Full report in PDF

October 2013
Melissa K. Smith, Senior Policy Analyst
Food Assistance at Risk
A
proposal being considered by Congress could eliminate food assistance for almost 4 million Americans,
including seniors, children, people with disabili es, and
veterans. Yet more than 1.6 million people s ll live in
poverty in Michigan and 424,000 cannot find work in this
s ll struggling economy. Cu ng food assistance funding
would hurt families and jeopardize Michigan’s fragile economic recovery.
In September the U.S. House of Representa ves passed a
bill to cut the Supplemental Nutri on Assistance Program
(SNAP), known as Food Assistance in Michigan, by almost
$40 billion over the next 10 years. This is in sharp con-
PAYING STATES FOR ENDING SNAP FOR POOR
FAMILIES THAT CANNOT FIND WORK:
WHO?
trast to the $4 billion in cuts over
the same period contained in the
bipar san Senate Farm Bill that
passed this past summer. The cuts
in the House SNAP bill are found in
very harmful provisions that will strike at millions of the
most vulnerable Americans and would come on top of an
es mated $5 billion in cuts to food assistance when Recovery Act expansions to the SNAP program expire Nov. 1
and 1.7 million Michiganians see their benefits cut by
$183 million. Here is an overview of the major SNAP cuts
in the House legisla on (H.R. 3102):
THE HOUSE BILL uses a carrot-and-s ck approach
by pushing states to kick families off of SNAP and
punishing them if they don’t.
The carrot: States that implement this op on would be
 Most adults, including parents with
rewarded by being able to keep up to half of the federal savings found in ending SNAP for these families.
States could then use that money for any purpose –
including tax cuts and special interest subsidies.
children as young as 1 year old
 Average income is 42% of the
poverty line, or $8,200 for a family
of three
The s ck: States that decline to cut families that can’t
Not quite a “work” requirement: This provision introduces a “work” requirement that would allow states to
cut off an en re family’s SNAP benefits, including children, if the parent is not working or par cipa ng in job
training. This is true regardless of the availability of jobs
or job training slots and the family can be cut off for an
unlimited me.
find work from SNAP would lose all federal matching
funds for their SNAP employment and job training
programs. This punishes the state and exhibits a total lack of commitment to helping the poorest families get jobs in our s ll-struggling economy.
Outcome: Despite this provision’s focus on “work” it
does not provide any funding for work supports but instead encourages states to remove families from SNAP
and rewards the states with money that they can spend
however they like.
PROMOTING ECONOMIC SECURITY THROUGH RESEARCH AND ADVOCACY
1223 TURNER STREET • SUITE G1 • LANSING, MICHIGAN 48906
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A UNITED WAY AGENCY
CUTTING OFF UNEMPLOYED CHILDLESS ADULTS
EVEN WHEN JOBS ARE SCARCE:
WHO?
ing program, but nothing is available. In Michigan,
212,000 of the poorest adults in the state will lose food
assistance in 2014 alone under this provision. The waiver
would also become unavailable in the future should unemployment soar again.
 Childless adults without disabilities ages 18-50
Did you know?
 40% are women
These waivers are designed to kick in during periods of
high unemployment. As the economy improves, they
would automa cally end anyway, without this legisla on.
 1/3rd are over 40
 About half are white, a third is African
American, and a tenth is Hispanic
 About 40% live in urban areas, 40% in
suburban areas, and 20% in rural areas
 Average income is 22% of the Federal Poverty
ELIMINATING A COST-SAVING OPTION THAT
HELPS POOR WORKING FAMILIES WITH HIGH
CHILD CARE AND HOUSING EXPENSES:
Level, about $2,500 per year
WHO?
A three-month me limit: Currently, childless adults
without disabili es who receive SNAP are subject to a
three-month me limit out of every three years unless
the recipient is working or par cipa ng in job training at
least 20 hours a week.
The waiver: States are allowed a temporary waiver from
this me limit in areas with high unemployment. In the
wake of the recession, 45 states are currently using this
waiver, including Michigan. In fact, Michigan’s history of
high unemployment has resulted in the state u lizing the
waiver for almost a decade. Even now, approximately 1 in
11 Michiganians are unable to find work in an economy
that is simply not producing enough jobs for all that want
and need to work.
THE HOUSE BILL eliminates this waiver, regardless
of the level of unemployment or lack of jobs.
Outcome: Na onally, 1.7 million people will lose SNAP
benefits including 50,000 veterans, even if they want to
work and are willing to take a job or par cipate in a train-
 Low-wage working families with high expenses
for child care and housing costs, most of
whom are seniors or single mothers with two
young children. They receive an average of
$100 a month to help pay for food.
The Categorical Eligibility Op on allows states to extend benefits to certain low-income households with
gross incomes or assets modestly above federal SNAP
limits. States use this op on to reduce paperwork, cut
administra ve costs, serve working families with high
child care or shelter costs and allow poor households to
retain modest assets. Over 40 states have taken this opon, including Michigan.
THE HOUSE BILL eliminates the categorical eligibility
op on.
Outcome: 2.1 million people would lose SNAP in 2014,
as would another 1.8 million over the next decade. In addi on, 210,000 children would lose free school meals
they were receiving because of categorical eligibility.
Other Benefit and Program Cuts Contained in the Bill Would:
Eliminate the “Heat and Eat” op on that allows states to
Permanently deny SNAP to certain ex-offenders for life if
simplify the way they determine household eligibility when
they were convicted of one of a specified list of violent crimes
considering a family’s u lity costs. 850,000 households are
a er the bill’s enactment, regardless of whether they had
expected to lose an average of $90 a month in SNAP benefits.
served their sentence and complied with all terms of release,
proba on, and parole.
Eliminate the current performance incen ves system that
encourages states to reduce payment errors and improve
services to low-income families. Under this system the SNAP
error rate for overpayment dropped to just 2.77% in 2012.
Cut funding for nutri on educa on that promotes healthy
ea ng choices among low-income households.