In The News

The $80B Food Stamp Program: Where’s the Money Going? (Rand Paul Review)

TCS RSS Feed RSS
July 01, 2012
Programs:

American taxpayers dole out $80 billion every year to subsidize food stamps for the poor, but are unsure of where and how their hard-earned dollars are being spent. Ranging from candy to potato chips to steak dinners, food stamps can be used to purchase a variety of foods, and are accepted at gas stations, fast-food restaurants, retail stores, and in some areas, even upscale restaurants.

Taxpayers, however, have only a vague understanding of where their dollars are going, because the government says it cannot disclose sales figures stemming from food stamp purchases — and even if it could, the specific types of foods being purchased would not be accessible. The U.S. Department of Agriculture (USDA), which partners with states to manage the program, argues that disclosing sales for food stamps, also known as the Supplemental Nutritional Assistance Program (SNAP), would amount to unveiling trade secrets.

“We can’t release it based on federal rules,” contended Tom Steinhauser, Division Director of benefit programs for the Virginia Department of Social Services. “If it were up to us, I wouldn’t have a problem releasing the information. It’s taxpayer money.” Consequently, fraud is difficult to track and the overall efficacy of the expansive program is impervious to evaluation.

However, Steve Ellis of the watchdog group Taxpayers for Common Sense says the USDA is notorious for its covert allocation of taxpayer dollars, and that the agency’s legal argument for shielding such information is faulty:

USDA hides behind a specious proprietary data argument: The public doesn’t want to know internal business decisions or information about specific individuals’ finances. The USDA sees retailers, junk food manufacturers and the big ag lobby as their customers, rather than the taxpayer.

The Washington Times requested SNAP information from the state of Maryland under a Freedom of Information request, but was denied after officials said the data belongs only to the federal government, which bars states from releasing it. Additionally, lawmakers have enacted laws seemingly intended to shield the industry by threatening jail time for anyone who reveals the amount of food stamp dollars paid to a store.

Not too long ago, the USDA Food and Nutrition Service downsized to only 40 inspectors charged to oversee about 200,000 businesses which accept SNAP benefits. Moreover, the Government Accountability Office noted in 2010 that retailers who purchase EBT food stamp debit cards for cash “are less likely to face criminal penalties or prosecution” than in years past.

Congress is now toiling over a 1,000-page farm bill that includes $80 billion a year — or roughly four out of every five dollars in the legislation — in food stamp benefits. Last week, the Senate rejected an amendment proposed by Sen. Rand Paul (R-Ky.) that would have salvaged $322 billion over a decade by trimming $45 billion a year and transferring spending measures over to the states. Paul said of the benefits, “I think Americans would be flabbergasted at the amount of money” spent on this program.

www.randpaulreview.com/2012/06/the-80b-food-stamp-program-wheres-the-money-going/

Discussion
Weekly Wastebasket

Our weekly reality-check for federal spending. View All

September 13, 2013

Syria: Excuse 535 To Not Cut the Deficit

Volume XVIII No. 37 Possible action in Syria has become the most recent excuse du jour for Pentagon boosters... Read More