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The Food Stamp Program

The Food Stamp Program

The Food Stamp Program (FSP) was designed to safeguard the health and well being of United States residents by raising nutrition levels in low-income households. Established by the Federal Food Stamp Act of 1964, the FSP provides eligible low-income individuals with food stamp coupons or electronic benefits that can be used to purchase food at designated FSP retailers. The FSP is a joint federal/state program; the federal government funds the cost of the food benefit, and the states funds the administration of the program. States are responsible for determining eligibility, for setting allotments, and for distributing benefits to eligible recipients.

Eligibility

To be eligible for the FSP, participants must prove that their household resources and income do not exceed the maximum amount allowed. Generally, households may have up to $ 2,000 in countable resources, such as a bank accounts or cash. Households with members over age 65 or disabled members can have up to $ 3,000 in countable resources. Homes and land are not counted as resources. Vehicles are considered to be a resource under certain circumstances, but are not counted if they are used over 50 percent of the time for income-producing purposes, if they are used as a home, or if they are used to transport physically disabled household members.

For eligibility, a recipient's gross household income cannot exceed 130 percent of the federal poverty guidelines. Net monthly income cannot exceed 100 percent of the federal poverty guidelines. The federal poverty guidelines are established by the federal government and are updated annually. Supplemental Security Income (SSI) benefits and benefits paid under the Temporary Assistance for Needy Families (TANF) program are not counted as income for FSP eligibility purposes.

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) greatly restricts FSP eligibility for certain populations. For instance, the PRWORA limits legal immigrants' access to the FSP. Able-bodied adult household members must meet certain work requirements to be eligible to receive food stamps. The PRWORA limits able-bodied adults without dependents to three months of benefits in any 36-month period. Some benefits stripped by PRWORA have been restored.

Allotment

The allotment of benefits under the FSP is based on the Thrifty Food Plan, a model low-cost diet plan. Households receive the maximum allotment for its size, less 30 percent of each household's net income. Households with no net income receive the maximum allotment. The average allotment varies from states to state, depending on food costs within the state. In 2003, the average benefit allotment nationwide was $ 84 per person or $ 195 per household.

Application Process and Use of Food Stamps

Households can apply for food stamps at a local food stamp office. Some states allow online applications. State food stamp programs will also mail applications to households seeking benefits. Once a household has been approved for benefits under the FSP, the state will issue either paper food stamps or an electronic benefits transfer (EBT) card. The EBT card is used like a debit card, automatically subtracting the cost of food stamp eligible food items from the household's food stamp account. Food stamp benefits can be used to purchase most food items and can also be used to purchase plants and seeds to grow food for the household. Among excluded items are: hot food; food to be eaten in a store; alcohol; tobacco; vitamins; medicine; and non-food items such as pet food, soap, toothpaste, and household supplies.

Copyright 2010 LexisNexis, a division of Reed Elsevier Inc.