Anti-hunger groups said it was critical for the federal and state government to take quick action in response to the increasing costs for energy and food before emergency food programs become overwhelmed.

The Hunger Action Network of NYS called for increased federal and state funds for the Home Energy Assistance Program and to supplement the federal food stamp program. Congress is presently considering a 20% increase in food stamp benefits as part of a possible additional economic stimulus package.

Hunger Action applauded the recent announcement by NYS that it would increase food stamp benefits through a slight adjustment in HEAP (Home Energy Assistance Program). The changes will mean an average increase of $118 in monthly food stamp benefits to nearly 115,000 low-income households statewide.

“The demand for emergency food is already pushing food pantries and soup kitchens to their limits,” noted Mark Dunlea Executive Director of Hunger Action Network. “Rising food costs is shrinking the food budgets both for low-income New Yorkers and the emergency food programs that help them. The skyrocketing costs for heat will overwhelm the budget of many families this winter, forcing them to choose between going cold or going hungry. Action is needed now to respond to this growing crisis,” Dunlea added.

The NYC Coalition Against Hunger recently reported that the number of meals served by City-supported soup kitchens and food pantries was nine percent higher in spring of 2008 than a year before. This was based on data from the City’s Human Resources Administration. Dunlea noted that the skyrocketing cost of energy and food appear to be long term trends rather than merely a short term crisis.

It is possible that the House of Representatives will pass a second economic stimulus package before their August recess, though Senate action is unlikely before the fall. The initial Senate package had included a 20% increase in food stamp benefits. The House is considering funding for temporary food stamp benefit boosts, infrastructure projects, Low Income Home Energy Assistance Program (LIHEAP), and disaster relief. 

“Food Stamp benefits, which average $1 per person per meal, have become even more grossly inadequate with the recent spike in food prices. A substantial temporary increase in Food Stamp benefits (along with increased support so the delivery system can meet the growing demand) during this downturn will make an immediate difference in the ability of families to put food on the table, providing obvious help to them as well as needed  income for food stores.. The Food Stamp Program is the strongest bulwark against hunger – it needs additional support now. It is also essential that the Women, Infants and Children (WIC) nutrition program receives additional funds, to respond both to the higher cost of food and the rising caseload resulting from families’ loss of earnings during the recession.,” said Deb Catozzi, Hunger Action’s Associate Director.

The higher cost of food is falling especially hard on low income families – the people already stretching limited budgets to the utmost. In a crunch, for many households food costs are the main area where they choose to cut back on spending, albeit at a price to their health. Bills for rent or mortgage, child care and transportation to work must be paid, as well as heating costs and the water bill. Cutting back on groceries, as painful as it may be, can seem like the only choice to make.

According to the Department of Labor, the cost of food at home rose 6.1 percent from June 2007 – June 2008. Some food items experienced a double-digit increase in price during the same time period, including: cheese increased by 14.7 percent; eggs increased by 23.2 percent; and bread increased by 15.9 percent. In just one month, prices in four of the major six grocery categories increased in June 2008, including a 2.8 percent leap in the cost of fruits and vegetables.

Hunger Action has been pushing the State to increase welfare benefits, which have declined in value to less than 50% of the federal poverty level. The basic grant, which was last raised in 1990, is intended to supplement the food stamp program. If the state was to raise the basic grant in the form of a food supplement, it would not count as income for the federal food stamp program. Otherwise, every three dollar increase in income results in a $1 reduction in food stamp benefits.

Dunlea said that it was important for the state to provide funding for HEAP in addition to whatever the federal government finally provides. Several years ago the State Legislature agreed for the first time to provide $100 million in state funds for HEAP but then pulled the money back once the federal government took action. Hunger Action recently joined the state Assembly in calling for a $550 million supplement to the HEAP program, which would be partially funded through a windfall profit tax on oil companies. Some of the state revenues from the auctioning off of the carbon permits under the Regional Greenhouse Gas Initiative should also go to supplement HEAP and to help pay for a massive expansion of weatherization and energy retrofitting program to help reduce energy use and bills for New Yorkers.

“Home energy assistance will also put money into the economy quickly. Last year, 1.2 million households nationally had their gas or electricity shut off after the moratoria on shut-offs ended in the spring. It is likely to be much worse this year. Increased funding for HEAP will help families and elderly or disabled individuals to avoid these hardships. In addition, people are now doing without food and medicine because they fear the loss of heat or cooling is even more imminently life-threatening. With HEAP help, they will have more money left over to spend on other items,” said Dunlea.

The Assembly package includes legislation instituting a recapture and windfall profit tax provision on big oil companies with a prohibition on passing the tax on to consumers (A.11590). The revenues will go to a fund that supports energy savings measures for consumers as well as helping pay home heating bills this winter through the Home Energy Assistance Program. In addition, under the Assembly plan, the first $550 million generated from the windfall profit tax will be used to double the existing HEAP and enhance eligibility. Any additional funds will be redirected toward the newly-created New York Energy Reinvestment Account which fund energy efficiency and weatherization initiatives.