The Eliminate Auto Test Act (EAT Act) would protect families in need of food assistance from misguided means test by Gov. Snyder and MI GOP

Pontiac, MI - This week Rep. Gary Peters introduced the Eliminate Auto Test Act (the EAT Act) which will help the families that have been hit the hardest by the recession receive food assistance without punishing them for owning a vehicle. Right now nearly 50 million Americans are struggling with hunger, about 16 million of whom are children, and these families are often faced with difficult and unfair choices. Today however, due to recent actions by Governor Rick Snyder, when a family in Michigan applies for the Supplemental Nutrition Assistance Program (SNAP), families can now be deemed ineligible for owning a vehicle. And unlike 47 other states in America that allow for at least one car to be exempted, Snyder's policy for Michigan forces the unemployed to choose between their car and their food.

Already about one third of Detroiters do not have a vehicle, and with recent news that bus services around the greater Detroit area are being cut, Michiganders need to own a car to find and maintain a job now more than ever.

The EAT Act will simply eliminate vehicle ownership from any asset tests at the federal level.

“Almost a third of the people struggling with hunger in our country are children and that's why I've introduced this bill to help their parents put food on the table without having to give up their vehicle," said Rep. Gary Peters. "In areas like Detroit, where we already have unpredictable bus schedules and services are being cut, people need a car to find and keep their jobs. Eliminating this counterproductive barrier to helping Americans is common sense and I will continue working to pass this bill."

In addition to the 39 cosponsors of the bill, the EAT Act has earned the endorsement of organizations that are leading the fight against hunger like Forgotten Harvest and the Center for Civil Justice.

“We support the proposal that Congressman Peters introduced to assure that people facing hunger are not further harmed by owning a car. Based on our experience helping feed people facing dire need, we know that people in our community need personal vehicles to reach food, to reach jobs, and to meet other basic needs. As the public transportation systems in our urban and suburban communities are compromised and are lacking completely in most rural areas, we believe this proposal is sound and effective public policy and thank our elected officials for their leadership,” said Susan Goodell, President & CEO, Forgotten Harvest.

“Center for Civil Justice strongly supports efforts to modify federal law and regulations to exempt vehicles from asset tests for food assistance eligibility.  In challenging economic times more families are facing the need to apply for SNAP/FAP benefits to avoid hunger and food insecurity while they face unemployment, reduced work hours, or lower pay.  Unemployed or underemployed workers who are  searching for work or attending education and training programs to qualify for new jobs in the changing economy need reliable vehicles if they are to regain financial stability for their families.  With limited convenient public transportation, the need for dependable vehicles is critical.  Vehicle assets tests create more, unnecessary red tape and paperwork for needy families and clog the bureaucracy at a time when we should be streamlining state government and making programs more efficient.  The vehicle asset test pushes more people further into poverty, increases hunger, and prevents working families from getting back on their feet.,” Statement of Support from the Center for Civil Justice.

Background on the EAT Act:

Why the EAT Act is needed:

• Nearly 50 million Americans are facing hunger, 16 million of whom are children.  Five million households experiencing food insecurity include at least one senior.
   
• Current Federal SNAP policy subjects vehicles used for personal transportation and employment to a maximum “fair market value” limit of $4,650. Families with vehicles that exceed the limit are ineligible for SNAP.
   
• Already 47 States have recognized that this is a backward federal policy and have allowed SNAP applicants to have their first vehicle exempted from asset calculations.
   
• Recently, Governor Snyder passed legislation to move Michigan backward by subjecting a family's household vehicles to an asset test - this could result in families owning just one car being denied food assistance.
   
• Restricting vehicle ownership is counter-intuitive:  Vehicle ownership allows people to get to work so that they can transition off public assistance.
   
• Asset ownership has been shown to be one of the surest paths out of poverty, and discouraging savings and assets in federal programs only creates a perverse incentive that reinforces the cycle of poverty.  The SNAP program already excludes retirement and educational savings accounts, and should exclude vehicles as well.
   
• Relying on an outdated fair market value limit also incentivizes families to downgrade to smaller or older vehicles that are less reliable or unfit for their family needs.  This can jeopardize safety and create additional financial hardship.
   
• Many seniors may own their vehicles and be adversely affected by this policy.  Additionally, the newly unemployed are more likely to own cars that exceed the value limit and are harmed by policies that do not exclude vehicles from asset tests.

The EAT Act simply excludes vehicles from the asset limit, aligning federal statute with what states have already done. This will help break the cycle of poverty and get Americans back to work without punishing children.

Original cosponsors to the EAT Act:

Rep Ackerman, Gary L. [D-NY-5]
Rep Andrews, Robert E. [D-NJ-1]
Rep Blumenauer, Earl [D-OR-3]
Rep Boswell, Leonard L. [D-IA-3]
Rep Carnahan, Russ [D-MO-3]
Rep Carson, Andre [D-IN-7]
Rep Cohen, Steve [D-TN-9]
Rep Connolly, Gerald E. "Gerry" [D-VA-11]
Rep Conyers, John, Jr. [D-MI-14]
Rep Courtney, Joe [D-CT-2]
Rep DeLauro, Rosa L. [D-CT-3]
Rep Deutch, Theodore E. [D-FL-19]
Rep Dingell, John D. [D-MI-15]
Rep Edwards, Donna F. [D-MD-4
Rep Ellison, Keith [D-MN-5]
Rep Holt, Rush D. [D-NJ-12]
Rep Israel, Steve [D-NY-2]
Rep Jackson, Jesse L., Jr. [D-IL-2]
Rep Kaptur, Marcy [D-OH-9]
Rep Kildee, Dale E. [D-MI-5]
Rep Lee, Barbara [D-CA-9]
Rep Levin, Sander M. [D-MI-12]
Rep Lujan, Ben Ray [D-NM-3]
Rep McGovern, James P. [D-MA-3]
Rep Moran, James P. [D-VA-8]
Rep Olver, John W. [D-MA-1]
Rep Perlmutter, Ed [D-CO-7]
Rep Pingree, Chellie [D-ME-1]
Rep Richardson, Laura [D-CA-37]
Rep Schakowsky, Janice D. [D-IL-9]
Rep Schiff, Adam B. [D-CA-29]
Rep Scott, Robert C. "Bobby" [D-VA-3]
Rep Stark, Fortney Pete [D-CA-13]
Rep Tonko, Paul [D-NY-21]
Rep Tsongas, Niki [D-MA-5]
Rep Van Hollen, Chris [D-MD-8]
Rep Watt, Melvin L. [D-NC-12]
Rep Welch, Peter [D-VT]
Rep Woolsey, Lynn C. [D-CA-6]

###