The Financial Consequences of Being Denied Benefit Access

• In Event: SNAP Access and Economic Security: The Role of Policy Implementation

Abstract

Introduction
Access to social safety net programs like the Supplemental Nutrition Assistance Program (SNAP) plays a critical role in supporting low-income households and stabilizing financial well-being. However, administrative barriers, such as rigid intake procedures, can prevent eligible individuals from receiving benefits. Understanding the consequences of being denied access is important for evaluating not just program generosity and eligibility criteria, but also how policy implementation affects economic outcomes. This paper examines how such barriers influence household financial health.

Research Question
The central question of the paper is: what are the financial consequences for households that are denied access to SNAP due to administrative barriers? Specifically, we aim to determine whether being screened out of benefits affects debt accumulation, credit outcomes, and overall financial stability.Data
The paper combines administrative SNAP records with individual-level credit report data. This unique linkage allows us to track both program participation and various measures of financial well-being such as debt, delinquencies, and credit scores. The sample focuses on households in Los Angeles and San Francisco, providing granular, high-quality administrative and financial information.

Research Design and Methods
We leverage experimental and quasi-random variation in the flexibility of SNAP intake interviews, a required component of the program's eligibility determination processes for both initial applications and annual recertifications, in two related interventions shown to increase SNAP approval rates in Los Angeles County and recertification rates in San Francisco County.By comparing households that are marginally excluded due to administrative processes with similar households that successfully enroll, the study identifies the causal impact of access to benefits on financial outcomes.

Results
For both interventions, we find that reducing administrative burdens leads to significant improvements in the financial well-being of individuals seeking to gain or maintain access to SNAP. Marginally-approved households experience decreases in debt and lower rates of delinquency, along with increases in credit scores.

Conclusion
The study highlights the importance of program implementation design in determining the effectiveness of social insurance programs. Administrative barriers do not merely limit participation—they worsen financial outcomes for vulnerable households.

Author

• Tatiana Alexandra Homonoff, New York University
  Presenting Author