Ferrari drivers on food stamps — how states help scammers game welfare
By Andrew Mcclenahan
Published on April 22, 2026.
The Foundation for Government Accountability (FGA) has revealed that 43 states and Washington, DC, use a federal loophole known as Broad-Based Categorical Eligibility (BBCE) to bypass federal Supplemental Nutrition Assistance Program eligibility limits on income, assets or both. This loophole allows anyone who touches a pamphlet or receives the phone number deemed "categorically eligible" for food stamps, even millionaires. This method distributes benefits intended for the truly needy to otherwise ineligible individuals. The loophole was introduced by the Clinton administration and expanded by the Obama administration. Researchers from the FGA found that food-stamp enrollment data in a single representative state matched recipients with jobs, addresses, car registrations and more, then redacted personal details before the researchers’ review. The study also found that thousands used Social Security numbers that federal databases could not verify.