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Committee hears that SNAP administrative shortfall could be $4.4—6.6M; bill would let DHHS seek fiscal approval for transfers over $100,000
Summary
Senator Daryl Abbis and DHHS staff said SB 603 would allow the department to seek fiscal-committee approval to transfer funds within DHHS to cover an estimated $4.4—6.6 million shortfall from reduced federal SNAP administrative reimbursements; hunger advocates urged state action to avoid higher payment error rates and pressure on food banks.
Senator Daryl Abbis told the Finance Committee that Senate Bill 603 would permit the Department of Health and Human Services to seek approval from the joint fiscal committee for transfers above $100,000 to cover shortfalls created when federal SNAP administrative reimbursement rates were reduced.
"This allows the department to go to fiscal to seek anything over $100,000," Abbis said. DHHS staff testified that the department expects roughly a $4.4—6.6 million general-fund shortfall in the current biennium because the federal admin reimbursement shifted in favor of the federal government, reducing state-eligible reimbursement.
Brian Clark, general counsel for the division of economic stability, and Nathan White, DHHS CFO, explained that the dollars affected by the shortfall are spread across many accounts (personnel, contracts, indirect costs) and that transfers consistent with RSA 916A would be necessary absent a legislative appropriation. They also warned that staffing vacancies and underinvestment in eligibility work can raise payment error rates, which would increase future state obligations under federal match rules.
Witnesses from hunger organizations described operational strain on local providers during brief SNAP disruptions and urged the legislature to ensure administrative capacity so payment error rates do not rise. The committee heard that emergency relief distribution during a recent SNAP interruption produced about 136,610 additional meals over two weeks and that the department had previously requested emergency fiscal help.
