Government Shutdown Threatens Food Stamp Benefits for Millions

Strategic Insights -

A record 42 million low-income people participating in the Supplemental Nutrition Assistance Program, also known as food stamps, may face severe disruptions to their benefits if the government shutdown continues into November. The Agriculture Department has warned state agencies that the federal government will run out of funds for the program in two weeks, potentially leading to significant delays, reduced aid, or even a complete halt in benefits. This would be the first time in decades that benefits have been disrupted during a shutdown.

Key Takeaways:

  • Over 42 million low-income people participated in the food stamp program in May, receiving an average of $188 per person, at a total cost of about $8 billion.
  • The Agriculture Department's Food and Nutrition Service is exploring contingency plans, but has directed state agencies to pause sending vendors electronic files to load benefits for November.
  • The agency's contingency fund is insufficient to cover full benefits for the month, which could lead to partial benefits or reduced aid.
  • Several states, including New Mexico and Oregon, have warned that food stamp recipients may experience significant delays or reduced aid.
  • A law professor at Georgetown University suggests that the Agriculture Department could use a specific interpretation of existing law to justify continuing to fund food stamps as an entitlement program, like Medicare.
  • At least one state, Minnesota, is warning that October benefits may be affected, and new enrollees may not receive benefits before November 1.

Statistics:

  • Over 42 million people participated in the food stamp program in May, the month with the latest available data.
  • The total cost of the program in May was approximately $8 billion.
  • The Agriculture Department's contingency fund is approximately $100 million.
  • The Trump administration used money collected from customs duties to fund a federal nutrition program for mothers and children known as WIC.
  • The USDA has the authority to reduce benefits based on need and household size for November.

Sources:

  • The New York Times
  • a letter from the Agriculture Department to state agencies
  • Share Our Strength, a nonprofit that supports antipoverty programs
  • Georgetown University Law Center
  • Minnesota's Department of Children, Youth and Families