To explore other options for assessing impacts, FNS awarded a contract to provide FNS with new information on: experiences and satisfaction of participants in FNS programs, and impacts of program participation on food security, diet quality, and other indicators of household well-being.

This is the first of a series of annual reports which will assess the administrative error associated with school food authorities’ approval of applications for free and reduced-price school meals. More than 95 percent of students who were approved for benefits on the basis of an application were receiving correct benefits, based on the information in the application files. In school year 2004/05, 3.5 percent of all students who submitted an application for free/reduced-price meal benefits had an administrative error in the processing of their applications.

A summary of past research on program operations and outcomes related to the Food Stamp Program.

Most discussion of payment accuracy in the Food Stamp Program focuses on the overall level and cost of payment errors. Rarely does the discussion focus on the impact of payment errors on individual households affected. This analysis – based on 2003 food stamp quality control data – leads to two broad conclusions. First, virtually all households receiving food stamps are eligible. Thus, the problem of erroneous payments is not so much one of determining eligibility, but rather one of attempting to finely target benefits to the complicated and changing circumstances of low-income households. Second, most overpayments to eligible households are small relative to household income and official poverty standards. As a result, most food stamp households are poor, and they remain poor even when overpaid.

The Child Nutrition and WIC Reauthorization Act of 2004 directed the Secretary of Agriculture to conduct a study of the feasibility of using computer technology to reduce over-certification, waste, fraud and abuse in the National School Lunch Program.

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.