As part of the American Recovery and Reinvestment Act of 2009 signed by President Barack Obama on Tuesday, February 17, 2009, $19.9 billion was allotted for the Food Stamps Program.
With over 37 million across the country now living in poverty, plus millions more possibly slipping into the same condition, many people are falling in line to get their fair share of the stimulus package provided by the government and President Obama. 30 million people currently use food stamps, and the number of people lining up for food stamps application (or inquiring about food stamps eligibility) is growing rapidly.
Two birds, one stone
Obama’s food stamps extension is the centerpiece of a $20.25 billion hunger assistance plan that includes funding for free school lunch programs, meal & nutrition programs for seniors, and food bank refills.
The government sees this as an opportunity to hit two birds with one stone. The hunger alleviation plan on its own will not cure the nation’s economic problem. However, a $20.25 billion package that assists families to get more food, supports farmers, promotes healthy eating, and stimulates the local economy is indeed a good jumpstart.
Health advantage
The program, officially known as the Supplemental Nutrition Assistance Program (SNAP), distributes funds via the Electronic Benefits Transfer (EBT) card. EBT cards are like debit cards, and are used to buy SNAP-eligible food: bread, cereals, fruits, vegetables, meat, fish, poultry, and dairy products.
Under the 2008 food bill, the Department of Agriculture has allotted over $20 million for pilot projects partially targeted at guiding food stamp recipients to purchase healthy food.
If SNAP beneficiaries used the funds to buy nutritious food, they will save money and stay healthy, which can minimize their dependence on expensive healthcare.
Economic advantage
Mark Zandi, the lead economist of Moody’s Economy.com, told the House Committee on Small Business that an increase of $1 in food stamp payments would boost gross domestic product (GDP) by $1.73.
“People who receive these benefits are very hard-pressed and will spend any financial aid they receive within a few weeks,” he stated in July of last year. “These programs are also already operating, and a benefit increase can be quickly delivered to recipients.”
Using Zandi’s testament, benefits from the Food Stamps Program expansion in the stimulus package would lift GDP by over $34 billion.
