SNAP

The Real Benefits of SNAP

SNAP benefits are distributed to participants in the program; but the real benefits are the contributions SNAP makes to society as a whole. SNAP has been called “the cornerstone of the nation’s nutrition safety net” (LANDERS), and is one of the most important programs in place to prevent hunger and food insecurity in the United States. The program has also been shown to be an economic boon for the nation, increasing consumer spending in supermarkets and grocery stores across the nation. Here are just some of the positive things that SNAP does.

Hunger and Poverty Prevention

  • SNAP helps the poorest of Americans: almost 90% of SNAP households live below the poverty line, and about 40% of SNAP households have incomes less than half of the poverty line (approximately $9,155 for a family of three)
  • Families with the greatest need in SNAP receive the largest benefits
  • SNAP took 2.4 million children out of severe poverty in 2005 (brought their incomes to above 75% of the poverty line)
  • SNAP reduces the likelihood of being food insecure (i.e., cannot rely on consistent access to sufficient amounts of food) by 30% and being very food insecure by 20%
  • SNAP currently helps over 40 million Americans avoid hunger: 49% of SNAP recipients are children and 52% are households that include children (meaning that a total of 76% of all SNAP benefits go to households with children)

Economic Benefit

SNAP participation correlates with economic cycles.

  • According to the USDA’s Economic Research Service, each $1 billion of retail generated by SNAP creates $340 million in farm production, $110 million in farm value-added, and 3,300 farm jobs
  • Every $1 billion of SNAP benefits also creates 8,900-17,900 full-time jobs
  • An additional $5 of SNAP benefits generates $9 in total economic activity
  • 83% of SNAP benefits, equal to $53.4 billion, were spent at 36,500 supermarkets around the U.S.; the remaining 17% was spent at 180,000 small retail stores (including grocery stores, farmers’ markets, wholesalers, and meal services), for a total of $11 billion
  • SNAP beneficiaries spend more dollars on food in local stores than eligible non-participants
  • An increase in SNAP participation by 5% would result in 2.1 million low-income Americans receiving $973 million in SNAP benefits, generating $1.8 billion in new economic activity

SNAP and the Recession

  • SNAP is considered the most effective and responsive federal program to provide assistance during economic downturns
  • Participation in the SNAP program correlates with periods of economic expansion and retraction; so when the economy suffers, SNAP can provide an immediate and temporary safety net for individuals who lose their jobs (and sustain consumer spending at the same time)
  • SNAP provided $4.3 billion in additional economic stimulus in 2009
  • Each dollar of SNAP benefits generates an estimated $1.79-$1.84 in economic activity

Cultivation of Self-Sufficiency

  • SNAP benefits help American workers meet nutritional needs, meaning they are more likely to be productive and will take fewer sick days
  • 50% of all new entrants to the SNAP program will leave the program within 9 months as they become more financially stable
  • SNAP benefits help individuals leaving the Temporary Assistance for Needy Families program by supporting their transition to economic independence
  • SNAP benefits decrease by only 24-36 cents for every additional dollar of income (much less than most federal programs), thus encouraging SNAP recipients to work more or find jobs with better pay

Disaster Response

  • SNAP is one of the most efficient emergency response programs maintained by the government
  • In 2005, SNAP provided more than 2 million households with around $1 billion in emergency food assistance

Sources:

Center for Budget and Policy Priorities. (2011, March 11). Policy Basics: Introduction to the Supplemental Nutrition Assistance Program (SNAP). Retrieved from: http://www.cbpp.org/cms/index.cfm?fa=view&id=2226

Feeding America. Supplemental Nutrition Assistance Program (SNAP). Retrieved from: http://feedingamerica.org/how-we-fight-hunger/programs-and-services/public-assistance-programs/supplemental-nutrition-assistance-program.aspx

Leftin, J., Eslami, E. & Strayer, M. (2011). Trends in Supplemental Nutrition Assistance Program Participation Rates: Fiscal Year 2002 to Fiscal Year 2009. USDA/FNS.

Ratcliffe, C. & McKernan, S-M. (2010). How Much Does Snap Reduce Food Insecurity? The Urban Institute. Report No. 60. http://ddr.nal.usda.gov/dspace/bitstream/10113/42004/1/CAT31063495.pdf

Supplemental Nutrition Assistance Program (Food Stamps). Retrieved from: http://www.results.org/issues/us_poverty_campaigns/health_care_for_all/supplemental_nutrition_assistance_program/

USDA/FNS. The Benefits of Increasing the Supplemental Nutrition Assistance (Snap) Program Participation in Your State. Retrieved from: http://www.fns.usda.gov/snap/outreach/pdfs/bc_facts.pdf

USDA/FNS. The Business Case for Increasing Supplemental Nutrition Assistance Program
(SNAP) Participation. http://www.fns.usda.gov/snap/outreach/business-case.htm