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Tuesday, December 3, 2024

CBO analysis questions impact of expanded SNAP benefits on workforce

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Jodey Arrington - Chairman of the House Budget Committee | Official U.S. House headshot

Jodey Arrington - Chairman of the House Budget Committee | Official U.S. House headshot

The Congressional Budget Office (CBO) has released an analysis on the impact of the Biden-Harris Administration's expansion of the Supplemental Nutrition Assistance Program (SNAP), revealing a potential decrease in labor force participation. The report, requested by House Budget Committee Chairman Jodey Arrington, estimates that the Thrifty Food Plan (TFP) increase could cost $300 billion over the next decade and may discourage work among benefit recipients.

Chairman Arrington expressed concerns about this development, stating: "CBO confirmed that the Biden-Harris Administration’s unilateral expansion of Food Stamp benefits by tens of billions of dollars has created a perverse incentive for healthy adult beneficiaries not to work." He criticized the administration's spending, saying it "has not only increased the national debt and reduced job participation but has trapped a whole new generation of Americans in poverty and government dependence."

The TFP is used by the United States Department of Agriculture to set SNAP benefit levels. Historically, it remained cost-neutral when adjusted for inflation. However, in August 2021, a reevaluation by the Biden-Harris Administration led to a 23 percent price increase without adhering to traditional cost constraints. This action reportedly violated procedures under the Congressional Review Act of 1996.

Since taking office, President Biden and Vice President Kamala Harris have signed numerous executive orders with significant financial implications. Critics argue these actions bypass Congress and impose financial burdens on taxpayers.

According to CBO findings, changes to TFP have contributed to decreased labor force participation among working-age SNAP recipients, potentially impacting economic growth negatively. The House Budget Committee Republicans are examining these expenditures closely as part of their oversight responsibilities.

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