House of Representatives Makes Important Strides in Improving Nutritional Assistance
Good News for Families in 2007 Farm Bill
When the House of Representatives passed the Farm, Nutrition, and Bioenergy Act of 2007, some important strides were made to improving nutritional assistance. Most importantly, changes were made to improve the value of the food stamp benefit and extend it to more families.
Expanding Coverage by Increasing the “Standard Deduction”
Food Stamp benefits are calculated for each eligible household based both on household size and income. The more money a household makes, the less aid the can receive from the Food Stamp program. Each eligible household, however, is entitled to deduct a standard amount from their monthly income before their benefits are calculated thereby increasing the benefits available to them. In this year’s Farm Bill, and for the first time since 1996, the House of Representatives has increased the standard deduction, making up for the decline in value of food stamps over that period.
Indexing the “Standard Deduction” to Inflation to Preserve
In addition to increasing the standard deduction, the 2007 Farm Bill links (or “indexes”) the standard deduction to inflation so that the deduction will increase each year at the same rate as inflation and families will no longer face the problem of food stamp benefits that are worth less each year. The average recipient will receive about $170 more over the next five years than they otherwise would have, and advocates will no longer have to persuade Congress of the need for a regular increase each time the Farm Bill is up for reauthorization.
Expanding Coverage by Increasing the Amount Deductible for Child Care
As described above, food stamp benefits are calculated based on family income. Of course, when families spend money on child care, the money available to them to spend on food necessarily decreases. Unfortunately, right now the Food Stamp program only allows them to deduct up to $175 from their monthly income, thereby having only a very limited effect on their Food Stamp benefits. The 2007 Farm Bill lifts the cap on this deduction, allowing families to subtract from their income the full amount that they spend on child care. This change will mean that about 100,000 households will receive more than $40 extra per month.
Limiting How Certain Family Assets are Treated in Eligibility Determination
Right now, in order to be eligible for Food Stamp benefits, a family cannot have more than $2,000 in assets (like money in a bank account, for example). This “Resource Limit” has been set at the same amount for over 20 years, never increasing to take account of inflation. Additionally, certain special savings accounts designed to encourage saving for education expenses and retirement are currently counted as part of a family’s assets. This means that often, families are forced to empty out their retirement or education accounts in order to qualify for Food Stamps. The 2007 Farm Bill addresses both of these issues. It makes sure that the total asset limit increases as inflation increases. Additionally, the bill excludes these education and retirement accounts from counting as family assets. These changes would allow families to both save for the future while still continuing to receive aid from the Food Stamp program.
