In a statement by the Pennsylvania (PA) Department of Human Services, proposed congressional cuts would fundamentally destabilize the Supplemental Nutrition Assistance Program (SNAP) that helps both communities and the economy and will only disrupt the state’s economy, workforce, and charitable food network.
The USDA Economic Research Service found that every $1 billion in federal SNAP benefits increases GDP by $1.54 billion and specifically supports job creation and income for food retailers and farmers in PA. Every month, SNAP brings more than $365 million in cash benefits that can only be used on food – supporting local businesses, food producers, and PA’s agricultural economy.
Congressional Proposal
Congress is currently in the midst of a budget reconciliation process that is seeking to make major cuts to federal programs – primarily Medicaid and SNAP. Changes proposed to SNAP would fundamentally alter how this program has been structured years and will threaten food assistance for those in need.SNAP already has a work requirement, and DHS works with employment and training programs across Pennsylvania to help SNAP participants get the skills and supports they need to achieve sustainable employment.
Since its inception, SNAP benefits have been 100 percent federally funded. But the current version of the bill would shift as much as 25 percent of benefits costs to states and add new administrative requirements to the program. These changes would put Pennsylvania on the hook for more than $1 billion annually to maintain these life-sustaining benefits. Pennsylvania cannot backfill these costs.
These changes will impact economic activity for food retailers, producers, and farmers, affect our workforce, and increase demand on our charitable food network. SNAP generates nearly $474 million in grocery wages and supports more than 12,000 grocery industry jobs in Pennsylvania. Spending from SNAP represents a crucial source of revenue in retail grocery stores, especially for smaller, locally owned businesses and grocers who serve lower income communities and represent the majority of SNAP authorized retailers.
As of this printing, the bill still needs to pass the U.S. Senate and be signed into law, so there are currently no changes to SNAP.