FRAC - Economic Stimulus Package - Food Stamp Program

SNAP/Food Stamps = Real Stimulus

SNAP/Food Stamps as Stimulus In the News | What can states do? | What are some tools that we can use to get more people using SNAP/Food Stamps? | What do the experts say about how SNAP/Food Stamps stimulate the economy? | What's going on at the Federal level?

As the economy has weakened, getting lower-income families food stamps and other payments that they can spend quickly emerged as a key way to stimulate the economy. FRAC believes that putting more resources quickly into the hands of the people most likely to quickly turn around and spend it can both boost the economy and cushion the hardships on vulnerable people who face a constant struggle against hunger.

Since SNAP/Food Stamp benefits are 100 percent federally-funded, and the federal government also shares the administrative costs, the cost to a state or local government of reaching eligible people is very small - the federal government bears almost all the cost. And USDA studies show that every $1 of federal SNAP/Food Stamp benefits coming into the economy generates nearly double that amount in local economic activity.

Beyond that, state spending to augment SNAP/Food Stamp benefit levels and/or coverage also has stimulative effects. Supplementing benefit levels and extending coverage to certain needy populations have been considered and/or enacted in some states.

In the recent federal stimulus debate, a remarkable range of economists, policymakers, and editorial writers spoke to the fact that SNAP/Food Stamps are the best stimulus.

SNAP/Food Stamps as Stimulus In the News

SNAP/Food Stamp Boost and One American Family's Needs
Newsday, "Stimulus bill carries high stakes for families in need," February 8, 2009
"In the House version, the stimulus package would boost the Bensons' $600 in food stamps by 13 percent, or $78 a month. She'd still need food pantry help, but she could buy more cereal and serve a little more milk and butter. But Benson may end up serving less butter than she hopes: The $20 billion set aside to boost food stamps was trimmed Friday to $16.5 billion."

February 6, 2009 - New Jobless Data Underscores Need for Recovery Package
Bureau of Labor Statistics, Economic News Release - Employment Situation Summary, 1/6/09
New jobless data from the Bureau of Labor Statistics (BLS) underscores the urgency of enacting measures that stimulate the economy and help hard-hit families. In January the official unemployment rate rose to 7.6 percent; when those people working part-time for economic reasons or too discouraged to look for work are included, the rate of unemployment and underemployment was 13.9 percent, compared with 9.0 percent a year earlier (figures seasonally adjusted).

February 5, 2009 - Boosting SNAP in Recovery Bill is "Excellent Stimulus"
TIME, "What Is Real Stimulus and What Isn't?" 2/3/09
"Expanded unemployment benefits and food stamps would be excellent stimulus — and those are both desperately needed right now."

February 4, 2009 - Food Stamp Stimulus also Saves/Creates Jobs
Center for American Progress, "Basic Needs Assistance for the Poor Advances Economic Recovery and Employment Goals," 2/3/09
"According to the USDA, each $1 billion invested in food stamps results in an increase of 16,400 private sector jobs due to expanded economic activity in such areas as farming, livestock, food processing, and transportation."

February 3, 2009 - SNAP/Food Stamp Boost is also Economic Stimulus
Forbes, "Officials say Fla. ready for fed stimulus money," 2/2/09
"Florida also would get stimulus money for food stamps, temporary assistance to needy families and other social services, said Department of Children & Families Secretary George Sheldon. "There's a recognition that while we're stimulating the economy we've also got to revive the safety net," Sheldon said. He added that social service spending also is a stimulus. Every dollar spent on food stamps generates $2 of stimulus to the overall economy, Sheldon said."

February 2 , 2009 - Food Stamps in Stimulus Bill Helps Poor and Economy
Great Falls Tribune, "Stimulus should start with help for those most in need," 2/2/09
"The more than 80,000 Montana residents currently receiving food stamps would see their benefit rise and would immediately spend those extra funds to purchase food in local stores. An increase in business means that the stores would not be forced to lay off people and might even be able to start hiring and buying more goods from food wholesalers and farmers."

January 30, 2009 - Economic Recovery Boost to SNAP/Food Stamp Benefits Could Be Felt in Weeks
The New York Times, "Components of Stimulus Vary in Speed and Efficiency," 1/28/09
"At the grocery store, a family of four on food stamps could find up to $79 more a month on their government-issued debit card."

January 29, 2009 - "Good parts of U.S. stimulus plan spend money quickly"
Kansas City Star, 1/29/09
"On the spending side, the House bill would pump billions of additional dollars a year into food stamps and extended unemployment assistance. Again, this serves a double purpose: helping Americans who need assistance the most, while ensuring that the money will quickly find its way back into the economy. This will support businesses, protect some jobs and create others."

January 29, 2009 - "R.I. Delegation defends antipoverty spending"
Providence Journal, 1/29/09
"[Rep. James R. Langevin] argued...that such spending will 'filter through the economy.' He said a dollar's worth of food stamps, for example, has a ripple effect on agriculture, food transportation networks and so on."

January 29, 2009 - SNAP/Food Stamp Boost in Top Three Most Effective Aids in House-Passed Recovery Bill
The New York Times, "The Stimulus Advances," 1/28/09
"After jobless benefits, food stamps and aid to states, the most effective stimulus is to get money directly to low- and middle-income Americans, who are likely to spend it quickly, boosting demand."

January 29, 2009 - Providing Food Stamp Benefits in the Stimulus by FRAC President Jim Weill published on Spotlight on Poverty and Opportunity Web site.

January 28, 2009 - House Speaker Nancy Pelosi Notes SNAP/Food Stamps Provide More Recovery "Bang for the Buck"
Miami Herald, "Obama to drop family-planning from stimulus as GOP concession," 1/27/09
"Food stamps, unemployment insurance, some of the initiatives you just mentioned, what the economists have told us, from right to left, there is more bang for the buck - is the term they use - by investing in food stamps and in unemployment insurance than in any tax cuts."

January 27, 2009 - SNAP/Food Stamps Included in Senate Appropriations Committee Highlights of American Recovery and Reinvestment Plan
U.S. Senate Committee on Appropriations Press Release, 1/23/09
"The spending proposed here will serve to lessen the blow of the current recession, providing immediate relief for children, the poor, and others who may find themselves struggling to put food on the table or a roof over their head."

January 26, 2009 - SNAP/Food Stamp Boost Included in President's Recovery Plan
The New York Times, "In Effort to Build Support, Obama Details Stimulus Plan" 1/24/09
"The White House released a report Saturday revealing details about the package...it would increase food stamp benefits for 30 million Americans and increase Social Security benefits $450 for 7.5 million disabled and elderly people."

January 23, 2009 - SNAP/Food Stamp Boost is Immediate in Economic Recovery
Roll Call, "Senate Democrats Say Stimulus Will Go to Work Immediately" 1/22/09
"[O]ne senior Senate Democratic aide said...'Several of the critical elements of the package — totaling more than $500 billion — are designed to spend out almost entirely over the first two years of the program.' Those elements include much of the $275 billion tax package, extended unemployment insurance and food stamp benefits, and other temporary measures totaling more than $160 billion designed to help states maintain social service programs while averting local tax increases, the aide said.

January 22, 2009 - Speaker Pelosi Committed to Completing Economic Recovery Package by President’s Day
“Pelosi Statement on Analysis of American Recovery and Reinvestment Plan by Mark Zandi of Economy.com” 1/21/09
Zandi report calls for "expanded food stamp payments."
Click here for Zandi report... (pdf)

January 21, 2009 - Food Stamps Offer Fastest Economic Benefit
Associated Press, "Much in Obama stimulus bill won’t hit economy soon" 1/20/09
"The Obama transition has stressed that a combination of old and new federal investments will help the economy recover, as well as tax cuts and other steps. Obama economic advisers and their allies on Capitol Hill have sought to identify federal programs that can deliver dollars fast, like food stamps and a boost in unemployment benefits."

January 16, 2009 - House Stimulus Bill Includes Food Stamp Boost
The New York Times, "Congress Moves on Stimulus Bill and Bailout Money" 1/16/09
"Mr. Obama is expected to travel to Ohio on Friday to trumpet aspects of the plan, particularly the renewable energy provisions and the aid for struggling Americans, including a further extension of jobless benefits, new health insurance subsidies for the unemployed and an increase in food stamps."

January 15, 2009 - Democrat officials note food stamp boost in stimulus plan
Associated Press, "Obama presses lawmakers to OK new bailout funds" 1/14/09
"Several Democratic officials...said...that there was money tentatively set aside to fund a $25-a-week increase in unemployment benefits as well as a 15 percent boost in food stamp benefits."

January 14, 2009 - SNAP/Food Stamp Recipient Calls for Congress to Boost Benefits
Raleigh News & Observer, "Rally-goers call for passage of Obama plan," 1/9/09
"Durham resident Patricia Evans-Carpenter said her food stamps were cut from $152 a month to $14 a month after she saw a 5 percent increase in her disability check. The 61-year-old retiree said her overall benefits are less than they used to be, and she is finding it difficult to keep up with rising food costs. 'There are a lot of people in the same situation,' she said. 'Congress needs to increase the funding for food stamps by at least 20 percent.'"

January 13, 2009 - American Recovery Act Report Calls for SNAP/Food Stamp Boost
The Job Impact of the American Recovery and Reinvestment Plan, January 9, 2009 (pdf)
This report, by Christina Romer, the Chair-designate for the Council of Economic Advisers, and Jared Bernstein, the chief economist for the Office of the Vice President-elect, states that key components of the $775 billion package under discussion include: Temporary programs to protect the most vulnerable from the deep recession, including increases in food stamps and expansions of unemployment insurance. Read more about it at Change.gov.

January 13, 2009 - Each SNAP/Food Stamp Dollar Returns $1.73 in Economic Stimulus
Philadelphia Inquirer, "Food stamps' value," 1/13/09
In this letter to the editor, Sydelle Zove of the Greater Philadelphia Coalition Against Hunger notes Moody’s Economy.com chief economist Mark Zandi’s testimony to Congress showing $1.73 rise in the GDP for every $1 in SNAP/Food Stamp money spent. This is especially important since out-of-work families and seniors are having trouble putting food on the table. While food donations help in the short term, a temporary increase in food stamp benefits in the economic stimulus package will match conservatives’ need for public stimulus funds to “leverage a significant return” on investment.

January 12, 2009 - Government Statistics Show Need for Temporary Food Stamp Boost in Economic Stimulus Plan
National Journal/Congress Daily, "Anti-Hunger Groups Say Food Stamp Program Needs Boost," 1/8/09
USDA data on SNAP benefit applications showed that the number of people receiving benefits in October was 31 million, 3.9 million higher than one year earlier. FRAC supports congressional efforts for a 20 percent increase in food stamp benefits for two years and a $250 million increase in federal payments to the states to administer the program.
Full article via subscription to Congress Daily.

January 9, 2009 - Experts Tell House Committee to Increase SNAP/Food Stamp Benefits.
Mark Zandi of Moody's Economy.com and Robert Reich, former Secretary of Labor under President Clinton, told a House Democratic Steering and Policy Committee Forum to increase SNAPfood stamp benefits.

January 9, 2009 - Letter to Congress Supports SNAP/Food Stamps in Economic Stimulus
St. Paul Legal Ledger Capitol Report, "State legislators urge quick passage of federal stimulus package," 1/7/09
"...37 [Minnesota] state legislative leaders who signed a bipartisan letter this week to the leadership of the U.S. Congress, urging quick passage of President-elect Barack Obama's proposed $800 billion economic stimulus package. The letter also supports ...supplemental food stamp benefits and extended unemployment insurance benefits."

January 9, 2009 - U.S. Rep. Loebsack: Asks House Leadership to address Iowa’s needs in economic package
Iowapolitics.com
“Another critical area of focus which helps our most vulnerable populations is the food stamp program along with other nutrition programs through the U.S. Department of Agriculture. Despite Iowa being one of the most productive agricultural states in the nation, the number of adults and children who often go hungry has been increasing dramatically over the past ten years. An increase in funding for food stamp and other nutrition programs would provide an immediate stimulus to the economy and much needed assistance for our at-risk populations.”

January 9, 2009 - Obama jumps on more bad jobs numbers
Boston Globe
“AFL-CIO president John Sweeney said in a statement: "We are encouraged by the leadership of President-elect Obama and quick action by Congress to prepare legislation for early passage in the new year. The economic recovery package should be large enough to restore sustainable growth. It should meet the immediate needs of struggling American families by extending and modernizing unemployment insurance and providing food stamps.”

January 9, 2009 - A formula for stimulus with staying power
CNNMoney.com
“…the stimulus program should target the neediest people who are both most vulnerable in these bad times and who are certain to spend what they receive. This component of the stimulus plan should include initiatives like extended unemployment benefits, increased food stamps, support of children's health care, and expanded assistance for state Medicaid budgets.”

January 8, 2009 - Harold Meyerson links economic stimulus to SNAP/Food Stamps.
Washington Post, A Page From the Hoover Playbook, 1/7/09.
"Barack Obama seems to have learned the right lessons from America's economic history. He knows that the stimulus package needs to be big enough to compensate for the collapse of bank lending. He knows that unemployment insurance and food stamps cannot be allowed to run out."

January 7, 2009 - For 111th Congress, Somber Topics Eclipse Ceremony
Washington Post
“The [stimulus] plan would also include $350 billion for infrastructure programs such as highway construction, an upgrade of health-care technology, the extension of unemployment benefits and increased funds for food stamps.”

January 6, 2009 - “No regrets” stimulus
Chicago Tribune
“But if fiscal stimulus is going to be attempted, it should be done carefully, to maximize the benefits—or, if those prove illusory, minimize the long-term costs. Extending unemployment benefits and food stamps could help the economy by encouraging spending, but if not, at least it would alleviate hardship.”

January 5, 2009 - California SNAP/Food Stamp Workers Laid Off
NBC Los Angeles, "Pink Slips Arrive for Orange County Social Workers," 1/5/09
More than 200 employees of the Orange County Social Services Agency were laid off at the beginning of 2009, part of $30 million in cuts to the county budget. SNAP/Food Stamp processors, social workers and Medi-Cal specialists lost their jobs in the downsizing, which may lengthen response times for residents in need of services. Former Orange County Supervisor Bill Steiner, who oversees many of the affected programs, said, “I think there will be a backlash.”

January 1, 2009 - Use of SNAP/Food Stamps on the rise in Texas
North Channel Sentinel
“With more than 36.2 million people nationwide struggling against hunger, there is an undeniable need to Congress to take immediate action by quickly passing an increase in benefits as part of economic recovery legislation, as well as more administrative funds to help states cope with growing caseloads.”

December 24, 2008 - Poor families’ “safety net” is wearing thinner
San Francisco Chronicle
"Unemployment insurance and food stamps are the quickest way to move dollars from the government into local economies," [said Jean Ross, director of the California Budget Project.]

What can states do?

What are some tools that we can use to get more people using food stamps?

Toolkit: Stimulating State and Local Economies: Reaching More Eligible People with Food Stamps (PDF)

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