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Hundreds of thousands will lose food stamps in April

by Daniela Gschweng
70 mayors of cities such as Los Angeles and Detroit already addressed the US government in an open letter in August last year and asked it to refrain from the planned changes. "Every additional five dollars invested in SNAP generates nine dollars of economic activity," they wrote, "We urge you to abandon this project."
USA: Hundreds of thousands will lose entitlement to food stamps
38 million inhabitants of the USA are dependent on state food vouchers.

Daniela Gschweng - The Trump government cuts food aid. It harms not only the poorest people, but also its own economy.

[This article published on Feb 19, 2020 is translated from the German on the Internet, https://www.infosperber.ch/Artikel/Politik/USA-Hunderttausende-verlieren-Anspruch-auf-Essensmarken.]


In April, the criteria for US food aid, the "Supplemental Nutrition Assistance Program" (SNAP), will be tightened. Hundreds of thousands of people will thus lose an important survival aid over the next few months and will no longer receive "food stamps".

Further cuts planned by the US Department of Agriculture (USDA) could cut two to four million people from food aid. This cutback will affect mainly the poor who are not supported by any other social program, as well as minorities, but also the economy in rural areas and urban centers.

A small change in detail

The Trump administration argues that the time to cut social security benefits has never been better than now. The economy has recovered from the last crisis, as has the labour market. "Millions of people no longer need food stamps," declared President Trump at the World Economic Forum in Davos. "They have jobs. They're doing really well," the New York Times quoted him as saying.

In detail, there is one small change: Healthy ("able-bodied") adults without children who have not worked 80 hours a month for at least three months over a three-year period will only receive SNAP vouchers for three months. This restriction was already introduced in 1996 under President Clinton. However, US states can extend the period of entitlement. From April 2020 this possibility will no longer exist.

The cuts affect rural America in particular

An estimated 600,000 to 700,000 people will not be able to meet the more stringent requirements. Be it because they cannot work regularly or because they cannot find enough work. On the other hand, more than half of the US states fear that the cuts will cause lasting damage to the US economy. And they will do so precisely where those who need help most live. And also a good portion of those who voted for Trump.

Of the 150 districts with the highest number of SNAP recipients, 136 are in rural areas. The new regulation affects mainly rural areas such as Alaska or Mississippi. Small grocery stores there are dependent on the sales they make through SNAP vouchers. The retailer Sam Attam from Detroit, for example, reports that SNAP funds account for up to 80 percent of his turnover. In a store in Alaska, they provide 40 percent of the profit, according to "Eater".

In the countryside, the cuts could affect everyone

People who live in remote areas tend to shop locally. If these social benefits are lost, smaller shops shrink even more or have to close down completely. For the population in structurally weak areas, the situation is getting worse.

Not only the employees but also the inhabitants who are better off would feel the consequences of the cuts. The farmers who have grown and harvested the food, the delivery driver who has brought it in, and also the energy suppliers, for example. The danger that economically weak areas of the USA will bleed even more is great.

Even the USDA itself knows this. Every dollar that the US spends increases GDP by 0.8 to 1.5 dollars. If the money goes to the lower income groups, the multiplier is higher, writes the ministry in an estimate. Poor people usually spend social benefits immediately and thus primarily promote the local economy. With every dollar spent by the US government on SNAP, at least 70 cents are shifted to other economic sectors, and hundreds of thousands of jobs are created through SNAP.

Three to four million likely to be affected by further cuts

A total of 38 million people in the USA receive SNAP food vouchers. Two other amendments that have not yet been adopted would cut off another three to four million from food aid. The possibility of classifying families as needy on a flat-rate basis and automatically registering people covered by other social programs for SNAPs will be removed. There will also be a change in the basis of calculation.

70 mayors of cities such as Los Angeles and Detroit already addressed the US government in an open letter in August last year and asked it to refrain from the planned changes. "Every additional five dollars invested in SNAP generates nine dollars of economic activity," they wrote, "We urge you to abandon this project. Fourteen U.S. states, New York City and the District of Columbia filed suit in January against the scheme, which was adopted in December 2019.

Welfare organizations cannot close the gap

Meanwhile, charities, food banks and soup kitchens, which distribute food with no or less stringent conditions, are preparing for a rush. They cannot compensate for the loss of state welfare. Instead of the nine meals that SNAP still provides, they can serve about one meal.
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