This report – the latest in an annual series – presents estimates of the percentage of eligible persons, by state, who participated in the Food Stamp Program (FSP) during an average month in fiscal year 2006 and in each of the 2 previous fiscal years. This report also presents estimates of state participation rates for eligible “working poor” individuals (persons in households with earnings) over the same period.

Data from the National Health and Nutrition Examination Survey (NHANES 1999-2004) provide a comprehensive picture of the nutrient intakes, diet quality, and food choices of Food Stamp Program participants. Data are presented for FSP participants, income-eligible nonparticipants, and higher income non-participants, broken out by age and gender. 

The Food Stamp Program helps low-income individuals purchase food so that they can obtain a nutritious diet. One important measure of Program performance is the ability to reach its target population, as indicated by the fraction of people eligible for benefits who actually participate. This report is the latest in a series on food stamp participation rates. Estimates are based on the March 2007 Current Population Survey and FSP administrative data for Fiscal Year 2006. The findings represent national participation rates for FY 2006.

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.