Key provisions
The 1996 Farm Act reauthorized the FSP for 2 years, adding criteria for disqualification of food stores and wholesale food concerns for program violations.
The program was modified and reauthorized through fiscal year (FY) 2002 as a part of the 1996 Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). This welfare reform legislation reduced the level of the maximum food stamp benefit, limited income deductions, restricted eligibility for many legal immigrants, and imposed time limits for able-bodied adults without dependents.
PRWORA disqualified most permanent resident aliens from receipt of food stamps unless they had been employed in the U.S. for the past 10 years. The Agricultural Research, Extension and Education Reform Act of 1998 restored eligibility to immigrant children, disabled, and elderly who were in the U.S. when welfare reform took effect in August 1996.
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To simplify eligibility determination, State administrators may exclude certain types of income and resources not counted under the State's TANF cash assistance or Medicaid programs. Asset requirements are changed to increase the resource limit from $2,000 to $3,000 for households with a disabled member.
States may deem child support payments as an income exclusion rather than a deduction. The Secretary is directed to establish simplified procedures for States in establishing the amount of child support paid by a household.
States are given new options on use of standardized deductions. A new standard deduction of $143 per month for homeless households is allowed. The standard utility allowance (SUA) option is simplified for States electing to use the SUA (rather than actual utility costs) for all households.
The Food Stamp Act (as amended) required USDA to maintain a system that enhances payment accuracy and improves program administration by establishing fiscal incentives that require State agencies with high payment error rates to share in the cost of payment error.
State flexibility in spending FSE&T program funds is increased by repealing the 3 stipulations imposed on States. Also eliminated is the $25-per-month cap on Federal reimbursements for transportation and other work costs incurred by participants in E&T programs.
Reaffirms funding authorized in the Food Stamp Act. Up to $5 million in annual funds for FY 2003-07 is specifically authorized to award competitive outreach grants to improve access to the FSP. Projects may include efforts to: Coordinate food stamp applications with those of other assistance programs; Facilitate application through telephone, Internet, or other system improvements; and Develop outreach materials and/or improved methods for informing eligible households about the program.
Eliminates requirement that EBT systems not cost the Federal Government more than the prior paper coupon systems. Alternate methods for issuing food stamp benefits are authorized during disasters when reliance on EBT systems is impracticable.
The Secretary is required to submit a report by October 1, 2003, to Congress, describing the status of EBT systems in each State and national implementation issues.
CSFP is reauthorized through FY 2007. The administrative funding formula is modified to provide a specific reimbursement per caseload slot, subject to annual adjustment.
The Secretary cannot prohibit use of any food safety technology approved or allowed by USDA or the Department of Health and Human Services when acquiring commodities for commodity distribution programs and other domestic feeding programs.
The WIC Farmers' Market Nutrition Act of 1992 mandated USDA to help participants in the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) to obtain fresh fruits and vegetables from farmers' markets. Legislation in 1994 authorized $10.5 million for the program in FY 1995 and "such sums as necessary" for FY 1996-98. Legislation in 1998 reauthorized the program through FY 2003. The 2002 Agricultural Appropriations Act allocated $10 million for the program in FY 2002, with provision for an additional $15 million at the Secretary's discretion.
The additional funding for the WIC Farmers' Market Nutrition Program shall be available through the Commodity Credit Corporation (CCC) in the amount of $15 million until expended.
for more information, contact: Margaret Andrews web administration: webadmin@ers.usda.gov page updated: page updated: June 19, 2002