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Five Ways Congress Can Stop Food Stamp Fraud

There are commonsense ways to stop fraud in its tracks, and Congress has a chance to tackle food stamp fraud head on in the Farm Bill reauthorization. HERE’S HOW:

Did you know that one in four grocery stores engages in EBT card trafficking?

Cracking down on retailers involved in fraudulent redemption of benefits would stem the tide of trafficking that costs taxpayers millions each year.

States today are on the hook for non-residents.

States shouldn’t be providing food stamp funds to non-residents, and reviewing cases in which food stamps are redeemed exclusively out of state can prevent fraudulent activities, like claiming benefits in two or more states at a time.

You know what they say about assuming…

By limiting the authorized users of an EBT card, states can prevent both the sale of food stamps for cash and the theft of food stamps from innocent beneficiaries.

Cross-Checks = Truly Eligible Enrollees.

All these records can be cross-checked against food stamps recipients to help prevent cases of fraud, like failing to report income or continuing to receive benefits while in jail.

“Simplified reporting” isn’t enough.

Requiring enrollees to report any change in income or another eligibility factor within 10 days would ensure that people only receive benefits for which they are eligible.

Source: USDA estimates that more than 14 percent of retailers engage in trafficking.


Millions are lost to fraudulent food stamps schemes, which can go undetected for years. Here are some of the worst examples of recent food stamp fraud:

You can get the sources and read more about food stamp fraud in FGA’s report, Five Ways That Congress Can Put a Stop to Food Stamp Fraud.

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By partnering with FGA through a gift, you can create more policy change that returns America to a country where entrepreneurship thrives, personal responsibility is rewarded, and paychecks replace welfare checks.