Supplemental Nutrition Assistance Program (Food Stamps)

The Farm Bill that was passed in 2008 renamed the Food Stamp Program. It is now called the Supplemental Nutrition Assistance Program (SNAP). In fact, electronic benefits transfer is now in universal use, so there are no longer any stamps. Unfortunately, with the current budget negotiations taking place SNAP is at risk of being cut. These cuts would take away from SNAP benefits, as well as restricting the eligibility for the program. If turned into a block grant, SNAP would be less able to respond during economic downturns and states would be able to move funds from SNAP to other programs during budget shortfalls.

SNAP is the nation’s basic safety net against hunger. On September 7, 2011, the U.S. Department of Agriculture released its annual report about food security in the U.S. In 2010, 17.2 million U.S. households were designated food insecure, meaning that last year they had difficulty putting food on the table. Its goal is to alleviate hunger and malnutrition by permitting low-income households to obtain a more nutritious diet. Because this is a federal entitlement program, all those who qualify for benefits should receive them. SNAP provides a monthly benefit amount to eligible low-income families that can be used to purchase food. Eligibility for SNAP is based on household income and assets. Many able-bodied, childless, unemployed adults have time limits on their receipt of food stamp benefits. Overall, 49 percent of all participants are children (18 or younger), 52 percent of SNAP households include children and 76 percent of all benefits go to households with children. In addition, one-third of SNAP participants live in households with senior citizens or people with disabilities. 

Broadening participation in SNAP and ensuring that benefits are adequate are vital to ending hunger. One in eight Americans, a record 42.9 million people received SNAP in September 2010, up from only 16.8 million individuals in June 2000.  The American Recovery and Reinvestment Act (ARRA, H.R.1), passed by Congress in February 2009, includes $20 billion to temporarily increase SNAP benefits by 14 percent. In fact, investments in SNAP are a very effective economic stimulator; the U.S. Department of Agriculture's Economic Research Service (ERS) finds that each dollar of federal SNAP benefits generates $1.79 in economic activity, while Mark Zandi from Moody's Economy has estimated that figure at $1.84. In addition, the U.S. Department of Agriculture estimates that between 8,900 and 17,900 full time jobs are created for every $1 billion in food stamps. Unfortunately, the ARRA boost to SNAP was reduced to pay for assistance to states for Medicaid programs in August 2010 and Child Nutrition in December 2010.  SNAP is working as a critical safety net; the Census Bureau, using an alternative calculation of poverty, found that SNAP lifted 3.9 million above the poverty line in 2010.

Benefits, Eligibility, and Participant Profiles

According to the USDA, the current SNAP benefit averages about $1 per meal per individual. Benefits may be used to buy only food items generally for consumption in the home; alcohol, tobacco, and non-food household items are excluded. Eligibility for SNAP is determined by household. In order to qualify, households, with a few exceptions, must have a gross income below 130 percent of the federal poverty line. They also cannot possess more than $2,000 in assets ($3,000 for households with a disabled or elderly member).

Eighty-six percent of SNAP households have income below the poverty line ($22,350 for a family of four in 2011) and more than one-third of Food Stamp households have income below half of the poverty line, according to The Food Research and Action Center (FRAC). Over half of all food stamp recipients are children. SNAP benefits also serve a crucial role for low-income workers and homeless persons.

Seventy-one percent of those participating in the program receive food stamps for two years or less. Half of all new recipients stay on the program no more than six months and 57 percent end participation within one year. Receiving food stamps increases the nutritional value of a low-income household’s home food supplies by 20 to 40 percent. SNAP households participating in the program, on average, spend more on food and acquire more food than low-income non-participating households, according to the Food Research and Action Center.

SNAP at Risk in Budget Negotiations

House Budget Committee Chairman Paul Ryan (R-WI-1) proposes to radically alter SNAP. As part of his FY 2012 budget, SNAP would funding would first be cut by $127 billion over the next ten years. This would force millions of people out of the program and/or a significant reduction in benefits, which are already low (about $1.30 per meal per person). Far worse, Ryan would then convert SNAP into a block grant program, i.e. a fixed lump sum amount given to states. This change would allow states to adjust eligibility and benefits as they see fit while undermining the current system that is both effective in reaching those in need and cutting fraud, waste, and abuse. Cuts to SNAP would make it harder for families to pull themselves out of poverty and deep poverty. Benefits would run out sooner still recieving SNAP, adding additional financial strain to low-income households. Many households would be cut from the SNAP program; some estimates state that over 8 million people would need to be cut to reach the desired savings. With this budget plan, the risk of hunger would be substansially increased.

As deficit reduction battles continue, we are pleased that the Budget Control Act protects mandatory programs that serve low-income Americans, such as Medicaid, SNAP, and the Earned Income Tax Credit from across-the-board cuts (which would be triggered if the Super Committee fails). Unfortunately, no such exemption exists for the Super Committee itself, which means they can cut whatever they want. Congress has a long tradition making sure deficit reduction does not increase poverty by protecting low-income programs from automatic budget cuts. We urge the Super Committee to continue this tradition by protecting these programs in their negotiations. We also urge them to reject structural changes to Medicaid and SNAP, such as block grants, which will hurt millions of vulnerable Americans. 

SNAP must be reauthorized as part of the next Farm Bill; the current Farm Bill will expire in 2012. However, this year, SNAP's future will likely come up as part of congressional efforts as deficit reduction.

Program Responsiveness and Effectiveness

No other federal program except unemployment insurance responds better to changing economic conditions than SNAP. This was especially evident in the aftermath of Hurricane Katrina. In the weeks following the disaster, the program gave over $500 million in food assistance to more than 1.2 million Katrina survivors, without the need for congressional action. Overall, the program was able to accommodate the increase in over 4 million participants between August and November of 2005. SNAP is seen as one of the few successes in federal responsiveness during the 2005 hurricanes.

During the economic crisis, SNAP was able to respond and keep families out of a state of food insecurity. As mentioned above, SNAP lifted 3.9 million above the poverty line in 2010.