Supplemental Nutrition Assistance Program: Quantitative economic and health benefits

A learning journey by Arthur Lee, assisted by Google AI NotebookLM, Gemini 2.0, and Microsoft Co-Pilot

22 May 2025

Early in my teenage years, when my brother was born, my family’s household income fell below the U.S. defined poverty line. My father was a decades-long waiter at Chinese restaurants. My mother worked in factories in Hong Kong, and finally decades in garment factories in Chinatown, New York. Every week for several years, I picked up supplemental foods such as fresh eggs, milk, orange juice, cereal, and bread from a store front distribution point of a New York implementation of the federal public assistance program, which was called Aid to Families with Dependent Children (AFDC). AFDC later merged into New York’s implementation of the U.S. Department of Agriculture’s Supplemental Nutrition Assistance Program (SNAP). [Note: The attached poster is sourced from the State of Virginia, the Department of Social Services. I show it here only for an illustrative purpose of one state’s flyer. https://www.dss.virginia.gov/benefit/snap.cgi ]

For this learning journey, I examined at a high level the economic aspects of this part of my early life when my family was on public assistance. I want to learn what the SNAP program is doing in more recent years in quantitative terms. I also generated an AI-podcast for this research. The AI-podcasters bantered back and forth to teach me the economic impacts and potential health benefits of the SNAP program.

I was able to examine original research papers and data tables from the U.S. Department of Agriculture, which operated the SNAP program mandated by federal law. The USDA also partners with States in various ways to execute this assistance to the Americans who need it.

I was particularly inspired by Emily Lam et al’s Journal of the American Medical Association Cardiology study (May 2025) below which demonstrated statistical association of early childhood SNAP benefits to cardiovascular health benefits in a cohort of people as they grew into young adulthood (around 22 years old). The paper started me thinking about my own early childhood and young adulthood.

I wanted to understand the quantitative impacts of these SNAP benefits on families, the multiplier effects on the economy and jobs, and any potential health benefits. My overall assessment of the papers and the data is that these benefits, or investments, can be foundational to the lives of young people and the poor families who need them.

I examined three references, and I also processed them via Google NotebookLM:

·       Patrick Cannon and Brian Stacy, The Supplemental Nutrition Assistance Program (SNAP) and the Economy: New Estimates of the SNAP Multiplier, 18 July 2019, ERR-265. https://www.ers.usda.gov/publications/pub-details?pubid=93528

·       Supplemental Nutrition Assistance Program (SNAP) State Activity Report for Fiscal Year 2023, published by the USDA Food and Nutrition Service. https://fns-prod.azureedge.us/sites/default/files/resource-files/snap-sar-fy23.pdf

·       Emily L. Lam, BA; Abigail M. Gauen, MS; Namratha R. Kandula, MD, MPH; Daniel A. Notterman, MD; Noreen Goldman, DSc; Donald M. Lloyd-Jones, MD, ScM; Norrina B. Allen, PhD, MPH; and Nilay S. Shah, MD, MPH, Early Childhood Food Insecurity and Cardiovascular Health in Young Adulthood. JAMA Cardiol. Published online May 14, 2025. doi:10.1001/jamacardio.2025.1062, https://jamanetwork.com/journals/jamacardiology/article-abstract/2833872#google_vignette

SNAP benefit payments issuance trend

The United States Department of Agriculture had a total budget of $475.16 billion in FY2023. I looked at FY2023 as this was the first year when there was no longer a full year of CoVID-19 spending. In FY2023, CoVID spending stopped by law at the end of February 2023.  

Keeping in mind the number of $475.12 billion, we can get a sense of the size of the SNAP program as a part of the U.S. Department of Agriculture. In FY2023, the SNAP benefits amounted to 22.5% of the USDA’s FY2023 budget.

[Source: https://www.usaspending.gov/agency/department-of-agriculture?fy=2023 and data from prior fiscal years.]

I summarized below the trends in participation and benefit issuance over time.

Countercyclical Nature: SNAP is designed to be countercyclical, meaning that program enrollment and spending tend to increase during economic downturns as incomes fall and more individuals become eligible. This helps the program act as an automatic stabilizer for the economy. Historical data shows participation jumps during recessions, such as the increases seen during the recession of 1990-1991, 2001, and notably the Great Recession from 2007 to 2009, when participants rose from 26.3 million to over 40 million.

Participation Trends (FY 2017-2023):

◦ The average monthly number of persons participating fluctuated but saw a significant increase peaking in FY 2021, followed by a decrease and then a slight rise. Specifically:

▪ FY 2017: 42.2 million

▪ FY 2018: 40.8 million 

▪ FY 2019: 35.7 million

▪FY 2020: 39.9 million

▪FY 2021: 50.0 million (peak in this period).

▪FY 2022: 41.2 million.

▪FY 2023: 42.1 million, showing a 2.12% increase from FY 2022.

◦The average monthly number of households participating followed a similar trend, peaking in FY 2021:

▪FY 2017: 20.9 million

▪FY 2018: 20.2 million

▪FY 2019: 18.0 million

▪FY 2020: 20.6 million

▪FY 2021: 28.2 million (peak in this period)

▪FY 2022: 21.6 million

▪FY 2023: 22.3 million, showing a 3.01% increase from FY 2022.

Issuance Trends (FY 2017-2023):

◦Total issuance (in millions of dollars), which includes regular ongoing SNAP benefits and emergency allotments, saw a significant increase starting in FY 2020 and peaked in FY 2022. Emergency allotments were authorized during the pandemic to help address food needs.

▪FY 2017: $63,711 million

▪FY 2018: $60,917 million. (Note: One source mentions $65.3 billion spent in FY 2018, while another specifies $60.9 billion in benefits issued. The issuance figure is likely more directly related to the benefit value received by households.

▪FY 2019: $55,622 million

▪FY 2020: $73,895 million

▪FY 2021: $108,710 million.

▪FY 2022: $114,298 million (peak in this period).

▪FY 2023: $106,858 million, showing a -6.51% change from FY 2022.

The average monthly SNAP benefit amounts per person and per household from FY 2017 to FY 2023 are listed below.

The average monthly SNAP benefits were:

•FY 2017: $126 per person, $254 per household.

•FY 2018: $125 per person, $251 per household.

•FY 2019: $130 per person, $258 per household.

•FY 2020: $161 per person, $303 per household.

•FY 2021: $228 per person, $406 per household.

•FY 2022: $236 per person, $422 per household (peaked in 2022).

•FY 2023: $209 per person, $366 per household.

Total SNAP issuance, including regular ongoing SNAP and emergency allotments, was approximately $106.9 billion in FY 20232. In FY 2022, total issuance was $114.3 billion, while in FY 2023 it was $106.9 billion, representing a decrease of 6.51%. Emergency allotments were added to a household's regular monthly benefit to help address food needs during the pandemic. While a majority of States continued to provide emergency allotments in early FY 2023, they ended nationwide after the February 2023 issuance. In FY 2022, approximately $37.9 billion in emergency allotments were issued, compared to approximately $16.6 billion in FY 2023

In summary, SNAP participation and issuance generally rise during economic difficulties, as observed in the increase leading up to and peaking in FY 2021 and FY 2022 (for issuance). More recently, from FY 2022 to FY 2023, participation increased slightly, while total issuance and average benefit amounts decreased.

State-by-State Benefits Issuance

Based on the sources provided, here is a table presenting the SNAP benefit issuance by state for FY 2023, drawing information directly from the SNAP State Activity Report FY 2023.

The data presented in the table includes issuance by Electronic Benefit Transfer (EBT), cash, and emergency allotments, as well as the total issuance for each state. The total issuance includes regular ongoing SNAP benefits and emergency allotments, but excludes Pandemic EBT (P-EBT), Disaster SNAP (D-SNAP), and benefit replacements. While a majority of States continued to provide emergency allotments in early FY 2023, they ended nationwide after the February 2023 issuance due to the Consolidated Appropriations Act of 2023.

SNAP Issuance State-by-State according to Benefit Type - FY 2023

The table below provides a comprehensive breakdown of SNAP issuance for each state in FY 2023.

Note: State totals may not add exactly to the U.S. total due to rounding. Some states did not report cash issuance or emergency allotment issuance. The "U.S." row shows the sum across all states.

Note: The State by State data table above includes data for the District of Columbia, Guam, and the U.S. Virgin Islands. Puerto Rico participates in a block grant program called the Programa de Asistencia Nutricional (PAN), which is not included in the data table.

This table above provides a comprehensive breakdown of SNAP issuance for each state according to benefit type in FY 2023.

Job impacts

When the U.S. government injects money into the economy (‘stimulus money’}, the money has a ripple effect, summarized as a multiplier, that can create jobs upstream and downstream of where the money is received by people. As recipients of the money, poor families do not have the margin of spending to try to save the money. They normally spend the money immediately. As discussed by Cannon and Stacy (2019), the stimulus money spent in grocery stores provided an immediate benefit to the grocery industry and its supply chains, especially with effects directly on agricultural products.

Cannon and Stacy (2019) provided a range of estimates for the number of jobs supported or generated per billion dollars of Supplemental Nutrition Assistance Program (SNAP) spending. These estimates vary depending on the economic conditions, the modeling approach used, and the specific time period analyzed.

Here are the job impact estimates per $1 billion in SNAP benefits from the different models used:

1. ERS FEDS-SAM Model (Primary Study): The main study discussed Cannon and Stacy (2019), using the newly compiled Food Environment Data System–Social Accounting Matrix (FEDS-SAM) model and 2016 data, estimates the impact of a hypothetical $1 billion increase in SNAP benefits.

◦This model is considered most appropriate for conditions during a slowing economy when there are underemployed resources.

◦The study finds that a $1 billion increase in SNAP benefits during an economic downturn supports approximately 13,560 jobs economy-wide.

◦Within this total, the study estimates that 480 full-time equivalent jobs are supported in the agriculture industries (farming, forestry, fishing, and hunting). The trade and transportation sectors are estimated to see the largest job gains, at 4,450 jobs per billion SNAP dollars.

2. Hanson (2010) FANIOM Model: An earlier Economic Research Service (ERS) report by Hanson (2010) used the Food Assistance National Input-Output Multiplier (FANIOM) model.

·       Hanson (2010) estimated that a $1 billion increase in SNAP expenditures leads to 16,100 jobs (after adjusting to 2016 SNAP dollars).

·       Other reporting of Hanson's work suggests a range of between 8,900 and 17,900 full-time equivalent jobs per $1 billion increase, or 1 job per $112,360 spent, which translates to approximately 8,900 jobs per billion (at the conservative end of the range). The sources note that the FEDS-SAM results are slightly lower than Hanson's FANIOM estimates.

3. Pender et al. (2019) Empirical Study: This study used county-level SNAP payment and employment data to estimate job impacts.

·       Pender et al. (2019) found that a $10,000 increase in county-level SNAP expenditures was associated with an increase of between 0.4 and 0.5 jobs during 2001-2014.

·       This translates to an estimated 40,000 to 50,000 jobs per billion spent. The authors note that the impacts were greater during the Great Recession (2008-2010). This estimate is significantly higher than the model-based estimates.

4. Wilson (2012) ARRA Spending Analysis: ARRA stands for the American Recovery and Reinvestment Act. ARRA is a significant policy response following the Great Recession, which occurred from December 2007 to June 2009.

·       Wilson (2012) examined ARRA stimulus spending from several agencies, including those focused on low-income support like USDA (which included food stamps/SNAP) and HHS (Medicaid).

·       Wilson (2012) estimated that ARRA spending for departments like Transportation, Education, and Health and Human Services generated about one job per $125,000 spent during the Great Recession. This equates to approximately 8,000 jobs per billion dollars spent by these combined agencies.

In summary, the most recent estimate from the ERS FEDS-SAM model, considered appropriate for a slowing economy, is that $1 billion in new SNAP benefits supports approximately 13,560 jobs. Other studies using different methods or focusing on different time periods provide estimates ranging from around 8,000-16,100 jobs per billion, and up to 40,000-50,000 jobs per billion according to one empirical study.

Health benefits from early childhood to young adulthood

The long-term Northwestern Medicine study by Emily Lam et al (May 2025) published in JAMA Cardiology suggested a statistical association of participation in SNAP during early childhood with significant positive health effects that extend into young adulthood.

Here's a summary of how SNAP participation appears to affect health for children growing into young adults:

1. Mitigation of Food Insecurity's Negative Effects: The study found that experiencing food insecurity in early childhood (ages 3-5) is linked to worse heart health two decades later, at age 22. This negative association was primarily tied to a higher Body Mass Index (BMI) and lower physical activity scores in young adulthood. Children who were food-insecure in early childhood had higher odds of having a BMI of 30 or more in young adulthood. Overall cardiovascular health, as measured by the American Heart Association's "Life's Essential 8" (LE8), was lower in young adulthood for those who experienced early childhood food insecurity.

2. SNAP as a Protective Factor: Crucially, for children in food-insecure households, receiving SNAP benefits during early childhood (ages 3-5) appeared to significantly mitigate these negative health outcomes.

3. Similar Health Outcomes to Food-Secure Peers: The heart health at age 22 for children who were food-insecure but participated in SNAP was found to be similar to that of their peers from food-secure households. This suggests that SNAP participation helped these children largely avoid the negative associations between early childhood food insecurity and cardiovascular health in young adulthood.

4. Reduced Likelihood of High BMI and Low Physical Activity: Among food-insecure children, those whose households did not participate in SNAP had significantly worse cardiovascular health outcomes, specifically higher BMI and lower physical activity scores, compared to those who did receive SNAP.

In summary, the sources indicate that SNAP participation during the critical developmental period of early childhood serves as a protective factor against the long-term negative health consequences of food insecurity, helping to promote healthier BMIs and better cardiovascular health as children grow into young adults. This highlights the potential of SNAP as a tool for protecting public health.

Management of fraud and abuse

The SNAP program manages fraud and abuse with investigations, judicial prosecutions, and administrative disqualification hearings. Recipients of the benefits go through a fair hearing procedure to appeal rulings.

Fair Hearing Procedure

• SNAP regulations provide households with recourse if their benefits are denied or reduced, suspended, or canceled due to an adverse decision by the State agency.
• This recourse is referred to as the fair hearing process.
• SNAP regulations require that a State agency conduct a State-level hearing, reach a decision, and notify the household and local agency of the decision within 60 days of receiving a request for a fair hearing.
• In response to the COVID-19 pandemic, the Food and Nutrition Service (FNS) allowed State agencies flexibility to extend the fair hearing process up to 120 days.
• In FY 2023, the number of fair hearings held increased by 10.6 percent from FY 2022.
• On average, State agencies' decisions were upheld in 68.3 percent of fair hearings in FY 2023, compared to 59.7 percent in FY 2022.

Fraud Management

• In FY 2023, State agency investigators referred 30,238 fraud investigations to hearing officials for administrative disqualification hearings (ADH) or to prosecutors for prosecution through the court system.
• Fraud investigations fall into two categories: Eligibility fraud investigations: These involve individuals suspected of intentionally making false or misleading statements, or misrepresenting, concealing, or withholding facts during application, reporting, or recertification periods with the intent to influence a SNAP eligibility determination. Trafficking investigations: These involve individuals suspected of trafficking benefits. A prime example of ‘trafficking benefits’ is exchanging benefits for cash.
• Investigators determine if sufficient documentary evidence of SNAP fraud or abuse exists to warrant civil, criminal, or administrative legal action.
• Cases referred for an ADH involve an administrative law judge determining if an intentional program violation occurred, which can result in a SNAP disqualification. An individual may also sign an ADH waiver, leading to disqualification. In FY 2023, there were 18,666 ADHs where an Intentional Program Violation was found and 18,855 ADH Waivers Signed at the U.S. level.
• Cases referred for prosecution are handled by local prosecutors who pursue SNAP disqualifications through the court system. Prosecutors may also use disqualification consent agreements (DCAs), where accused individuals agree to a SNAP disqualification in cases of deferred adjudication. In FY 2023, there were 37,246 prosecution convictions and 4,230 Disqualification Consent Agreements Signed at the U.S. level.
• SNAP also manages recipient claims established against households that received more SNAP benefits than they were entitled to or that trafficked benefits. Claims can be due to intentional program violation (fraud and trafficking), household error, or agency error.
• In FY 2023, State agencies established approximately $543.2 million in new claims against households. The average claim established was approximately $1,417.
• State agencies collected over $388.9 million in claims in FY 2023. This included collections via recoupment (reducing future benefits) and collections through the Treasury Offset Program.

Overall summary and perspective

SNAP benefits were $ approximately 22% of the U.S. Department of Agriculture’s FY2023 budget. The USDA partners with States to administer the program. The program helped over 42 million people, which is 12.6% of the U.S. population according to the U.S. Census Bureau. According to USDA’s economists, SNAP benefits played the role of stimulus to the economy, especially during the period of public health emergency – the CoVID19 pandemic. The supplemental nutrition assistance helped to create over as many as 16,000 jobs per $1 billion of SNAP benefits according to economic modeling, or even more according to one empirical study. This translated to 1,696,000 jobs created in 2023. With total benefits paid out as $106.9 billion in FY 2023, State agencies established $543.2 million in claims of fraud and abuse from over 37,246 prosecution cases. Thus, fraud and abuse were established as less than 1% of the total SNAP benefits issued in FY2023.

One medical study’s quantitative analysis of a long-term cohort of 1,071 people suggested that the supplemental nutrition helped young adults (around 22 years old) with their cardiovascular health when they received the supplemental nutrition as young children (3-5 years old). Although the health benefits have not been quantified, I can only believe that staying healthy from cardiovascular issues would not impose additional societal costs, which should be considered a public benefit.

A previous version of the SNAP program implemented by the state of New York helped my brother and me through several years of tough times in my family’s financial life. Both of us later received federal aid to attend the Massachusetts Institute of Technology. I am retired now. My brother is still employed as a senior electrical engineer at a major electronics technology company in New England. Throughout our early lives, my brother and I worked hard, but we also received such government support that made our health and education possible. Such investments in young people and in poor families can be foundational to more generations of Americans to come.

Arthur Lee

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