SNAP Provides the Most Economic Stimulus – Program is Key to Local Econ and Job Growth

Economic Benefit SNAP participation correlates with economic cycles. SNAP benefits are considered one of the fastest and most effective forms of economic stimulus. An additional $5 of SNAP benefits generates $9 in total economic activity According to the USDA’s Economic Research Service, each $1 billion of retail generated by SNAP creates $340 million in farm production, $110 million in farm value-added, and 3,300 farm jobs Every $1 billion of SNAP benefits also creates 8,900-17,900 full-time jobs For every $1 billion in cuts to SNAP funding, 11,437 jobs would be destroyed. 83% of SNAP benefits, equal to $53.4 billion, were spent at 36,500 supermarkets around the U.S.; the remaining 17% was spent at 180,000 small retail stores (including grocery stores, farmers’ markets, wholesalers, and meal services), for a total of $11 billion SNAP beneficiaries spend more dollars on food in local stores than eligible non-participants An increase in SNAP participation by 5% would result in 2.2 million low-income Americans receiving $859 million in SNAP benefits, generating $1.5 billion in nationwide economic activity Measured as a share of the economy (gross domestic product or GDP), SNAP spending fell by 7 percent in 2016 and another 8 percent in 2017, and the Congressional Budget Office (CBO) projects that it will return to the 1995 level in the next few years. As it is now, SNAP is not contributing to long-term budgetary pressures SNAP and the Recession SNAP is considered the most effective and responsive federal program to provide assistance during economic downturns Participation in the SNAP program correlates with periods of economic expansion and retraction; so when the economy suffers, SNAP can provide an immediate and temporary safety net for individuals who lose their jobs (and sustain consumer spending at the same time) SNAP provided $4.3 billion in additional economic stimulus in 2009. Every $1 increase in SNAP benefits during 2009 generated an estimated $1.79-$1.84 in economic activity SNAP delivered more than $40 billion in economic stimulus through the Recovery Act benefit increases