Strategies for Tough Fiscal Times

Supplemental Nutrition Assistance Program

(SNAP, Formerly Food Stamp Program)

Funding in the federal economic stimulus legislation (American Recovery and Reinvestment Act of 2009) totals $19.9 billion for SNAP (the newly renamed food stamp program). The increases give states a powerful opportunity to provide immediate, local economic stimulus, as well as food assistance for improved nutrition and health of low income families.[i]

What Can Policymakers Do?

· Expand outreach to increase participation. In fiscal year 2005, only 65 percent of those eligible for SNAP benefits participated in the program.[ii] State SNAP agencies can receive reimbursement for approximately 50 percent of the administrative costs of outreach as outlined in an approved state outreach plan. The U.S. Department of Agriculture also provides outreach grants to non-profits and other organizations to improve outreach efforts.

· Reduce error rates. To qualify for enhanced SNAP funding, each state must reduce combined payment error rates to 5.9 percent or less, and negative case error rates (the frequency with which food stamp benefits are denied to qualified applicants) to a level below the national weighted average for the prior fiscal year. Food stamp error rates have declined for six consecutive years and were at an all-time low in 2007.[iii] State error rates are available online.

· Expand eligibility. States can enroll more households by readjusting income eligibility to current FY2009 standards. Local hunger councils worked with Vermont state officials to broaden SNAP eligibility requirements that led to $10 million in new food benefits coming into the state and additional stimulus to local economies.[iv]

· Access employment and training funds . Recipients of food assistance are also eligible for job training funds through the Food Stamp Employment and Training Program. The 2008 Farm Bill expanded this program to post-employment job retention services and longer term assistance.

· Streamline eligibility determination and application processes . States can improve enrollment in SNAP by adopting automated, user friendly systems that make it easier for eligible applicants to enroll.

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