The problem with that is if it goes into your debit account, they have no say or control what you spend those funds on. And believe me, there are PLENTY of people that would spend it on cigarettes and booze in a heartbeat.
Most states these days use a debit style card with the funds that will only be useable for the appropriate items. Sadly, cashiers can generally still see what card it is. Which is why when I was on foodstamps (because I was unemployed and broke for a while) i used the self-checkout. But, then again, I also had pride issues.
Of course a big part of the issue is that each state manages its own welfare programs.
It's pretty wrong of the cashier. I will say that when I worked retail I got tired of seeing people on food stamps come in and dump $100 on soda, cookies, and candy. If you need benefits to get by I understand that and I'm cool with luxuries or snacks once in awhile, but my tax dollars shouldn't go towards people loading up on junk food just so I can pay more taxes down the road when they have to get their diabetes/heart disease/etc. treated on Medicaid.
There should be a special checkout for people with food stamps as not to hold up other shoppers. It is unfair and inconsiderate to use a regular till.
The cashier said all the right things. Had I been there I would have given her a high five.... that's assuming the story is true and not fabricated to rile up liberals.
If the future is female...get ready for apocalypse.