The SNAP E&T pilot projects give Congress, USDA, and states the opportunity to test innovative strategies and approaches that connect low-income households to good paying jobs and thereby reduce their reliance on public assistance.
The Office of lnspector General's 2016 Audit Report, Food and Nutrition Service Controls over SNAP Benefits for Able Bodied Adults without Dependents, recommended that FNS perform analysis to identify problematic areas for states in terms of ABAWD policy and then provide states with additional best practices to address those areas.
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 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.