The Evolving Landscape of SNAP

• May 24, 2023

National Grocers Association �Antitrust Statement

The National Grocers Association is committed to complying with the antitrust laws. Therefore, to assure compliance the Board of Directors, members and staff must refrain from engaging in discussion that may result in antitrust violations such as agreements to fix prices or margins, allocate markets, engage in product, supplier or customer boycotts, and refusal to deal with industry members. NGA appreciates your compliance with the law as the Board and members engage in association Board meetings, education programs and other activities to advance your competitiveness in today’s market.

Tim O’Connor

Project Consultant, NGAF Technical Assistance Center

A Brief Overview of the �Food Stamp Program

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Mim Seidel

Food Systems and Nutrition Expert

The SNAP Shopper

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Presenter Introductions and Topics

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• A look at the origins of the Food Stamp Program
• A look at the evolution of the Program
• How the Program Runs
• How Someone Gets SNAP
• How Do Stores Get Authorized to Accept SNAP
• Basic Program Numbers

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• A Brief Overview of the Food Stamp Program

• May 16, 1939 – Program Inaugurated
• City/County based
•     Two basic benefits –
• Purchase Orange stamps; Get Blue Stamps
• Orange redeemed for any food – Blue redeemed for surplus foods
•   Part of Agriculture portfolio
•   March 1943 – Program ended

Origins of the Program

�Origins of the Program - Rebirth

• May 1961 - Pilot Launched
• August 1964 – Food Stamp Act
• Purchase requirement 
• Benefits are now "general"; no more different stamps
• State run/county by county implementation

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Evolution of the Program Late ‘60’s/1970’s - Program Takes Shape

1968 - CBS Hunger in America

1971 - National eligibility rules

1971 – National Allotment Levels

1971 – Funding Foundation Set – Benefits: Federal; Admin: shared 50/50 with states

1973 - Statewide - no longer county by county implementation

1975 – Thrifty Food Plan

This Photo by Unknown Author is licensed under CC BY-SA-NC

• Federal regulations
• EPR
• Gross/net income tests
• Asset test
• Thrifty Food Plan with Annual COLAs
• Processing standards
• Categorical eligibility 

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• Evolution of the Program�1977 Food Stamp Act

How the Program Runs

• USDA – Food and Nutrition Service (FNS) is Oversight Agency
• States Run Day to Day Operations
• FNS Runs Store Operations
• Funding – Benefits are Federal; Administration Cost Are Shared 50-50

This Photo by Unknown Author is licensed under CC BY-SA

How Does Someone Get SNAP? Basic Rules

• Households Qualify
• Meet Gross and Net Income Tests
• Deductions: Standard, Child Care, Work, Shelter, Medical
• Meet Asset Test
• Benefit Calculation
• Thrifty Food Plan
• 30% of Net Income
• Benefit Makes up Difference Between the Above 2

Store Participation in SNAP

• Allowable Foods
• Staple Foods
• Accessory Foods
• Apply with FNS - Two Eligible Categories
• Category A: 3 units of 3 varieties in each of 4 food categories; perishable in 2
• Category B: More than 50% of sales are in staple foods
• Authorized for Up to 5 Years

This Photo by Unknown Author is licensed under CC BY-ND

Program Numbers Today

• Total Number of Stores - 255,000
• Some Store Types-
• Redemptions: Super Stores; Supermarkets
• Numbers: Convenience Stores; Combination Grocery/Other
• Amount of Benefits Issued
• Monthly- $8.8 billion
• Annually- $114 billion
• Total Participation
• Individuals- 41.6 million
• Households- 21.9 million

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SNAP Online

• Launched in 2019 & 2020 with  8 retailers and is now offering participation to additional grocery stores. ​

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• SNAP benefits can be used to purchase SNAP eligible items online (delivery fees and other associated charges may not be paid for with SNAP benefits)

SEMTAC​�SNAP EBT MODERNIZATION TECHNICAL ASSISTANCE CENTER​�Funded by the USDA Food and Nutrition Services 

• An Online Technical Assistance Center that will work with FNS to provide technical assistance to retailers who are interested in being onboarded in the SNAP Online Program. ​
• The Technical Assistance Center will be a website embedded on the NGAF site that provides resources in the form of FAQs, other reference documents, visuals, and one-on-one conversations with subject matter experts to make the onboarding process with FNS less intimidating.

The Center Will Work With

In the Meantime

• Our online technical assistance center will soft launch by the end of the year.​
• Your feedback can help identify the resources that are created by our subject matter experts. ​
• Technical Assistance can also be requested ahead of the website launch at SNAPOnline@nationalgrocers.org

• Who participates in SNAP? And who does not?
• Reasons for SNAP participation.
• Description of SNAP Households
• How much do SNAP Households receive and how do they spend that money?
• Common misconceptions
• Health benefits of SNAP participation

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• The SNAP Shopper

Who Participates in SNAP?

• 41 million people in 2022
• 1 in 8 people in the US

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• The Elderly!
• Only 42% of elderly people eligible for SNAP participate
• “It’s not worth it”– for $23/month

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• Who Has a Low Participation Rate?

• POVERTY!
• Food Insecurity
• Demographics and Poverty
• People of color
• LatinX
• Single parent household (women vs men)
• Less education

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• Reasons for Being on SNAP

• SNAP Households have working adult(s)

SNAP Participation is Sporadic

• How much do SNAP households receive?

What do SNAP participants purchase?

But what about Soda?

• Americans drink a lot of Sugar Sweetened Beverages
• Studies about SNAP participants and Soda are confusing
• The studies that show more SSB purchases among SNAP participants, show it be statistically significant but in amounts and calories – not so different!
• + 19 calories per day!!

Food Insecurity, SNAP and Health

• We know from a lot of research that Food Insecure people are more likely to suffer from negative health consequences – children, adults, elderly.
• Acute illness – like colds and flu (and COVID)
• Chronic illness – like diabetes, heart disease, etc.

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• Stress, anxiety, behavior and learning issues in children

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• SNAP decreases food insecurity by 30% and consequently seems to improve health in SNAP recipients compared to non-SNAP recipients who are income eligible for SNAP

SNAP and Health, Continued

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• Adults on SNAP incur 25% less per year in medical care costs than low-income non-participants

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• Senior citizens less likely to cut the dosage of their medication and older SNAP participants are less likely to be admitted to a nursing home or hospital than their counterparts

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https://www.cbpp.org/sites/default/files/atoms/files/1-17-18fa.pdf

Conclusion

• SNAP helps the farmer, the retail operator and the recipient.
• Keep up the good work!

About the NGAF TA Center

• Description of the NGAF TA Center

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• Facilitating Grantee, Retailer & Technology Partnerships

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• Hub Connection

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NTAE Center / Nutrition Incentive Hub

Gretchen Swanson Center for Nutrition

• Leading the Nutrition Incentive Program Training, Technical Assistance, Evaluation, and Information Center (NTAE)
• Leading reporting and evaluation
• Based in Nebraska

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Fair Food Network

• Leading technical assistance and fostering innovation
• Based in Michigan

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• Increase the purchase and consumption of fruits and vegetables among participating households��Reduce individual and household food insecurity��Improve health outcomes of participating households��Decrease associated healthcare use and costs

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• GusNIP Goals

• Address any and all questions on working with grantees
• Seek out grantee partners for retailers, and vice versa
• Evaluate and troubleshoot POS
• Facilitate Communities of Practice
• Develop resources for grocers and grantees

What We Do For You!

Questions?

Contact: incentives@nationalgrocers.org

Website: ngaftacenter.org

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NationalGrocers.org