This article examines whether expanding Supplemental Nutrition Assistance Program (SNAP) eligibility reduces material hardships of low-income households. During the Great Recession, many states expanded the income threshold of eligibility for SNAP. I show that expansions in eligibility increased the SNAP participation rate by 3-5 percentage points. I also find that the expansion leads to a modest decrease in nonfood hardships, such as rent and utility delinquencies. However, the increase in SNAP enrollment does not lead to greater food spending or a reduction in food insecurity except for households with children. The official food insecurity measure in the United States is based on the answers to a series of questions in a supplement to the Current Population Survey (CPS). See the data section for details on the food insecurity measure. 2 The strong growth in enrollment over this period is a result of a number of factors such as high unemployment rate, expanded policy, and changing demographics (Ziliak 2015; Ganong and Liebman 2013).
464The aim of this article is to examine the effect of SNAP on the well-being of low-income individuals and families. I exploit cross-state and over-time variation in SNAP income eligibilitysuch variation was quite limited until recently. Since 1999 states have been given discretion to operate the program with considerable flexibility through a policy called broad-based categorical eligibility (BBCE). Accordingly, many states have expanded eligibility to include households with income and resources above the existing federal limits for SNAP. Exploiting this expansion of SNAP eligibility, I identify the impact of SNAP eligibility on material hardships. I use the simulated eligibility instrument of Cutler and Gruber (1996) to address the endogeneity in household eligibility for SNAP. Since this instrument uses variation in legislative changes in SNAP eligibility by year and state, it addresses biases due to unobserved household characteristics affecting both SNAP eligibility and the experience of material hardships.Using data from the Survey of Income and Program Participation (SIPP) and the Current Population Survey Food Security Supplement (CPS-FSS) from 2003 to 2011, I find that a change in eligibility criteria from the federal rules to the most extensive BBCE rules increased the SNAP participation rate by 3-5 percentage points during this time period. One might expect that increases in SNAP participation would reduce food insecurity. However, I find that this is not the case except for households with children. I find evidence that relaxed eligibility standards for SNAP ease the burden of nonfood hardships, such as trouble paying rent or utilities-a change from the federal rules to the most extensive BBCE rules leads to a 2.4 and a 4.4 percentage point decrease in the incidence of falling behind on paying rent and utilities, respectively. The results are fairly consistent across different data sources and are robust to sample restrictions and a variety of specifications, includin...