Declines in Food Stamp and Welfare Participation: Is There a Connection?

By Sheila R. Zedlewski and Sarah Brauner, Urban Institute

A recent report, "Are the Steep Declines in Food Stamp Participation Linked to Falling Welfare Caseloads," finds that at all levels of income, former welfare recipients were more likely to leave the Food Stamp program than families that had not been on welfare. Among the poorest of the poor, former welfare families stopped using food stamps at twice the rate of nonwelfare families.

"Families that have the most difficulty maintaining a solid income base, those at 50 percent of the federal poverty line and below, also have the most difficulty maintaining access to food stamps," said report author Sheila Zedlewski, Director of the Income and Benefits Policy Center at the Urban Institute. "Food stamp benefits can make a huge difference in the income available to these families."

Based upon a series of questions in the 1997 National Survey of America’s Families that addressed financial security, families that stopped receiving food stamps were relatively insecure in their ability to pay for food. About two-thirds of families that left the Food Stamp program reported some difficulty affording food, and one-third reported severe difficulties. Neither income nor former welfare status made much difference.

Income eligibility does not explain the steep decline in Food Stamp program enrollment. About two-thirds of families that left the Food Stamp program appeared to be eligible for benefits on the basis of their incomes. This proportion was the same whether or not they had left welfare.

The most common reason families gave for leaving the Food Stamp program was increased earnings or a new job. Since about two-thirds of families that left the Food Stamp program appeared eligible for benefits on the basis of income, this indicates that many former welfare recipients probably did not understand the eligibility guidelines. Many others may have made a conscious choice to leave behind any government assistance.

The second most common reason given for leaving the Food Stamp program was administrative problems or hassles. Nonwelfare families were more likely to give this reason. This suggests that the new program requirements implemented as part of federal welfare reform were not a major reason why families left the Food Stamp program.

"What we find disturbing about the administrative hassle picture," explained Zedlewski, "is that the poorest families in both the welfare and nonwelfare groups were considerably more likely than the higher-income families to report leaving because of hassles."

The authors note that former welfare recipients are undergoing a transition process. Families on welfare have caseworkers who ensure that they receive food stamps along with their cash assistance. When families leave welfare, they must take on the task of ensuring that they remain on the Food Stamp program rolls. For those with the fewest resources — those at 50 percent of the poverty level and below — this may be particularly difficult.

Families that left welfare joined the large group of working poor families that have always had low rates of Food Stamp participation. "This influx highlights the importance of policy innovations that provide low-income working families better access to the food stamp benefits to which they are entitled."

You can access the entire study on the Urban Institute’s Web site.

Fast Facts about Food Stamps and Hunger in America

Between March 1994 – September 1998, the United States Department of Agriculture reports:

• Food Stamp participation fell by 9 million or 33 percent from its peak level while TANF participation dropped by 5 million or 36 percent.
• Legal immigrant participation fell by 54 percent accounting for 14 percent of the overall drop.
• Childless adults fell by 44 percent accounting for 8 percent of the total decline.
• The number of Food Stamp households receiving welfare benefits fell by 28 percent representing 61 percent of the decline.
• Between 1995 to 1997 Food Stamp rates fell by 4.4 million participants, five times greater than the decline in the number of people living in poverty.

Hunger still exists:

1. According to the Center for Budget and Policy Priorities, Food Stamps can increase a family’s household income between 41 to 4 percent.
2. State studies in IN, MD, OH, SC, WA, and WI show that most former TANF participants earn between $6 and $8 per hour. Participating in Food Stamps could help these families increase their income above the poverty level.
3. A recent report by the U.S. Conference of Mayors shows request for emergency food assistance have increased by 85 percent in the cities it surveyed.
   • Requests for help increased an average of 18 percent between Nov. 1, 1998 – October 31, 1999.
   • 58 percent of those requesting emergency food assistance were either children or their parents.
   • 67 percent of adults seeking assistance were employed.
4. USDA cites three reasons for the decline in Food Stamp participation:
   • Program changes
   • Lack of information
   • Decline in poverty rate

Policy Issues for states:

1. States can provide Food Stamps to childless adults.
2. States must do a better job at outreach and paper work reduction.
3. States must monitor activity for civil rights violations.