FRAC Special Analysis

Fact Sheet: The Minimum Food Stamp Benefit

The minimum food stamp benefit is currently $10 a month. The monthly amount of food stamp benefits depends on household size, and the amount of "net income" that remains after certain deductions are taken out. Generally, households with greater "net income" will receive a lower food stamp benefit. The food stamp office calculates the amount of food stamp benefits a household will receive by taking the maximum amount of food stamps a certain household size can receive (which is based on USDA's Thrifty Food Plan) and deducting thirty percent of "net income." However, in the case of a household with one or two members, even if this result is less than $10, the household will be entitled to $10 a month minimum food stamp benefit.

The Nutrition Assistance for Working Families and Seniors Act would raise the minimum benefit. The Kennedy-Specter/Clayton-Walsh Nutrition Assistance for Working Families and Seniors Act (S. 583, H.R. 2142) would raise the minimum food stamp benefit from $10 to $25 over five years and then index it to inflation. This change would provide a needed boost in allotments to many elderly people as well as make it more worthwhile for other eligible low-income elderly people to enroll in the Program.

Many elderly people are food insecure and in need of nutrition-related assistance. According to USDA, in 1999, 1.4 million households with elderly people reported that they were food insecure, meaning that they did not have enough of the right types of food needed to maintain their health or simply did not have enough to eat. The U.S. Conference of Mayors reported that in 2000 the number of elderly persons requesting emergency food assistance increased in 75 percent of the survey cities, and requests for emergency food assistance by elderly persons increased by an average of 9 percent across the cities.

Many low-income elderly people who are eligible are not served by the Food Stamp Program. In FY 1998, only an estimated 30.4 percent of eligible elderly people participated in the Food Stamp Program. Elderly people often do not enroll in the Program because they expect to receive a small amount of benefits.

Many households that receive the minimum benefit contain elderly and disabled individuals. 427,000 households with elderly members receive the minimum benefit. 318,000 households with disabled members receive the minimum benefit.

Nearly 10 percent of food stamp households receive the minimum benefit. Of food stamp households, 9.7 percent or 743,000 households receive the minimum benefit.

Households that receive the minimum benefit are poor and have few resources. The average monthly gross income for households that receive the minimum benefit is $703, average monthly net income is $524, and average resources are $272.

Most households with elderly and disabled members that receive the minimum benefit have incomes below the poverty level. Of the elderly households that receive the minimum benefit, 67.2 percent have income from 51 to 100 percent of poverty, 30 percent have income below from 101 to 130 percent of poverty. Of the disabled households that receive the minimum benefit, 60.1 percent have income from 51 to 100 percent of poverty, 30.7 percent have income below from 101 to 130 percent of poverty.

Raising the minimum benefit to $25 per month would help boost elderly participation in the Food Stamp Program. Research has identified that many elderly people do not apply for food stamps because they think they will receive a small amount of benefits. Raising the minimum benefit to $25 per month will provide a greater incentive to participate in the Food Stamp Program.

Prepared 9/14/01. Please contact Sonya Schwartz, FRAC's NAPIL Fellow, with any questions at (202) 986-2200 x3025 or sschwartz@frac.org.