Senate Finance Committee hears amendment to HB 1574 as DHHS warns of $4.4M SNAP administrative shortfall

At a Senate Finance Committee hearing, Department of Health and Human Services officials told senators that a federal change will require New Hampshire to cover a larger share of Supplemental Nutrition Assistance Program (SNAP) administrative costs, leaving the state with an estimated $4.4 million shortfall for fiscal 2027 unless the Legislature provides relief.

Nathan White, chief financial officer for the Department of Health and Human Services, said the federal change in HR1 moves the administrative-match rate from roughly a 50/50 split to a 75 percent state share and 25 percent federal share effective Oct. 1, 2026 (state fiscal year 2027). "I have zero concerns about" the amendment causing a double payment, White said, explaining the department allocates SNAP administrative costs across multiple accounts and would follow fiscal-committee procedures for any transfers.

The shift, DHHS officials said, took effect after the current budget was finalized, so the department did not include the additional cost in its request. Committee members and witnesses discussed the magnitude of the impact: DHHS described about $24 million as the total SNAP administrative base the state has historically claimed in federal reimbursement and said the 75 percent change will leave approximately a $4.4 million hole for the partial year covered in FY27.

Representative Tony Weinstein, prime sponsor of HB 1574, told the committee he supports the bill and the amendment and described his work with food-insecure residents through a local food pantry and the New Hampshire Food Bank. "Ensuring that the SNAP program is adequately funded and adequately administered should be a priority," Weinstein said.

Laura Milikin, executive director of New Hampshire Hunger Solutions, urged the committee to back the amendment and warned that under HR1 the program's payment error rate could expose the state to substantial costs. DHHS staff explained how payment-error thresholds carry financial consequences: if the federal payment-error rate rises above certain bands the state becomes liable for a portion of benefit overpayments (examples discussed in the hearing included a 5 percent liability in some bands and higher liabilities if the rate rises further).

Committee members pressed DHHS for program details. DHHS provided figures for context: an average SNAP benefit of about $350 per month, roughly 70,000 individuals (about 43,000 households) participating, and approximately $158 million in annual SNAP benefit payments flowing through the state. DHHS also said the state recently received more than $1 million in 100 percent federal funds to improve SNAP-related IT functions and noted the department is pursuing system changes to reduce clerical errors and lower the payment-error rate.

Several senators signaled they will support the bill while reserving the right to seek efficiency improvements later. One senator said the $24 million administrative figure felt high for the program's scale and signaled plans to review modernization and process improvements next year; DHHS warned that cutting administration could increase the error rate and produce larger costs down the line.

The committee closed the public hearing and voted by voice to enter executive session for further discussion; it later reconvened and adjourned without taking a final vote on HB 1574 during the public session. The chair indicated he planned to consult caucuses and additional members before scheduling further action.