Unfair Gaps🇺🇸 United States

Public Assistance Programs Business Guide

43Documented Cases
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All 43 Documented Cases

Participant Churn and Noncompliance Due to Burdensome Reporting Processes

$100k–$500k per year in lost federal performance incentives, increased churn-related admin costs, and additional support needed for reapplications and appeals in larger jurisdictions.

Cumbersome work participation reporting—such as frequent in‑person submissions of paper timesheets and complex documentation requirements—creates frustration for TANF recipients and contributes to missed reporting, sanctions, or case closures. This undermines program goals and can increase downstream costs.

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Inflated or Misreported Work Participation Hours Enabling Benefit Abuse

$100k–$1M+ per year in improper payments for larger jurisdictions, within the broader category of TANF improper payments linked to documentation and reporting weaknesses.

Weak verification controls in work participation tracking systems allow some participants or providers to over‑report or fabricate work hours, resulting in TANF benefits being paid despite noncompliance with work requirements. This constitutes benefit abuse and erodes program integrity.

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Lost Case Management Capacity Due to Administrative Tracking Burden

Equivalent of 5–15% of caseworker FTEs lost to administrative tracking tasks, often translating to $250k–$1M per year in foregone service capacity for mid‑sized agencies.

Caseworkers and supervisors spend large portions of their time entering, reconciling, and explaining work participation data instead of engaging clients, reducing effective case management capacity. This bottleneck limits the number of participants supported and reduces the quality of employment services.

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Systemic SNAP Eligibility Fraud and Trafficking Losses

SNAP overpayments were about $5.2 billion in FY2022 (8.2% payment error rate on $63.5B in benefits); estimated trafficking has been in the $1–2 billion per year range in recent years (USDA OIG and FNS program integrity reports).

SNAP routinely pays benefits to ineligible households and is subject to trafficking (selling benefits for cash), representing a direct bleed of federal and state funds. Federal audits document billions in overpayments and trafficking annually tied to weaknesses in eligibility determination, verification, and benefit issuance controls.

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