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No later than Phil McCausland
Millions of Americans could end up without the benefit that would allow them to buy food if the government shut down itself continued until February.
Additional Nutrition According to the US Department of Agriculture, the assistance program, called SNAP or food stamps, costs an average of about $ 4.8 billion a month. But because of the closure of the government, the program has only $ 3 billion in emergency reserves for February.
In the United States, more than 19 million households receive food stamps, nearly 39 million people. Each household receives an average of $ 245.28 per month.
But because of the market closure, the USDA has no money to pay for the program in the following months. The agency also had to suspend about 95% of food and nutrition services, the office that oversees the SNAP program.
The White House and the USDA have not responded to requests for comments regarding their intention to remedy the shortage, but experts say
If the $ 1.8 billion deficit for February's benefits were evenly distributed among the 19 million households benefiting from the SNAP program, each would benefit from a reduction of approximately $ 90 per month from its overall grocery budget. according to Dottie Rosenbaum, senior researcher at the Center for Budget and Policy Priorities (CBPP).
If the political stalemate that began December 22 in March, these households would not receive money to buy food.
"Even if the President and Congress resolve the closure by February, depending on the decisions made by the Administration over the next two weeks, households could be significantly behind schedule. n receiving their full SNAP allocation for the month of February due to the operational challenges faced by entrepreneurs and EBT entrepreneurs, "Rosenbaum said in an email.
Robert Powell is another American who might have a reason to worry, although he does not benefit himself. Powell owns a grocery store called Town & Country Market in Atoka, Okla., A small town of about 3,000 inhabitants occupied since 1967.
A large portion of its customers use Food coupons, Powell said later. adding that these lost benefits could have a negative impact on his clients – as well as his business.
"There will be riots on the street when they cut the seals," Powell said. "Prepare your wood."
Businesses are a secondary victim if the closure of the program results in a lack of money. The money spent by SNAP program recipients is usually split between small business owners, like Powell, and large retailers, such as Walmart.
Tens of billions of dollars could be at stake for hundreds of thousands of businesses in the United States
During fiscal 2017, SNAP participants redeemed SNAP benefits $ 63 billion for the purchase of food products from approximately 260,000 retailers – of which 80% were considered small businesses – according to a CBPP report dated April 2018. [19659007] The lost benefits would extend to all retailers. According to the report, this would also have an impact on supermarkets and big box stores, where over 80% of the $ 63 billion is spent.
Gary Philbin, President of Dollar Tree Company, said during a conference call on profits More than 500,000 people removed from SNAP in 2016 had an impact on stock prices.
Given the millions of people who would lose their consumer power without the benefits they need to buy food, the closure could have a major impact on retailers – especially those serving low-income populations – if the government can not find a way to make up for the loss of $ 1.8 billion in February.
"This is a $ 1.8 billion loss across the country [in February]", Stacy Dean, CBPP's Vice President for Food Assistance Policy, has explained. "But it will have a disproportionate impact on grocery stores and small businesses serving poor communities where buyers are more dependent on the benefits of SNAP."
And these communities often include some of the most vulnerable people, such as veterans. [19659007] The CBPP concluded in a separate report from November 2018 that the SNAP program was used in almost 1.4 million households where veterans live. Thousands of veterans would be affected in all states of the country if these benefits were removed.
In an interview with NBC News, representative Karen Bass, D-Calif., Called the closure of "distraction" issues that Congress should focus on, and she noted that the current rift between the president Trump and the Democrats could have an impact on those who depend on food stamps.
"If the closure continues, you will literally have millions of people who will not be able to afford to buy food. , Says Bass. "And I think it's quite unreasonable."
"I think that's another example [of] for him," the congressman added, referring to the president. "Either he does not understand literally [the consequences of the shutdown] or he does not know."
Hans Nichols and Molly Roecker contributed. 19659031]
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