Proposed Budget Cuts in 2020 for the SNAP Program

Social welfare programs have been facing budget cutoffs. The supplemental nutrition assistance program (SNAP) popularly known as food stamps is affected by budget cutoffs. Trump administration proposal is to take $17.4 billion from the program by the end of 2020 fiscal financial year. It is a move to ensure that by the end of the next decade a total of $ 220 billion is cut off from the program's budgets. SNAP program is in the same category with social welfare programs such as Medicare, Medicaid, house and education. Budget cutoffs on the SNAP program will lead to most Americans suffering from a lack of ways to feed themselves. Budget cut-offs for the SNAP program will have both short and long-term impact on Americans and the government.

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Elements of The Reform

It is proposed that households should be given a physical basket of foods instead of traditional credit cards. The proposal is targeting at least 4 million people who benefit from government programs. The cut is estimated at 30% over ten years. Half of the money saved through the proposed budget cut will be used in providing households with non-perishable food. There is going to be a restructuring of the way the recipient benefit from government-provided food. The government proposes a private-partnership with over 250,000 retail stores to procure the non-perishable food for SNAP. The budget cutoffs are aimed at changing individuals of people who take part in SNAP programs. Individuals aged 18-49 years and not raising children will not be viable to benefits from the SNAP program. The reform is aimed at ensuring only those vulnerable can benefit from the program. The reform also is targeting to increase the age limit to 62 years for its beneficiaries (Shearer, 2017).

Purpose of Budget Cut-Offs for the SNAP Program

The objective of the budget cut on the SNAP program is to save money that will be used towards increasing the budget for defense and security. The defense department is supposed to receive $7.8billion, which represents a 4.2% increase in funding. It is estimated that the 2020 census would require an estimated $ 675million for it to be successful. The government intends to cut SNAP program funding, hence use the savings to finance the 2020 census.

Impact On the Governments Involved

The budget cut on the SNAP program will have an impact on state government. It is proposed that the state government should spend more resources to support the program. Currently, around 90% of spending on food programs come from the federal government. The new reform will require the state to get involved in funding SNAP program. The state government will, therefore, run the programs effectively only under the normal economic state. It will make sense if food program funding is left to state government since they are the one close to citizens. The federal government would be pushing itself to future crisis. The SNAP program is proven and working effectively, getting rid of the program, therefore, will expose the federal government since they will have to find ways to reduce poverty and hunger among its citizens.

Benefits of The Reform

The reform on SNAP program is going to eliminate non-disabled adults who benefit from the program yet they do not have dependents. It will be a requirement for such non-disabled adults to work. The work requirement will ensure that individuals who are not disabled get a chance to work and eventually nit depend on the SNAP program. The reform will work towards supporting Trump's vision to increase funding of national defense especially the construction of the America-Mexico wall.

Concerns with The Reform

The proposal to cut SNAP funding is not in line with the initial purpose of the program of providing food assistance. It will be difficult for the USDA to ensure that over 16 million vulnerable individuals get to benefit from the food box method. There is a concern that low-income earners and poor households will not benefit from the new distribution system. States agencies tasked with distributing the food might incur unfunded costs. Expansion of unwanted government bureaucracy. Currently, USDA is tasked with food distribution to all food programs. The new proposal is not in a capacity to support households. Packaged food to be distributed among 16 million households will require expensive structure and logistics.

The shift in costs due to the ineffective food distribution system. There is a concern regarding the administrative costs required to distribute food to households. It is estimated that it will cost an estimated $250 million to administer the proposal effectively. The new proposal, therefore, means that costs will only shift to state and local government who are tasked with ensuring that households in remote areas get food. The new costs on local government eventually result in a redundant distribution system.

Negative impact on retailers. The new SNAP proposal is aimed at involving major grocery distributors. U.S households through SNAP programs buy food from these stores. Through the new proposal, it is projected that grocery stores will lose around $ 25 billion in revenue. Locals business situated in communities that rely on SNAP programs will incur losses.

Long-Term Implications of the Reform

There is no significant reduction in unemployment. A proposal to cut funding for the SNAP program will have harm to families and workers who depend on the program. The new proposal, in the long run, will hurt workers and the American economy. Currently for every $ 1 spent on SNAP program is estimated to bring in more than $1 to the economy. Local business benefit from a low-income household who through the SNAP program get a chance to buy food from these stores. Over the next ten years, the benefits associated with SNAP programs will not only take effect the needy but also the workers who struggle to work for retail stores. The budgets cuts are likely to weaken economic growth through tax breaks. The tax breaks allow the rich to have extra money; the rich are unlike the poor since they save their extra money. The poor on the other hand always spend their money hence boosting the local economy(House budget committee,2018).

In the end, a cut on SNAP program funding will cause a loss of an estimated $ 2.6 billion yearly from expected economic activity. SNAP program serves as an economic stabilizer and getting rid of it will result in job losses indirectly. The savings from the cut might compound to a loss of $2.6 billion in 10 years if the administration fails to find where to make an extra dollar from what is intended to be saved from cutting SNAP budgets.

Conclusion

The budget cut on SNAP programs should be researched on deeply to ensure that the government does not get themselves in a loss instead of saving. The negative impact of the reforms suggests that the budget cut on the SNAP program is ineffective. Costs associated with adopting the new programs should also be taken into consideration.

References

House Budget Committee Hearing On President Trump's Budget Request For Fy2019 (2018). Washington: CQ Roll Call. Retrieved from https://search.proquest.com/docview/2006908504?accountid=45049

Shearer, P. S. (2017). Trump's budget proposes major cuts in ag. National Hog Farmer, Retrieved from https://search.proquest.com/docview/1902622235?accountid=45049