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How $30BILLION of taxpayers' money put aside for welfare pot became a 'slush fund' for states with lack of oversight: 'Fraud by design'
UK MAIL ^ | 8 February 2026 | JAMES GORDON

Posted on 02/08/2026 3:38:08 AM PST by dennisw

Despite the program's size, fewer families now receive direct cash assistance than in previous decades.

Federal data shows that about 849,000 families received monthly TANF payments in fiscal year 2025, down from approximately 1.9 million families in 2010.

Instead, states have increasingly directed funds to contractors, nonprofits and other government programs.

Nick Gwyn, a policy expert with the Center on Budget and Policy Priorities, said the shift reflects a broader transformation in how the program operates.

'The program has drifted away from the core purpose of supporting families with very little income,' Gwyn told the WSJ.

More than $30 billion in taxpayer-funded welfare money intended to help America's poorest families has instead beeen used as a 'slush fund' - diverted into programs ranging from college scholarships to government budget backfills.

The Temporary Assistance for Needy Families program, known as TANF, was created nearly three decades ago to provide direct financial support and services to struggling families.

Today, the program distributes about $16.5 billion annually in federal funds, supplemented by roughly $15 billion in state contributions.

But federal auditors and analysts say the program's structure, which gives states broad control over spending with limited reporting requirements, has made it difficult to track how billions of dollars are ultimately used.

States often use TANF money to finance programs with only indirect connections to helping poor families, said Hayden Dublois of the Foundation for Government Accountability. He described the system's lack of oversight as 'fraud by design.'

'There are very little, if any, safeguards,' Dublois told the Wall Street Journal.

He estimates that roughly one in five TANF dollars, or about $6 billion each year, is misspent.

(Excerpt) Read more at dailymail.co.uk ...


TOPICS: Constitution/Conservatism; Crime/Corruption; Culture/Society
KEYWORDS: democratcorruption; democratcrime; democratfraud; fraudbydesign

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1 posted on 02/08/2026 3:38:08 AM PST by dennisw
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To: dennisw

Keeping shoddy books and chaotic government is the Dems best friend. As they raid federal and state treasuries for their favorite NGOs and dialed in donors.


2 posted on 02/08/2026 3:42:17 AM PST by dennisw (There is no limit to human stupidity / )
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To: dennisw

We just can’t trust those states to do the right thing.


3 posted on 02/08/2026 3:42:50 AM PST by ComputerGuy
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To: dennisw

Lack of oversight? They knew what they were doing. Pre-meditated fraud.


4 posted on 02/08/2026 3:44:30 AM PST by PGalt (Past Peak Civilization?)
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To: dennisw

Who got rich?


5 posted on 02/08/2026 3:46:02 AM PST by Libloather (Why do climate change hoax deniers live in mansions on the beach?)
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To: Libloather

Who got rich? -—>>>>

“Instead, states have increasingly directed funds to contractors, nonprofits, NGOs and other government programs.”

************ My educated guess is that blue states are the champs here.


6 posted on 02/08/2026 3:52:27 AM PST by dennisw (There is no limit to human stupidity / )
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To: dennisw

The idea was “Block Grants” to the states, which was a good idea at the time, but that was before DEI took over at the state and city level. Now the only responsible government is in small cities, towns, and DC and God help us if we lose DC.


7 posted on 02/08/2026 4:23:33 AM PST by BobL (Trusting one's doctor is the #1 health mistake one can make.)
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To: PGalt; All

Liberals LOVE their big sloppy ‘government’!!!!


8 posted on 02/08/2026 4:36:46 AM PST by SMARTY (In politics, stupidity is not a handicap. Napoleon Bonaparte I)
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To: dennisw

It reminds me, Clinton and Obama retired multimillionaires.
Starting from middle class to almost billionaires in few years, without doing anything useful.
Biden family made killing too (10% for the big guy).
While Reagan and Bushes did not increase their net worth from presidency and Trump actually lost a lot of Money being president.


9 posted on 02/08/2026 4:39:29 AM PST by AZJeep (sane )
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To: dennisw

Never, ever forget who gave the crooks the money in the first place year after year after year...the uniparty Congress.


10 posted on 02/08/2026 4:48:56 AM PST by quantim (Victory is not relative, it is absolute.)
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To: dennisw
Since at least Obama , government programs like welfare, healthcare and other entitlements. government loans (especial student loans and SBA loans) , and all the various stimulus and, green energy and covid programs have been set up as vehicles for fraud.

The reason Democrats are so zealously pushing student loan forgiveness is because after 2008, the Obama White House was given control of student loans.

They dropped all standards and opened the rules for “schools” that qualified to receive student loan money to a bunch of flyby night and fraudulent school and Obama treated the student loan program as a slush fund for Democrat cronies and as back door reparations to the black community.

In fact a lot of the gifts we are seeing in the Somalia community got their start in the Obama era student loan fraud.

The Democrats learned that the threshold that they could get away with on student loan fraud was in the $30,000 range per student.

Now they are desperate to “forgive” these fraudulent student loans to get them off the books to hide the fraud and avoid criminal prosecution.

11 posted on 02/08/2026 4:52:50 AM PST by rdcbn1 (..when poets buy guns, tourist season is over................Walter R. Mead)
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To: dennisw

fed oversight on the ground needed in every state


12 posted on 02/08/2026 5:19:07 AM PST by ronnie raygun
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To: dennisw

Poverty is big business for far too many people.


13 posted on 02/08/2026 10:37:03 AM PST by lastchance (Cognovit Dominus qui sunt eius.)
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To: dennisw
Fraud by design

The foundation of every single appropriations bill, written by democrats since Andrew Jackson.

The fraud is baked in before the bill makes it into Committee.

The Founders knew that those seeking public office would be corrupt and self-serving.

The only defense would be to keep government at all levels as small as possible and on starvation rations for revenue.

Eliminating the 75% of government that is extra-Constitutional and repealing the 16th Amendment to dry up the funding would go a long way to eliminating the fraud.

Requiring a separate Appropriations Bill for each individual account as the founders intended, and preventing “Congressional Language” from being attached to a bill, would all but eliminate fraud, because the juice wouldn’t be worth the squeeze.

14 posted on 02/08/2026 11:01:15 AM PST by Natty Bumppo@frontier.net (We are the dangerous ones, who stand between all we love and a more dangerous wor)
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To: BobL

“Block Grants” to the states, which was a good idea at the time”

Wrong Republican NIXON was the worst president of my 82 years.
Block Grants was NIXON’s way to violate the 10th Amendment and get away with it. Remove government decisions as far away from the people and reality as possible. Pour money into a SWAMP of DELOITTE, ACCENTURE, etal and make the voters focus on the poor.

DELOITTE IES Integrated Eligibility System is the gatekeeper that makes much of the fraud possible, and is fraud itself of course...of of the biggest fraudsters in the swamp.


15 posted on 02/08/2026 11:15:34 AM PST by spintreebob
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To: quantim

This and other scandals illustrate how Congress couldn’t care less about oversight of taxpayer funds.

Congress and Congress alone is responsible for debauching our currency.

We do not hate the US Congress enough.


16 posted on 02/08/2026 12:38:09 PM PST by Jacquerie (ArticleVBlog.com)
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