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SNAP restrictions devastate working-class income.

Wheaton and Tran 18 Laura Wheaton, Laura Wheaton is a senior fellow in the Income and Benefits Policy Center at the Urban Institute, where she specializes in the analysis of government safety-net programs, poverty estimation, and the microsimulation modeling of tax and transfer programs, Victoria Tran, Victoria Tran is a research assistant in the Income and Benefits Policy Center. She primarily works with the Child Care and Development Fund Policies Database and TRIM3, February 2018, “The Antipoverty Effects of the Supplemental Nutrition Assistance Program”, Urban Institute, https://www.urban.org/sites/default/files/publication/96521/the_antipoverty_effects_of_the_supplemental_nutrition_assistance_program_4.pdf, liam.

The Antipoverty Effects of SNAP In this report, we provide detailed estimates of the antipoverty effects of SNAP using the Supplemental Poverty Measure (SPM). The antipoverty effects of SNAP and other government programs are often understated because respondents underreport program benefits in the survey data used for the estimates. We use data that have been corrected for underreporting using a comprehensive microsimulation model to more fully capture SNAP’s antipoverty effect. We begin by providing background on SNAP and the SPM. We describe prior research into the antipoverty effects of SNAP and discuss the methods used to correct for underreporting in this analysis. We then examine the effects of SNAP on the number of people in poverty, the number of people in deep poverty, and the size of the poverty gap. Finally, we estimate the additional potential of SNAP to reduce poverty if all people eligible for SNAP were to participate in the program. Further details about our methods and results are provided in the appendices. Program Background SNAP assists more than one in eight Americans and provided benefits to an average of 45.8 million people each month in 2015. Total federal costs for the program were $74.0 billion in 2015, of which $69.7 billion were for benefits; the remainder was for program administration (Gray, Fisher, and Lauffer 2016). To receive SNAP benefits, a household must pass eligibility tests. Eligibility rules are set by the federal government, though states have flexibility in some areas. SNAP benefits are based on a household’s income and size and are delivered to the household on an electronic benefit transfer card, which can be used in participating retail stores to purchase food. Eligibility rules are discussed further in appendix A. Who Receives SNAP? Most SNAP households contain a child, a person age 60 or older, or a person with a disability. In the average month of fiscal year (FY) 2015, 9.5 million households with children received SNAP, accounting for 43 percent of recipient households. About 4.4 million SNAP households (20 percent) included a 2 T H E A N T I P O V E R T Y E F F EC T S O F T H E S U P P L E M E N T A L N U T R I T I O N A S S I S TA N C E P R O G R A M person age 60 or above, and 4.5 million SNAP households (20 percent) contained a person below age 60 who had a disability. About 4.3 million households (19 percent) contained adults ages 18 to 49 without disabilities and without children. About 82 percent of SNAP recipient households were poor in 2015 according to the income definitions and poverty levels used to determine eligibility (Gray, Fisher, and Lauffer 2016). Twenty-two percent of SNAP households had no gross income, 32 percent had earnings, 20 percent received Supplemental Security Income (SSI), and 24 percent received Social Security income. The average SNAP household in 2015 had two members, had $786 in monthly gross income, and received $254 in monthly SNAP benefits. Households with children tended to be somewhat larger, averaging 3.2 members. These households had an average of $1,027 in monthly gross income and received an average of $393 a month in SNAP benefits. SNAP households containing a person age 60 or older tended to be smaller, averaging 1.3 members per household. On average, households with a member age 60 or older had $912 in monthly gross income and received $128 a month in SNAP benefits in 2015 (Gray, Fisher, and Lauffer 2016). How Are Program Participation and Costs Changing over Time? SNAP enrollment increased considerably during the Great Recession and its aftermath, rising from 26.3 million participating people in the average month of FY 2007 to 47.6 million in FY 2013 (figure 1). 1 The increase in participation was driven by the difficult economic situations faced by many families during and in the aftermath of the Great Recession and by policy changes and increased program outreach.2 SNAP enrollment began declining in FY 2014, falling to 42.1 million average monthly participants in FY 2017. T H E A N T I P O V E R T Y E F F EC T S O F T H E S U P P L E M E N T A L N U T R I T I O N A S S I S T A N C E P R O G R A M 3 FIGURE 1 Monthly Participation in Supplemental Nutrition Assistance Program, Fiscal Years 2007–17 Source: “Supplemental Nutrition Assistance Program Participation and Costs,” Food and Nutrition Service, last published January 5, 2018. Total SNAP benefits paid increased from $30.4 billion in FY 2007 to $76.1 billion in FY 2013 before declining to $63.7 billion by FY 2017 (figure 2). The increase in benefits between FY 2009 and FY 2013 was attributable not only to an increase in the caseload but also to a temporary increase in the SNAP benefit enacted under the American Recovery and Reinvestment Act of 2009. Benefits paid declined after 2013 because the increased benefit amount from that law expired and the program’s overall caseload decreased. 0 10 20 30 40 50 60 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Number of participating people (millions) 4 T H E A N T I P O V E R T Y E F F EC T S O F T H E S U P P L E M E N T A L N U T R I T I O N A S S I S TA N C E P R O G R A M FIGURE 2 Annual Benefits in the Supplemental Nutrition Assistance Program, Fiscal Years 2007–17 Source: “Supplemental Nutrition Assistance Program Participation and Costs,” Food and Nutrition Service, last published January 5, 2018.

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