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State social‑services officials warn SNAP work rules, payment‑error costs could reduce benefits for tens of thousands
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Summary
Department of Human Services outlined how HR 1 shifts SNAP administrative costs to states and creates a new payment‑error share that could expose Nevada to tens of millions in annual costs; DHS also expects about 27,000 people to face loss of SNAP on May 1 under current rules and is deploying technology and interviews to lower error rates.
Kelly Cantrell, deputy administrator for the Division of Social Services, told the interim committee that HR 1 will change SNAP funding and program rules in ways that increase state fiscal exposure and alter who must meet work requirements.
Cantrell said administrative funding shifts from a 50/50 federal/state split to a 75/25 split effective October 1, 2026, increasing Nevada’s administrative burden by an estimated $25 million per year. The department received $19 million in special‑session funding to bridge remainder of the fiscal year but expects an ongoing $25 million ask in 2027 to maintain current operations.
On the benefits side, Cantrell described a new state share based on the SNAP quality‑control payment‑error rate. Based on updated projections DHS presented ranges for state exposure beginning October 1, 2027: roughly $44 million if the error rate falls in the 6–7.99% band, $88 million if 8–9.99%, and up to $132 million at 10% or above. Cantrell said those figures are updated projections and depend on federal calculations.
To reduce the error rate, DHS said it has already implemented process and technology changes: monthly continuous evaluation of income and hours, stronger verification of shelter expenses, mandatory interviews more often than federal minimums, and an analytics platform to detect anomalies and identity issues. Cantrell said these measures have already produced measurable corrections; the department reported an early review‑cycle error rate of 5.79% and monthly analytic reports that identified and adjusted thousands of cases.
The department also discussed SNAP work requirements. ABOD (Able‑bodied Adults Without Dependents) rules now apply to people aged 18–64 (up from 18–54 previously), and exemptions for some groups remain suspended until 2030. DHS projected that roughly 27,000 individuals (about 23,000 cases) could lose benefits as of May 1 in current implementation scenarios, equal to a roughly 6% drop in caseload and a monthly benefit reduction of roughly $5.3 million. Cantrell emphasized the economic ripple effects, noting USDA estimates every $1 in SNAP generates about $1.54 in local economic activity.
Committee members asked whether frontline staff may provide community resource referrals (DHS said front‑line staff are allowed and the agency will clarify and re‑train if necessary), whether retailers and food banks were being notified (yes), and whether identity/fraud patterns had been referred to law enforcement (investigations and DA coordination ongoing).
Why it matters: The combined administrative cost shift and the payment‑error pass‑through create a significant fiscal risk to the state and to community partners. The change in ABOD rules also expands the population required to meet work rules and could reduce assistance for vulnerable people unless mitigations (waivers, exemptions, outreach, navigators) succeed.
Next steps: DHS will continue outreach to retailers, food banks and community partners, expand navigator and eligibility supports, and monitor the federal quality‑control purification process that finalizes error‑rate numbers.
