66,000 lottery winners still received food stamps, says watchdog.
Watchdog Reveals: Thousands of Lottery Winners Stay on Food Stamp Rolls
A recent report by a watchdog organization has uncovered a shocking revelation: over 66,000 individuals who won substantial amounts of money in lotteries have continued to receive food stamps, despite being ineligible. And that’s just based on data from 13 states. The actual number across all 50 states is likely in the hundreds of thousands.
The Foundation for Government Accountability (FGA) conducted a thorough investigation, submitting Freedom of Information Act (FOIA) requests to all 50 states. The requests sought information on lottery winners who remained in the food stamp program since 2019. According to Hayden Dublois, the data and analytics director at FGA, the results were staggering.
“We aren’t talking about the proud owners of $20 prizes from scratchers. We’re talking about those who won at least $4,250, which, under federal law, makes a person ineligible for the taxpayer’s help,” Mr. Dublois said in an Oct. 20 op-ed for Fox News.
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According to Mr. Dublois, this alarming situation is the result of a combination of state negligence and federal loopholes. The FOIA request yielded survey data from 13 states, but the actual number of lottery winners receiving food stamps is likely much higher across the entire country.
FGA has been raising awareness about the persistent abuse of the food stamp program for a long time. Mr. Dublois emphasized the need for Congress to take action and remove lottery winners from the program when passing the Farm Bill later this year.
Speaking of the Farm Bill, this legislation, passed every five years, determines policies for various programs, including the food stamp system. Some Republicans, like Rep. Ben Cline, have introduced bills to reform the system and prevent abuse.
Food stamp reform is a contentious issue on Capitol Hill, with Democrats and Republicans holding different views. However, the alarming statistics and the potential savings of $112 billion over the next decade by closing the loophole should be a compelling argument for change.
Loophole In Focus
In recent decades, food stamp enrollment has skyrocketed, with the number of people on the rolls increasing from 17 million in 2000 to 42.4 million in 2023. This has resulted in a nearly 600 percent increase in costs to taxpayers, according to FGA.
FGA points out that 41 states and Washington DC ignore federal income and asset limits, allowing ineligible individuals to receive food stamp benefits. This not only wastes taxpayer money but also opens the system to fraud and abuse.
Furthermore, FGA estimates that approximately 5.4 million food stamp recipients who enrolled through broad-based categorical eligibility (BBCE) do not meet the requirements. These households are nearly three times more likely to have payment errors compared to other households.
With the Farm Bill on the horizon, Congress has a unique opportunity to address this issue and close the BBCE loophole. Doing so could save taxpayers an astounding $112 billion over the next decade and restore program integrity.
Another concerning aspect of the food stamp program is the significant amount of money lost due to fraud and errors. Sen. Joni Ernst has introduced legislation to tackle this issue, aiming to reduce the monthly loss of approximately $1 billion from the Supplemental Nutrition Assistance Program (SNAP).
Republicans have been pushing for food stamp spending curbs, while Democrats have expressed concerns about cutting the program. The debate continues, but the need for reform is evident.
Food Stamp Expansion Blamed for Rising Grocery Prices
Recent research conducted by FGA highlights the impact of increased food stamp spending on grocery prices. Under the Biden administration, the U.S. Department of Agriculture (USDA) expanded the Supplemental Assistance Nutrition Program (SNAP) by approximately 27 percent compared to pre-pandemic levels.
This expansion has led to a minimum 15 percent increase in grocery prices, according to FGA. Repealing President Biden’s food stamp expansion could save taxpayers over $190 billion in the next decade.
Republicans are advocating for curbing food stamp spending, while Democrats urge caution. The White House and the USDA have not yet responded to these findings.
While various factors contribute to grocery inflation, such as pandemic-induced shifts in food demand and global supply chain issues, food stamp policies should not be overlooked as a potential factor.
What proposed reforms have been introduced to prevent abuse and close the federal loopholes in the food stamp program
Ely $112 billion could be saved over the next decade by closing this loophole and removing lottery winners from the food stamp program. This is a significant amount of money that could be redirected towards programs that truly help those in need.
The issue of lottery winners staying on food stamp rolls highlights the need for stricter enforcement of eligibility criteria and better coordination between federal and state agencies. It is unacceptable that individuals who have won substantial amounts of money are still receiving taxpayer-funded assistance intended for those with limited incomes.
This case also sheds light on the broader problem of abuse and fraud within the food stamp program. The FGA’s findings show not only the negligence of some state agencies but also the existence of federal loopholes that allow ineligible individuals to receive benefits. This undermines the purpose of the program and puts an unnecessary burden on taxpayers.
Efforts to reform the food stamp program have been proposed, with some Republicans introducing bills to prevent abuse and close the federal loopholes. However, reforming the system has become a contentious issue, with Democrats and Republicans holding different views on how to address the problem.
Moving forward, it is crucial that Congress takes action and addresses the issue of lottery winners staying on food stamp rolls. The upcoming Farm Bill presents an opportunity to implement necessary reforms and ensure that taxpayer dollars are used efficiently and effectively.
In conclusion, the recent report by the Foundation for Government Accountability reveals the alarming fact that thousands of lottery winners continue to receive food stamps despite being ineligible. This highlights the need for stricter enforcement of eligibility criteria and better coordination between federal and state agencies. It is essential for Congress to take action and close the federal loopholes that allow for such abuse. By doing so, significant savings could be achieved, and the food stamp program can be truly targeted towards those in need.
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