[Townhall] Another day, another case of massive SNAP fraud. Tomorrow, there will be more.
The Supplemental Nutrition Assistance Program (SNAP), formerly known as "food stamps," is designed to help Americans put food on the table. Its sheer size and complexity, however, make it vulnerable to fraud, and nationwide the amount of fraud is eye-popping.
With an annual budget exceeding $90 billion, SNAP serves roughly 42 million Americans. Most recipients need help, but the program’s structure, especially the use of electronic benefit transfer (EBT) cards, broad eligibility, and limited in-person oversight, encourages opportunities for endless abuse. The upshot? Billions of taxpayer dollars are ripe for exploitation.
LET US COUNT THE WAYS
SNAP fraud takes multiple forms. One major category is "trafficking," whereby benefits are sold for cash or for non-food items. The USDA Office of Inspector General reported more than $320 million in trafficking nationwide in 2022, while other estimates suggest that the dollar figure could be even higher.
Organized crime rings have been caught running "EBT resale" operations from New York to Los Angeles. In 2021, federal authorities in New Jersey busted a group that trafficked more than $2 million in EBT benefits, converting taxpayer-funded groceries into cash at local corner stores.
Eligibility fraud is a major concern. To qualify for benefits, some recipients underreport income or fail to disclose assets. In 2021, the USDA estimated that billions in SNAP benefits went to ineligible recipients. While small relative to the program’s total budget, this money could otherwise support truly needy households.
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