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March 18, 2010
About 360,000 people receiving food assistance will be able to fill their grocery carts even more - and have a ripple effect that could put an additional $360 million in Michigan communities over the next year - thanks to additional federal funding starting this week, Michigan Department of Human Services Director Ismael Ahmed announced today.
"We're talking about another kind of spring green," Ahmed said. "The kind that helps individuals and families buy healthy food and, in turn, stimulates the local economy by increasing demand and creating jobs."
The increase comes starting this month when DHS provides $1 in federal Low Income Home Energy Assistance Program (LIHEAP) funds, which help people pay for heat, to the 848,000 Michigan households receiving food assistance. More than 1.7 million people in Michigan receive food assistance benefits.
Under federal Supplemental Nutrition Assistance Program (formerly the federal Food Stamp Program) rules, DHS can use the highest deduction for utility costs when calculating food benefits for any household that receives LIHEAP dollars, explained Barbara Anders, DHS' financial and quality service deputy director. This, in turn, means they may qualify for more food assistance.
"We're turning this $1 in LIHEAP funds into $16 million in additional food assistance each month for about 180,000 households," Anders said. That equates to nearly $200 million in additional food assistance each year. "Each of those households could see an average of $88 more per month they can spend at the grocery store and feed themselves and their families."
According to the U.S. Department of Agriculture, every $5 of food benefits generates $9.20 in economic activity in communities. That means that the additional $16 million in direct food benefits put into communities every month could generate an estimated $360 million in economic activity in a year's time.
Retailers should see that impact as customers spend their increased food assistance benefits.
Meijer, Inc., President Mark A. Murray praised the news at an event at a Meijer store on the West side of Lansing.
"As a retailer, we have seen firsthand how a tough economy has affected our customers' ability to purchase food," Murray said. "I am pleased that many people in need will now have the ability to provide more fresh and healthy food choices for their families."
Food assistance clients will be notified by mail if their benefit amount increases. They will begin to see the increased benefits as early as this week.
Jane Marshall, Food Bank Council of Michigan executive director, added: "We are glad to see this increase in food assistance benefits for Michigan families. The timing is perfect. It is far better when people are able to buy their own groceries from the local grocery store than to fall into an emergency situation and need to use a food bank."
For more information about DHS, please visit www.michigan.gov/dhs. Follow DHS on Twitter @MichiganDHS or become a fan at www.facebook.com/MichiganDHS.