Biden’s food stamp expansion linked to 15% jump in grocery prices: study
A push by the Biden administration to increase food stamp benefits to the tune of $1 trillion could be responsible for a 15% rise in prices at the grocery store, according to a government watchdog report.
The Department of Agriculture rolled out revised nutritional standards for the Supplemental Nutrition Assistance Program (SNAP) in 2021 that expanded the program by 27% on average from pre-COVID pandemic levels, the Foundation for Government Accountability found.
Overall spending on the program more than doubled between 2019 and 2022, going from $4.5 billion in 2019 to $11 billion in 2022, a study released Thursday by the government accountability group shows.
The spending hit $8.6 billion in March 2023, despite some emergency allotments having expired, and is expected to rise by 5.8% over the course of the year.
The expansion is projected to cost US taxpayers more than $1 trillion over the next decade, according to the Congressional Budget Office.
The increase in spending on food stamps has fueled a rise in grocery prices and contributed to high inflation, the group says.
“USDA cooked their books to hike food stamp benefits by 27% — the largest permanent increase in program history. And they bypassed Congress to do it,” Jonathan Ingram, vice president of policy and research at the Foundation for Government Accountability, told Fox News, which first reported on the study.
“Data show the Biden administration’s overreach led to massive spikes in grocery prices. They’re feeding inflation, not stopping hunger.”
The study cited retail scanner data from the World Bank following the Great Recession of 2008 that found food prices go up 1% for each 12.5% hike in per-capita food stamp spending.
The prices of margarine and eggs increased by more than 50% between December 2019 and March 2023, according to Labor Department data reviewed by the group. The price of frozen vegetables rose by 36%.
The Foundation for Government Accountability also estimated that Congress could claw back more than $193 billion in taxpayer funds if lawmakers repealed Biden’s food stamp expansion.
Food stamp spending is likely to take center stage in Congress’ expected battle over reauthorizing the Farm Bill, which sets a range of spending from food benefits for urban populations to rural broadband.
Republicans are pushing to rein in SNAP spending, while Democrats are wary — particularly after striking a deal with House Republicans to implement work requirements for some food stamp beneficiaries, a condition of raising the federal debt limit earlier this year.
