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Maryland hearing: federal HR 1 expected to raise state costs and cut coverage for thousands
Summary
State analysts told the Appropriations Committee that federal HR 1 changes will shift costs to Maryland, increase SNAP administrative and benefit expenses, and could cause sizable Medicaid disenrollments unless automated exemptions and outreach limit losses.
At a Jan. 2026 briefing of the Maryland Appropriations Committee, state analysts warned that federal changes dubbed HR 1 (referred to in testimony as OBA/OBAA) will shift costs and administrative burdens to the state and threaten coverage for thousands of residents.
The Department of Legislative Services presented modeled impacts for SNAP and Medicaid. DLS staff said HR 1 would make states responsible for a portion of SNAP benefit cost if the payment error rate is above specified thresholds; they showed Maryland’s historical payment error rates and noted the state’s error rate rose during the COVID transition period but had declined to 13.64% in federal fiscal 2024. DLS’s modeling…
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