Governor Pillen Signs Executive Order Restricting TANF Funds from Inappropriate and Nonessential Purchases

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Governor Pillen Signs Executive Order Restricting TANF Funds from Inappropriate and Nonessential Purchases

LINCOLN, NE - Today, Governor Jim Pillen signed an Executive Order (EO) directing the Nebraska Department of Health and Human Services (DHHS) to submit a State Plan Amendment to the U.S. Department of Health and Human Services (HHS), Administration for Children and Families (ACF). The amendment will strengthen restrictions on how Temporary Assistance for Needy Families (TANF) Aid to Dependent Children (ADC) cash benefits may be used, ensuring taxpayer resources are spent only on essential needs.

"While Nebraskans are more than willing to help families in need, allowing hard-earned taxpayer dollars to be spent on tobacco, gambling, and video games is completely unacceptable," said Gov. Pillen. "The inappropriate use of public funds will end at my direction."

TANF ADC is a federal program that provides temporary financial assistance to low-income families with children to help cover basic needs such as food, clothing, shelter, and other necessities. Recipients also participate in workforce engagement activities while receiving benefits. Qualified families receive benefits through a prepaid debit card or direct deposit into a bank account.

"Our responsibility at DHHS is to ensure that our safety-net programs are designed around the people they are intended to help," DHHS CEO Dr. Steve Corsi. "This restriction is a continuation of this effort to improve the health and stability of our families."

"Nebraskans work hard for every dollar they earn. When some of those dollars go to cash welfare, Nebraskans are making a promise to their neighbors: If you hit a rough patch, we've got your back and we'll help you get back on your feet. Too often, that promise is broken-and it's the truly needy who suffer the most," said MiMi Greene state government affairs director for the Foundation for Government Accountability. "Every dollar wasted on tattoos, vape pens, or psychic readings is a dollar that cannot be spent feeding, clothing, and sheltering families in need."

Under existing federal law and state regulation, TANF ADC funds cannot be used for point-of-sale transactions at the following types of establishments:

• Liquor stores
• Casino, Gambling Casino, or Gaming Establishment, or
• Any retail establishment that provides adult-oriented entertainment

If approved, the State Plan Amendment will expand prohibited purchases to include:

• Tobacco, Nicotine, Vaping, and other associated products
• Drugs, intoxicants, and related products
• Pornography, sexually explicit materials, and adult-oriented goods or services
• Entertainment goods, subscriptions, and services such as entertainment tickets, theme parks, and subscriptions/memberships
• Body art, body piercings, cosmetic services, and luxury items such as tattoos, spa services, and tanning
• Psychic, fortune-telling, and divination goods or services
• Political contributions
• Lottery tickets and entries, sports wagers, and bets
• Music, video, and gaming streaming subscriptions
• Video games, in-game currency, downloadable entertainment content, and virtual goods
• Jewelry and luxury watches, and
• Cash withdrawals will only be permitted through cash-back transactions at SNAP-authorized retailers or at financial institutions.

DHHS will fully comply with the Governor's EO and will submit a State Plan Amendment to ACF immediately. ACF has up to 60 days to approve the amendment. Once approved, DHHS will implement the amendment as quickly as possible and provide a timeline upon obtaining federal approval.

"DHHS is grateful to Governor Pillen for insisting on the highest and best use of taxpayer dollars with this initiative, and we're looking forward to working with his office for the submission and implementation of these changes," said Barbara Lacina, director of the Office of Economic Assistance (OEA). "Public assistance comes with a public responsibility, and we should continually examine whether our programs have the right safeguards, oversight, and accountability."

Executive Order 26-23