A millionaire in Minnesota deliberately qualified for food stamps – not because he needed the help, but to expose a glaring flaw in the system. Rob Undersander, a retired engineer, discovered a loophole allowing individuals with substantial assets to receive benefits based solely on low income.
Undersander’s investigation began with volunteer work assisting seniors with government benefits. During training, he realized Minnesota’s SNAP eligibility focused exclusively on income, ignoring wealth. He saw an opportunity to test the boundaries and, in 2016, successfully applied for and received benefits.
For over a year, Undersander received SNAP funds, totaling thousands of dollars. Instead of using the money for personal gain, he donated it all to charity, a deliberate act to spotlight the systemic issue. He even confessed to purchasing luxury items with his EBT card, a shocking illustration of the loophole’s reach.
“I strongly support SNAP benefits for truly needy individuals,” Undersander stated, “but when nearly one in seven Americans are receiving food support, something is fundamentally wrong.” He believes the current rules are, in effect, designed to facilitate fraud, especially given the escalating abuse of taxpayer funds in Minnesota.
Undersander is scheduled to testify before the Minnesota House Public Safety Committee, advocating for a bill that would tighten SNAP eligibility. The proposed legislation, introduced by Representative Pam Altendorf, demands stricter verification of both income and assets before benefits are approved.
This isn’t a new fight for Undersander. For a decade, he’s been a vocal advocate for reform, even presenting his findings to Congress. Despite his efforts, he laments that elected officials have yet to take meaningful action to close the loophole.
The urgency of the situation is amplified by a massive fraud scandal engulfing Minnesota’s welfare system, potentially reaching tens of billions of dollars. Recent cases include a woman sentenced to prison for a $325,000 SNAP fraud scheme involving fake identities and the resale of benefits.
Federal spending on SNAP surged to record levels during the COVID-19 pandemic, reaching $128 billion in 2021 and $127 billion in 2022. In 2021 alone, Minnesota’s SNAP distribution jumped 174%, from $725 million to nearly $2 billion.
Experts at the America First Policy Institute argue that states can mitigate budget impacts and improve program integrity by enhancing oversight and eliminating loopholes. They point to the One Big Beautiful Bill Act, which incentivizes effective program management and penalizes states with high error rates.
Reintroducing an asset test is considered a crucial step towards restoring the program’s integrity. The goal isn’t to deny assistance to those in need, but to ensure benefits reach those who genuinely qualify and to safeguard the long-term viability of SNAP.
Governor Tim Walz is facing increasing criticism regarding the widespread fraud within Minnesota’s welfare system. The proposed reforms represent a critical attempt to address the vulnerabilities and ensure taxpayer dollars are used responsibly, protecting a vital resource for those who truly need it.
Matt Schmid, Director of the Health & Harvest Campaign at America First Policy Institute, emphasized the core issue: “SNAP is meant to help needy Minnesotans, not to subsidize people who already have significant financial resources.” He believes a fundamentally broken system demands immediate correction.
