The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Saturday, February 25, 1995            TAG: 9502250236
SECTION: FRONT                    PAGE: A6   EDITION: FINAL 
SOURCE: THE WASHINGTON POST 
DATELINE: WASHINGTON                         LENGTH: Medium:   56 lines

PLAN TO REPLACE FOOD STAMPS FAILS A PROVISION OF THE GOP ``CONTRACT'' DIES.

The Republican revolution in Congress ran up against old-fashioned politics Friday when a farm state legislator heading the House Agriculture Committee got leaders to abandon their proposal to replace the nation's huge food stamp program with direct cash payments to the states.

The proposal to eliminate the $27 billion food stamp program, one of the provisions in the GOP ``Contract With America,'' had drawn strong opposition from grocers, agricultural interests and advocates for the poor, who said the 31-year-old system had ensured a basic level of nutrition for low-income American families.

``We want one program at least to be a safety net for people who are truly needy,'' said Committee Chairman Pat Roberts, R-Kan., who had argued for the past month against dismantling the program.

Roberts' successful rebellion was one of a number of signs that the momentum behind the GOP version of welfare reform has begun to run into obstacles on its road to ultimate passage by the House, let alone the Senate.

In a letter signed by three Republican and three Democratic governors, the National Governors' Association (NGA) took issue with several provisions of the welfare legislation recently approved by a House subcommittee.

While Republican governors played down their differences with the House, it was clear that they were increasingly concerned that, as the welfare legislation moves through more congressional panels, more federal strings are being attached to the funding.

Governors had said they needed to be able to pool funds from various federal programs to compensate for spending cuts being planned as programs are returned to the states in block grants.

Agriculture Committee members balked at simply handing over the funding for food stamps in cash to the states, claiming it would increase the potential for fraud in a program where 10 percent of the money is already lost to fraud, according to the Agriculture Department's inspector general.

Food stamps have served as federal safety net under state safety nets.

Families living in states with lower welfare payments got more food stamps to make up the difference.

Food stamps have been guaranteed to eligible families regardless of the total cost to the nation. MEMO: THE PROGRAM

Food stamps is one of the nation's largest welfare programs, serving

27 million people at a cost of $27 billion annually.

More than half of the recipients are children.

A family of three may receive coupons if their income is $1,027 a

month or less. by CNB