SNAP is a unique boost to the economy.
Rosenbaum et. al 20 — Dottie Rosenbaum, Senior Fellow and Director of Federal SNAP Policy, Stacy Dean, former staff member for the Center on Budget and Policy Priorities ,Zoë Neuberger, Senior Policy Analyst at the Center on Budget and Policy Priorities, 2020 (“The Case for Boosting SNAP Benefits in Next Major Economic Response Package,” Center on Budget and Policy Priorities, May 22nd, Available Online at https://www.cbpp.org/research/food-assistance/the-case-for-boosting-snap-benefits-in-next-major-economic-response, Accessed 07-15-2023)
SNAP benefits are one of the fastest, most effective forms of economic stimulus because they quickly inject money into the economy — and a SNAP benefit increase can be implemented virtually immediately. Low-income individuals generally spend all of their income to meet daily needs such as shelter, food, and transportation; every SNAP dollar that a low-income family receives enables the family to spend an additional dollar on food or other items. Some 80 percent of SNAP benefits are redeemed within two weeks of receipt; 97 percent are spent within a month. That’s why the Congressional Budget Office (CBO) and Moody’s Analytics rate SNAP expenditures as one of the most effective and efficient supports for the economy during downturns, measured on a “bang-for-the-buck” basis. Every dollar in new SNAP benefits increases Gross Domestic Product by about $1.50 during a weak economy, according to a recent Department of Agriculture (USDA) study.