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Federal Welfare Reform:
Impact on Children's Nutrition Programs

The following summary examines some of the proposed impacts of recent legislation passed by the US Congress (H.R.4 and S.1120) on children's nutritional programs. These two bills will be addressed in Conference Committee to reach a compromise in October 1995.

Child Nutrition Block Grants (H.R.4, Title III)

• The Congressional Budget Office (CBO) estimates cuts in child nutrition programs amounting to a $7 billion reduction over the next five years. Block grants do not accommodate food price inflation and rising school enrollments, therefore, funding may decrease beyond these estimates.
• Funding reductions would be steepest in child nutrition programs operated outside schools. Funding available in FY 1996 for Child Care Food Program and the Summer Food Program for Children would be over 45% less than the amount these programs would receive under current law.

Food Stamp Program

Millions of children nationally would either lose eligibility for Food Stamp benefits or receive lower benefits as a result of the provisions of the Senate Work Opportunity Act of 1995 (S.1120).

• Nearly 14 million children would receive lower benefits as a result of reductions in the maximum allotment levels to 100% of the Thrifty Food Plan under S.1120.
• Benefits would also be reduced for 11.5 million children due to an annual $2 reduction in the standard deduction available to all households.
• Estimated five-year losses in federal funding of $198 million to Minnesota.
• 166,000 MN children who currently receive food stamps would have their benefits cut by 19% under H.R.4.

WIC

• 29,150 babies, preschoolers, and pregnant women in Minnesota would lose infant formula and other WIC nutrition supplements
• If WIC is included in the Child Nutrition Block Grant Program, there would no longer be any federal nutrition standards. States would then develop their own nutrition standards and their own definition of a Food Package.

School Lunch Program

• 45,350 MN children would lose subsidized lunches, based on the assumption that MN will reduce enrollment in this program by 8.8%, the amount of the budget cut.
• No national nutrition standards required; states can develop their own nutrition standards and their own definition of a meal. Capped appropriation - no provision for increasing enrollments, increasing participation levels or increasing numbers of low income students.
• No guaranteed free meals to poor children; schools could charge for their meals.

Child and Adult Care Food Program

• 28,000 MN children in child care and Head Start settings would lose Child and Adult Care Food Program meals.

Based on the information above, the safety net that protects our children from hunger is severely threatened for the first time in sixty years.

Excerpted from: Center on Budget and Policy Priorities paper, "The Child Nutrition Block Grants Developed by the Economic and Educational Opportunities Committee, February 1995.

ibid.
Preliminary data from the Departments of Health and Human Services, Agriculture, Labor, Housing and Urban Development and Social Security Administration analysis.

ibid.
ibid.
ibid.

According to MN Department of Human Services, an average of 312,951 individuals received food stamps last year in MN. According to the USDA, 53% of recipients are children, meaning that 165,584 children received food stamps.

Children's Defense Fund (CDF)-MN, unpublished WIC data from July 1994, USDA, Food and Nutrition Service.

According to USDA, 515,387 children were served in '94. Funding cut data is from the CBO, calculated by CDF-MN. Data built upon assumption that MN will reduce enrollment by 8.8%, the amount of the budget cut.

CDF-MN estimated numbers of children affected in FY 2002 if costs were cut solely by reducing program enrollments under H.R.4.

Fact Find is published by the Center for Early Education and Development (CEED), University of Minnesota, 1954 Buford Avenue, Suite 425, St. Paul, MN, 55108

ceed@umn.edu (email)
http://cehd.umn.edu/ceed (Web)

CEED provides information regarding young children (birth to age eight), including children with special needs, in the areas of education, child care, child development, and family education. CEED activities include research, training, and publications geared toward improving professional practices, supporting parents, and informing policy development.

The University of Minnesota is an equal opportunity employer and educator. The College of Education and Human Development is committed to recruiting, enrolling, and education a diverse population of students who represent the overall composition of our society. This publication is available in alternate formats upon request.

Copyright © 2004 by Center for Early Education and Development

These materials may be freely reproduced for education/training or related activities. There is no requirement to obtain special permission for such uses. We do, however, ask that the following citation appear on all reproductions:

Reprinted with permission of the Center for Early Education and Development (CEED), College of Education and Human Development, University of Minnesota, 1954 Buford Avenue, Suite 425, St. Paul, MN, 55108; phone: 612-625-2898; fax: 612-625-6619; e-mail: ceed@umn.edu, web site: http://cehd.umn.edu/ceed.