As budget negotiators lurch toward their December 13 deadline for funding the government, another conference committee is struggling to reach an agreement over the farm bill. Unsurprisingly, the dispute is not over the bill’s completely unjustifiable subsidies for agribusiness (both parties support those) but food stamps.
House Republicans passed a bill calling for $39 billion in reductions in the planned budget for food stamps (technically known as the Supplemental Nutrition Assistance Program, or SNAP) over the next ten years. A bipartisan Senate bill included just $4 billion in cuts. A couple of weeks ago it looked like negotiators were ready to settle on roughly $10 billion, but now it looks like that agreement has fallen through, at least for the moment.
The timing for the negotiations happens to be problematic, coming during the holiday season and shortly after the 2009 stimulus’s temporary increase in SNAP benefits expired on November 1. Those extra benefits, incidentally, expired in part because the Obama administration diverted some of the funds to other projects, including Michele Obama’s anti-obesity efforts.
Democrats and the media are raising the usual outcry over Republican hard-heartedness and suggesting that the proposed Republican cuts will lead to widespread hunger and hardship. Most of the handwringing is based on myths. Among them:
The massive increase in food-stamp spending was caused by the recession, so cuts are insensitive to economic reality. The food-stamp program certainly has exploded in the weak economic years since 2009, from 33.5 million beneficiaries at a cost of $53.6 billion a year to 47.7 million beneficiaries at a cost of $82.9 billion. Much of that increase was indeed due to the recession and increased unemployment. But the growth in food stamps actually started long before the recession began — under George W. Bush, in fact. President Bush nearly doubled both the program’s cost and the number of recipients.
In addition, studies show that the increase in food stamps was much greater during this recession than in previous ones, suggesting that at least some of the increase was due to policy decisions rather than economic conditions.
The CBO projects that long after the recovery solidifies and unemployment declines, both costs and participation will remain at much higher levels.
Michael D. Tanner is a senior fellow at the Cato Institute, heading research into a variety of domestic policies with particular emphasis on health care reform, welfare policy, and Social Security. His most recent white paper, "Bad Medicine: A Guide to the Real Costs and Consequences of the New Health Care Law," provides a detailed examination of the Patient Protection and Affordable Care Act (Obamacare) and what it means to taxpayers, workers, physicians, and patients.