Farm bill: Helping America’s working families

In the coming weeks, the Senate will be debating one of the most important pieces of legislation before this Congress — the farm bill.  Many Americans automatically think of commodity supports and conservation programs when they hear “farm bill,” but in reality, the farm bill encompasses many other aspects such as trade, research and alternative energy.  The largest component of the legislation is nutrition assistance programs.  We have a tremendous responsibility to ensure our nation’s food security, and helping feed hungry Americans is an important part of that responsibility.

Our nutrition assistance programs, anchored by the Food Stamp Program, play a key role in ensuring that needy Americans have access to the food they need to lead healthy, productive lives.  I know from the school teachers in my family the importance of good nutrition for our children’s mental and physical development.  Moreover, much of the food for nutrition programs comes from U.S. farmers, which helps agriculture.

The Food Stamp Program not only provides food and emergency aid to families in need, it also helps many low-income Americans on their path to independence and self-sufficiency.  During the welfare reform debate of 1996, Congress asked our nation’s families on welfare to take personal responsibility for themselves and join the workforce, and many of those families did. 

According to the Congressional Research Service, from 1996 to 2005, the number of food stamp households with children who received cash welfare payments decreased by 57 percent, and the number who reported earned income increased 41 percent.  Many families have transitioned from welfare to work, and the Food Stamp Program should do more to encourage this continuing transition.

In the 2002 farm bill, Congress gave states many options to simplify the administration of the Food Stamp Program.  Most states have taken advantage of these options and the program serves both taxpayers and recipients better today than in the past.  However, there is still room to improve.  For many working families with low income, there are some aspects of the Food Stamp Program that may reduce their ability to escape the cycle of poverty.

Earlier this year, I introduced legislation that would offer families the chance for a better future.  The Food Stamp Savings and Investment Act of 2007 would exclude IRS-approved retirement and education savings accounts from resources when determining eligibility for the program.  In other words, families would not have to deplete these specific accounts or pay the penalties associated with tapping into them should they find themselves in need of temporary food assistance.  It is important to note that the vast majority of working families who participate in the Food Stamp Program do so only for a short period of time. 

Currently, food stamp participants’ contributions to pension programs and 401(k)s do not count toward the asset test, but modern tools like IRAs and Roth-IRAs are not exempt, primarily because these modern programs did not exist when the food stamp program was created by Congress over 30 years ago.  Under the current rules, if a family member loses their job, their retirement savings are often rolled over into a portable IRA.  This triggers the asset limits, and the family would have to spend down their retirement savings before they can receive temporary support to buy groceries.

To fix this “disincentive to save,” my legislation would proactively exempt savings plans for retirement and education from being counted toward the asset limit for determining food stamp eligibility.  Furthermore, permitting participants to preserve their retirement investments will help ensure an adequate retirement income and supplement the federal costs of caring for the participants once they retire.

The core ideas underlying this bill enjoy broad support across the political spectrum.  The Heritage Foundation, Center on Budget and Policy Priorities, New America Foundation, Corporation for Enterprise Development, and Center for Law and Social Policy have all voiced support for reforming asset limits in order to encourage savings.

Reforming the asset test has the potential to help needy families break the cycle of poverty and achieve long-term financial independence — a common-sense policy that will make a positive impact in the lives of our fellow Americans.  

Chambliss is the ranking member of the Senate Agriculture, Nutrition and Forestry Committee.

Special section: Agriculture

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