Proposed Revisions for the Supplemental Nutrition Assistance Program (SNAP)

Lisa PinoDeputy Administrator of the Supplemental Nutrition Assistance ProgramUnited States Department of Agriculture

For the upcoming 2012 Fiscal Year

A Brief History of the Food Stamp Program in America

• The First Food Stamp Program (FSP) - May 16, 1939-Spring 1943: Started in response to the mass food surpluses and widespread unemployment that was caused by the Great Depression.

• Food Stamp Act of 1964 - August 31, 1964: The Food stamp program was made permanent by President Johnson.

• The Food Stamp Act of 1977 : There was concern about the cost of providing the program.

• Cutbacks of the Early 1980s : The large and expensive FSP came under close scrutiny of both the Executive Branch and Congress in the early 1980s.

• The Mid- to Late 1980s: Recognition of the severe domestic hunger problem in the latter half of the 1980s led to incremental improvements in the Food Stamp Program.

The Food Stamp Program as we know it Today

Development of Electronic Benefit Transfer (EBT): 1988-2004:

• What is EBT?Electronic Benefit Transfer (EBT) is an electronic system that allows a recipient to authorize transfer of their government benefits from a Federal account to a retailer account to pay for products received.

• EBT eliminates the cumbersome processes required by the paper food stamp system. By eliminating paper coupons which could be lost, sold or stolen, EBT may help cut back on food stamp fraud.

• By August 2008, participation had reached an all-time (non-disaster) high of 29 million people per month.

• Renamed the Supplemental Nutrition Assistance Program in 2008.

Supplemental Nutrition Assistance Program Participation and Costs (Data as of

March 31, 2011)

• The number of Americans receiving food stamps reached 43 million in November 2010 an almost 48% increase in 2 years.

• Participation rose 21,000,000 in an 8 year span.• Causing the government to use 48 billion more annually in assistance.

Eligibility for Assistance

• Resources: Households may have $2,000 in countable resources, such as a bank account, or $3000 in countable resources if at least one person is age 60 or older, or is disabled.

• Income: Households have to meet income tests unless all members are receiving TANF (Temporary Assistance for Needy Families), SSI (Supplemental Security Income) , or in some places general assistance.

Eligibility for Assistance

• Benefits: The net monthly income of the household is multiplied by .3, and the result is subtracted from the maximum allotment for the household size to find the household's allotment (this is because SNAP households are expected to spend about 30 percent of their resources on food).

• Employment Requirements: With some exceptions, able-bodied adults between 16 and 60 must register for work, accept suitable employment, and take part in an employment and training program to which they are referred by the local office.

Quick Overview of Eligible Food Items

• Foods for the household to eat, such as: – breads and cereals – fruits and vegetables– meats, fish and poultry – dairy products– Seeds and plants which produce food for the household to eat.

• Not included:– Beer, wine, liquor, cigarettes or tobacco– Any nonfood items– Vitamins and medicines– Hot foods– Foods that can be eaten in the store

• Energy drinks that have a nutrition facts label are eligible foods. Energy drinks that have a supplement facts label are classified by the FDA as supplements, and are therefore not eligible.

• Edible special occasion items are eligible. Yet, if they contain non edible items that make up 50% of the price, they are not eligible.

Ideas for Revision to Help Cut Costs

• Integrity tests assess attitudes and experiences related to a persons honesty, dependability, trustworthiness, reliability, and pro-social behavior.

• Implementation of lie detector tests at the end of trimesters during the year to see if they have been using their cards and money wisely.

• Have drug tests for every adult in the household or for the main person who the SNAP account is under. These would be applied randomly at least 4 times a year. Include all testable drugs out on the streets.

• Subject the card holder under undercover integrity test.

• Have households fill out budgets so the Food and Nutrition Service know what appropriations of what money are going to what services.

• Background checks. Prior history checks. Penal system checks. Implement regulations on people newly out of jail or people who are on probation.

1. Implementation of more integrity tests:

2. SNAP be sponsored by large companies or wealthy people.

Ideas for Revision to Help Cut Costs

• With this we could have these companies take up a portion of the SNAP members and they could contribute to the amount of money allotted to that group of people.

• Yet the companies or wealthy sponsors wouldn't be reimbursed for the money they spend on these people.

Tax deductible option. • The card holders would be notified about their sponsors. Each would get a little card telling the person about what cooperation or person is their sponsor and a little bit about them or their company.

• In response to this, the companies or the wealthy people now have a right to send the card holders that they sponsor products or advertisements that the sponsored can display at the benefit of the sponsor.

3. Amend where and what food items can be purchased:

Ideas for Revision to Help Cut Costs

• There should be restrictions put on food that can be bought. Shouldn't be able to by non healthy foods that contribute to America's sloth like culture.

• Only healthy foods that can be cooked. Perishables, fresh food, raw food and ingredients that can produce whole meals and not already ready to eat food that only requires some preparation.

• All surplus stores should be approved for cooperation in the SNAP program. Therefore card holders can go and buy their food in bulk.

• Local farms should be approved with the Department of Agriculture so that card holders can go to the farms and pick out fresh and/ or organic food.

• Retailers should be expanded from just convenience stores to mom and pop stores that offer a different array of goods and services.

Ideas for Revision to Help Cut Costs

4. SNAP categories/ classes with a need based ranking system

• Rank the needs of card holders in 3 classes/categories:

• Breakfast: Households with children and/ or elderly/ disabled people. These households may or may not have card holders that are employed.

• Dinner: Households with children whose card holder is employed yet doesn't have enough money to pay for all expenses.

• Lunch: Single household people with no dependents. These people must have jobs or be actively searching for employment.

If one is unemployed yet receiving unemployment benefits, they should be given the option on whether or not they would like some SNAP benefits to come out of their unemployment benefits.

• http://www.forbes.com/lists/2010/10/billionaires-2010_The-Worlds-Billionaires_Rank.html

• http://money.cnn.com/magazines/fortune/global500/2010/

• http://www.fns.usda.gov

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