|
Effective April 1, 2009, the American Recovery and Reinvestment
Act of 2009 (ARRA) increased monthly benefits for participants
in the Supplemental Nutrition Assistance Program (SNAP)
by an average of 15 percent. The increase not only boosted
the purchasing power of recipients for nutritious foods
but also helped stimulate the economy.
SNAP was originally slated to receive $20 billion over
5 years from ARRA—an important stimulus to the economy.
For example, most eligible four-person households have
been receiving since April 2009 an $80 increase in their
monthly SNAP allotment to spend on groceries (see chart
below). ARRA also provided nearly $300 million to States
for SNAP administrative expenses in FY 2009 and 2010.
ARRA included several provisions that affect SNAP benefit
levels and operations:
- Increased the Thrifty Food Plan (TFP)—and consequently
maximum monthly benefit levels—by an average of
13.6 percent. The TFP serves as a national standard
for a nutritious diet at minimal cost, and the retail
cost of the TFP in June of each year is the basis for
SNAP benefit levels that are usually set the following
October. Under ARRA legislation, SNAP benefit levels
would not be adjusted again until food prices caught
up to the new TFP. The Food and Nutrition Service
(FNS) estimated that normal food price inflation would
not cause food prices to exceed the ARRA-based TFP until
about 2014.
- Increased the minimum monthly benefit from $14 to
$16.
- Suspended the policy on time limits for SNAP benefits
for Able Bodied Adults Without Dependents (ABAWDs) until
October 2010. Previously, ABAWDs could receive SNAP
benefits for only 3 months every 3 years. ABAWDs still
were required to comply with State Employment and Training
Programs.
- Increased administrative funding for program operations
by State agencies by $145 million in 2009 and $150 million
in 2010.
| This
chart shows the additional amount most SNAP households
in the lower 48 States and the District of Columbia
are receiving each month. Hawaii, Alaska, Guam,
and the Virgin Islands have different tables. |
Household
size |
Increase |
|
Household
size |
Increase |
1 |
$24 |
5 |
$95 |
2 |
$44 |
6 |
$114 |
3 |
$63 |
7 |
$126 |
4 |
$80 |
8 |
$144 |
| For each
extra person, a household will receive $18. |
The planned $20 billion ARRA-increase in SNAP benefits
has been reduced with passage of the following recent
legislation:
- Funding for education, jobs, and Medicaid—legislation
enacted in August 2010 terminates the ARRA-increase
in SNAP monthly benefits as of March 31, 2014.
- Healthy, Hunger-Free Kids Act of 2010—legislation
reauthorizing USDA's child nutrition programs moves
the end date for ARRA increases in SNAP benefits forward
to October 31, 2013.
The Congressional Budget Office (CBO) estimates that
monthly SNAP benefits will drop an average of $10-15 per
person (or, about 10 percent) due to this legislation.
The original rationale for increasing SNAP benefits as
part of ARRA was that SNAP benefits are spent quickly
and have a multiplicative effect on total economic activity.
Food security improved for low-income households following
the 2009 ARRA increase in SNAP benefits, as seen in the
following report:
- Food Security
Improved Following the 2009 ARRA Increase in SNAP Benefits,
by Mark Nord and Mark Prell, ERS, USDA, April 2011.
Other relevant research includes:
- An
Analysis of Food Stamp Benefit Redemption Patterns,
by Carol Olander, Erika Jones, and Steven Carlson, USDA,
Office of Analysis, Nutrition, and Evaluation, June
2006.
- Tracing
the Impacts of Food Assistance Programs on Agriculture
and Consumers: A Computable General Equilibrium Model,
by Kenneth Hanson, Elise Golan, Stephen Vogel, and Jennifer
Olmstead, FANRR-18, USDA, Economic Research Service,
May 2002.
|
