What Are The Chances Of A Food Stamp Collapse In November?

The implications of a potential government shutdown on the Supplemental Nutrition Assistance Program (SNAP), which provides food assistance to millions of Americans. It examines the likelihood of cuts to this program and the possible consequences.

1. SNAP Overview:

• SNAP is the largest food welfare program globally, costing over $100 billion annually.

• As of 2025, about 42 million Americans (12% of the population) depend on it.

2. Consequences of Cuts:

• Experts warn that the loss of food stamps could lead to severe chaos, with angry mobs and increased desperation.

• While food banks can provide temporary relief, they may not cope well with a high demand during significant cuts.

3. Government Shutdown Context:

• The longest federal shutdown lasted 35 days during 2018-2019, and SNAP benefits continued during that time.

• A prolonged shutdown beyond that record could jeopardize SNAP funding.

4. Funding Issues:

• Currently, SNAP has a $6 billion contingency fund, but it is insufficient for the expected $8 billion required for November benefits.

• Recent letters from the Department of Agriculture indicate that states may have to pause EBT and SNAP benefits starting in November.

5. Political Dynamics:

• The ongoing government shutdown, now lasting 18 days, faces significant political challenges, primarily stemming from disagreements between Democrats and Republicans over healthcare funding for non-citizens.

• Democrats have opposed temporary funding measures multiple times, complicating negotiations.

6. Predictions and Perceptions:

• Betting odds for the shutdown lasting into mid-November have recently increased, suggesting greater uncertainty.

• Some believe Democrats may use the shutdown as a political tool to blame conservatives for the fallout, including food assistance cuts.

The potential collapse of food stamp benefits in the face of a federal government shutdown could have devastating effects on millions of Americans. With political tensions rising, it is crucial to monitor developments concerning SNAP funding and the ongoing negotiations between lawmakers. 

https://www.zerohedge.com/economics/what-are-chances-food-stamp-collapse-november