The Labor, Health & Social Services Committee voted to advance a bill directing the Department of Family Services (DFS) to request a waiver from the U.S. Department of Agriculture to exclude candy, soft drinks and related "accessory foods" from purchases with SNAP benefits.

Director Corinne Schmidt of DFS told the committee the proposal would not change the federal SNAP benefit stream (the federal government provides the benefits directly). Instead, the bill would ask the USDA for permission that would allow Wyoming to block certain product types at retailers’ point‑of‑sale when an EBT card is used. "SNAP is a federal program," Schmidt said. "The money that goes on to SNAP benefit cards does not show up in our budget." She outlined an implementation timeline: roughly a year for design and retailer changes followed by a two‑year demonstration period with an evaluation component required by USDA.

Why it matters: Testimony emphasized two tensions: the policy goal of improving nutrition for SNAP recipients and the practical cost, complexity and risk to state administration. DFS estimated direct state costs of about $650,000 per year over the implementation and evaluation period (positions, evaluation contractor, dietitian, other costs) and said the department would need additional staff to manage compliance and evaluation. DFS also warned of exposure to higher administrative costs and the federal program’s new reporting rules under the recent federal law (HR 1), which reduce the federal administrative match and increase state share as of Oct. 1, 2026.

Debate and stakeholder views: Supporters framed the measure as aligning taxpayer benefits with nutritional goals. Jeff Daugherty of FGA Action told the committee, "Welfare dollars shouldn't be used for that" (referring to candy and soft drinks). Tim Pugliese and other advocates said an approved waiver could help Wyoming secure additional federal rural health transformation funds. Retailers and the beverage trade told the committee they oppose a ban as currently written and asked for clear, implementable definitions and a robust education plan. Nick Agopian (Wyoming Beverage Association) and Sarah Pettit (Associated Food Stores) emphasized the implementation burden on point‑of‑sale systems and suggested more precise product definitions and retailer training.

Amendments and fiscal debate: Committee members considered and rejected an amendment to appropriate $1.3 million to DFS up front. DFS asked for an appropriation or staffing to avoid disrupting normal eligibility work; department officials said without extra staff the agency would need to repurpose existing staff and risk higher error rates, which under new federal rules could expose the state to financial penalties. The committee instead adopted language tying the bill to accessory foods as defined in federal regulations (7 CFR 271.2) to broaden the statutory reference and to make definitions consistent with existing federal categories.

Outcome: The committee passed the bill as amended. Roll call recorded 12 ayes, 2 nays. The Department of Family Services will prepare and submit a waiver request to USDA if the governor/agency pursues the next steps. DFS told the committee it will return with fiscal detail if the waiver request and implementation proceed to a stage requiring state appropriation.

Ending: The bill instructs DFS to seek a demonstration waiver and to reapply annually until the USDA grants it. The measure passed committee, but committee members and witnesses agreed the next steps should include detailed cost estimates, precise product definitions and a retailer education plan before the state implements any exclusion.