Food Stamps An Important Government Transfer Program Essay

Food Stamps: An Important Government Transfer Program Food Stamps are an important subsidy for poor families in the United States. The program began (in its most basic form) in the 1930s in response to the Great Depression and has seen many transformations since. Its original goal was to redistribute agricultural surpluses to needy individuals. It gained popularity in the early 1940s and in 1961, Congress launched a pilot program. The program became permanent under President Johnsons Food Stamp Act of 1964. At this time there were 1.4 million participants. By 1977 all states were required to provide Food Stamps to their underprivileged residents (Senauer). This plan eventually led to the arrangement in place today. The Food Stamp†¦show more content†¦Their net monthly income must fall below 100% of the federal poverty line. As of 2001, this amount equaled $1,421 for a family of four. These guidelines were established in 1964 and are updated annually based on the Consumer Price Index. They are adjusted for inflation (Senauer). The household may have no more than $2,000 in countable assets. A family unit may have $3,000 in assets if at least one member is over age 60 or disabled. Automobiles count as assets for any amount of their value over $4,650 (Super). People applying for Food Stamps in Pennsylvania must reside in the county in which they are applying but there is no requirement stating how long one must live there. As some recipients are homeless, a permanent home address is not necessary to obtain Food Stamps. A households net income is determined by subtracting taxes and several personal allowances. First, there is a standard deduction of 8.31% of the federal poverty level for that family size. This currently amounts to $134. All households are entitled to at least this amount. Households with five or more people are entitled to a higher deduction, but no more than that of a family of six, which is $168. Elderly and disabled people may subtract their medical expenses in excess of $35, provided that those expenses are not covered by any other welfare program. Individuals who are employed may deduct up to 20% of their earned income. There is a maximum $200 per childShow MoreRelatedFood Stamps to SNAP Essay1030 Words   |  5 PagesFood Stamp is a government-funded program in the United States. This is a program that helps people buy food for their families; in other words, it is a very important program to families living in poverty. It is the nation’s most important program in the fight against hunger. This program was developed in the 1960’s; it is made to improve the nutrition level and food purchasing power of people with low-income. 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