Close big-government loopholes to stop waste and fraud. Here’s how …
In 1996, President Bill Clinton declared that “the era of big government is over.”
That same year, then-Sen. Joe Biden (D-Del.) recalled being “pilloried” by his fellow Democrats for “suggesting that there be a mandatory work requirement for anyone receiving welfare.”
How things change.
Today, the era of big government has doubled, with President Biden’s government spending more than twice as much compared to 1996, adjusted to 2023 dollars.
Does President Biden really need twice the government today compared to less than 30 years ago? Have our problems doubled from a generation ago, to merit this kind of government in response? And are the taxpayers getting twice the value to match the spending?
Biden’s feelings on work requirements, on the other hand, took a 180-degree turn from then to now, with his insistence that work requirements be removed from the Republican plan on the debt ceiling.
What changed?
Only the Democrats’ priorities.
It used to be a point of agreement that work should come first over welfare, and loopholes that encourage waste and fraud should be closed.
Today, we can help address the runaway growth of government, close loopholes that encourage waste and fraud, and bring spending back in line with Americans’ needs all at once.
Here’s how.
First, Congress needs to fix a complicated bit of bureaucratic jargon called broad-based categorical eligibility, or BBCE. In short, 41 states and Washington, D.C. use this loophole as a workaround to allow people to receive food stamps without checking their assets, even if they don’t quality for food stamps.
With federal bureaucrats opening the loophole, it’s fraud by design. It’s an intentionally created system that allows folks with unlimited assets—even millionaires—to be eligible for food stamps.
That’s not hyperbole. Famously, one Minnesota millionaire applied for and received food stamps for 19 months, specifically to call attention to this issue. Going back to the lottery example, under President Obama, million-dollar lottery winners were found to be collecting food stamps—their winning jackpots were considered assets, not income, so their eligibility went unchecked.
It’s a loophole big enough to fit a yacht and a summer home through.
And it helped the number of food stamp recipients more than double from 17.1 million in 2000 to 41.1 million in 2022, while the cost of benefits exploded from $17 billion to $119 billion. At least five million people are currently enrolled in food stamps despite not meeting eligibility standards.
Congress needs to close this loophole. The No Welfare for the Wealthy Act will do just that.
Second, the way the government views government assistance needs to change.
Government assistance used to be a temporary help to those who truly need it, not a free-for-all with the taxpayers footing the bill. For those who are able to work, they should be encouraged and assisted, and prevented from getting trapped in a cycle of dependency. Research shows that welfare recipients who move to a job have seen their income double in the first year, and more than triple within four years.
But Washington, D.C. doesn’t want to listen. This BBCE loophole didn’t happen by accident—the Biden administration actually canceled a rule on the books that would have closed broad-based categorical eligibility in food stamps. It’s part of a trend: Biden’s pandemic-era eligibility standards erred on the side of banning eligibility and fraud checks in Medicaid instead of enforcing them to prioritize those who needed it most.
That’s a loophole big enough for the entire American Dream to fall through.
Third, it’s time for the taxpayers to have a say.
In Virginia, we’ve seen that spirit at work in Roanoke, with programs like Feeding Southwest Virginia’s mobile marketplace. It’s a place where food-stamp and EBT cards are accepted for fresh produce and other locally grown items. There’s even a tax credit in Virginia for farmers who donate their crops to local food banks.
That’s the spirit of Virginia and the spirit our federal government should be encouraging—the value of work and community, rather than decades of big government inventing new ways to spend as much as possible.
President Biden’s big-spending, big-loophole, big government has to end. That’s what the people demand from their elected representatives, and that’s what they deserve.
Ben Cline represents Virginia’s 6th District in the U.S. House of Representatives. Tarren Bragdon is the president and CEO at the Foundation for Government Accountability
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