The U.S. Department of Agriculture said in a memo Friday the agency’s contingency fund cannot legally be used to provide food assistance benefits for more than 42 million people in November, as the government shutdown drags on.
The position is a reversal from the department’s earlier stance, according to a since-deleted copy of the USDA’s Sept. 30 shutdown plan that said the department would use its multi-year contingency fund to continue paying Supplemental Nutrition Assistance Program, or SNAP, benefits during the ongoing shutdown.
SNAP has about $6 billion in the contingency fund — short of the roughly $9 billion needed to cover a full month of the program, putting November benefits in jeopardy.
Because of a stalemate in Congress over a stopgap spending bill, the government shut down on Oct. 1 without new SNAP funding enacted.
The memo, which was first reported by Axios on Friday, said states would not be reimbursed if they use their own funds to cover the cost of the benefits.
“There is no provision or allowance under current law for States to cover the cost of benefits and be reimbursed,” the memo says, while also noting that “the best way for SNAP to continue is for the shutdown to end.”
Discrepancy with shutdown plan
The memo also says the contingency fund is meant for natural disasters and similar emergencies, not for a lack of appropriations.
But USDA’s Sept. 30 contingency plan contradicts that and appears to greenlight the use of SNAP’s contingency fund during a lapse in funding.
“Congressional intent is evident that SNAP’s operations should continue since the program has been provided with multi-year contingency funds that can be used for State Administrative Expenses to ensure that the State can also continue operations during a Federal Government shutdown,” according to the plan. “These multi-year contingency funds are also available to fund participant benefits in the event that a lapse occurs in the middle of the fiscal year.”
USDA’s contingency plan is no longer online, but is accessible through an internet archive.
After providing States Newsroom with the memo Friday afternoon, USDA did not immediately respond to a follow-up inquiry about the discrepancy between Friday’s memo and its contingency plan.
In the memo, USDA said transferring money toward SNAP from other sources “would pull away funding for school meals and infant formula.”
The agency said it has shuffled funds to cover several nutrition programs during the shutdown, including the Special Supplemental Nutrition Program for Women, Infants, and Children, or WIC, as well as the National School Lunch Program, School Breakfast Program, and the Child and Adult Care Food Program.
Dems call on Rollins to tap into fund
U.S. Agriculture Secretary Brooke Rollins said last week the government would run out of funds to deliver November SNAP benefits as a result of the ongoing shutdown.
Friday morning, U.S. House Democrats, like nearly all of their Senate counterparts and the Republican chair of the Senate Appropriations Committee, urged Rollins to not only use the contingency fund, but to reprogram other money to cover a $3 billion shortfall.
“A potential lapse in benefits would be felt by Americans of all ages and affect every corner and congressional district in the country,” according to the letter from more than 200 House Democrats.
In a separate letter, 46 Senate Democrats sent to Rollins on Wednesday, voiced concerns that USDA told states to hold off on sending in SNAP benefits to be processed for November.
“We were deeply disturbed to hear that the USDA has instructed states to stop processing SNAP benefits for November and were surprised by your recent comments that the program will ‘run out of money in two weeks,’” according to the letter. “In fact, the USDA has several tools available which would enable SNAP benefits to be paid through or close to the end of November.”
The chair of the Senate Appropriations Committee, Sen. Susan Collins, R-Maine, also urged Rollins in a Thursday letter to “consider all available options in accordance with federal law to ensure that this vital nutrition assistance continues, including the use of contingency funds and looking at the viability of partial payments or any transfer authority you may have.”
Benefits could be slow even if a deal reached
States have been told by the agency to hold off on submitting SNAP benefit requests to processing centers. Food banks and pantries are already bracing for the increased need, including in Iowa, where more than 270,000 Iowans rely on SNAP each month.
However, even if Congress immediately reached a deal to end the shutdown, the time needed to process the payments and make them available for recipients means SNAP benefits would likely be delayed. State officials have warned SNAP recipients of the possibility of delays.
In West Virginia, officials said delays are expected and told residents to seek assistance at local food pantries. Roughly 1 in 6 West Virginia residents rely on SNAP each month.
Legal requirement cited
Sharon Parrott, a White House Office of Management and Budget official during the Obama administration who now leads a left-leaning think tank, said in a Thursday statement that USDA is legally required to use its SNAP contingency funds.
Parrott, the president of the Center on Budget and Policy Priorities, said the multi-year contingency fund is “billions of dollars that Congress provided for use when SNAP funding is inadequate that remain available during the shutdown — to fund November benefits for the 1 in 8 Americans who need SNAP to afford their grocery bill.”
Parrott said the Trump administration could use its legal transfer authority, just as it did with WIC funding, to “supplement the contingency reserves, which by themselves are not enough to fund families’ full benefits.”