USDA Declares Contingency Fund Off-Limits for Food Stamp Support – What This Means for You

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USDA Declares Contingency Fund Off-Limits for Food Stamp Support – What This Means for You

Recently, the Agriculture Department announced it cannot use a special reserve fund to pay food stamp benefits during the ongoing partial government shutdown. This fund is designed to help only when there’s a shortfall in regular appropriations, not when funding is absent entirely.

A memo released amid pressure from Democratic lawmakers confirmed that November benefits for the Supplemental Nutrition Assistance Program (SNAP) won’t be issued. States will not receive reimbursement if they pay these benefits themselves. According to the memo, this contingency fund is strictly for situations where funds have been allocated but are insufficient—not for ongoing assistance.

This decision seems to contradict the department’s earlier shutdown plan, which mentioned these contingency funds as part of their strategy for SNAP. The partial government shutdown started at the beginning of the new fiscal year on October 1. A continuing resolution passed by the House to fund the government through November 21 was rejected by Senate Democrats.

Experts emphasize the importance of maintaining SNAP operations during a shutdown. SNAP serves around 42 million people each month, making it a crucial resource for many low-income households. According to Democratic lawmakers and advocates, the USDA holds roughly $5 billion in its contingency fund. They argue this money should be used to support November SNAP benefits and ensure states can issue assistance.

Notably, the USDA highlighted that the contingency fund is ideally suited for emergencies, like natural disasters, which can happen suddenly. For instance, Hurricane Melissa was mentioned as an immediate concern. This raises questions about the priorities and policies guiding the allocation of these funds.

Historically, SNAP has relied on contingency funds during previous government shutdowns. For example, during the lengthy shutdown from late 2018 to early 2019, the Government Accountability Office found that these funds were successfully utilized to maintain benefit payments.

Several states, including New York, Missouri, and California, have indicated they may not be able to issue November SNAP benefits, as they can’t cover the costs without federal support. The USDA reiterated that states cannot pay SNAP benefits without a guarantee of reimbursement.

In a bid to address this issue, Senator Josh Hawley of Missouri introduced a bill intended to fund SNAP amid the shutdown. As of now, he is seeking bipartisan support for the legislation. Six Republican senators have joined him as co-sponsors, illustrating potential growing support on that side of the aisle.

The current situation emphasizes the fragility of food assistance programs during political gridlock. Many individuals and families dependent on SNAP are left uncertain about their ability to access essential food resources. As the shutdown continues, the balance between political action and the needs of vulnerable populations remains a pressing concern.



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