FRAC - Food Stamp Program Participation Data

Nearly 3.9 Million More Get SNAP/Food Stamps in October 2008 Than in October 2007

Increase Driven by Weak Economy and Natural Disasters

Vital to Get SNAP/Food Stamp Benefits to One in Three Eligible People Now Missed and to Boost the Purchasing Power of Benefits for All Participants and Local Economies

In October 2008 SNAP/Food Stamp participation was 31,049,715, the second highest participation level on record. An end to temporary disaster aid to hurricane victims in Louisiana accounted for much of the over-the-month drop of 581,948 persons from September 2008’s all-time record level of 31,586,923. The October 2008 participation level was nearly 3.9 million persons higher than the prior October.

October 2008’s over-the-year growth in SNAP/Food Stamp caseloads is largely due to economic factors. In addition, in October 2008 temporary benefits were provided to some hurricane and flood victims in Texas and Indiana.

As of October 1, 2008, the Food Stamp Program has a new national name - the Supplemental Nutrition Assistance Program (SNAP).

Food stamp spending provides effective economic stimulus. Based on USDA research, each dollar in federal food stamp benefits generates nearly double that in economic activity. Proposals to temporarily boost Food Stamp/SNAP benefit levels have been included in Senate and House economic stimulus bills.

Even before the latest economic crisis, more than 36.2 million people lived in U.S. households facing a constant struggle against hunger. It is vital to get food stamp benefits to the one in three eligible people not now served as well as to boost the purchasing power of the benefits for all recipients.

The number of people participating in SNAP/Food Stamps in October 2008 was 14.2 million more persons than in July 2000, when program participation nationally reached its lowest point in the last decade.

Caseloads dropped through 1998 and 1999 as the economy improved and many states failed to get food stamps to low-income families who had left cash welfare for low-paid work. Caseloads then stabilized and began rising in 2000. Increases in participation since then likely have been driven by improved access to the program in states, including most recently for legal immigrants, by the weakened economy for low-income families, and (in September, October and November 2005) by the hurricanes.

In October 2008 the largest over-the-prior October percentage caseload increases were registered in Texas, Florida, Idaho, Utah, Nevada, Indiana, Arizona, Wisconsin, Washington, and Maryland. As noted above, temporary benefits were provided disaster victims in two of these states ( Texas and Indiana).

Research suggests that one in three eligible people are not receiving food stamp benefits. See FRAC's"Gaps in Coverage" page. Fortunately, tools are available to bring federal food stamp dollars into families and communities, where each dollar is estimated to produce nearly two dollars in economic activity. See FRAC's "Countercyclical Section" attachment.

From December 1997 to December 2000, the food stamp caseload fell by 3.5 million persons. Some reduction in poverty and improvement in the overall unemployment rate contributed to these Food Stamp Program caseload declines, but other factors, including negative program changes by Congress, interactions with the cash public assistance system that make food stamp access harder for eligible families, and lack of information about the program among potentially eligible people, explained much of the drop.

Because of the 1996 welfare law, by August 22, 1997 most legal immigrants lost eligibility for federal food stamp benefits. Some immigrants were made newly eligible November 1, 1998, but a majority remained barred from the program. (Important additional improvements are occurring in 2003.) The period after March 1997 was also marked by implementation of cuts in Food Stamp Program eligibility for many childless, jobless adults. Implementation of the new, separate Temporary Assistance for Needy Families (TANF) Program established by the 1996 welfare law also had major, unintended, adverse effects on the Food Stamp Program, as families lost food stamps (for which many were still eligible) at the same time that they lost TANF benefits. According to a July 2001 USDA report to Congress, over half (56 percent) of caseload declines between 1994 and 1999 "occurred because fewer eligible individuals participated in the program," rather than because of the economy or changes in eligibility rules. Further, USDA finds, "nearly a quarter of all leavers (from food stamps) experienced hunger in the first year after leaving the Food Stamp Program."

Unemployment and underemployment; improved processes in some states at application; better rules in many states, such as no longer treating vehicles as a resource barring eligibility; and other increased efforts by states and non-profit groups to connect eligible persons with benefits have contributed to the increase in Food Stamp Program participation in the last five years.

Pursuant to the 2002 Farm Bill, many legal immigrants became newly eligible for benefits in 2003 (as of April 2003, those residing in the US at least five years; as of October 2003, those under 18 regardless of date of entry).

Caseload trends in late 2005 were affected by the temporary disaster Food Stamp Program relief in the wake of several hurricanes, relief that by December was on the wane.

Three states with large numbers of those affected by the hurricanes– Florida, Louisiana, and Texas--accounted for nearly 3.4 million of the 3.8 million person increase between August and November 2005. Also ranking in the ten states with the largest percentage increases between August and November 2005 were three other states disproportionately impacted by hurricanes— Mississippi (hit by Katrina), Georgia and Arkansas (both reportedly serving large numbers of hurricane evacuees).

Not reflected in the caseload figures was additional nutrition assistance provided to many regular food stamp households affected by the hurricanes. Many households already enrolled in the program received replacement allotments to help cope with their food losses. Additional nutrition assistance also was provided to hurricane victims through the school meals programs, Child and Adult Care Food Program, and WIC Program.

The significant food stamp service to hurricane survivors was due to a combination of factors: the entitlement structure of the program which allowed it to respond quickly to deep and urgent need; strong leadership from political appointees and career officials at the US Department of Agriculture; key efforts of state governments; efficiency of the Electronic Benefit Transfer delivery system; and outreach and advocacy by non-profit groups.

Changes in SNAP/Food Stamp benefit levels and asset rules that were enacted in the 2008 Farm Bill became effective as of October 1, 2008. These include the first ever increase in the minimum monthly benefit (from $10 to $14), an increase in the standard deduction for households of three or fewer, and taking into account the full amount of dependent care costs households incur. Retirement and education savings accounts will no longer be counted against a household?s SNAP eligibility.