Trump Proposal Seeks to Crack Down on Food Stamp ‘Loophole’

WASHINGTON (AP) -- President Donald Trump's administration is proposing to end an option that has allowed states to exceed federal eligibility thresholds for food stamps.

Dozens of states have gotten around federal income or asset limits for the Supplemental Nutrition Assistance Program by using federal welfare grants to produce brochures informing food stamp applicants about other available social services. As long as the brochures were paid for with federal welfare money, states could bypass income and asset restrictions for food stamps.

The tactic had been promoted by former President Barack Obama's administration as a way to allow low-income households to increase their savings and earnings before losing food stamps. But Trump's administration describes it as a "loophole" to federal law.