Rob Undersander, a retired engineer in Waite Park, Minnesota, wasn’t eager to go public about being a millionaire, but he wanted to expose a loophole that would allow wealthy – or at least those not needy – to qualify for food stamps.
So, in June 2016, he filled out an application form at the Stearns County social services office, and despite being very upfront about his wealth, was able to qualify for the Supplemental Nutrition Assistance Program, more commonly referred to as the food stamp program.
Read the full story on The Daily Signal: After Legally Receiving Food Stamps, This Millionaire Is Trying to Change the System
Undersander intentionally set out to expose the systemic flaw in the “broad-based categorical eligibility” policy of SNAP.
The policy allows applicants to bypass an assets test, so someone could qualify for food stamps even if he has property and bank accounts, as long as his income is low enough.
Minnesota is among 34 states which, along with Washington, D.C., use the “broad-based categorical eligibility” loophole that doesn’t check assets
On Tuesday, the Trump administration’s U.S. Department of Agriculture took a step to close this loophole by proposing a new rule that narrows eligibility.
“For too long, this loophole has been used to effectively bypass important eligibility guidelines. Too often, states have misused this flexibility without restraint,” said Agriculture Secretary Sonny Perdue.
“The guilty party in this fraud has not been the welfare recipient, but the states,” said Robert Rector, senior research fellow for domestic policy studies at Heritage. “Red and blue state governors love to waste federal money. Even the deepest-blue states would never do this with their own money.”
If implemented, the reform could remove as many as 3.1 million recipients from the food stamp program’s rolls and could save roughly $12 billion over the next decade.
What are some other obvious examples of government waste?