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.

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.

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.

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 pamphlet provides estimates for Food Stamp Program participation rates by states. It will be the first widely-released document showing the percentage of eligible people, by state, who actually participate in the program. Because the data are from January 1994, prior to the enactment of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, they provide baseline data on participation rates prior to the enactment of welfare reform.