Payment to States of 50% of Food Stamp Program Administrative Costs

Inquiries were received concerning whether the approach employed by the Department of Agriculture (USDA) implementing a statute providing for payment to State agencies of 50 percent of their total administrative costs under the food stamp program constituted a "deferral of budget authority." Neither the delay by the USDA in promulgating regulations to implement the authorized payments to the States nor the USDA failure to eventually provide for such payments prior to October 1, 1974, constituted a "deferral of budget authority" within the application of the Impoundment Control Act since USDA's approach to the implementation of the 50 percent payments did not involve formal reserve or withholding of budget authority and since the October 1 implementation date was ratified by the Congress.