This report explores the feasibility and potential cost of enabling EBT systems to differentiate between program-eligible and ineligible items. It considers the cost of upgrading systems in stores that now have scanners and the cost of installing new systems in stores without scanners. The report also examines the potential for the purchase of ineligible items even with the introduction of new technological controls.

This report is the first to present information on a little-known segment of the Food Stamp population that has been profoundly affected by welfare reform—unemployed, childless, 18-50 year old able-bodied adults. As government agencies find themselves having to learn quickly about those affected by the new rules of public assistance , the need to gather timely and accurate information has never been greater.

The report presents the results of a survey conducted with every state during November and December 1997 to gather detailed information on state options taken in six main areas, with particular focus on time limits and work requirements for able-bodied adults without dependents (ABAWDs) and on food stamp sanctions.