A fundamental issue in the design of the Food Stamp Program (FSP) is the form benefits should take. Advocates of the current coupon system argue that coupons are a direct and inexpensive way to ensure that food stamp benefits are used to purchase food; that, despite some evidence of fraud and benefit diversion under the current system, the unauthorized use of food stamps is relatively limited; and that coupons provide some measure of protection to food budgets from other demands on limited household resources. Advocates of replacing coupons with cash argue that the current system limits the food purchasing choices of participants, places a stigma on participation; and entails excessive costs for coupon issuance, transaction, and redemption.
Prior to 1982, school districts were not required to verify the income or household size declared by households that applied for meal benefits. It was assumed that households were correctly reporting their income, and children from households that applied and declared a sufficiently Low income were given free or reduced-price meals. From 1982 to the present, the verification of household income for at least some of the approved application s for meal benefits has been part of each school district's responsibilities.