Food stamp eligibility broadens
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By Mel Huff Staff Writer - Published: December 29, 2008
Thanks to changes in what used to be called the food stamp program, more than twice as many Vermont households now will be eligible for benefits next year.
And take note: Even if you have been denied benefits in the past, you may be eligible now.
Congress recently renamed the federally funded program SNAP, short for Supplemental Nutrition Assistance Program.
The program gives a new look and guidelines to a solution for a badly needed call in communities nationwide.
The old paper coupons have not been used for years, replaced long since by electronic benefits transfer (EBT) cards that look like credit cards. The new name reflects the program's purpose and is intended to remove the stigma associated with "food stamps."
More than 29,000 Vermont households currently receive SNAP benefits. Eligibility has been limited to those whose gross income is no more than 130 percent of the federal poverty level for households of their size.
But in January, Vermont will raise the limit to 185 percent of the poverty level that's $3,269 for a family of four. Since as many as 60,000 Vermont households have incomes under the new limit, another 30,000 households will be eligible, although not all will apply.
The state is expecting some 14,000 new cases.
The increase in the gross income limit is not the only change that will expand Vermonters' access to the nutrition program. The state is eliminating the assets test for most households that meet the income criteria.
The Vermont changes come on top of federal changes that took effect on Oct. 1. Last fall the federal government excluded tax-deferred retirement accounts IRAs and 401(k)s and tax-deferred educational accounts from the assets test. Vermont is making the asset exclusion even broader.
In January, Vermonters whose gross income is less than 185 percent of the federal poverty level "will not have anything counted, whether it's a savings account or an insurance settlement," said Reneι Richardson, director of Vermont's food and nutrition programs. The cap on the number of cars families can have has also been removed. Homes have previously been excluded.
"What we're doing is we are saying that if somebody has worked hard and they've been able to buy (things), and then all of a sudden they lose their job and they're in a situation where it's probably going to be temporary, we're not going to say, 'Well, before you can get any help from us, you've got to get rid of every single thing you own.' We're exempting everything else that the feds didn't exempt in October," Richardson said.
While the gross income limits determine eligibility for the program, net income limits determine the amount of benefit received. To receive benefits, a household's net income must be less than 100 percent of the federal poverty level.
Besides increasing eligibility, the federal and state governments have increased deductions, which will translate into higher benefits.
In October, the federal government eliminated the cap on deductions for dependent care, which includes child care. Then in December, Vermont got a waiver from the federal government to simplify the paperwork in documenting medical deductions. Now elderly and disabled Vermonters need document only the first $35 a month of medical expenses before taking a standard deduction of $138, an average deduction. Those who have more than $138 a month of medical expenses can still deduct the full amount by itemizing the costs.
Anti-hunger advocates and state officials have been eager to increase the use of SNAP benefits by two groups: working families with children and the elderly. Vermont's overall participation rate in the program is high 80 percent but only 73 percent of eligible working families participate, and the rate is much lower 38 percent for the elderly, says Angela Smith-Dieng of the Vermont Campaign to End Childhood Hunger.
Under the new guidelines, here are some people who might now qualify:
It's worthwhile for people who meet the gross income test to apply, Richardson says, even if their net income doesn't qualify them for SNAP benefits, because eligibility opens the door to other programs.
For example, the children of families eligible for SNAP automatically qualify for the school meals program. Since school lunches usually cost between $3.50 and $5 a month, the program could save families $70 per child per month. There are similar benefits to the elderly.
Anti-hunger advocates hope the changes will encourage working families with children to apply for SNAP because of the health benefits to their children.
"Think about it. A family that has more money to spend on food can buy more nutritious food and generally can eat healthier," Smith-Dieng said. "It reduces the risk of being overweight, and it also lowers the risk of childhood abuse and neglect because the household is generally less stressed."
Better nutrition leads to better health for children.
Research published in 2007 by the Children's Sentinel Nutrition Assessment Program found that children living in food insecure homes are almost twice as likely to be in poor health and a third more likely to be hospitalized than children who live in homes where there is adequate food. Other research found that children receiving SNAP benefits are a fourth less likely to be food insecure than eligible children not receiving benefits. More than 10 percent of Vermont households are food-insecure that is, they often run out of food.
Advocates are also eager to remove the barriers to the participation of "seniors" people over 60 as the federal government classifies them in the program. Many older people believe that if they use SNAP benefits, they will keep someone who needs help more than they do from getting help. That's not the way the program works. Like Social Security, it's an entitlement funded through the taxes that they pay.
Another barrier is embarrassment. To overcome that obstacle, Vermont's elderly and disabled can have SNAP benefits deposited directly to their bank accounts as cash a more private and flexible arrangement.
Richardson hopes news of the changes will encourage more of the nearly 27,000 families receiving the Vermont Earned Income Tax Credit to apply for SNAP benefits. They are "categorically" eligible that is, they don't have to prove their eligibility.
The state is planning a vigorous outreach campaign to Vermonters enrolled in the Vermont Health Access Program, a means-tested program. The state already knows that their incomes qualify them for SNAP.
Richardson said discussions about expanding the food assistance program started in June, when Gov. James Douglas launched the Vermont Food and Fuel Partnership. The idea of was of interest to state officials not only because it would provide long-term protection to vulnerable populations, but also because of the additional federal money the program would bring into the state.
The benefits are considered to be an economic stimulus because the money goes directly recipients' food budgets; none of it can be saved. A dollar in SNAP benefits generates $1.84 in economic activity.
One obstacle was that the food stamp program didn't have enough staff to administer an expanded program. It did, however, have more than $1 million in federal high performance bonuses. Part of the money had already committed to "modernization" projects, like creating an online application process. But the remaining money is paying for additional staff.
"We're really excited about this," Richardson said.
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