Millions of Americans Could Lose Their Food Stamps as Shutdown Lingers
The agency has shifted funds from rate revenues to maintain the Special Supplemental Nutrition Program for Women, Infants, and Children, or WIC — a funding stream primarily used for school meals and other nutrition assistance programs for children — but it is likely not a sufficient funding source to cover SNAP benefits as well. Some experts speculate that the administration could also continue to administer benefits by interpreting the Food and Nutrition Act to treat SNAP as an entitlement program not subject to the annual appropriations process, like Medicare or Social Security. In a worst-case scenario, Plata-Nino said, the administration could plan for split payments, providing half the benefits at the beginning of the month and half at the end.
In economic terms, SNAP acts as an “automatic stabilizer” during times of national hardship, such as the Great Recession and the Covid-19 pandemic. More people will enroll in SNAP during times of high unemployment and then quickly spend those benefits at grocery stores, supporting the local community and helping maintain economic stability. As need decreases, so does SNAP participation. According to a 2019 USDA report, every additional dollar spent on SNAP generates $1.54 in economic activity during a downturn.
Uncertainty about SNAP could jeopardize its stability, causing confusion not only for participants who might experience a delay in benefits, but also for retailers who would normally sell to people using their EBT cards to buy food. This would be particularly difficult for small grocers whose “entire model relies on individuals going through tough times,” Plata-Nino said.
