The SNAP program fills both of these stabilizing functions automatically without the need for more legislation because of its open-ended entitlement funding.Ī third function that seems to be less appreciated than the other two is that food stamps supplements the income of working poor and low-income families. Because the number of families getting benefits increases as unemployment and earnings fall during economic downturns, the program serves the Keynesian function of boosting spending during a recession, which in turn stimulates the American economy at a moment when stimulus is needed. SNAP is also a stabilizer from the perspective of the American economy. Next to Unemployment Compensation, SNAP is probably the nation’s most reliable program for helping disadvantaged families during an economic downturn. As shown in Figure 1, when unemployment goes up, so does SNAP when unemployment goes down, so does SNAP, although in both cases there is a time lag. Thus it is not surprising that the number of Americans who receive SNAP bears a striking correlation with the state of the economy. is eligible if they meet the income and resources test. Technically the United States may not have a guaranteed annual income, but in effect SNAP provides a means-tested guaranteed annual income for which every man, woman, and child in the U.S.
Because it is an entitlement, every individual or family who meets the benefit requirements – roughly low income and low resources – can count on the benefit.
From the perspective of poor individuals and families, the program is always available when need increases. This purpose of the program serves two ends. Ī second purpose of the program is to serve as an economic stabilizer. Department of Agriculture and the state agencies that administer the program, SNAP payment accuracy has improved greatly and is now the highest it has ever been. In addition, after years of intense effort by the U.S. So the program, with some exceptions, is well targeted. The average income (not counting the SNAP benefit) of families receiving SNAP is less than $9,000 per year and few families with income over 130 percent of the poverty level (about $18,000 for a mother and two children) receive the benefit. Except in cases of fraud, the benefit can only be spent on food by individuals or families that struggle with low income. The first and most important is to increase the ability of the poor to purchase a nutritionally adequate, albeit low cost, diet. The last section includes a brief discussion of SNAP work requirements. In accord with my discussions with subcommittee staff, I plan to talk about the purposes of the SNAP program, spending on means-tested programs in general and SNAP in particular, and ways that spending on the SNAP program might be reduced.
It is a privilege to testify before this important subcommittee on the Supplemental Nutrition Assistance Program (SNAP), one of the nation’s most important means-tested programs. In testimony before the House Subcommittee on Nutrition and Horticulture, Ron Haskins discusses the purposes of the SNAP program.Ĭhairman Schmidt, Ranking Member Baca, and Members of the Subcommittee:
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