THE DEPRIVATION FACTOR: DENIAL OF AID DUE TO STABLE HOMES

It has come to my attention that families who need help in the state of Arkansas may not be able to get any help because of something called "the deprivation factor." The deprivation factor requires a family to be under certain circumstances in order to receive aid. What levels are these? Let me explain.
A family of three is financially eligible to receive Medicaid. This family is expecting their second child. Both of the parents work and they cannot afford health insurance. Yet this family was turned down for aid because the husband of the family would be the father of both children. The couple being married also worked against their qualifying for aid. Am I the only one who sees this as odd in a nation that is trying to pass an amendment to the Constitution protecting the sanctity of marriage? Using tax dollars to promote unstable families while preaching family values at the same time? I understand the kids are the focus of the aid but punishing the kids who just happen to come from a stable home that just happens to need help is just wrong. It's providing the loophole that allows others to take advantage of the welfare program.
On the other hand, I'm sure the family I'm writing about is proud to not be "deprived."

Brian