Public Policy

Farm Bill Mark-Up Aids Food Stamps and TEFAP
In July 2001, the House Agriculture Committee passed without amendment the food assistance-nutrition title (Title IV) of the Farm Bill.

Title IV reauthorizes to Fiscal Year 2011 the federal Food Stamp Program (FSP), Commodity Distribution Programs - The Emergency Food Assistance Program (TEFAP) and the Commodity Supplemental Food Program (CSFP), expands Section 32 purchase authority for donations of food and creates new authorizing authority for the Hunger Fellows Program. The Farm Bill specifies $3.65 billion in additional food assistance program spending (funding above currently authorized levels) over the next ten years, effective October 1, 2001. Of the $3.65 billion in new spending, approximately $400 million over 10 years is for new TEFAP spending, including an additional $10 million for product distribution and storage costs (administrative grants). An additional $200 million is provided over 10 years for Section 32 commodity purchases for food donation programs. More than $3 billion over 10 years is provided for Food Stamp Program improvements, very similar to the joint recommendation recently made by America's Second Harvest, FRAC, and the American Public Human Services Association (APHSA).

Specifically, the food stamp improvements include:
Simplified Definition of Income - Under current program rules, a number of income sources are counted against a household's food stamp benefit. A2H cited the varying program income rules in The Red Tape Divide as an area in need of reform. Section 401 of the Farm Bill allows exclusion from income counting of deferred educational loans, VA educational loans, and any income not counted in TANF or Medicaid.

Standard Deduction - Currently, households receive a standard deduction for normal living expenses counted in the household's food stamp benefit calculation. Section 402 of the Farm Bill increases the standard deduction to be calculated according to family size, thus increasing benefit levels to many families.

Transitional Food Stamp Benefits - Numerous studies of "welfare leavers" indicate high rates of food insecurity, continued poverty and reliance on emergency food providers after families have left welfare for work. Section 403 of the Farm Bill provides up to six months of transitional food stamp benefits for families leaving TANF. Unfortunately, this would be a state option.

Reforms the Quality Control System - Currently, USDA reviews each state's issuance of food stamp benefits to determine program integrity and efficiency under a process called "Quality Control" (QC). Unfortunately, the current QC system has led a number of states to utilize long, cumbersome, and intrusive applications and application processes as a way to reduce errors when issuing benefits. The Red Tape Divide identified QC reform as one of the most crucial changes necessary to increase program access. Section 404 of the Farm Bill reforms the QC system through statistical calculation changes, provides states relief by delaying sanctions until the third consecutive year in which a state's error rate exceeds the national average by more than 1% and provides bonus payments to states for excellent program administration.

Application and Eligibility Simplification Grants - One of the greatest barriers to participation in the Food Stamp Program is the application process. The purpose of The Red Tape Divide was to bring to the public's attention the difficulties poor and hungry people face when they try and access this important entitlement program. To help address these issues, Section 405 of the Farm Bill provides $10 million in grants through USDA to the states to develop and implement programs that improve the food stamp application and eligibility determination processes.

In addition to the significant food stamp changes, the Farm Bill increases TEFAP by an additional $30 million in mandatory commodity food purchases, or $130 million annually, and an additional $10 million, or $60 million annually will be provided for product and distribution grants to states and food banks. Section 32 funding ("bonus" commodities) for agriculture market surplus removal activity and donation to food programs, like TEFAP, would increase from $300 million to $500 million annually. CSFP was reauthorized to 2011 and $15 million was provided to fund the Seniors Farmers' Market Nutrition Program.

The House Agriculture Committee's Farm Bill will likely be sent to the House floor shortly after the August congressional recess. The Senate is expected to take up Farm Bill and food assistance/nutrition program reauthorization in the early fall. The Farm Bill mark-up was a bipartisan process led by Chairman Larry Combest (R-19th/Lubbock-TX), Ranking Member Charlie Stenholm (D-17th/Abilene-TX), Congressman Bob Goodlatte (R-6th/Roanoke-VA) and Congresswoman Eva Clayton (D-1st/Greenville-NC). America's Second Harvest is grateful for the work of the food banks in those congressional districts for their outreach to their Members and the broad coalition of food banks, advocates and program administrators for bringing a very positive food assistance/nutrition title in the Farm Bill. Our focus will now shift to the Senate, where we will pursue additional program expansions.