Just when you think they have uncovered all of the fraud (I know, that’s naive), there is another one.

As of 2026, there are 46 states that have implemented Broad-Based Categorical Eligibility (BBCE) policies for SNAP.

According to the Cato Institute:

Congress established firm income and asset limits to target households with the greatest financial need. Yet, states have found a way around these rules.

Through a policy called broad-based categorical eligibility (BBCE), states can bypass federal eligibility standards and draw down more federal dollars. The result: Millions of people are receiving SNAP benefits that Congress never intended.

Federal law provides two pathways to qualify for SNAP:

• Statutory eligibility: gross income at or below 130 percent of the federal poverty level (FPL)—$2,292 for the average two-person household—net income (gross income minus deductions for certain expenses) at or below 100 percent of FPL, and countable assets under $3,000 ($4,500 for elderly or disabled households).
• Categorical eligibility: automatic qualification for households receiving or authorized to receive benefits from other welfare programs, such as Temporary Assistance for Needy Families (TANF).Congress made categorical eligibility a permanent feature of SNAP to reduce paperwork. But over time, the USDA stretched this authority to broaden SNAP far beyond Congress’s intent. The USDA currently recognizes three types of categorical eligibility:
  • Traditional categorical eligibility: Households receiving specifically cash benefits from programs such as TANF are SNAP-eligible. Federal law requires states to implement this form of categorical eligibility. Eligibility requirements for TANF cash assistance are more restrictive than SNAP in many states.
  • Narrow categorical eligibility: States can confer categorical eligibility through noncash TANF benefits, but these are primarily limited to services such as childcare or counseling.
  • Broad-based categorical eligibility: States can make most, if not all, low-income households categorically eligible for SNAP if they receive or are authorized to receive minimal noncash TANF benefits or services. The USDA’s 2000 regulation allowed states to raise gross income limits up to 200 percent of FPL when determining eligibility for noncash TANF benefits aimed at reducing out-of-wedlock pregnancies or promoting two-parent families. In 2009, the USDA added that even pamphlets and hotline referrals could qualify as noncash TANF benefits. Another memo clarified that states could, in addition to raising gross income limits, also increase or eliminate asset limits for these noncash benefits through BBCE. By 2011, even notices of eligibility could count as a benefit. States that use BBCE are not required to impose net income tests, but households would still be subject to the gross income limit.

  I checked for my own state (Michigan) and found out:

• Broad-Based Categorical Eligibility (BBCE) in Michigan

  Overview of BBCE

  Michigan employs the Broad-Based Categorical Eligibility (BBCE) policy, which allows households to qualify for Supplemental Nutrition Assistance Program (SNAP) benefits without adhering to traditional asset limits. This policy enables states to extend SNAP eligibility to individuals who may have significant financial resources.

  Implications of BBCE

  The BBCE policy has resulted in some notable outcomes:

  • Eligibility for Wealthy Individuals: The absence of asset tests means that individuals with substantial savings or high-value assets can still qualify for SNAP benefits, provided their income remains below the state’s maximum threshold.
  • Examples of Qualification: Instances have been reported where lottery winners and individuals with considerable wealth have received SNAP benefits. For example, a millionaire in Minnesota received over $6,000 in benefits, and a Michigan lottery winner continued to receive assistance after winning $2 million.