USDA Warns Mother and Child Benefits May Fall Short. Here's How You Can Prepare

The U.S. Department of Agriculture (USDA) warned there could be a $1 billion hole in its WIC budget if Congress does not approve its funding. The WIC program (which is short for Special Supplemental Nutrition Program for Women, Infants, and Children), provides food assistance as well as advice and support for breastfeeding mothers and young children.

The department says that almost 40% of young children in America participate in WIC. It warns that the "current funding levels will not cover all eligible participants." If you're unsure about how a WIC budget shortfall might affect your benefits, you're not alone. The USDA says around 6.7 million women, infants, and children benefit from WIC.

Why WIC may run out of money

Government spending (and government debt) is a political hot potato right now. For months, lawmakers have been scrambling to agree on spending bills and avoid a government shutdown. Without getting into the details, WIC funding has to be approved differently from SNAP benefits, and it isn't clear whether WIC will get the extra money it needs.

One issue is that WIC participation has increased. This, combined with higher food costs, means the program needs extra money to continue. According to the Center on Budget and Policy Priorities, in 2021 WIC provided an average of almost $60 worth of food each month in nutritious foods per participant. Eligible women and children receive nutritional food, such as baby foods, cereal, milk, whole wheat bread, and canned fish.

If Congress doesn't approve the additional funding, the latest press release from the USDA says:

• States may have to introduce waiting lists to prioritize who gets assistance
• WIC may cut clinic hours and introduce other cost-cutting measures
• In a worst-case scenario, states may have to discontinue or suspend WIC benefits altogether

How you can prepare for possible WIC shortfall

If you rely on WIC benefits, the idea that what's happening in Washington could impact your ability to care for your family is probably very stressful. Particularly if high living costs are already hammering your personal finances.

Try not to panic. For starters, Congress may still approve the WIC budget. The program has had bipartisan support for the past 25 years and many lawmakers want the program to continue. Especially as both of the recent short-term measures passed by Congress supported higher WIC spending.

However, if the funding does not get approved, officials say the impact will be felt in the final months of the fiscal year. That's around July, August, and September of 2024. Here are some steps you might take between now and then:

• Talk to your WIC provider: The funding situation varies from state to state, so try to find out what's happening in your area. Ask about any potential cost-cutting measures that might be introduced, particularly whether your state might implement waiting lists and how these would work.
• Understand the waiting list: If WIC does not have enough money to help all its participants, it will group people by priority, starting with people with serious health conditions. Check what group you and your children would be on its priority list.
• Try to save a little now: The idea of saving may seem impossible, especially if you've already cut back a lot. But if you're able to put even $5 or $10 into a savings account each week, you can build up a cushion against any WIC changes.
• See if you qualify for extra assistance: Go to Benefits.gov to see if you might qualify for any other financial help. For example, if you are a low-income household and don't already claim SNAP benefits, this could give your budget a boost. Outside of food, you may be able to get help with healthcare costs and energy bills.
• Watch out for Summer EBT: Summer is still a way away. Even so, if you have kids of school age, see if your state is one of the 35 to pay extra benefits during summer vacations. Eligible families can receive $40 per child, per month.
• Check out food pantries and soup kitchens: If you don't have enough food for you or your family, see what food pantries and soup kitchens are in operation near you. They are there to help. Homeless charity Feeding America estimates that 1 in 6 Americans received some kind of charitable food assistance in 2022.

There is a lot of uncertainty right now about the economy and what 2024 will bring. The political wrangling over government funding only adds to this. Try to look at your budget now and think about how you might handle any changes to WIC. That way if the worst does happen and Congress does not approve the extra money, you'll already have a plan in place.