USDA announces shift to all-electronic food stamps

Agriculture Secretary Ann Veneman Thursday announced that all food stamps would be delivered through the electronic benefit transfer system by September 2004.

Conservative critics have often criticized fraud in the food stamp program. But USDA officials and anti-hunger activists have said that the electronic benefit system has contributed greatly to reducing fraud in the program, which is estimated to pay out $20 billion in benefits in 2003.

A USDA Food and Nutrition Service spokeswoman said the value of food stamps "diverted" to other uses was $395 million per year between 1999 and 2002, less than two thirds of the $660 million diverted per year between 1996 and 1998.