The Food Stamp Program traces its earliest origins back to the Food Stamp Plan, which helped needy families in the Depression era. The modern program began as a pilot project in 1961 and was authorized as a permanent program in 1964. Expansion of the program occurred most dramatically after 1974, when Congress required all States to offer food stamps to low-income households. The Food Stamp Act of 1977 made significant changes in program regulations, tightening eligibility requirements and administration, and removing the requirement that food stamps be purchased by participants. Program growth has continued since then, reaching an all-time high of almost 28 million in March of 1994 before declining to the current participation level of about 22 million.
Participation generally peaks in periods of high unemployment, inflation and recession.
In Puerto Rico, the Northern Marianas Islands, and American Samoa, the Food Stamp Program was replaced by a block grant program. The territories now provide cash and coupons to participants rather than food stamps or food distribution. The grant can also be used for administrative expenses or special projects related to food production and distribution. USDA conducted several such projects to study the cash-out concept. Because the Food Stamp Program was designed as a nutrition assistance program, however, many people involved with the program were concerned that cash-out would not ensure that food stamp benefits will be used to buy food.