Nebraska is a National Leader in Attacking Public Assistance Fraud
Last week, the federal government formally approved Nebraska’s plan to restrict temporary financial assistance payments on EBT cards from being used to buy frivolous, non-essential goods and services.
The approval was granted by the U.S. Department of Health & Human Services’ Administration for Children and Families in response to an Executive Order issued on Oct. 9 by Gov. Jim Pillen.
Eligible public assistance beneficiaries who participate in the “Temporary Assistance for Needy Families (“TANF”) program receive cash assistance to purchase essential items such as food, clothing, housing, utilities, and transportation. The payments are disbursed through Electronic Benefit Transfer (“EBT”) payment cards or direct deposit into a bank account.
Since 2012, the federal government has prohibited EBT cards and benefits from being used in liquor stores, casinos or gaming establishments or in adult-oriented entertainment venues. Under the Nebraska Governor’s Executive Order, the following additional purchases using TANF funds in Nebraska will also be banned:
- Tobacco, nicotine, vaping, and other associated products;
- Drugs, intoxicants, and related products;
- Pornography, sexually explicit materials, and adult-oriented goods or services;
- Entertainment goods, subscriptions, and services such as entertainment tickets, theme parks, and subscriptions/memberships;
- Body art, body piercings, cosmetic services, and luxury items such as tattoos, spa services, and tanning;
- Psychic, fortune-telling, and divination goods or services;
- Political contributions;
- Lottery tickets and entries, sports wagers, and bets;
- Music, video, and gaming streaming subscriptions;
- Video games, in-game currency, downloadable entertainment content, and virtual goods;
- Jewelry and luxury watchesd
Florida Governor DeSantis announced similar restrictions in August of this year, making Florida the first state in the nation to adopt additional program integrity and accountability restrictions.
Both Florida and Nebraska, joined by other states, participated in the “Make America Healthy Again” initiative earlier this year which allowed states to ban spending sourced by food stamp funds to be used on items like soda, candy, and prepared desserts. To implement those changes, the states worked with their retailers and vendors to refine the point-of-sale systems used by retailers to flag and block restricted products.
A federal district court has put a hold on all states’ proposals to ban unhealthy food items temporarily on hold. However, the updated technology principles will be used to implement the TANF restrictions in Florida and Nebraska to block the purchase of the banned items or services. The changes go into effect immediately according to the Nebraska Department of Health and Human Services.