Eligible Working Families Participate in the Food Stamp Program at a Lower Rate than Eligible Nonworking Families

A lower percentage of food stamp-eligible individuals in working families  received food stamp benefits than those in eligible nonworking families,  and certain family characteristics are associated with the likelihood of  participation. Finally, working  families that receive unearned income through other government  assistance programs are more likely to receive food stamps than those  with no unearned income. Just Over Half of Members of Eligible Working Families Participated in the Food Stamp Program in 2001

In September 2001, an estimated 52 percent of individuals in eligible  working families participated in the Food Stamp Program, according to an  analysis done for FNS. Among them are whether the family is aware of the program’s  existence and the family’s possible eligibility, the family’s willingness to  deal with the program’s administrative process, whether the family judges  the amount of food stamp benefits received to be worth the effort and cost  of participating in the program, and the extent to which the family  associates a stigma with food stamp receipt. In addition, it is clear that there are potentially significant benefits— including fraud and error prevention, targeting benefits to need, and the  provision of more cost-effective service—to some of the administrative  processes. For working individuals,  getting to a food stamp office during the work week can be difficult. Program officials also  cite the amount of benefits as a reason that some working families do not  participate. FNS and Some States and Localities Have Taken, or Suggested, Steps to Help Working Families Participate in the Program While Ensuring Program Integrity

FNS and the states and localities we visited have taken or suggested a  variety of steps to address identified program impediments that may  hinder the participation of working families in the Food Stamp Program. These efforts include informing the public about the availability of food  stamps, easing the administrative processes, estimating eligibility and the  potential size of benefits, and reducing the stigma associated with food  stamps while also adopting strategies to ensure that serving working  families does not jeopardize program integrity. While the usage of these  tools shows promise where they have been put into place, the final  outcomes of their use are still largely unknown. Many of the federal,  state, and local officials we spoke with believe the program could do more  to serve eligible working families, and FNS’s goal is to make it easier for  low-income and working families to access the benefits to which they are  entitled.
Why GAO Did This Study

Eligible working families are believed to participate in the Food Stamp Program at a lower rate than the eligible population as a whole. As a result, many federal, state, and local officials believe the program is not living up to its potential as a component of the nation's work support system. This report examines: (1) what proportion of eligible working families participate in the program and what family characteristics are associated with a family's participation; (2) what factors may be acting as impediments to a working family's decision to participate in the program; and (3) what steps are being taken, or have been suggested, to help eligible low-income working families participate in the program while ensuring program integrity.

What GAO Found

In 2001, an estimated 52 percent of eligible individuals in working families participated in the Food Stamp Program compared with about 70 percent of eligible members of nonworking families. Participating working families are more likely to receive greater food stamp benefit amounts than those eligible working families that do not participate. Also, participating working families were more likely to participate in other government assistance programs and to rent rather than own their home. Factors that can impede an eligible working family's participation in the program include whether the family is aware of the program's existence and eligibility criteria and whether a family considers the program's administrative process--including having to make frequent trips to a food stamp office during working hours and providing documentation of income--overly burdensome. However, there are some potentially significant benefits, including error and fraud prevention, to some of the administrative requirements. Evidence also suggests that some families weigh the perceived burdens of participation against the benefits of doing so and perceive a stigma attached to receiving food stamps. The Food and Nutrition Service (FNS) and several states and localities have taken or suggested steps to address the impediments to participation in the program for working families, while also considering ways to balance easier participation with program integrity. These efforts include increasing food stamp outreach, adopting new administrative processes to ease participation and reduce program error, developing tools to help families estimate food stamp benefit amount, and re-naming the program to reduce the stigma associated with food stamps. Compiling a complete picture of these steps was not possible, however, because FNS does not systematically track these efforts, and the outcomes of their use are still largely unknown.