Three days after offering states more latitude in running the food stamp program, the Agriculture Department approved a two-year test in Arizona to reduce trafficking of benefits. The waiver could be the first in a series; Maine, for example, wants to bar purchase of candy and sugary beverages, including soda, through the anti-hunger program.
Food stamps, officially the Supplemental Nutrition Assistance Program, or SNAP, help poor people buy food. The great majority of recipients are children, elderly or disabled. At latest count, some 42 million people were enrolled with benefits averaging $125 per month. The program cost $71 billion in fiscal 2016.
Agriculture Secretary Sonny Perdue said, “As is the case with this Arizona waiver, USDA will consider state flexibilities where the goals are to help people transition to self-sufficient lives, to improve customer service or to stop fraud and abuse.”
For two years, ending in November 2019, Arizona will test whether fraud is reduced when the state is quicker to contact participants who ask to replace the so-called EBT cards, similar to a debit card, used to deliver food stamp benefits. Excessive requests for replacement cards are regarded as a potential indicator that the cards are being sold for cash or ineligible items. The food stamp fraud rate was 1.3 percent, according to USDA in 2013, which pointed to the role of corrupt retailers.
While USDA says food stamps has one of the lowest fraud rates among federal programs, trafficking in any amount is a flash point. A Tucson TV station reported in October about offers on popular social media and internet marketing sites to sell food stamps for cash. Selling an EBT card is a felony if the value is $100 or more, said the station.
At present, states can require direct contact by participants if they ask for four replacement EBT cards in a 12-month period, said USDA. Arizona is authorized by the waiver to require direct contact if a participant requests more than two replacement cards in 12 months.
“Through this policy, we can provide a hand up to those in need while ensuring we have the tools to crack down on fraud and protect taxpayers,” said Arizona Gov. Doug Ducey.
Food-stamp participants in Arizona can report lost or stolen EBT cards by telephone or in person. On its website, the state Department of Economic Services says, “When you and your EBT alternate card hold requests more than 4 cards within a 12-month period, you will need to answer questions before receiving a replacement card. Also, a fraud investigation may be initiated.” The website also says that when a card is reported lost or stolen, the replacement card will be limited to benefits in the account on the day the loss was reported. The state replaces one card for free and charges $5 per card afterward.
The head of Maine’s Department of Health and Human Services requested a waiver to block food stamp purchases of candy and sugary beverages soon after President Trump took office, said the Portland Press Herald. “The request comes less than a year after the Obama administration denied a similar waiver request and after the LePage administration failed to get the issue through the Maine Legislature.” The state said the ban would help combat a high obesity rate in Maine.
Besides proposals to prohibit candy and soda purchases, USDA is considering proposals to require applicants to apply in person for food stamps and to reduce benefits to various recipients, including U.S.-born children of undocumented immigrants, reported the Washington Post. The proposals are based on suggestions from the Secretaries Innovation Group, composed of politically conservative state social services directors.
In a statement on its website, the state officials recommend seven pages of changes to the food stamp program, including a ban on “harmful products with no nutritional value” such as candy and soda; requiring retailers to keep an item-by-item list of food stamp purchases for use by states in deciding “what changes are needed in the program to ensure its effectiveness”; putting photo IDs on EBT cards; requiring applicants to produce in person a valid photo ID; denial of more than two replacement cards in a 12-month period; stricter regulation of food stores; elimination of categorical eligibility for food stamps for able-bodied adults without dependents after 90 days if they do not work at least 80 hours a month or spend an equal amount of time in workfare or job training programs; and letting states keep a larger share of money they collect from fraud cases.