![Supplemental Nutrition Assistance Program logo](https://upload.wikimedia.org/wikipedia/commons/9/96/Supplemental_Nutrition_Assistance_Program_logo.svg)
In the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
, the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, is a federal program that provides food-purchasing assistance for
low- and no-income people. It is a federal aid program, administered by the
United States Department of Agriculture
The United States Department of Agriculture (USDA) is the federal executive department responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food. It aims to meet the needs of com ...
under the
Food and Nutrition Service
The Food and Nutrition Service (FNS) is an agency of the United States Department of Agriculture (USDA). The FNS is the federal agency responsible for administering the nation’s domestic nutrition assistance programs. The service helps to add ...
(FNS), though benefits are distributed by specific departments of U.S. states (e.g. Division of Social Services,
Department of Health and Human Services
The United States Department of Health and Human Services (HHS) is a cabinet-level executive branch department of the U.S. federal government created to protect the health of all Americans and providing essential human services. Its motto is ...
, etc.).
SNAP benefits supplied roughly 40 million Americans in 2018, at an expenditure of $57.1 billion.
Approximately 9.2% of American households obtained SNAP benefits at some point during 2017, with approximately 16.7% of all children living in households with SNAP benefits.
Beneficiaries and costs increased sharply with the
Great Recession
The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At ...
, peaked in 2013 and have declined through 2017 as the economy recovered.
It is the largest nutrition program of the
15 administered by FNS and is a key component of the social safety net for low-income Americans.
The amount of SNAP benefits received by a household depends on the household's size, income, and expenses. For most of its history, the program used paper-denominated "stamps" or coupons – worth $1 (brown), $5 (blue), and $10 (green) – bound into booklets of various denominations, to be torn out individually and used in single-use exchange. Because of their 1:1 value ratio with actual currency, the coupons were printed by the
Bureau of Engraving and Printing
The Bureau of Engraving and Printing (BEP) is a government agency within the United States Department of the Treasury that designs and produces a variety of security products for the United States government, most notable of which is Federal Re ...
. Their rectangular shape resembled a
U.S. dollar bill
The United States one-dollar bill ($1), sometimes referred to as a single, has been the lowest value denomination of United States paper currency since the discontinuation of U.S. fractional currency notes in 1876. An image of the first U.S. ...
(although about one-half the size), including
intaglio printing on high-quality paper with
watermark
A watermark is an identifying image or pattern in paper that appears as various shades of lightness/darkness when viewed by transmitted light (or when viewed by reflected light, atop a dark background), caused by thickness or density variations ...
s. In the late 1990s, the Food Stamp Program was revamped, with some states phasing out actual stamps in favor of a specialized debit card system known as
Electronic Benefit Transfer (EBT), provided by private contractors. EBT has been implemented in all states since June 2004. Each month, SNAP benefits are directly deposited into the household's EBT card account. Households may use EBT to pay for food at supermarkets, convenience stores, and other food retailers, including certain
farmers' markets
A farmers' market (or farmers market according to the AP stylebook, also farmer's market in the Cambridge Dictionary) is a physical retail marketplace intended to sell foods directly by farmers to consumers. Farmers' markets may be indoors or o ...
.
History
The Origin of the Food Stamps
The federal government's ability to alleviate hunger through the means of food stamps was first introduced with Congress passing the income tax law. Even after the federal government had the funding to create a social safety net, its involvement in food assistance was not introduced until the 1930s, when the Great Depression caused unemployment, homelessness, and starvation to become a national issues that permeated such a high percentage of the population. At the time of the Great Depression, farmers were growing surplus produce, but unemployed and impoverished people were unable to afford to buy it. The origin of food stamps were intended partially to help the poor, but just as equally to boost the economy and pay farmers a fair price for their labors. In essence, food stamps were intended to create a political agreement between agriculture and the federal government by giving out excess goods in a crisis.
First Food Stamp Program (FSP; May 16, 1939 – Spring 1943)
The idea for the first food stamp program has been credited to various people, most notably
Secretary of Agriculture Henry A. Wallace and the program's first administrator,
Milo Perkins.
Of the program, Perkins said, "We got a picture of a gorge, with farm surpluses on one cliff and under-nourished city folks with outstretched hands on the other. We set out to find a practical way to build a bridge across that chasm." The program, run by the U.S. Department of Agriculture (USDA) by permitting people on
relief
Relief is a sculptural method in which the sculpted pieces are bonded to a solid background of the same material. The term '' relief'' is from the Latin verb ''relevo'', to raise. To create a sculpture in relief is to give the impression that th ...
to buy orange stamps equal to their normal food expenditures; for every $1 of orange stamps purchased, 50 cents' worth of blue stamps were received. Orange food stamps could be used at any food retailers or wholesalers, but excluded alcoholic beverages, concession stand meals that could be eaten on premises, and tobacco products. The blue stamps could only be used to buy what the USDA defined as surplus produce, which included items such as beans, eggs, fruit, and the like.
[
]
Over the course of nearly four years, the first FSP reached approximately 20 million people in nearly half of the counties in the United States at a total cost of $262 million. At its peak, the program assisted an estimated four million people. The first recipient was Mabel McFiggin of Rochester, New York
Rochester () is a city in the U.S. state of New York, the seat of Monroe County, and the fourth-most populous in the state after New York City, Buffalo, and Yonkers, with a population of 211,328 at the 2020 United States census. Located in W ...
; the first retailer to redeem the stamps was Joseph Mutolo; and the first retailer caught violating program rules was Nick Salzano in October 1939. The program ended when the conditions that brought the program into being — unmarketable food surpluses and widespread unemployment
Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work during the refere ...
— ceased to exist. By 1943, the start of World War II equalized the agricultural economy and the unemployment rate was lowered, and incentive to help those still in need was not reason enough for the government to continue this program.
Pilot Food Stamp Program (1961–1964)
The 18 years between the end of the first FSP and the inception of the next were filled with studies, reports, and legislative proposals. Prominent US senators actively associated with attempts to enact a food stamp program during this period included George Aiken
George David Aiken (August 20, 1892November 19, 1984) was an American politician and horticulturist. A member of the Republican Party, he was the 64th governor of Vermont (1937–1941) before serving in the United States Senate for 34 years, ...
, Robert M. La Follette Jr., Hubert Humphrey
Hubert Horatio Humphrey Jr. (May 27, 1911 – January 13, 1978) was an American pharmacist and politician who served as the 38th vice president of the United States from 1965 to 1969. He twice served in the United States Senate, representing Mi ...
, Estes Kefauver, and Stuart Symington
William Stuart Symington III (; June 26, 1901 – December 14, 1988) was an American businessman and Democratic politician from Missouri. He served as the first Secretary of the Air Force from 1947 to 1950 and was a United States Senator from ...
. From 1954 on, US Representative
Representative may refer to:
Politics
* Representative democracy, type of democracy in which elected officials represent a group of people
* House of Representatives, legislative body in various countries or sub-national entities
* Legislator, som ...
Leonor Sullivan
Leonor Kretzer Sullivan (August 21, 1902 – September 1, 1988) was a member of the United States House of Representatives from Missouri. She was a Democrat and the first woman in Congress from Missouri.
Biography
Born Leonor Kretzer in St. Lou ...
strove to pass food-stamp program legislation.
Hunger continued for the poor people of the country even after the Great Depression ended, but advocacy to reinstate the food stamp program was generally unsuccessful while the political agenda did not require it. Until 1961 when President John F. Kennedy took office, there were few pilot programs in place to help America's poor.[
On September 21, 1959, P.L. 86-341 authorized the Secretary of Agriculture to operate a food-stamp system through January 31, 1962. The ]Eisenhower
Dwight David "Ike" Eisenhower (born David Dwight Eisenhower; ; October 14, 1890 – March 28, 1969) was an American military officer and statesman who served as the 34th president of the United States from 1953 to 1961. During World War II, ...
Administration never used the authority. However, in fulfillment of a campaign promise made in West Virginia
West Virginia is a state in the Appalachian, Mid-Atlantic and Southeastern regions of the United States.The Census Bureau and the Association of American Geographers classify West Virginia as part of the Southern United States while the B ...
, President John F. Kennedy
John Fitzgerald Kennedy (May 29, 1917 – November 22, 1963), often referred to by his initials JFK and the nickname Jack, was an American politician who served as the 35th president of the United States from 1961 until his assassination ...
's first Executive Order called for expanded food distribution and, on February 2, 1961, he announced that food stamp pilot programs would be initiated. The pilot programs would retain the requirement that the food stamps be purchased, but eliminated the concept of special stamps for surplus foods. A Department spokesman indicated the emphasis would be on increasing the consumption of perishables. This decision still provided great advantages for retailers, and the political choice to eliminate the required purchase of surplus produce created financial gains for the producers and distributors of processed foods.[
Of the program, US Representative Leonor K. Sullivan of ]Missouri
Missouri is a state in the Midwestern region of the United States. Ranking 21st in land area, it is bordered by eight states (tied for the most with Tennessee): Iowa to the north, Illinois, Kentucky and Tennessee to the east, Arkansas t ...
asserted, "...the Department of Agriculture seemed bent on outlining a possible food stamp plan of such scope and magnitude, involving some 25 million persons, as to make the whole idea seem ridiculous and tear food stamp plans to smithereens."
Food Stamp Act of 1964
The Food Stamp Act of 1964
The Food Stamp Act (P.L. 88-525) provided permanent legislative authority to the Food Stamp Program, which had been administratively implemented on a pilot basis in 1962. On August 31, 1964 it was signed into law by President Lyndon B. Johnso ...
appropriated $75 million to 350,000 individuals in 40 counties and three cities. The measure drew overwhelming support from House Democrats, 90 percent from urban areas, 96 percent from the suburbs, and 87 percent from rural areas. Republican lawmakers opposed the initial measure: only 12 percent of urban Republicans, 11 percent from the suburbs, and 5 percent from rural areas voted affirmatively. President Lyndon B. Johnson
Lyndon Baines Johnson (; August 27, 1908January 22, 1973), often referred to by his initials LBJ, was an American politician who served as the 36th president of the United States from 1963 to 1969. He had previously served as the 37th vice ...
hailed food stamps as "a realistic and responsible step toward the fuller and wiser use of an agricultural abundance".
Rooted in congressional logrolling
Logrolling is the trading of favors, or ''quid pro quo'', such as vote trading by legislative members to obtain passage of actions of interest to each legislative member. In organizational analysis, it refers to a practice in which different o ...
, the act was part of a larger appropriation that raised price supports for cotton and wheat. Rural lawmakers supported the program so that their urban colleagues would not dismantle farm subsidies. Food stamps, along with Medicaid
Medicaid in the United States is a federal and state program that helps with healthcare costs for some people with limited income and resources. Medicaid also offers benefits not normally covered by Medicare, including nursing home care and per ...
/ Medicare, Head Start, and the Job Corps
Job Corps is a program administered by the United States Department of Labor that offers free education and vocational training to young men and women ages 16 to 24.
Mission and purpose
Job Corps' mission is to help young people ages 16 throug ...
, were foremost among the growing anti-poverty programs.
President Johnson called for a permanent food-stamp program on January 31, 1964, as part of his "War on Poverty
The war on poverty is the unofficial name for legislation first introduced by United States President Lyndon B. Johnson during his State of the Union address on January 8, 1964. This legislation was proposed by Johnson in response to a national ...
" platform introduced at the State of the Union a few weeks earlier. Agriculture Secretary Orville Freeman
Orville Lothrop Freeman (May 9, 1918February 20, 2003) was an American Democratic politician who served as the 29th Governor of Minnesota from January 5, 1955, to January 2, 1961, and as the U.S. Secretary of Agriculture from 1961 to 1969 under ...
submitted the legislation on April 17, 1964. The bill eventually passed by Congress
A congress is a formal meeting of the representatives of different countries, constituent states, organizations, trade unions, political parties, or other groups. The term originated in Late Middle English to denote an encounter (meeting of ...
was H.R. 10222, introduced by Congresswoman Sullivan. One of the members on the House Committee on Agriculture
The U.S. House Committee on Agriculture, or Agriculture Committee is a standing committee of the United States House of Representatives. The House Committee on Agriculture has general jurisdiction over federal agriculture policy and oversight of s ...
who voted against the FSP in Committee was then Representative Bob Dole, of Kansas. (Later, as a Senator, after he worked on the 1977 legislation that addressed problems with the program, Dole became a staunch supporter of it.)[Food Stamps](_blank)
(research topic guide). Robert and Elizabeth Dole Archive and Special Collections. University of Kansas
The University of Kansas (KU) is a public research university with its main campus in Lawrence, Kansas, United States, and several satellite campuses, research and educational centers, medical centers, and classes across the state of Kansas. T ...
. Retrieved 5 January 2019.
The Food Stamp Act of 1964 was intended to strengthen the agricultural economy and provide improved levels of nutrition among low-income households; however, the practical purpose was to bring the pilot FSP under congressional control and to enact the regulations into law.
The major provisions were:
* The State Plan of Operation requirement and development of eligibility standards by States;
* They required that the recipients should purchase their food stamps, while paying the average money spent on food then receiving an amount of food stamps representing an opportunity more nearly to obtain a low-cost nutritionally adequate diet;
* The eligibility for purchase with food stamps of all items intended for human consumption except alcoholic beverages and imported foods (the House version would have prohibited the purchase of soft drinks, luxury foods, and luxury frozen foods);
* Prohibitions against discrimination on basis of race, religious creed, national origin, or political beliefs;
* The division of responsibilities between States (certification and issuance) and the Federal Government (funding of benefits and authorization of retailers and wholesalers), with shared responsibility for funding costs of administration; and
* Appropriations for the first year limited to $75 million; for the second year, to $100 million; and, for the third year, to $200 million.
The Agriculture Department estimated that participation in a national FSP would eventually reach 4 million, at a cost of $360 million annually, far below the actual numbers.
Program expansion: participation milestones in the 1960s and early 1970s
In April 1965, participation topped half a million. (Actual participation was 561,261 people.) Participation topped 1 million in March 1966, 2 million in October 1967, 3 million in February 1969, 4 million in February 1970, 5 million one month later in March 1970, 6 million two months later in May 1970, 10 million in February 1971, and 15 million in October 1974. Rapid increases in participation during this period were primarily due to geographic expansion.
Major legislative changes (early 1970s)
The early 1970s were a period of growth in participation, concern about the cost of providing food stamp benefits, and questions about administration, primarily timely certification. During this time, the issue was framed that would dominate food stamp legislation ever after: how to balance program access with program accountability. Three major pieces of legislation shaped this period, leading up to massive reform to follow:
P.L. 91-671 (January 11, 1971) established uniform national standards of eligibility and work requirements; required that allotments be equivalent to the cost of a nutritionally adequate diet; limited households' purchase requirements to 30 percent of their income; instituted an outreach requirement; authorized the Agriculture Department to pay 62.5 percent of specific administrative costs incurred by States; expanded the FSP to Guam
Guam (; ch, Guåhan ) is an organized, unincorporated territory of the United States in the Micronesia subregion of the western Pacific Ocean. It is the westernmost point and territory of the United States (reckoned from the geographic cent ...
, Puerto Rico
Puerto Rico (; abbreviated PR; tnq, Boriken, ''Borinquen''), officially the Commonwealth of Puerto Rico ( es, link=yes, Estado Libre Asociado de Puerto Rico, lit=Free Associated State of Puerto Rico), is a Caribbean island and unincorporated ...
, and the Virgin Islands
The Virgin Islands ( es, Islas Vírgenes) are an archipelago in the Caribbean Sea. They are geologically and biogeographically the easternmost part of the Greater Antilles, the northern islands belonging to the Puerto Rico Trench and St. Cro ...
of the United States; and provided $1.75 billion appropriations for Fiscal Year 1971.
Agriculture and Consumer Protection Act of 1973 (P.L. 93-86, August 10, 1973) required States to expand the program to every political jurisdiction before July 1, 1974; expanded the program to drug addicts and alcoholics in treatment and rehabilitation centers; established semi-annual allotment adjustments, bi-monthly issuance, and Supplemental Security Income (SSI) "cash-out" (which gave the option to states to issue Food Stamp benefits to SSI recipients in the form of their estimated cash value consolidated within the SSI grant, in order to reduce administrative costs); introduced statutory complexity in the income definition (by including in-kind payments and providing an accompanying exception); and required the Department to establish temporary eligibility standards for disasters.
P.L. 93-347 (July 12, 1974) authorized the Department to pay 50 percent of all states' costs for administering the program and established the requirement for efficient and effective administration by the States.
1974 nationwide program
In accordance with P.L. 93-86, the FSP began operating nationwide on July 1, 1974. (The program was not fully implemented in Puerto Rico until November 1, 1974.) Participation for July 1974 was almost 14 million.
Eligible access to Supplemental Security Income beneficiaries
Once a person is a beneficiary of the Supplemental Security Income (SSI) Program they may be automatically eligible for Food Stamps depending on their state's laws. How much money in food stamps they receive also varies by state. Supplemental Security Income was created in 1974.
Food Stamp Act of 1977
Both the outgoing Republican Administration and the new Democratic Administration offered Congress proposed legislation to reform the FSP in 1977. The Republican bill stressed targeting benefits to the neediest, simplifying administration, and tightening controls on the program; the Democratic bill focused on increasing access to those most in need and simplifying and streamlining a complicated and cumbersome process that delayed benefit delivery as well as reducing errors, and curbing abuse. The chief force for the Democratic Administration was Robert Greenstein, Administrator of the Food and Nutrition Service (FNS).
In Congress, major players were Senators George McGovern, Jacob Javits
Jacob Koppel Javits ( ; May 18, 1904 – March 7, 1986) was an American lawyer and politician. During his time in politics, he represented the state of New York in both houses of the United States Congress. A member of the Republican Party, he al ...
, Hubert Humphrey, and Bob Dole, and Congressmen Foley and Richmond. Amid all the themes, the one that became the rallying cry for FSP reform was "EPR"—eliminate the purchase requirement—because of the barrier to participation the purchase requirement represented. The bill that became the law (S. 275) did eliminate the purchase requirement. It also:
* eliminated categorical eligibility;
* established statutory income eligibility guidelines at the poverty line;
* established 10 categories of excluded income;
* reduced the number of deductions used to calculate net income and established a standard deduction to take the place of eliminated deductions;
* raised the general resource limit to $1,750;
* established the fair market value (FMV) test for evaluating vehicles as resources;
* penalized households whose heads voluntarily quit jobs;
* restricted eligibility for students and aliens;
* eliminated the requirement that households must have cooking facilities;
* replaced store due bills with cash change up to 99 cents;
* established the principle that stores must sell a substantial amount of staple foods if they are to be authorized;
* established the ground rules for Indian Tribal Organization administration of the FSP on reservations; and
* introduced demonstration project authority.
In addition to EPR, the Food Stamp Act of 1977 included several access provisions:
* using mail, telephone, or home visits for certification;
* requirements for outreach, bilingual personnel and materials, and nutrition education materials;
* recipients' right to submit applications the first day they attempt to do so;
* 30-day processing standard and inception of the concept of expedited service;
* Aid to Families with Dependent Children AFDC
Aid to Families with Dependent Children (AFDC) was a federal assistance program in the United States in effect from 1935 to 1997, created by the Social Security Act (SSA) and administered by the United States Department of Health and Human Servi ...
, the major cash welfare program;also assist SSI clients
* notice, recertification, and retroactive benefit protections; and
* a requirement for States to develop a disaster plan.
The integrity provisions of the new program included fraud disqualifications, enhanced Federal funding for States' anti-fraud activities, and financial incentives for low error rates.
Senator Dole, Republican of Kansas, who had worked with Senator McGovern, Democrat of South Dakota, to produce a bipartisan solution to the two of the main problems associated with food stamps – cumbersome purchase requirements and lax eligibility standards – told Congress regarding the new provisions: "I am confident that this bill eliminates the greedy and feeds the needy."
The House Report for the 1977 legislation points out that the changes in the Food Stamp Program are needed without reference to upcoming welfare reform since "the path to welfare reform is, indeed, rocky...."
EPR was implemented January 1, 1979. Participation that month increased 1.5 million over the preceding month.
According to Maggie Dickinson in the book ''Feeding the Crisis of Care and Abandonment in America's Food Safety Net'' "The Food Stamp Act of 1977 finally eliminated the food stamp purchase requirement, which mean poor families no longer needed to have cash up front to purchase food stamps"
Cutbacks of the early 1980s
The large and expensive FSP proved to be a favorite subject of close scrutiny from both the Executive Branch and Congress in the early 1980s. Major legislation in 1981 and 1982 enacted cutbacks including:
* addition of a gross income eligibility test in addition to the net income test for most households;
* temporary freeze on adjustments of the shelter deduction cap and the standard deduction and constraints on future adjustments;
* annual adjustments in food stamp allotments rather than semi-annual;
* consideration of non-elderly parents who live with their children and non-elderly siblings who live together as one household;
* required periodic reporting and retrospective budgeting;
* prohibition against using Federal funds for outreach;
* replacing the FSP in Puerto Rico with a block grant for nutrition assistance;
* counting retirement accounts as resources;
* state option to require job search of applicants as well as participants; and
* increased disqualification periods for voluntary quitters.
Electronic Benefits Transfer (EBT) began in Reading
Reading is the process of taking in the sense or meaning of letters, symbols, etc., especially by sight or touch.
For educators and researchers, reading is a multifaceted process involving such areas as word recognition, orthography (spelling ...
, Pennsylvania
Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, ...
, in 1984.
Mid-to-late 1980s
Recognition of the severe domestic hunger problem in the latter half of the 1980s led to incremental expansions of the FSP in 1985 and 1987, such as elimination of sales tax on food stamp purchases, reinstitution of categorical eligibility, increased resource limit for most households ($2,000), eligibility for the homeless, and expanded nutrition education. The Hunger Prevention Act of 1988 and the Mickey Leland Memorial Domestic Hunger Relief Act in 1990 foretold the improvements that would be coming. The 1988 and 1990 legislation accomplished the following:
* increasing benefits by applying a multiplication factor to Thrifty Food Plan costs;
* making outreach an optional activity for States;
* excluding advance earned income tax credits as income;
* simplifying procedures for calculating medical deductions;
* instituting periodic adjustments of the minimum benefit;
* authorizing nutrition education grants;
* establishing severe penalties for violations by individuals or participating firms; and
* establishing EBT as an issuance alternative.
Throughout this era, significant players were principally various committee chairmen: Congressmen Leland, Hall, Foley, Leon Panetta
Leon Edward Panetta (born June 28, 1938) is an American Democratic Party politician who has served in several different public office positions, including Secretary of Defense, CIA Director, White House Chief of Staff, Director of the Office of ...
, and, de la Garza and Senator Patrick Leahy
Patrick Joseph Leahy (; born March 31, 1940) is an American politician and attorney who is the senior United States senator from Vermont and serves as the president pro tempore of the United States Senate. A member of the Democratic Party, ...
.
1993 Mickey Leland Childhood Hunger Relief Act
By 1993, major changes in food stamp benefits had arrived. The final legislation provided for $2.8 billion in benefit increases over Fiscal Years 1984-1988. Leon Panetta, in his new role as OMB Director, played a major role as did Senator Leahy. Substantive changes included:
* eliminating the shelter deduction cap beginning January 1, 1997;
* providing a deduction for legally binding child support payments made to nonhousehold members;
* raising the cap on the dependent care deduction from $160 to $200 for children under 2 years old and $175 for all other dependents;
* improving employment and training (E&T) dependent care reimbursements;
* increasing the FMV test for vehicles to $4,550 on September 1, 1994 and $4,600 on October 1, 1995, then annually adjusting the value from $5,000 on October 1, 1996;
* mandating asset accumulation demonstration projects; and
* simplifying the household definition.
Later participation milestones
In December 1979, participation surpassed 20 million. In March 1994, participation hit a new high of 28 million.
1996 welfare reform and subsequent amendments
The mid-1990s was a period of welfare
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifical ...
reform. Prior to 1996, the rules for the cash welfare program, Aid to Families with Dependent Children
Aid to Families with Dependent Children (AFDC) was a federal assistance program in the United States in effect from 1935 to 1997, created by the Social Security Act (SSA) and administered by the United States Department of Health and Human Ser ...
(AFDC), were waived for many states. With the enactment of the 1996 welfare reform act, called the of 1996 (PRWORA), AFDC
Aid to Families with Dependent Children (AFDC) was a federal assistance program in the United States in effect from 1935 to 1997, created by the Social Security Act (SSA) and administered by the United States Department of Health and Human Servi ...
, an entitlement program, was replaced that with a new block grant to states called Temporary Assistance to Needy Families TANF.
Although the Food Stamp Program was reauthorized in the 1996 Farm Bill, the 1996 welfare reform made several changes to the program, including:
* denying eligibility for food stamps to most legal immigrants who had been in the country less than five years;
* placing a time limit on food stamp receipt of three out of 36 months for Able-bodied Adults Without Dependents The term Able-bodied Adults Without Dependents (ABAWDs) refers to low income working adults in the United States who do not have dependents. The 1996 welfare law (P.L. 104–193) set categorical requirements for food stamp participation. Among thes ...
(ABAWDs) who are not working at least 20 hours a week or participating in a work program;
* reducing the maximum allotments to 100 percent of the change in the Thrifty Food Plan (TFP) from 103 percent of the change in the TFP;
* freezing the standard deduction, the vehicle limit, and the minimum benefit;
* setting the shelter cap at graduated specified levels up to $300 by fiscal year 2001, and allowing states to mandate the use of the standard utility allowance;
* revising provisions for disqualification, including comparable disqualification with other means-tested programs; and
* requiring states to implement EBT before October 1, 2002.
As a result of all these changes, participation rates plummeted in the late 1990s, according to '' Slate'' online magazine.[Lowery, Annie (2010-12-10]
A Satisfying Subsidy: How conservatives learned to love the federal food stamps program
'' Slate''
The Balanced Budget Act of 1997 (BBA) and the Agricultural Research, Education and Extension Act of 1998 (AREERA) made some changes to these provisions, most significantly:
* using additional Employment and Training (E&T) funds to providing work program opportunities for able-bodied adults without dependents;
* allowing states to exempt up to 15 percent of able-bodied adults without dependents who would otherwise be ineligible;
* restoring eligibility for certain elderly, disabled, and minor immigrants who resided in the United States when the 1996 welfare reform act was enacted; and
* cutting administrative funding for states to account for certain administrative costs that previously had been allocated to the AFDC program and now were required to be allocated to the Food Stamp Program.
The fiscal year 2001 agriculture appropriations bill included two significant changes. The legislation increased the excess shelter cap to $340 in fiscal year 2001 and then indexed the cap to changes in the Consumer Price Index for All Consumers each year beginning in fiscal year 2002. The legislation also allowed states to use the vehicle limit they use in a TANF assistance program, if it would be result in a lower attribution of resources for the household.
Electronic Benefits Transfer
In the late 1990s, the Food Stamp Program was revamped, with some states phasing out actual stamps in favor of a specialized debit card system known as Electronic Benefit Transfer (EBT), provided by private contractors. Many states merged the use of the EBT card for public welfare
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifical ...
programs as well, such as cash assistance. The move was designed to save the government money by not printing the coupons, make benefits available immediately instead of requiring the recipient to wait for mailing or picking up the booklets in person, and reduce theft and diversion.
Renaming the Food Stamp Program
The 2008 farm bill renamed the Food Stamp Program to the Supplemental Nutrition Assistance Program (beginning October 2008) and replaced all references to "stamp" or "coupon" in federal law with "card" or "EBT." This was done to mark a more explicit focus on providing nutrition. It was also done to reduce usage of the stigmatized phrase "food stamps".
Temporary benefits increase from April 2009 to November 2013
SNAP benefits temporarily increased with the passage of the American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Act of 2009 (ARRA) (), nicknamed the Recovery Act, was a stimulus package enacted by the 111th U.S. Congress and signed into law by President Barack Obama in February 2009. Developed in response to the Gr ...
(ARRA), a federal stimulus package to help Americans affected by the Great Recession
The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At ...
of 2007.[Brad Plumer]
Food stamps will get cut by $5 billion this week — and more cuts could follow
''Washington Post'' (October 28, 2013). Beginning in April 2009 and continuing through the expansion's expiration on November 1, 2013, the ARRA appropriated $45.2 billion to increase monthly benefit levels to an average of $133.[Reid Wilson]
After Friday, states will lose $5 billion in food aid
''Washington Post'' (October 28, 2013). This amounted to a 13.6 percent funding increase for SNAP recipients.
This temporary expansion expired on November 1, 2013, resulting in a relative benefit decrease for SNAP households; on average, benefits decreased by 5 percent. According to a Center on Budget and Policy Priorities
The Center on Budget and Policy Priorities (CBPP) is a progressive American think tank that analyzes the impact of federal and state government budget policies. A 501(c)(3) nonprofit organization, the Center's stated mission is to "conduct resear ...
report, the maximum monthly benefit for a family of four dropped from $668 to $632, while the maximum monthly benefit for an individual dropped from $200 to $189.
Corporate influence and support
In June 2014, ''Mother Jones
Mary G. Harris Jones (1837 (baptized) – November 30, 1930), known as Mother Jones from 1897 onwards, was an Irish-born American schoolteacher and dressmaker who became a prominent union organizer, community organizer, and activist. She h ...
'' reported that "Overall, 18 percent of all food benefits money is spent at Walmart
Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores from the United States, headquarter ...
," and that Walmart had submitted a statement to the U.S. Securities and Exchange Commission
The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...
stating,
Companies that have lobbied on behalf of SNAP include PepsiCo, Coca-Cola
Coca-Cola, or Coke, is a carbonated soft drink manufactured by the Coca-Cola Company. Originally marketed as a temperance drink and intended as a patent medicine, it was invented in the late 19th century by John Stith Pemberton in Atlant ...
, and the grocery chain Kroger
The Kroger Company, or simply Kroger, is an American retail company that operates (either directly or through its subsidiaries) supermarkets and multi-department stores throughout the United States.
Founded by Bernard Kroger in 1883 in Cinci ...
. Kraft Foods
The second incarnation of Kraft Foods is an American food manufacturing and processing conglomerate, split from Kraft Foods Inc. in 2012 and headquartered in Chicago, Illinois. It became part of Kraft Heinz in 2015.
A merger with Heinz, arran ...
, which receives "One-sixth f itsrevenues ... from food stamp purchases" also opposes food stamp cuts.
Proposed College Student Hunger Act of 2019
Senator Elizabeth Warren
Elizabeth Ann Warren ( née Herring; born June 22, 1949) is an American politician and former law professor who is the senior United States senator from Massachusetts, serving since 2013. A member of the Democratic Party and regarded as a ...
and Congressman Al Lawson
Alfred James Lawson Jr. (born September 23, 1948) is an American businessman and politician who was the U.S. representative for Florida's 5th congressional district from 2017 to 2023. The district, which was eliminated following redistricting du ...
introduced the College Student Hunger Act of 2019 on July 17, 2019, in an attempt to extend SNAP benefits for college students in need; the act has not passed as of October 2022. The idea was to include both Pell Grant
A Pell Grant is a subsidy the U.S. federal government provides for students who need it to pay for college. Federal Pell Grants are limited to students with financial need, who have not earned their first bachelor's degree, or who are enrolled i ...
-eligible students and independent students. Warren and Lawson both believe that students have a right to both food and education, and the goal was to alleviate financial tension. This bill has been endorsed by several organizations including Bread for the World
Bread for the World is a non-partisan, Christian advocacy organization based in the United States that advocates for policy changes to end hunger. Bread for the World provides resources to help individuals advocate to end hunger, which might inc ...
. Specifically, the Act would allow Pell-Grant eligible and independent students to qualify for benefits, lowers the 20 hours/week work requirement to 10 hours/week, and requires the Department of Education to notify Pell Grant eligible students of their SNAP eligibility. The student hunger pilot program will test different ways students can use SNAP benefits such as directly at the dining hall or indirectly to help pay for student meal plans.
2021 Thrifty Food Plan modernization and SNAP benefits update
As directed by the US Farm Bill Agriculture Improvement Act of 2018
The 2018 farm bill or Agriculture Improvement Act of 2018 is an enacted United States farm bill that reauthorized $867 billion for many expenditures approved in the prior farm bill (the Agricultural Act of 2014). The bill was passed by the Senat ...
and the Biden administration January 22, 2021 Executive Order, the USDA implemented the first cost adjustment to the Thrifty Food Plan since its introduction in 1975. The four aspects the USDA evaluated included current food prices, the typical American diet, dietary guidance, and the available nutrients in food items. The '' Thrifty Food Plan, 2021'', is based on the needs of a family of four as defined by law, and sets $835.57 as the monthly cost for the reference family. This is a 21.03% increase from the prior amount (adjusted for current prices), or an increase of $4.79 per day for the reference family of four, and sets $835.57 as the monthly cost for the reference family. These changes are permanent, and went into effect October 1, 2021.
2022 outage
On August 28, 2022, outages were reported across multiples states for the payment system, including the EBT program.
Eligibility
Because SNAP is a means-tested program, recipients must meet all eligibility criteria in order to receive benefits. There are income and resource requirements for SNAP, as well as specific requirements for immigrants, elderly persons and persons with disabilities.
Income requirements
For income, individuals and households may qualify for benefits if they earn a gross monthly income that is 130% (or less) of the federal poverty level
In the United States, poverty has both social and political implications. In 2020, there were 37.2 million people in poverty. Some of the many causes include income inequality, inflation, unemployment, debt traps and poor education.Western, B ...
for a specific household size. For example: the SNAP-eligible gross monthly income is $1,245 or less for an individual. For a household of 4, the SNAP eligible gross monthly income is $2,552 or less. Gross monthly income is the amount an individual makes each month before any deductions, e.g., taxes, insurance, pensions, etc.
Work requirements
General work requirements apply to people aged 16 to 59 to participate in the program, exempting students, caregivers of children under 6 and incapacitate people, people unable to work due to a disability, and people in drug rehabilitation
Drug rehabilitation is the process of medical or psychotherapeutic treatment for dependency on psychoactive substances such as alcohol, prescription drugs, and street drugs such as cannabis, cocaine, heroin or amphetamines. The general intent i ...
. Such recipients must work 30 hours a week, or register for work or participate in state training; they may not reduce hours below 30 per week if working, quit, or decline a job offer without a good reason. For able-bodied adults aged 18 to 49 without dependents under 18 in the household and who are not pregnant, there is a requirement for 80 hours per month spent at work, volunteering, workfare
Workfare is a governmental plan under which welfare recipients are required to accept public-service jobs or to participate in job training. Many countries around the world have adopted workfare (sometimes implemented as "work-first" policies) to ...
, or workforce training. Critics say opportunities for training or volunteering are limited. Individual states may waive the work requirements, with many states in high unemployment areas opting to loosen requirements for SNAP eligibility.
In December 2019, the Trump Administration proposed to limit states' ability to issue eligibility waivers to single able-bodied adults between 18 and 49, which would result in ineligibility of SNAP benefits to an estimated 688,000 people in April 2020.
Resource requirements
There is also a resource requirement for SNAP, although eligibility requirements vary slightly from state to state. Generally speaking, households may have up to $2,250 in a bank account or other countable sources. If at least one person is age 60 or older and/or has disabilities, households may have $3,500 in countable resources.
Housing expenditure
The lack of affordable housing
Affordable housing is housing which is deemed affordable to those with a household income at or below the median as rated by the national government or a local government by a recognized housing affordability index. Most of the literature on af ...
in urban areas means that money that could have been spent on food is spent on housing expenses. Housing is generally considered affordable when it costs 30% or less of total household income; rising housing costs have made this ideal difficult to attain.
This is especially true in New York City
New York, often called New York City or NYC, is the most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the most densely populated major city in the Un ...
, where 28% of rent stabilized tenants spend more than half their income on rent. Among lower income families the percentage is much higher. According to an estimate by the Community Service Society
A community is a social unit (a group of living things) with commonality such as place, norms, religion, values, customs, or identity. Communities may share a sense of place situated in a given geographical area (e.g. a country, village, town ...
, 65% of New York City families living below the federal poverty line are paying more than half of their income toward rent.
The current eligibility criteria attempt to address this, by including a deduction for "excess shelter costs". This applies only to households that spend more than half of their net income on rent. For the purpose of this calculation, a household's net income is obtained by subtracting certain deductions from their gross (before deductions) income. If the household's total expenditures on rent exceed 50% of that net income, then the net income is further reduced by the amount of rent that exceeds 50% of net income. For 2007, this deduction can be no more than $417, except in households that include an elderly or disabled person. Deductions include:
# a standard deduction that is subtracted from income for all recipients,
# an earned income deduction reflecting taxes and work expenses,
# a deduction for dependent care expenses related to work or training (up to certain limits),
# a deduction for child support payments,
# a deduction for medical expenses above a set amount per month (only available to elderly and disabled recipients), and
# a deduction for excessively high shelter expenses.
The adjusted net income, including the deduction for excess shelter costs, is used to determine whether a household is eligible for food stamps.
Immigrant status and eligibility
The 2002 Farm Bill restores SNAP eligibility to most legal immigrants that:
*Have lived in the country for 5 years; or
*Are receiving disability-related assistance or benefits; or
*Have children under 18
Certain non-citizens, such as those admitted for humanitarian reasons and those admitted for permanent residence, may also be eligible for SNAP. Eligible household members can get SNAP benefits even if there are other members of the household that are not eligible.
Student eligibility
When CalFresh efinition requiredwas first introduced, college students were not considered a main target for food assistance; most students at the time were from white, middle-class families, under the care of their parents and were young high school graduates without dependents to provide for. To prevent students from mis-using the system, students enrolled in higher education for at least half-time were automatically ineligible for SNAP.
However, many students nowadays come from low-income families, racial and ethnic minorities, have jobs, are parents, or are not recent high school graduates. Many college students are leaving their homes and managing their own finances for the first time in their lives and depending on where they go to school, there may be limited access to affordable and nutritious food, making students particularly vulnerable to food insecurity. In 2015, in response to the changing student population, the CalFresh Student Eligibility Amendment established exemptions to the rule in Section 273.5(a) of Title 7 of the Code of Federal Regulations which excluded college students enrolled at least half-time from SNAP benefits. Commonly met exemptions include students be under 18 or over 49, physically or mentally unfit to work, participate in federal or state work study, be employed for at least 20 hours per week, participate in SNAP employment and training program, receive Temporary Assistance for Needy Families benefits, and caring for dependent children.
Unfortunately, many students are misinformed that using CalFresh or SNAP will negatively affect their financial aid packages and are worried about the stigma associated with food insecurity in college campuses. Out of fear of being ostracized by their peers, many college students simply don't apply or do not talk about the program, limiting awareness and the potential of CalFresh to eliminate college food insecurity. To counteract this, many recent legislations and changes to SNAP are focusing on SNAP education, outreach, and accessibility. For instance, the recently proposed College Student Hunger Act of 2019 focuses on improving student eligibility, increasing outreach and education for SNAP, and introduces a student hunger pilot program to test different ways CalFresh can be made more useful for students. The Act would allow Pell-Grant eligible and independent students to qualify for benefits, lowers the 20 hours/week work requirement to 10 hours/week, and requires the Department of Education to notify Pell Grant eligible students of their SNAP eligibility. The pilot program will test different ways students can use SNAP benefits such as directly at the dining hall or indirectly to help pay for student meal plans.
Applying for SNAP benefits
To apply for SNAP benefits, an applicant must first fill out a program application and return it to the state or local SNAP office. Each state has a different application, which is usually available online. There is more information about various state applications processes, including locations of SNAP offices in various states, displayed on an interactive Outreach Map found on the FNS website. Individuals who believe they may be eligible for P.O.SNAP benefits may use the Food and Nutrition Services' SNAP Screening Tool, which can help gauge eligibility.
Students
While many schools try to connect students to SNAP, students still struggle to qualify despite facing food insecurity, feel intimidated by the probing application process, and are often misinformed of how the program works. To avoid the stigma often attached with food insecurity, many college students simply don't apply. Many students are also misinformed that using CalFresh will negatively affect their financial aid packages. While there are about 4 million people enrolled in CalFresh, there are an additional 4 million eligible people who are not enrolled which may be due to incomplete applications, improper documentation, and the time it takes to verify applications. Fortunately, measures to make the application more accessible for students are underway. For instance, California SB 173 –a bill by Senator Bill Dodd –will required colleges to alert any students participating in work-study of their SNAP eligibility and provide them with a more efficient and time-saving application process.
Eligible food items under SNAP
As per USDA rules, households can use SNAP benefits to purchase:
* Foods for the household to eat, such as:
** fruits and vegetables
** breads and cereals
** dairy products
** meats, poultry, and fish
** snack foods and non-alcoholic beverages
* Plants and seeds which are fit for household consumption.
Additionally, restaurants operating in certain areas may be permitted to accept SNAP benefits from eligible candidates like elderly, homeless or disabled people in return for affordable meals.
However, the USDA is clear that households cannot use SNAP benefits to purchase the following:
* Wine, beer, liquor, cigarettes or tobacco
* Certain nonfood items like:
** hygiene (soaps, deodorant, menstrual care)
** paper products, household supplies
** pet foods
* Hot prepared foods in grocery stores
* Food items that are consumable in the store
* Vitamins and medicines[Eligible Food Items](_blank)
United States Department of Agriculture
The United States Department of Agriculture (USDA) is the federal executive department responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food. It aims to meet the needs of com ...
(official website), November 17, 2017 (Last modified), Accessed May 7, 2018.
Soft drinks, candy, cookies, snack crackers, and ice cream are classified as food items and are therefore eligible items. Seafood, steak, and bakery cakes are also food items and are therefore eligible items.
Energy drinks which have a nutrition facts label are eligible foods, but energy drinks which have a supplement facts label are classified by the FDA as supplements, and are therefore not eligible.
Live animals and birds may not be purchased; but live fish and shellfish are eligible foods. Pumpkins are eligible, but inedible gourds and solely ornamental pumpkins are not.
Gift basket
A gift basket or fruit basket is typically a gift delivered to the recipient at their home or workplace. A variety of gift baskets exist: some contain fruit; while others might contain dry or canned foods such as tea, crackers and jam; or the ...
s containing both food and non-food items "are not eligible for purchase with SNAP benefits if the value of the non-food items exceeds 50 percent of the purchase price. Items such as birthday
A birthday is the anniversary of the birth of a person, or figuratively of an institution. Birthdays of people are celebrated in numerous cultures, often with birthday gifts, birthday cards, a birthday party, or a rite of passage.
Many re ...
and other special occasion cakes are eligible as long as the value of non-edible decorations does not exceed 50 percent of the price."
State options
States are allowed under federal law to administer SNAP in different ways. As of April 2015, the USDA had published eleven periodic State Options Reports outlining variations in how states have administered the program. The USDA's most recent State Options Report, published in April 2015, summarizes:
Some areas of differences among states include: when and how frequently SNAP recipients must report household circumstances; on whether the state agency acts on all reported changes or only some changes; whether the state uses a simplified method for determining the cost of doing business in cases where an applicant is self-employed; and whether legally obligated child support
Child support (or child maintenance) is an ongoing, periodic payment made by a parent for the financial benefit of a child (or parent, caregiver, guardian) following the end of a marriage or other similar relationship. Child maintenance is paid d ...
payments made to non-household members are counted as an income exclusion rather than a deduction.
State agencies also have an option to call their program SNAP; whether to continue to refer to their program under its former name, the Food Stamp Program; or whether to choose an alternate name. Among the 50 states plus the District of Columbia, 32 call their program SNAP; five continue to call the program the Food Stamp Program; and 16 have adopted their own name. For example, California calls its SNAP implementation "CalFresh
CalFresh is the California implementation of the federal Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp program, which provides financial assistance for purchasing food to low-income California residents.
Benef ...
", while Arizona calls its program "Nutrition Assistance".
States and counties with highest use of SNAP per capita
According to January 2015 figures reported by the Census Bureau and USDA and compiled by ''USA Today'', the states and district with the most food stamp recipients per capita are:
According to June 2009 figures reported by the state agencies, the USDA, and Census Bureau, and compiled by the ''New York Times'', the individual counties with the highest levels of SNAP usage were:
Impact
During the recession of 2008, SNAP participation hit an all-time high. Arguing in support for SNAP, the Food Research and Action Center argued that "putting more resources quickly into the hands of the people most likely to turn around and spend it can both boost the economy and cushion the hardships on vulnerable people who face a constant struggle against hunger." Researchers have found that every $1 that is spent from SNAP results in $1.73 of economic activity. In California, the cost-benefit ratio is even higher: for every $1 spent from SNAP between $3.67 to $8.34 is saved in health care costs. The Congressional Budget Office
The Congressional Budget Office (CBO) is a List of United States federal agencies, federal agency within the United States Congress, legislative branch of the United States government that provides budget and economic information to Congress.
Ins ...
also rated an increase in SNAP benefits as one of the two most cost-effective of all spending and tax options it examined for boosting growth and jobs in a weak economy.
Participants
A summary statistical report indicated that an average of 44.2 million people used the program in FY 2016, down from 45.8 million in 2015 and below the 2013 peak of 47.6 million. SNAP is able to support 75% of those eligible for the program. Nearly 72 percent of SNAP participants are in families with children; more than one-quarter of participants are in households with seniors or people with disabilities.
, more than 15% of the U.S. population receive food assistance, and more than 20% in Georgia
Georgia most commonly refers to:
* Georgia (country), a country in the Caucasus region of Eurasia
* Georgia (U.S. state), a state in the Southeast United States
Georgia may also refer to:
Places
Historical states and entities
* Related to the ...
, Kentucky
Kentucky ( , ), officially the Commonwealth of Kentucky, is a state in the Southeastern region of the United States and one of the states of the Upper South. It borders Illinois, Indiana, and Ohio to the north; West Virginia and Virginia ...
, Louisiana
Louisiana , group=pronunciation (French: ''La Louisiane'') is a state in the Deep South and South Central regions of the United States. It is the 20th-smallest by area and the 25th most populous of the 50 U.S. states. Louisiana is borde ...
, New Mexico
)
, population_demonym = New Mexican ( es, Neomexicano, Neomejicano, Nuevo Mexicano)
, seat = Santa Fe
, LargestCity = Albuquerque
, LargestMetro = Tiguex
, OfficialLang = None
, Languages = English, Spanish ( New Mexican), Navajo, Ke ...
, Oregon
Oregon () is a state in the Pacific Northwest region of the Western United States. The Columbia River delineates much of Oregon's northern boundary with Washington, while the Snake River delineates much of its eastern boundary with Idaho. T ...
and Tennessee
Tennessee ( , ), officially the State of Tennessee, is a landlocked state in the Southeastern region of the United States. Tennessee is the 36th-largest by area and the 15th-most populous of the 50 states. It is bordered by Kentucky to th ...
. Washington D.C. was the highest share of the population to receive food assistance at over 23%.
According to the United States Department of Agriculture
The United States Department of Agriculture (USDA) is the federal executive department responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food. It aims to meet the needs of com ...
(based on a study of data gathered in Fiscal Year 2010), statistics for the food stamp program are as follows:
* 49% of all participant households have children (17 or younger), and 55% of those are single-parent households.
* 15% of all participant households have elderly (age 60 or over) members.
* 20% of all participant households have non-elderly disabled members.
* The average gross monthly income per food stamp household is $731; The average net income is $336.
* 37% of participants are White, 22% are African-American, 10% are Hispanic, 2% are Asian, 4% are Native American, and 19% are of unknown race or ethnicity.
Costs
Amounts paid to program beneficiaries rose from $28.6 billion in 2005 to $76 billion in 2013, falling back to $66.6 billion by 2016. This increase was due to the high unemployment rate (leading to higher SNAP participation) and the increased benefit per person with the passing of ARRA. SNAP average monthly benefits increased from $96.18 per person to $133.08 per person. Other program costs, which include the Federal share of State administrative expenses, Nutrition Education, and Employment and Training, amounted to roughly $3.7 million in 2013. There were cuts into the program's budget introduced in 2014 that were estimated to save $8.6 billion over 10 years. Some of the states are looking for measures within the states to balance the cuts, so they would not affect the recipients of the federal aid program.
Politics
According to a 2021 study, the staggered decade-long rollout of the American Food Stamp Program led to greater support for Democrats: "Overall, I find that Democrats—at the center of the program's enacting coalition—gained votes when the program was implemented locally, apparently through mobilization of new supporters rather than the conversion of political opponents."
Health
A 2018 study found that toddlers and preschoolers in households with access to food stamps had better health outcomes at ages 6–16 than similar children who did not have access to food stamps. A 2019 study found, "higher participation in SNAP is associated with lower overall and male suicide rates. Increasing SNAP participation by one standard deviation (4.5% of the state population) during the study period could have saved the lives of approximately 31,600 people overall and 24,800 men."
Food security and insecurity
While SNAP participants and other low-income nonparticipants spend similar amounts on food spending, SNAP participants tend to still experience greater food insecurity
Food security speaks to the availability of food in a country (or geography) and the ability of individuals within that country (geography) to access, afford, and source adequate foodstuffs. According to the United Nations' Committee on World ...
than nonparticipants. This is believed to be a reflection of the welfare of individuals who take the time to apply for SNAP benefits rather than the shortcomings of SNAP. Households facing the greatest hardships are the most likely to bear the burden of applying for program benefits. Therefore, SNAP participants tend to be, on average, less food secure than other low-income nonparticipants.
Self-selection
In statistics, self-selection bias arises in any situation in which individuals select themselves into a group, causing a biased sample with nonprobability sampling. It is commonly used to describe situations where the characteristics of the peop ...
by more food-needy households into SNAP makes it difficult to observe positive effects on food security
Food security speaks to the availability of food in a country (or geography) and the ability of individuals within that country (geography) to access, afford, and source adequate foodstuffs. According to the United Nations' Committee on World ...
from survey data, but data such as average income can be compared. Statistical models that control for this suggest that SNAP receipt reduces the likelihood of being food insecure and very food insecure by roughly 30 percent and 20 percent, respectively.
Crime
A 2019 study in the ''American Economic Journal: Economic Policy'' found that a lifetime food stamp ban (as implemented by the 1996 Welfare reform) for convicted drug felons led to greater recidivism. The study found that this applied in particular for financially motivated crimes, which the authors said suggested "that the cut in benefits causes ex-convicts to return to crime to make up for the lost transfer income."
A 2021 study found that the availability of food stamps during early childhood substantially reduced the likelihood of a criminal conviction in young adulthood. The study concluded that the social benefits of food stamps were substantial enough to outweigh the costs of the program.
Poverty
Because SNAP is a means-tested entitlement program, participation rates are closely related to the number of individuals living in poverty in a given period. In periods of economic recession
In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various ...
, SNAP enrollment tends to increase and in periods of prosperity, SNAP participation tends to be lower. Unemployment is therefore also related to SNAP participation. However, ERS data shows that poverty and SNAP participation levels have continued to rise following the 2008 recession, even though unemployment rates have leveled off. Poverty levels are the strongest correlates for program participation.
A 2016 study found that SNAP benefits lead to greater expenditures on housing, transportation, and education by beneficiaries.
Income maintenance
The purpose of the Food Stamp Program as laid out in its implementation was to assist low-income households in obtaining adequate and nutritious diets. According to Peter H. Rossi, a sociologist whose work involved evaluation of social programs, "the program rests on the assumption that households with restricted incomes may skimp on food purchases and live on diets that are inadequate in quantity and quality, or, alternatively skimp on other necessities to maintain an adequate diet".[Rossi, Peter H. Feeding the Poor: Assessing Federal Food Aid. Washington: AEI Press, 1998 p.28] Food stamps, as many like Rossi, MacDonald, and Eisinger contend, are used not only for increasing food but also as income maintenance. Income maintenance is money that households are able to spend on other things because they no longer have to spend it on food. According to various studies shown by Rossi, because of income maintenance only about $0.17–$0.47 more is being spent on food for every food stamp dollar than was spent prior to individuals receiving food stamps.
Diet quality
Healthy and nutritious foods, such as raw produce, fish, and grains, on average cost much more than less nutritious, processed food options on a daily basis. As a result, maintaining a healthy diet is elusive and nearly impossible for low-income families. CalFresh can help expand family's budgets so they can afford healthy, nourishing foods. Studies are inconclusive as to whether SNAP has a direct effect on the nutritional quality of food choices made by participants. Unlike other federal programs that provide food subsidies, i.e. the Supplemental Nutrition Assistance Program for Women, Infants and Children (WIC), SNAP does not have nutritional standards for purchases. Critics of the program suggest that this lack of structure represents a missed opportunity for public health advancement and cost containment. In April 2013, the USDA research body, the Economic Research Service (ERS), published a study that examined diet quality in SNAP participants compared to low-income nonparticipants. The study revealed a difference in diet quality between SNAP participants and low-income nonparticipants, finding that SNAP participants score slightly lower on the Healthy Eating Index (HEI) than nonparticipants. The study also concluded that SNAP increases the likelihood that participants will consume whole fruit by 23 percentage points. However, the analysis also suggests that SNAP participation decreases participants' intake of dark green and orange vegetables by a modest amount.
A 2016 study found no evidence that SNAP increased expenditures on tobacco by beneficiaries.
Macroeconomic effect
The USDA's Economic Research Service explains: "SNAP is a counter-cyclical
Procyclical and countercyclical variables are variables that fluctuate in a way that is positively or negatively correlated with business cycle fluctuations in gross domestic product (GDP). The scope of the concept may differ between the context ...
government assistance program—it provides assistance to more low-income households during an economic downturn or recession and to fewer households during an economic expansion. The rise in SNAP participation during an economic downturn results in greater SNAP expenditures which, in turn, stimulate the economy."
In 2011, Secretary of Agriculture Tom Vilsack
Thomas James Vilsack (; born December 13, 1950) is an American politician serving as the 32nd United States Secretary of Agriculture in the Biden administration. He previously served in the role from 2009 to 2017 during the Obama administration. ...
gave a statement regarding SNAP benefits: "Every dollar of SNAP benefits generates $1.84 in the economy in terms of economic activity." Vilsack's estimate was based on a 2002 USDA study which found that "ultimately, the additional $5 billion of FSP (Food Stamp Program) expenditures triggered an increase in total economic activity (production, sales, and value of shipments) of $9.2 billion and an increase in jobs of 82,100," or $1.84 stimulus for every dollar spent.
A January 2008 report by Moody's Analytics
Moody's Analytics is a subsidiary of Moody's Corporation established in 2007 to focus on non-rating activities, separate from Moody's Investors Service. It provides economic research regarding risk, performance and financial modeling, as well as ...
chief economist Mark Zandi
Mark M. Zandi is an Iranian-American economist who is the chief economist of Moody's Analytics, where he directs economic research.
Zandi's research interests encompass macroeconomics, financial markets and public policy. He analyzes the economi ...
analyzed measures of the Economic Stimulus Act of 2008
The Economic Stimulus Act of 2008 () was an Act of Congress providing for several kinds of economic stimuli intended to boost the United States economy in 2008 and to avert a recession, or ameliorate economic conditions. The stimulus package was ...
and found that in a weak economy, every $1 in SNAP expenditures generates $1.73 in real GDP increase, making it the most effective stimulus among all the provisions of the act, including both tax cuts and spending increases.
A 2010 report by Kenneth Hanson published by the USDA's Economic Research Service estimated that a $1 billion increase in SNAP expenditures increases economic activity (GDP) by $1.79 billion (i.e., the GDP multiplier is 1.79). The same report also estimated that the "preferred jobs impact ... are the 8,900 full-time equivalent jobs plus self-employed or the 9,800 full-time and part-time jobs plus self-employed from $1 billion of SNAP benefits."
Local economic effects
In March 2013, the ''Washington Post
''The Washington Post'' (also known as the ''Post'' and, informally, ''WaPo'') is an American daily newspaper published in Washington, D.C. It is the most widely circulated newspaper within the Washington metropolitan area and has a large na ...
'' reported that one-third of Woonsocket, Rhode Island
Woonsocket ( ), is a city in Providence County, Rhode Island, United States. The population was 43,240 at the 2020 census, making it the sixth largest city in the state. Being Rhode Island's northernmost city, Woonsocket lies directly south of ...
's population used food stamps, putting local merchants on a "boom or bust" cycle each month when EBT payments were deposited. The Post stated that "a federal program that began as a last resort for a few million hungry people has grown into an economic lifeline for entire towns." And this growth "has been especially swift in once-prosperous places hit by the housing bust".
In addition to local town merchants, national retailers are starting to take in an increasing large percentage of SNAP benefits. For example, "Walmart
Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores from the United States, headquarter ...
estimates it takes in about 18% of total U.S. outlays on food stamps."
Fraud and abuse
In March 2012, the USDA published its fifth report in a series of periodic analyses to estimate the extent of trafficking in SNAP; that is, selling or otherwise converting SNAP benefits for cash payouts. Although trafficking does not directly increase costs to the Federal Government, it diverts benefits from their intended purpose of helping low-income families access a nutritious diet. Also trafficking may indirectly increase costs by encouraging participants to stay in the program longer than intended, or by incentivizing new participants seeking to profit from trafficking. The FNS aggressively acts to control trafficking by using SNAP purchase data to identify suspicious transaction patterns, conducting undercover investigations, and collaborating with other investigative agencies.
Trafficking diverted an estimated one cent of each SNAP dollar ($330 million annually) from SNAP benefits between 2006 and 2008. Trafficking has declined over time from nearly 4 percent in the 1990s. About 8.2 percent of all stores trafficked from 2006 to 2008 compared to the 10.5 percent of SNAP authorized stores involved in trafficking in 2011. A variety of store characteristics and settings were related to the level of trafficking. Although large stores accounted for 87.3 percent of all SNAP redemptions, they only accounted for about 5.4 percent of trafficking redemptions. Trafficking was much less likely to occur among publicly owned than privately owned stores and was much less likely among stores in areas with less poverty rather than more. The total annual value of trafficked benefits increased at about the same rate as overall program growth. The current estimate of total SNAP dollars trafficked is higher than observed in the previous 2002–2005 period. This increase is consistent, however, with the almost 37 percent growths in average annual SNAP benefits from the 2002–2005 study periods to the most recent one. The methodology used to generate these estimates has known limitations. However, given variable data and resources, it is the most practical approach available to FNS. Further improvements to SNAP trafficking estimates would require new resources to assess the prevalence of trafficking among a random sample of stores.
The USDA report released in August 2013 says the dollar value of trafficking increased to 1.3 percent, up from 1 percent in the USDA's 2006–2008 survey, and "About 18 percent of those stores classified as convenience stores or small groceries were estimated to have trafficked. For larger stores (supermarkets and large groceries), only 0.32 percent were estimated to have trafficked. In terms of redemptions, about 17 percent of small groceries redemptions and 14 percent of convenience store redemptions were estimated to have been trafficked. This compares with a rate of 0.2 percent for large stores."
The USDA, in December 2011, announced new policies to attempt to curb waste, fraud, and abuse. These changes will include stiffer penalties for retailers who are caught participating in illegal or fraudulent activities. "The department is proposing increasing penalties for retailers and providing states with access to large federal databases they would be required to use to verify information from applicants. SNAP benefit fraud, generally in the form of store employees buying EBT cards from recipients is widespread in urban areas, with one in seven corner stores engaging in such behavior, according to a recent government estimate. There are in excess of 200,000 stores, and we have 100 agents spread across the country. Some do undercover work, but the principal way we track fraud is through analyzing electronic transactions" for suspicious patterns, USDA Under Secretary Kevin Concannon told The Washington Times
''The Washington Times'' is an American conservative daily newspaper published in Washington, D.C., that covers general interest topics with a particular emphasis on national politics. Its broadsheet daily edition is distributed throughou ...
. Also, states will be given additional guidance that will help develop a tighter policy for those seeking to effectively investigate fraud and clarifying the definition of trafficking.
The State of Utah developed a system called "eFind" to monitor, evaluate and cross-examine qualifying and reporting data of recipients assets. Utah's eFind system is a "back end", web-based system that gathers, filters, and organizes information from various federal, state, and local databases. The data in eFind is used to help state eligibility workers determine applicants' eligibility for public assistance programs, including Medicaid, CHIP, the Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), and child care assistance. When information is changed in one database, the reported changes become available to other departments utilizing the system. This system was developed with federal funds and it is available to other states free of charge.
The USDA only reports direct fraud and trafficking in benefits, which was officially estimated at $858 million in 2012. The Cato Institute
The Cato Institute is an American libertarian think tank headquartered in Washington, D.C. It was founded in 1977 by Ed Crane, Murray Rothbard, and Charles Koch, chairman of the board and chief executive officer of Koch Industries.Koch Ind ...
reports that there was another $2.2 billion in erroneous payouts in 2009. Cato also reported that the erroneous payout rate dropped significantly from 5.6 percent in 2007 to 3.8 percent in 2011.
According to the Government Accountability Office, at a 2009 count, there was a payment error rate of 4.36% of SNAP benefits down from 9.86% in 1999.[Supplemental Nutrition Assistance Program: Payment Errors and Trafficking Have Declined, but Challenges Remain](_blank)
GAO report number GAO-10-956T, July 28, 2010 A 2003 analysis found that two-thirds of all improper payments were the fault of the caseworker, not the participant. There are also instances of fraud involving exchange of SNAP benefits for cash and/or for items not eligible for purchase with EBT cards. In 2011, the Michigan program raised eligibility requirements for full-time college students, to save taxpayer money and to end student use of monthly SNAP benefits.
Water dumping / container deposit cashing fraud
In February 2013, the USDA expanded the definition of benefits trafficking to include indirect exchanges and "water dumping". The USDA defines water dumping as "purchase of beverages in containers with returnable deposits for the sole purpose of discarding the contents and returning the containers to obtain cash refund deposits" Trafficking is the most egregious program violation.
In Maine, incidents of recycling fraud have occurred in the past where individuals once committed fraud by using their EBT cards to buy canned or bottled beverages (requiring a deposit to be paid at the point of purchase for each beverage container), dump the contents out so the empty beverage container could be returned for deposit redemption, and thereby, allowed these individuals to eventually purchase non-EBT authorized products with cash from the beverage container deposits. In January 2011, Maine state prosecutors requested local law enforcement agencies to send reports of "water dumping" to welfare fraud prosecutor in the state attorney general's office. In January 2016, a Maine woman, Linda Goodman, who purchased $125 in bottled water, dumping them and redeeming containers for cash to purchase alcohol, was charged with welfare fraud and pleaded no contest to SNAP trafficking. She was fined and suspended from SNAP eligibility for one year.
Pop Train
Similarly, Pop Train is a scheme of using SNAP card Card or The Card may refer to:
* Various types of plastic cards:
**By type
***Magnetic stripe card
*** Chip card
*** Digital card
**By function
***Payment card
****Credit card
**** Debit card
****EC-card
****Identity card
****European Health Insur ...
benefits to purchase soda
Soda or SODA may refer to:
Chemistry
* Some chemical compounds containing sodium
** Sodium carbonate, washing soda or soda ash
** Sodium bicarbonate, baking soda
** Sodium hydroxide, caustic soda
** Sodium oxide, an alkali metal oxide
* Sod ...
and then re-selling the soda to turn a profit.
Role of SNAP in healthy diets
Healthy Incentives Pilot
The 2008 Farm Bill authorized $20 million to be spent on pilot projects to determine whether incentives provided to SNAP recipients at the point-of-sale would increase the purchase of fruits, vegetables, or other healthful foods.
Fifteen states expressed interest in having the Healthy Incentives Pilot (HIP) program and, ultimately, five states submitted applications to be considered for HIP. Hampden County, Massachusetts
Hampden County is a non-governmental county located in the Pioneer Valley of the state of Massachusetts, in the United States. As of the 2020 census, Hampden County's population was 465,825. Its traditional county seat is Springfield, the Co ...
was selected as the Healthy Incentives Pilot site. HIP operated between November 2011 and December 2012.The Massachusetts Department of Transitional Assistance (DTA) was the state agency responsible for SNAP. DTA recruited retailers to take part in HIP and sell more produce, planned for the EBT system change with the state EBT vendor, and hired six new staff members dedicated to HIP. DTA provided FNS with monthly reports, data collection and evaluation.
HIP offered select SNAP recipients a 30% subsidy on produce, which was credited to the participant's EBT card. Out of approximately 55,000 SNAP households in Hampden County, 7,500 households participated in HIP. Under HIP, produce is defined as fresh, frozen, canned, or dried fruits and vegetables that do not have any added sugar, salt, fat, or oil.
On average, people in the HIP program ate about a quarter cup (26 percent) more fruits and vegetables per day than SNAP recipients who did not receive the incentives. HIP participants were more likely to have fruits and vegetables available at home during the pilot. If the program were implemented nationwide, the estimated cost would be approximately $90 million over 5 years.
Proposals to restrict "junk food" or "luxury items"
Periodically, proposals have been raised to restrict SNAP benefits from being used to purchase various categories or types of food which have been criticized as "junk food" or "luxury items". However, Congress and the Department of Agriculture have repeatedly rejected such proposals on both administrative burden and personal freedom grounds. The Food and Nutrition Service noted in 2007 that no federal standards exist to determine which foods should be considered "healthy" or not, that "vegetables, fruits, grain products, meat and meat alternatives account for nearly three-quarters of the money value of food used by food stamp households" and that "food stamp recipients are no more likely to consume soft drinks than are higher-income individuals, and are less likely to consume sweets and salty snacks." Thomas Farley and Russell Sykes argued that the USDA should reconsider the possibility of restricting "junk food" purchases with SNAP in order to encourage healthy eating, along with incentivizing the purchase of healthy items through a credit or rebate program that makes foods such as fresh vegetables and meats cheaper. They also noted that many urban food stores do a poor job of stocking healthy foods and instead favor high-profit processed items.[See No Junk Food, Buy No Junk Food]
Sykes, Russell & Thomas Farley, ''The New York Times
''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid d ...
'', 21 March 2015 Some data suggests that it would benefit public health by making sugar-sweetened beverages ineligible to purchase with SNAP benefits. SNAP households use about 10% of their food budgets on sugar-sweetened beverages. Removing eligibility for sugar-sweetened beverages could result in a 2.4% reduction in obesity prevalence, 1.7% reduction in type II diabetes prevalence, and elimination of 52,000 deaths from stroke and heart attack over the course of ten years.
The original implementation of food stamps was intended to help working farmers earn fair wages. The passing of the Food Stamp Act of 1964 that eliminated the surplus produce clause for blue stamps helped to boost the market for processed food retailers.[ After 1964, when the program grew more expensive and economic effects of the Depression and world wars were forgotten, Congress introduced more intense eligibility standards for the program in an attempt to mitigate costs that went towards helping those in need. Through the 1970s and 1980s many communities made claims that federal safety net and private charities were failing to meet the needs of poor individuals who needed greater resources and access to food.]
By 1994, SNAP's program enrollment seemed to see growth once more, with an enrollment of 27 million people. By 1996, President Clinton's Personal Responsibility and Work Opportunity Reconciliation Act restricted eligibility even further, reinforced even stronger working requirements, restricted given benefits, and increased penalties for non-compliance.[
]
See also
* ''Department of Agriculture v. Moreno
''Department of Agriculture v. Moreno'', 413 U.S. 528 (1973), was a United States Supreme Court case that declared a provision of the Food Stamp Act denying food stamps to households of "unrelated persons" to be a violation of the U.S. Constituti ...
'', 413 U.S. 528 (1973)
* Food, Conservation, and Energy Act of 2008
The Food, Conservation, and Energy Act of 2008 (, also known as the 2008 U.S. Farm Bill) was a $288 billion, five-year agricultural policy bill that was passed into law by the United States Congress on June 18, 2008. The bill was a continuation ...
(2007 Farm Bill)
* Food stamp challenge
* Lone Star Card (Texas
Texas (, ; Spanish: ''Texas'', ''Tejas'') is a state in the South Central region of the United States. At 268,596 square miles (695,662 km2), and with more than 29.1 million residents in 2020, it is the second-largest U.S. state by ...
Electronic Benefit Transfer)
* '' Lyng v. Castillo'', 477 U.S. 635 (1986)
* National School Lunch Act
* Special Supplemental Nutrition Program for Women, Infants and Children (WIC)
General:
* Food policy
Food policy is the area of public policy concerning how food is produced, processed, distributed, purchased, or provided. Food policies are designed to influence the operation of the food and agriculture system balanced with ensuring human health ...
* Hunger in the United States
Hunger in the United States of America affects millions of Americans, including some who are middle class, or who are in households where all adults are in work. The United States produces far more food than it needs for domestic consumption—h ...
* Social programs in the United States
Social programs in the United States are programs designed to ensure that the basic needs of the American population are met. Federal and state social programs include cash assistance, health insurance, food assistance, housing subsidies, e ...
* Social safety net
The social safety net (SSN) consists of non-contributory assistance existing to improve lives of vulnerable families and individuals experiencing poverty and destitution. Examples of SSNs are previously-contributory social pensions, in-kind and fo ...
Citations
General sources
* Eisinger, Peter K. ''Toward an end to hunger in America''. Washington: The Brookings Institution, 1998.
* Gundersen, Craig; LeBlanc, Michael; Kuhn, Betsey
"The Changing Food Assistance Landscape: The Food Stamp Program in a Post-Welfare Reform Environment
United States Department of Agriculture
The United States Department of Agriculture (USDA) is the federal executive department responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food. It aims to meet the needs of com ...
, Agricultural Economics Report No. (AER773) 36 pp, March 1999
* MacDonald, Maurice. Food, Stamps, and Income Maintenance. New York: Academic Pres, Inc, 1977.
* United States Department of Health and Human Services
The United States Department of Health and Human Services (HHS) is a cabinet-level executive branch department of the U.S. federal government created to protect the health of all Americans and providing essential human services. Its motto is ...
"2002 Indicators of Welfare Dependence Appendix A: Program Data: Food Stamp Program"
** Article based on the USDA Web publication
; Attribution
*
External links
Supplemental Nutrition Assistance Program (SNAP)
at Food and Nutrition Service
The Food and Nutrition Service (FNS) is an agency of the United States Department of Agriculture (USDA). The FNS is the federal agency responsible for administering the nation’s domestic nutrition assistance programs. The service helps to add ...
History of the Food Stamp Program
video from Center on Budget and Policy Priorities
The Center on Budget and Policy Priorities (CBPP) is a progressive American think tank that analyzes the impact of federal and state government budget policies. A 501(c)(3) nonprofit organization, the Center's stated mission is to "conduct resear ...
SNAP/Food Stamp Challenges
Food Stamp Fraud - Supermarket Owner Imprisoned for Multi-Million-Dollar Scam
(FBI
The Federal Bureau of Investigation (FBI) is the domestic intelligence and security service of the United States and its principal federal law enforcement agency. Operating under the jurisdiction of the United States Department of Justice, t ...
)
{{Contemporary social welfare programs in the United States
Great Society programs
United States Department of Agriculture programs
Food security in the United States
Federal assistance in the United States