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Trends
in Food Stamp Program Participation:
1994-1999
EXECUTIVE
SUMMARY
The
Food Stamp Program (FSP) helps needy
families purchase food so that they can
maintain a nutritious diet. Families and
individuals are eligible for the program
if their financial resources fall below
certain income and asset thresholds.
However, not all those eligible
participate in the program. Some choose
not to, while others do not know they
are eligible. The participation rate -
the ratio of the number of participants
to the number of eligible individuals
-reveals the degree to which eligible
families participate.
From
September 1994 to September 1999, the
number of participants in the FSP fell
by 9 million, or 35 percent.
Participation has been affected by both
the strong economy and significant
legislative changes:
-
The
strong economy helped low-income
families find jobs, earn more money,
and leave the program or not apply
in the first place.
-
The
food stamp provisions of the 1996
welfare reform legislation
restricted the eligibility of many
permanent resident aliens and
required many able-bodied adults
without children to work in order to
continue receiving food stamps.
-
Legislation
in 1997 expanded funding for
employment and training
opportunities for able-boded adults
without children and put in place
additional exemptions from the work
requirements. Legislation in 1998
restored food stamp eligibility to
some noncitizen children, elderly,
and disabled individuals.
-
The
1996 federal welfare reform
legislation replaced Aid to Families
with Dependent Children (AFDC) with
the work-oriented Temporary
Assistance to Needy Families (TANF)
program. Changes to the welfare
system may also have affected many
food stamp recipients because of the
overlap of the two populations.
Because the
number of participating individuals fell
by more than the number of eligible
individuals from 1994 to 1999, the
participation rate decreased (from 74 to
57 percent). This means a decreasing
percentage of eligible individuals are
relying on the FSP for food assistance.
More are leaving the FSP, or not
participating in the first place, even
though they are eligible.
This report
examines trends in FSP participation
rates since 1994. It focuses on trends
in the rates before and after welfare
reform, and throughout much of the
economic expansion of the 1990s. It also
examines trends in participation rates
among subgroups of the eligible
population such as those with and
without earnings, with and without
children, and with and without welfare.
It also looks at participation rates of
aliens and able-bodied adults without
children.
Methodology
The method for
estimating participation rates in this
report allows for a consistent
comparison of rates over time. The
participation rate is calculated as the
ratio of participating individuals to
eligible individuals. The estimates are
calculated for September of each year.
Data from the Current Population Survey
(CPS) are used to estimate the number of
eligible individuals, and administrative
data from the FSP are used to count the
number of participants. Because the CPS
does not capture the characteristics
needed to identify aliens and
able-bodied adults without children who
remained eligible under welfare reform,
we impute the eligibility of these
individuals on the basis of patterns
observed in other data sources.
The
Proportion of Eligible Individuals
Served by the FSP
Overall, the
FSP has reached proportionately fewer
eligible individuals in every year since
1994. From 1994 to 1999, the
participation rate has fallen 17
percentage points, from 74 percent to 57
percent. In each year of this period,
both the number of eligible individuals
and the number of participants has
decreased, with the number of
participants decreasing more rapidly.
The individual participation rate fell
most sharply from 1996 to 1997, dropping
five percentage points as a result of an
8 percent decline in the number of
eligible individuals and a 15 percent
decline in the number of participants.
From 1997 to 1998, the participation
rate fell another four percentage
points, and then fell another two
percentage points between 1998 and 1999.
The five-year drop in rates (from 1994
to 1999) appears to be slowing down, and
may have reached bottom.
Highlights
in Trends Among Subgroups
In general,
participation rates for most subgroups
have been falling since 1994 due to
larger decreases in the number of
participants than in the number of
eligible individuals. However, some
subgroups experienced increases in rates
while others experienced stable or
fluctuating rates over this time period.
Recent trends
in subgroup participation rates are
easier to understand if they are put in
the context of historical trends for
those subgroups. FSP participation rates
historically have been high for
children, public assistance recipients (TANF,
SSI), individuals with very low income,
and individuals eligible for large
benefits. On the other hand, elderly,
individuals in households with earnings,
individuals in households with income
above poverty, and those eligible for
small benefits typically have
participated at a low rate. The period
of declining participation rates
occurred during a time when fewer
low-income individuals received cash
welfare benefits (associated with high
participation rates) and more relied on
earnings (associated with low rates).
Subgroups
with Falling Participation Rates
Many subgroups
have experienced declines in
participation rates since 1994 (or, in
some cases, since 1995). This trend
mirrors the decline in rates among the
total FSP eligible population. Subgroups
with declines in rates include:
-
Children
-
Non-elderly
Adults
-
Individuals
in Households With Earnings
-
Individuals
in Households With High Benefits
-
Individuals
in Households With Income Well Below
Poverty
-
Individuals
in Married-Couple Households With
Children
-
Individuals
in Single-parent Households
Subgroups
with Rising Participation Rates
Contrary to
overall participation rates, some
subgroups experienced increases in
participation rates. For these groups,
the FSP is serving an increasing
proportion of eligible individuals.
Subgroups with increases in rates
include:
Subgroups
with Stable Participation Rates
A few subgroups
experience relatively stable
participation rates over time. These
groups tend to be those least affected
by the economy or welfare reform.
Subgroups with stable rates include:
Subgroups
with Fluctuating Participation Rates
A number of
subgroups have fluctuating participation
rates that do not show a consistent
pattern over time. Subgroups with no
consistent trend for more than two years
over this time period include:
-
Disabled
Individuals
-
Individuals
in Households Without Earnings
-
Individuals
in Households With Income From 51 to
100 Percent of Poverty
-
Individuals
in Households With Low Benefits
-
Individuals
in Multiple-Adult Households With
Children (Excluding Married-Couple
Households)
-
Individuals
in Single-Parent Households
Long
Term Trends in Participation Rates
During the
period of economic expansion from 1994
through 1999, participation rates have
been declining. However, during an
earlier period of economic expansion,
participation rates increased
significantly. From 1976 through 1980,
participation rates increased sharply
despite an improving economy due to the
elimination of the purchase requirement,
which increased participation
substantially. Rates changed very little
from 1980 until 1988, a period of
relative stability in both the economy
and the FSP. However, beginning in 1988,
participation rates rose again, jumping
13 percentage points through 1994 due to
a surge in the number of participants
with only a modest increase in the
number of eligible individuals. This
rise in rates occurred during a period
with expansions in the Medicaid program,
increased outreach services, and a
weakening economy from 1988 through
1994. Then, from 1994 to 1999, a period
with a strengthening economy and major
legislative changes due to welfare
reform, the participation rates declined
steadily, falling by 17 percentage
points.
October
2001
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