Kansas could lose millions for limiting welfare recipients to $25 at ATMs

[TexasTowelie]

WASHINGTON — A first-of-its-kind provision that prevents welfare recipients in Kansas from withdrawing more than $25 a day from an ATM might violate federal law, and could jeopardize the state’s federal funding if not amended.

The Social Security Act requires states to ensure that recipients of Temporary Assistance for Needy Families, or TANF, “have adequate access to their cash assistance” and can withdraw money “with minimal fees or charges.”

At stake is about $102 million in TANF block grant funds that Kansas receives every year from the federal government.

The state’s controversial ATM limit was added as an amendment to a welfare overhaul bill signed in April by Gov. Sam Brownback, a Republican. The new law also bars welfare recipients from spending their benefit money at certain places, including movie theaters, massage parlors, cruise ships and swimming pools. It also sets stricter eligibility requirements and shortened the amount of time people can receive assistance.

Read more: http://www.mcclatchydc.com/2015/05/17/266888/kansas-could-lose-millions-for.html

[NoJusticeNoPeace]

1. I wish they would just go on the record, they hate poor people and want them to die

[Human101948]

2. Isn't there a fee levied each time they use those cards?

I think that is the real motivation behind this law...it will enrich some banking campaign contributor.

[malokvale77]

3. I think you hit the nail on the head.

Same as the SSA forcing people into direct deposit so the banks can charge $12.00 monthly fees.

Quite the racket, isn't it?

[exboyfil]

4. The state also charges a $1

and effectively they can only get $20 since most ATMs work in $20 increments.

It is simply disgusting.

http://www.mcclatchydc.com/2015/05/17/266888/kansas-could-lose-millions-for.html

Schott pointed out that ATMs don’t permit withdrawals in five-dollar increments, so people would only be able to withdraw $20. And they would have to pay any fees charged by the banks on top of a $1 fee assessed by the state for all ATM withdrawals.

Read more here: http://www.mcclatchydc.com/2015/05/17/266888/kansas-could-lose-millions-for.html#storylink=cpy

[malokvale77]

5. Yes...

I"ll amend that to "disgusting racket".