Traverse City Record-Eagle

Business

May 16, 2013

House panel set to OK cut in food stamp program

(Continued)

The cuts are part of massive legislation that costs almost $100 billion annually over five years and would set policy for farm subsidies, rural programs and the food aid.

The House panel started work on the legislation Wednesday, one day after the Senate Agriculture Committee approved its version.

Last year more than 47 million people used the SNAP program with the cost more than doubling since 2008. The rolls rose rapidly because of the economic downturn, rising food prices and expanded eligibility under President Barack Obama’s 2009 economic stimulus law.

Republicans criticized Obama in last year’s presidential campaign for his expansion of the program, and many House conservatives have refused to consider a farm bill without cuts to food stamps, which make up about 80 percent of the bill’s cost.

The Senate approved much smaller cuts to the program, about $400 million a year. House Agriculture Committee Chairman Frank Lucas, R-Okla., will have to appease all sides as he tries to push the farm bill through for the third year in a row, balancing calls from House conservatives to cut the program with Senate Democrats who are reluctant to touch it.

“I expect it to come from all directions,” Lucas said last week of the food stamp debate.

The House bill would cut around $4 billion a year from food aid and farm spending, while the Senate bill would trim roughly $2.4 billion. Those reductions include more than $600 million in yearly savings from across-the-board cuts that took effect earlier this year.

Much of the savings in the House and Senate bills comes from eliminating annual direct payments, a subsidy frequently criticized because it isn’t tied to production or crop prices. Part of that savings would go toward the deficit reduction, but the rest of the money would create new programs and raise subsidies for some crops while business is booming in the agricultural sector.

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