Report: Food Stamps Funneling Money to Businesses

The Government Accountability Institute issued a September 2012 report in which they uncover that "only three corporations have cornered the market for providing SNAP services [food stamps] to the needy and destitute."

According to the executive summary, the report demonstrates:

Three companies – J.P. Morgan EFS, Affiliated Computer Services, and eFunds –provide EBT services for 49 states and 3 US territories.

Since 2004, 18 of 24 states who contract with J.P. Morgan to provide welfare benefits have contracted to pay $560,492,596.02. New York alone has a seven-year contract worth $126,394,917.

Projected average food stamp spending post-recession will be 175 percent greater than prerecession average spending, from $28 billion to $77 billion.

The report also discusses insufficient policing of food stamp fraud.

The Government Accountability Institute website says that its "mission is to investigate and expose crony capitalism, misuse of taxpayer monies, and other governmental corruption or malfeasance."