It's a particular incidence of racism by someone working in a system, but I wouldn't call it "systemic racism" because there is not a recurring, broad, historical problem of white people not being able to get welfare. In fact, the majority of welfare recipients are white.

Additionally, most of the poverty programs I am familiar with are not a subjective decision process. You either meet the requirements or you don't. If you don't, they tell you why and you either agree or you have to appeal and get whatever incorrect information they have on file corrected.