The Biden administration's significant expansion of food stamp benefits has been linked to a notable increase in grocery prices, according to a new study released on Thursday.
The Department of Agriculture, under President Biden, introduced revised nutritional standards for federal food benefits in 2021, resulting in a program expansion of approximately 25% from pre-pandemic levels. The Foundation for Government Accountability (FGA) found that overall spending on the Supplemental Assistance Nutrition Program (SNAP) more than doubled between 2019 and 2022, rising from $4.5 billion to $11 billion.
The FGA has argued that the increased spending on food stamps has contributed to the price hikes experienced by everyday Americans during a period of high inflation. Jonathan Ingram, Vice President of Policy and Research at the Foundation for Government Accountability, criticized the Biden administration for bypassing Congress and implementing the largest permanent increase in program history. He stated, "Data show the Biden administration's overreach led to massive spikes in grocery prices. They're feeding inflation, not stopping hunger."
The study referenced research from the World Bank, which revealed that a one percent increase in per-capita food stamp benefits resulted in a 0.08 percent increase in grocery store prices. In other words, food prices increase by one percent for every 12.5 percent increase in food stamp spending. The Foundation for Government Accountability estimated that repealing Biden's food stamp expansion could potentially save taxpayers over $193 billion.
According to the Department of Agriculture's website, food prices are expected to rise by an average of 5.8% in 2023. While this is a slower pace compared to 2022, it still exceeds historical-average rates. As Congress prepares to reauthorize the Farm Bill, which determines spending on food benefits for both urban and rural populations, food stamp spending is likely to be a focal point of debate.
Republicans are pushing for stricter control over SNAP spending, while Democrats remain cautious, especially after agreeing to implement work requirements for some food stamp beneficiaries as a condition for raising the federal debt limit earlier this year.
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