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Committee hears plan to seek state waiver limiting sugary SNAP purchases; members warned of costly error‑rate penalties
Summary
Washington County committee was briefed on federal changes (HR1) and state action (AB 180) that could require the Department of Health Services to seek a waiver restricting purchases and raise county administrative responsibilities. Staff highlighted small sample sizes, a consortium error rate above the federal threshold, and an October 1, 2026 implementation date.
Washington County's Health and Human Services Committee on March 25 received a detailed briefing on how recent federal changes and state legislation could affect SNAP (FoodShare) operations, eligibility and allowable purchases.
Julie summarized changes in the federal budget bill commonly referred to in the meeting as HR1 and explained that Wisconsin's legislature passed AB 180 directing the Department of Health Services (DHS) to seek a waiver that could bar certain purchases (for example, many sodas and some snack items) using FoodShare benefits. "AB 180 ... passed through the Senate about a week ago and, and from what I understand, the governor signed this a few days ago," Julie said. She said the waiver process is not yet implemented but that DHS will pursue it as directed by the legislature.
Julie said HR1 increases state administrative responsibilities (raising state cost share to about 75% from 50%) and includes provisions that could require states to pay a portion of benefits if error rates exceed federal thresholds. To help counties, legislators included funding for staffing: Julie said the package contains roughly $16 million for additional state and county staff to support eligibility and quality control so states can keep error rates below the federal 6% threshold.
The committee discussed how federal error‑rate calculations work and the vulnerability of results to small review samples. Julie said the five‑county consortium serves 23,576 cases, of which 3,629 are Washington County cases. In the 2025 review the consortium sampled 57 cases and found five errors (three agency errors, two client errors). Washington County had nine cases reviewed and one agency error; Julie noted that a single extra error in the county sample could have pushed the observed rate above the 6% threshold. She warned that the federal review looks at state‑level error rates and that DHS estimates exceeding 6% could carry statewide costs (DHS estimated an exposure on the order of $200 million). Using Washington County's $12.7 million FoodShare allotment as an example, Julie said a 5% recoupment of that allotment would be about $600,000.
Supervisors asked whether the consortium model (centralized call center and shared staffing) exacerbates or mitigates the risk of being penalized; Julie replied the consortium provides operational efficiencies and continuity but also means counties share review outcomes. The committee also explored automation and artificial intelligence as ways to reduce errors; Julie said applications are already web‑based but that current federal rules require human review for eligibility determinations, and any systemwide modernization would require state control and sustained funding.
On timing, Julie said the federal changes take effect with the federal fiscal year that begins Oct. 1, 2026. She said it remains unclear whether the state would pass any penalty costs down to individual counties; that would likely require separate legislation.
Committee members did not vote on any measures at the meeting. Several supervisors encouraged further discussion with DHS and the county's legislative advocates to clarify implementation details and possible county budgeting for contingencies.
