Summary: Participation in the Food Stamp Program has dropped by 27 percent during the past 3-1/2 years. Welfare reform changed welfare from an entitlement program to one designed to end needy parents' dependence on government aid by promoting employment. The Food Stamp Program was retained as an entitlement but eligibility standards were tightened; adults without dependents had to meet work requirements and most permanent resident aliens were disqualified from participating. This report examines the reasons for the recent drop in food stamp participation and any problems that households with eligible children have experienced in obtaining food stamps. GAO found that the strong U.S. economy, tighter food stamp eligibility requirements, and welfare reform initiatives are the primary reasons for the decline in food stamp participation. But, some households, including those with children, have had problems obtaining food stamps because some state and local governments have gone farther than the law permits in limiting benefits.