Pennsylvania Treasurer Stacy Garrity, running against Josh Shapiro for Governor, believes loans can keep SNAP benefits afloat amid government shutdown. They come at a serious cost.
Just a day after Gov. Josh Shapiro filed a lawsuit against President Donald Trump’s administration for freezing Supplemental Nutrition Assistance Program (SNAP) benefits amid the ongoing federal government shutdown, GOP gubernatorial candidate and Pennsylvania Treasurer Stacy Garrity is attempting to up the ante.
“ I sent a letter to Governor Shapiro proposing that the Treasury issue a loan from the short term investment pool to ensure SNAP funding for the month of November,” Garrity told reporters inside her office on Wednesday.
However it comes with a catch.
Pennsylvania receives over $366 million per month from the federal government to cover SNAP benefits. Garrity is proposing that the Treasurer’s office float a loan, with a 4.5% interest rate, to the Pennsylvania Department of Human Services (DHS) to cover the federal government’s missing SNAP benefits.
The US Department of Agriculture, which oversees the SNAP program, stated in a memo that states cannot provide lost SNAP funding and expect to be reimbursed.
“States are responsible for determining household benefits, and the movement of dollars through to the processors and ultimately the retailers. There is no provision or allowance under current law for States to cover the cost of benefits and be reimbursed,” the memo read.
SNAP benefits for close to 2 million Pennsylvanians are set to freeze Nov. 1 because the Trump administration is refusing to release contingency funds that’ll keep the program operating amid the shutdown. An overwhelming majority of those recipients across the country are children, older adults, or those living with disabilities according to the USDA.
Rosie Lapowsky, a spokesperson with Shapiro’s office, explained why Garrity’s move is a non-starter.
“This proposal is not workable because as Treasurer Garrity herself notes, a STIP requires future anticipated cash flows, but the USDA has said publicly that states will not be reimbursed for any funds spent covering the cost of benefits. Governor Shapiro will not jeopardize the Commonwealth’s fiscal standing because Republicans in Congress cannot pass a budget,” Lapowsky said in a statement.
Garrity, who is the Republican-backed candidate challenging Shapiro in next year’s election, rejected potential criticisms that she is playing politics with the impending freeze in SNAP benefits.
“I think I have a responsibility to help Pennsylvanians,” Garrity said. “If I was playing politics, I’d probably sit back and let everybody continue to fight, but I think that we should always put Pennsylvanians before politics and I don’t know why we all couldn’t work together and find a solution.”
