Thirteen Republican-led states have rejected federal funding to feed children. Where does that unspent money go?

This is just one of the stories in our “You’ve Always Asked” series, where we answer all your questions about the business world, big and small. Have you ever wondered if it’s worth recycling? Or what’s the difference between store brand and name brand? Click here for details on the series.

listener Douglas Tickner asks.

I read in an article last February that some states, all led by Republicans, had denied federal funding that would have helped low-income families feed their children. What happens to federal funds if the state to which they are allocated rejects them?

Millions of low-income families will begin receiving $120 per child for groceries this summer as part of the U.S. Department of Agriculture’s new SUN Bucks program.

The federal government has allocated $2.5 billion to the program, also known as Summer EBT, this fiscal year. Even though summer is over, states like Pennsylvania are still distributing benefits through the end of October.

Thirty-seven states received that federal funding, but 13 Republican-led states rejected the funding, including Florida, Georgia, Idaho, Iowa, Oklahoma, and Texas.

States declined to participate due to lack of administrative resources and funding, concerns about existing programs already serving their populations, concerns about conditions attached to federal funding, timing constraints, and ideological differences. did.

“We are sending the wrong message to parents and children that we will continue to provide for everyone without asking for anything in return,” said Idaho Sen. Cindy Carlson.

Funding for SUN bucks is part of a larger pool of funds used for USDA’s suite of child nutrition programs. SUN funds will be rolled over into the program’s second year and will eventually be returned to the Treasury if not used for other child nutrition programs, an Agriculture Department spokesperson said.

“It’s very disappointing to see that money left on the table,” Luke Elzinga of the Iowa Hunger Coalition told Marketplace earlier this year.

Each state was required to fund half of the program’s administrative costs, including staffing, data management, and postage. The federal government has offered to cover the remaining half, along with the benefits themselves.

Maryland alone has issued more than $70 million in grocery-related benefits, helping feed 586,000 children, according to the governor’s office. Maryland Matters reported that the state spent $5.8 million on the program.

“Summer may be the hungriest time of year for children,” said Kelsey Boone, senior child nutrition policy analyst at the Food Research and Action Center. “Once the school year ends, millions of children across the country will no longer have access to school meals, and childhood hunger can cause long-term physical, academic and psychological effects.”

The Pandemic EBT food program helped children during the COVID-19 crisis, but its benefits ended last year. Additionally, USDA’s other summer nutrition programs are not available to everyone. For example, SUN Meals are only available in certain locations, such as schools.

Before the pandemic, summer nutrition programs served only one in seven children who relied on free or reduced-price meals throughout the school year, according to FRAC.

So if states opt out of programs like SUN Bucks, children won’t have that safety net, Boone said.

It would have cost Iowa an estimated $2.2 million to implement the program. However, the USDA estimated that families could receive nearly $29 million in benefits as a result.

Some states that had to pay similar fees still participate in the program. Kansas had to pay $1.9 million for the program, which is expected to provide $32 million in benefits to families. Poverty rates in Iowa and Kansas each exceed 11%.

Boone noted there are ways the state can reduce the cost of the program. For example, she said they could apply for a summer EBT technology grant of more than $1 million from the Department of Agriculture to build the infrastructure needed to distribute SUN Bucks.

“I really hope the states recognize this and can resolve some of these issues,” Boone said.

Tribal nations within the state that refused funding were also able to participate. In Oklahoma, the Cherokee, Chickasaw, and Muscogee tribes have formed a partnership to provide benefits within their borders.

“We didn’t have a lot of time to prepare. We really had to jump in and get it going,” Cherokee Nation Summer EBT Program Director Melissa Stayathome told Marketplace earlier this year. .

Next year, some families who didn’t receive the funds will have the chance to do so. Alabama, which declined to participate this summer, will participate in 2025.