FNS conducted a study of the first two years of this demonstration to describe the implementation process and explore the effects on certification, participation, federal reimbursements, and state administrative costs. This report presents the findings from the first year of the demonstration evaluation, school year 2016–17.

The report describes the project goals and strategies, provides a general description of each grantee, and gives a synopsis of project performance. 

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.