Yes, you can claim your daughter as a dependent if you provide more than half of her total support for 2016 and you meet all the other requirements to claim her as a qualifying relative. The money that she receives in the form of food stamps as well as well as the amounts that she receives from TAFDC are generally considered support provided by the state so these amounts would not be treated as provided by you when determining whether you provide more than half of her support. However there are exceptions.

Please refer to page 20 of pub 501 under the headings, "support test to be a qualifying relative", and "support provided by the state", for additional clarification.   https://www.irs.gov/pub/irs-pdf/p501.pdf

Please refer to the following FAQ to learn more about how to determine if you provided more than half of her total financial support. https://ttlc.intuit.com/replies/4769956

Additionally, please refer to the chart on page 12 of pub 501 to see if you meet the requirements to claim your daughter as a qualifying relative. Please note that there are requirements listed above the qualifying child and qualifying relative sections, and those requirements must be met as well.  https://www.irs.gov/pub/irs-pdf/p501.pdf.

You can also claim your grandchild as a dependent if you meet all of the requirements to claim him or her as either a qualifying child or a qualifying relative. If you meet the requirements to claim your grandchild as a qualifying child, this will generally enable you to claim better tax benefits. please refer to the chart on page 12 of pub 501 to see if you meet the requirements to claim your daughter as a qualifying relative. Please note that there are requirements listed above the qualifying child and qualifying relative sections, and those requirements must be met as well.  https://www.irs.gov/pub/irs-pdf/p501.pdf.