No, it's not. You're thinking of food stamps (which are, in fact, limited to food and certain other specified products). The benefits in question here are cash benefits (e.g., the equivalent of what would previously have been a welfare check). They are intended not only for purchasing food at grocery stores, but also rent, bills, etc.
I’m sure that if we went through the expense of trouble of ending the availability of cash and made them pay the rent, bills, etc, electronically it would still be cheaper than what we’re doing now.