Committee hears DHHS request to cover SNAP administrative shortfall after federal changes
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Summary
HB 17-50 would provide a supplemental appropriation to cover increased state administrative costs for SNAP after federal changes shift the state/federal split to 75/25. DHHS said about 75,000 individuals in NH receive SNAP and that a $4.4M gap for SFY27 may exist; advocates warned failing to fund administration risks penalties, program disruption and local food‑system strain.
Representative Mark Pearson introduced HB 17-50, a supplemental appropriation to the Department of Health and Human Services to cover additional state administrative costs for the Supplemental Nutrition Assistance Program (SNAP) after federal changes altered the state/federal administrative cost split to approximately 75% state / 25% federal.
Karen Hebert (DHHS) told the committee that approximately 75,000 individuals in New Hampshire (about 43,000 households) receive SNAP benefits and that SNAP transactions bring roughly $158 million in federal dollars into the state annually. She said the program’s administrative costs are approximately $24.6 million per state fiscal year; under the revised match the state’s share rises to about $16.9 million, implying a general‑fund shortfall for SFY27 of roughly $4.4 million relative to the prior 50/50 split.
Committee members questioned the scale of administrative costs, how error‑rate penalties operate, and what HR1’s federal changes mean for eligibility and workload. Hebert said HR1 includes new work requirements and changes to eligible categories (including impacts for refugees and asylees) that could alter caseloads and eligibility determinations. She warned that underfunding administration could increase error rates, trigger federal penalties and disrupt benefit issuance.
Advocates from Save the Children Action Network and New Hampshire Hunger Solutions testified in support of supplemental state funding and described SNAP as a primary, efficient tool for preventing food insecurity and stabilizing local economies; they said private charitable capacity cannot substitute for SNAP during shutdowns or funding gaps.
The committee closed the hearing and forwarded HB 17-50 to Division 3 for continued consideration.
