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Posts Tagged ‘SNAP reductions’

USDA Does Not Have The Cash To Keep Food Stamps Running If The Government Shuts Down

Thursday, September 24th, 2015

AlanPyke_108x108Tens of millions of vulnerable Americans would lose their food stamps benefits if Republicans bent on defunding Planned Parenthood force the second government shutdown of the Obama era next week, the United States Department of Agriculture (USDA) warned on Tuesday.

Unlike the 2013 shutdown when cash reserves allowed Supplemental Nutrition Assistance Program (SNAP) benefits to be disbursed as normal, “USDA will not have the funding necessary for SNAP benefits in October and will be forced to stop providing benefits within the first several days of October,” a spokeswoman told the Associated Press. The agency notified state SNAP administrators on Friday that they should not begin the process of doling out October’s food stamps dollars this week as they normally would.

Without a deal, funding for normal government operations will run out at the end of September. In response to the news that a shutdown would cut off food stamps to as many as 45 million people, Senate Agriculture Committee Chairman Pat Roberts (R-KS) issued a statement saying the way to avoid a shutdown is for Democrats to get on board with cutting off federal funding for women’s healthcare. “The best way to ensure SNAP recipients receive needed support is to vote for the [continuing resolution],” Roberts told the Huffington Post. “I’m prepared to do so, and if members are worried about SNAP funding, they should too.”

The funding measure Roberts referenced would zero out federal funds to Planned Parenthood, the national women’s health organization that’s been smeared by pro-life activists as improperly profiting off the sale of aborted fetal tissue. Many of Roberts’ House colleagues have pledged to shut down the government if the group doesn’t have its funding cut off. State lawmakers in some parts of the country have already moved to restrict the group’s ability to provide a wide range of health services to low-income women who depend on Planned Parenthood clinics. In a quarter of all the counties where the group has a presence, the clinics are the only source of affordable contraceptive services for women of little means.

The 2013 government shutdown caused disruptions in a variety of federal services including thejob training programs that unemployed people rely on to fulfill the eligibility requirements of SNAP. But the money for food itself was able to continue flowing because the USDA had sufficient cash in reserve to put the appropriate funds on peoples’ cards. That isn’t the case this time, lawmakers briefed by the agency say.

Cutting off SNAP would mean shooting the U.S. economy in the foot. The benefits more than pay for themselves, generating close to two dollars of economic activity for every dollar of benefits doled out by the USDA. Plugging up the flow of money from the federal government to low-income families to the grocery stores where they shop would have ripple effects on businesses and on tax revenue for public coffers.

The timing of the possible shutdown would exacerbate that natural chain of harmful knock-on effects. Most SNAP beneficiaries have already spent down their full monthly benefit by about midway through any given month. That cycle puts a crunch on grocery stores as well, distorting the hours they can sensibly schedule workers to be in the store and shifting how they stock their shelves. The USDA’s early warning about SNAP being cut off may have some political ramifications in the Congressional tussle over government funding, but it also serves as a more practical heads-up to the economic ecosystem surrounding the food stamps program.

This blog was originally posted on Think Progress on September 23, 2015. Reprinted with permission.

About the Author: Alan Pyke is the Deputy Economic Policy Editor for ThinkProgress.org. Before coming to ThinkProgress, he was a blogger and researcher with a focus on economic policy and political advertising at Media Matters for America, American Bridge 21st Century Foundation, and PoliticalCorrection.org. He previously worked as an organizer on various political campaigns from New Hampshire to Georgia to Missouri. His writing on music and film has appeared on TinyMixTapes, IndieWire’s Press Play, and TheGrio, among other sites.

 

The Paul Ryan Budget - Déjà vu All Over Again

Thursday, April 17th, 2014

seiu-org-logoThe House of Representatives today passed Budget Committee Chairman Paul Ryan’s (R-WI) fiscal year (FY) budget resolution. Introduced last week (on April Fool’s Day), the Ryan budget is as extreme as the proposals he offered last year and the year before.

As in previous budgets, Ryan seeks to cut the deficit on the backs of the elderly, low-income and vulnerable Americans, while the wealthy and corporations are once again exempt from paying their fair share.

Unsurprisingly, low-income and vulnerable Americans do not fare well in Rep. Ryan’s budget.

Among the $5.1 trillion in cuts he proposes are reducing funding for and block-granting the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps, at a time when there is record poverty. Cuts to SNAP would end benefits to some 3.8 million low-income people in 2014 alone.

The Ryan budget proposes to end Medicaid as we know it and instead provide fixed block grants to states. This would destroy the historic state-federal relationship underlying this safety net program and shift huge costs to the states.

The budget proposal also cuts Medicare. For people younger than 55, the budget would privatize Medicare by converting it to a system under which those who are enrolled in Medicare would receive a capped voucher to purchase private insurance in a specialized Medicare marketplace. This would mean less care and higher costs for millions of Americans.

As for the wealthy and corporations, they do quite well in this proposal, lowering the top income tax rate for the very rich from 39.6 percent to 25 percent and slashing the corporate tax rate from 35 percent to 25 percent. These tax cuts would cost about $5 trillion over ten years. Ryan suggests that these tax breaks will be offset by closing loopholes, but the budget does not name a single loophole that he’d eliminate.

To top it off, the Ryan budget would result in the loss of hundreds of thousands of jobs. In fact, according to the Economic Policy Institute, the Ryan budget resolution would, on net, result in 1.1 million jobs lost in FY 2015 and 3 million jobs lost in FY 2016. If the economy remains sluggish at that point, large job losses could continue into FY 2017 and beyond.

Budgets are not just a bunch of numbers on papers. They are blueprints that reflect our priorities and our values. Rep. Ryan’s budget does not reflect the priorities or values that most Americans hold dear. It’s important that we all know exactly where Rep. Ryan’s priorities and values lie. Sadly, his budget proposal tells us just that.

This article was originally printed on SEIU on April 10, 2014.  Reprinted with permission.

Author: SEIU Communications

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