Summer Electronic Benefits Transfer For Children:Early Experiences through June 2011 of the Proof-of-Concept Year Contract #: AG-3198-C-11-0002

Pursuant to the 2010 Agriculture Appropriations Act, FNS initiated and carried out the Summer Food for Children demonstration project, aimed at preventing food insecurity and hunger among children during summer months. 

These demonstration projects are being conducted under the authority and funding provided by the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act of 2010. The Appropriations Act authorized the Secretary of Agriculture to use $85 million to develop and test alternative methods of providing access to food for low-income children in urban and rural areas during the summer months, when schools are not in regular session.

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.