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DHS FY26 allowance rises to $4.2B; analysts flag FY24 closeout errors, foster‑care hotel placements and TANF drawdown
Summary
Department of Human Services officials defended a $4.2 billion FY26 allowance while analysts highlighted FY24 closeout errors that required $200.1 million in deficiency appropriations, rising foster‑care costs, use of TANF balances and hotel placements for children in care. DHS highlighted Sunbucks and new data tools.
Analysts from the Department of Legislative Services told the Health and Social Services Subcommittee on Jan. 29 that the Department of Human Services’ fiscal 2026 allowance totals about $4.2 billion, an increase of roughly $55.1 million (1.3%) from FY25, and that the department’s budget remains heavily federal‑funded.
DLS reported a set of fiscal closeout and programmatic issues that shaped the questioning. The FY26 budget includes proposed deficiency appropriations totaling about $200.1 million, including roughly $99.1 million in general funds. The largest single adjustment — $64.3 million — replaces assistance payments funds that were reverted in error during the FY24 closeout, DLS said.
"We acknowledge our accounting errors and have taken immediate corrective actions," Jessica Smith, acting chief financial officer for DHS, told the subcommittee. Smith said the department has rebuilt its fiscal leadership, implemented quarterly expenditure monitoring with local departments of…
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