Re-Examining the SNAP Benefit Cycle Allowing for Heterogeneity

A well-known feature of the Supplemental Nutrition Assistance Program (SNAP) is that some recipients spend a disproportionate amount of their monthly benefit early in the month. Using a finite mixture model that optimally separates households into two groups, coupled with the National Household Food Acquisition and Purchase Survey, we re-examine this spending pattern. Results show that a minority of SNAP recipients cause the benefit cycle by spending, on average, two-thirds of their monthly benefit within the first four days. A potential implication of these findings is that more frequent SNAP benefit disbursal or educational programs designed to encourage smoother spending over the month might be of benefit to some SNAP households.