions, such as only being able to buy certain foods. Beneficiaries are also subject to a $15,000 asset test requiring that they must not have more than that amount in any account to receive SNAP benefits.
The bill’s sponsor, Sen. Jeff Irwin, D-Ann Arbor, said Michigan residents who receive assistance on food shouldn’t have to choose between food or poverty.
“Before Thanksgiving, we’re probably thinking about having to choose between having one more slice of turkey or another piece of pie,” Irwin said. “Sadly, some of our neighbors are thinking about either putting food on their table or saving money to buy a working car, fix their home, or pay for medication.”
Irwin, along with the bill’s co-sponsors, Sean McCann, D-Kalamazoo, Erika Geiss, D-Taylor, Stephanie Chang, D-Detroit and Adam Hollier, D-Detroit, believe Michiganders shouldn’t be punished for having assets like a nice car or money saved from a previous job.
“About 10 years ago Michigan adopted a very cruel policy of spending Michigan taxpayer’s money to hire employees to see if anyone applying for food stamps has any assets,” Irwin said. “When they have assets, they get denied for food stamps.”
Asset limits for food assistance, cash assistance and State Emergency Relief have been set at $15,000 since Gov. Gretchen Whitmer and former Department of Health and Human Services director Robert Gordon announced changes in Jan. 2019.
Since then, a family can have up to $15,000 in assets, such as money in a savings account and still be eligible for food assistance.
Under Gov. Rick Snyder, MDHHS set its asset limit for food program recipients at $5,000.
“I’d like to continue on that progress by just eliminating the asset testing entirely and make sure that people who are eligible for federal food assistance receive it,” Irwin said. “It just makes no sense to turn money away from needy people because they may have recently become needy.”
Irwin said it’s unnecessary for the state to use taxpayer money to deny residents federal benefits they may need, adding that he wants to do away with the qualifier completely and put the department policy into law.
The bill would also reduce the burden of processing cases for MDHHS employees, the lawmaker said.
In order to qualify for programs like food, cash, or emergency assistance, individuals will still need to establish that they have limited incomes. The change in asset test policy would not impact income eligibility requirements.
Asset limits for these programs vary widely among states, but eight states have no asset limit, according to the state department.
The bill was referred to the Senate Families, Seniors and Veterans Committee for consideration.
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