Madam Speaker, I move to suspend the rules and pass the bill (H.R. 3567) to amend title IV of the Social Security Act to require States to implement policies to prevent assistance under the Temporary Assistance for Needy Families (TANF)…
Madam Speaker, I move to suspend the rules and pass the bill (H.R. 3567) to amend title IV of the Social Security Act to require States to implement policies to prevent assistance under the Temporary Assistance for Needy Families (TANF) program from being used in strip clubs, casinos, and liquor stores, as amended.
Madam Speaker, I ask unanimous consent that all Members have 5 legislative days in which to revise and extend their remarks and to include extraneous material on the subject of the bill under consideration.
Madam Speaker, I yield myself such time as I may consume.
I rise today, Madam Speaker, in support of H.R. 3567, a bill to ensure taxpayer dollars in the Temporary Assistance for Needy Families program are used as intended, and that is to provide support for low- income families and children and to help them move from welfare to work.
The TANF program was created in 1996, replacing the prior welfare program with one focused on work, providing short-term help, child care, and other work supports to get people back on their feet and earning a paycheck. In the years following, TANF was lauded as one of the most effective reforms in our social welfare system in American history. Employment rates of those on welfare surged, caseloads plummeted, child poverty rates fell, and taxpayers were confident they were actually helping poor families, knowing that they were providing them with a hand up and not a handout.
Unfortunately, Madam Speaker, an issue has arisen in TANF that is eroding public confidence in the program. This is the issue of TANF funds, money meant to help poor children and their families, being accessed and used in liquor stores, strip clubs, and casinos. What started less than 2 years ago as research by one reporter in Los Angeles has grown into dozens of investigations across the country, with each new investigation adding to the story of how millions of dollars in TANF funds have been accessed in these locations.
Let me just mention some of what has been uncovered:
An Arizona investigation found welfare funds were accessed in liquor stores over 100 times in just 3 months;
A California reporter uncovered that welfare recipients cashed out over $4.8 million in TANF funds in casinos over a 3-year period;
A Colorado news organization found cash was being withdrawn in strip clubs, casinos, and liquor stores, despite a State law on the books prohibiting such transactions;
An investigative report in Georgia revealed $150,000 in TANF money was withdrawn in liquor stores, bars, and nightclubs;
KING 5 News in Seattle found 13,000 TANF recipients who had collectively withdrawn approximately $2 million from casinos in 2010.
Madam Speaker, this is unacceptable. This is unacceptable to the American people.
When the L.A. Times revealed their shocking statistics on the millions in welfare that had been accessed in casinos, liquor stores, and strip clubs, the Governor of California took action to block these transactions immediately. Washington and New Mexico have prohibited access to welfare benefits in casinos. Texas prohibits the use of welfare benefit cards in liquor stores and casinos as well.
The legislation before us today would ensure that taxpayer dollars in the TANF program are being used as intended, and that is to assist poor families with their basic needs and to support them in their efforts to become self-sufficient. Under this bill, States would be required to block welfare benefit card transactions in casinos, liquor stores, and strip clubs and would be penalized if they do not implement such policies within 2 years of this bill becoming law.
This bill will also help restore the public's trust in the integrity of the program while ensuring families across the country continue to receive the assistance they need to move from government dependence to independence.
The bill we're considering today simply consists of one of the TANF provisions in H.R. 3659, the Welfare Integrity and Data Improvement Act that
was unanimously passed in the House in December. A provision closing what has been called the ``strip club loophole'' was also included in the Middle Class Tax Relief and Job Creation Act that also passed the House in December and is now in conference with the Senate.
With the exception of several technical changes suggested by the Department of Health and Human Services, it is also identical to bipartisan legislation introduced in the Senate last year by Senator Hatch and cosponsored by Senator Baucus, the ranking member and chairman of the Senate Finance Committee, respectively. I thank them for their hard work on this bill as well.
Passing this bill today will send three clear messages:
First, the House is serious about this bipartisan, bicameral reform becoming law, ensuring welfare funds are spent on families and children as intended;
Second, conferees on the yearlong payroll tax, UI and TANF extenders bill, should include this bipartisan provision in their conference agreement;
Third, if those conference discussions break down, the Senate will be able to join us in quickly passing this important bipartisan reform and getting it to the President's desk.
I urge all my colleagues to support this important legislation.
I reserve the balance of my time.
Madam Speaker, I am very pleased to yield such time as he may consume to the distinguished chairman of the Subcommittee on Human Resources on the House Ways and Means Committee, the gentleman Geoff Davis from the great State of Kentucky, the author of the TANF reauthorization, who cares deeply about the integrity of this program.
I want to thank the gentlewoman for raising the concern about ensuring that TANF recipients have adequate access to their benefits in a variety of locations. That's a very important consideration.
This bill requires States to block access to welfare benefits in casinos, liquor stores, and strip clubs. However, we know some grocery stores, convenience stores, and local markets may sell groceries but also sell alcohol and that some States may have gambling machines there as well. Because of this, the bill allows States to make accommodations for such stores so that they would not have to block transactions in places that sell groceries but that also sell alcohol. If a grocery store happens to have a gaming machine or if it's located in the same building or complex as a casino, there are provisions made in this.
So I thank the gentlewoman for raising this issue, but I'm glad that we can ensure the integrity of this program. I would submit the most important thing we can do is to ensure the integrity of the program so that it is there for the children and families that need it. Yet we want to ensure that there is not an overt abuse of these funds in strip clubs, casinos, and liquor stores while allowing for reasonable exceptions.
Also, I thank the gentlelady and the ranking member from Texas for raising the concern as to the issue of implementation cost, and I want to address that as well.
Some States have expressed that we have a loophole that could potentially be too costly or too difficult to close. However, I want to point out that these difficulties have been overstated. Washington State said the same thing when it was told $2 million in TANF funds were being withdrawn in casinos in 1 year.
Madam Speaker, I submit for the Record an article from KING 5 News in
Seattle, Washington, that speaks directly to this issue. It talks about the surprising number of TANF withdrawals in casinos in the State, and it reports the State said the same things that we're hearing today in that it may be hard to close this loophole or that it would be too expensive to stop.
This article goes on to read:
``It turns out the fix wasn't difficult or expensive. For the Iron Horse Casino, it took about 4 minutes on the phone. Kealy,'' the casino owner, ``says, in minutes and at no cost, his ATM vendor blocked EBT cards . . . Kealy and many other casino owners didn't wait for orders from the State. They already reprogrammed their ATMs . . . He's a board member of the Washington Restaurant Association, which he says is preparing to ask bars and taverns--businesses that are more alcohol than food oriented--to block EBT access to their cash machines. Kealy says that would mean another 2,000 ATMs couldn't be accessed for welfare cash benefits.''
So I appreciate the concerns about the cost, but I believe closing this loophole simply won't be as difficult as some are making it out to be.
[From KING5.com, Sept. 23, 2010]
More Businesses May Pull Plug on Welfare Cash Cards
(By Chris Ingalls)
Many casinos in the state have taken steps to cut off the
flow of cash to welfare recipients. This follows a KING 5
Investigation that showed millions of tax dollars being
dispensed through casino cash machines.
Now we've learned thousands more ATMs could be blocked at
other businesses where welfare dollars may not belong. Bars
and taverns in Washington may follow the lead of casinos,
which have already started reprogramming their ATMs so they
won't dispense cash from EBT cards that are distributed to
welfare recipients.
State records show the two ATMs at the Iron Horse Casino in
Auburn dispensed $780 in welfare in the month of July alone.
``Whew! It's unbelievable,'' said Iron Horse customer Louie
Vaccaro. ``We have so many problems in this state. To hear
something like that is mind boggling.''
``I was surprised by that,'' says the casino's owner Chris
Kealy. ``I did not know those cards could be used at these
machines.''
Kealy saw our stories last week that showed more than $2
million in welfare cash withdrawn from ATMs in and around
casinos in the last year. Initially the Department of Social
and Health Services, DSHS, said putting a stop to those
questionable withdrawals might be too difficult or costly.
``If we find that this is a small incidence that's
happening, it might not justify the expense that it would try
to prevent that activity,'' said Deputy DSHS secretary Troy
Hutson in a story we aired last week.
It turns out the fix wasn't difficult or expensive. For the
Iron Horse Casino, it took about four minutes on the phone.
Kealy says in minutes, and at no cost, his ATM vendor blocked
EBT cards--debit-type cards which DSHS uses to distribute
cash benefits to 68,000 of the state's most needy residents.
Organizations representing both tribal and non-tribal
gambling establishments in Washington pledged their full
support when DSHS's secretary made an announcement two days
after KING 5 Investigation aired.
``I want to shut down every ATM in gambling establishments
that has EBT access,'' said Susan N. Dreyfus.
Kealy and many other casino owners didn't wait for orders
from the state. They already re-programmed their ATMs. And
Kealy isn't stopping with his own casino. He's a board member
of the Washington Restaurant Association, which he says is
preparing to ask bars and taverns--businesses that are more
alcohol than food oriented--to block EBT access to their cash
machines. Kealy says that would mean another 2,000 ATMs
couldn't be accessed for welfare cash benefits.
``The taxes you are paying are supposed to help fund basic
needs, human services,'' Kealy says. ``We're all in this
together. I'm supportive of that. But I'm not supportive of
those dollars being used in facilities like this.''
Gambling is one of the few restrictions on the use of
welfare cash. It is illegal. Welfare cheats can still get
their money at other ATMs, but casinos hope to stack the deck
against them and send the message that welfare dollars aren't
welcome on gaming floors.
Madam Speaker, I reserve the balance of my time.
Madam Speaker, I am pleased to yield such time as he may consume to the chairman of the Human Resources Subcommittee, Mr. Davis.
Madam Speaker, I yield myself such time as I may consume.
I thought I made it clear, and I think Chairman Davis did also, earlier, that there are provisions to allow for exceptions as long as the facility serves food. We're talking about stores that purely sell liquor. So I think the gentlelady's concerns are addressed with the bill as written.
Furthermore, I would just say that on this side of the aisle, we care very deeply about this program. There's
broad agreement it's a valuable program. It's worked.
If you care about children and you care about needy families in this country, then you should care about ensuring the integrity of the program and making sure that the dollars that taxpayers put forth for these needy families, these needy children, actually go to those families and not buying liquor and patronizing strip clubs and going to casinos.
That's what this bill intends to address. That's what it does address. It creates the proper flexibilities for the concern that the gentlelady has and others on the other side of the aisle have about access. If food is sold, access will not be denied.
I reserve the balance of my time.
If food products are sold at a store?
If any type of food product, including milk, is sold at a store, States can except those from the provisions in this bill.
Would the gentlewoman yield?
The definition is staple foods, which include milk.
Madam Speaker, I would ask if the gentleman has yielded back all of his time?
I am pleased to yield the remaining time to the gentleman from Kentucky (Mr. Davis), the chairman of the subcommittee, a gentleman who has diligently worked in good faith with the ranking member to reauthorize a TANF program with integrity that ensures that children and needy families get the assistance that they need.
Madam Speaker, I yield myself the balance of my time.
This bill closes a loophole that, if left uncorrected, would continue to allow millions in welfare funds to be distributed in liquor stores, casinos, and strip clubs.
Now that this issue has been highlighted by news organizations across the country, we must stop this abuse of taxpayer funds and ensure this money is used as it should be--to help poor children and families make ends meet.
A number of States have already closed this loophole, but this bill will help restore the public's confidence in the program and ensure that States work together to end this abuse once and for all.
I strongly encourage my colleagues to support this measure, as they have done previously, so that we can ensure taxpayer dollars are used as they should be.
Madam Speaker, on that I demand the yeas and nays.