Stimulus boosts food aid to poor by $20 billion

WASHINGTON (Reuters) - The U.S. government will spend an additional $20 billion over five years to help poor and unemployed people buy food under the stimulus law signed by President Barack Obama on Monday.

The package also has $2.5 billion for the Agriculture Department to expand broadband service in rural America and an agricultural disaster transition program that could cost $800 million, including grants to fish farms hit by high feed costs in 2008.

All told, USDA spending would rise by $26.4 billion over the next few years. An estimated $20 billion of it would be spent on a temporary increase in public nutrition benefits.

Food stamp benefits rise by 13 percent through Sept 30. The law also waives until Sept 30, 2010, the three-month limit on benefits to able-bodied adults who have no dependents.

Some 31.1 million Americans got food stamps at the latest count.

Here is a summary of USDA funding under the law:

--$2.5 billion for grants, loans and guarantees to expand broadband service to unserved and under-served areas in rural America. The law gives preference to rural areas and projects that reach a high proportion of people without service.

An additional $4.7 billion goes to the Commerce Department to expand broadband deployment.

--a disaster transition program that covers 2008 agricultural production. To be eligible, producers must pay a fee and agree to buy crop insurance. Up to $50 million is allowed for grants to aquaculture to offset high feed costs. An earlier version was estimated to cost $800 million.

--$515 million for hazardous fuels removal and other work to prevent wildfires.

--$500 million for the Women, Infants and Children nutrition program; $400 million will go into a reserve fund and $100 million to states to improve computer systems.

--$150 million for emergency food assistance.

--$100 million in grants for new food-service equipment for schools.

--$290 million for a watershed and flood prevention program, half to buy easements.

--$176 million for repairs of agricultural research facilities.

--$50 million to upgrade the Farm Service Agency computer system.

--$50 million for rehabilitation of flood control infrastructure.

--$24 million for high-priority maintenance, repair and modernization of USDA facilities.

(Reporting by Charles Abbott; Editing by David Gregorio)