Recognition of the severe domestic hunger problem in the latter half of the 1980s led to incremental expansions of the FSP in 1985 and 1987, such as elimination of sales tax on food stamp purchases, reinstitution of categorical eligibility, increased resource limit for most households ($2,000), eligibility for the homeless, and expanded nutrition education. The Hunger Prevention Act of 1988 and the Mickey Leland Memorial Domestic Hunger Relief Act in 1990 foretold the improvements that would be coming. The 1988 and 1990 legislation accomplished the following:
* increasing benefits by applying a multiplication factor to Thrifty Food Plan costs;
* making outreach an optional activity for States;
* excluding advance earned income tax credits as income;
* simplifying procedures for calculating medical deductions;
* instituting periodic adjustments of the minimum benefit;
* authorizing nutrition education grants;
* establishing severe penalties for violations by individuals or participating firms; and
* establishing EBT as an issuance alternative.
Throughout this era, significant players were principally various committee chairmen: Congressmen Leland, Hall, Foley, Panetta, and de la Garza and Senator Leahy.