Food Stamps | GatewayJobs.com

hile many low-income Americans believe that food stamps are a temporary option utilized during sporadic periods of unemployment, the food stamp program (FSP) is in fact a viable option to decrease hunger for all low-income Americans.

FSP is the federal government's most targeted attempt to decrease food insecurity. The mission of the program is to end hunger and improve nutrition and health by providing low-income citizens with the resources necessary to purchase food.

Calls for an increase in the minimum wage often cite increased food stamp utilization as a primary signal in favor of an increase. In reality, the vast majority of food stamp recipients do not participate in the full-time labor force. A 2001 report analyzing the characteristics of food stamp recipients shows that only 26 percent of recipient households reported any level of earned income while receiving food stamps. Sixty-nine percent of recipient households report only unearned income in the form of Temporary Assistance for Needy Families (TANF), general assistance, SSI, social security and other sources. Increasing the minimum wage will do nothing to help these individuals and may actually hurt their attempts to secure employment and move towards self-sufficiency.

In order to determine eligibility for food stamps, the following criteria are utilized:

Resources: According to the USDA guidelines, a household can have up to $2,000 in countable resources, or $3,000 if at least one person in the household is over 60 or disabled. Resources such as home and lot, supplemental security income, TANF payments and many retirement plans are not counted towards allowable resources. The fair market value of a licensed automobile worth over $4,650 is counted as a resource. A licensed vehicle is not counted as a resource if it is used for an income-producing purpose, it is annually producing income consistent with its fair market value, it is needed for long-distance travel for work, it is used as a home, it is needed to transport a physically disabled household member, it is needed to carry most of the household's fuel and water, or if the household has little equity in the vehicle.
Income: Participation in the FSP is contingent on certain net and gross income limits.
Deductions: In order to determine the net income figure used for the calculation of benefits, the FSP allows certain deductions. These include: 20 percent of earned income, a standard $134 deduction for all households, a dependent care deduction, uncovered medical expenses exceeding $35 a month, legally owed child support, and excess shelter costs that are more than half of the household's income after other deductions, up to a limit of $354.