Unused Millions of Dollars for South Carolina Families’ Grocery Assistance

COLUMBIA — A little over $8 million designated to assist families in purchasing groceries was left untapped due to the expiration of debit cards with the allocated funds recently, as per state records.

Last August, the South Carolina Department of Social Services dispatched close to 537,000 debit cards loaded with funds for groceries to households statewide. The funds were part of a temporary federal initiative during the COVID-19 crisis aimed at aiding families in buying groceries during periods when their children were not in school.

The final batch of cards, providing $120 per child to families, expired in May, nine months after issuance. Almost 470,000 cards — 87.5% of the total delivered — were activated, amounting to $56.2 million.

It remains unknown if families exhausted their entire allocation. Once a card is activated, DSS does not monitor the extent of its usage. However, given the grocery costs, it is anticipated that families who activated their cards likely expended the full available amount promptly.

Cards retain their validity for nine months following the initial purchase of any sum. Therefore, individuals who initially utilized the cards between April and May have until next January or February to utilize the remaining funds before they revert to the federal government.

The precise reasons why 67,000 families did not utilize their cards are uncertain. Various explanations could account for why a parent refrained from access, according to remarks from DSS officials and advocates.

Some cards may have been misplaced among the array of other pandemic aids, noted Sue Berkowitz, an advocate with Appleseed Legal Justice Center. Some recipients might have disposed of the cards under the misconception that they were illegitimate.

The social services and education departments endeavored to disseminate information through news segments and social media announcements, said agency representatives.

Other families may have intentionally disregarded the assistance. The cards were dispatched to the addresses of students eligible for free or reduced-price meals at school.

Moreover, the large majority of schools statewide qualified for a federal program enabling all students to receive free meals, irrespective of their parents’ earnings. Consequently, families who do not typically qualify for public aid also received the grocery debit cards.

The cards dispersed in August marked the culmination of seven waves of federal pandemic grocery help.

Overall, the state allocated 2.26 million cards between July 2020 and last August, providing $1.04 billion for groceries. DSS data indicates that parents utilized 90% of these cards at least once.

Even though a comprehensive database on states’ utilization is unavailable, South Carolina families appear to have utilized the funds more diligently compared to other states. For instance, Missouri had approximately $37 million in untapped grocery aid in February, while Louisiana had $16 million in April, just prior to the cards’ expiry.

A novel, enduring version of the program rolled out in 35 states this summer. South Carolina did not partake following Gov. Henry McMaster’s refusal, citing other state-wide programs providing meals to children over the summer.

Unlike the pandemic-era assistance, which was entirely federally funded, the new program necessitates states to cover half of the administrative expenditures.

Democratic lawmakers criticized McMaster for his choice, although proposals compelling his endorsement and urging Congress to extend the January 1 sign-up deadline yielded no results.