Food stamp fraud and abuse is an issue I have been looking at to see if there is anything that can be done at the state level to fix the problems. Many times you see people selling their food stamp cards, buying junk food or even fine steak and lobster with their EBT cards. It burns people (and me) up.
If I had a dollar for every call I received that said something along the lines of "The person in front of me in the checkout bought a (wedding cake, shrimp, lobster, dry ice, prime rib, other junk food) And then pulled out an EBT card and paid for it with my money! I can't afford to buy those things for myself and I work!" or "As I was walking into the supermarket someone walked up to me and offered me $150.00 worth of food on their EBT if I gave them $75.00 in cash" I would be rich.
Mostly the fed ties the hands of the states. This is similar to trying to get drug testing for unemployment benefits. The fed allows the states to administer the program but the rules and regulations on it are such that we cant do anything to actually improve or fix problems with the program. I am still researching to see if there is a way around the federal regulations on this one. I will keep you updated.