Maryland lawmakers consider tapping rainy day fund to backfill SNAP if federal payments stop Nov. 1

Leaders of Maryland’s Appropriations Committee and the General Assembly’s Budget and Tax Committee convened a joint briefing to consider whether state funds should temporarily replace federal SNAP benefits after the U.S. Department of Agriculture told states it would not issue November payments during the federal government shutdown.

The discussion centered on a short-term plan to cover likely November benefits — roughly $123 million based on August caseloads — by using the governor’s emergency authority to tap the state’s rainy day fund, and on legal and technical constraints that could delay reimbursement or the timing of payments.

David Romans, fiscal analyst with the Department of Legislative Services, told the committees: "As of August ... there were about 372,000 households in Maryland that were receiving SNAP benefits. That included 668,000 people. They received in the month of August the benefits, totaling a $123,000,000 as were federally funded benefits, and the average benefit per recipient was about a $184." Romans said USDA directed states on Oct. 10 to withhold November issuance files and later told states it would not pay benefits unless the shutdown ends. He added that media reports put the federal SNAP contingency fund between $5 billion and $6 billion but that USDA has issued guidance saying it will not use that fund for November benefits.

Romans and multiple lawmakers described the clearest, fastest state option as a gubernatorial declaration of a state of emergency that would allow the governor to draw on the rainy day fund without immediate legislative action. Romans said the rainy day fund is projected to end fiscal 2026 with a balance of about $2.2 billion and that a full, one-month backfill of federal SNAP benefits would be roughly $123 million.

Acting Secretary Jake Weisman, Department of Budget and Management, said the administration is prepared to consider options but cautioned there is no guarantee of federal reimbursement. "The memo that Mr. Romans mentioned that was issued by USDA on Friday explicitly stated that, quote, there is no provision or allowance under current law for states to cover the cost of benefits and be reimbursed," Weisman said. The administration said it intends to take an iterative, week-by-week approach because other federal programs (for example LIHEAP and WIC) also face uncertainty and because using state funds now could create future fiscal obligations.

Comptroller Lendly emphasized the economic consequences of a payment cut, noting SNAP’s multiplier effect and the risk to retailers and farm income if benefits stop. The comptroller said, "The GDP multiplier for SNAP is 1.5. That means that for every 1,000,000,000 in SNAP benefits nationally, we see 1 and a half billion increase in GDP," and urged state action to avoid near-term economic harm in high-need jurisdictions.

State officials and witnesses outlined several operational and legal complications: - Timing: Speakers said even if Maryland decided immediately to backfill benefits, there could be a delay before money is loaded onto EBT cards because states normally submit issuance files to vendors in advance. The administration and vendor processes could cause November payments to be late even if funded by the state. - Reimbursement uncertainty: USDA guidance asserting there is no legal authority to reimburse states has prompted a 25-state lawsuit by state attorneys general seeking to compel the use of contingency funds; committee members said a hearing on a temporary restraining order was scheduled for Boston the next day. - Error-rate and future penalties: Maryland’s current SNAP error rate was described as a little over 13 percent; speakers warned of pending federal changes that could impose state penalties for high error rates in future years if states do not reduce errors. - Technical capability: Comptroller and others noted Maryland is one of the few states that can load funds directly to EBT cards through the state’s vendor (Conduent), which could shorten the delivery path if the state chooses to fund benefits.

Witnesses, including Michelle Madeo of the Public Justice Center and SNAP recipient Kendra James, told legislators that a benefit cutoff would immediately affect children, seniors, people with disabilities and small retailers in high-need counties. Madeo said food pantries are not an adequate substitute for the autonomy SNAP provides. James described store closures and shrinking hours in her East Baltimore neighborhood and said the prospect of lost benefits had heightened fear about public-safety consequences.

Committee chairs and members expressed bipartisan support for a short-term state solution to prevent immediate hunger while acknowledging the state lacks the capacity to permanently replace federal funding. Some counties and neighboring states were cited as mobilizing local resources: Montgomery County announced a multi‑million dollar package for community supports and Baltimore City was reported preparing local emergency food funding.

The committee did not take a formal vote. Lawmakers asked the Moore administration to provide a concrete plan within 24 hours; administration officials said they were working through options and would report back. Meanwhile, the attorney general’s multistate lawsuit and a federal court hearing were expected to influence whether states ultimately receive federal reimbursement.

Maryland faces a choice between acting quickly to avert an immediate cutoff of food benefits for hundreds of thousands of residents and preserving reserves for other possible federal funding gaps. The committees said they stand ready to work with the administration on an immediate, time‑limited response if the governor decides to use emergency authorities.