The Early Food Stamp Program

The initial Food Stamp program started over sixty-five years ago on May 16, 1939 and lasted until the spring of 1943 (USDA). This earlier edition of governmental assistance to help needy Americans purchase food was implemented by the Department of Agriculture to reduce its surplus of goods. Secretary of Agriculture Henry Wallace and the program’s First Administrator Milo Perkins are the two individuals usually credited with the idea of this federally funded program.

"We got a picture of a gorge, with farm surpluses on one cliff and under-nourished city folks with outstretched hands on the other. We set out to find a practical way to build a bridge across that chasm." (Milo Perkins)

The early program’s short four-year existence provided relief for those under-nourished Americans to purchase food to meet the requirements of an adequate and healthy diet. The program operated by the purchase of orange and blue stamps. Orange stamps were purchased and could be used to buy any food. For every $1 of orange stamp purchased, 50 cents worth of blue stamps were received. The blue stamps were limited to only buying food the Department of Agriculture determined surplus. The program reached over 20 million people and helped solve the problem of selling unmarketable food surpluses and widespread unemployment stemming from the Great Depression. But with the success of President Franklin Roosevelt’s New Deal legislation to provide the unemployed Americans with jobs and the onset of World War II ended the huge demand for a food stamp program.

The Pilot Food Stamp Program and Birth as Permanent Legislation

Not until 18 years later was the Food Stamp program reinstated first under the Kennedy administration on Feb. 2, 1961 as a pilot program. President Kennedy initiated the program and required participants to once again purchase stamps but eliminated the special stamps for surplus food. The emphasis would be on Americans consuming perishables. Under President Johnson through his domestic policy The Great Society, the pilot Food Stamp program became permanent on August 31, 1964 by way of the Food Stamp Act of 1964 (USDA). Food stamps were seen as the answer to the widespread poverty that was gripping America during the mid 1960s.

The Food Stamp Act established eligibility standards, prohibitions against discrimination on bases of race, religion, national origin or political beliefs, established the division of responsibilities between the states and the federal government and set up appropriations for the first year and following years. The program became a national phenomenon with millions participating and enrollment continuing to increase annually (USDA). Through the mid 1960’s and into the late 1970’s the Food Stamp Program provided the means to purchase much needed food to maintain a healthy diet. The program began operating nationwide on July 1, 1974 and through the Food Stamp Act of 1977 made the selection and eligibility process for potential families easier (USDA). The main change was eliminating the purchase requirement for eligible Americans and establishing anti-fraud measures and reduction of errors measures.

Streamlining the Program

Participation surpassed 20 million and the budget for the Food Stamp Program reached in the billions of dollars in 1979. Because of the severe domestic hunger problem in the late 1980’s improvements in the program were implemented. Benefits were increased; severe penalties were established for food stamp violations and Electronic Benefits Transfer (EBT) was presented as an alternative to the paper form of food stamps (USDA).

The 1990’s brought even more changes to the program. The 1993 Mickey Leland Childhood Hunger Relief Act provided an increase in funding for Food Stamps to almost $3 billion and participation in 1994 reached 28 million people (USDA). With the Personal Responsibility and Work Opportunities Reconciliation Act of 1996 and other welfare reform in the 1990’s the FS recipient population was greatly reduced and the block grant system was introduced. In addition, the stricter rules governed who was eligible for food stamps. However, most of these restrictions were amended with the Farm Bill of 2002. This bill restored most of the eligibility for food stamps for certain groups of Americans including qualified aliens who had been in the country for at least five years and others. In addition, more simplification of the program was implemented along with introducing a performance bonus plan for funding states based upon several different measures of performance and making states use EBT before Oct. 1, 2002 (USDA). To ensure more people eligible people could receive benefits the exclusion of all vehicles from countable property was implemented in 01/01/2004 (FAB presentation).

The Food Stamp Program from its earliest beginnings in 1939 to present day has provided Americans and their families with means to purchase needed food. Food stamps are not welfare but a complement to this governmental program. The use of food stamps provides Americans with the means to take control of their lives and ensure that their families do not go hungry.

Food Stamps are Good for the Federal and Local Economies

Despite the Food Stamp Program’s multiple additions and subtractions the program has always allowed for poor Americans to be able to purchase nutritious food to maintain a healthy diet and lifestyle. Food stamps allow for poor working families to make ends meet. The stamps are not even stamps anymore but come in the form of EBT cards which are just like debit cards and can be used at most grocery and retail food stores. This electronic aspect ensures accuracy of fund transferring and efficient transactions (Center on Budget and Policy Priorities, 2005). The program is a catalyst for economic growth. According to a USDA study $5 of food stamps generates $10 in total economic activity (Hanson, Kenneth and Elise Golan, 2002).

Food stamp participation closely follows the economic cycle. The number of people getting food stamps fell by over 40 percent in the late 1990s, largely because of the strong economy. When the economy again weakened, the Food Stamp Program was there– almost 8 million more people get food stamps now than did when the last recession began in early 2001 (Center on Budget and Policy Priorities, 2005).

Food stamps are effective, efficient and necessary in America, in California and in San Luis Obispo County. However not everyone who is eligible is receiving food stamp benefits. The California Food Policy Advocates 2005 study illustrates of the 11,621 eligible for food stamps in SLO County, 47% of these individuals are not receiving benefits. This equates to a loss of over $5.8 million in federal funds to the county because of the underutilization of this program. These funds can and should be used to help SLO county families who need the assistance in purchasing food and in turn will stimulate growth in the economy.

These individuals as well as millions of others in California and in the rest of the nation need to be aware they are eligible and can receive food stamp benefits from the government. Monthly income and the number of people in a family determine the monthly dollar amount in food stamps received. The future focus for food stamp benefits is disseminating information about the program and providing community organizations with the time, money and personnel to provide adequate and complete outreach methods to eligible Americans. Food Stamps in the form of EBT cards will continue to provide poor working families and individuals with the assistance they need for years to come.

Written By Jeff Porto Jr.

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