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Bill May Enforce New Unemployment Benefit Limitations

iStock Debit Card and Wallet Small Bill May Enforce New Unemployment Benefit LimitationsMembers of the House of Representatives will vote this week on a bill that would forbid funds dispersed by the Temporary Assistance for Needy Families program, TANF, from being used at liquor stores, strip clubs and casinos.

Funds dispersed through this federal assistance program are typically sent electronically to benefit recipients (indigent American families with dependent children) via state-issued Visa debit cards.

How can funds dispersed by TANF be tracked?

There is a surplus of free-standing ATMs, unaffiliated with a specific bank, in low-income communities where many TANF benefit recipients reside, that habitually charge high usage fees.

These high fees persuade cardholders to use the debit option, and inadvertently provide a trail of transaction data for lawmakers and others to decode the spending habits and trends of TANF benefit recipients.

Data that tracked usage of TANF funds at strip clubs, liquor stores, and casinos is a big reason why many critics believe the bill presented to forbid this type of spending has a great chance of passing by the end of this week.

Who will be affected if this bill is passed?

While passing this bill may limit the places TANF benefit recipients can use their debit cards, the recent data gathered about unsavory TANF benefit usage may lead to more budget cuts.

TANF has already received north of 20 percent in budget cuts since its creation by the Personal Responsibility and Work Opportunity Act instituted under President Bill Clinton in 1996.

If lawmakers decide to pass this bill, the irresponsible benefit usage of some could hurt honest TANF benefit recipients who are dependent on this assistance to make ends meet.

Continue to check the Zing! website for updates on the TANF benefit bill.

 

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About Jonathan Slappey

Jonathan has a passion for journalism, sports, and cashmere sweaters. He lists playing basketball as a higher priority than eating food, and rumor has it he even sleeps with his basketball. When he’s not reading up on world news, and writing about politics or personal finance, Jonathan can be found cheering on the Lions at Ford Field or attempting to convince Cleveland Cavaliers owner Dan Gilbert to add him to the active roster.

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