Mar 25, 2004
WASHINGTON, DC — March 25, 2004 — Last night’s House vote, 419-5, to reauthorize the Women, Infants and Children (WIC) program for the next four years is a “tremendous victory for the consumers who rely on this essential nutrition program and for retailers and wholesalers that serve them,” said Tim Hammonds, president and CEO of the Food Marketing Institute (FMI), commenting on the vote today.

“The legislation will help women and children stretch their WIC dollars.” Hammonds said. “It will promote technology that speeds the delivery of WIC benefits. It will help shut down the black market for infant formula. And, perhaps most importantly, it will put systems in place at the state level to promote future improvements.”

“The WIC program is a public-private alliance committed to providing a vital community service — nourishing mothers and children in need. This legislation will strengthen that alliance and extend our service to many more consumers. We strongly encourage the Senate to adopt these reforms.”

“This vote culminates years of hard work by FMI and the retailer and wholesaler members of our WIC Task Force,” he added. “The House adopted nine of the top reforms that members have been advocating since the 1990s.” Specifically, the bill will:

  • Encourage states to allow consumers to buy less costly private label products through the program.

  • Maintain consumer access to WIC items by encouraging states to grant interim licenses to new stores or outlets than have changed ownership.

  • Help prevent infant formula theft and counterfeiting by requiring that these products be purchased only from authorized retailers, wholesalers and suppliers.

  • Require all states that receive federal funding for WIC electronic benefit transfer (EBT) systems to observe national technical standards — a measure that will speed the adoption of lower-cost electronic delivery of WIC benefits.

Four additional reforms will help retailers better serve WIC consumers, according to Hammonds. “Most welcome,” he said, “is the immediate notification of retailers about program violations. This will enable retailers to resolve issues quickly rather then waiting until they learn about them weeks or months later when fines are assessed or their licenses are pulled.

“We also appreciate the language reaffirming that retailers should not incur extra costs for participating in the program. This is essential as we move into the electronic delivery of WIC benefits, which will require substantial investments in technology.”

“Retailers will also receive faster payment for WIC vouchers by allowing line-item rejection of individual product purchases.” Hammonds said. “Too often, retailers are not reimbursed for an entire purchase because of questions about the WIC eligibility of a single product. Also helpful is the provision giving retailers flexibility in the minimum inventory requirements for specialty infant formulas.”

“This legislation also looks to the future,” Hammonds concluded, “by encouraging states to form retail advisory panels to oversee WIC operations. States that have formed such panels have seen major improvements in consumer service and program administration.”

“Taken together,” he said, “these reforms will reduce the program cost and allow the government to extend WIC benefits to more people in need. They will encourage more retailers to participate, making WIC products more accessible — a great benefit for pregnant women and new mothers who need this convenience.”

The reforms are among the recommendations in a 2002 report by the FMI WIC Task Force, composed of 22 food retail industry executives that help oversee the program at the state and federal levels. The task force is chaired by Liz Chace-Marino, a former WIC program administrator and current director of government and corporate affairs at The Stop & Shop Supermarket Company based in Boston, MA.

The reauthorization measure, titled the Child Nutrition Improvement & Integrity Act (H.R. 3873), covers the WIC and other child nutrition programs. The Senate is expected to take up the legislation in the near future.