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Release No. 0330.03 

Alisa Harrison (202) 720-4623
Jean Daniel (703)-305-2286 

VENEMAN ANNOUNCES THE END OF FOOD STAMP PAPER COUPONS
The Food Stamp Program Enters Final Stages of Transferring to Electronic Benefit Redemption

ATLANTA, Sept. 25, 2003 - Agriculture Secretary Ann M. Veneman announced today that the transition to electronic issuance of food stamp benefits for low-income individuals and families is in its final stages, making this important nutrition assistance program more accessible to low-income families. 

“The Bush Administration is committed to ensuring that those eligible to receive food stamps can easily access available benefits,” said Veneman. “The use of the electronic benefit transfer system is an important step in the on-going effort to improve access for low-income households. With this technology, low-income families are getting service faster and easier.”

USDA officials gathered here today for a ceremony commemorating the destruction of the remaining federal inventory of food stamp paper coupons. Officials included USDA Food and Nutrition Service Administrator Roberto Salazar and Virgil Conrad, FNS regional administrator. Also present was Mark Alvarez, president of Recall North America, the information management company selected by USDA to handle the destruction of the last food stamps. 

The Electronic Benefit Transfer (EBT) system was introduced in l984 by FNS, which administers the food stamp and other domestic nutrition assistance programs. EBT is an electronic system that allows recipients to authorize the transfer of their government benefits from a federal account to a retailer account to pay for products received. The EBT system enables recipients to access benefits by using a magnetic stripe card and a personal identification number. EBT transactions can be tracked more accurately than paper coupons, thus improving accountability and reducing fraud and misuse.

The Personal Responsibility and Work Opportunity Reconciliation Act of l996 mandated that all states implement EBT systems by Oct. 1, 2002. Today, 95 percent of food stamp benefit issuance is provided with an EBT card, and by September 2004, all participating households will receive benefits electronically. The need to produce paper food coupons has ended.

The Food Stamp Program is the cornerstone of the federal food assistance programs, and provides crucial support to needy households and to those making the transition from welfare to work. The program enables low-income individuals and families to buy nutritious food in authorized retail food stores.

Further information about the Food Stamp Program is available at http://www.fns.usda.gov/ . Additional information about President Bush’s e-government initiative can be found at http://www.whitehouse.gov/omb/egov/ .

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