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DATE: August 15, 2025 SUBJECT: Supplemental Nutrition Assistance Program (SNAP) – Simplified Process for Fiscal Year 2026 Standard Utility Allowance (SUA) Values TO: All SNAP State Agencies All Regions On July 4, 2025, President Donald J. Trump signed into law the One Big Beautiful Bill Act of 2025 (OBBB). Section 10104 of the OBBB prohibits State agencies from treating internet costs as an allowable shelter expense for the purposes of the excess shelter deduction in the Supplemental Nutrition Assistance Program (SNAP). The Food and Nutrition Service (FNS) previously published the final rule entitled, “SNAP: Standardization of State Heating and Cooling Standard Utility Allowances,” on November 18, 2024. The final rule required changes to how standard utility allowances (SUAs) are calculated by adding internet costs and setting criteria for the nature and frequency of SUA methodology updates. Following the enactment of the OBBB, FNS is reviewing SNAP regulations pertaining to SUAs to determine changes necessary to comply with the OBBB. Consistent with Secretary Rollins’ guiding principles, FNS strongly encourages State agencies to adopt a simplified process for calculating Fiscal Year (FY) 2026 SUA values. This simplified process will streamline and expedite approval of the FY26 SUA values, promote program integrity, and protect both SNAP participants and the taxpayer. FNS must ensure that FY26 SUA values are compliant with all statutory requirements and approved timely during this transitional period. State agencies may not use a new SUA methodology to calculate their SUA values without approval from FNS and are required to update their SUA values each year. Due to these requirements, FNS strongly urges State agencies to utilize the following approach. Simplified Process for Calculating FY26 SUA Values To determine FY26 SUA values, State agencies may adjust their FY25 SUA values by the change in the Consumer Price Index (CPI) for All Items between June 2024 and June 2025.1 FNS will readily approve SUA values calculated using this method. 1 The Consumer Price Index for All Urban Consumers (CPI-U) for All items (not seasonally adjusted) increased 2.7 percent between June 2024 and June 2025. State agencies can find more information at: https://www.bls.gov/cpi/data.htm. Food and Nutrition Service, Braddock Metro Center, 1320 Braddock Place, Alexandria, VA 22314 USDA is an equal opportunity provider, employer, and lender. through their guidance portal, except to establish historical facts. incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available Guidance documents lack the force and effect of law, unless expressly authorized by statute or