Welfare dollars tossed from strip clubs under GOP payroll package
By Peter Schroeder - 12/09/11 01:10 PM ET
A provision buried in the 369-page payroll tax extension package offered by House Republicans Friday would require states to crack down on the use of welfare funds in liquor stores, casinos and strip clubs.
The legislative package includes several high-profile extensions of expiring measures, such as the payroll tax break and unemployment benefits. Also, it would extend by one year the $16.5 billion Temporary Assistance for Needy Families Program (TANF) — but with a caveat. States could not receive the entirety of their grants under the program unless they prevent government assistance dollars from being used for more risque activities.
The measure would require states within two years to ensure that ATMs at such establishments do not distribute cash when Electronic Benefits Transfer (EBT) cards are inserted. If states fail to meet that timeline, the amount in TANF block grants they could receive would be cut by 5 percent.
It stems from legislation introduced back in May by Sens. Max Baucus (D-Mont.) and Orrin Hatch (R-Utah), the chairman and ranking member of the Senate Finance Committee. Rep. Charles Boustany Jr. (R-La.) introduced similar legislation in the House.
The lawmakers justified the bill by arguing that every assistance dollar spent on these activities was one dollar that could not go toward helping needy families buy necessities like food. The senators cited a California study that found that $3.9 million in benefits were spent in liquor stores, and $20,000 in "adult entertainment establishments" from January 2007 through May 2010.
"Every dollar kept out of the wrong hands is a dollar that goes toward helping families afford the items, such as food and shelter, that they need most," said Baucus when it was introduced.
The legislative language defines a liquor store as any establishment that sells "exclusively or primarily intoxicating liquors," while making clear that grocery stores that also sell liquor would not apply. It also states that ATMs in grocery stores that also include gambling outlets like slot machines would not be blocked from dispensing benefits cash.
As for strip clubs, the legislation prohibits the distribution of welfare funds at "any retail establishment which provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment."
