The Nutrition Assistance Program (NAP) provides critical nutrition support for low-income residents of Puerto Rico, issuing a monthly benefit that includes both cash and noncash portions. NAP households must redeem at least 75 percent of their benefits electronically through electronic benefit transfer (EBT) at certified retailers, and may redeem the remaining portion (up to 25 percent) in cash. The entire benefit (both the noncash and cash portions) is supposed to be used only for the purchase of eligible food items.1 The purpose of the cash portion is to give participants with limited access to certified retailers a way to purchase food. In February 2014, the Agricultural Act of 2014 (P. L. 113–79, commonly known as the 2014 Farm Bill) reauthorized the NAP block grant and included a provision to phase out the cash portion of the NAP benefit coupled with an equivalent increase in the noncash portion (Agricultural Act of 2014, 2014, § 4025).

The 2014 Farm Bill also mandated a study to assess the potential adverse effects for both participants and food retailers of replacing the 25-percent cash portion with noncash benefits. This study examines the history and purpose of the cash portion, barriers to redeeming the noncash portion, and use of the cash portion for the purchase of nonfood and other prohibited items.