During difficult economic times, there are programs that can immediately help individuals cover necessary costs. Economists call these programs “automatic stabilizers.” Unemployment insurance is one example; another is Medicaid.
Then, there’s the Supplemental Nutrition Assistance Program, also known as SNAP or food stamps. That program is about to undergo some big changes that will change who it’s able to support.
Imagine a family. A parent loses their job, and they go to the grocery store less. And that has a ripple effect.
“Grocery stores see less demand, and so they have to do things like, you know, lay off a bag boy — and so those families, their incomes go down at the same time,” said Diane Schanzenbach, of Georgetown and Brookings.
With SNAP, that first family buys those groceries, and the bagger keeps their job.
Earlier this month, the USDA notified states they need to make big changes to SNAP eligibility, work requirements, and who’s covering all the costs — soon.
Normally, according to Syracuse University’s Colleen Heflin, changes like these are rolled out with a lot of guidance over time.
But “telling states Oct. 3 you have to be in compliance [by] Nov. 1 is impossible,” she said.
Mistakes are going to be made, whether it’s people losing benefits or just confusion, “and the administrative costs are going to go way up,” Heflin cautioned.
Marketplace reached out to the USDA for comment, and it did not respond.