National Perspective : POLITICS : Overhauling Food Stamps

House Republicans, citing widespread fraud and escalating costs in the food stamp program, propose forcing more recipients to work and reducing the rate of growth. Critics charge that the proposed slower growth--estimated to save $16 billion over five years compared to current budgets--will be too tough on children and legal immigrants.

* The program: The modern program began in 1961 and was made permanent by the Food Stamp Act of 1964. In 1974, Congress required all states to offer food stamps to low-income households under standards set by the U.S. Department of Agriculture. Food stamps make up one of the federal government’s largest entitlement programs. The fiscal 1995 federal budget calls for spending $27.7 billion, including $1.5 billion in administrative costs. States pay about the same in additional administrative costs.

* Who qualifies: Households can have no more than $2,000 in assets readily convertible to cash. Houses and automobiles are excepted, provided the automobile’s value is under $4,500. The asset ceiling increases to $3,000 if one member of the household is over 60. Gross monthly income must be 130% or less of federal poverty levels and net income must be must be 100% or less. (Net income reflects approved deductions, such as child care expenses). Households with an elderly or disabled member are subject only to the net income test. Recipients must have a social security number, and able-bodied adults to age 59 must register for work.

* Proposed changes: Under a bill approved by the House Agriculture Committee, all able-bodied adults to age 50 would be required to work or lose their benefits after 90 days. Food stamps would be denied to legal immigrants. Additional savings would be achieved by cracking down on fraud and holding the increase in cost of food allowances to 2% annually. A plan to turn the program over to the states entirely in the form of block grants was rejected at the urging of farm-state Republicans.

* Fraud: Food stamps can be sold on the black market for 50% to 70% of face value, resulting in $2 billion to $3 billion in fraud losses annually. To combat fraud, eight states are experimenting with electronic benefits transfer cards, which allow grocery stories to bill the program directly for purchases by recipients.

* Next step: Food stamp reform will be joined with other parts of the Republican “contract with America” welfare bill for a House vote this month. The Senate began working on welfare reform proposals last week, and has not scheduled hearings on food stamps.

Who Gets Food Stamps BY AGE Children: 52% Adults: 42% Elderly: 7% BY RACE White: 42% Black: 34% Latino: 16% Asian: 3% Other: 4%

How Many Participate (in millions) 1993: 27 million Total Federal Cost (in billions of dollars) 1993: $27 billion ***

What It Can Buy: Any food or food product sold at any of the 207,000 government-approved retail food stores. Also seeds or plants to produce food at home.

What It Can’t Buy

Pet food

Vitamins or medicine

Paper or cleaning goods

Alcohol

Tobacco

Store-prepared food that is ready to eat

Maximum Amount Per Month

Household size / money allotment per month 1: $115 2: $212 3: $304 4: $386

Income Guidelines

Household size Gross monthly income Net monthly income 1 $798 $614 2 1,066 820 3 1,335 1,027 4 1,604 1,234

VOICES

“This is just a safety net, not a trampoline. You can’t play on it for years.” --Rep. Mark Foley (R-Fla.)

“Were talking about children here. Fifty-two percent of the food stamps go to children in poverty.”--Rep. Karen L. Thurman (D-Fla).

Source: U.S. Department of Agriculture