This study examined the feasibility of creating a data collection system capable of directly and automatically providing USDA with item-level data on purchases made by SNAP households. Data would be captured at the point of sale from purchases made using EBT cards.

The Nutrition Assistance Program in the Commonwealth of Puerto Rico provides a monthly benefit for food to low-income households that includes both cash and noncash portions. Three-fourths (75 percent) of the benefit must be redeemed for eligible food items through electronic benefit transfer (EBT) at certified retailers. The remaining 25 percent may be redeemed in cash. The entire benefit (both the noncash and cash portions) is to be used only for the purchase of eligible food items.

FNS uses a set of EBT-based administrative tools and undercover investigations to identify and sanction trafficking retailers, and to estimate the extent of trafficking. The estimates of the amount of trafficking, the trafficking rate, and the store violation rate reported here are based on information from almost 33,000 stores subject to administrative or undercover investigation from late 2002 through 2005.

Food stamps are intended for food. When individuals sell their benefits for cash it violates the spirit and intent of the Food Stamp Program as well as the law. This practice, known as trafficking, diverts food stamp benefits away from their purpose. It reduces intended nutritional assistance and undermines public perceptions of the integrity and utility of the program. To combat trafficking, the Food and Nutrition Service conducts undercover investigations of authorized food stores. In addition, the agency has developed powerful new EBT-based administrative tools to identify and sanction traffickers.

This analysis explores patterns of permanent benefit removal in Texas, Arizona, and Wisconsin, three states where EBT is the primary method of benefit distribution, but where there are low percentages of elderly. The findings suggest that a relatively small number of food stamp participants do not access their benefits for extended periods.

This report describes how the Direction Card system works; the process undertaken by ODJFS and its EBT vendor to design, develop, and test the system; the implementation process and experiences; and the cost of system design, development, and implementation. Volume 2 of this report compares the ongoing administrative costs of system operations and system levels of benefit loss and diversion with those of on-line EBT systems and the Dayton pilot.

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.

This report is the final product of a study designed to learn about state Food Stamp Program policy choices and local implementation of these policies after the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. The report presents examples of policies and practices that may have affected client service in the FSP in terms of program accessibility, quality of service and availability of employment and training services, particularly for food stamp recipients that do not receive cash assistance (non-TANF food stamp households).

This is the second report in a series of publications that presents estimates of the percentage of eligible persons, by state, who participate in the Food Stamp Program. This issue presents food stamp participation rates for states in September 1997 and the changes in state rates between September 1994 and September 1997. This information can be used to examine states’ performance over this period and help understand the effects on food stamp participation rates of a strong economy with expanding job opportunities and the very early consequences of welfare reform and food stamp changes that were brought about by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.