More Than 22 Million on food stamps in U.S.

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December 2003

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More Than 22 Million on food stamps in U.S.
Participation in the Food Stamp Program in September 2003 (the latest data available) increased by 353,413 persons from the previous month, to 22,705,267 persons, according to the Food Research and Action Center's analysis of preliminary monthly data from USDA. The September 2003 level of Food Stamp Program participation represented a rise of more than 2.9 million persons compared to the September 2002 level, nearly 4.9 million persons compared to September 2001, and about 5.8 million persons since 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 2001 likely have been driven by improved access to the program in states, and by the weakened economy.

Participation has risen for fifteen months straight—since June 2002—and in 34 of the last 38 months. Participation in September 2003 rose in 49 states and the District of Columbia, compared to a year earlier. In 33 states and the District of Columbia growth over the 12 month period was 10 percent or more.

Trends: 2001-2003
Rising unemployment and underemployment levels, 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 three years.

Pursuant to the 2002 Farm Bill, many legal immigrants become newly eligible for benefits in 2003 (as of April, those residing in the U.S. at least 5 years; as of October, those under 18 regardless of date of entry).

September 2003 marked the sixth month that many low-income legal immigrants (US residents for at least five years) became newly eligible for program benefits, pursuant to the 2002 Farm Bill. While the caseload increases for April, May, June, July, August, and September include some of those newly eligible legal immigrants, results in states were uneven and more work remains to connect many eligible immigrants to the program.

Texas, which had the third largest share of legal immigrants on the Food Stamp Program prior to the 1996 welfare law, registered the largest percentage increase in that 6 month period. In other states with traditionally large immigrant populations (California, New York, Florida), caseload increases were not uniformly strong over the five month period: these states were 29th, 30th, and 39th in program growth out of 51 jurisdictions, respectively. More analysis will be required to assess how much of the caseload change is attributable to immigrant restorations.

Trends: 1998-2001
From September 1998 to September 2001, the food stamp caseload fell by 820,000 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."

Gaps in Coverage persist

Approximately four out of ten of those eligible for the Food Stamp Program are not receiving benefits, according to the USDA's "Trends in Food Stamp Program Participation Rates: 1999 to 2001." The estimated Food Stamp Program participation rate among eligible persons fell from 74 percent in 1994 to 57 percent in 1999, before inching up to 59 percent in 2000 and registering further increase to 62 percent in 2001.
A July 1999 report prepared for USDA by Mathematica Policy Research, Inc. identified lack of client information as a barrier to participation: among non-participating persons eligible for food stamp benefits surveyed in late 1996, nearly three-quarters (72 percent) were not aware that they were eligible.
Urban Institute research suggests that many families leaving the Food Stamp Program in 1999 were still eligible. (See Urban Institute's "Former Welfare Families and the Food Stamp Program: The Exodus Continues," April 2001.)
Federal safety-net programs (e.g. food stamps, health insurance) are being better utilized by families that left welfare between 2000 and 2002, due in part to improved state policies that help eligible families receive assistance. Compared to welfare recipients who left the program during the boom years (1997 to 1999), recent leavers (2000 to 2002) were more likely to return to the program or be subsisting in families with no employed member or one receiving disability payments. See the Urban Institute study "Welfare Reform: One Size Doesn't Fit All" (August 2003).

Bolstering Food Stamp Program’s Counter-cyclical Impact Critical in Coming Months

In the wake of the decline in participation among eligible families, and of weaker economic conditions, bolstering the effectiveness of the Food Stamp Program is critically urgent. Fortunately, federal lawmakers, state officials, and advocates have tools available to make a difference.

Thirty-five million Americans —13 million of them children— still suffer from hunger or live on the edge of hunger, according to food insecurity data for 2002 —the latest available data— reported by the U.S. Census Bureau and USDA (See FRAC's press release and link to the full report). 2002 Marked the third consecutive year that food insecurity and hunger have increased.
Between November 1, 2001 and October 31, 2002, requests for emergency food assistance increased in all of the 25 cities surveyed by the US Conference of Mayors in its report, Hunger and Homelessness 2002. The average increase for families with children requesting emergency assistance was 17 percent. Survey cities report that 38 percent of adults requesting emergency food assistance were employed.
Increasing the food stamp participation rate helps local economies as well as recipients; each $5 in federally funded benefits generates approximately $10 in economic activity.

See Economic Research Service of USDA report: http://www.ers.usda.gov/publications/fanrr26/fanrr26-6/fanrr26-6.pdf
Implementing Farm Bill Expansions
On May 13th, 2002, President Bush signed into law the Farm Bill (P.L. 107-171), which, among other things, reauthorizes and improves the Food Stamp Program. Modest increases in benefit levels in 2002 for families with children and restoration of eligibility for nearly 400,000 legal immigrants in spring and fall 2003 represent important advances. Under the law states also have important new opportunities to simplify certain program rules and reporting procedures, options that can make these nutrition benefits more accessible to low-income working families with children.

See FRAC's publication: "Get Ready for Food Stamp Reauthorization Changes in Your State."

Help get the word out to newly eligible legal immigrants. Click here for leaflets in six languages (including English).
Making Good Choices
States have many other tools available to get more nutrition benefits to vulnerable people. These range from continuing food stamp benefits for those transitioning from cash assistance and extending office hours, to conducting outreach campaigns to connect more eligible people with the program. See FRAC's publication. Good Choices in Hard Times.
Rejecting Radical Welfare Law Proposals
The national entitlement structure of the Food Stamp Program and its effectiveness in responding timely to changes in the economy would, however, be undercut by two risky proposals contained in the welfare reform bill proposed by House Republicans (H.R. 4): (1) an option for up to five states to operate a food stamp block grant in lieu of the regular program; and (2) a provision granting cabinet secretaries broad power to waive protections in the Food Stamp Program and some other human needs programs. Congress should reject these proposals in the 2003 TANF reauthorization, according to FRAC.

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