Food Stamp Employment & Training (FSET) dollars fund programs that help Food Stamp recipients gain the skills they need to succeed in the labor market.The U.S. Department of Agriculture administers and funds FSET. 

Many organizations provide educational and employment services to low-income persons who are eligible for food stamps, but few have captured the sustainable, uncapped federal FSET funding to support and expand this work. FSET has been underutilized in part because of a requirement for local government to match federal FSET funding. Recently, a new model for meeting federal match requirements has created an opportunity to draw down significant federal dollars for low-income communities.

In this model, pioneered by Washington State several years ago and now being piloted in California and other states, community service providers can use their own match funds to draw federal funding on a dollar for dollar basis. Match funds can include philanthropic grants, nonprofit revenues, employer contributions, and non-federal public monies. Community providers often have existing sources of match funding, and many seek new match funding for this purpose. 

With well-designed program budgets and adequate client participation, community providers can expand their continuum of services, serve more clients, and help clients pay for expenses such as tuition and transportation. Ideal candidates for this new model include community colleges, adult schools, and community-based agencies that provide or wish to provide a significant amount of employment and training services. 

This model is known as the “third-party match” model, or “Cal Success” in California. The FSET Expansion Initiative, a project of the Insight Center for Community Economic Development, supports governmental entities and community organizations in negotiating new policies and procedures, standardizing the model on a statewide basis, understanding administrative requirements, and tailoring the model for local needs.  

For more information, contact the FSET Expansion Initiative partners, Insight Center for Community Economic Development and California Association of Food Banks.