Key Takeaways:
- Nearly 42 million lower-income Americans rely on the Supplemental Nutrition Assistance Program (SNAP) for food assistance.
- A federal shutdown in October led to delayed SNAP payments, affecting many families who depend on the program.
- A nonprofit organization, GiveDirectly, partnered with Propel, an app used to manage electronic benefits transfers, to provide relief to affected families.
- Over 246,000 families received a $50 virtual gift card to help with grocery purchases.
- The collaboration raised $12 million and set a record for the largest disaster response in GiveDirectly’s history outside of COVID-19.
Introduction to the Crisis
Finances were already a concern for Jade Grant and her three children as the year drew to a close. With multiple birthdays and holidays approaching, the family’s budget was stretched thin. As a certified nursing assistant, Grant relied on SNAP to help feed her family, but when the federal shutdown began in October, she faced uncertainty about her benefits. Despite her initial confidence that the government would resolve the issue, Grant soon found herself struggling to make ends meet.
The Partnership Between GiveDirectly and Propel
GiveDirectly, a nonprofit organization, partnered with Propel, an app used by 5 million people to manage their electronic benefits transfers, to provide relief to families affected by the SNAP delay. The partnership allowed GiveDirectly to reach a large number of people in need, with over 246,000 families receiving a $50 virtual gift card to help with grocery purchases. The collaboration was the largest disaster response in GiveDirectly’s history outside of COVID-19, with $12 million raised and over 5,000 individual donors contributing.
The Impact on Families
The delayed SNAP payments had a significant impact on families who relied on the program. Dianna Tompkins, a gig worker and mother of two, entered "panic mode" when she missed her usual $976 deposit. She relied on her SNAP balance to feed her children and was forced to make difficult choices about how to allocate her limited resources. The $50 gift card from GiveDirectly was a "big help," but Tompkins expressed concern about the government’s ability to provide for its citizens. "It’s scary that the government can just decide to not feed so many people," she said.
The Long-Term Consequences
The delayed SNAP payments have had long-term consequences for many families. According to Propel CEO Jimmy Chen, the company’s research suggests that the freeze damaged many recipients’ confidence in the government. Even with SNAP funded through the next fiscal year, Chen said, many respondents are concerned about another shutdown. The delay also disrupted the financial balancing act that many families had in place, with some forced to put off payments for essential bills like electricity and car insurance.
The Response to the Crisis
GiveDirectly’s response to the crisis was swift and effective, with the organization raising $12 million and distributing $50 gift cards to over 246,000 families. The partnership with Propel allowed GiveDirectly to reach a large number of people in need, and the organization’s fast cash model provided a vital lifeline to families struggling to make ends meet. The response also highlighted the importance of cash assistance in times of crisis, with many recipients expressing gratitude for the flexibility and autonomy that the gift cards provided.
Conclusion
The delayed SNAP payments during the federal shutdown had a significant impact on families who rely on the program. The partnership between GiveDirectly and Propel provided a vital lifeline to many families, but the long-term consequences of the delay will be felt for some time. As the government continues to navigate the complexities of the shutdown, it is essential to consider the human impact of such events and to prioritize the needs of vulnerable populations. The response to the crisis highlights the importance of cash assistance and the need for effective partnerships between nonprofit organizations and government agencies to support those in need.