Ferrari drivers on food stamps — how states help scammers game welfare |
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Ferrari drivers on food stamps — how states help scammers game welfare
What do a university professor, a celebrity barber and a professional football player have in common?
All three bought new, six-figure luxury sports cars and lived lavish lifestyles — while collecting food stamps.
How on earth can these “welfare recipients” purchase high-end vehicles while remaining on the dole?
Thanks to a federal loophole known as Broad-Based Categorical Eligibility.
The Clinton administration manufactured this loophole, and the Obama administration supercharged it.
Currently, 43 states and Washington, DC, use BBCE to bypass federal Supplemental Nutrition Assistance Program eligibility limits on income, assets or both.
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The mechanism, based on a federal law that was meant to minimize states’ administrative costs, is simple.
State welfare agencies print up a brochure about welfare programs, or set up an informational hotline, and deem it a “benefit” under the Temporary Assistance for Needy Families program.
Anyone who touches that pamphlet or receives the phone number is then treated as being “categorically eligible” for food stamps — even millionaires.
It’s fraud by design that distributes benefits intended for the truly needy to otherwise ineligible individuals, under the........