Unemployment in this country is at emergency levels. Welfare recipients need not just be given food, clothing and housing, but they need to learn some valuable life skills.
Since this is an emergency, I suggest that FEMA set up camps (similar to those set up for hurricanes and natural disasters) that are designed to put the welfare recipients to work. Anyone who wants to receive free government benefits is welcome to learn the value of work in these FEMA work camps. The camps can form teams that will help out during emergencies, local and national. If there are no emergencies, there are plenty of jobs they can perform.
To reduce the competition with the private sector, these camps can have tasks for the workers to do that sustain the camp. They could also assist non-profit organizations in their efforts.
They can contribute to society while also being given food, clothing and shelter. At the same time, they will be learning skills that will enable them to receive well-paying jobs once they are done in the camp.