SELECT COMMITTEE ON NUTRITION AND HUMAN NEEDS

GEORGE MCGOVERN, South Dakota, Chairman

HERMAN E. TALMADGE, Georgia
PHILIP A. HART, Michigan
WALTER F. MONDALE, Minnesota
EDWARD M. KENNEDY, Massachusetts
GAYLORD NELSON, Wisconsin
ALAN CRANSTON, California

HUBERT H. HUMPHREY, Minnesota

CHARLES H. PERCY, Illinois
ROBERT DOLE, Kansas

HENRY BELLMON, Oklahoma

RICHARD S. SCHWEIKER, Pennsylvania
ROBERT TAFT, JR., Ohio

MARK O. HATFIELD, Oregon

ROBERT M. SHRUM, Staff Director
ALAN STONE, General Counsel

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CONTENTS

Address by Hon. William E. Simon, Secretary of the Treasury, before the

32d Annual Junior Achievers Conference, Bloomington, Ind., August

12, 1975.

Letter from Senator McGovern to Secretary Simon___

Statement of Hon. William E. Simon, Secretary of the Treasury, submitted

to the Senate Select Committee on Nutrition and Human Needs,

October 21, 1975__.

Transfer payment programs in the Federal budget..

Origins and objectives of the food stamp program.

Growth in program cost and participation.

Future program expansion...

Problems of abuse.

Means of discovering fraud.

USDA audit reports.

Quality control and food stamp administration_.

Major problems of the current program_.

Determination of resources_

Determination of gross and net income..

The temporarily unemployed___

The need for reform..

Food stamp reform__

Longer term reform...

Exhibits, tables, and charts.

Appendix A.-Excerpts from selected fraud cases:

I. Retail fraud....

II. Trafficking in USDA food stamp coupons.

III. Trafficking in authorizations to purchase food coupons..

IV. Fraudulent acquisition of food stamps (individual).

V. Fraud and irregularities in the issuance of emergency

food stamps----

VI. Unauthorized use of food coupons_.

VII. Counterfeiting..

VIII. Postal theft.

Appendix B.-Audit reports of food stamp program departments...

Committee summary and analysis of Secretary Simon's statement:

Summary.

Analysis:

I. Growth of the food stamp program..

II. Eligibility criteria.

A. Income..

100

IV. Nutritional impact of the food stamp program-

106

V. The food stamp program as a percentage of the Federal

budget.

107

The role of the food stamp program, by Richard P. Nathan

109

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