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WASHINGTON, August 9, 2012— Agriculture Under Secretary Kevin Concannon today announced a broad range of additional strategies to further improve program integrity in USDA's Supplemental Nutrition Assistance Program (SNAP) and hold those misusing benefits accountable. The measures include tougher financial sanctions for the small number of retailers that defraud the program and new requirements and tools for States to ensure benefits go solely to eligible individuals.
"USDA has a zero tolerance policy for SNAP fraud," said Concannon. "These additional measures reaffirm our ongoing commitment to ensuring these dollars are spent as intended–helping millions of people in need get back on solid economic footing."
The retailer sanctions proposal allows USDA to not only permanently disqualify a retailer who traffics, but also assess a monetary penalty in addition to the disqualification. Financial penalties would be proportional to the amount of SNAP business the store is conducting, which will help ensure that the financial punishment more closely fits the crime. Currently, when a retailer is found guilty of fraud or abuse, USDA can either disqualify the retailer from participating in SNAP, or issue a financial penalty, but not both.
Today's announcement includes new requirements for States to take specific actions that would catch fraud and abuse on the front end and ensure that ineligible people do not participate in the program. The new standards strengthen integrity by giving States an additional tool to identify cases that may require further investigation and review when an applicant or recipient is found in a Federal database.
"These requirements will make us better at identifying potential fraud and abuse before it occurs, as well as help us hold bad actors even more accountable than in the past and discourage them from abusing the public's trust," said Concannon.
Concannon also today released third quarter, fiscal year 2012 results of USDA work in fighting fraudulent activity in SNAP retail stores, tallying final actions to sanction or disqualify retailers violating program rules. In that quarter, USDA staff took final actions to:
- Impose sanctions, through fines or temporary disqualifications, on more than 574 stores found violating program rules; and
- Permanently disqualify 1,016 stores for trafficking SNAP benefits (i.e. exchanging SNAP benefits for cash) or falsifying an application.
These announcements are part of the Obama Administration's ongoing Campaign to Cut Waste designed to fight fraud and abuse in Federal programs. For more information about USDA efforts to combat fraud, visit the Stop SNAP fraud website at www.fns.usda.gov/snap/fraud.
USDA continues to work with local, state and federal partners to root out fraud, waste and abuse in SNAP and ensure the integrity of our nation's most important food assistance program. Recent actions include:
- Sending letters to the CEOs of Craigslist, Ebay, Facebook and Twitter to reiterate the need to help prevent the illegal sale or purchase of SNAP benefits online;
- Proposing a rule to provide States the option to require recipients to make contact with the state when there have been an excessive number of requests for EBT card replacements;
- Increasing documentation required for high-risk stores applying to redeem SNAP benefits;
- Continuing to notify state social service agencies and federal agency partners about violators to better protect our public programs. This includes information on program recipients with suspicious transactions at stores that have been sanctioned for trafficking so that the recipients can be further investigated by States.
Reducing childhood obesity and improving the nutrition of all Americans are vital to achieve a healthy future for America. That's why the Obama administration and USDA are committed to promoting healthy eating and active lifestyles and to ensuring that all Americans have access to safe, nutritious, and balanced meals.
SNAP–the nation's first line of defense against hunger–helps put food on the table for millions of low income families and individuals every month. The largest of USDA's 15 nutrition assistance programs, it has never been more urgently needed than it is today. SNAP is a vital supplement to the monthly food budget of more than 46 million low-income individuals. Nearly half of SNAP participants are children and more than 40 percent of recipients live in households with earnings.
USDA's Food and Nutrition Service (FNS) oversees the administration of 15 nutrition assistance programs, including school meals programs, that touch the lives of one in four Americans over the course of a year. These programs work in concert to form a national safety net against hunger. Visit www.fns.usda.gov for information about FNS and nutrition assistance programs.
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