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May 20, 2005
WHY FOOD STAMPS MATTER: TALKING POINTS
There are millions of hungry Americans.
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In 2003, the last year for which there are official
USDA data, 36.2 million (or 11.2% of) Americans lived in households
unable to purchase adequate food, up from 34.9 million hungry Americans
in 2002.
- Over one-third of those in hungry and food insecure households (13.3
million in 2003) are children. This is almost one-fifth of all American
children.
- Hunger has adverse consequences for all Americans, but particularly
for children and mothers. It impedes growth and development, is a significant
predictor of adverse health conditions, and is associated with behavior
problems among preschoolers and school-age children.
- The Food Stamp Program currently reaches only about one-half of eligible
low-income working families.
Food Stamps are effective, efficient and closely monitored.
Food Stamps benefit farmers, the food industry, and
the economy.
-
USDAs Economic Research Service (ERS) estimates
that each $1 billion of retail demand by food stamps generates $340
million in farm production, $110 million in farm value-added, and
3,300 farm jobs; and each $5 of food stamps generates almost $10 in
total economic activity.
- Changes in food stamp policy have significant impacts on economic
activity and household income across the economy, according to an ERS
study finding that hypothetical cuts in food stamp benefits reduce food
demand and farm production.
- Food stamp participation closely follows the economic cycle. With
few exceptions (notably 1981-1983 following substantial program cutbacks)
food stamp caseloads have closely tracked the unemployment rate, rising
as unemployment rises, and falling when it declines.
- Paired with unemployment insurance, food stamps are a vital part of
Americas front-line defense against recession. They help to prevent
hunger in families with laid-off workers that fall into poverty, provide
temporary support until these families can get back on their feet, and
quickly get federal support into local communities when times are tough.
- During the late 1990s food stamp participation fell by 40 percent,
largely because of a strong economy and declining unemployment. Participation
rose with the economic downturn beginning in 2001 and the program now
serves nearly 8 million more people.
The Food Stamp Program helps individuals and communities
hit by disasters.
-
When natural or man-made disasters hit, the Food
Stamp Program provides timely, critical resources to help people cope,
and is an important ingredient for physical and economic recovery.
Food Stamps make work pay and help those seeking economic
independence.
-
Food stamps help low-wage workers make ends meet
and assure that families are financially better off working than on
welfare. A typical person leaving the welfare rolls, working 35 hours
per week at $6.50 per hour, is eligible for about $200 a month in
food stamps for a family of three.
- Food stamps promote self-sufficiency. For every additional dollar
a food stamp recipient earns, his or her benefits decline by 24-36 cents,
thus providing a strong incentive to work longer hours and search for
better employment opportunities.
- Over half of all food stamp recipients are children and another quarter
are elderly or disabled persons. Of the remainder, close to half are
working or participating in the Food Stamp Employment and Training program
or are subject to other program work requirements (e.g., TANF). Of the
5 percent of all food stamp recipients neither working nor subject to
a work requirement, half are caring for a young child.
Food Stamp provisions in the 2002 Farm Bill are working.
-
The 2002 farm bill food stamp provisions offered
states an array of new options to simplify the program, make it more
accessible, and better coordinate child care and Medicaid for eligible
families. Program changes that add unwarranted complexity and excessive
bureaucratic conditions on food stamp administrators and beneficiaries
would undermine these advances.
- In recent years, the Administration, Congress, states, and advocates
have made reaching more food stamp eligibles a top program priority.
Changes that reduce eligibility and benefits for low-income families
or add unnecessary administrative burdens to the program will weaken
such efforts.
- The current farm bill Food Stamp Program authorization provided stable
policies and predictable rules for the operation and administration
of the program through 2007. Early reopening of these provisions risks
undermining state plans and cost-effective operation of the program.
Source: Americas Second Harvest - The Nations
Food Bank Network (www.secondharvest.org);
Food Research Action Center (www.frac.org); Center on
Budget and Policy Priorities (www.cbpp.org);
5/19/05.
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