Beer. Liquor. Cigarettes. Porn.
This isnt just a list of things that can be bad for you. This is a list of things that Americans are buying with cash welfare, thanks to a massive loophole in federal law.
Thankfully, states are finally taking action to prevent this abuse and protect taxpayers, with strong guidance from the Trump administration. Its an overlooked â but important â new front in the ongoing War on Fraud.
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The latest state to close this loophole is Nebraska. On Oct. 9, Republican Gov. Jim Pillen directed the state to stop recipients of cash welfare from spending money on items like tobacco, porn, tattoos, psychic and fortune-telling services, luxury watches and much more. Going forward, if you receive money under the Temporary Assistance for Needy Families (TANF) program in Nebraska, you cannot spend the money on things the taxpayer shouldnt be funding in the first place.
Americans may be forgiven for wondering why people in Nebraska â or anywhere else â were ever able to buy these things with cash welfare. After all, most people assume that government assistance is only supposed to fund specific things that families need. Cash welfare in particular is explicitly designed to help low-income families “achieve economic security and stability.” So, how did cigarettes and smut enter the picture?
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Its true that federal rules stop you from spending cash welfare at places like liquor stores. But you can still buy alcohol at plenty of other places, such as grocery stores. Similarly, you cant spend cash welfare at casinos or strip clubs, but you can still gamble or buy pornography in plenty of other places.
This loophole has existed for roughly 30 years, since TANF began â and its so large, its laughable. Did lawmakers not realize that alcohol isnt just sold at the corner store? Do our nations leaders not know that “adult entertainment” is available outside of seedy clubs?
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These are far from the only non-essential â and deeply questionable â things that cash welfare is funding. Taxpayers are also able to pay for things like concert tickets, streaming subscriptions, tattoos and luxury services like spa treatments. Its enough to make you wonder: When Congress created cash welfare, did it put any meaningful restrictions on how the money could be used?
Unfortunately, closing this loophole in one fell swoop would require another act of Congress. But thankfully, the Trump administration has issued guidance explaining how states can close this loophole, one by one. States cant change federal requirements for cash welfare. But they can ask the federal government to approve stronger requirements on a state-by-state basis, which explains the sudden and welcome progress.
Before Nebraska, Florida took the first meaningful action to stop this abuse. In August, Republican Gov. Ron DeSantis announced that he was blocking ca
