House Finance Division III votes 6‑3 to recommend ITL on SNAP supplemental appropriation
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Summary
After hearing DHHS staff on SNAP administrative costs and federal changes that raise the state’s potential cost‑share tied to error rates, House Finance Division III voted 6‑3 to recommend ITL (inexpedient to legislate) on House Bill 17‑50 and will send the item to full Finance at 2:30 p.m.
CONCORD — House Finance Division III voted 6‑3 on Feb. 20 to recommend inexpedient to legislate (ITL) on House Bill 17‑50, a proposed supplemental appropriation to the Department of Health and Human Services (DHHS) to support administration of the Supplemental Nutrition Assistance Program (SNAP).
The motion to ITL passed after a work session in which DHHS officials described how the department accounts for administrative costs and responded to lawmakers’ questions about staffing, redetermination and future federal rules. Karen Hebert, director of the Division of Economic Stability, and Nathan White, DHHS chief financial officer, told the panel that the $24,000,000 figure in the materials represents total admin spending as reported and includes allocated supervisory and shared costs. White said the department’s “cost allocation system allows us to maximize federal funds.” He also cited a daily administrative cost per SNAP participant of about $0.89 and an administrative overhead of about 8¢ for every dollar distributed in benefits.
Lawmakers pressed DHHS on trends, staffing and the potential downstream effects of not funding the supplemental. Committee members were told that the state had about 75,000 SNAP participants as of December 2025 and that DHHS’s adjusted authorized admin budget for 2026 is roughly $31,000,000 but that actual expenditures are likely to run lower due to vacancies. DHHS officials described a department vacancy rate in the low‑to‑mid‑20s and explained that many positions and contracts affect how much federal reimbursement the state can claim.
The panel discussed an alternative addressed in Senate Bill 603, which would require the department to transfer funds among its accounting units to cover the shortfall rather than providing a new appropriation. Fiscal staff described SB 603 as effectively codifying an option the department already has to move funds internally.
A central point in debate was a change in federal law (referred to in the session as HR 1) that will alter how much of SNAP costs the state must cover beginning in federal fiscal year 2027, tying a portion of the state’s share to the program’s error rate. DHHS said the state’s official error rate for federal fiscal year 2024 was 7.57 percent; under the tiered structure explained to the committee, an error rate in that range would result in a 5 percent state match, with higher matches if the error rate rises. Hebert said the department has been working to lower errors through case reviews, training and system improvements and has received a $1,100,000 federal grant for performance and technology enhancements.
Some members argued the supplemental was necessary now to invest in staffing and systems that could prevent larger, longer‑term federal costs. Representative Telerski said the state should "act prudently, pass this bill, ensure that we are not putting the department further back on their heels," citing both the economic activity SNAP funds generate in local stores and the risk of higher future costs. Others questioned whether a mid‑biennium supplemental would meaningfully change outcomes amid a hiring freeze and high vacancy rates.
Committee members also sought reassurance that benefit payments would not be cut if the legislation failed. Karen Hebert told the panel, “No. They wouldn’t lose the benefit,” clarifying that the debate was about administrative funding rather than the direct benefit payments to recipients.
On the motion to ITL, the clerk recorded six yeas and three nays; the chair said Division III would forward the result to full Finance, which was scheduled to consider the item at 2:30 p.m. the same day.
What’s next: Full Finance will take up House Bill 17‑50 at its 2:30 p.m. meeting; the Division’s recommendation and the department’s testimony will be part of the record.
Sources: Division III work session on House Bill 17‑50, Feb. 20, 2026; testimony by Karen Hebert, director, Division of Economic Stability; testimony by Nathan White, DHHS CFO.
