Call Made to Change Food Stamp Program

A number of years ago, we remember a director of category management at one of the largest supermarket chains telling us about the midnight rush his 24/7 stores saw at the beginning of every month as consumers on food assistance had new funds placed on their EBT cards. He was concerned about his shoppers barely "scrimping by" as they tried to stretch food bought earlier in the month until the new period began.
Now comes an opinion piece on the Bloomberg News site written by Peter Orzag, the current vice chairman of global banking at Citigroup and former director of the Office of Management and Budget in the Obama administration, which makes a pretty solid argument for funds to be broken into two periods.
Mr. Orzag cites research that students whose families are on assistance get into more trouble as the month goes by. Life in SNAP (Supplemental Nutrition Assistance Program) households become more stressful as the amount of food shrinks and kids are thought to act out more as a result.
According to the U.S. Agriculture Department’s Food and Nutrition Service, more than 25 percent of families receiving assistance go through their entire monthly allotment in the first week after receiving it. A family of four receives around $500 a month from the government. Roughly 45 million children are SNAP beneficiaries.
Discussion Questions: Do you agree that there is a case for breaking Supplemental Nutrition Assistance Program (SNAP) payments into two periods every month? What other changes, if any, do you think grocery industry retailers should get behind in improving SNAP?
Join the Discussion!
12 Comments on "Call Made to Change Food Stamp Program"
You must be logged in to post a comment.
You must be logged in to post a comment.
This is a misused and abused program. Dividing payments up over the month is just the beginning. We have millionaires on Food Stamps in one state and poor people who just happen to have a decent car and a little bit of savings, not be able to get Food Stamps in another state. Realistically we need to just do away with the program and replace it with a rice and beans ration, along with perhaps a voucher for some fresh produce. Put junk food and fast food off limits. I’ve gone to kid’s birthday parties that were catered with Food Stamps. The undocumented gals at the hair and nail salon often get “lost” Food Stamp cards in exchange for services. If we replace Food Stamps with a life sustaining rice and beans program we can cut costs from the program and stop abuse. I really doubt we will see very many pedicures being paid for with 25 lb bags of rice.
As previously stated, the government assistance programs are heavily burdened with administrative costs. A single distribution of stamps having 2 or 4 or more timed fund distributions would much more effective and easier to manage. Point of sale systems are now capable of two way communications. Setting up national account IDs with timed release management as well as other options for increase, decrease, benefit termination and restore is easy and cheap. Linking health needs is also easy and cheap to maintain. There are plenty of security methods to protect the user and administrator. The government’s forward thinking is truly in need of education of economic means to supply services.
Without getting into a purely political argument here, I’ll say that this idea only attempts to treat one symptom, while the whole problem remains largely unmonitored. It’s a systemic problem that needs complete rethinking. Good luck on that within our lifetimes.
Whoa! I’m a complete neophyte regarding this issue. Does anyone know if reports exist that break out the items purchased in a detailed way — not just broad categories? How about some statistics showing the overall rate at which the stamps are used, i.e., what percentage is spent in week 1, week 2, etc.? What percentage of stamps are “lost?” Where can I find a list of allowable items? Have any retailers been charged with fraudulent usage? I could use some help to get started reducing my abject ignorance on this topic. Thanks!
You can find a list of eligible/ineligible items on the USDA site at http://www.fns.usda.gov/snap/retailers/eligible.htm.
According to the site, households can use SNAP benefits to buy:
Foods for the household to eat, such as:
— breads and cereals;
— fruits and vegetables;
— meats, fish and poultry;
— dairy products;
— seeds and plants which produce food for the household to eat.
In some areas, restaurants can be authorized to accept SNAP benefits from qualified homeless, elderly, or disabled people in exchange for low-cost meals.
Households cannot use SNAP benefits to buy:
— Beer, wine, liquor, cigarettes or tobacco;
— Food that will be eaten in the store;
— Hot foods.
Any nonfood items, such as:
— pet foods;
— soaps, paper products;
— household supplies;
— vitamins and medicines.
What if we were all paid once a month. Do we have the discipline it would take to manage our money to last the full month? I know a lot of companies in Europe do pay their employees once a month and if memory serves me right a lot of our military are paid monthly too. I do think this may be a good idea and it may also be an idea that should be voluntary. Let the recipients decide. It would also be a good idea for those retailers that are bombarded on one day a month so that it would be two days a month and therefore would be more cost effective for these retailers as well as limit the number of stock outs during the once a month shopping spree.
SNAP needs to be overhauled, without a doubt! Twice monthly checks wold certainly relieve recipients of some of the responsibility of budgeting. But more fundamentally, the “food” that is currently qualified should be subjected to the Michelle Obama test. All candy, chips, and salty snacks should be eliminated. Soft drinks are certainly suspect. The facts are that the SNAP program encourages poor nutrition and this can be corrected by eliminating junk food from the list of products eligible for purchase. If someone has any intention of doing good, then let’s start with nutrition.