The Fed and States Ease Eligibility Rules for Food Stamps as Need Increases

As one would expect, the number of people needing food stamps has dramatically increased due to the weakened economy and the coinciding increase in food prices. This summer alone, there were one million new food stamp recipients, bringing the total to 29 million Americans.

In these tough times, we need to ensure that all families in need get the help they deserve.  Thankfully, more individuals and families may be able to qualify for this food benefit because of relaxed income regulations included in the 2008 farm bill that went into effect this month. According to USA Today, families with income from combat pay, retirement accounts or education savings will now face fewer barriers to eligibility requirements.

States also have the authority to further adjust eligibility rules as they deem necessary in the wake of the financial downturn and some have done so.  California, Ohio, Maryland, Pennsylvania and Vermont have further expanded eligibility by allowing individuals to keep some savings and still apply for food stamps.

There seems to be little good news on the economic front these days. Just today, Ben Bernanke, Chairman of the Federal Reserve told Congress that the economy is “likely to be weak for several quarters” and there is “risk of a protracted slowdown.”

Without any clear end in site, other states should find ways to loosen food stamp income eligibility requirements so that families don’t have to “sink to ground zero to get help.”