Title: Food Stamps and Unemployment Compensation in the COVID-19 Crisis | Research Highlights | Upjohn Institute
Headings: Food Stamps and Unemployment Compensation in the COVID-19 Crisis
Food Stamps and Unemployment Compensation in the COVID-19 Crisis
Before and After the Great Recession
Likely Effects of the CARES Act on SNAP and UI Receipt
Experts
Christopher J. O'Leary

Content: For states with work-sharing, a program that allows workers whose hours are reduced by employers to receive pro-rated UI benefits for the hours they do not work, benefits are fully paid by the federal government. States currently without work-sharing programs receive federal funding to start the program, with half of benefits paid by the federal government. Employment and training requirements are suspended for SNAP beneficiaries. SNAP funding is increased by $15.3 billion to cover newly eligible households and those receiving expanded benefits due to changes in their economic situation. Likely Effects of the CARES Act on SNAP and UI Receipt
UI receipt in the next few months is likely to soar. Just for the week ending March 21, new UI applications hit 2.9 million, not adjusting for seasonal trends—nearly three times the previous record. Considering that 20 million beneficiaries were added in 2010, during the depth of the Great Recession, and the broadened coverage from CARES Act—including the self-employed, relaxed eligibility requirements, and higher benefits—it is not unreasonable to expect at least 50 million UI beneficiaries at the peak of the current recession. Despite the additional funding and eased requirements for SNAP, the bulk of income replacement during the Covid-19 crisis will almost certainly come through UI benefits. The increased generosity of UI under CARES Act, relative to the Great Recession, will probably reduce the rate of joint UI and SNAP participation through December 31, 2020, when the CARES Act is set to expire. Therefore, the majority of added SNAP benefits will likely go to households already on SNAP.