Exclusive: A lawsuit on behalf of New York state residents who were electronically robbed of funds they use for groceries seeks to have victims reimbursed by the government, alleging that failure to do so is in violation of federal law.
“Oftentimes people don’t realize they’ve been stolen from until they’re at the cash register with a cart full of groceries,” said Ashley Burnside, a senior policy analyst at the Center for Law and Social Policy , who is not involved in the federal lawsuit. “It’s devastating for people to then realize, after they go through the hoops of calling their SNAP agency reporting the crime, that they don’t have any options for reimbursement.
Before switching to an electronic system, food stamps were issued in paper form, and the USDA would replace them if they got stolen in the mail before participants received them. Wednesday morning's lawsuit alleges that because a 1996 mandate declared that stolen electronic transfer SNAP benefits should get replaced in the same manner as stolen paper coupons were, it’s illegal for the USDA to not replace skimmed benefits.The theft of benefits can be disastrous for families who are already financially stretched.
While the federal lawsuit seeks restoration of benefits for New York state skimming victims, it could have implications for the rest of the country, MacDougall said.
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