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U.S. Bill aims to keep welfare money out of Strip Clubs

Just as the beginning of the year 2012, a new Republican-sponsored bill “H.R. 3567” or commonly known as the “Strip Club Bill” from the U.S. House of Representatives was passed unanimously with an overwhelmingly 395 votes in favor, against 27 votes. According to the man who introduced the bill, Rep. Charles Boustany, this would prevent wasteful expenditures and reports of “fraudulent misuse of funds” in this time of recession.

The Strip Club Bill will entail U.S. welfare recipients to be banned from using their benefits at strip clubs, liquor stores and casinos that are under the U.S. government’s TANF or also known as Temporary Assistance for Needy Families Program.

In 2010, the LA Times reported that more than $12,000 from the Temporary Assistance for Needy Families program was dispensed at strip clubs in California between 2007 and the end of 2009. Also, nearly $4.8 million was withdrawn from ATM’s at casinos and poker rooms from 2007 to 2010.

Hence, some recipients were called into question after these media reports proving that they use their TANF benefits provided by the U.S. Government in strip clubs, liquor stores and casinos. In addition, according to reports, some recipients are proven to have been accessing their benefits out of state, including Las Vegas casinos, shops at Hawaii and on cruise ships.

TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

The Temporary Assistance for Needy Families (TANF) or simply known as “Welfare”, supplies cash assistance to marginalized working families through an electronic benefit transfer card (ATM), which can be used like a debit card. Welfare payments or the TANF are part of welfare benefits which are provided and regulated by state governments. The purpose of the TANF program is to bring income into households where there is minimal or none. Hence, making children, the elderly or other dependents that cannot work, can be taken care of.

According to the most recent data of the U.S. Department of Health and Human Services (DHHS), More than $4.5 million people nationwide received benefits from the TANF program. About 1.8 million families are receiving a few hundred federal dollars each month that is meant to be used for food, rent and other necessities.

Though some states may differ, receiving of welfare payments are generally given within the first week of each month. In addition, cash allowance benefits for financial assistance are state regulated and the TANF allowances paid might vary based on different criteria’s. However, the standard expectation of the TANF allowance for a family of 4 is $900, while a single person household can expect an average of up to $300.

Who can receive these welfare benefits?

If anyone is pregnant in the household
Produces minimal monthly household gross income
If there are migrant or seasonal workers in the household
Cannot sustain the rent or mortgage payments
Cannot sustain the utility bills for the household
Cannot provide other necessary and required living expenses
Minimal individual gross incomes for each family member
Actual available cash on hand for the household including checking and savings accounts
Whether any other benefits are being received in the home
Disabled or infirmed persons in the home
If any family members live outside the home
Any criminal convictions within the home

However, a basic criterion for the TANF program is that recipients should make an effort towards leaving the program someday. With that, vocational rehabilitation services are being given to recipients that will provide job training and skills that will help them obtain profitable employment on their own.

Below is a list of Basic Eligibility Requirements:

The recipient must be 18 years of age.
You must be a citizen of the United States or somehow a qualified non-citizen legal resident.
You must be a legal and permanent resident of the state in which you are applying.
Lack of employment opportunity due to lack of places of employment or lack of job skill.
Must have the commitment to self-sufficiency. An agreement is made for the heads of household stating that they must become self-sufficient within a certain timeframe.
Committed to complete accuracy and honesty during the program.
Must be willing to cooperate and comply with all rules, regulations and requirements while receiving aid.
A household financial budget must be created and adhered to.
All financial possessions must be revealed. This includes cash within the home, in checking or savings accounts and items of value in possession such as jewelry or electronics.
Dependent children must be living in the household.
All minors must attend school during school days.
All minors and dependants must be fully and appropriately immunized.

It is true that a family of 4 cannot live on $900 a month. Therefore, the institutionalized program is not a complete replacement of income and benefits. It was set up to give balanced measures for those in need.

EFFECTS OF H.R. 3567

The intention of Rep. Charles Boustany is to ensure that government welfare funds are well spent as intended on families and children. According to him, H.R. 3567 will protect the public interest by making sure that the money will help Americans get back on their feet as what the welfare program is for that very purpose. However, if this bill is passed, it will absolutely have a negative impact on casinos and other establishments, especially in strip clubs. A lot of workers and also consumers in these establishments will absolutely suffer.

If we’ll all think about it, the intention for creating this bill sounds great right? However, there are still pending debates about this bill at the U.S. House of Representatives. Certainly, the U.S. government must consider a lot of pros and cons before they would pass this bill and amend it as a law.

During the debate, the democrats argued that the bill could prevent some families from buying food in stores that also sell liquor which is very common in the American setup. Also, a lot of low-income Americans live in areas where banks are limited, making it hard to find an ATM. Banning the recipients from using their electronic benefit transfer cards in liquor stores or casinos would require them to travel farther or pay higher fees only to access their benefits. However, the republicans stated that the bill will give states the authority to exempt these stores from the ban. Therefore, everything must be regulated.

According to Democratic Rep. Gwen Moore, the bill would only "humiliate and marginalize" poor people. This legislation isn't really of need and that the congress has a lot more different important issues to attend to. However, this doesn't mean that they should avoid doing the little things. The U.S. Government as a whole must review the bill’s pros and cons. It must consider every aspect that H.R. 3567 has to offer before it will be passed and be amended as a law.