The Child and Adult Care Food Program subsidizes nutritious meals and snacks served to participants in child care nationwide, providing different levels or “tiers” of meal reimbursement based on the income level of participating children, providers, and nearby geographic areas. Policymakers have long been concerned that programs such as CACFP are not as accessible to eligible children in rural areas as in urban areas.

The Child Nutrition and WIC Reauthorization Act of 2004 authorized a pilot to operate in rural Pennsylvania during the summers of 2005 and 2006. The purpose was to test whether lowering the site eligibility threshold from 50 percent to 40 percent would increase the number of children participating in the program. 

The report assesses the existing commercial infrastructure of on-line Electronic Benefits Transfer (EBT) in the context of multi-state, multi-program EBT. The findings are based on interviews of respondents involved with the EFT commercial infrastructure.

The Maryland demonstration was the first statewide roll-out of an electronic benefit transfer (EBT) system involving multiple programs on a single card. The goal was to confirm that a large- scale, multi-program EBT system is technically feasible and determine whether such a system can achieve cost-neutrality government-wide while maintaining high quality service for recipients. The test involved food stamps plus five cash-benefit programs: Aid to Families with Dependent Children (AFDC), Bonus Child Support for AFDC Recipients, Disability Assistance Loan Program, Non-Public Assistance Child Support, and Public Assistance for Adults. All parts of Maryland, both urban and rural, were converted to EBT.

The objectives of the demonstration were to determine the technological feasibility of offline EBT; whether it would be accepted by stakeholder groups; and whether it would be cost-effective.