Is what my aunt wants to do considered illegal?

My aunt gets food stamps. A couple of days ago my aunt got something in the mail telling her to let them know of any changes or something. She lives with me, and pays me $350 a month, then she wanted cable so she pays for that, and it comes out to like $400. She nonchalantly was like "i pay you $350 a month, plus I pay for cable, so that comes out to $400, so you can write a receipt that says $400 on it. I was just like okay, but after I thought about it, it doesn't seem right. She doesn't NEED cable, so I dont think that counts, but i could be wrong. I dont want to go to prison or anything.

Is what my aunt wants to do considered illegal?
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