Billions in Government Benefits Go Unclaimed – How to Claim Yours

Every single year, billions of dollars in government aid go unclaimed. These are real programs that could help people pay for groceries, medical care, housing, and more—but many families never receive them. Why? Because the system isn’t designed to be easy. Applications are confusing, eligibility rules are complicated, and too many people assume they don’t qualify.

At Low Income Relief, we believe you deserve to know about every resource available to you. Here’s a look at some of the biggest benefits people miss—and how you can make sure you’re not leaving money on the table.

Why So Many Benefits Go Unused

One of the biggest issues is that many families don’t know these programs exist. Others are overwhelmed by the paperwork, or they assume they won’t qualify. Unfortunately, that means millions of people miss out on real help.

Seniors, for example, lose about $30 billion in public benefits every year simply because they don’t apply. Programs like Medicare Extra Help can reduce prescription drug costs to almost nothing, but many eligible seniors never claim it.

The same is true for other programs: only about half of eligible families use WIC, around 60% of eligible seniors don’t receive SNAP, and nearly 40% of people who qualify for Medicare Savings Programs never enroll—even though it could save them almost $2,000 per year.

Even free tax filing goes unused. Roughly 70% of taxpayers are eligible for free filing software, but only 2 to 3% take advantage of it.

That’s billions of dollars in missed benefits that could help families eat better, stay healthier, and keep the lights on.

Unclaimed Money in Your State

It’s not just benefits that go unclaimed. States are also holding more than $41 billion in unclaimed money. This could be from forgotten bank accounts, old checks, utility deposits, or rebates. The amounts vary by state, but for many people it can add up to hundreds of dollars.

The process is simple and free. You can search for unclaimed property through your state’s website or through Missing Money, a national database. Be sure to search every state you’ve lived in, since money can follow you after you move.

Why the Wealthy Get More Help

It might sound surprising, but wealthier Americans often receive more government help than those who are struggling. Instead of food stamps or Medicaid, that help usually comes in the form of tax breaks and subsidies.

In his book Poverty, by America, Matthew Desmond highlights how unbalanced the system really is. In one example, the federal government spent $193 billion on homeowner subsidies compared to just $53 billion on direct housing assistance for low income families. And in 2021 alone, the United States spent $1.8 trillion on tax breaks—more than the total discretionary budget for healthcare, housing, education, and more combined.

In fact, the richest families receive about 40% more in government subsidies each year than the poorest families. Wealthier households can afford lawyers and accountants to navigate the system for them, while low income families are often left to deal with complicated applications and long wait times alone.

The Benefits Cliff

Another major barrier is something called the benefits cliff. This happens when a small raise at work pushes your household income just over the limit for benefits like SNAP, Medicaid, or housing assistance. You may gain only a few dollars from the raise but lose hundreds—or even thousands—in benefits.

It’s a frustrating situation that keeps many families trapped, feeling punished for trying to get ahead. And while lawmakers often talk about simplifying the system, many of those promises never make it into real policy.

Gatekeeping and Red Tape

The truth is, some states intentionally make their programs harder to access. Complicated forms, long applications, and unnecessary verification steps all discourage people from applying. Participation rates in programs like SNAP are consistently lower in states with more red tape—not because people don’t need help, but because it’s harder to get it.

This saves states billions of dollars, but it comes at the expense of struggling families.

Action Steps You Can Take

Even though the system can be frustrating, there are still steps you can take to make sure you’re not missing out on the help you deserve. Start by checking for unclaimed money in your state. Then, review available programs to see if you qualify for more support than you’re currently receiving.

Websites like Benefits.gov can help you find programs you may be eligible for, but remember—qualifying for one program doesn’t automatically tell you about others. You often have to do the digging yourself, and that’s why we share resources here at Low Income Relief.

You can also call and email your lawmakers to share your thoughts on issues like the benefits cliff, unfair rules, and program cuts. Real stories can make a real difference in shaping policy.

Relief Recap

The bottom line is that billions of dollars in benefits go unclaimed every year—not because people don’t need them, but because the system is confusing and hard to access. From SNAP and WIC to Medicare Savings Programs and unclaimed property, there are resources waiting to help.

Don’t let the system keep you from what you’re entitled to. Take time to check for unclaimed money, explore benefits you may qualify for, and speak up about the challenges you face. Every dollar matters, and with a little effort, you might uncover support that makes a big difference for your household.