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Joint Budget Committee approves $10 million interim grant to food banks to blunt SNAP pause

Joint Budget Committee
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Summary

The Joint Budget Committee approved a $10 million interim supplemental for the Community Food Assistance Providers Grant Program to help food banks respond while SNAP benefits are paused during a federal shutdown; members debated distribution limits, statutory constraints and whether disaster funds should be used instead.

The Joint Budget Committee on Oct. 10 approved a $10,000,000 interim supplemental request directing state funds through Feeding Colorado to the five regional food banks to respond to a pause in federal SNAP benefits.

Tom Dermody, Joint Budget Committee staff, told members the Department of Human Services and the governor requested the funding to be dispersed in three installments between Nov. 1 and Dec. 1 depending on the shutdown's duration. Dermody said the money would be passed through Feeding Colorado, which would distribute to food banks and partner pantries, and that the department would prioritize communities using SNAP caseload data.

"This request seeks to address the pause in the federal supplemental nutrition assistance program benefits," Dermody said, adding that the grant is only a "rough proxy" for SNAP and cannot replicate electronic benefit transfers to households.

Lawmakers pressed officials on reach and scale. Some members, including Senator Kirkmeyer, called the disruption an emergency and urged using the state's Disaster Emergency Fund instead of the general fund. "This is an emergency — 600,000 people, of which about 50% are children, have the availability of food at stake," Kirkmeyer said.

Committee staff and Craig Harper, JBC staff, said statutory limits on the interim supplemental process constrained the committee to approve no more than the amount requested by the department and noted that a gubernatorial disaster declaration is the usual route to accessing disaster funds without a supplemental. "Once we're in this interim supplemental process, the options... are pretty limited," Harper said, referencing the cited interim supplemental statutes.

Members and staff acknowledged the $10 million will not replace the roughly $120 million in monthly SNAP benefits for about 600,000 people (approximately 330,000 households) and described the appropriation as a targeted stopgap. Dermody and staff estimated that, with food banks' purchasing power, the $10 million could be stretched into roughly $30 million to $50 million in food value for distribution through pantries and mobile operations.

Representative Sirota moved the staff recommendation to approve the interim supplemental for the Community Food Assistance Providers Grant Program emergency funding; the committee registered no objections and the motion passed 6–0. Dermody will send a letter to the State Controller documenting the approved over-expenditure and committee intent to introduce a supplemental bill in the next regular session to address the appropriation formally.

The committee recorded concerns about equity and logistics — including whether rural pantries would be reached and how pantries would be reimbursed for immediate food distribution — and asked staff for further planning material. Committee staff indicated food banks had already begun increasing purchases and developing distribution plans and that funds would likely be available to food banks by early November if the committee's approval was signed and processed.

The Joint Budget Committee also requested a memo on the history and mechanics of the Disaster Emergency Fund and the committee's obligations for future budgeting.

Next steps: Dermody will draft the required State Controller letter and the committee will revisit the funding and any supplemental legislation during the regular session.