Millions More Americans on Food Stamps this Thanksgiving

Millions more Americans are on food stamps this Thanksgiving. A staggering 42.4 million Americans – 13.7% of the population -- are receiving benefits from the Supplemental Nutrition Assistance (SNAP) program, more commonly known as Food Stamps. To put this into perspective, 6 million more people are lining up for food stamps this year. Since the recession began, 15 million more Americans qualify for the benefit, earning a poverty-level income.

Although the American Recovery and Reinvestment Act (AARA) passed last year widened eligibility for Supplemental Nutritional Assistance so that more adults without dependents could qualify, the increase in food stamps reflects a higher poverty rate and increased unemployment, notes the Economic Policy Institute (EPI). Under the ARRA, a family of four is eligible to receive $668 per month this year and in 2011.

Earlier this year, the Census Bureau reported that the poverty rate rose from 13.2% in 2008 to 14.3% in 2009. As EPI Economists noted in an analysis of that data, “When unemployment skyrockets and job seekers cannot find work, incomes fall and poverty rises.”

Food stamps however, are intended to provide economic stimulus as well as needed groceries. By increasing the scope of benefits, The Recovery Act is seeking to spur economic growth. The assistance provided by SNAP is like a direct cash transfer that recipients spend quickly, returning to their local economies, notes the EPI.

USDA researchers have estimated that an additional $5.00 in food stamp benefits can generate $9.20 in total economic activity. And when the economy strengthens, participation typically declines.