Food stamp fraud crackdown at USDA would end loophole that lets Ferrari, Lamborghini owners get benefits

The U.S. Department of Agriculture (USDA) is ramping up efforts to crack down on food stamp fraud nationwide, targeting what officials say is a loophole allowing some wealthy individuals to qualify for government benefits.

Secretary Brooke Rollins posted on X this week that a single state has 14,000 individuals on SNAP benefits who also drive luxury vehicles like Ferraris, Bentleys and Lamborghinis. 

She warned fraudsters the USDA is working to close a loophole under the Broad-Based Categorical Eligibility policy used to qualify for Supplemental Nutrition Assistance Program (SNAP) benefits despite having the financial means to purchase cars for hundreds of thousands of dollars.

Rollins told Fox Business this week that the department is "getting very, very close to being able to fix that" loophole.

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SNAP, the largest federal anti-hunger program in the United States, has long been a target of conservatives pushing for reforms, and Rollins spoke to "The Ingraham Angle" on Thursday night to shed light on just how widespread some of the issues are.

"We've found 500,000 people getting more than one benefit illegally. We found 244,000 dead people. This is just the red states," Rollins said about what she's discovered going through the data from the states that have agreed to provide it since her first day on the job.

"We have arrested 895 different people in the last year for illegally using the food stamp system and, of course, now we're talking about what is happening with that money."

USDA data shows 4.2 million fewer food stamp recipients during President Trump’s first year in office as the administration continues to crack down amid reports from all across the country that food stamps are being misused.

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"Food stamp waste and fraud is out of control," Republican congressional candidate in Orange County and CAL DOGE Director Jenny Rae Le Roux told Fox News Digital. "California alone loses nearly $14 million every day from SNAP to EBT skimming, out-of-state and country beneficiaries and eligibility lapses at a time when technology exists to close every gap, quickly."

In March, Fox News Digital reported on a Minnesota man, Rob Undersander, who said that despite being a millionaire, he was able to qualify for food stamps. Undersander has been sounding the alarm on the issue ever since and has testified on the issue in Minnesota and before Congress.

"Reintroducing basic guardrails like an asset test is a commonsense step to restore integrity, ensure benefits go to those who truly need them and protect the long-term viability of the program," America First Policy Institute Health & Harvest Campaign Director Matt Schmid said in March. 

"This isn’t about taking help away. It’s about making sure SNAP works the way it was intended to."

Additionally, the USDA issued a press release Thursday outlining the "reorganization" plan Rollins has within the SNAP program, which includes moving food nutrition resources and staff out of Washington, D.C. to other cities like Indianapolis, Dallas, Denver and Kansas City.

A USDA spokesperson told Fox News Digital Friday the announcement "aligns with the Food and Nutrition Administration’s mission, to nourish those in need through financially sound programs that promote health and work, as well as champion the productivity of American agriculture."

"As the Food and Nutrition Administration begins its refocusing of operations, all 16 federal nutrition programs will continue without disruption. Pertaining to Indianapolis, it has a lower cost of living, one of the top airports in the country, and has excelled at innovative program delivery."

Ultimately, the administration says the reforms will end up helping the people who depend on the assistance the most.

"Since its inception, SNAP has helped our most vulnerable citizens afford the essential and nutritious food they need," Rollins and Department of Health and Human Services Secretary Robert F. Kennedy Jr. wrote in a Fox News op-ed in March. "At least, that is what the program is supposed to do.

"Over time, however, SNAP has been taken advantage of, allowing many to game the system and leaving millions of vulnerable Americans without healthy, nutrient-dense food options."

Fox News Digital's Katelyn Caralle contributed to this report.