Safeguarding TANF Assistance: State Options for EBT Location and Purchase Restrictions

Temporary Assistance for Needy Families (TANF) gives states broad flexibility to design cash assistance programs, but that same flexibility means safeguarding public funds depends heavily on how states choose to restrict where and how benefits are spent. This issue brief, co-written by Office of Family Assistance Director David Swegle and Assistant Secretary of Administration for Children and Families Alex Adams, examines the federal restrictions on TANF Electronic Benefit Transfer (EBT) transactions and the options states have to strengthen them.

It explains the mandatory federal floor prohibiting EBT transactions at liquor stores, casinos and gaming establishments, and adult-oriented entertainment venues; the penalty for state noncompliance; and the distinction between location-based and purchase-based restrictions, illustrated with examples of how Georgia, Texas, and Florida have expanded their own safeguards. TANF leaders and administrators can use this resource to assess whether their state's current policies meet the federal minimum and to consider whether additional restrictions would better protect taxpayer dollars and align assistance with program purposes.