Big Myths Used To Sell Food Stamp Block Grant

May 12, 2011

I might feel better about the House Republicans’ food stamp block grant if Congressman Paul Ryan, who wrote it, were up front about the motive. Not more supportive, mind you, but less concerned — and angry.

It’s clear that the food stamp block grant, like the Medicaid block grant, aims to slash federal safety net spending. Savings on food stamp benefits, plus state administrative support would total nearly 20% over the first 10 years.

The objective here is to pare back what we’ve come to view as our government’s mission — and to offset the revenues that will be lost by the proposed tax cut extensions and expansions.

But the budget plan doesn’t justify the food stamp program that way. It relies instead of three big myths.

The first is that the safety net is likely to become — if it hasn’t already — a “comfortable hammock that lulls able-bodied citizens into lives of complacency.”

Complacency? Ryan and his colleagues obviously haven’t taken a food stamp challenge recently — or tried to support themselves and their families on an income well below the federal poverty line.

The second myth is that participation in the food stamp program is increasing at a “relentless and unsustainable” rate because states get more federal funds when they enroll people.

But, as the Center on Budget and Policy Priorities shows, the recession accounts for most of the recent uptick in food stamp spending. Costs, as a share of the nation’s economic output, will fall as the job market improves — because that’s how most of our better safety net programs work.

The third myth is that the Temporary Assistance for Needy Families program has been a roaring success and thus should be the model for other safety net programs.

The “proof” cited by the budget plan, as by other proponents of this view, is that the “reforms” it initiated cut caseloads dramatically during the first five years, while poverty rates also fell.

Lots of factors account for both, including a strong economy that made it relatively easy for TANF parents to find work — though often not long-term work at living wages.

But TANF caseloads didn’t expand when the economy cooled in the early 2000s. And, as Legal Momentum reports, only 6.6% more poor adults and children were added to the rolls during the first 19 months of the Great Recession.

That’s not because TANF is so successfully lifting poor families out of poverty. It’s because states have incentives to minimize their caseloads — and the benefits they provide. One of the biggest is the declining value of the federal block grant itself.

They’d have this same incentive if they got a fixed, inadequate sum for their food stamp programs, as they would under the House budget plan.

The plan warns that “the poor and vulnerable will undoubtedly be hardest hit” if the federal government experiences a debt crisis due to runaway spending because the “only recourse will be severe, across-the-board cuts.”

Seems the House Republicans have decided to preempt these hypothetical future cuts by making severe, targeted cuts to safety net programs like food stamps now.


House Republicans Vote To End Food Stamp Program As We Know It

May 5, 2011

I remarked awhile ago that parts of the House Republican Study Committee’s global attack on “welfare” could make their way into legislation that had a better chance of passing.

And sure enough. The budget plan House Republicans have passed includes a provision that would convert SNAP (the food stamp program) into a block grant rather like Temporary Assistance for Needy Families.

Lest one doubt the motive, the plan projects savings totaling $127 billion over the first 10 years alone. The Center on Budget and Policy Priorities estimates losses to the District of Columbia and its food stamp-dependent households at $350 million.

I’ve written elsewhere about what the block grant could mean for households that depend on food stamps to keep food on the table.

Briefly, the block grant would put an inflexible constraint on spending, while presumably increasing flexibility on issues like participation criteria and benefits.

So Congress or states, at their discretion, could — and probably would have to — change eligibility standards so that people would have to be even poorer to qualify for food stamps and/or reduce monthly benefits so that they no longer had any basis in the costs of a nutritious diet.

We can see how the spending cap/flexibility model could play out by looking at states’ TANF programs.

According to a recent Legal Momentum review, only 40% of eligible families were enrolled in TANF in 2005, as compared to 84% in the last year of its non-block grant predecessor.

Cash benefits for a TANF family of three are less than 50% of the federal poverty line in every states and less than 30% in more than half. In all but two, they’re worth less in real-dollar value than when the program was created.

The food stamp block grant proposal has other radical implications.

It would end the long-standing principle that everyone (except some immigrants) whose income falls below the cut-off can get food stamps — and for as long as their income remains that low.

As with TANF, there would be new work requirements. But unlike TANF, there’d apparently be no federal funding within the program for client assessments, job training or the supportive services some recipients would need to meet the requirements, e.g., child care subsidies.

More importantly, food stamp benefits would be time-limited, just as TANF cash benefits are. After some number of years, people would be kicked out of the program, unless states chose to cover the full costs of the benefits themselves.

Would there by any exemptions — say, for people who are too young, too old or too disabled to work? For people who are working but still can’t afford to buy enough food for themselves or their families?

The budget plan doesn’t say. Doubtful the House members who voted for it — or even the drafters — have thought through such consequential details.

All they’re concerned about is cutting federal spending, except when it comes to the more than 50% of annual appropriations that go to the military.

But, like the RSC, the budget plan styles the food stamp block grant as the next step in “the historic bipartisan welfare reform” that gave us TANF.

Here’s hoping we’ve got no bipartisan support for this one — or lock-step support from Senate Republicans either.


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