The party will soon be over for welfare recipients using their government credit cards for booze, betting or boob joints.
Gov. Cuomo plans to block the use of welfare benefit cards at liquor stores, casinos and “adult-oriented entertainment” venues such as strip clubs, officials said Thursday.
The Post exposed dozens of examples last year of public assistance recipients using their Electronic Benefit Transfer cards for partying at bars, a porn shop and seedy strip clubs.
“These reforms will help ensure that public assistance is used as intended: to ensure the least fortunate among us are able to access food, shelter, and heat while limiting potential abuse and conforming with upcoming federal standards,” said Cuomo spokesman Richard Azzopardi.
Officials said the crackdown complies with a 2012 federal law — the Middle Class Tax Relief and Job Creation Act — that requires states to prevent money intended for the needy from being diverted to gambling, alcohol and sexual entertainment.
The state could lose up to $122 million in federal aid — 5 percent of its annual Temporary Assistance for Needy Families allotment — if it fails to root out the abuses.
Cuomo plans to pull benefits from lawbreaking welfare recipients as well as penalizing retailers who sell them forbidden items.
First-time offenders would have their welfare payments suspended for one month, a second offense would mean a three-month suspension and a third offense would result in a six-month suspension.
“The good news is the governor put something in the budget. The bad news is that the ban didn’t go far enough,” said state Sen. Tom Libous (R-Binghamton).
The state Senate for the past two years has passed a Libous-sponsored measure that would prohibit welfare spending on the forbidden products at all retail outlets.
Libous said technology is available to block such sales at the counter.
Libous’ bill also has a “three-strike and you’re out” provision, and retail outlets could lose their licenses to operate.
But the Democratic-run Assembly never took up his bill.
Cuomo aides said the state Office of Temporary Disability Assistance has already taken action to begin complying with the federal edict.
For example, it has blocked the use of EBT cards at OTB parlors and at slot casinos such as Aqueduct and Yonkers.
And the State Liquor Authority has ordered liquor stores not to take government-issued credit cards from welfare recipients.
Current restrictions already limit many other potential abuses.
Most welfare funding goes directly to landlords and utility companies, thus limiting the amount of cash remaining on a recipient’s EBT card.