While this basic funding structure is still  in place, several changes have been made since the late 1990s. In addition, states no  longer have to spend 80 percent of federal grant funds on work activities  for ABAWDs. While nationwide data on the number of and characteristics of Food  Stamp E&T participants are not available, state and local officials in the   15 states we reviewed described the population as generally hard to  employ because they have little education, a limited work history, and are  prone to substance abuse problems and homelessness. Food Stamp E&T Participants Are a Small Proportion of the Food Stamp Population and Usually Receive Benefits Only from the Food Stamp Program

Food Stamp E&T participants comprise less than 9 percent of the food  stamp population because most food stamp recipients are exempted from  work requirements, such as registering for work or participating in the  Food Stamp E&T Program. While states may provide participants with a range of  employment and training activities, in 2001, states most often placed  participants in job search and work experience. Participants engaged in  work experience activities are required to work without pay in exchange  for food stamp benefits. Legislative Changes May Affect Services Provided to Participants

Legislative changes enacted by the 2002 Farm Bill may affect the services  that states provide to program participants by reducing the total amount of  Food Stamp E&T federal funds available to states to $110 million—or   $274 million lower than funds they had available in fiscal year 2001. Services Are Delivered through a Variety of Local Entities and Are Not Necessarily Linked to Other Employment and Training Programs

In 13 of the 15 states we contacted, the agency that administers the TANF  block grant also oversees the Food Stamp E&T Program; in the 2 other   states, the Food Stamp E&T Program is administered by the workforce  development system. While all but  1 of the states we contacted delivered at least some of their Food Stamp  E&T services at the one-stops, the extent to which states use the one-stops  to deliver these services varies considerably. In other  counties, services are delivered at welfare offices. While employment and training programs at the one-stops offer some of  the activities that Food Stamp E&T participants need, officials from 12 of  the 15 states we contacted told us that most participants are not ready for  these activities, in part, because they lack basic skills (such as reading and  computer literacy) that would allow them to successfully participate. For example, the Department of Health and Human Services (HHS) is  conducting evaluation studies on early childhood programs, and the  Department of Labor recently evaluated the impact of the Job Corps  program on student employment outcomes. Little nationwide data exist to tell us who is  participating or if they are getting a job. Even less is known about whether  the services provided by the program make a difference in program  outcomes. In addition, outcome data provide the Congress with key  information necessary to evaluate the effectiveness of federal employment  and training programs.
Why GAO Did This Study

Since the late 1990s, many funding changes have been made to the Food Stamp E&T Program. In 1997, legislation required states to spend 80 percent of their funds on participants who lose their food stamp benefits if they do not meet work requirements within a limited time frame. The legislation also increased funds by $131 million to help states serve these participants. But spending rates for the program declined until, in 2001, states spent only about 30 percent of the federal allocation. In 2002, the Congress reduced federal funds to $110 million a year. While it is too soon to know the impact of these changes, GAO was asked to determine whom the program serves, what services are provided, and what is known about program outcomes and effectiveness.

What GAO Found

Food Stamp Employment and Training (E&T) participants are a small proportion of the food stamp population and do not usually receive cash assistance from other programs. While the U.S. Department of Agriculture (USDA) does not collect nationwide data on the number and characteristics of Food Stamp E&T participants, program officials in the 15 states GAO contacted described the population as generally hard to employ because they have little education and a limited work history. States may provide program participants with a range of employment and training activities that qualify them for food stamp benefits. USDA data show that, in fiscal year 2001, job search accounted for about half of all participant activities. Work experience--whereby participants receive food stamp benefits in exchange for work--accounted for about 25 percent. Food Stamp E&T services are delivered through a variety of local entities, such as welfare offices or one-stop centers--sites designed to streamline the services of many federal employment and training programs. While all but 1 of the 15 states delivered at least some of their Food Stamp E&T services at the one-stops, Food Stamp E&T participants do not usually engage in intensive services provided by other programs at the one-stops. Program officials from most of the 15 states noted that Food Stamp E&T participants generally lack basic skills that allow them to use other program services successfully. No nationwide data exist on whether the Food Stamp E&T Program helps participants get a job. While some outcome data exist at the state level, it is not clear the outcomes were the result of program participation. USDA has no plans to evaluate the effectiveness of the program nor have the Departments of Labor or Health and Human Services included Food Stamp E&T participants in their studies of the hardest-to-employ.