Recent trends in domestic food programs - domestic food assistance benefits

Food Review, April-June, 1991 by Masao Matsumoto

Recent Trends in Domestic Food Programs

The Federal Government spent $5.69 billion on domestic food assistance benefits in the fourth quarter of fiscal year 1990, a 18 percent increase over the $4.84 billion spent in the last quarter of 1989.

The continuing economic slowdown and increased unemployment rates were reflected in the growth of Food Stamp Program participation and costs which accounted for the bulk of the increase in total Federal costs (table 1). Child Nutrition programs and the Women, Infants, and Children (WIC) Program registered gains of over 10 percent over the previous year, while the numbers enrolled in Food Distribution programs continued to decline, a trend since 1987. [Tabular Data Omitted]

Food Stamp Program

Food stamps help low-income households purchase more nutritious diets. Monthly benefits are based on the income and size of the household and the cost of the Thrifty Food Plan (TFP). The plan is the least costly of four representative food plans developed by USDA's Human Nutrition Information Service. TFP specifies the quantities of the types of foods that households may use to provide nutritious diets for their members.

The average number of food stamp participants rose 8 percent from 18.77 million in 1989 to 20.26 million in 1990. Average monthly benefits increased from $51.42 to $58.42 during the same period. Total benefits during the quarter rose from $2.90 billion to $3.55 billion, reflecting the increases in both participation and benefit levels.

Child Nutrition Programs

Average daily participation in the National School Lunch Program declined slightly from 23.70 million children in 1989 to 23.68 million in September 1990. (Because the fourth quarter includes July and August when most school children are on summer vacation, figures for September are used to assess year-to-year changes in the School Lunch and Breakfast programs. Even September has its limitations due to changing school starting dates.) The National School Lunch Program provides approximately one-third of the recommended dietary allowance for school-age children. Eligibility for free and reduced price lunches is determined by family income and size. For example, children from a family of four with an income below $16,510 are currently eligible for free meals. Children from a family of four with an annual income between $16,510 and $23,495 are eligible for reduced-price lunches. These thresholds are changed annually to reflect changes in cost of living and poverty levels. Overall participation in the National School Lunch Program declined because the number of paid lunches fell from 13.0 million to 12.7 million participants, even though there were increases of 0.28 million in the number of free and reduced-price lunches served. Total costs for the program, including cash payments and entitlement commodities, were $392 million in September 1990 compared with $366 million in 1989. The increase reflects higher reimbursement rates and the relatively larger number of free and reduced-price lunches.

Schools also receive bonus commodities as part of the National School Lunch Program. In 1990, they received $27.0 million worth of bonus commodities during the months of August and September, nearly the same as the $27.3 million distributed to schools in 1989.

The School Breakfast Program provides free and reduced-price meals to children whose families meet school lunch eligibility criteria. Approximately 42,600 schools participated in the program during the 1989-90 school year. In September 1990, 3.9 million children received breakfasts on an average school day, compared to 3.6 million the previous year. Of the 1990 participants, 85.8 percent received free or reduced-price breakfasts, nearly the same rate as the previous year, 85.9 percent. Federal expenditures for the program increased for September from $55.9 million in 1989 to $63.6 million in 1990.

Average daily attendance at facilities offering the Child Care Food Program rose from 1.40 million in 1989 to 1.48 million in 1990 in the fourth quarter. Total meals served in the quarter increased 13 percent from 66.7 million to 75.6 million meals.

The adult care component of the program continues to grow rapidly. Average daily attendance at the adult centers increased from 13,800 thousand to 18,500 thousand persons, the number of sites increased from 462 to 665, and total costs for this part of the program increased from $1.22 million to $2.29 million. For the total program, including child and adult care components, costs increased from $167.3 million to $199.6 million in the fourth quarter of fiscal 1990.

The Summer Food Service Program, which is in operation only during June through September, served a daily average of 1.69 million children in 1990 compared with 1.65 million in 1989. Total meals served in 1990 amounted to 91.2 million, a 6-percent increase from 86.0 million in 1989. Annual program costs increased from $149.0 million in 1989 to $164.1 million in 1990.

The number of half pints of milk served under the Special Milk Program increased slightly from 39.4 to 40.2 million in the last quarter of 1990. Program costs for the quarter rose from $4.04 million to $4.44 million in 1990.