Food Stamp Participation in August Up Over Month

from the FRAC

362,000 More People Participated in August 2006
Than in August 2005

But Many Eligible People Missed

In August 2006 food stamp participation at 26,127,843 persons was up over the month by 136,800 people. The overall caseload for August 2006 was 362,308 persons higher than the prior August and nearly 8.4 million persons higher than in August 2001. Nonetheless, the Program still is missing nearly four in ten eligible people. At a time when more than 35 million people in the US face a constant struggle against hunger, continuing to strengthen the reach of the Food Stamp Program is vital.

Food Stamp Program growth in recent years reflects continuing wage stagnation, state actions to improve access, the effects of the 2002 food stamp reauthorization implementation, and disaster relief. In late 2005 caseloads grew significantly to serve victims affected by Hurricanes Katrina, Rita and Wilma, but largely have returned to pre-disaster relief levels.

Overall Trends

The number of people participating in the Food Stamp Program in August 2006 was 9.2 million more persons than in 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 then likely have been driven by improved access to the program in states, including most recently for legal immigrants, by the weakened economy for low-income families, and (in September, October and November 2005) by the hurricanes.

Participation has risen in 55 of the last 68 months, (but in only three of the last eight months). Compared with August 2005, caseloads increased in all but 12 states in August 2006.

In August 2006 Massachusetts, Michigan, Iowa, New Hampshire, and North Carolina led all states in over-the-year caseload percentage increases. Louisiana, likely due to post-Katrina population losses and related factors, registered the largest over-the year caseload decline (14.1 percent). Louisiana, however, registered the second highest over-the-month percentage increase.

Research suggests that four in ten eligible people are not receiving food stamp benefits. Fortunately, tools are available to bring federal food stamp dollars into families and communities, where each dollar is estimated to produce nearly two dollars in economic activity.

Trends: 1998-2001

From December 1997 to December 2000, the food stamp caseload fell by 3.5 million 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."

Trends: 2001-2006

Unemployment and underemployment; 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 five years.

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

Caseload trends in late 2005 were affected by the temporary disaster Food Stamp Program relief in the wake of several hurricanes, relief that by December was on the wane.

A positive feature of the Food Stamp Program is its ability to meet increased need, whether due to economic changes or disasters. For information about the Disaster Food Stamp Program, go to http://www.frac.org/html/disaster/disaster_index.html and http://www.frac.org/Press_Release/07.21.05.html

Three states with large numbers of those affected by the hurricanes– Florida, Louisiana, and Texas--accounted for nearly 3.4 million of the 3.8 million person increase between August and November 2005. Also ranking in the ten states with the largest percentage increases between August and November 2005 were three other states disproportionately impacted by hurricanes— Mississippi (hit by Katrina), Georgia and Arkansas (both reportedly serving large numbers of hurricane evacuees).

Not reflected in the caseload figures was additional nutrition assistance provided to many regular food stamp households affected by the hurricanes. Many households already enrolled in the program received replacement allotments to help cope with their food losses. Additional nutrition assistance also was provided to hurricane victims through the school meals programs, Child and Adult Care Food Program, and WIC Program.

The significant food stamp service to hurricane survivors was due to a combination of factors: the entitlement structure of the program which allowed it to respond quickly to deep and urgent need; strong leadership from political appointees and career officials at the US Department of Agriculture; key efforts of state governments; efficiency of the Electronic Benefit Transfer delivery system; and outreach and advocacy by non-profit groups.