Emergency Memo - Puerto Rico NAP Study

United States
Department of
Agriculture
Food and
Nutrition
Service

May 21, 2014

3101 Park
Center Drive
Alexandria, VA
22302-1500

TO:

Julie Wise, OMB Desk Officer
Office of Information and Regulatory Affairs
Office of Management and Budget

THROUGH: Ruth Brown, Desk Officer
United States Department of Agriculture
Office of Chief Information Office
FROM:

Lynnette Thomas
Branch Chief, Planning and Regulatory Affairs Office
Food and Nutrition Service

SUBJECT: Request for Emergency Clearance
The Nutrition Assistance Program (NAP) is a critical Federal Government
assistance program provided to low-income residents of Puerto Rico. Since July 1982,
Puerto Rico has operated NAP from Federal funds received as a block grant. Under the
block grant, which allowed Puerto Rico considerable flexibility in designing NAP,
Puerto Rico replaced food coupons with 100-percent cash benefits, simplified
administration, reduced funding levels, and placed a cap on annual funding. In late 2001,
Puerto Rico developed an electronic benefit transfer (EBT) system and mandated that 75
percent of a household’s monthly benefit be restricted to the EBT system for purchasing
eligible food items at certified retailers. The remaining 25 percent of the monthly benefit
may be issued in the form of cash to allow participants with limited access to certified
retailers a way to purchase food.
In early 2014, Congress reauthorized the Food and Nutrition Act of 2008 in the
Agricultural Act of 2014 (P.L. 113-79), commonly known as the 2014 Farm Bill, which
included a provision for the gradual discontinuation of the cash portion of the NAP
benefit until, by FY 2021, no benefits in the form of cash will be issued (Section 4025,
see Attachment E). The legislation also required a study of NAP cash benefits in Puerto
Rico, including the history and purpose of the cash portion, barriers to redeeming the
non-cash portion, and usage of cash benefits for the purchase of non-food items.
Additionally, it also required an assessment of the potential adverse effects of
discontinuing the cash portion for both participants and retailers, and allows the
Secretary of Agriculture to exempt participants or categories of participants if the review
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finds that the discontinuation of cash benefits is likely to have significant adverse effects.
This study performs the required assessment of the cash portion of benefits received under
NAP in Puerto Rico.
The Act requires that the study report be delivered to Congress in August 2015. To
conduct the study and meet the statutory requirements and deadline, we are requesting
emergency clearance to begin the data collection in October 2014.

If you have any questions or require any additional information, please contact me at
[email protected].

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