WASHINGTON — Some food-stamp recipients are illegally selling their benefit cards for cash and then asking the government for replacement cards.
The Agriculture Department wants to curb the practice, which costs the government millions of dollars, by giving states more power to investigate people who repeatedly claim to lose their benefit cards.
It is proposing new rules Thursday that would allow states to demand formal explanations from people who seek replacement cards more than three times a year. Those who don’t comply can be denied further cards.
“Up to this point, the state’s hands have been tied unless they absolutely suspected fraudulent activity,” said Kevin Concannon, the department’s undersecretary for food, nutrition and consumer services.
Overall, food stamp fraud costs taxpayers about $750 million a year, or 1 percent of the $75 billion program that makes up the bulk of the department’s total budget for the Supplemental Nutrition Assistance Program.
Read tomorrow's Arkansas Democrat-Gazette for full details.
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