Pennsylvania investigators have announced that over the summer, a total of 103 welfare recipients have been charged with fraud. This information comes from the Office of Inspector General.
All but one of the recipients face felony convictions, with maximum penalties of seven years in prison and $15,000 in fines. We file the remaining case as a minor offense. For the duration of their dishonesty, defendants who deceive the state by using food stamps, financial assistance, or subsidized daycare programs will not be eligible for benefits.
“Each of these charges is a reminder of our responsibility to protect the integrity of the commonwealth’s resources,” State Inspector General Lucas M. Miller stated. “We continue to focus on ensuring that public assistance programs serve the intended purpose of assisting those who are truly in need.” We are pleased to return the recovered cash to aid people throughout Pennsylvania.
The inquiry discovered that in July and August, the defendants “either trafficked their public assistance or misrepresented their household circumstances,” which cost taxpayers more than $680,000. The administration stated that excluding the recipients from future benefits will reclaim the money lost.
In a statement, Department of Human Services Secretary Val Arkoosh stated that the government emphasizes protecting public assistance programs, “which are a lifeline for people in difficult situations.”
“DHS works diligently to ensure the benefits we administer remain available to those who deserve them, and we are proud to partner with OSIG every day to refer suspected public assistance fraud and maintain the responsible stewardship of these essential programs,” she reported.
The cases highlight legislators’ worries about the exploitation of safety-net programs, as well as the department’s need to prioritize measures that better protect public funds.
This isn’t an isolated instance either. Data from the OSIG’s 2017-18 Fiscal Year Annual Report indicates that the agency prevented Pennsylvania from paying benefits incorrectly, saving almost $75 million. It also estimated a cost-benefit ratio of approximately $12 for every dollar spent on investigative efforts.
During a 2023 committee hearing, the Foundation for Government Accountability said that flaws in program design transfer funds away from those who actually need them and into the hands of individuals with higher incomes, including millionaires.
Back in 2019, during his tenure as attorney general, Gov. Josh Shapiro advocated for legislative improvements aimed at combating Medicare fraud, which he believed was costing Pennsylvania $3 billion annually.
Legislators warn that it is a costly issue that will only intensify as the list of recipients becomes longer each year.
In 2000, Pennsylvania had 760,000 people on food assistance. Now, about 2 million people have received them. Medicaid has grown similarly: in 2000, the state spent $10.7 billion on 1.3 million residents; today, it spends nearly $47 billion to give Medicaid benefits to 3.3 million residents.
Welfare expansion has outpaced population growth; Pennsylvania has only added 700,000 people since 2000. The Department of Human Services currently dominates the state budget with safety net spending.
Though human services consume a large portion of all state budgets, the Commonwealth stands out: Pennsylvania’s Medicaid expenditures as a proportion of its budget are the highest in the country, according to Foundation for Government Accountability research.
In August, the state extended the employment requirement exemptions for food stamps until August 31, 2025. According to state data, approximately 200,000 of the more than 2 million SNAP enrollees fell into this group.
Without a waiver, able-bodied adults would be required to work at least 20 hours per week or complete an equivalent amount of time in a workforce development program. Until the condition is completed, benefits will be limited to three months over three years.
In a letter to Arkansas, 39 House Republicans warned that removing the job requirement prolongs government dependency and exacerbates the state’s labor crisis.
Supporters argue that many programs extend beyond food handouts. According to the Urban Institute, able-bodied people are a “challenging” demographic to serve. These recipients are more likely to be homeless or have a mental or physical condition that does not qualify as a handicap, even if it makes employment impossible.
