The GOP's Sneaky and Destructive Plan to Privatize Anti-Hunger Program
Privatization is often touted as a solution to bureaucratic red tape or cutting “wasteful” government spending, but in practice, it can mean cutting the experienced public workforce who administer complicated government programs.
The country’s largest and most important government anti-hunger program faces a renewed threat as Congress returns from recess next week: privatization.
Congress needs to reauthorize the now-expired Farm Bill—the enormous legislative package that includes funding for the Supplemental Nutrition Assistance Program (SNAP, also known as food stamps)—but a privatization scheme was attached to the bill.
Congress should not be using much-needed disaster relief as a back door to privatize the SNAP program’s workforce.
Earlier this Congress, Rep. Don Bacon (R-Neb.) introduced the “SNAP Staffing Flexibility Act,” which was also adopted as an amendment to the current version of the Farm Bill. The bill would allow state agencies to hire outside contractors to administer key requirements of the SNAP program under certain conditions, such as in the aftermath of natural disasters or during pandemics and public health emergencies. Rep. Bacon and supporters of this proposal now aim to tack this provision onto the emergency disaster relief package under consideration this year. Make no mistake: This is an attempt to use emergency disaster relief as cover to privatize the SNAP program and workforce, instead of giving the SNAP program enough money to operate effectively.
Privatization is often touted as a solution to bureaucratic red tape or cutting “wasteful” government spending, but in practice, it can mean cutting the experienced public workforce who administer complicated government programs. This can result in prolonged delays, more people wrongly denied benefits, and ultimately worse outcomes for people who need the benefits most.
SNAP Is Our Most Important Anti-Hunger Program, But It Is Facing Renewed Privatization Threats
SNAP serves tens of millions of low-paid working families and other households with low incomes (including disabled and older adults). Like unemployment insurance, SNAP is responsive to the business cycle—meaning SNAP is particularly important during economic downturns when poverty and food insecurity rise. Between fiscal years 1980 and 2008, anywhere from 7 to 11% of U.S. households received SNAP. Participation grew dramatically during the Great Recession, peaking at 18.8% in fiscal year 2013 (47.6 million people).
Participation spiked again during the Covid-19 pandemic amid increased poverty and food insecurity. In fiscal year 2022, although total participation was lower than during the Great Recession (12.4% of all U.S. households participated in the program), SNAP saw a record-high participation rate among eligible individuals, equivalent to 41.2 million people receiving benefits in an average month. Expanded SNAP eligibility—alongside other relief measures such as Child Tax Credit expansions, universal free school lunches, and federal stimulus payments—kept food insecurity at bay during the height of the pandemic in 2021. However, as those programs expired—and the shocks of pandemic reopening and the Russian invasion of Ukraine led to food prices growing at an unprecedented rate—food insecurity increased in 2022.
As part of the SNAP quality control process, the U.S. Department of Agriculture’s Food and Nutrition Service (FNS) examines each state’s application processing timeliness (APT). The rate is calculated by dividing the number of SNAP applications processed by the number of applications that were expected to be processed during that period, typically 30 days since the application was submitted. In fiscal year 2023, APT rates ranged from a low of 39% in Alaska to a high of 98% in Idaho, with a median rate of 85% across all 50 states and the District of Columbia. In 2023, only four states met the FNS benchmark rate of 95%. Failure to meet this benchmark is not a new phenomenon. Based on available data, no more than a third of all states have ever met the 95% timeliness standard in any given year.
Proponents of SNAP privatization often point to slow application processing rates as evidence that the existing program is inefficient and in need of “reform.” However, this argument ignores important context on these rates and its connection to declining federal funding for SNAP and shrinking public-sector employment.
Chronic Underfunding of SNAP Strains Workers and Delays Processing of Essential Benefits
SNAP is a federal-state partnership, so the federal government pays the full cost of nutrition benefits and splits the costs of administration with states, but federal spending on SNAP administration has declined over time. Meanwhile, SNAP administrators’ caseloads have grown dramatically. Many states point to administrative problems—including low staffing, hiring freezes, and high turnover—as one of the biggest barriers to improving slow processing times and backlogs.
To be clear, low APT rates are a cause for concern because they indicate that many eligible households in need of food assistance are not quickly receiving those benefits. But the solution to ensuring applicants receive their benefits quickly is simple: Policymakers must increase funding for SNAP and restore sufficient staffing levels so that case workers can process applications effectively and efficiently.
Starving SNAP of Funding Serves the Long-Term, Right-Wing Privatization Agenda
The push to privatize SNAP eligibility determinations is decades-old and has produced serious problems in states that have contracted out these services or automated certain functions of the process. When Texas outsourced its SNAP eligibility determinations to a for-profit company in 2006, thousands of people were unable to apply or were given incorrect information and many were wrongly denied benefits. Public-sector staff were then forced to fix mistakes, and eligible SNAP participants were subject to long delays to receive benefits.
Efforts to defraud the SNAP program, including misuse of benefits or selling them for cash, is very rare. However, attention to purported fraud has increased in recent years, and SNAP workers have been forced to take on additional anti-fraud measures, further delaying processing and potentially contributing to low APT rates.
The SNAP Program Needs Support, Not a License to Cut More Corners
Congress should not be using much-needed disaster relief as a back door to privatize the SNAP program’s workforce. There are other real and urgent problems with the SNAP program this year—for instance, families have had their SNAP benefits stolen by card “skimmers” when they swipe their cards at grocery store cash registers. In 2022, Congress passed a provision that would allow states to pay back the stolen benefits to victims of theft, but that has since expired.
Farm Bill reauthorization should focus on preserving nutrition assistance benefits without cuts and on reducing administrative burdens and red tape for SNAP recipients, applicants, and staff—all of which could help reduce backlogs and improve how quickly people can receive their benefits. And disaster relief spending should focus on providing aid to vulnerable communities trying to rebuild after storms—not opportunistically trying to cut corners and privatize vital services.
