The Business Case for Increasing SNAP Participation
The Supplemental Nutrition Assistance Program (SNAP) is the
cornerstone of the Nation’s nutrition safety net and an investment in
our future. SNAP provides
nutrition benefits to low income participating clients, supports work,
and delivers economic benefits to communities.
Despite the obvious nutrition benefits of the SNAP, 35 percent of
low-income people who would qualify for the SNAP do not participate. This
means that about 11 million low-income people are losing out on SNAP
benefits. But it also means that communities do not benefit economically
from their participation. SNAP is a large public benefit program
which also serves as an economic stimulus, creating an economic boost
that ripples throughout the economy when new SNAP benefits are redeemed.
By generating business at local grocery stores, new SNAP
benefits trigger labor and production demand, ultimately increasing
household income and triggering additional spending.
At the request of States, FNS developed the materials below which
detail why increasing participation of eligible people in SNAP makes
sense for States and communities from an economic development
perspective and for low-income people from a nutrition perspective.
As part of this effort, FNS conducted an analysis to examine the
economic impact, by State and for the Nation, of a five percentage point
increase in the participation rate. The national participation rate for
fiscal year 2005 was 65 percent. If the national participation rate rose
just five percentage points, 1.9 million more low-income people would
have an additional $971 million in benefits per year to use to purchase
healthy food and $1.8 billion total new economic activity would be
generated nationwide. This analysis demonstrates that even a small
increase in participation among those eligible for SNAP benefits
can have a substantial economic impact for States and communities.
These materials are updated annually.
Last modified:
11/21/2008
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