State BBCE Decisions Post-OBBBA: Where Each State Sets Its Limit

What BBCE actually is

BBCE is a federal option created in the 1996 welfare reform law and expanded under subsequent farm bills. The mechanism works through TANF: any household that receives a "non-cash TANF benefit" (typically an informational brochure mailed alongside SNAP application materials) is "categorically eligible" for SNAP without having to meet the federal SNAP gross-income or asset tests separately.

States that adopt BBCE can:

• Set the gross-income threshold up to 200% FPL (federal default is 130% FPL)
• Eliminate the asset test entirely OR raise it above the federal default ($3,000, or $4,500 for households with an elderly or disabled member)
• Streamline application processing for households that would qualify under both rules

Households still have to meet the federal net-income test (income after deductions must be at or below 100% FPL) and pass other categorical rules (work requirements, immigration status). BBCE just removes the gross-income and asset barriers.

Why BBCE matters

For a single person, the federal default 130% FPL gross-income limit is about $1,696/month in FY2026. The same person in a 200% BBCE state has a $2,610/month gross-income limit — nearly $900/month more. The difference is even larger for families of 4 ($3,483 federal vs. $5,360 in 200% BBCE states).

For working households just above the federal default — typical earned-income amounts in retail, food service, and gig work — BBCE is the difference between qualifying and not.

Where each state sets its BBCE gross-income limit

Most states, plus the District of Columbia, Guam, and the US Virgin Islands, operate BBCE. States set the gross-income limit anywhere from the federal 130% default up to 200% FPL. These groupings match the data behind this site's per-state pages and calculators; because states revisit their settings, confirm the current figure with your state SNAP agency.

200% FPL gross-income limit (most generous)

Alaska, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Kentucky, Maryland, Massachusetts, Michigan, Montana, Nevada, New York, North Carolina, North Dakota, Oregon, Pennsylvania, Virginia, Washington, West Virginia, Wisconsin — plus the District of Columbia, Guam, and the US Virgin Islands.

185% FPL gross-income limit

Arizona, Maine, New Hampshire, New Jersey, Rhode Island, Vermont.

165% FPL gross-income limit

Illinois, Minnesota, Nebraska, New Mexico, Texas.

160% FPL gross-income limit

Iowa.

130% FPL (federal default gross limit)

Alabama, Arkansas, Georgia, Idaho, Indiana, Kansas, Louisiana, Mississippi, Missouri, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Utah, Wyoming. Most of these still waive the federal asset test through BBCE; the states that keep the federal asset test ($3,000 / $4,500) are Arkansas, Kansas, Mississippi, Missouri, South Dakota, Tennessee, Utah, and Wyoming, and a few states keep a higher asset limit instead. Confirm with your state.

What OBBBA did and did not do to BBCE

OBBBA did not directly modify BBCE. The original House version contained language that would have required all BBCE TANF benefits to have a minimum cash value of $50 per household per year (which would have made BBCE prohibitively expensive for most states), but that provision was stripped in conference and is not in the enacted law.

However, OBBBA's overall political signal — that the federal government wants tighter SNAP eligibility — has pushed several Republican-led states to consider reducing or eliminating their BBCE thresholds:

• States that have lowered BBCE since OBBBA: None had taken effect as of mid-2026.
• Bills introduced: Several states have introduced legislation to lower (and a few to raise) their BBCE gross-income threshold. Because these settings can change between sessions, confirm your state's current threshold with its SNAP agency rather than relying on a proposal.

How to know what applies to you

Your state's BBCE threshold determines whether your household qualifies under the gross-income test. The by-state page for your state lists the current threshold and the most recent change date. You can also call your state SNAP office — they're required to tell you the applicable threshold.

If you're in a state where BBCE is being debated, the relevant question for your household is: does the proposed change move the threshold below your current gross income? If yes, you should plan for the possibility of losing eligibility and apply for adjacent programs (Medicaid, WIC, Lifeline) preemptively.

BBCE and the net-income test

BBCE addresses only the gross-income and asset tests. Your household still has to pass the net-income test: income after allowable deductions must be at or below 100% FPL. The deductions include:

• A 20% earned-income deduction (work-related expenses)
• A standard deduction ($209/month for households of 1-3, scaling up)
• Dependent care costs
• Medical expenses over $35/month for elderly or disabled household members
• Court-ordered child support paid
• Excess shelter costs (rent/mortgage/utilities exceeding 50% of net income after the above)

If your gross income passes the BBCE threshold but your net income still exceeds 100% FPL, you don't qualify. The on-site quick calculator handles the gross-income test only — for a full net-income calculation, your state SNAP office is the best place to run the numbers.