New Resource Details Unclaimed Federal Food Stamp Benefits

Urban areas are disproportionately home to America’s poor and underfed, yet these regions lost what amounts to billions of dollars in unused federal food stamps during 2005. The Food Research and Action Center (FRAC) recently released a report tallying discarded food stamp dollars in 24 U.S. urban areas and major counties. The bottom line: over $2.27 billion in unclaimed food stamps.

FRAC’s region-by-region analysis allows for comparison of major urban locations based on poverty rates and program enrollment. Areas such as New York City, Los Angeles, Houston, and Chicago have not only some of the highest nationwide percentages of children in poverty but also the highest number of unused food stamp dollars. Cook County alone lost out on over $160 million in federal food stamp dollars and ranks fourth in the nation in the amount of unused food stamp dollars.

Local economies lose out on federal food stamp dollars because eligible individuals do not participate in the Food Stamp Program. Although over three-quarters of Cook County’s eligible residents participate in the program, more than 180,000 low-income Cook County residents are eligible but not receiving food stamps. Researchers have identified a number of possible explanations, including language barriers, stigma associated with getting public assistance, and understaffing of state welfare agencies that administer food stamps.

Lack of need, however, is certainly not an explanation. More than 20 percent of Chicagoans live in poverty. Almost 500,000 people each year rely on emergency and supplemental food from Cook County food pantries, soup kitchens, and shelters. Reliance on these Cook County agencies grows steadily. According to a Chicago Anti-Hunger Federation report, the number of those seeking food assistance in Chicago rose 18 percent in 2006 alone.

State and local governments must do more to ensure that individuals benefit from this key antipoverty initiative. Food stamps are the first line of defense against hunger and malnutrition in the United States. And the cost burden on the state is next to nothing. Food stamp benefits are fully federally funded, and while states administer the program, the federal government shares close to half of the administrative costs.

Earlier this autumn, New York Gov. Elliot Spitzer announced an initiative to enroll an additional 200,000 individuals in the state’s food stamp program. With this increased food stamp participation, New York’s economy is expected to receive an additional $200 million in federal funds. State and local leaders should follow this planned initiative closely and use the best practices in their own efforts to maximize food stamp participation.

The FRAC report is available online.

Details about Governor Spitzer’s Working Families Food Stamp Initiative can also be found online.