FOOD STAMP FIASCO

The Wall Street Journal

  • June 20, 2012

Food Stamp Fiasco

The Senate refuses to cut $20 billion out of $770 billion.

The next time someone moans about Washington “austerity,” tell them about the Senate’s food stamp votes on Tuesday. Democrats and a few Republicans united to block even modest reform in a welfare program that has exploded in the last decade and is set to spend $770 billion in the next 10 years.

Yes, $770 billion on a single program. And you wonder why the U.S. had its credit-rating downgraded?

When the food stamp program began in the 1970s, it was designed to help about 1 of 50 Americans who were in severe financial distress. But thanks to eligibility changes first by President George W. Bush as part of the 2002 farm bill and then by President Obama in the 2008 stimulus, food stamps are becoming the latest middle-class entitlement.

A record 44.7 million people received food stamps in fiscal 2011, up from 28.2 million as recently as 2008. The cost has more than doubled in that same period, to $78 billion, and is on track to account for 78% of farm bill spending over the next decade. One in seven Americans now qualifies.

Once there was a stigma to going on the dole, and it was seen as a last resort. But now the Agriculture Department runs radio and TV ads prodding people to get the free food, as in a recent campaign that says food stamps will help you lose weight. A federal website boasts about strategies that have “increased program participation” with special emphasis on Hispanics because “our data show that many low-income Latinos simply don’t apply for [food stamps] even though they’re eligible.”

In the 1990s Bill Clinton boasted that welfare reform took Americans off the dole. The Obama Administration boasts about how many it has added.

Enter Alabama Republican Jeff Sessions, who proposed reforms to limit the worst excesses. One proposal would have established a federal asset test to ensure that food stamps aren’t going to families that may not have an income but have tens of thousands of dollars in savings or may even live in a million-dollar home. Some 39 states have no real asset test for food stamps, which means wealthy families without anyone in the job market are eligible, and 27 have gross-income limits that are above 130% of the federal poverty guidelines.

That amendment lost 56-43, with every Democrat except Missouri’s Claire McCaskill opposing it. New England Republicans Scott Brown, Susan Collins and Olympia Snowe and Nevada’s Dean Heller joined the antireformers.

1foodstamps

Associated PressA sign outside of a store in Sioux Falls, S.D., tells customers that food stamps are welcome.

Mr. Sessions also tried to end the preposterous federal policy of paying some $500 million in bonuses to states that sign up more people for food stamps. This is the way government becomes a permanent feedback loop promoting even bigger government. That amendment lost 58-41, with every self-described Democratic “deficit hawk” opposed.

Still to come is an amendment on another egregious practice that lets some 15 states automatically enroll families for food stamps if they get federal home-heating subsidies. Some states mail heating subsidy checks of as little as $1 a month so families can qualify for federal food stamp benefits of as much as $130 a month. That amendment too is expected to fail.

It’s true that the recession and feeble recovery have expanded the number of people who need food assistance, but Mr. Sessions’s reforms would have harmed no one who really needs help. His amendments would have saved at most some $20 billion over 10 years, which would still leave some three-quarters of a trillion dollars in outlays.

Earlier this year, House Republicans passed their own food stamp reform that will save some $34 billion over a decade. That bill will now go to a House-Senate farm bill conference, and perhaps some savings can be salvaged. But the news in the Senate vote is that the political class still isn’t remotely serious about reforming government. The voters are going to have to clean out a lot more spenders in November if they want real change.

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