The Decline in Food Stamp Participation: A Report to Congress

Excerpts from the Executive Summary: Over the last decade, food stamp participation rose more sharply than expected following the relatively short and mild recession in the early 1990s and fell more sharply than expected after 1994 during the sustained period of economic growth. Changes in the number of individuals receiving food stamp benefits are closely watched for several reasons. The number of participants — 19 million individuals in 1989, rising to 28 million in March 1994, falling to 17 million by September 2000 — is large. In addition, the level of food stamp participation affects billions of dollars each year in federal and state expenditures. Those expenditures in turn have a small but visible impact on the revenues of agricultural businesses and over 150,000 food retailers. The reasons that lie behind a change in food stamp participation hold implications for the well being of low-income families and the success of welfare policies. Report language accompanying the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act of 2001 directed the Food and Nutrition Service to study the decline in participation in the Food Stamp Program. This report presents the findings from our study in response to the Congressional directive.