Limits on Electronic Benefit Transactions

Congress closes ‘strip club loophole’, By Pamela M. Prah, February 28, 2012, Stateline.org: “States are now required to prevent welfare recipients from using ATM machines in casinos, liquor stores and strip clubs to spend or access their benefits. The new policy was tucked in the payroll tax cut bill that Congress passed earlier this month, which also extended the Temporary Assistance for Needy Families (TANF) or welfare block grant through the end of the fiscal year. The needy generally get welfare payments and other public assistance on debit cards known as Electronic Benefit Transfer (EBT) cards, rather than checks. States now will have to adopt policies to block welfare benefits from being used in any EBT transaction in liquor stores, casinos, gaming estalishments or adult entertainment or risk losing federal funds. The U.S. Department of Health and Human Services will spell out exactly what kind of policies states must implement…”