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Sponsor seeks waiver to limit SNAP purchases and add transitional benefit; food‑bank and retailers warn of cost and retailer drop‑off

2867597 · April 3, 2025
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Summary

Representative Essman asked DPHHS to seek a federal waiver that would restrict SNAP purchases to a narrow list of nutrient‑dense foods, limit SNAP card use to household members 16 and older, and create a transitional benefit to soften the benefit cliff.

Representative Essman introduced House Bill 902, which would direct the Department of Public Health and Human Services to apply for a federal waiver to change the list of items eligible for purchase with Supplemental Nutrition Assistance Program (SNAP) benefits, tightening eligible foods toward fewer, more nutrient‑dense items. The bill also would limit SNAP card use at retail outlets to household members age 16 or older and create a transitional benefit designed to soften the “benefit cliff” so households moving up in income retain partial SNAP benefits while they become self‑sufficient.

Essman said the waiver would allow the state to prioritize fresh, canned or frozen fruits and vegetables, preserved meats, dairy products and other foods intended to increase nutritious home meal preparation, and that the department should refile waived requests annually if denied. The sponsor noted the bill includes a one‑time appropriation for implementation costs and defended the policy as an attempt to nudge purchases toward healthier options and to reduce generational reliance on assistance.

Opponents included Ella Smith of the Montana Food Bank Network, who urged the committee to oppose HB 902 and pointed to the fiscal note showing ongoing general‑fund costs (estimated $530,000–$560,000 per year beyond FY 2026) and argued that evidence does not support that restricting eligible SNAP purchases produces healthier diets—recipients often substitute their own funds for disallowed items. Smith warned waivers with food restrictions have been rejected at the federal level and could reduce the number of retailers accepting SNAP, especially in rural areas.

Elaine Taylor of the Montana Beverage Association and Earl Allen, a convenience‑store industry veteran, also testified against the bill, citing costs to retailers, the fiscal note’s high implementation estimate and concern that rural retailers would stop accepting SNAP if the program’s stocking/IT requirements change. DPHHS informational witnesses Andrea Goetsch and Chappelle Smith answered committee questions about fiscal assumptions. Representative Esman closed by saying the bill seeks only a waiver application and that implementation would follow federal approval; the committee did not vote at the hearing.