I've read a couple of articles on this topic today.

The first deals with a bill in Kansas that would ban recipients of cash assistance from using the funds on alcohol, tobacco, gambling and sexually oriented materials, movie theaters, and swimming pools. "Cash assistance couldn't be used in nail salons or spas, on cruise ships or at tattoo or body-piercing parlors. Also out: Any 'psychic or fortune telling business.'"

The second discusses a bill in Missouri that "would ban the purchase with food stamps of 'cookies, chips, energy drinks, soft drinks, seafood or steak.'"

Do you think states should be able to dictate how these funds are spent? If you do think they should be able to, what types of items/services do you think should be banned? Telling people what they can and can't buy or do kind of rubs me the wrong way. Here are the articles for reference:

http://www.kctv5.com/story/28724273/kansas-set-to-prevent-poor-from-using-aid-for-swimming-pools-psychics

http://www.washingtonpost.com/blogs/wonkblog/wp/2015/04/03/missouri-republicans-are-trying-to-ban-food-stamp-recipients-from-buying-steak-and-seafood/