FEINGOLD
CALLS FOR INCREASE IN FOOD STAMP BENEFITS TO HELP STIMULATE ECONOMY
Calls on Senate Leaders to Reconsider Omitting Food Stamp Benefit
After Experts Say Increasing Benefit Is Effective Way to Spur Economy
Janaury 28, 2008
Washington, D.C. –
U.S. Senator Russ Feingold is leading an effort to include an increase
in Food Stamp benefits in the economic stimulus package currently being
worked on by Congress. In a letter to Senate leadership, Feingold and
a bipartisan group of eighteen of his Senate colleagues asked that they
reconsider the omission of the Food Stamp benefit increase from the
package, in light of the fact that experts say it could help stimulate
the economy as well as help low-income Americans.
“The economic trouble
our nation is facing is weighing heavily on the minds of many Americans,
particularly low-income Americans,” Feingold said. “By boosting
Food Stamp benefits, we are creating a win-win situation – helping
Americans who need assistance the most and are likely to be adversely
impacted by a downturn, while giving the economy a boost.”
During a January 22nd hearing
in the Senate Finance Committee, Congressional Budget Office Director
Peter R. Orszag suggested the temporary increase in Food Stamp benefits
as one effective way to help spur the slowed economy. During his testimony,
Orszag said that the vast majority of Food Stamp benefits are spent
extremely rapidly because Food Stamp recipients have low income and
few assets, and most of any additional benefits would probably be spent
quickly.
Experts have cited returns
as high as $1.73 for every $1.00 invested in the program, making this
a cost-effective proposal. Unfortunately, the President and House leaders
announced the economic stimulus package would not include the benefit.
“Clearly, there is
strong bipartisan support for an increased investment in Food Stamps
in the long-term. A short-term increase in a stimulus package would
therefore have the double benefit of more quickly making up some of
the gap created over the last decade as Food Stamp benefits have eroded,”
wrote the Senators.
Feingold is supporting other
measures to help spur the economy while helping low and middle income
Americans. Feingold is supporting an effort by Senator Jack Reed (D-RI)
to include additional unemployment benefits as part of the economic
stimulus package. In addition to providing much needed assistance to
workers who have lost their jobs, experts say extending unemployment
benefits can produce returns of up to $1.64 for every $1.00 invested
in the program. Senator Feingold is also supporting state fiscal relief
for programs serving low-income individuals, specifically Medicaid.
Similar provisions were included in the 2003 stimulus package.
A copy of the Food Stamp
benefits letter is available at: http://feingold.senate.gov/pdf/ltr_foodstamps_012508.pdf.
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