HR6986-119

What This Bill Does

The COLAs Dont Count Act of 2026 amends SNAP eligibility income rules in the Food and Nutrition Act. For households already certified for SNAP or receiving an allotment in the month before a cost-of-living adjustment becomes effective, the bill excludes the COLA-related income increase through September 30 of that fiscal year. Covered COLAs include increases under Social Security title II, Supplemental Security Income under title XVI, Railroad Retirement Act annuities, and veterans compensation or pension adjustments under title 38 section 5312. The bill also adds supplementary payments under Social Security Act section 1616 to the list of excluded income. The Act takes effect October 1, 2027.

Who Benefits and How

SNAP households with Social Security, SSI, Railroad Retirement, or veterans benefits benefit because a new annual COLA would not immediately reduce food assistance or disrupt eligibility before the end of that fiscal year. Older adults, people with disabilities, veterans, railroad retirees, and low-income families benefit from more predictable benefit coordination when federal retirement or disability benefits rise for inflation. State SNAP agencies benefit from clearer statutory treatment of COLAs and supplementary payments.

Who Bears the Burden and How

State SNAP eligibility workers must update income-counting rules, train staff, revise notices, and ensure certification systems exclude covered COLA increases only for the eligible period through September 30. USDA Food and Nutrition Service staff must issue implementation guidance before the October 1, 2027 effective date. Federal taxpayers may bear higher SNAP costs because some households keep larger allotments or eligibility for longer after receiving a COLA.

Key Provisions

• Amends SNAP income rules to exclude covered cost-of-living increases through September 30 of the fiscal year when the increase takes effect.
• Covers COLAs from Social Security, SSI, Railroad Retirement, and veterans benefit programs.
• Requires the exclusion only for households certified for SNAP or receiving an allotment before the COLA month.
• Excludes Social Security Act section 1616 supplementary payments from SNAP income.
• Provides an October 1, 2027 effective date.