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FNS-07-2003

Jean Daniel (703) 305-2286

NEW STUDIES DOCUMENT FOOD STAMP IMPROVEMENTS

WASHINGTON, July 24, 2003 - Three U.S. Department of Agriculture reports released today show improvements in the Food Stamp Program that support the Administration’s goals to improve program access for low-income households and improve program integrity.

“Ensuring that all eligible, low-income families receive the nutrition assistance they need is a top priority for the Bush Administration,” USDA Under Secretary for Food, Nutrition and Consumer Services Eric M. Bost said during testimony on the food stamp program before the House Subcommittee on Department Operations, Oversight, Nutrition and Forestry. “Improvements in three areas – increasing program access, promoting better eating habits and strengthening stewardship of taxpayer dollars- strengthens the safety net for those in need and ensures that all eligible individuals and families have access to a nutritious diet.”

Bost highlighted key parts of these reports, which are part of an ongoing series of studies conducted by USDA’s Food and Nutrition Service. The trafficking report is produced in house using data from FNS administrative sources. The household characteristics study, based on an analysis of food stamp quality control data, and the participation rate report, derived from national survey data, are produced under contract with Mathematica Policy Research, Inc. 

Key findings of the reports include:

  • “Characteristics of Food Stamp Households: Fiscal Year 2002 (Advance Report)” shows that food stamp benefits continue to be well targeted to people with little income and few resources, especially children, the elderly and the disabled. It also shows the increasing importance of the Food Stamp Program as a support for the working poor. In 2002, more food stamp households relied on a paycheck (28 percent) than received a welfare check (21 percent). Ten years ago, 40 percent of all food stamp households received welfare and only 20 percent worked.

  • “The Extent of Trafficking in the Food Stamp Program: 1999-2002” shows that the rate of trafficking has fallen to about 2.5 cents of every dollar issued, down from just under 4 cents in 1993. Trafficking – the sale of food stamps for cash - diverts benefits away from their intended purpose to support food purchases. Although trafficking does not raise program costs (since recipients are entitled to the benefits), it is illegal. To combat trafficking, FNS conducts undercover investigations of authorized food stamp retailers and has developed powerful new Electronic Benefit Transfer (EBT)-based tools to identify and sanction traffickers.

  • “Trends in Food Stamp Program Participation Rates: 1999 to 2001” shows that the food stamp participation rate – the percentage of people eligible for benefits who actually receive them – rose to nearly 62 percent in September 2001, up from 59 percent in September 1999 reversing five years of steady declines between 1994 and 1999. More low-income families and individuals are receiving the nutrition assistance for which they qualify. 

In combination, these new reports show that the Food Stamp Program is making progress towards the Administration’s goal to improve program access for low-income families and individuals eligible for assistance while strengthening program integrity to safeguard the taxpayers’ investment in nutrition assistance.

The Food Stamp Program has served as the first line of the nation’s defense against hunger for over 30 years. As of April, the program served more than 21 million low-income people, providing an important safety net for those in need. Over 92 percent of all households now receive their benefits electronically. Fifty states, the District of Columbia and the Virgin Islands, have operating EBT systems.

The President’s FY 2004 budget reflects the continued commitment to the nutrition safety net by including a record $42.9 billion for domestic food assistance programs. The budget request supports an estimated 21.6 million food stamp participants, and includes a $2 billion contingency reserve to cover unanticipated increases in food stamp participation.

More information on the Food Stamp Program and the reports is available at http://www.fns.usda.gov/ .

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