On Thursday, Congressman Ben Cline (R-VA) introduced the No Welfare for the Wealthy Actto eliminate the Broad-Based Categorical Eligibility (BBCE) loophole in the Supplemental Nutrition Assistance Program (SNAP) and stop waste, fraud, and abuse within the food stamp program. This legislation would also require states to enforce the asset and income limits already in federal law.
Currently, 41 states and the District of Columbia are using the BBCE loophole to ignore applicants’ assets like cash, boats, and RVs to bust through federal eligibility limits when handing out food stamp benefits. As a result, at least 5 million people who receive food stamps do not meet federal asset and/or income requirements – costing American taxpayers nearly $7 billion per year.
Rep. Ben Cline said: “It’s no surprise that Big Government just keeps finding ways to spend more of Americans’ taxpayer dollars and encourage waste and fraud – even if it comes at the expense of the truly needy. The Broad-Based Categorical Eligibility loophole is a system created by federal bureaucrats that allows the wealthy to receive taxpayer-funded food stamps without checking their assets. Whether intentional or not, no one should be able to receive these benefits if they are ineligible. The No Welfare for the Wealthy Act will prevent states from abusing this loophole and protect resources that should only go to the most vulnerable among us.”