Food Assistance: Reducing Food Stamp Benefit Overpayments and Trafficking

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Report Type	Reports and Testimonies
Report Date	Oct. 30, 1997
Report No.	T-RCED-98-37
Subject	Electronic funds transfer Federal/state relations Food relief programs Fraud Investigations by federal agencies Overpayments Program abuses Retail facilities State-administered programs Store Tracking and Redemption System Food Stamp Program USDA Food Stamp Quality Control System Electronic benefits transfers

Summary:

The Food Stamp Program, one of the nation's largest welfare programs, is the single largest program run by the U.S. Department of Agriculture (USDA). In fiscal year 1997, the government provided $21 billion worth of food stamps to about 24 million recipients. Reviews by GAO, USDA's Office of Inspector General, and others have provided ample evidence that the system for delivering food stamps is vulnerable to, and is being victimized by, significant fraud, waste, and abuse. This testimony discusses fraud, waste, and abuse in the Food Stamp Program from three perspectives: (1) the nature and the extent of the problem; (2) the roles and the responsibilities of the major federal agencies that are seeking to minimize it; and (3) the potential of electronic benefits transfer, which would replace traditional food stamp coupons with a debit card, to reduce it.

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Food Assistance: Reducing Food Stamp Benefit Overpayments and Trafficking