Food Stamp Program

Food Stamps

• The cornerstone of food assistance in the US

• The only form of assistance available nationwide to all households on the basis only of financial need, irrespective of family type, age, or disability

• Entitlement program

Food Stamps

• Administered by USDA

• Purpose is to improve the diets of low-income households by increasing their purchasing power

History of Food Stamps

• 1961 Pilot projects funded in 8 states

• 1964 Program funded nationally

• 1974 Program mandated nation-wide

• 1977 Purchase requirement dropped

• 1984 First electronic benefit transfer

• 1993 First EBT statewide--MD

History of Food Stamps, con’t

• 1996 Welfare reform added work requirement and limited length of participation

• 2002 All states mandated to have EBT system in place

Electronic Benefit Transfer

• Preliminary studies indicate reduced costs to government, retailers, and recipients.

• Reduces fraud and trafficking by providing an electronic audit trail.

• Provides greater security and less embarrassment for recipients.

Food Stamp Eligibility

• Gross income 130% of poverty status and net income 100% of poverty status.

• Elderly and disabled must meet net income requirements only.

• Liquid and nonliquid assets must be below a specified level and unemployed persons must be registered with the unemployment office

Food Stamp Eligibility (con’t)

• Eligibility is based on households--people who buy and prepare food together

Work Requirements

• Welfare reform legislation requirements:

• Able-bodied recipients 18-50 years old with no dependents are ineligible for food stamps unless they meet work requirements.

• May receive food stamps for only three months in every 36-month period unless they are engaged in work or work programs

Work Requirements (con’t)

• States may request waivers of this provision for areas with an unemployment rate above 10% or for those residing in an area that does not have a sufficient number of jobs to provide employment for the individuals

Food Stamp Benefits

• Certificates or EBT cards to purchase food at grocery stores and vegetable seeds and plants.

• Certificates may also be used in Nutrition Program for the Elderly centers, shelters for battered women, and drug and alcohol treatment programs

• Some persons in Alaska are allowed to purchase hunting/fishing equipment.

Amount of Benefits

• Based on household size and income.

• The allotment is reduced by 30% of the household net income. The average monthly food stamp allotment/person is slightly over 50% of the maximum allowed.

Benefits (con’t)

• Maximum food stamp allotments are based on the cost of the Thrifty Food Plan.

• Family of four maximum benefit $400/mo. Average benefit was $68/person in 1993.

• Food stamp benefits average about $0.57 per meal--the maximum benefit is about $0.90 per meal.

USDA Food Plans

• Four food plans--Thrifty, Low-cost, Moderate-cost, Liberal

• Based on size of household and age and gender of members--see table 8-4, p 203 Frankle/Owen

• For family of four with 2 preschoolers cost varies from $72.50 - 135.90/week.

What Are USDA Food Plans?

• Amounts of foods from different food groups that households can use to provide nutritious diets at varying costs.

• At each cost level, amounts of foods for men, women, and children of different ages are suggested.

• 31 food groups for 11 gender-age categories are used to create totals for individual households

Basis for Food Plans

• RDA

• Food Consumption Surveys

• Costs based on monthly surveys of various cities

Evaluation of Food Stamps

• Nationally, food stamp users purchase more nutrient-dense foods than non-users.

• Food stamp users spend more money on food than persons of same economic level who do not use food stamps.

• In 1993, 27 million of the 50 million persons eligible for food stamps participated in the program.

Food Stamps: View of the Recipients

• Program is inadequate because it fails to provide an adequate amount of assistance to avert food shortages throughout the month.

• There are significant psychological difficulties in using food stamps as a result of the overall stigma attached to the program

Food Stamps: Views of Policy Analysts

• Program’s objective of reducing hunger is compromised since it fails to reach approximately 40-50% of eligible population.

• Rural residents and older persons are less likely to participate than others.

Food Stamps: Views of the Public

• Regarded as severely flawed because it is perceived as violating several important American values--independence, self-reliance, ability to achieve the “American dream”

• Encourages dependence and abuse

Sources used in presentation

• Frankle/Owen. Nutrition in the community. Mosby.

• Boyle/Morris. Community nutrition in action. West Publishing.

• Obert. Community nutrition. John Wiley and sons. 1986.

• Maurer and Sobal. Eating Agendas. Walter de Gruyter Publisher, New York, NY, 1995.

Sources (con’t)

• Senauer, Asp, Kinsey. Food trends and the changing consumer. Eagen Press. St. Paul. 1993.

• Testimonies of Ellen Haas and William Ludwig to the Senate Subcommittee on Agriculture, Rural Development, and Related Agencies. May 10, 1995.

• Food Stamp Program Fact Sheet, www.usda.gov/fcs/library/961101-3.txt

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