News: SNAP error rate prompts bipartisan fury

Wednesday, July 5, 2023

SNAP error rate prompts bipartisan fury

Jul 05, 2023

With help from Marissa Martinez

QUICK FIX

— All four leaders of Congress’ Agriculture committees issued a rare joint statement condemning the SNAP error rate. The number was significantly inflated due to pandemic stressors.

— Steel tariff fights are back, and lawmakers are split over whether potential new duties would raise already high food prices or protect a vital American industry.

— Several civil rights groups announced plans to file a lawsuit after the new prohibitive Florida immigration law went into effect July 1 . SB 1718 imposes an E-Verify mandate on employers with 25 or more workers — with big implications for next year’s agricultural harvest season.

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Driving the day

SNAP ERROR RATE FALLOUT: Strikingly high rates of SNAP payments made in error prompted a rare rebuke from all four leaders of the congressional Agriculture committees.

The error rate is not a metric measuring SNAP fraud; it is a measure of erroneous payment of SNAP benefits due to a mistake by a state agency. It sheds light into how accurately states determine eligibility and payment. Nonetheless, congressional Republicans have been watching closely as they make a case to strengthen guardrails on the program.

What they’re saying: Sens. Debbie Stabenow (D-Mich.) and John Boozman (R-Ark.), and Reps. G.T. Thompson (R-Pa.) and David Scott (D-Ga.) called the error rate “unacceptable” and that it “threatens the integrity of the program.”

“We urge governors and administrators to promptly establish corrective action plans and continue to work with USDA to address the root causes of these errors to improve their program operations, remain accountable to the taxpayer, and most importantly, ensure that benefits are targeted to the people who are the most in need,” the group said.

What’s the fuss: The error rate in overpayments rose more than three percent from fiscal year 2019 to fiscal 2022. Last year’s rate was 9.84 percent, compared to 2019’s 6.18 percent.

USDA said SNAP’s massive emergency response during the pandemic that helped feed millions of people is largely to blame for the increased error rate, due to increased strain on state agencies administering SNAP.

“USDA is committed to supporting states in improving payment accuracy in SNAP to ensure the program effectively and efficiently serves those who need it and promotes good stewardship of taxpayer dollars,” said Stacy Dean, the top-ranking nutrition official at USDA. She said the agency would double down on efforts with state agencies to cut back on payment errors.

Why it matters: The joint statement of top Democrats and Republicans shows that the inflated error rate is not just a partisan issue.

Trade

FIGHT BREAKS OUT OVER STEEL TARIFFS: Potential tariffs on tinplate steel have sparked a food fight in Congress, with lawmakers split over whether the tariffs will raise food prices or benefit American workers.

Background: The U.S. International Trade Commission and Commerce Department are weighing whether to impose antidumping duties on tinplate steel from Canada, China, Germany, Netherlands, South Korea, Taiwan, Turkey, and the U.K. that are allegedly sold in the United States at less than fair value and subsidized by the government of China.

ITC in March voted to continue an investigation, finding “reasonable indication that a U.S. industry is materially injured” by the imports. The case was brought by steel company Cleveland-Cliffs, which produces tinplate steel at its West Virginia facility, and the United Steelworkers union.

Tinplate steel is often used in canned foods.

Congressional food fight: Lawmakers have sparred over whether the tariffs should be imposed.

A bipartisan group of House members led by Reps. David Rouzer (R-N.C.) and Susan Wild (D-Pa.) last month wrote to the administration urging against the tariffs. The group argued the tariffs would further inflate already high food prices.

“If imposed, tariffs would lead to additional costs on domestic manufacturers and customers at a time of already high inflation and grocery prices,” the group wrote. “Canned good cost increases would particularly impact vulnerable populations, food banks, and consumers who rely on government nutrition and feeding assistance programs like SNAP and WIC.”

But the tariffs also have powerful supporters, including Democratic Sen. Sherrod Brown of Ohio. Brown, along with a number of Senate colleagues like Sens. Joe Manchin (D-W.Va.) and Shelley Moore Capito (R-W.Va.), wrote a letter earlier this year urging the ITC to impose the tariffs to protect U.S. workers.

“It is our understanding that the future of the [Cleveland-Cliffs] facility rests on the outcome of this trade case,” the Senators wrote.

THE STATES

FLORIDA LAWSUIT: The Southern Poverty Law Center, American Civil Liberties Union, ACLU of Florida, Americans for Immigrant Justice, and American Immigration Council said they planned to file a federal lawsuit challenging SB 1718, which imposes E-Verify on employers with 25 or more workers.

They plan to focus on one section that penalizes people who “knowingly and willfully” transport undocumented people across state lines. Another part of the bill prohibits undocumented people who have legal driver’s licenses from other states from using them in Florida, making any travel throughout the state more difficult.

Read more about how Florida’s agriculture industry may be affected here.

STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president’s ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.

Row Crops

— Shoppers think that food inflation — and other types of inflation — are near pre-pandemic levels, reports The Wall Street Journal.

— Vertical farming’s very bad year, via Canary Media.

— Europe plans to make it easier for farmers to grow gene-edited crops, from our colleagues in Brussels.

— ICYMI: The Economic Research Service has a new report out on concentration and competition in agribusiness.

THAT’S ALL FOR MA! Drop us a line: gdowns@politico.com, meredithlee@politico.com, marciabrown@politico.com, mmartinez@politico.com, abehsudi@politico.com and ecadei@politico.com.