Kansas's shocking new law will take poor people’s money and give it to big banks

[Binkie The Clown]

Kansas Republicans have put forward a new policy initiative that's almost shocking in its clear intent to harm the interests of poor people. The provision, which takes effect July 1, will ban welfare recipients from taking out more than $25 in benefits a day from an ATM.

---SNIP---

Taking out that money isn't free. Many banks charge substantial fees for withdrawals from Electronic Benefit Transfer (EBT) accounts to which TANF money is distributed. I called Intrust Bank in Wichita, which says it charges $2 per EBT transaction. Emprise Bank says it charges $1.50. In addition to that, Kansas itself charges $1 per ATM withdrawal. So taking the cheaper option, withdrawing $420 from Emprise under the new rules would mean $52.50 in fees. Effectively you'd be limited to taking out $380 a month if you didn't want to go over your monthly allowance, fees inclusive.

Assuming you could only take out $420 at a time before, that's a nearly 10 percent benefit cut. If you went with Intrust, it'd be a nearly 14 percent cut. Say what you will about benefit cuts, but usually the money all goes to the state. Here, most of it goes to banks. It's like if Congress slashed food stamps and decided to hand the savings over to Citigroup.

Continue reading at this link.

[FarPoint]

1. Are the recipients allowed a checking account?

Can they then deposit the funds?

[Liberal_in_LA]

2. kick

[hifiguy]

3. Kansas - the last sane/intelligent person

can just turn out the lights when they leave. Bottom of the fucking barrel. Jayzus.

[99Forever]

4. Shocking? Not really.

That state is too fucked up for words. They have the government they voted for, more than once.

Stupid is, as stupid does.

[Cracklin Charlie]

5. That is shocking.

I live in a state that neighbors Kansas.

I have a terrible feeling that there is a larger plan afoot in Kansas. It seems like something from a bad dystopian society movie. Is it possible that they are trying to remove any effect of government that would enable people with lesser means to survive in Kansas, thereby forcing those people to leave the state? Then, only those who can afford private school, and health care would live there. It would be like their own private utopia.

Brownback has little to no popular support, he gets regularly raked over the coals in the daily press, gets booed at local/regional ball games and other events, and signs his support to some of the most heartless and cruel legislation I have ever seen.

Yet he got reelected. I really have a hard time believing his reelection was legit.

[jwirr]

6. Sure it is. Iowa used to make sure that they paid less asistance to recipients than their neighbors

and everyone would move out of the state to those better states. That is how I moved to MN in the 70s. Better programs for my disabled daughter. In fact Iowa made it very possible for me to do this by enrolling her in a cash assistance program that would allow us to save enough money to move.

In fact you may have just hit the nail on the head. Wonder if there is a pattern in most of the R runs states that this is happening?