Both the outgoing Republican Administration and the new Democratic Administration offered Congress proposed legislation to reform the FSP in 1977. The Republican bill stressed targeting benefits to the neediest, simplifying administration, and tightening controls on the program; the Democratic bill focused on increasing access to those most in need and simplifying and streamlining a complicated and cumbersome process that delayed benefit delivery as well as reducing errors, and curbing abuse. The chief force for the Democratic Administration was Robert Greenstein, Administrator of FNS; in Congress, major players were Senators McGovern, Javits, Humphrey, and Dole and Congressmen Foley and Richmond. Amidst all the themes, the one that became the rallying cry for FSP reform was "EPR" -- eliminate the purchase requirement—because of the barrier to participation the purchase requirement represented. The bill that became the law (S. 275) did eliminate the purchase requirement. It also:
* eliminated categorical eligibility;
* established statutory income eligibility guidelines at the poverty line;
* established 10 categories of excluded income;
* reduced the number of deductions used to calculate net income and established a standard deduction to take the place of eliminated deductions;
* raised the general resource limit to $1,750;
* established the fair market value (FMV) test for evaluating vehicles as resources;
* penalized households whose heads voluntarily quit jobs;
* restricted eligibility for students and aliens;
* eliminated the requirement that households must have cooking facilities;
* replaced store due bills with cash change up to 99 cents;
* established the principle that stores must sell a substantial amount of staple foods if they are to be authorized;
* established the ground rules for Indian Tribal Organization administration of the FSP on reservations; and
* introduced demonstration project authority.
In addition to EPR, the Food Stamp Act of 1977 included several access provisions:
* using mail, telephone, or home visits for certification;
* requirements for outreach, bilingual personnel and materials, and nutrition education materials;
* recipients' right to submit applications the first day they attempt to do so;
* 30-day processing standard and inception of the concept of expedited service;
* SSI joint processing and coordination with AFDC;
* notice, recertification, and retroactive benefit protections; and
* a requirement for States to develop a disaster plan.
The integrity provisions of the new program included fraud disqualifications, enhanced Federal funding for States' anti-fraud activities, and financial incentives for low error rates.
The House Report for the 1977 legislation points out that the changes in the Food Stamp Program are needed without reference to upcoming welfare reform since "the path to welfare reform is, indeed, rocky...."
EPR was implemented January 1, 1979. Participation that month increased 1.5 million over the preceding month.