Food stamps completely converted to debit cards

WASHINGTON — The Bush administration announced Tuesday that it had completed one of the biggest changes in the history of the food stamp program, replacing paper coupons with electronic benefits and debit cards.

At the same time, the administration said it wanted to rename the program because the term "food stamps" has become an anachronism. It is also inviting the public to suggest how to rechristen a program that became a permanent part of the government during the vast overhaul of government assistance and anti-poverty programs by President Lyndon B. Johnson, known as the Great Society.

The shift to electronic benefits is a sign of the digital age and has the potential to reduce the stigma of food stamps for many recipients.

Electronic benefits have replaced food stamp coupons in all states, and more than half the states now issue electronic benefits in place of welfare checks as well. In addition, some states are using debit cards for Medicaid and the Special Supplemental Nutrition Program for Women, Infants, and Children.

Agriculture Secretary Ann M. Veneman declared an end to the "paper era" of the food stamp program at a conference of state officials here on Tuesday.

"This month, the food stamp program arrived in the 21st century," she said. "States are destroying the paper coupons, and we don't anticipate that we'll ever have to print them again."

Food stamp recipients generally like debit cards because they avoid the stigma that can be associated with paper coupons. Grocers like the new technology because they are paid faster, often within 48 hours; cashiers do not have to handle vouchers; and there are no coupons to sort, count and bundle.

State officials said they preferred the electronic system because it was simpler to administer and helped reduce fraud and abuse by eliminating the paper coupons that can be lost, sold or stolen. Over the years, food stamps have been sold on the black market and used as a form of currency to buy narcotics and other contraband.

California was the last state to complete the shift. Christine Dunham of the state's Health and Human Services Agency said that Los Angeles County, with 40 percent of the state's food stamp recipients, made the change to electronic benefits in March, and six other counties switched over this month.

More than 23 million people receive food stamp benefits each month, but nationwide only three of five eligible people are participating. Unlike most other assistance programs, food stamps are available to most low-income households with few assets regardless of age, disability or family structure.