Food stamp participation increased the value of food consumed by the household but had no significant effect on nutrient intake of the 8-12 year old child. Liquid assets increased the value of food consumed for eligible non-stamp recipients but had little effect on participants' food consumption. Physiological need levels were higher for food stamp recipients than for nonrecipients. This need level was positively related to value of food consumption. An important implication of the results is that issuance of only bonus stamps may decrease the demand for food.