Enhanced Food Stamp Funding

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January 23, 2001

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In August 2000, the Texas Department of Human Services (DHS) received $27.9 in enhanced federal funds from the United States Department of Agriculture (USDA) for its success in improving payment accuracy and reducing fraud in the Food Stamp Program in fiscal 1999. An additional $4.9 in unspent enhanced funds received in 1999 is also available for a total of $32.9 million. Last session, the legislature directed DHS to spend $2 million of the enhanced funds received in 1999 on nutrition programs outreach. DHS' proposal to the legislature for spending the $32.9 million does not include any funding for initiatives to improve access to nutrition assistance for low-income families. This Policy Page summarizes DHS' proposal and the center's recommendations for using these funds.