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Legislative Council flags federal rescissions and proposed Medicaid, SNAP cuts in pending federal bill
Summary
Legislative Council fiscal analysts briefed Legislative Management on June 26 about recent federal funding rescissions that already reduced North Dakota grant awards and about proposed federal legislation that could produce major Medicaid and SNAP cuts.
Legislative Council fiscal analysts briefed Legislative Management on June 26 about recent federal funding rescissions that already reduced North Dakota grant awards and about proposed federal changes that could substantially cut entitlement funding.
Grant Gaither, fiscal analyst, outlined two areas of concern: (1) recent federal rescissions and expirations that have already terminated roughly $100 million in awards to the state, and (2) proposed federal legislation in the U.S. House that would change Medicaid and SNAP rules and reduce federal spending. Gaither said the House bill would cut an estimated $793 billion nationally and about $1.4 billion from North Dakota Medicaid over a decade under its current provisions.
Why it matters: Medicaid and SNAP fund large volumes of health-care and nutrition services for North Dakotans. Gaither said proposed changes include mandatory work requirements for able-bodied adults without dependents, increased state cost share for SNAP benefits tied to payment error rates, higher administrative matches, and changes that could reduce enrollment. He also said earlier rescissions affected CDC grants and FEMA infrastructure awards and directly impacted projects in communities such as Fessenden and Lincoln.
Details: among rescissions and terminations Gaither cited, HHS-related awards showed unliquidated obligations of about $75.8 million terminated (including CDC and SAMHSA funds). FEMA rescissions removed about $19.6 million for building-resilient infrastructure projects, affecting wastewater and water intake projects. Gaither said some of those losses have already prompted state action, including a Bank of North Dakota line of credit and Emergency Commission action to cover some obligations. He emphasized the House bills proposed work and documentation requirements and the potential for increased state administrative costs if work-tracking is required.
Committee members asked about administrative-cost estimates; Gaither confirmed the memo used current 2024 numbers and did not include additional administrative staffing that some states have seen when implementing work requirements. Members asked staff to keep tracking these items and flagged the importance of federal policy changes to state budgeting and program administration.
Gaither closed by noting that the state has already realized about $100 million in federal reductions and that larger potential entitlement reductions remain under consideration in Congress.
