The Recovery Act:  SNAPping back from the Recession 1/22/10

Amidst the bleak economic and budget situations, there is some good news that’s worth sharing and building upon.  The stimulus bill was right to bet big on the national food program “SNAP” (formerly Food Stamps), as an immediate way to boost the economy and help struggling families make ends meet.  People earning less than roughly $30,000 for a family of four can participate, and are given a debit card with benefits to buy food.  In the past year, SNAP has emerged as one of our nation’s best responses to the downturn (as, a few years back, it was widely seen as the most effective response our government had to the Hurricane Katrina disaster).

What did the Recovery bill do for food aid?  In the Recovery bill passed one year ago, the Congress and Obama Administration decided to immediately increase SNAP’s monthly benefits by 13%, providing another $80 each month to a family of four.  Last month, modest additional funds were provided to states to ensure that increasing numbers of families can be served.

More importantly, what has this money done for families and the economy?  First and foremost, the expanded food aid has helped an unprecedented number of families get by.  An all-time record 1-in-8 Americans is currently participating in SNAP, using a debit card to buy their groceries at local stores and farmer’s markets.  Second, the economic impact of this food spending cannot be overstated.  USDA reports that this increase is creating or saving 100,000 jobs.  Plus, every $5 in SNAP purchases leads to $9 of economic activity, according to USDA researchers.  It’s no coincidence that as more families begin participating in SNAP, more grocery stores – including Target and Costco – began accepting SNAP as payment.  SNAP is helping grocery stores and the entire food sector bounce back from this recession.

The press is increasingly shining a spotlight on how SNAP is working for families.  The New York Times reporter Jason De Parle ran a groundbreaking story with county-by-county data on the sharp increases in participation and decrease in stigma. http://www.nytimes.com/2009/11/29/us/29foodstamps.html   A follow-up story chronicled the striking stories of people who have no other income or help but SNAP, as other income supports fail to respond to the crisis (for example, Unemployment Insurance runs out and doesn’t cover all workers, and CalWORKs has time-limits and other barriers for families seeking aid).  http://www.nytimes.com/2010/01/03/us/03foodstamps.html

Tragically, many California have missed out on this benefit.  Our State continues to have the lowest participation rate of almost every other state, as Congressman Joe Baca recently wrote on the Huffington Post.  http://www.huffingtonpost.com/rep-joe-baca/when-it-comes-to-lack-of_b_420022.html  The State could quickly align itself with other more successful states – for example, moving to a less bureaucratic semi-annual reporting schedule for families, rather than quarterly, and dropping the expensive finger-printing systems that two state audits have found ineffective.  When the Governor calls for more federal funds, his own SNAP state policy is the first place he should look to make change:  after all, SNAP benefits are 100% federally funded, with only a modest state contribution for administrative costs.

Of course, most of all, the SNAP numbers are terrible confirmation that so many Americans are suffering -- especially children whose health, learning, and well-being is harmed by malnutrition of any kind.  But, it’s some relief in these tough times that the SNAP program is working largely as intended, providing needed food and relief and helping families and our economy bounce back.

Kim McCoy Wade