I thought so myself... and I called the offices in Harris county that handle welfare. Yes, they do qualify for both Welfare and the medicaid. They said it is not going to the parents -- but to the children. They do not report information to the Federal government so the feds would not go after the mother/grandmother for not suporting.

She would not discuss their particlar application for support -- she only talked in general. The lady seemed to agree with me that the system is screwed-up. She said they see a lot of fraud and usually catch it after a few months -- but she did not think that what I described was fraud, that they were entitled to the money under the Texas/Federal regulation.