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TheStreet Open House

Food Stamps Again A Vivid Symbol In Poverty Debate

Why is it taking so long? Although the jobless rate has dropped from its 2009 peak, it remains high, leaving a historically large number of people eligible for food stamps. Since the recession began, a bigger portion of people who are eligible have signed up for food stamps than in the past.

Many people who enrolled during the worst days of the recession still qualify for SNAP cards, even if they are doing a little better now. For example, they may have gone from being laid off to working a low-paying or part-time job.

The Congressional Budget Office predicts in about a decade the number of people using food stamps will drop to 34 million, or about 1 in every 10 people.

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FOOD AND FRAUD

Abuse was a worry from the start. The 1939 food stamp program was launched in May and by that October a retailer had been caught violating the rules.

There's been progress along the way, especially after the nationwide adoption of SNAP cards, which are harder to sell for cash than paper coupons were. The government says such "trafficking" in food stamps has fallen significantly over the past two decades, from about 4 cents on the dollar in 1993 to a penny per dollar in 2008.

But many lawmakers say fraud is still costing taxpayers too much. Some people lie about their income, apply for benefits in multiple states or fail to quit the program when their earnings go up. Recipients must tell their state agency within 10 days if their income goes over the limit.

Some stores illegally accept food stamps to pay for other merchandise, even beer or electronics, or give out cash at a cut rate in exchange for phony food purchases, which are then reimbursed by the government.

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FOOD AND FARMS

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