Funds

Food stamp funds to dry up if shutdown persists, USDA warns


The US Agriculture Department is warning states that funding for food stamps will run out next month if the partial government shutdown continues.

People receiving food aid through the Supplemental Nutrition Assistance Program, known as SNAP, will receive benefits for the current month, USDA said in an Oct. 10 letter to state agencies, viewed by Bloomberg News.

“However, if the current lapse in appropriations continues, there will be insufficient funds to pay full November SNAP benefits for approximately 42 million individuals across the Nation,” according to the letter.

A pause in food assistance to millions of Americans would greatly increase the economic pain of the federal shutdown, now in its 16th day with no end in sight. So far, federal workers have borne the brunt of the consequences of the congressional impasse, with most going without pay for the duration of the shutdown.

“We’re going to run out of money in two weeks,” Agriculture Secretary Brooke Rollins told reporters on Thursday. “So you’re talking about millions and millions of vulnerable families, of hungry families that are not going to have access to these programs because of this shutdown.”

In addition, 17 states stopped issuing October SNAP benefits to new applicants starting Thursday, according to an administration official familiar with the matter. That problem is mainly technical — their payment systems can’t separate the pro-rated benefits for October, which are covered by existing funds, from the November benefits, for which funding has lapsed. Those states include New York, Pennsylvania, New Jersey, Virginia, and Massachusetts.

USDA had indicated earlier that it did not expect a shutdown to curtail SNAP benefits. In its Sept. 30 contingency plan for a shutdown, the agency wrote that “Congressional intent is evident that SNAP’s operations should continue since the program has been provided with multi-year contingency funds that can be used for State Administrative Expenses to ensure that the State can also continue operations during a Federal Government shutdown.”

However, USDA officials said Thursday that the contingency fund is currently hovering around $6 billion, and it would need to send $8.1 billion to states to cover November SNAP benefits.

October benefits weren’t affected by the shutdown because the benefit — which works like a debit card — was paid in September, before the shutdown.

Earlier this week, President Trump ordered the Pentagon to use whatever funds remain available to pay troops during the government shutdown. That has been criticized for being legally dubious. Federal law ordinarily prohibits the president from spending money not appropriated by Congress.

“Just as the administration has found ways to protect its other priorities during this shutdown, it must also act with the same urgency to protect SNAP,” said Crystal FitzSimons, president of the Food Research & Action Center.






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