Many might not think about the costs of every day basic items for a minimal level of survival.
After seeing the system in use, I think it would be best if general relief type programs like you have in California, do not allow cash withdrawals. It is a factor in the ongoing fentanyl crisis. The pattern of behavior is enabled by the free cash.
Instead a debit card that can be used anywhere except for cash is ideal. While many use the money for necessary things this is a factor in what is seen in inner cities.
Buy prepaid credit cards with your debit card, cash them. Buy commodities and sell them at a loss.
People will find a way around it, especially desperate people with addiction issues. This will just add overhead. If you want to stop the fentanyl crisis then attack the root cause, don’t make life more difficult for the poor for a marginal benefit.