This is a report of the National Academies' Institute of Medicine (Food and Nutrition Board), published here by permission.

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 imposed a work requirement and time limit on food stamp recipients viewed as fit to work – able-bodied adults without dependents. ABAWD participants are limited to three months of benefits in a three-year period unless they meet a work requirement. This study provides a national picture of how states implemented the ABAWD provisions and who was affected.

Over the last decade, food stamp participation rose more sharply than expected following the relatively short and mild recession in the early 1990s and fell more sharply than expected after 1994 during the sustained period of economic growth. Report language accompanying the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act of 2001 directed the Food and Nutrition Service to study the decline in participation in the Food Stamp Program.

This study examines the experience of states in developing and operating special-purpose savings account programs for low-income households. The Food and Nutrition Service (FNS) is interested in the use of special-purpose accounts for the low-income population--especially for households receiving food stamps--as a means of promoting self-sufficiency . These accounts enable low-income persons to accumulate savings for specified purposes such as education, home purchase, home improvement, and business start-up. In many program initiatives, the account holder qualifies for matching funds to enable a more rapid accumulation of savings, as long as the account balances are used for the specified purposes. Such matched accounts are typically called a individual development accounts or IDAs.