Committee orders annual DHS report on tax-outreach grants and trims appropriation to $5 million

The House Committee on Early Childhood and Human Services on Thursday adopted language requiring the Oregon Department of Human Services to submit an annual report on the agency’s grant program that funds organizations helping low‑income individuals claim tax benefits and file returns, and approved a companion bill that reduces funding for that grant program from $14 million to $5 million and was referred to the Joint Committee on Ways and Means.

The requirement was advanced as a dash‑1 amendment to House Bill 3,795, a placeholder cleared to carry a reporting mandate after committee staff said constitutional rules prevent combining an appropriation and substantive provisions in the same bill. The committee then considered House Bill 29,091, which contains the appropriation. A dash‑2 amendment reduced the appropriation to $5 million; the measure declares an emergency and is effective July 1, 2025.

The reporting requirement formalizes a practice DHS already follows, committee members were told. Taylor, an OLIS staff member who summarized the measures for the committee, said the dash‑1 amendment requires DHS to submit an annual report on the department’s grant program that supports organizations providing tax‑benefit education and filing assistance to low‑income Oregonians.

Meg Reinhold of the Oregon Department of Human Services described how the funds are used. Reinhold said the program currently distributes grants across 11 organizations and eight school districts; the program hires college students for paid positions (about $20 an hour) who also receive course credit, and the work is labor‑intensive: site coordinators, data analysts, technology and virtual filing sites are part of the operation. Reinhold said the average adjusted gross income of people served is about $28,000 and the average refund is a little over $2,000.

Representative Ruiz, sponsor of the related tax‑preparation bill, told the committee that the intent is oversight: making the reporting requirement statutory will ensure the Legislature receives consistent information on how resources are spent and what results the program produces.

Representative McIntyre asked whether taxpayers are charged for services. Reinhold replied that the program operates under IRS Volunteer Income Tax Assistance (VITA) rules and must provide services for free.

Committee members cited data submitted with testimony: the committee was told Earned Income Tax Credit refunds increased 57 percent in 2024 (to about $4.2 million), and that eligible Oregonians may be leaving substantial federal credits unclaimed. Members said they expect the statutory reporting to help lawmakers evaluate program performance during the budget process.

Votes at a glance: - Adopt dash‑1 amendment to House Bill 3,795 (reporting requirement): motion adopted (roll call; Representative Elmer excused; recorded ayes included Representatives Jody, McIntyre, Knowles, Ruiz, Wilkers, Vice Chair Wynne and Chair Hartman). The motion passed. - Move House Bill 3,795 as amended to the floor with a due‑pass recommendation: motion passed (roll call; motion carried). - Adopt dash‑2 amendment to House Bill 29,091 (reduce appropriation from $14,000,000 to $5,000,000): motion adopted; Representative Ruiz moved the amendment and later moved the bill as amended to the floor with a due‑pass recommendation and referral to the Joint Committee on Ways and Means by prior reference. The motion passed (roll call; Representative Elmer excused; recorded votes included Representatives Javidy, McIntyre, Noss, Ruiz, Walters, Vice Chair Wynne and Chair Hartman; tally recorded in committee minutes).

Why it matters: State grants that fund tax‑assistance programs boost filing of credits such as the federal Earned Income Tax Credit. Putting the DHS reporting requirement into statute creates a permanent, annual accountability step for the Legislature. The appropriation cut reduces the governor’s introduced funding level but keeps the program in operation during the next budget cycle.

The committee closed the work session on both measures and carried them forward for further floor and budget committee consideration.