Nothing complicated about threatening food

Eliminating BBCE might sound confusing, from the alphabet soup of terms for public programs. But it’s not. It means taking away food from Iowans’ tables.

The Trump Administration aims to threaten important public supports for people who have trouble making ends meet.

The latest challenge is to Food Stamps (formally known as SNAP, the Supplemental Nutrition Assistance Program). The administration would eliminate something called broad-based categorical eligibility (BBCE). It’s not just more alphabet soup, but an effective tool that states can use to set less restrictive asset tests and streamline administration, which curbs costs.[1]

Forty states participate in BBCE, including Iowa, allowing them to set income limits and ensure something like owning a car doesn’t count against SNAP benefits. The Administration seeks to eliminate BBCE on its own, without legislative approval.[2] This would kick 3 million individuals off of SNAP nationwide, including working families, children, people with disabilities, and seniors.

SNAP is a proven work support program for Iowans. It reached nearly 320,000 Iowans in June of 2019, helping working families and those unable to work put food on the table.[3] The program works to improve child development, educational attainment, helps to prevent disease and increase lifetime earnings of Iowans.[4] It helps keep rural grocery stores open, and pumps $35 million into the state economy each month.[5]

These wonky rule changes take food off Iowa tables. The Administration seems to want to keep these changes below the radar. While some might not notice a purely administrative action, the impact of removing BBCE from SNAP — changing the alphabet soup — means real harm for families.

Natalie Veldhouse is a research associate at the nonpartisan Iowa Policy Project. 

nveldhouse@iowapolicyproject.org

[1] Dottie Rosen, “SNAP’s ‘Broad-Based Categorical Eligibility’ Supports Working Families and Those Saving for the Future.” Center on Budget and Policy Priorities. July 2019. https://www.cbpp.org/research/food-assistance/snaps-broad-based-categorical-eligibility-supports-working-families-and
[2] Federal Register, “Revision of Categorical Eligibility in the Supplemental Nutrition Assistance Program,” July 24, 2019, Vol. 84, No. 142, 35570-35581, https://www.federalregister.gov/documents/2019/07/24/2019-15670/revision-of-categorical-eligibility-in-the-supplemental-nutrition-assistance-program-snap.

[3] Iowa Department of Human Services, “F-1 Food Assistance Program State Summary – June 2019.” July 2019. http://publications.iowa.gov/30484/1/FA-F1-2016%202019-06.pdf

[4] Feeding America, “Child Food Insecurity: The Economic Impact on our Nation.” 2009. https://www.nokidhungry.org/sites/default/files/child-economy-study.pdf

[5] Iowa Department of Human Services, “F-1 Food Assistance Program State Summary – June 2019.” July 2019. http://publications.iowa.gov/30484/1/FA-F1-2016%202019-06.pdf

New obstacles for Iowa families

Millions for work support oversight that would likely result in no savings

Senate File 334 could take food off the table and restrict health care access for some Iowans, while taking money away from much needed programs. The bill would spend $25 million per year after an initial $16 million in FY2020 to hire more than 520 state employees to verify eligibility for Iowans on work support programs such as Medicaid and SNAP (food assistance).[1] This legislation is brought to you by a Koch-funded lobbying group out of Florida.

Iowa’s Legislative Service Agency analysis indicates that the bill’s proposed “quarterly reviews have the potential to reduce public assistance enrollment, but no significant savings are expected because many items that would be reviewed quarterly are currently checked on a frequent basis.”[2]

SNAP helped more than 330,000 Iowans in January of 2019.[3] More than 560,000 Iowans are covered by Medicaid.[4] Many Iowans receiving help from these work support programs are children; many more are elderly persons in nursing homes.

Make no mistake — this bill has the sole intention of getting Iowans off of work support programs.

One in six Iowans living in working households is unable to afford basic needs such as groceries and health care on income alone.[5] Low wages are the problem and spending millions in taxpayer money to duplicate work support verification will do little to help Iowans get ahead.

SNAP is important for child development, educational outcomes and lifetime earnings.[6] Half of Medicaid enrollees in Iowa are children,[7] and 44 percent of Medicaid spending goes to services for older Iowans.[8] The challenge to Iowa policy makers is how to make sure people who need these supports can get them, not to put new obstacles in their way.

Policies that would really help Iowans get ahead should concentrate on raising wages to account for rising worker productivity. Helpful policies should reinstate workers’ rights and protections. Other policy solutions include expanding Iowa’s Earned Income Tax Credit and Child Care Assistance. It is to these solutions where Iowans need to turn their attention.

 

[1] Jess Benson, “Fiscal Note: SF 334 – Medicaid, Supplemental Nutrition Assistance Program (SNAP) Eligibility Verification.” February 2019. Iowa Legislative Services Agency. https://www.legis.iowa.gov/docs/publications/FN/1038439.pdf

[2] Ibid.

[3] Iowa Department of Human Services, “Food Assistance Report Series F-1.” January 2019. http://publications.iowa.gov/29783/1/FA-F1-2016%202019-01.pdf

[4] American Community Survey, “Health Insurance Coverage Status and Type of Coverage by State and Age for All People: 2017. September 2018. U.S. Census Bureau. https://www.census.gov/data/tables/time-series/demo/health-insurance/acs-hi.html

[5] Peter Fisher and Natalie Veldhouse, “The Cost of Living in Iowa – 2018 Edition: Many Iowa Households Struggle to Meet Basic Needs.” July 2018. Iowa Policy Project. http://iowapolicyproject.org/2018docs/180702-COL2018-Part2.pdf

[6] Feeding America, “Child Food Insecurity: The Economic Impact on our Nation.” 2009. https://www.nokidhungry.org/sites/default/files/child-economy-study.pdf

[7] American Community Survey, “Health Insurance Coverage Status and type of Coverage by State and Age for All People: 2017.” Table H105. September 2018. U.S. Census Bureau. https://www.census.gov/data/tables/time-series/demo/income-poverty/cps-hi.html

[8] Steve Eiken, Kate Sredl, Brian Burwell & Angie Amos, “Medicaid Expenditures for Long-Term Services and Supports in FY 2016.” Table 31. Iowa LTSS Percentage Trends. https://www.medicaid.gov/medicaid/ltss/downloads/reports-and-evaluations/ltssexpenditures2016.pdf

2018-NV-6w_3497(1)

 

Natalie Veldhouse is a research associate for the nonpartisan Iowa Policy Project. nveldhouse@iowapolicyproject.org

Tight margin — big difference

The two-vote House margin on the Farm Bill would mean big changes for struggling Iowa families if accepted by the Senate.

More Iowans than you might expect have a stake in what happens in Washington in the coming days on the Farm Bill. It’s not just farmers.

While the Farm Bill addresses conservation, commodities, rural development, and crop insurance, among other issues, it also carries reauthorization of the Supplemental Nutrition Assistance Program (SNAP) — formerly known as Food Stamps.

In the 2014 Farm Bill, SNAP constituted 80 percent of spending.[i] That investment makes a big difference to about 1 in 9 Iowans — and to the local stores where they use their SNAP benefit. About 350,000 Iowans received SNAP assistance in April of 2018.[ii]

The Senate proposal, which may come to a vote next week, differs markedly from the House bill, which passed 213-211 despite bipartisan opposition. The House bill would cut SNAP for 1 million households, imposing new and unnecessary work requirements on households where people are already working, or unable to work.[iii]

Robert Greenstein, president of the nonpartisan Center on Budget and Policy Priorities, summarized the challenge for low-income working people under the House bill:

Robert Greenstein,
Center on Budget and Policy Priorities

Among those likely to lose food assistance are a considerable number of working people — including parents and older workers — who have low-wage jobs such as home health aides or cashiers and often face fluctuating hours and bouts of temporary unemployment that could put their SNAP benefits at risk. In addition, substantial numbers of people with serious physical or mental health conditions, as well as many caregivers, may struggle either to meet the monthly work-hours requirement or to provide sufficient documentation to prove they qualify for an exemption — and, consequently, may be at risk of losing nutrition assistance.[iv]

The Senate bill looks to improve the SNAP job training program by using feedback from local employers on the skills and opportunities needed in the area. It continues to invest in pilot testing of job training programs, while House-proposed work requirements have not been tested in such state-level pilots.[v]

The bill would also focus assistance on underserved populations, fund nutrition education initiatives, and reauthorize SNAP. It reduces verification barriers for elderly and disabled households by extending certification periods for two to three years.

SNAP is critically important for child development, educational attainment, preventing disease, and lifetime earnings.[vi]

The Senate and House Farm Bill proposals offer decidedly different directions for a proven anti-poverty program that already assures that thousands of Iowans receive nutrition assistance.

Natalie Veldhouse is a research associate for the nonpartisan Iowa Policy Project. nveldhouse@iowapolicyproject.org

 

[i] United States Department of Agriculture, “Projected Spending Under the 2014 Farm Bill.” January 2018. https://www.ers.usda.gov/topics/farm-economy/farm-commodity-policy/projected-spending-under-the-2014-farm-bill/
[ii] Iowa Department of Human Services, “F-1 Food Assistance Program State Summary – April 2018.” May 2018. http://publications.iowa.gov/27559/
[iii] Center on Budget and Policy Priorities, “House Agriculture Committee’s Farm Bill Would Increase Food Insecurity and Hardship.” April 2018. https://www.cbpp.org/research/food-assistance/chairman-conaways-farm-bill-would-increase-food-insecurity-and-hardship
[iv] Robert Greenstein, Center on Budget and Policy Priorities, “Greenstein: Partisan House Farm Bill Would Turn Clock Back on Efforts to Reduce Hunger and Hardship.” June 21, 2018. https://www.cbpp.org/press/statements/greenstein-partisan-house-farm-bill-would-turn-clock-back-on-efforts-to-reduce
[v] Center on Budget and Policy Priorities, “Senate Agriculture Committee’s Bill Strengthens SNAP and Avoids Harming SNAP Households.” June 2018. https://www.cbpp.org/research/food-assistance/senate-agriculture-committees-bipartisan-farm-bill-strengthens-snap-and
[vi] Feeding America, “Child Food Insecurity: The Economic Impact on our Nation.” 2009. https://www.nokidhungry.org/sites/default/files/child-economy-study.pdf

SNAP changes: Ignoring what works

EITC and child care more effective than drug tests and work requirements

Work requirements for public assistance seem to be all the rage — at both the national and state levels — when other policies would do more to encourage and support work.

President Trump signed an executive order April 10 enhancing enforcement of federal public assistance work requirement laws, evaluation of program effectiveness, and consolidation or elimination of “ineffective” programs.[1] The Trump administration also is considering drug tests for SNAP (Food Stamp) recipients.[2]

Similar legislation in Iowa (Senate File 2370) intended to expand regulations on and further monitor recipients of public assistance in Iowa, but appears to have stalled as the 2018 session nears an end. This included implementing work requirements, drug testing, quarterly reviews of eligibility, and a one-year residency requirement.[3]

The Farm Bill draft[4] released April 12 would reduce or eliminate SNAP benefits for 1 million households, or 2 million recipients, according to the Center on Budget and Policy Priorities (CBPP). Work requirements would force able-bodied adults without dependents to prove every month that they work or participate in a training program 20 hours per week. Severe sanctions for noncompliance would cut off benefits for one year the first time — three years the second.[5]

Recent research found recipients under work requirements for Temporary Assistance to Needy Families (TANF) continued to live below the federal poverty level, and that small increases in employment diminished over time and did not result in stable employment in most cases.[6] In the long term, programs that provide training, skill building, and educational opportunities to recipients are shown to be more successful than only implementing work requirements.[7]

Evidence shows that people in SNAP households who can work do work. More than 80 percent work during the year before or after receiving benefits.[8]

Drug testing public assistance recipients has proven to be costly and frivolous. States that have implemented drug testing found that applicants have lower drug usage rates than the general population. The state of Missouri spent $336,297 in 2015 to test 293 of 31,336 TANF applicants and found only 38 positive results.[9]

Eleven percent of Iowans received public assistance in February of 2018.[10] Already, able-bodied adult without dependents have work requirements to receive SNAP in the state of Iowa.[11]

By contrast, the Earned Income Tax Credit and Child Care Assistance (CCA) are policies that are effective in encouraging work. In addition, Iowa could make changes in work support programs, such as CCA,[12] to reduce what are known as “cliff effects” — when families with a pay raise or a new job are faced with a net loss because a reduction in benefits exceeds the new income.

Policies that support working families, not drug testing and work requirements, would do more to encourage work, raise family incomes, and boost local economies.

 

[1] The White House, “Executive Order Reducing Poverty in America by Promoting Opportunity and Economic Mobility.” April 2018. https://www.whitehouse.gov/presidential-actions/executive-order-reducing-poverty-america-promoting-opportunity-economic-mobility/

[2] Associated Press, “Drug testing plan considered for some food stamp recipients.” April 2018. https://www.apnews.com/6f5adff5efeb4f9a9075f76bf9cf5572

[3] IA Legis, “Senate File 2370” February 2018. https://www.legis.iowa.gov/legislation/BillBook?ga=87&ba=SF2370

[4] House Agriculture Committee “H.R. 2: the Agriculture and Nutrition Act of 2018.” April 2018. 115th Congress. https://agriculture.house.gov/uploadedfiles/agriculture_and_nutrition_act_of_2018.pdf

[5] Center on Budget and Policy Priorities, “Chairman Conaway’s Farm Bill Would Increase Food Insecurity and Hardship.” April 2018. https://www.cbpp.org/research/food-assistance/chairman-conaways-farm-bill-would-increase-food-insecurity-and-hardship#_ftn1

[6] Urban Institute, “Work Requirements in Social Safety Net Programs.” December 2017. https://www.urban.org/sites/default/files/publication/95566/work-requirements-in-social-safety-net-programs.pdf

[7] Center on Budget and Policy Priorities, “Work Requirements Don’t Cut Poverty, Evidence Shows.” June 2016. https://www.cbpp.org/research/poverty-and-inequality/work-requirements-dont-cut-poverty-evidence-shows

[8] Center on Budget and Policy Priorities, “Making SNAP Work Requirements Harsher Will Not Improve Outcomes for Low-Income People.” March 2018. https://www.cbpp.org/research/food-assistance/making-snap-work-requirements-harsher-will-not-improve-outcomes-for-low

[9] Center on Law and Social Policy, “Drug Testing SNAP Applicants is Ineffective and Perpetuates Stereotypes.” July 2017. https://www.clasp.org/sites/default/files/publications/2017/08/Drug-testing-SNAP-Applicants-is-Ineffective-Perpetuates-Stereotypes.pdf

[10] Iowa Department of Human Services, “Food Assistance Report Series F-1.” March 2018. http://publications.iowa.gov/27299/1/FA-F1-2016%202018-03.pdf

[11] Iowa Department of Human Services, “ABAWD Letter.” September 2017. https://dhs.iowa.gov/sites/default/files/470-3967.pdf

[12] Peter S. Fisher and Lily French, Iowa Policy Project: Reducing Cliff Effects in Iowa Child Care Assistance, March 2014. https://www.iowapolicyproject.org/2014docs/140313-CCA-cliffs.pdf

 

2018-NV-6w_3497(1)Natalie Veldhouse is a research associate at the nonpartisan Iowa Policy Project.

nveldhouse@iowapolicyproject.org

SNAP decision could be backward

Clear progress in access to fresh, nutritious foods for children and the disabled in Iowa are at stake in the White House plan for SNAP.

The Trump administration has proposed a 2019 budget with deep cuts and fundamental changes in the Supplemental Nutrition Assistance Program (SNAP). Formerly known as Food Stamps, SNAP every month assures access to food for more than 350,000 Iowans and pumps more than $38 million into the state economy.[1]

The White House proposal would cut of about $213 billion from SNAP over the next decade. About 40 percent of benefits issued to SNAP recipients would be held back by the USDA. Some cuts would go to fund non-perishable food boxes. Other cuts would just reduce access to food for citizens.[2] The budget also would kick some recipients off the program.

Now adults who are not raising children or are disabled have just three-month of food aid over three years. The change raises the age for those who can get food under that provision to age 62. It was formerly 49. The younger adults would get nothing. Also the White House proposal eliminates the minimum benefit, and caps assistance to any household at six people.

These changes would have unfortunate effects on already high levels of food insecurity in Iowa.

An estimated 10.7 percent of Iowans are considered food insecure, meaning they lack consistent access to affordable, nutritious food.[3] SNAP assisted one in eight Iowans in fiscal year 2016. Of those families receiving SNAP benefits, 69 percent have children, and more than 25 percent of benefits go to households with family members who are elderly or disabled. The benefits are not overly generous. In December 2017, Iowa SNAP recipients received just $1.15 per meal.[4]

Food insecurity is correlated with obesity and chronic disease with adults[5] and poses serious threats to child development and school performance.[6] Research has shown that “every $5 in new SNAP benefits generates as much as $9 of economic activity by adults in families to receive benefits.” [7] SNAP spending contributes to local spending and cuts would hurt small grocers in rural Iowa.

Instead of an opportunity to choose nutritious food in the current debit card system, the administration would offer delivered boxes of foods such as canned meats, cereal and shelf-stable milk. The alleged savings from the change ignores the cost of delivery.

There has been clear progress in getting SNAP to provide access to fresh, nutritious foods for children and the disabled in Iowa. For instance, some Iowa communities have piloted a program called Double Up Food Bucks that doubles the value of food dollars up to $10 to purchase fresh produce at farmers markets in order to incentivize healthy eating.[8] Food boxes are a poor substitute for that kind of initiative.

The White House proposal takes Iowa backward on health and food access.

Posted by Natalie Veldhouse, research associate at the nonpartisan Iowa Policy Project. nveldhouse@iowapolicyproject.org

 

 [1] Iowa Department of Human Services, F-1 Food Assistance Program State Summary — January 2018. http://publications.iowa.gov/26363/
 [2] Center on Budget and Policy Priorities, “President’s Budget Would Cut and Radically Restructure SNAP Food Benefits,” February 2018. https://www.cbpp.org/blog/presidents-budget-would-cut-and-radically-restructure-snap-food-benefits
 [3] U.S. Department of Agriculture, “Household Food Security in the United States in 2016,” September 2017. Table 4: Prevalence of household-level food insecurity and very low food security, average 2014-2016. https://www.ers.usda.gov/topics/food-nutrition-assistance/food-security-in-the-us/key-statistics-graphics.aspx
 [4] Ibid, Iowa Department of Human Services.
 [5] Food Research & Action Center, “The Impact of Poverty, Food Insecurity, and Poor Nutrition on Health and Well-Being,” December 2017. http://frac.org/wp-content/uploads/hunger-health-impact-poverty-food-insecurity-health-well-being.pdf
 [6] Food Research & Action Center, “The Connections Between Food Insecurity, the Federal Nutrition Programs, and Student Behavior,” 2018. http://frac.org/wp-content/uploads/breakfast-for-behavior.pdf
 [7] U.S. Department of Agriculture, The Food Assistance National Input-Output Multiplier (FANIOM) Model and Stimulus Effects of SNAP. October 2010. https://www.ers.usda.gov/webdocs/publications/44748/7996_err103_1_.pdf?v=41056
 [8] Iowa Healthiest State Initiative, “Iowa Healthiest State Initiative Expands Double Up Food Bucks Program in Iowa,” May 2017. http://www.iowahealthieststate.com/blog/press-room/iowa-healthiest-state-initiative-expands-double-up-food-bucks-program-in-iowa/

Avoid snap judgments on SNAP use

The fact that SNAP exists says more about us as a nation than do snarky shoppers who stalk the poor in the checkout line.

Legislators have enough to do finding answers to real problems. However, some seem ready to invent problems so they can come to the rescue.

Case in point: the Missouri representative who wants to stop food assistance recipients from buying steak.

Photos, please, of this actually happening. Because common sense tells us that other than some unusual case or two, it’s just not the way people allocate their meager food assistance benefit.

Why? Let’s look at the average benefit in Iowa from SNAP — the Supplemental Nutrition Assistance Program, formerly known as Food Stamps.

People who qualify for SNAP are making less than $2,200 a month in a three-person family, about $2,600 in a four-person family. On average, their SNAP benefit as of March was about $1.18 per person per meal. That’s why they call it “supplemental” assistance: On its own, SNAP is not enough to keep bellies full, let alone fully support good family nutrition.

SNAP is there to help people piece together what they need to get by. SNAP is part of a mix of resources that includes a share of a low-wage family’s own earnings, and probably the help of a local food pantry.

During the Great Recession, SNAP clearly helped Iowans. In our slow recovery from the last national recession, the number of SNAP recipients rose to over 423,000. As things have gotten better, that number has steadily fallen and was under 393,000 as of last month — a decline of 7 percent. That’s the way it is supposed to work.

But for those who still need it, SNAP is there. This critical point should not be missed by distractions like the bill in Missouri, or others that may crop up — even in our state.

The fact that SNAP exists says more about us as a nation than do snarky shoppers who stalk the poor in the checkout line.

Do we really want people who don’t even believe in SNAP to nitpick what people can buy with it? Because those are often the people attempting to call the shots on what goes in the shopping cart.

I’m not buying what they’re selling. They can check my cart.

Owen-2013-57Posted by Mike Owen, Executive Director of the Iowa Policy Project
 Hear Mike Owen and KVFD’s Mike Devine discuss this issue in this April 9 interview.

Basic RGB

A new look for the first of the month

For those working low-wage jobs and receiving SNAP benefits, November 1 is not as good as October 1.

All right! The first of the month! Always a big day for those living paycheck to paycheck. And November 1 is no exception.

Yet, for those working low-wage jobs and receiving SNAP benefits, November 1 is not as good as October 1. SNAP is the Supplemental Nutrition Assistance Program, which many know as Food Stamps. And it’s under constant attack.In Iowa, the more than 420,000 people who count on food assistance can count on less this month than they received a month ago.

Same goes for SNAP recipients across the country, as benefits drop with the expiration of small improvements that were passed in the 2009 Recovery Act.

SNAP benefits in Iowa have averaged about $116 a month per recipient — about $246 per household.* That works out to just about $1.30 per meal per person. Take a look below at what happens to that supplemental benefit when the modest improvement from the Recovery Act goes away today.

 SNAPmonthlyCut-1-31-13

Source: Center on Budget and Policy Priorities, http://www.cbpp.org/cms/index.cfm?fa=view&id=3899

Our economy has not fully recovered from the Great Recession. And if it’s not enough that this Recovery Act improvement is expiring before the work is done, recognize that some in Congress see right now as a time to whack away further at SNAP benefits as a new Farm Bill is negotiated.

Now, we might not like to hear that some 13 percent of the state’s population is receiving food assistance. But you don’t address that issue by just cutting benefits to those people who are stuck in low-wage jobs, or are children, or are seniors, or are disabled.You need to make the jobs better, which starts with an increase in the minimum wage and pressure on Iowa businesses that pay low wages to do better. If we want a higher-road economy, we need to put a better foundation under it.

Mike OwenPosted by Mike Owen, Executive Director

* Iowa Department of Human Services, Food Assistance Program State Summary for September 2013, Report Series F-1.