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.
To explore the suitability of off-line electronic benefits transfer (EBT) as an alternative to paper issuance and on-line EBT issuance systems, USDA’s Food and Nutrition Service has supported the Ohio Department of Human Services in expanding off-line EBT issuance to all Food Stamp Program recipients in the state. A pilot project in Dayton, Ohio and a demonstration of a combined WIC-EBT off-line system in Wyoming have clearly established the technical feasibility of off-line EBT for FSP benefit issuance.
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 inventories technological approaches to portable on-line authorization and reports on their technical and cost feasibility, advantages/disadvantages and potential impacts.
This study evaluates the Retailer Compliance Management Demonstrations in EBT-ready States. In these demonstrations, the State food stamp agencies in New Mexico (NM) and South Carolina (SC) assumed responsibility for managing the participation of food retailers in the FSP, a task previously managed exclusively by the federal government.
The report is based on a telephone survey of all states with SLEB agreements and case studies of 6 states with noteworthy levels of SLEB agreement-generated activity.
This study was the first in a series of studies that estimated the extent of retailer-level SNAP benefit trafficking. The major findings included large stores having only half the store violation rate that smaller stores had. Additionally, the overall benefit trafficking rate was 13.0% as compared to 1.3% in the latest trafficking rate study.
The report assesses the existing commercial infrastructure of on-line Electronic Benefits Transfer (EBT) in the context of multi-state, multi-program EBT. The findings are based on interviews of respondents involved with the EFT commercial infrastructure.