What if millionaires could get food stamps? As it turns out, this has actually been legal for decades.
The loophole that makes this riddle a reality is called “broad-based categorical eligibility.” Thankfully, this loophole is finally getting the attention it deserves, as the Trump administration is taking steps to close it and restore integrity to our food stamp program.
Welfare fraud isn’t a new concept, but what makes broad-based categorical eligibility so perverse is that it is essentially a form of state-sponsored fraud. Federal and state agencies have slowly turned an administrative shortcut into a full-blown bait-and-switch. The result? Millions of people are now receiving food stamps despite having incomes and assets above threshold limits — including some millionaires.