STEP FORWARD - Shriver Center

By Wendy Pollack, Director, Women’s Law & Policy Project

The combination of a weak economy and the inflation of food prices has taken its toll on all households, but low-income households have been particularly hard-hit. As the national unemployment rate rose to 5.7 percent in July, the number of people receiving food stamp benefits hit a record high of over 28 million. The Illinois unemployment rate in July stood at 7.3 percent. Recent flooding has only compounded the difficulties for residents of the affected Illinois counties. Illinois is experiencing record numbers of food stamp recipients as well. In April the number of people receiving food stamps was almost 1.3 million.

The cost of food between May 2007 and May 2008 increased 5.8 percent, according to the U.S. Department of Labor. Milk increased by 13.5 percent, and bread increased by 14.1 percent. Hefty increases are expected in 2009. With no corresponding increase in the amount of their food stamps, recipients’ food stamp allotments have progressively run out earlier and earlier in the month, leaving individuals and families to turn to food pantries for help. In turn, the food pantries, which have seen a significant increase in visits, are worried because donations have been decreasing as people try to cut back on spending. Even with the rise of food stamp participation, there are still individuals and families who are eligible but are not taking advantage of the program. The Greater Chicago Food Depository reports that between 30 percent and 40 percent of visitors to food pantries, soup kitchens, and shelters in Cook County, Illinois, may be eligible for food stamps but have not applied.

One of the quickest and most cost-effective ways to stimulate the economy while helping those struggling economically is to increase the amount of food stamp benefits. Enacting a raise in food stamp allotments, even a temporary one, would get money out quickly to be spent in local grocery stores across the country and generate in local communities nearly twice as much economic activity as the investment would cost. An increase was not included in the economic stimulus legislation that passed earlier this year. The need is even greater now.

Congress recently reauthorized the Food Stamp Program as part of the Food, Conservation, and Energy Act of 2008, also known as the 2008 Farm Bill. Effective October 1, 2008, an increase in the minimum benefit for one- and two-person households will be indexed to inflation so that the minimum benefit will increase annually. Other beneficial provisions include the elimination of the cap on the deduction for dependent care expenses, the deduction from income of the full cost of dependent care, the exclusion of certain combat-related military pay from consideration as income, and the exclusion of education accounts (e.g., 529s) and retirement accounts (e.g., IRAs) from countable resources. However, the Farm Bill amendments are not enough to stave off the food insecurity that too many low-income individuals and families confront everyday. Congress must act immediately to strengthen the Food Stamp Program and increase food stamp allotments for all recipients as part of another economic stimulus package.

States must do their share not only by ensuring that all those who are eligible for food stamps actually receive them but also by implementing supplemental nutrition assistance programs. The Shriver Center has recommended to the Illinois Department of Human Services that Illinois implement some version of this program, such as a $50 per month supplement for low-wage workers similar to the programs that twelve states recently started. The nutrition supplement (instead of $50 in cash) has the benefit of not reducing the family’s food stamp monthly allotment. We all must ensure that parents no longer have to skip meals to make sure that their children have something to eat.

For more information about the rising cost of food, the effects of hunger and food insecurity, and action on the federal level, go to the Food Research and Action Center (FRAC) website, http://www.frac.org/. For more information, contact Wendy Pollack, director, Women’s Law & Policy Project, Shriver Center, at wendypollack@povertylaw.org.

Tags: food stamps, Hunger / Nutrition, low-income, Public Benefits, unemployment

This entry was posted on Friday, August 29th, 2008 at 10:13 am and is filed under Welfare and Work Supports, Women's Law and Policy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.