Comptroller Brooke E. Lierman, in a hearing testimony today before the House Appropriations Committee and the Senate Budget and Taxation Committee, called for the state to fund $125 million in SNAP Benefits in November for 680,000 Maryland recipients, including children and seniors.  

 

“We know that fully funding SNAP benefits in the month of November will cost about $125 million. I recognize that over the next three years, our state and its residents will be tested time and time again, and we as a state will simply not be able to make up for the gaps from federal funding cuts,” Comptroller Lierman said. “From Medicaid to housing benefits to grant funding to disaster relief – the needs will be never-ending, and there will be a case to be made for each cut. Nonetheless, because of its immediate impact on our most vulnerable residents and businesses at a time when both are already severely strained and recognizing the cascading impact of these cuts on Maryland’s economy, I do hope that our state is able to extend SNAP benefits for November.” 

 

Additionally, Comptroller Lierman said the state could take legal action to recoup the funding from the federal government when the shutdown ends. 

 

“Even if we could not, this is money well spent — on families, on seniors, and on the local businesses that are depending on us,” Comptroller Lierman said.  

 

During her testimony on the program’s impact on Maryland’s economy, Comptroller Lierman talked about how economic research shows that SNAP delivers one of the highest short-term economic multipliers of any federal program. “Every SNAP dollar is spent nearly immediately, generating additional economic activity as it circulates through our communities, supporting jobs, businesses, and tax revenues” said Comptroller Lierman. “When SNAP benefits are cut, economically harmful ripple effects inevitably follow. “ 

 

According to a 2019 Economic Research Service Report, the GDP multiplier for SNAP is 1.5. This means that for every $1 billion in SNAP benefits, the GDP increases by $1.5 billion.  

 

“So, if we were estimating what it meant for Maryland, since our GDP is around $1.2 billion per year, and SNAP is $125 million, the effect is over $187 million, “Comptroller Lierman said. “This spending supports over 13,000 jobs and generates $32 million in income for farmers. It’s a powerful return that strengthens both our communities and our economy.” 

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The business impact of SNAP cuts would be immediate and severe:?

 

• Over 3,800 Maryland grocery stores and food retailers currently accept SNAP benefits. 

• According to the National Grocers Association, SNAP supports 31,600 jobs and $1.6 billion in direct wages in our retail sector (nationally).? 

• This economic activity generates approximately $289 million in state tax revenue and $333 million in federal tax revenue (nationally).? 

 

SNAP benefits flow directly into local businesses—grocery stores, farmers markets, and food retailers across Maryland. When benefits are reduced, these businesses experience immediate sales losses and reduced economic activity. According to Stephanie Johnson of the National Grocers Association, some stores in low-income neighborhoods have more than 50 percent SNAP sales. For smaller retailers operating on tight margins, this money can mean the difference between staying open and closing their doors; between maintaining their workforce and making layoffs.? 

 

Maryland’s highest-need areas are particularly reliant on the economic benefits of SNAP. For example, Allegany County, where more than 20% of households rely on SNAP benefits, has a total of 60 SNAP retailers to serve the county’s 15,523 SNAP recipients. Many of these retailers represent significant employers and points of food access for a county that already struggles with economic and food insecurity. Even families who are not reliant on SNAP benefits are likely to see reduced food access and employment as a result.? 

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This problem is not isolated to rural Maryland. SNAP serves Maryland’s highest-need areas, and families and retailers in those areas all depend on SNAP’s revenue. The Comptroller’s Office’s Bureau of Revenue Estimates found that 25% of Maryland SNAP recipients live in high-poverty areas. Suddenly removing SNAP revenues from already-struggling neighborhoods will have cascading consequences that could drive many of these communities further into poverty. 

 

“Maryland is in a unique situation. SNAP dollars go directly from the federal government to our EBT provider, Conduent, for loading onto EBT cards” Comptroller Lierman continued. “Different families receive them at different times during the month – not everyone is paid on the first of the month. In Maryland, because of the senior SNAP program, Maryland also has the ability to add money to EBT cards through its vendor. Most other states cannot do this. Therefore, should Maryland choose to fund SNAP for the month of November, it could transfer the funds to the vendor. Indeed, it will already be transferring the required $50/month for those aged 60 and up.” 

 

 Comptroller Lierman’s testimony can be viewed at this link.