The Effect of SNAP Participation on Financial Health

• In Event: Poverty and Public Policy

Abstract

We examine the causal impact of SNAP participation on financial health by linking administrative SNAP records to individual credit reports in two California counties. Using randomized and quasi-experimental variation in interview scheduling during enrollment (Los Angeles) and recertification (San Francisco), we estimate that SNAP access reduces credit card debt, lowers delinquency rates, and improves credit scores. Effects vary across time and income groups, with higher-income households reducing debt and lower-income recipients improving repayment behavior. Our findings highlight how administrative features of safety net programs influence not just participation, but also the broader financial well-being of low-income households.

Author

• Tatiana Homonoff, New York University