Nebraska is restricting how recipients of cash welfare can spend their benefits, joining Florida in closing what critics have called a longstanding loophole in federal assistance rules.
On Oct. 9, Republican Gov. Jim Pillen directed the state to stop recipients of Temporary Assistance for Needy Families (TANF) funds from using the money on items such as tobacco, pornography, tattoos, psychic and fortune-telling services, and luxury watches.
TANF is a federal program intended to help low-income families “achieve economic security and stability.” Current federal rules already bar recipients from spending cash benefits directly at liquor stores, casinos or strip clubs, but the money could still be used to buy alcohol at grocery stores or pornography and other goods elsewhere, since those purchase points aren’t covered by the original restrictions.
States cannot unilaterally rewrite the federal requirements that govern TANF, but under guidance from the Trump administration, they can request federal approval for stronger state-specific restrictions on how the funds are spent.
Nebraska’s move follows action in Florida, where Republican Gov. Ron DeSantis announced in August that the state would block cash welfare from being used for tobacco products, drugs, pornography, tattoos, video games, fortune-telling services and other non-essential goods and services. The Trump administration approved Florida’s plan.
DeSantis said the change would protect “Floridians who genuinely need assistance” while guarding against fraud and abuse of taxpayer funds.
Cash welfare in both states had also been available, under the old rules, for purchases such as concert tickets, streaming subscriptions and spa treatments, according to the program’s longstanding structure.
Nebraska and Florida are so far the two states that have taken formal action to tighten these restrictions through amended state plans submitted to federal regulators.
