The problem with means-testing benefits is that it often will cost more to means-test than to just accept nonzero fraud rates past a very minimal point, and there is a significant amount of friction introduced when you add more friction to people who do not have time or energy to spare.
e.g. if I ask you to submit receipts for literally everything that you bought in the last week, in order to give you a $20 stipend weekly, you will probably not bother, even if you could use the $20, and it will probably cost more than $20 to pay me for the time processing that.
I'm not saying there's no waste, but I am saying that the optimal amount of waste to reward is nonzero.
e.g. if I ask you to submit receipts for literally everything that you bought in the last week, in order to give you a $20 stipend weekly, you will probably not bother, even if you could use the $20, and it will probably cost more than $20 to pay me for the time processing that.
I'm not saying there's no waste, but I am saying that the optimal amount of waste to reward is nonzero.