Issue: Food Stamps (SNAP)

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Issue Summary

The Food Stamp program (Supplemental Nutrition Assistance Program or SNAP) provides a monthly allowance of $134 per person to a low-income household to purchase food.1 Eligibility for the program has greatly expanded since its inception in 1964 as an outlet for surplus agricultural products — and has exploded over the last four years. It is now the fourth largest means-tested program for low income individuals, just behind Medicaid, the Earned Income Tax Credit (EITC), and the Supplemental Security Income (SSI) program. In 2011, one in every seven Americans was dependent on food stamp benefits and the number is continuing to grow at a rapid rate.2

Dependence on food stamps has now more than doubled since President Obama took office in 2009. In just the first three years of his administration, the federal government increased spending on the program by 107 percent, from $37.6 billion in FY 2008 to $71.8 billion for SNAP benefits in FY2011.3 The increase in spending coincided with a 58 percent increase in the actual number of individuals, and a 66 percent increase in the number of families, that received Food Stamps — from 28.2 million recipients in almost 13 million households in FY2008 to almost 44.7 million individuals in 21.1 million households in FY2011.4

The Administration's FY2013 Budget (submitted in February, 2012) reported that total federal government spending on Food Stamps, after including administrative costs, had risen to $77.6 billion in FY2011 (a 98 percent increase from FY2008)5 and estimated spending would balloon to $85.2 billion for FY2012 (a 120 percent increase over FY2008.) OMB also reported that between 2008 and 2012, the average SNAP/Food Stamp monthly benefit per individual had grown by over 30 percent — from $102.19 to $133.42.6

There are a variety of other federal food assistance programs, including the Special Supplemental Food Program for Women, Infants and Children (WIC) (increased 10 percent from 2008 to 2011);7 the Emergency Food Assistance Program (TEFAP) (increased 26 percent from 2008 to 2010);8 and the School Lunch program (23.4 percent increase from 2008 to 2010).9 The Food Distribution Program on Indian Reservations and separate nutrition assistance grants for Puerto Rico, American Samoa, and the Northern Marianas added another $2.75 billion in federal spending in FY2011.10

The last few years have seen unprecedented legislative and regulatory expansions in the cost and scope of SNAP. The American Recovery and Reinvestment Act of 2009 (ARRA) and other regulatory and administrative directives have substantially increased the average household SNAP benefit by 13.6 percent11 and expanded eligibility for the program by: eliminating the 3-month time limit on benefits for able-bodied adults without children; increasing the household income dollar limits on eligibility;) increasing income disregards (such as disregarding all refundable tax credit amounts from income for determining applicants' eligibility; and increasing official asset limits for eligibility purposes from $2,000-$3,000 in most states to a uniform federal limit of $10,000 — while at the same time administratively allowing most states to eliminate any asset limit whatsoever.12

Eligibility was also broadened by giving states greater discretion to skip the federal requirement for face-to-face interviews to determine initial eligibility and for recertification of a current recipient's eligibility. In addition, states are being encouraged (and most have agreed) to use so-called "Broad-Based Categorical Eligibility" authority to automatically qualify any household if it has received any assistance from the Temporary Assistance to Needy Families (TANF) program — EVEN if that assistance is the mere receipt of an informational pamphlet or a referral to an 800 information number. As a result, according to the Congressional Research Service, the changes in eligibility over the last few years "effectively allow states to make virtually any household eligible for the SNAP [program.]".13

In fact, a man who won $2 million from the Michigan lottery has maintained his eligibility for Food Stamps even after receiving his new found wealth. The income he receives from investing the remaining money (after purchasing an expensive home, car, and investing in other assets) still leaves him eligible under federal rules for Food Stamps. Michigan has been working with federal officials for some time to find a way to close the loophole. "We are actively seeking a change to the food assistance policy, which is a federal policy, to ensure that those who are truly needy qualify," stated a state human services department spokeswoman.14

Yet another man, also in Michigan, was able to buy six lobsters, two porterhouse steaks, and five 24-packs of Mountain Dew worth $141.78 using a Food Stamp program debit (EBT) card. A citizen who found the receipt showing such an extravagant purchase using Food Stamp benefits turned it in to the Michigan Department of Human Services which tracked the man down. He was later arrested for having resold the food for 50 cents on the dollar — BUT the initial purchase violated no Food Stamp program rules. According to the Michigan DHS spokeswoman: "While federal guidelines allow for food assistance to be used to buy [lobster, steak and Mountain Dew,] these purchases go against the intent of the program, which is to provide help to those who are truly needy."15

What Would Reagan Do?

President-elect Reagan, as part of the transition process from the Carter administration, approved the following recommendation regarding the federal Food Stamp program for the poor:

"That a comprehensive nutritional block grant program be proposed to replace the 13 individual categorical USDA programs. That the program be administered by the states under broad federal guidelines with limited planning and reporting requirements."

Issue History

The Food Stamp program began during the Great Depression as a means to distribute surplus agricultural production to the needy. In 1964, it became a permanent fixture in the federal budget with the passage and signing of the Food Stamp Act. Originally, states set their own eligibility rules and thus benefits varied by region, but in general — after meeting requirements for initial food purchases of their own — qualifying families were provided food stamps to buy what the Department of Agriculture deemed the "economy diet."

In 1971, the program was expanded and nationalized and the initial food purchase requirement was eliminated. Over time, automatic Food Stamp eligibility for recipients of welfare cash assistance [Aid to Dependent Families with Children (AFDC) program then, now the Temporary Assistance for Needy Families (TANF) program], SSI, and Medicaid were added as well as some restrictions on participation by able-bodied adults. In 2008, the Food Stamp program was renamed the Supplemental Nutrition Assistance Program (SNAP) — ostensibly to alleviate the discomfort endured by recipients from the stigma that the term "Food Stamps" had gained over several decades.

Again, the Food Stamp program has seen unprecedented growth since 2008, with benefit rolls increasing from an average of 28.2 million recipients to 44.7 million recipients a month in FY 2011 — a 58 percent increase. And the dollar value of the Food Stamps that have actually been issued has grown 107 percent — from $34.6 billion in 2008 to $71.8 billion in 2011.16

PROPOSED NUTRITION ASSISTANCE BLOCK GRANT

The Carleson Center Welfare Reform Action Fund's (WRAF) sister organization — the 501(c)(3) Carleson Center for Welfare Reform (CCWR) — identified numerous federal nutrition assistance programs that combined would create a consolidated block grant to the states to provide nutrition assistance to targeted low-income populations.

While the Food Stamp (SNAP) program is the paramount federal nutrition program, the CCWR's review identified several other ancillary programs that should be combined with SNAP in a consolidated nutrition-based block grant program.

Among the additional programs identified were formula grants to states and localities to provide supplemental nutrition to low-income pregnant/postpartum women, infants and children, and project grants that provide money to encourage healthy eating habits, and that cover costs associated with making donated food available.

A total of 24 programs comprise the CCWR's block grant as recommended and together they cost over $96 billion at the federal level in FY2011 — not counting the federal government's administrative costs for the programs.

An informed government policy to protect the nation's safety net should begin by reining in the welfare state through a time-tested approach — cutting spending on those who are NOT really in need. Thirty years ago, Ronald Reagan approved a blueprint to end welfare dependency not just for the benefit of federal and state taxpayers, but for the long-term benefit of welfare recipients themselves. The time was not right then. The time must be right now.

The CCWR report proposes an achievable, common-sense plan — and model legislation to enact it — to end the hopeless bureaucratic overlap and fiscal abuse plaguing our nation's welfare spending; assure that limited taxpayer funding is directed to benefit the truly needy; and permanently reduce the size and influence of the federal welfare bureaucracy. The WRAF is working to urge Congress to approve this and the CCWR report's recommendations to block grant 6 other categories of welfare programs to the states as well.

TABLE OF NUTRITION ASSISTANCE BLOCK GRANT PROGRAMS

CFDA#

Program Name

2008

2011

Change from 2008-2011

10.551

Supplemental Nutrition Assistance Program

$37,456,100,041

$71,765,696,186

$34,309,596,145

10.555

National School Lunch Program

$8,097,726,000

$10,320,844,000

$2,223,118,000

10.557

Special Supplemental Nutrition Program for Women, Infants, and Children

$6,006,400,000

$7,123,458,000

$1,117,058,000

10.553

School Breakfast Program

$2,393,028,000

$3,075,846,000

$682,818,000

10.558

Child and Adult Care Food Program

$139,715,100

$2,732,119,000

$2,592,403,900

10.559

Summer Food Service Program for Children

$312,203,000

$376,829,000

$64,626,000

10.569

Emergency Food Assistance Program (Food Commodities)

$189,935,658

$228,400,000

$38,464,342

10.560

State Administrative Expenses for Child Nutrition

$174,134,000

$208,646,000

$34,512,000

10.565

Commodity Supplemental Food Program

$140,806,821

$196,444,000

$55,637,179

10.578

WIC Grants To States (WGS)

$8,257,616

$175,022,690

$166,765,074

10.582

Fresh Fruit and Vegetable Program

$40,000,000

$115,481,000

$75,481,000

10.568

Emergency Food Assistance Program (Administrative Costs)

$49,650,000

$70,300,000

$20,650,000

10.579

Child Nutrition Discretionary Grants Limited Availability

$3,206,404

$29,821,000

$26,614,596

10.572

WIC Farmers' Market Nutrition Program (FMNP)

$19,860,000

$23,282,876

$3,422,876

10.576

Senior Farmers Market Nutrition Program

$206,000,000

$22,102,289

-$183,897,711

10.556

Special Milk Program for Children

$15,120,000

$12,381,000

-$2,739,000

10.583

Hunger Free Communities

$0

$4,978,000

$4,978,000

10.225

Community Food Projects

$4,800,000

$4,800,000

$0

10.577

SNAP Partnership Grant

$0

$2,500,000

$2,500,000

10.316

Healthy Urban Food Enterprise Development Center (HUFED)

$0

$900,000

$900,000

10.588

Assessment of Alternatives to Face-to-Face Interviews in SNAP

$0

$492,181

$492,181

10.575

Farm to School Grant Program

$0

$0

$0

10.584

SNAP Research Grants

$0

$0

$0

10.589

Child Nutrition Direct Certification Performance Awards

$0

$0

$0

Total

$55,256,942,640

$96,490,343,222

$41,233,400,582

  1. USDA, Supplemental Nutrition Assistance Program Participation and Costs Summary Table, (U.S. Department of Agriculture, Data as of November 9, 2012). http://www.fns.usda.gov/pd/SNAPsummary.htm.
  2. CBO, "An Overview of the Supplemental Nutrition Assistance Program," prepared by Kathleen FitzGerald, Emily Holcombe, Molly Dahl, and Jonathan Schwabish (Congressional Budget Office, April 19, 2012). http://www.cbo.gov/publication/43175
  3. USDA, Supplemental Nutrition Assistance Program Participation and Costs Summary Table, (U.S. Department of Agriculture, Data as of November 9, 2012). http://www.fns.usda.gov/pd/SNAPsummary.htm.
  4. USDA, Supplemental Nutrition Assistance Program: Average Monthly Participation (Households) Table, (U.S. Department of Agriculture, Data as of November 9, 2012). http://www.fns.usda.gov/pd/16SNAPpartHH.htm
  5. OMB, FY2012 Budget of the U.S. Government, Historical Tables pages 247-248. http://www.whitehouse.gov/sites/default/files/omb/budget/fy2013/assets/hist.pdf
  6. USDA, Supplemental Nutrition Assistance Program Participation and Costs Summary Table, (U.S. Department of Agriculture, Data as of November 9, 2012). http://www.fns.usda.gov/pd/SNAPsummary.htm.
  7. OMB, FY2012 Budget of the U.S. Government, Historical Tables pages 247-248. http://www.whitehouse.gov/sites/default/files/omb/budget/fy2013/assets/hist.pdf
  8. Fiscal Year 2013 Appendix; Budget of the U.S. Government; Office of Management and Budget; page 177; http://www.whitehouse.gov/sites/default/files/omb/budget/fy2013/assets/appendix.pdf
  9. Department of Agriculture; 2010 Budget Appendix; page 178; http://www.gpo.gov/fdsys/pkg/BUDGET-2010-APP/pdf/BUDGET-2010-APP-1-5.pdf
  10. Ibid, p. 176.
  11. CBO, The Supplemental Nutrition Assistance Program (Washington, DC: Congressional Budget Office, April 2012), p. 5. http://www.cbo.gov/sites/default/files/cbofiles/attachments/04-19-SNAP.pdf
  12. The Federal Response to Calls for Increased Aid from USDA's Food Assistance Program (CRS R41076); Richardson, Joe; February 17, 2010; pg 3; http://www.nationalaglawcenter.org/assets/crs/R41076.pdf
  13. Ibid, p. 3.
  14. Michigan $2 million lottery winner on food stamps, Reuters, May 18, 2011.
  15. Schneider: Felony charge filed in lobster steak Bridge Card case, Lansing State Journal, June 7, 2011.
  16. Supplemental Nutrition Assistance Program: Average Monthly Participation (Persons); http://www.fns.usda.gov/pd/15SNAPpartPP.htm
  17. "Securing the Safety Net," a report by The Carleson Center for Welfare Reform (January, 2013). http://theccwr.org/