DHS warns HR 1 changes will raise paperwork, costs and risks for Maryland SNAP recipients

Webster Yee, chief of staff for the Maryland Department of Human Services, told the Budget and Taxation Committee that SNAP serves about 680,000 Marylanders and more than 260,000 children, and that the average monthly federal SNAP benefit is roughly $180 per person.

Yee and Larry Henderhand, DHS assistant secretary for programs, said the federal law referenced in testimony as "HR 1" triggered three major changes now in effect for SNAP: expanded work requirements, new ineligibility for most refugees and asylees unless they become lawful permanent residents, and removal of the automatic standard utility allowance for households without an elderly or disabled member. "If you are subject to work requirements ... you must be working, volunteering, or in an employment and training program for 20 hours a week," Henderhand said.

DHS described operational strain after the recent federal funding lapse. Officials said the state used a $10,000,000 emergency grant to food banks and made $62,000,000 available to make SNAP customers whole, of which about $2,400,000 was used immediately before federal benefits were restored. "We worked hand in hand with the Capital Area Food Bank and the Maryland Food Bank to get that $10,000,000 out as soon as possible," Yee said.

Officials warned of a material fiscal shift under HR 1: the SNAP administrative cost-share will move from 50/50 to 75/25, and HR 1 includes a mechanism that could make states liable for a share of benefit costs tied to payment error rates. DHS said Maryland spends about $115,000,000 in general funds to administer SNAP and projects an approximate $43,000,000 increase in general-fund administrative costs in fiscal 2027; they also estimated a potential exposure of roughly $240,000,000 if a state matches at a 15% liability level tied to a payment-error threshold.

Yee emphasized that the federal payment-error rate is a statistical, sample-based quality measure of administrative over- and underpayments, not an indicator of customer fraud: Maryland's measured error rate fell from the high teens toward about 13.6% for federal fiscal 2024. DHS officials described the main drivers of error as incomplete applications, inconsistent policy application by staff, and legacy technology issues related to the MD THINK / Maryland benefits enrollment and eligibility platform.

To limit harm from HR 1, DHS described several mitigation steps: expanding training and reducing vacancies (noting reductions in some offices from about 19% to single digits), automating routine work, partnering with DoIT on platform governance after DoIT assumed administrative control of the benefits platform, and leveraging competitive grants and outside partners (Georgetown, Code for America, U.S. Digital Response Service) to pilot AI-assisted tools and diagnostic data that flag potential exemptions and reduce customer burden. Henderhand said the state's goal is to "minimize harm and preserve lawful benefit access as we implement this law."

During committee questioning, members pressed DHS for data on immigrant impacts and the number of people likely to lose eligibility; DHS said precise counts were not yet available because federal guidance and system changes were still being implemented but cited projections of up to 80,000 additional Marylanders required to navigate new program requirements. DHS also pointed committee members to marylandbenefits.gov and an anonymous 4‑minute eligibility screener as outreach tools.

The briefing concluded with DHS and partner organizations offering follow-up data for the committee and an announcement that the hearing would pause before a bills session. The department said it will continue coordinating with national and local partners to limit churn, maintain participation where lawful, and request federal clarity or relief where possible.