A government watchdog has revealed potential fraud in nutritional assistance programs (NAPs) in the form of so-called "no-good-cause exemptions" (NGCEs).
According to a Feb. 9 report released by the Florida-based Foundation for Government Accountability (FGA), NGCEs play a major role in circumventing work requirements and concealing food stamp errors. Also known as discretionary exemptions, NGCEs allow states to excuse able-bodied adults from work obligations without requiring any justification. (Related: Watchdog study: Biden’s food stamp expansion caused 15% SURGE in grocery prices.)
The report said these food stamps exemptions are widely misused by states – hiding accounting errors and presenting ample opportunities for abuse and corruption. Further fueling the potential for abuse is the fact that these exemptions can be carried over from year to year if unused.
One example of misuse of the NGCE outlined in the report was the retroactive issuance of such exemptions to certain individuals. By doing so, states can also artificially lower their error rates, undermining the integrity of the program. True enough, the report highlighted instances where states have openly admitted to the practice – dubbing it by as "overissuance/error protection."
Hayden Dublois, the report's author and FGA's data and analytics director, decried the practice of exemption abuse. He asserted that this practice isn't only deceptive, but also undermines the accountability measures put in place to ensure the proper administration of these programs.
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"Instead of cleaning up their food stamp rolls, state bureaucrats are sweeping their errors under the rug," Dublois said in a statement. "The federal rule they’re using keeps thousands of ineligible recipients on welfare, using resources meant for the truly needy."
Dublois: Taxpayers and the truly needy lose under the current system
His report also disclosed that in some states, up to 100 percent of NGCEs are issued retroactively. FGA submitted requests for public records to nearly 20 states that have been identified as having utilized these exemptions. While many of the states declined to provide records, documents from those who did paint an alarming picture.
The FGA cited Kansas, Maine and Rhode Island as three examples of states that applied 100 percent of their NGCEs retroactively. Pennsylvania applied 78 percent of these exemptions retroactively, while New York state was found to have used 14 percent in the same way.
The group estimates that over the five-year period from 2016 to 2020, approximately 100,000 retroactive NGCEs were issued in these five states alone. Bureaucrats in these states could be concealing the true magnitude of their errors by covering up mistakes.
"This is trickle-down program abuse: The Biden administration unilaterally increases food stamp spending, state bureaucrats exploit this federal rule and ineligible food stamp recipients exploit the lack of program integrity," Dublois remarked.
"It's taxpayers and the truly needy who lose under the current system. Congress can, and should, end the abuse of NGCEs."
This was not the first time FGA zoomed in on with regard to the issue of NAPs. A previous report from the watchdog released in October 2023 presented evidence that more than 66,000 persons remained on the list of food stamp recipients despite winning enough money in lotteries. The watchdog discovered this issue from documents obtained through the Freedom of Information Act.
"We aren't talking about the proud owners of $20 prizes from scratchers," Dublois said back in October. "We're talking about those who won at least $4,250 –which, under federal law, makes a person ineligible for the taxpayer's help."
Head over to Corruption.news for more stories related to fraud.
Watch this video about the U.S. Army recommending soldiers to apply for food stamps to augment their low wages.
This video is from the Truth Channel on Brighteon.com.
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