On our podcast, we have often talked about the Supplemental Nutrition Assistance Program, or SNAP. In many of those conversations, we've talked about the benefits and eligibility, and ways to improve the work that SNAP does to help low-income families meet their food needs. In today's podcast, we're going to turn our attention to a particular challenge, and it's the SNAP skimming fraud. To help us understand this and the larger context of SNAP, we have the great pleasure of talking with Salaam Bhatti, who is the director of SNAP at the Food Research and Action Center, or FRAC.

Interview Summary

So, let's provide a little bit of level setting for our listeners. Can you tell us what role SNAP plays in the lives of individuals who are facing low income or food insecurity?

Yeah, Norbert, the problem with being in the richest, most powerful nation in world history is that we are facing a food and hunger crisis. We have the means, we have the resources to solve for it, but we haven't. For the record, the USDA, the United States Department of Agriculture, did a study last year. They do this study every year where they report food security in the country. In 2023, 86.5 percent of U. S. households were food secure. The remaining 13.5 percent, which is 18 million households, were food insecure. And this was an increase from 2022. So, 86.5 percent of food security is barely a B+. To be in the most powerful wealthiest nation in the world and we're barely getting a B+ in this space is unacceptable. And so, we saw some really interesting policies happen during the pandemic. We saw emergency allotments come in for the SNAP program, where all households received the maximum benefit amount for their households. And that, unfortunately, sunset. When that emergency allotment was in place, food insecurity-surprise, surprise-decreased. But not just that, we also saw Medicaid healthcare spending costs decrease as well. Because who would have thought that when people had food security, they didn't need to go to the emergency room because their blood sugar was low. So, we're experiencing a lot of challenges where we've seen the government show its hand that it can end poverty. It can end hunger. It just chooses not to.

We know that SNAP is an entitlement program. It's available to anyone who meets the eligibility requirements. But we know that everyone who's eligible doesn't participate in the SNAP program. Can you help us think about how more people can be enrolled who are eligible. And maybe we even need to think more broadly about what is eligibility? What are your thoughts about this?

In a given month these days, about 42 million people participate in SNAP. That's a lot of people. I would say that 42 million people are participating in it every day, but unfortunately, SNAP benefits do not last the whole month. By the third week of the month, people's SNAP benefits have been exhausted.

Now, taking a step back, in case the listeners don't know how SNAP benefits work, it's a, as you said, a government program. And it comes in the form of an electronic benefits transfer card, an EBT card. It looks like a credit card, looks like a debit card. But really, it's more like a hotel card key, because it doesn't have the security measures, which we can talk about later in the show. It doesn't have the security measures that a credit and a debit card have. It is essentially a glorified hotel key. It's got the magnetic stripe on the back, circa 20 years ago. Maybe 15. I'm dating myself. I don't know how long ago it was we were swiping the cards. But all you gotta do is you swipe the card and you type in your PIN. And then you can use it at the EBT retailer. That is in a nutshell how 40 million people are utilizing SNAP benefits every single month.

The program itself is also vital to retailers as well. We've seen that every dollar of SNAP benefits generates about $1.54 in economic activity during an economic downturn. So that means that when somebody is using their SNAP benefits at the grocery store, it's helping that grocery store keep the lights on. You know, employ the cashiers. And we need to employ cashiers, enough of this self-checkout stuff. It helps to pay the truck driver who's transporting the produce to the store. And it ultimately even helps pay the farmer for growing the crop. So, it's a great investment from the federal government into not just our households to help them put food on the table, but really into the whole local economy. And it is immediately used directly by the people and helps so many people.

Now so, to your question about how do we enroll more people? Well, luckily we are at a time where the USDA reports that in the fiscal year 2022, 88 percent of eligible individuals were participating in SNAP. And that is the highest participation rate we've seen since they started tracking this in the past 50 years. That's great. But again, it's just a B+ so we can do better. There is room to improve. In the study, it showed that older adults, those who are over 60, they're participating at lower rates with only 55 percent of eligible members in that age category participating. We also have so many military families and veterans who are eligible, but don't participate.

This SNAP gap is something that our partners are working throughout the states, throughout the entire country. We're working in partnership with a lot of federal agencies and partners as well. So, how do you ultimately close the SNAP gap? We're seeing a lot of targeted outreach. Seeing a lot of education efforts, but, you know, with 88 percent of eligible people participating, what's going on-on the local level? And unfortunately, Norbert, we've seen that state agencies which administer the SNAP program are unfortunately understaffed and they're underfunded. I used to be a state advocate at the Virginia Poverty Law Center. And when I was, hustling in the halls and lobbying for a million households with low income, I became friends with our social services agency because we had similar goals. We wanted to help households with low income. And we came to learn that the agency that we are relying on to administer the program was never getting their budget met by the legislative assembly. So, what we did was we got into partnership with them to advocate for their budget so that they could retain their staff, and so that the staff could do the job. That is something that we have to do across the states. Support these social service agencies in getting the funding so that they can have the staffing so that they can administer the programs in a timely way.

Unfortunately, I don't know if you've seen this but earlier this year, the USDA Secretary Vilsack sent out a letter to like 44 state agencies, including D. C. and Guam. Being very concerned about their timeliness issues because they're supposed to complete the application reviews and determine eligibility within 30 days. And that's for a normal SNAP application. You have seven days for expedited applications. And 44 of these agencies were not meeting the mark. That's bad for, in terms of deadlines, but even worse for the families experiencing the food insecurity. So that is a very layered answer. It's the seven-layer dip answer of how we increase participation. Well, we need more staff to, to help that out.

I hear that, and I'm really grateful for how you hit it at this point, and I want to draw a little more attention to it. While you talk about 88 percent participation, it looks different on a state-by-state level. Some states have a higher level of participation, other states don't. Do you think it's really the ability of those state agencies to provide that support, or do you think there are other factors that may be influencing the differential participation rates across states?

Yeah, so we saw a big retirement, the great resignation, that happened during the pandemic. There were so many state agency employees, you know, who were, who were doing the job because they were passionate about it. They were also at retirement age. So, we saw quite a resignation happen. Because it was incredibly difficult. It was traumatizing to be involved in this space. And so, they resigned, or they retired, or they moved on to somewhere else. The new workers came in and they learned the programs with the flexibilities that were provided during the pandemic. Now, they have to relearn the program because all those flexibilities are gone. So, we're seeing a lot of administrative burden taking place within these agencies.

I have a colleague, Carolyn Barnes, who's worked on this idea of administrative burden and the challenge of what's sometimes referred to as street level bureaucrats. The people who are on the ground who do the administration of these programs and the challenges that they face and the ways they engage folks. I appreciate hearing more about this. And I'm going to ask a potentially controversial question then. What if we took that responsibility out of the hands of state agencies and privatized that? What would that look like?

Oh, and people have tried that. Governments have tried that, and it's always resulted in net losses. Not only has it cost the states more, but it has also led to the participants not receiving their benefits, or receiving less than, or receiving an error of more than. So many errors have resulted, which has made the program and administration worse. Which is an interesting question because a lot of people don't know that there are skilled employees at the helm within the agencies that are working on these eligibility determinations. They're known as merit-based staff. And ev...