Losing a car can be devastating, impacting everything from your job to your ability to get groceries. If you’re facing car repossession, you might be wondering how this financial setback affects your access to vital assistance programs like food stamps, officially known as the Supplemental Nutrition Assistance Program (SNAP). In Texas, the rules around SNAP eligibility and vehicle ownership have been a complex issue for many low-income families. A recent change in Texas law aims to ease some of these restrictions, but understanding how car repossession and vehicle value play into SNAP benefits is crucial.
Understanding the Texas SNAP Vehicle Asset Test
SNAP is a federal program designed to combat food insecurity, but each state has some flexibility in setting its eligibility criteria. Texas is one of the few states that has historically considered the value of your vehicles when determining SNAP eligibility. This is known as a “vehicle asset test.” Previously, these rules were quite strict:
- If your primary vehicle was valued at $15,000 or more, you could be disqualified.
- If you owned additional vehicles valued at $4,650 or more, this could also impact your eligibility.
These limits, set in 2001, hadn’t kept pace with rising car prices. For many Texans, especially those in rural areas where reliable transportation is essential for work and daily life, owning a vehicle exceeding these values was a necessity, not a luxury. This meant that families who needed food assistance were being denied SNAP benefits simply because they owned a car to get to work or transport their children.
Recognizing the increasing burden of these outdated limits, Texas lawmakers passed House Bill 1287. This new law, signed by Governor Greg Abbott, brings some relief by increasing the vehicle asset limits for SNAP eligibility. Starting in September, the new limits are:
- Primary vehicle limit increased to $22,500.
- Additional vehicle limit increased to $8,700.
This change is a welcome step for many Texas families. Feeding Texas, a food bank network, estimates that over 54,000 SNAP applicants were denied in 2022 due to vehicle values. The updated limits are expected to help some of these families gain access to food assistance.
How a Car Repo Could Impact Your SNAP Eligibility (in Texas)
Now, let’s connect this back to the question of car repossession. If your car is repossessed, it means you no longer own that vehicle. Logically, a repossessed car no longer counts towards your vehicle assets for SNAP eligibility in Texas.
In fact, car repossession could potentially improve your chances of qualifying for SNAP under the vehicle asset test. Here’s why:
- Reduced Asset Value: After a car repo, the value of your countable vehicle assets decreases, potentially falling below the Texas SNAP limits.
- Meeting the New Limits: If your remaining vehicle (if any) is below the new, higher limits of $22,500 (primary) and $8,700 (additional), you might now qualify, even if you didn’t before.
However, it’s important to remember that the vehicle asset test is only one part of SNAP eligibility. Other factors, such as household income and size, also play a significant role. Even if a car repo helps you meet the vehicle asset criteria, you still need to meet the income requirements to qualify for SNAP benefits.
/https://static.texastribune.org/media/files/91ea0e8e2ca497404a34679ee4b5f578/0616%20SNAP%20Mercedes%20Bristol%20JT%20TT%2012.jpg)Stories from Texas Families: The Real Impact of Vehicle Asset Limits
To understand the real-world impact of these vehicle asset rules, consider the stories of Texans who have been directly affected:
Mercedes Bristol: As the head of Texas Grandparents Raising Grandchildren (TXGRG), Mercedes Bristol has seen firsthand how the old vehicle asset test prevented grandparents raising their grandchildren from getting needed food assistance. When she took in her five grandchildren, she was denied assistance because her car’s value was over the limit. Despite needing beds, clothes, and car seats for the children, the vehicle asset rule was a barrier. While the new law is a step forward, even with increased limits, some grandparents like Gloria Adams may still not qualify due to vehicle values.
Jennifer Washington: A mother of three from Hutto, Jennifer Washington was previously denied SNAP benefits because the combined value of her family’s two vehicles exceeded the old limits. She hopes the new limits will allow her family to qualify. For Jennifer, SNAP benefits aren’t just about food; they represent “significant relief” and the ability to cover other essential bills. She points out the Catch-22 of the vehicle asset test: families may need their vehicles for work and commuting, even using them as collateral for loans, yet owning these vehicles can disqualify them from food assistance.
Nikki Luna: Living in rural Troy, Nikki Luna was denied SNAP because her paid-off Kia Sorento, essential for comfortably fitting her family, was deemed too valuable. For Nikki, grocery shopping had become a stressful experience due to rising food prices. Qualifying for SNAP would be a tremendous help, especially in a rural area with limited access to food banks.
Gloria Adams: Gloria Adams, who cares for her five grandchildren in San Antonio, also works with TXGRG. Despite the new law, her family may still not qualify for SNAP because their primary car’s value remains too high. Gloria emphasizes that SNAP benefits would mean not having to live paycheck to paycheck and being able to save even a little money. She is grateful for the progress but frustrated that many grandparents in her situation will still be excluded.
/https://static.texastribune.org/media/files/69798c6ba03564951386ef4e2049c52b/0614%20SNAP%20Gloria%20Adams%20JT%20TT%2038.jpg)Why Texas’s Vehicle Asset Test is Controversial
Many advocates argue that vehicle asset tests for SNAP are fundamentally flawed and counterproductive. Celia Cole, CEO of Feeding Texas, believes that focusing on vehicle values distracts from the core issue: “What does this person need to feed their families?” She points out that most states have already eliminated vehicle asset tests, recognizing them as inefficient and not aligned with the goal of reducing food insecurity.
Critics argue that:
- Vehicles are essential for work and survival: In many parts of Texas, especially rural areas, cars are not luxuries but necessities for employment, childcare, and accessing essential services. Denying food assistance based on car ownership creates a barrier to economic stability.
- Outdated limits don’t reflect reality: The previous vehicle value limits were set in 2001 and didn’t account for decades of inflation and rising car prices. Even the new limits may still be insufficient in some areas with high vehicle costs.
- The test is administratively burdensome: Assessing vehicle values adds complexity to the SNAP application process, potentially creating errors and delays.
The Bigger Picture: Grandparents and “Invisible Foster Care”
The issue of vehicle asset tests and SNAP eligibility is particularly critical for grandparents raising grandchildren. In Texas, a significant number of children are being raised by grandparents, often without the financial support provided to licensed foster parents. Mercedes Bristol refers to this as the “invisible foster care” system.
/https://static.texastribune.org/media/files/f3cc438728ad8d9de31ee75493b6f05d/0614%20SNAP%20Gloria%20Adams%20JT%20TT%2020.jpg)Grandparents often take on this responsibility in retirement, with fixed incomes and existing assets like cars. The vehicle asset test can disproportionately impact these families, preventing them from accessing crucial food assistance for the children in their care. While HB 1287 is a positive change, advocates like Bristol and Adams emphasize that more systemic support is needed for grandparents and other vulnerable families struggling with food insecurity in Texas.
In conclusion, while a car repo itself won’t disqualify you from SNAP and may even improve your eligibility under the vehicle asset test in Texas, the broader issue of vehicle asset limits remains a complex challenge. The recent increase in these limits is a step in the right direction, potentially helping thousands of Texas families access food stamps. However, for many, especially grandparents and those in high-cost areas, further reforms may be needed to ensure that everyone has access to the food assistance they need, regardless of their vehicle situation.
