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THE WHITE HOUSE

Office of the Vice President


For Immediate Release September 27, 1994
                  STATEMENT OF THE VICE PRESIDENT
          ON TEXAS ELECTRONIC BENEFITS TRANSFER PROGRAM 

The State of Texas and Texas Comptroller John Sharp are leading the way in implementing one of the most innovative ideas nationwide for welfare reform. The Electronic Benefits Transfer program, or EBT, allows food stamp recipients to purchase food at stores using a Lone Star card, with the purchase automatically deducted from their benefits account. The program will reduce theft and food stamp fraud of the old paper coupon system while saving taxpayers millions of dollars in administrative costs.

The EBT program is also part of my National Performance Review: Creating a Government That Works Better and Costs Less, patterned after Comptroller Sharp's Texas Performance Review recommendation. The new system is scheduled to go nationwide by the end of the decade.

I commend the State of Texas and Comptroller Sharp for their foresight and innovation in developing the EBT program. With the implementation of EBT programs such as the Lone Star card, food stamp fraud will be significantly reduced, the cost of these programs will decrease, and services will be improved through the use of technology.

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