Report: How Food Stamps Benefit Corporations (EBT is Big Business)
Posted on November 17, 2012 by Nick Sorrentino
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An investigation by the Government Accountability Institute has found that:
Three companies – J.P. Morgan EFS, Affiliated Computer Services, and eFunds – provide EBT services for 49 states and 3 US territories.
Since 2004, 18 of 24 states who contract with J.P. Morgan to provide welfare benefits have contracted to pay $560,492,596.02. New York alone has a seven-year contract worth $126,394,917.
Projected average food stamp spending post-recession will be 175% greater than prerecession average spending, from $28 billion to $77 billion.Since 2009, 32 states have followed the USDA’s suggestion to use Broad Based
Categorical Eligibility “as a way to increase SNAP participation and reduce State workloads.”
Changing the rules for eligibility, along with state-level changes in
application methods, has contributed to a 70 % increase in food stamp participation from 2007 to 2011.
Lax security by EBT processors and states invites food stamp fraud, often through social media. There are understaffed fraud investigation units at both the federal and state level. For example, Florida has just 63 staff positions to police approximately 3 million EBT users state-wide. These investigators not only handle TANF and SNAP eligibility fraud, but also EBT trafficking, Social Security Disability and Medicaid eligibility fraud, Emergency Financial Assistance for Housing, and Low Income Energy assistance, among many others.
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This is just no surprise. Argh!
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