Nearly 1 in 6 Americans is served by 1 or 

tance programs administered by the U.S. De

some point during the year. These program

more nutritious diet, provide opportunities to 

Nation’s children, and help America’s farme

tribution of food purchased under farmer ass

tance program targets specific populations w

programs work individually and in concert 

children and low-income adults. The Economi

sible for conducting studies and evaluation

grams, with a focus on nutrition outcomes, ho

ered, and program dynamics and administra

tance trends at the midpoint of fiscal 2002

sionally mandated ERS study on one food a

Adult Care Food Program.

Economic Research Service

U.S. Department of Agriculture 
Food Assistance 

Spending Rises Sharply

USDA expenditures for food assistance totaled

$19.4 billion during the first half of fiscal

2002 (October 2001–March 2002), an

increase of almost 12 percent over the first

half of fiscal 2001. If this trend continues during the second half of fiscal 2002, it will mark

the second straight year in which total food

assistance spending rose, after 4 years of

decline. Five programs—the Food Stamp

Program, the National School Lunch Program,

the Special Supplemental Nutrition Program

for Women, Infants, and Children (WIC), the

School Breakfast Program, and the Child and

Adult Care Food Program—accounted for

almost 94 percent of USDA’s total spending

for food assistance. While each of these five

major programs expanded during the first half

of fiscal 2002, the Food Stamp Program

accounted for most of the increase in food

assistance spending.

Food Stamp Program Expands

The Food Stamp Program is the cornerstone of

USDA’s food assistance programs, providing

monthly benefits for eligible participants to

purchase approved food items at approved

food stores. The program is available to most

households (subject to certain work and immigration status requirements) that meet income

and asset criteria. During the first half of fiscal

2002:

 The Food Stamp Program accounted for

over half (52 percent) of total spending for

food assistance.

 Spending for the Food Stamp Program

totaled $10.1 billion, or 17 percent more

than during the first half of the previous

fiscal year. This dramatic increase in

expenditures was due to greater participation and an increase in the average per

person benefit. 

 

 

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Monthly Food Stamp Program participation continues to 

rise in first half of fiscal 2002

Millions

Oct Jan Apr July Oct Jan Mar

2000 2001 2002

15.5

16.5

17.5

18.5

19.5
Americans and offer free or reduced-price

lunches to needy children. Any child at a participating school may enroll in the program.

Children from families with incomes at or

below 130 percent of the Federal poverty

level are eligible for free meals, and those

from families between 130 and 185 percent

of the poverty level are eligible for reducedprice meals. Children from families with

incomes over 185 percent of the poverty level

pay full price, though their meals are still subsidized to a small extent. Over 90 percent of

all elementary and secondary students attend

a school that participates in the program. In

the first half of fiscal 2002:

 An average 28.1 million children participated in the program each schoolday, or

about 58 percent of all children attending

a participating school or institution. 

 Spending for the program totaled $4.1 billion, a 5-percent increase over the same

period the previous year. 

 2.8 million school lunches were served,

about 1 percent more than during the first

6 months of fiscal 2001. 

 

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Federal Nutrition Assista

Food Stamp

Program

National

School Lunch

Program

School

Breakfast

Program

Child and

Adult Care

Food

Program

Note: The figures are based in part on preliminary data 

Service as of May 2002 and are subject to change. To

food assistance programs not shown in table.

WIC

All programs 

Program

In f

pro

Perc

0

20

40

60

80

Average monthly participation (milli

Average benefit per person (dollars/

Total expenditures (billions) 

Average monthly participation (thou

Total expenditures (billions) 

Average daily participation (millions

Total expenditures (billions) 

Average daily participation (millions

Total expenditures (billions) 

Meals served in:

• child care centers (millions) 

• family child care homes (mill

• adult day care centers (millio

Total expenditures (billions) 

Total expenditures (billions) 
that participates in the program. During the

first half of fiscal 2002: 

 An average 8.1 million children participated in the program each schoolday, or

about 21 percent of all children attending

a participating school or institution. 

 Spending for the program totaled $0.9 billion, almost 7 percent more than in the

same period the previous year. 

 More than 836 million breakfasts were

served, or 5 percent more than in the first

half of fiscal 2001.

 Almost three-quarters (74 percent) of these

breakfasts were provided free to students,

and another 9 percent were provided at a

reduced price. 

 About 68 percent of the breakfasts served

in the program received “severe need”

reimbursements (schools may qualify for

these higher “severe need” reimbursements if a specified share of their lunches

are served free or at reduced price.)

Child and Adult Care Food 

Program Spending Is Up 

The Child and Adult Care Food Program subsidizes healthy meals and snacks in participating child care centers and homes and adult

day care facilities. The providers of care are

reimbursed for each type of qualifying meal

(breakfast, lunch/supper, or snack) they serve.

During the first half of fiscal 2002: 

 The Child and Adult Care Food Program

continued to expand as expenditures for

the program increased by almost 6 percent from the first half of the previous year. 

 Almost 865 million meals were served, an

increase of 2 percent from the first half of

fiscal 2001. 

 About 58 percent of all meals served were

in child care centers, 40 percent were in

family child care homes, and 2 percent

were in adult care centers.

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Family child care homes in the CACFP served 40 

percent of all meals in first half of fiscal 2002

Adult care, 2%

Child care centers

Family child 

care homes

40%

58%

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 Food stamp eligibility for legal immigrants

residing in the United States for at least 5

years is restored (effective April 2003).

 All legal immigrant children, regardless of

date of entry to the United States, are eligible to apply for the program (effective

October 2003). 

 The standard deduction is modified to

allow a greater deduction (resulting in higher benefits) for many larger households. 

 Provisions to simplify and streamline the

program are established.

Research Update: The Child 

and Adult Care Food Program

The Child and Adult Care Food Program

(CACFP) is the Nation’s fourth largest food

assistance program in terms of expenditures.

CACFP is also one of the fastest growing programs, with expenditures more than doubling

since fiscal 1990. While not as well known as

USDA’s other major food assistance programs,

CACFP has an important role in improving the

quality of day care and making it more affordable for many low-income families. The Food

and Nutrition Service (FNS), which administers USDA’s food assistance programs, currently is developing its 2004 reauthorization

proposal for CACFP. 

CACFP provides healthy meals and snacks to

eligible children and adults who are enrolled

in participating child care centers, family child

care homes, and adult day care centers. To

participate in the CACFP, family child care

homes must be sponsored by a public or private nonprofit organization that has an agreement with a State CACFP agency to administer the program at the local level. CACFP

helps pay for meals and snacks served in family child care homes that sign up to be part of

the program. The program reimburses care

providers at fixed rates for each type of meal

they serve that meets CACFP standards.

When CACFP was first established in 1968,

participation was limited to center-based child

care in areas with poor economic conditions.

When family child care homes first became

eligible in 1976, reimbursement levels were

based on the family income of each child participating in the program. In 1978, the means

test for family child care homes was replaced

with a single set of meal reimbursement rates

for all participants. As the family child care

homes component of the program expanded,

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Note

cont
 Tiering reduced the number of homes participating in the program. The effect of tiering was to greatly reduce the financial reasons for Tier 2 providers (who are now

reimbursed at lower rates) to participate in

the program. 

 Despite the decrease in homes participating in the program, the total number of

children in CACFP homes changed relatively little. 

 Tiering did not cause a drop in the number

or nutritional quality of meals and snacks

offered to children in Tier 2 homes.

 Despite increasing the duties of CACFP

sponsors, tiering did not lead to a major

decline in the number of sponsors. 

 

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THE U.S. DEPARTMENT OF AGRICULTURE IS AN EQUAL 

Economic Res

U.S. Departme

www.ers.usd

Additional Inform

Information on food assistance-related research can 

nutrition assistance briefing room at www.ers.usda.

Information on USDA’s food assistance programs ca

Service website at www.fns.usda.gov/fns. For more 

Victor Oliveira at victoro@ers.usda.gov.

CACFP meal reimbursements by participant 

income, 1995

11%

10%

Income > 185% 

of poverty

79%

Income 0 -130% of poverty

Income131-185%

of poverty