A Supplemental Nutrition Assistance Program (SNAP) cash-out state is a state that
increased the amount of the State supplementary payment (SSP) to include the value
of the SNAP allotment. Because of this increase, Supplemental Security Income (SSI)
or SSP recipients residing in a cash-out state generally are ineligible to receive
NOTE: Currently, the only cash-out state is California.
On June 30, 2016, the United States District Court for the Northern District of California
held in Riojas v. USDA that a recipient whose SSI benefits are suspended (or interrupted) is not actually
receiving SSI benefits and, therefore, that recipient, if a resident of a cash-out
state, is not ineligible for SNAP benefits based on supposed receipt of SSI benefits.
NOTE: The court based its decision on the fact of non-receipt of SSI benefits and does
not depend on the reason for such non-receipt.