The Governing Logic of Fraud in U.S. Anti-Poverty Programs

In the United States, the perception of fraud within anti-poverty programs has shaped the administration and design of these benefits, often prioritizing the detection of potential fraud over the actual needs of low-income families. This approach has resulted in a complex web of regulations and surveillance that complicates access to essential support services. The Earned Income Tax Credit (EITC), a critical tool for alleviating poverty, exemplifies this issue, as low-income families face significantly higher audit rates compared to wealthier taxpayers. This disparity arises not from a higher likelihood of dishonesty but from the relative ease of auditing poorer households.

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The enforcement mechanisms established to combat fraud have inadvertently created barriers for those in need. Families applying for food assistance must navigate a labyrinth of documentation and frequent recertifications, leading to the loss of benefits due to administrative errors rather than intentional fraud. The irony lies in the fact that actual fraud among benefit recipients is exceedingly rare, with programs like the Supplemental Nutrition Assistance Program (SNAP) boasting over 95% payment accuracy.

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Moreover, low-income individuals are often victims of fraud themselves, targeted by scams that exploit their vulnerabilities. When defrauded, these families find little recourse within a legal system that is slow and fragmented, leaving them to fend for themselves while being aggressively policed for potential wrongdoing.

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Critics argue that the current framework reflects a broader societal tendency to view poverty through a lens of suspicion rather than empathy. The narrative surrounding fraud has become a governing logic that not only complicates access to benefits but also erodes trust in governmental institutions. As families are treated as potential criminals, they may disengage from programs designed to assist them, ultimately exacerbating their financial struggles.

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Sara Sternberg Greene, a professor of law at Duke University, emphasizes that the focus on fraud prevention has overshadowed the fundamental purpose of these programs: to support those in need. She advocates for a modernization of benefit delivery systems that would reduce the burden on applicants and shift the focus from policing to genuine assistance.

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While acknowledging the necessity of safeguards against fraud, there is a growing call for a reevaluation of how anti-poverty programs are structured. Proposals include investing in secure data systems and improving inter-agency coordination to streamline processes for families seeking assistance. The goal is to create a system that prioritizes support over surveillance, allowing families to receive the help they need without the constant threat of scrutiny.

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• “We built systems that prioritize detecting hypothetical cheaters over helping struggling families.” — Sara Sternberg Greene, Professor of Law

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• “When every interaction with the government begins with suspicion — when benefits arrive late, disappear without warning or require endless proof — people learn that institutions are not there to help them.” — Sara Sternberg Greene, Professor of Law

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The current approach to fraud in U.S. anti-poverty programs not only complicates access to essential services but also perpetuates a cycle of distrust and disengagement among low-income families. A shift in focus from policing to support is necessary to ensure that these programs fulfill their intended purpose of alleviating poverty rather than reinforcing barriers to assistance.

The Hill