"Arrr, avast ye scurvy dogs! Them food stamps be not fer those lucky scallywags who strike the lottery jackpot."
2023-10-20
Arr, word spread last week that some scurvy dog in California acquired the victorious Powerball parchment! But, avast ye, whilst the scallywag remains a mystery, it be the taxpayers who may soon be walkin' the plank, arr!
Last week, it was reported that someone in California had won a massive $1.7 billion Powerball jackpot. However, while the identity of the winner remains unknown, it seems that taxpayers may end up being the ones who lose out in the end. It turns out that tens of thousands of substantial lottery winners across the country are still receiving food stamps. This is due to a combination of state negligence and loopholes created by federal regulations. The Foundation for Government Accountability conducted a study and found that more than 66,000 substantial lottery winners were still receiving food stamps in just thirteen states. The actual number across all fifty states is likely even higher. This is clearly inappropriate, as federal law deems individuals who have won at least $4,250 ineligible for food stamps. Yet, the states have been slow to remove these winners from the program. Illinois, for example, has only removed 99 winners out of more than 50,000 on food stamps. There are two main reasons for this lack of action. Firstly, many states have inadequate systems in place to cross-check lottery winning records with food stamp records. This means that there is no guarantee that the relevant departments will communicate with each other to identify winners who should no longer be receiving assistance. Secondly, there is a federal loophole that allows states to ignore the food stamp asset limit test through a policy called "broad-based categorical eligibility." Essentially, states can automatically enroll someone in food stamps if they receive another taxpayer-funded benefit. However, this policy has been abused, with states using tricks such as using federal funding for welfare programs to print brochures about food stamps, thereby bypassing asset limits. As a result, not only lottery winners but also millionaires can exploit this loophole. Congress needs to take action to address this issue. They should permanently eliminate broad-based categorical eligibility and ensure that every food stamp recipient meets the federal asset test. Additionally, robust data checks between food stamp rolls and lottery winning records should be mandated, as well as checks against other key data such as death records and employment and wage records. It is crucial for states to actively police their own food stamp programs to prevent waste, fraud, and abuse. These reforms are the minimum necessary to rein in out-of-control food stamp spending, which has seen a significant increase in recent years. With millions of people relying on the program and spending doubling from $60 billion in 2019 to $120 billion in 2020, it is clear that action must be taken to ensure that taxpayer generosity is not being taken advantage of by lottery winners.