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 P: 517.487.5436 • F: 517.371.4546 • WWW.MLPP.ORG 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.
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