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USDA's Proposed Overhaul of WIC Rules Would Restrict WIC Participants' Access to Food and Ignores Congressional Instructions

USDA has proposed a drastic overhaul of the rules that allow food retailers to offer food to WIC participants. 64 Fed. Reg. 32308 (June 16, 1999). FMI's concerns are fully described in the attached comments that were filed with the Agency in response to the proposal. Several of the key issues are highlighted below.

  • Vendor limiting criteria would require state WIC agencies to limit the number of retailers that will be authorized to provide food to WIC participants, regardless of the retailers' qualifications. Fewer retailers means less choice for WIC customers.

  • Vendor limiting criteria will force small grocery stores out of business.

  • USDA proposed vendor limiting criteria in 1990 and was directed by Congress to re-think the plan. The 1999 proposal on vendor limiting criteria is nearly identical to the 1990 proposal without any further rationale or data.

  • USDA relied on outdated studies (primarily from 1988 and 1991) to develop the 1999 proposal and did not consider experience of state WIC programs or reports prepared by FMI in 1997 and 1998. A 1999 GAO report indicates that most states have either abandoned or chose not to use the type of vendor limiting criteria USDA would impose.

  • Limited time frames for accepting and processing vendor applications might prohibit new stores from serving WIC customers for up to 3 years.

  • USDA should not target vendors based on secret criteria. Although FMI, too, wants to ensure that fraudulent retailers are not authorized to participate in the WIC program, secret government criteria for targeting citizens may be abused.

  • Systems for vendor limiting criteria and "high risk" vendor monitoring will necessitate substantial expenditures of valuable WIC program resources.

  • WIC agencies should not be allowed to withhold payment on entire WIC voucher for discrepancy on single item. Private citizens cannot refuse to pay an entire credit card bill just because there is a dispute over one entry.

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