From April 1 strict work requirements on people who use food stamps will be enacted
- People without a disability or children must work 20 hours per week to qualify for the Supplemental Nutrition Assistance Program (SNAP, previously known as known as food stamps)
- White House projects 700,000 people would lose SNAP eligibility
- Brookings Institution projects the number of people losing assistance would be 1.3 million to 1.5 million (projection prior to the coronavirus outbeak)
Why is this important for markets to take into consideration?
- It means people will have to choose working in service (public-facing) in order to subsist, or stay home to comply with COVID-19 advice and lose assistance to buy food.
The risk is further contagion in the US and therefore further market contagion.
With any luck the policy implementation will be postponed - something to watch for.
