Record number of Americans get government help

A record number of Americans are helped by government safety net.A record number of Americans are receiving food stamps. By Tami Luhby, senior writer


NEW YORK (CNNMoney) -- One in six Americans is receiving help from the government, just as fiscal austerity threatens to reduce some of that aid.

Soaring unemployment during The Great Recession has driven tens of millions of people to the dole. Enrollment in Medicaid and food stamp programs are at record highs, while unemployment insurance rolls remain at elevated levels. Many people depend on more than one program.

But as President Obama and lawmakers fiercely debate budget cuts to reduce the country's $14 trillion-plus debt, some of those lifelines could be at risk. House Republicans are looking to revamp and slash funding for many programs, including Medicaid and food stamps.

House budget committee leader Paul Ryan proposed a budget last week that, among other things, would convert Medicaid and food stamps into block grants -- a move that some say would reduce benefits for the needy. And on Wednesday, President Obama is expected to push back on Ryan's proposals.

If House Republican plans are approved, millions of people who rely on one or more of those programs could lose access to vital services.

What's at stake

Medicaid: The largest of all safety net programs, Medicaid enrollment for the first time ever topped 50 million in June 2010, the most recent figures available. That's up from 42.3 million in June 2007.

The number of people on Medicaid ballooned as unemployed soared. Millions of Americans not only lost their company-sponsored health insurance coverage, but they also saw their incomes evaporate, leaving them eligible for the government health care program, said Robin Rudowitz, associate director at the Kaiser Commission on Medicaid and the Uninsured.

Without Medicaid, more people would go without medical care or would wind up in hospital emergency rooms, she said.

Food stamps: The number of people in the Supplemental Nutrition Assistance Program, known as food stamps, hit a record 44.2 million in January. That's up 4.7 million from the prior year.

Currently, one in seven Americans receive food stamps, the highest share of the population ever to do so, according to the Food Research and Action Center.

Still, one in three people who are eligible for food stamps is not receiving them.

Unemployment insurance: More than 8.4 million people are collecting either state or federal jobless benefits. While enrollment is down from its peak of 12 million early last year, it is still more than double the number it was when the recession began in late 2007.

Some 3.9 million exhausted their extended unemployment benefits last year, said George Wentworth, senior staff attorney at the National Employment Law Project. But the number of initial jobless claims has also declined as the economy improves.

The swollen rolls in these and other safety net programs won't last forever, say advocates for the poor. Once the economy recovers, they will shrink.

"When more people have jobs, enrollment in these programs will start coming down," said LaDonna Pavetti, vice president for family income support at the Center on Budget and Policy Priorities. To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 32,627.97 -234.33 -0.71%
Nasdaq 13,215.24 99.07 0.76%
S&P 500 3,913.10 -2.36 -0.06%
Treasuries 1.73 0.00 0.12%
Data as of 6:29am ET
Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET
Sponsors

Sections

Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More

Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.