ABSTRACT
Food stamps is a federal program designed to increase the food-purchasing power of low-income households. The program is administered at the federal level by the Department of Agriculture and at the state and local levels by welfare agencies. A household's food stamp allotment is determined by subtracting 30 percent of its "countable" income from the cost of the thrifty food plan. The rationale for this method is that 30 percent of a household's countable income should be reserved for food. The food stamp program is an appropriated entitlement, so eligible households are entitled to receive food stamps, with program costs funded by an appropriation. Although the reconciliation act amended provisions of the Food Stamp Act of 1977, it did not extend the authority to appropriate funds, which expired at the end of fiscal year 1981. The new Reagan budget proposes additional program reductions in the food stamp program.
