SNAP benefits, commonly known as food stamps, were initially begun by FDR during the Depression, and the program was expanded in 1964 by President Johnson. Using a system dependent on your income, ability to work, and number of children, 36 million people are currently registered for SNAP benefits, and millions of stores across the nation have approved usage of SNAP benefits cards. However, these statistics will soon diminish due to Trump’s most recent attempts to limit the program.
In late 2019, despite massive protests, the Trump administration announced its finalized decision to pass a rule which would “press states to carry out work requirements for able-bodied adults without children that governors have routinely been allowed to waive, especially for areas in economic distress.” This rule will effectively remove the 700,000 SNAP users who identify as able-bodied adults without dependents (ABAWD) from the program.
Currently, ABAWDs do not qualify for more than 3 months of SNAP benefits if they have not been working or been involved in a training program for 36 months, unless their area of residence holds a waiver. Waivers are provided from the state to specific areas with insufficient jobs or a 24-month unemployment rate 20% above the national average, which is about 3.5%. Those who qualify for a waiver can continue receiving SNAP benefits while following state-enacted limitations.
Under Trump’s rule, though, waivers are provided under the requirement that the area’s unemployment rate is at least 6%, which is more than the previous 20% above the national average. 20% above the national average previously included areas with unemployment rates of above 4.1% but below a total 6%. This means that ABAWDs in areas with unemployment rates which are 20% above the national average but less than an overall 6% will be cut from the program.
His decision also proposes an eligibility adjustment that would prevent those with incomes 200% above the poverty line from qualifying for SNAP benefits. While this number seems large, since the poverty line has long been considered a wildly inaccurate measure of impoverishment because it has continued to get farther and farther from the median family income and doesn’t include bare necessities like clothing, shelter, and utilities, those who function above the poverty line but are genuinely in poverty are still affected. The eligibility adjustment will thus impact hundreds of thousands across the country. This change in SNAP eligibility will also prevent about one million children from receiving free or reduced meals.
Unfortunately, losing food stamps also means many families will no longer qualify to receive food from charity organizations like the Salvation Army or local food banks, since qualifying for government assistance is the main component in qualifying for charity assistance. However, the overall impact of this rule also affect those who do not receive food assistance.
Decreasing food stamps will massively decrease GDP, as each $1 billion in SNAP mirrors an increase of GDP by $1.54 billion, meaning even more than the $5.5 billion in cuts will be lost from GDP. This decrease in GDP can lead to an increase in price level as overall demand in the economy falls, leading to some inflation and harmful impacts on the entire economy. SNAP expenditure can also help promote small businesses that accept food stamps, but the newly approved rule will decrease small grocers’ revenue by an estimated $177 per month, according to the USDA. Further, some 570 thousand jobs had been created thanks to the 2017 increase in SNAP benefits, but these benefits will likely be lost once the rule is fully enacted.
Trump’s decrease in government spending on food-assistance programs by $5.5 billion is implemented with the intent of using $300,000 of the money to extend control of Medicaid spending to the states who receive it most. However, the looming question remains: is removing 700 thousand individuals from receiving much-needed food alongside harming an entire economy and children really the way to go about this? Many people fighting the food stamp limitation have pointed to Trump’s recent 10%, or $56 billion, increase in military spending which led to a total of $639 billion spent on the military in the fiscal year 2018. Perhaps a military spending reduction could provide the funds needed to shift Medicaid control.
Trump’s new food stamp rule goes into effect on April 1st, 2020, and is not anticipated to be stopped by legal or legislative backlash. The impact this rule will have on millions of people likely limit Trump’s support in the following election. This may be the only positive of this new rule; let’s keep our hopes high and until next week, eat the rich.