Steaks and crab aren't where the EBT money is going. Or rather, if you see someone piling up their cart with steaks and crab, then paying for it with EBT, they're trading the steaks and crab for drugs, not eating them.
The biggest waste of EBT money happens in bodegas and small liquor stores that also sell food. The EBT recipients sell their EBT for 50 cents on the dollar in cash, and the store owner just swipes through different groceries until the card is empty and puts the groceries back on the shelf.
Some of the bodegas keep a box of products behind the counter specifically for this purpose. A lot of these bodegas run numbers or other gambling games out of their stores as well. Some sell single cigarettes and illegally packaged food such as jerky, popcorn, candy, and peanuts in the shell, bought in bulk and repackaged in small plastic sandwich bags. They rarely sell drugs out of the store, because if they lose their liquor license the game is over. Some of them will refer druggies for a finder's fee from the dealer and return EBT business from the druggie.
I know this because I used to live next door to a bodega and also bought single cigarettes, candy, jerky, and peanuts from under the counter. I had relatively friendly relations with the store owners as well (as friendly as one can get with a predator). I also got questioned by the cops the night the bodega got robbed for their gambling winnings, which they kept in cash in a floor safe. I had noticed lights left on in the store at night, but didn't know about the gambling before this point. The cops visited us pretty regularly about problems at the bodega, and that's why we kept our doors locked and drove nails the window sills so they could only be opened a few inches.