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Committee warned of SNAP and Job Service federal funding reductions and potential state match needs
Summary
OMB staff told the committee they surveyed agencies and that Health and Human Services expects a notable SNAP funding reduction and Job Service North Dakota expects ARPA-funded IT project scope to shrink; OMB and HHS budget staff said agencies may need to identify state funds to maintain services.
OMB staff told the Legislative Budget Committee that agencies are seeing known federal funding reductions that could require state funds to maintain current service levels.
Joe Morrissette (OMB) said the Office surveyed agencies and asked them to report only reductions they knew were coming, not hypothetical cuts. He told the committee that Health and Human Services reported an expected cut to the Supplemental Nutrition Assistance Program. "They are expecting a $15,000,000 reduction in the SNAP program," Morrissette said, and the handout indicated an original appropriation near $63,000,000 with the agency noting about a $15.7 million associated General Fund match requirement in committee materials.
Steph Golicson, an OMB budget analyst who works on HHS budgets, clarified timing: the administrative-match change that reduces the federal share would not take effect until federal fiscal year 2026 (Oct. 1, 2026), meaning the state would likely see the larger match requirement in the second year of the biennium and would have to identify General Fund dollars to offset the change.
Job Service North Dakota told OMB that ARPA funds for an IT project are expected to be reduced; Morrissette said the project would likely continue but with limited functionality compared with original plans, and the agency may return in the next session to request additional state funding to restore functionality.
Committee members sought clarification about specific dollar figures, timing and whether deficiency requests will be needed; OMB and agency budget staff said they will continue to monitor and report updates through the normal budget process. No formal committee action was taken at this meeting.
