Courts Order Trump to Keep Paying Food Stamps Amid Shutdown

Manuel

Summary:

The federal government sends SNAP funds to states to administer to eligible residents, who receive the money each month via a benefits card they can use to pay for groceries, similar to a bank debit card.

Two federal judges ruled the Trump administration’s decision to suspend food-aid benefits for tens of millions of Americans during the government shutdown is likely unlawful and that US officials must use contingency funding to at least partially keep the program operational.

US District Judge John McConnell in Rhode Island on Friday announced in court that he would order the US Department of Agriculture to distribute a pool of emergency funding “as soon as possible” for November benefits. He also urged the administration to explore tapping other sources of federal dollars to ensure the program is fully funded.

“It’s clear that when compared to the millions of people that will go without funds for food, versus the agency’s desire not to use contingency funds in case there’s a hurricane need, the balances of those equities clearly goes on the side of ensuring that people are fed,” McConnell said.

Minutes earlier in Boston, US District Judge Indira Talwani issued a written ruling that rejected the administration’s stance that it is legally barred from tapping into billions of dollars in alternative funding sources to keep the program running during the budget impasse in Congress.

Both cases involve lawsuits seeking to keep federal dollars flowing to the Supplemental Nutrition Assistance Program, or SNAP. The agriculture department, which administers the program, had said it would halt benefits starting in November until Congress approves a new spending deal.

More than 42 million people in 22 million households nationwide receive SNAP benefits, according to government data. Advocates argued in court that a suspension of benefits would exacerbate food insecurity across the country, on top of the strain already facing the millions of federal workers who haven’t received paychecks since the shutdown began on Oct. 1.

McConnell said it was “very clear” that it was unlawful for the government to refuse to use the contingency funds, which had been earmarked during the first Trump administration to be tapped if there was a shutdown.

The contingency fund has $5.25 billion, according to the Justice Department. The program costs $8 billion to $9 billion a month. States fund additional administrative costs.

Another Funding Source

In ordering the use of the backup funds, McConnell also said the government must determine if it can supplement that limited pool of money with another fund that includes customs receipts that Democratic officials have said contains more than $23 billion.

If the government declined to tap those other funds, the judge said it is required to determine how to allocate partial payments.

Talwani stopped short of formally ordering the department to fully fund program benefits for November. Instead, she gave US officials until Nov. 3 to file a report on whether they would authorize at least partially funding the program using a contingency fund now that they had her legal conclusions.

Talwani also ordered a timeline for delivering the benefits and asked whether the government would use other sources to complete payouts.

McConnell’s order came in a case brought by nonprofits and Democratic-led cities, while Talwani’s came in a lawsuit brought by more than two dozen Democratic-led states and the District of Columbia.

Get Government Open

Trump economic adviser Kevin Hassett said the Trump administration disagreed with the rulings that will force the government to tap the contingency funds before the shutdown is resolved.

“We don’t have our emergency funds in case we have a hurricane or we have an emergency, a food emergency,” Hassett said in remarks on Fox News. “And so we have got to get the government open.”

The Agriculture Department did not immediately respond to a request for comment. A Justice Department spokesperson declined to comment.

Although Republicans control both chambers of Congress, they need support from several Democrats to clear procedural hurdles in the Senate and pass a new spending bill. Most Senate Democrats have been united in pressing for a budget deal to include a renewal of expiring health insurance subsidies.

Skye Perryman, president of Democracy Forward, which represented the coalition suing in Rhode Island, said in a statement that McConnell’s “ruling protects millions of families, seniors and veterans from being used as leverage in a political fight and upholds the principle that no one in America should go hungry.”

Massachusetts Attorney General Andrea Joy Campbell said in a statement that although Talwani’s order “marks a much-needed step in the right direction, our residents will still feel the devastating impacts of the federal government’s disregard for their health and wellbeing as they wait for the court’s order to be implemented.”

Skeptical Judge

During arguments on Thursday, Talwani was skeptical of the government’s stance that officials are legally barred from using billions of dollars in available contingency funds.

Congress was trying “to protect the American people,” Talwani said of the additional dollars that lawmakers previously approved to sit in reserve. “What Congress was trying to do is, if you don’t have enough money, we’ll tighten our belt,” she said, not jeopardize people’s wellbeing because of a “political game.”

The administration was able to fully provide October benefits before the shutdown began at the start of the new fiscal year on Oct. 1. As the budget impasse dragged on, however, the department told states to stop taking steps to make the benefits available for November.

The lawsuits center on SNAP contingency money that Congress approved long before the shutdown started. Congress also designated money for child nutrition programs from the proceeds of import tariffs that the states say also could be used. The administration recently transferred $300 million from that fund to keep the Women, Infants, and Children (WIC) program running during the shutdown.

The Agriculture Department has maintained that it can only use the contingency money to “supplement” existing funds that Congress approved to pay for SNAP benefits in a specific fiscal year. The reserve money isn’t available now that there’s no longer funds left from the previous fiscal year, the government said.

The challengers argued the government must exhaust available funding sources before halting payments for a program that Congress deemed mandatory. They said the government’s stance conflicted with guidance that the department published before the shutdown stating that the reserve funds would be available to keep the program running.

The cases are Massachusetts v. Department of Agriculture, 25-cv-13165, US District Court, District of Massachusetts (Boston) and Rhode Island State Council of Churches v. Rollins, 25-cv-569, US District Court, District of Rhode Island (Providence).

Source: Bloomberg

News, historical chart data, and fundamental company data are provided by FastBull Ltd.

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.