Nicole Belkin

Domestic Policy – Means Tested Programs

Means tested programs are one of two types of federal safety net programs, where

recipients of these benefits need to prove that their income is low enough to qualify for these free

benefits, which are usually meant to be temporary. These programs are in place to ensure that in

hard times when American’s suffer from unemployment, illness, or other factors resulting in

poverty, they are still able to maintain a minimum standard of living. Means tested programs

include programs such as SSI benefits, SNAP benefits (food stamps), housing assistance, and

other assistance such as tax credits and money for school. According to the website for the

Congressional Budget Office, in 2012 the U.S. government spent $588 billion on means tested

programs and tax cuts.

The Supplemental Nutrition Assistance Program (SNAP, formerly food stamps) is a

program that provides money specifically for food on an electronic balance transfer (EBT) card.

In order to qualify for these benefits, people need to apply and show their financial need. They

may use their benefits anywhere that EBT cards are accepted, mostly limited to grocery stores, as

well as 7/11 stores, and some gas stations and fast food restaurants, but can not be applied to

anything that is non-food. Taxable items such as vitamins, over the counter medication, pet food,

household supplies, and baby formula are not eligible.

Another way for people to get assistance through means tested programs is through

qualifying for certain tax refunds. The Earned Income Tax Credit (EITC) is a tax credit for

workers who earn a low to moderate income. It essentially reduces the amount of money they

have to pay in taxes, thus giving them a bigger refund. In order to qualify for the EITC, you must

either have a qualifying child or be between 25-65 years of age, and not be claimed as a
dependent by anyone else. Another tax credit is the Child Tax Credit (CTC), which will refund

qualifying parents up to $1000 per child under the age of 17. While these tax credits aren’t

programs that can help people on a daily, weekly, or monthly basis, they are very helpful for low

to moderate income families to get a little bit more of their taxed income back once a year.

I personally believe that means tested programs are a great way for our state and federal

governments to offer temporary assistance to people and families in need. Unfortunately many of

these programs, especially the SNAP benefits program, get abused by people. The money for

these programs comes from the tax dollars of the rest of the country, and when used temporarily

as intended I think it’s a great option to have. It has become harder to commit fraud, as the

government has increased it’s involvement in the process and is more thorough about checking

documentation from citizens requesting assistance, but fraud still happens. People lie about their

financial situation, housing situation, and supplemental income in order to gain or retain access

to these programs for extended periods of time. For the most part though, I believe that means

tested programs are a good way for people who really need financial assistance to get it.

Citations

"Growth in Means-Tested Programs and Tax Credits for Low-Income Households." www.CBO.gov. Last
modified February 11, 2013. Accessed March 29, 2019. https://www.cbo.gov/publication/43934.

"What Can SNAP Buy?" www.fns.usda.gov. Last modified November 17, 2017. Accessed March 29, 2019.
https://www.fns.usda.gov/snap/eligible-food-items.

"EITC, Earned Income Tax Credit, Questions and Answers." www.IRS.gov. Last modified March 29, 2019.
Accessed March 29, 2019. https://www.irs.gov/credits-deductions/individuals/
earned-income-tax-credit/eitc-earned-income-tax-credit-questions-and-answers.
"Ten Facts about the Child Tax Credit." www.IRS.gov. Last modified March 29, 2019. Accessed March
29, 2019. https://www.irs.gov/newsroom/ten-facts-about-the-child-tax-credit.