The WIC Vendor Management Study: 2015 Electronic Benefits Transfer (EBT) Pilot examined compliance with program requirements and rates of violations among WIC EBT vendors in 2015 and tested a method to identify and measure errors that contribute to improper payments in an EBT environment.

The purpose of this study is to evaluate the effectiveness of state agencies current peer group systems, and to provide guidance to state agencies on how to evaluate and update their systems. Specifically, it uses empirical analysis to identify one or more effective models for establishing vendor peer groups that could apply to most state agencies.

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.

This study is part of a larger FNS effort to ensure WIC program integrity and to comply with the Improper Payments Information Act of 2002 which requires FNS to estimate improper payments in its programs.

SEBTC demonstration offered a rigorous test of the impact of providing a monthly benefit of $60 per child - using existing electronic benefit transfer (EBT) systems - on food insecurity among children during the summer when school meals are not available.

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.

Program errors and the risk of erroneous payments in the National School Lunch Program (NSLP) and School Breakfast Program (SBP) continue to be a concern. Slightly more than one in five students were certified inaccurately or erroneously denied benefits in school year (SY) 2005-06. New data estimates the gross cost of school meals erroneous payments due to certification error at about $935 million while other operational errors represent about $860 million. 

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.

From July to September 2002, FNS reviewed the free and reduced price eligibility determination process (i.e., application, verification, reapplication, meal ticket status) for each of 3,474 applications selected for verification in 14 large school food authorities in the 2001-02 school year. These SFAs enroll nearly one million children, among whom 45 percent were approved for free meals and 7 percent were approved for reduced price meals as of Oct. 31, 2001.

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.