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Proposed cut to assisted‑living subsidy would affect about 300 residents, lawmakers ask for impact analysis
Summary
DHS recommended eliminating a 100% state‑funded subsidized assisted‑living program saving about $1.1 million; DHS said about 294 people currently receive the subsidy and the average payment is about $206/month, and committee members requested demographic and outcome analysis before acting.
The Department of Human Services proposed eliminating the state’s subsidized assisted‑living program — a 100% state‑funded subsidy that helps eligible HOPE waiver recipients cover room and board — as part of its FY2026 package. The department said doing so would reduce general fund spending by about $1,093,518.
DHS Finance Officer Tammy Darnall told the committee the program served an average monthly caseload of roughly 294 individuals. Darnall said the average monthly subsidy is about $206 per person and that some subsidies are as small as $5 per month. "The average, is about $206 per person," Darnall said during the hearing.
Why it matters: Eliminating a subsidy that helps people afford assisted living could change where and how low‑income older adults and people with disabilities live. Committee members asked DHS to provide demographic details and to analyze whether removing the benefit might increase costs elsewhere (for example, nursing home placements or emergency care).
Committee questions and agency answers - Scope of the program: DHS said the HOPE waiver‑linked subsidy helps recipients whose room and board exceed their income and allowable deductions; the program has no built‑in time limit and recipients may remain eligible as long as they meet program rules. - Potential downstream effects: Legislators asked whether cutting the subsidy would shift costs to higher‑acuity services such as nursing homes. DHS said that could happen in some cases, and requested further analysis would be supplied on demographics and expected movements in care settings. - Decision requests: Committee members asked DHS to deliver a demographic breakdown (age, length of stay, program pathway) and scenario analysis estimating whether the proposed cut would drive higher spending in other budget areas.
What DHS will provide DHS agreed to follow up with the committee on program demographics, utilization timelines and any available modeling of downstream cost implications. Lawmakers signaled they would weigh the program’s social and fiscal trade‑offs before deciding on the proposed elimination.
Ending The agency’s FY2026 recommendation includes the $1.09 million reduction; the appropriations committee requested further analysis before taking action.
