Nutrition Assistance for Puerto Rico (NAP) es, Programa de Asistencia Nutricional (PAN) popularly known in Puerto Rico as ''Cupones'' ('' en, Food Stamps'') is a

federal assistance In the United States, federal assistance, also known as federal aid, federal benefits, or federal funds, is defined as any federal program, project, service, or activity provided by the federal government that directly assists domestic governme ...

nutrition Nutrition is the biochemical and physiological process by which an organism uses food to support its life. It provides organisms with nutrients, which can be metabolized to create energy and chemical structures. Failure to obtain sufficient ...

al program provided 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 ...

(USDA) solely to

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 ...

. In 2021, over $2 billion

USD The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...

was appropriated as a block grant for NAP to assist over 1 million impoverished residents of Puerto Rico.OMB NAP assessment detail
, Question 1.2.
Statistics Table Introduction. It is based on, though not part of, the USDA's national Supplemental Nutrition Assistance Program (SNAP) which in 2018 provided $64 billion in nutritional assistance to 42 million people in the 50 U.S. states, D.C., Guam and the US Virgin Islands.OMB NAP assessment detail
Questions 1.3, 2.6, and 4.4. Since its inception in 1982, the program has been providing low-income families, living in Puerto Rico, with cash for food purchases. It is a collaborative effort between the USDA and the island's government, where the former provides annual federal appropriations for the Puerto Rican government to distribute individually among eligible participants. Although the methods of providing such benefits have changed over the years, the program's basic objective of helping low-income families meet their nutritional needs has remained constant. It has received criticism especially when federal reviews and assessments revealed deficiencies in its operations and management, requiring the implementation of various changes, including increased scrutiny. It has also attracted both criticism and advocacy from Puerto Rico and the United States over its effectiveness in helping poor families, and its impact on Puerto Rico's social classes and economy.

History

Food stamps have been issued in the United States since

World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposing ...

, but the program did not include Puerto Rico until the early 1970s, when U.S. Public Laws 91-671 of January 11, 1971 and 93-86 of November 1, 1974 partially extended the Food Stamp Program to

U.S. territories Territories of the United States are sub-national administrative divisions overseen by the federal government of the United States. The various American territories differ from the U.S. states and tribal reservations as they are not sover ...

. The Food Stamp program was later expanded to provide full coverage and benefits to Puerto Rico and other territories under Section 19 of the Food Stamp Act of 1977.OMB NAP assessment detail
Section 1, Question 1.1. By 1977, the

Food Stamp Program In the United States, 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, ad ...

in Puerto Rico was larger, in terms of both the percentage of the population participating and expenditures, than any of the programs operating in the 50 U.S. States, with 56% of the Puerto Rican population participating in the program.GAO 1978, Report No. CED-78-84.FANRR-19-3, Chapter 11, p. 286, par. 3. In total, it accounted for approximately 8 percent of the national program's beneficiaries, and its operations and benefits awarded accounted for 8 percent of the national program's total federal expenditures. To address these issues, the 1981 Omnibus Budget Reconciliation Act (OBRA) eliminated Puerto Rico from the national Food Stamp program and created the Nutrition Assistance Program (NAP) for Puerto Rico as a block grant to provide more administrative flexibility to the Commonwealth while reducing Federal expenditures.FANRR-19-3, Chapter 11, p. 286, par. 4.OMB NAP assessment detail
Section 3, Question 3.1. OMB A-133 Comp. Suppl., p. 4-10.566-2, par. 5. After a year of studies and design, it commenced operations on July 1, 1982 with an annual appropriation of $825 million.OMB NAP assessment detail
Section 2, Question 2.6. The new block grant program differed significantly from the former Food Stamp program in three major ways.GAO 1992, Report No. GAO/RCED-92-114. First, the new NAP program was designed to distribute the benefits through physical checks, ensuring that the benefit would be payable only to the beneficiary while at the same time reducing administrative costs, since the former physical

voucher A voucher is a bond of the redeemable transaction type which is worth a certain monetary value and which may be spent only for specific reasons or on specific goods. Examples include housing, travel, and food vouchers. The term voucher is also ...

s (''cupones'' in Spanish) were subject to storage and accountability problems, theft, counterfeiting and even trafficking.FANRR-19-3, Chapter 11, p. 286, par. 6.OMB NAP assessment detail
, Section 1, Question 1.4. Second, the benefits were no longer restricted to vouchers redeemable only for food, but were provided in cash. The beneficiary could then elect to purchase a product or select services other than food. Third, the overall assistance provided to Puerto Rico was limited to an annual block appropriation, requiring the Puerto Rican government to adjust its program management to allocate the funds. Between 1982 and 1986, the

U.S. Congress The United States Congress is the legislature of the federal government of the United States. It is bicameral, composed of a lower body, the House of Representatives, and an upper body, the Senate. It meets in the U.S. Capitol in Washin ...

awarded $825 million annually in block grants for the NAP program, and since then the appropriations have steadily increased by an estimated 3% to 4% to compensate for inflation.FANRR-19-3, Chapter 11, p. 286, par. 9. In 1989, the $852.7 million NAP payments to island residents made up almost 20% of all US federal money transfers to Puerto Rico that year. It has surpassed $1 billion annually since the early 1990s, and increased 30% from 1993 to 2002. Since fiscal year 2006, the appropriation has reached over $1.5 billion annually. NAP appropriations were $1.9 billion in Fiscal Year 2020, and more than $2 billion in Fiscal Year 2021.

Participation rate

Over the years there had been a gradual decline in participation in NAP. While the participation rate in the previous Food Stamp program was estimated at 56% (more than 1.5 million island residents),OMB NAP assessment detail
, Question 4.4. by 1994, participation in the NAP program had decreased to 1.3 million residents,FANRR-19-3, Chapter 11, p. 287, par. 1. and by 2006 it had decreased to just over 1 million. In contrast, the Puerto Rican population had steadily increased throughout those same periods. However, the participation rate increased to 1.3 million in 2018, which was 40% of Puerto Rico's population. Perhaps as a consequence of

Hurricane Maria Hurricane Maria was a deadly Category 5 hurricane that devastated the northeastern Caribbean in September 2017, particularly Dominica, Saint Croix, and Puerto Rico. It is regarded as the worst natural disaster in recorded history to affect ...

in 2017 and the prolonged recession in Puerto Rico (which began in 2006), NAP had become fundamental in addressing poverty in Puerto Rico. In 2018, more than 800,000 seniors living in Puerto Rico and over half of Puerto Rico's children, were receiving nutritional assistance through NAP.

Criticism

Since its creation, the program received much criticism both within and outside Puerto Rico. Critics argue that, since the program provides non-taxable income without any employment requirements, recipients receive free money without incentives for work, which hinders the economic output and development of the island,''Trouble on Welfare Island'',

The Economist ''The Economist'' is a British weekly newspaper printed in demitab format and published digitally. It focuses on current affairs, international business, politics, technology, and culture. Based in London, the newspaper is owned by The Eco ...

, May 25, 2006.Report No. GAO-06-541, Chapter 3, p. 70, par. 3. especially when Puerto Rico's employment participation and unemployment rates have been consistently inferior to U.S. national levels,Report No. GAO-06-541, Chapter 3, p. 69, Figure 22. while the average aid provided in Puerto Rico has exceeded the U.S. national average ($94 versus $74.79, respectively; 2001 estimate). Because of this, Puerto Rico has been called the "welfare island". People from the

Dominican Republic The Dominican Republic ( ; es, República Dominicana, ) is a country located on the island of Hispaniola in the Greater Antilles archipelago of the Caribbean region. It occupies the eastern five-eighths of the island, which it shares with ...

do many of the jobs in Puerto Rico that pay too little to attract the locals. However, proponents of the program argue that Puerto Rico's social condition is in far worse shape than any of the 50 U.S. states.Report No. GAO-06-541, Chapter 3, p. 48, par. 1–3. Approximately half of the island's population lives below the U.S. Federal poverty guidelines, and many have difficulties in meeting their nutritional needs due to increasing inflation and economic stagnation in the island. Furthermore, the relation between the NAP benefits and the low employment participation and high unemployment rates has not been studied, and there is no consensus on their actual causes.Report No. GAO-06-541, Chapter 3, p. 70, par. 1. After Hurricanes Irma and Maria in 2017, NAP received some extra funding but in 2021, the non-voting Puerto Rico representative in the United States House of Representatives, Jennifer González, and others, stated people in Puerto Rico would be better off if Puerto Rico were participating in SNAP, an entitlement program, versus NAP, a block grant program. González sought to have Puerto Rico participate in SNAP (what the U.S. states, D.C., Guam and the US Virgin Islands have for nutritional assistance) rather than NAP, with its cap and more stringent eligibility requirements.

Program administration

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), a component of the USDA, provides the funds to the

Government of Puerto Rico The government of Puerto Rico is a republican form of government with separation of powers, subject to the jurisdiction and sovereignty of the United States.Department of Family Affairs to operate the program through an annual block grant, which covers the full cost of the benefits to participants, as well as fifty percent (50%) of the costs required to administer the program (the remaining 50% must be provided by the government of Puerto Rico).OMB A-133 Comp. Suppl., p. 4-10.566-1, par. 2. Code of Federal Regulations, Title 7, section 285.2(a). Although federal regulations require Puerto Rico to pay the benefits during the year for which the annual block grant was awarded, since 2002 the federal government has allowed Puerto Rico to use 2% of an annual surplus for benefits in future years.OMB A-133 Comp. Suppl., p. 4-10.566-4, Sec. H: Per. of Avail., par. 2. As a condition of receiving the grant, the P.R. Department of the Family must submit an annual plan of operation to the FNS, which describes how it will distribute the funds assigned as nutrition assistance to qualifying persons. This includes identifying the island population which is eligible for the NAP benefits (i.e., family income limits, family status limits, etc.), establishing the process in which individual participants are selected, and the process of determining the benefit amount for each participant.OMB A-133 Comp. Suppl., p. 4-10.566-1, par. 3. The plan of operation is reviewed and approved by the FNS before funds are disbursed. The Puerto Rico Department of the Family currently provides the benefits to each participating family through a debit card, which replaced the physical checks in the early 2000s. The monthly benefit is deposited through an electronic benefit transfer (EBT) system into a government-designated personal bank account, which can be accessed at any time with the debit card to withdraw cash or to make food purchases from authorized retailers.OMB A-133 Comp. Suppl., p. 4-10.566-1, par. 4–5. Since September 2001, 75% of each family's monthly benefit has been designated exclusively for making direct food and grocery purchases, while the remaining 25% can be withdrawn as a cash benefit. The EBT debit card system has improved the program's payment accuracy rate to 96.4% in 2003, 4 years ahead of its 2007 goal of 95% accuracy. The FNS also requires the government of Puerto Rico to submit financial and performance reports on a regular basis, including quarterly Federal Cash Transactions Reports, quarterly and annual Financial Status Reports, and monthly Program Participation and Benefits Reports.OMB A-133 Comp. Suppl., p. 4-10.566-4, Sec. L: Reporting.OMB NAP assessment detail
, Sec. 3, Question 3.BF2. These reports provide details on the program's obligations and actual expenditures, and help the FNS monitor the use of program funds and reconcile the program's budget with actual expenditures.
, Question 3.BF1.

Management assessment

In a collaborative effort by the United States

Office of Management and Budget The Office of Management and Budget (OMB) is the largest office within the Executive Office of the President of the United States (EOP). OMB's most prominent function is to produce the president's budget, but it also examines agency programs, pol ...

(OMB) and various other Federal agencies, the NAP program was assessed in 2005 and given a 44% and 40% score (out of a possible 100%) in its Program Management and Program Results/Accountability performance indicators, respectively, stating that "the program's financial management practices need improvement."OMB NAP assessment summary
. The assessment revealed that Puerto Rico's government has not established short-term goals, objectives, and targets to evaluate the program's performance and results, that the program's oversight has been lax in previous years, and that the program's impact and results in Puerto Rico's society have not been evaluated in recent years.
. ; Questions 3.1, 3.7, and 4.5. The financial management and oversight concerns were later emphasized when, on March 15, 2007, a U.S. investigative task force uncovered a $30 million fraud scheme involving 31 participants, including retailers and beneficiaries, who were withdrawing the funds as cash from the benefits designated exclusively for food purchases, and charging the customers a 20% to 25% fee for the transaction.''$30 Million Fraud Scheme in Puerto Rico'', U.S. Dept. of Justice. The Puerto Rico departments of the Family,

Education Education is a purposeful activity directed at achieving certain aims, such as transmitting knowledge or fostering skills and character traits. These aims may include the development of understanding, rationality, kindness, and honesty ...

, and

Health Health, according to the World Health Organization, is "a state of complete physical, mental and social well-being and not merely the absence of disease and infirmity".World Health Organization. (2006)''Constitution of the World Health Organiza ...

have since combined efforts to create a 5-year strategic plan to improve the program's long-term performance and financial management. The Family Department has recently implemented a quality control-like program titled Measure of Efforts and Results System, which evaluates the quality and promptitude of services while reviewing various eligibility elements, to improve customer services and program management.OMB NAP assessment detail
, Questions 3.1, 3.2, 3.4 and 3.7. The Department has also agreed to switch from a biennial audit to an annual

Single Audit In the United States, the Single Audit, Subpart F of the OMB Uniform Guidance, is a rigorous, organization-wide audit or examination of an entity that expends $750,000 or more of federal assistance (commonly known as federal funds, federal grants, ...

, and subject the program to periodic audits by its Administration for Socio-Economic Development, to detect and correct problems more quickly. Furthermore, the USDA's Office of Inspector General (OIG) has performed regular audits to assure compliance and identify areas for improvement. Regardless of deficiencies, the federal government's assessment revealed that the current NAP program is actually an improvement over the former Food Stamp program provided in Puerto Rico. In its 2005 assessment report, it concluded:

Program benefits

Under the NAP, participating families receive monthly cash benefits to supplement their incomes which must be used at locations certified by the government, to purchase foods for preparation and consumption at home.OMB A-133 Comp. Suppl., p. 4-10.566-1, par. 4. In order to qualify for the program, potential beneficiaries must meet several conditions, listed as follows:Benefits Report
, GovBenefits.gov. * be living in Puerto Rico * maintain a maximum bank balance (all checking and savings accounts combined) of: ** $2,000 if responsible for one or more persons age 60 or younger, or ** $3,000 if responsible for one or more persons age 61 or older and * have an annual household income that does not exceed the predefined income limits set by the Puerto Rico government The amount of a family's monthly benefit payment depends on that family's specific characteristics and financial circumstances, as well as the overall amount of program funds available for distribution. It is the Puerto Rico government's responsibility to establish the eligibility requirements and benefit levels for participation in the program. The benefits are revised annually every October 1 to consider the nutritional needs of Puerto Rico's impoverished population, analyze the impact of inflation in Puerto Rico, and plan the distribution of available funds accordingly.

Impact

Since the program started in 1982, only three formal studies over the nutritional impact of the benefits provided to each family have been publicly released, in 1985, 1993, and 1996, respectively.FANRR-19-3, Chapter 11, p. 287. All studies were designed to analyze the impact of the program with respect to the previous food stamps program, focusing on changes in household nutrient availability, while the 1985 and 1993 studies also focused on changes in household food expenditures (the amount of money households spent on acquiring food).FANRR-19-3, Chapter 11, p. 288. The first and most widely recognized study,FANRR-19-3, Chapter 11, p. 287, par. 2. published by Mathematica Policy Research, Inc. in 1985, found that the NAP program increased household food expenditures for beneficiaries when compared to non-participating families, just as its predecessor did. It also found that the program had the same relevant impact on increasing household food expenditures as the previous food stamp program,FANRR-19-3, Chapter 11, p. 289, par. 1. however this has been contested by subsequent studies performed on the national food stamp program, which found that "stamp" or "coupon"-type benefits are more effective at increasing food expenditures than direct "cash" benefits.FANRR-19-3, Chapter 11, p. 289, par. 2. The 1993 study, which also researched the impact on household expenditures, formed a completely different conclusion: that the average beneficiaries under the NAP program spent $5 less per week on food than non-participating families, considering if both would have the same amount of resources available. Nevertheless, this conclusion has also been questioned by subsequent research, attributing this result on the author's determination of the population sample.FANRR-19-3, Chapter 11, p. 289, par. 4–5. All studies revealed minor improvements in household nutrient availability, with the 1985 study revealing an improvement of

vitamin A vitamin is an organic molecule (or a set of molecules closely related chemically, i.e. vitamers) that is an essential micronutrient that an organism needs in small quantities for the proper functioning of its metabolism. Essential nutrie ...

and

mineral In geology and mineralogy, a mineral or mineral species is, broadly speaking, a solid chemical compound with a fairly well-defined chemical composition and a specific crystal structure that occurs naturally in pure form.John P. Rafferty, ed. (2 ...

consumption over non-participating families and the 1993 study partially confirming these results.FANRR-19-3, Chapter 11, p. 290, par. 2 and 7. The most extensive study on nutrient availability was published in 1996, which concluded that nutrition did not change significantly after the implementation of the NAP program for all beneficiaries, however most improvements were noted for very low-income beneficiaries versus their non-participating equivalents.FANRR-19-3, Chapter 11, p. 290, par. 5–6. Although these three studies have been used by the federal government and other entities to understand the impact of the NAP program's benefits, the data used by the authors dates back to the periods between 1977 and 1984, providing limited relevant information for the current program of today.FANRR-19-3, Chapter 11, p. 287, par. 3–4. Additionally, subsequent research and analysis have revealed insufficiencies in the methodology applied by the authors of all three publications, thereby casting doubt on whether a definitive conclusion of the program's overall impact has been established.FANRR-19-3, Chapter 11, p. 290, par. 8 and p. 291. A 2004 report published by USDA's Economic Research Service evaluated the reliability and relevancy of these studies, concluding that they are not sufficient to determine the program's current impact and performance, and stating:

References

External links

Puerto Rico Government homepage

USDA homepage

Office of Analysis, Nutrition and Evaluation
of the USDA

USDA
Benefits.gov Benefits Report
on Nutrition Assistance for Puerto Rico {{DEFAULTSORT:Nutrition Assistance For Puerto Rico Federal assistance in the United States United States Department of Agriculture Welfare in Puerto Rico 1982 in Puerto Rico