Mandatory Spending

Function 600 - Income Security

Convert Multiple Assistance Programs for Lower-Income People Into Smaller Block Grants to States

CBO periodically issues a compendium of policy options (called Options for Reducing the Deficit) covering a broad range of issues, as well as separate reports that include options for changing federal tax and spending policies in particular areas. This option appears in one of those publications. The options are derived from many sources and reflect a range of possibilities. For each option, CBO presents an estimate of its effects on the budget but makes no recommendations. Inclusion or exclusion of any particular option does not imply an endorsement or rejection by CBO.

Billions of dollars 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015-2019 2015-2024
Change in Mandatory Outlays                        
  SNAP 0 -37 -35 -32 -31 -29 -28 -26 -25 -24 -134 -266
  SSI 0 -9 -5 * -5 -6 -6 -12 -7 -2 -19 -51
  Child nutrition programs 0 -6 -7 -7 -8 -9 -9 -10 -11 -12 -28 -79
    Total 0 -52 -46 -40 -44 -43 -43 -48 -43 -38 -182 -397
Change in Discretionary Outlays for SSI 0 -5 -5 -5 -5 -5 -5 -5 -6 -6 -19 -46

Notes: This option would take effect in October 2015. Estimates are relative to CBO’s August 2014 projections.

SNAP = Supplemental Nutrition Assistance Program; SSI = Supplemental Security Income; * = between -$500 million and zero.

This option would convert the Supplemental Nutrition Assistance Program, the Supplemental Security Income program, and the child nutrition programs into separate, smaller block grants to the states beginning in fiscal year 2016. Each of the three block grants would provide a set amount of funding to states each year, and states would be allowed to make significant changes to the structure of the programs. The annual funding provided would equal federal outlays for each program in fiscal year 2007 increased to account for inflation (specifically, using the consumer price index for all urban consumers) since then.