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Thursday, May 2, 2013

SNAP BOOSTS LOCAL ECONOMIES

SNAP benefits provide a significant boost to local economies. Federal stimulus legislation increased the monthly SNAP benefit to provide a greater boost to communities, but benefits will fall again in November 2013.
      The American Recovery and Reinvestment Act increased monthly SNAP benefits by 13.6% beginning April 1, 2009, pumping an estimated $18 billion into state economies between 2009 and 2012. Total increased economic activity in the states will exceed $34 billion.
      Every $1 in SNAP benefits generates $1.79 in total economic activity, according to the U.S. Department of Agriculture.
      Mark Zandi of Moody’s, a credit rating agency that performs international financial research and analysis, estimates the multiplier to be $1.72, the highest multiplier of the Recovery Act measures Moody’s studied.
      Starting Nov. 1, 2013, all SNAP participants will see a benefit cut. For families of three, the cut will likely be $20 to $25 per month, or $240 to $300 annually.

Source: Council of State Governments, 5/1/13, SNAP Benefits

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