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Supplemental Nutrition Assistance Program: Actions Needed to Better Measure and Address Retailer Trafficking

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Report Type Reports and Testimonies
Report Date Dec. 14, 2018
Release Date Jan. 15, 2019
Report No. GAO-19-167
Summary:

Millions of households rely on the $64 billion Supplemental Nutrition Assistance Program, formerly known as food stamps, to buy food. But some stores are defrauding the program by "selling" cash instead of food. For example, a store might give a person $50 in exchange for $100 in benefits—then pocket the difference.

How widespread is this "retailer trafficking"? The Food and Nutrition Service (FNS) reports that $1 billion in benefits are trafficked annually. However, the real extent is uncertain and could be anywhere from $960 million to $4.7 billion.

We recommended ways to improve how FNS measures and addresses trafficking.

 

Illustration of a retailer exchanging SNAP benefits for cash.

Illustration of a retailer exchanging SNAP benefits for cash.

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