Fraud under means-tested welfare and public assistance programs

If an individual’s benefits under a Federal, State, or local law relating to a means-tested welfare or a public assistance program are reduced because of an act of fraud by the individual under the law or program, the individual may not, for the duration of the reduction, receive an increased benefit under any other means-tested welfare or public assistance program for which Federal funds are appropriated as a result of a decrease in the income of the individual (determined under the applicable program) attributable to such reduction.

For purposes of subsection (a), the term “means-tested welfare or public assistance program for which Federal funds are appropriated” includes the food stamp program under the Food Stamp Act of 1977 ( 7 U.S.C. 2011 et seq.), any program of public or assisted housing under title I of the United States Housing Act of 1937 ( 42 U.S.C. 1437 et seq.), and any State program funded under this part.