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Committee backs plan to fund SNAP outreach and create contingency fund amid federal match cuts
Summary
LD2122 would require technology and staffing to reduce SNAP payment errors, authorize a $750,000/year grant program for community outreach, create an $87 million contingency fund to cover benefits if federal funding interruptions occur, and fund a coordinator role; proponents said federal HR1 changes reduce administrative match and increase state exposure; the committee advanced the measure.
Committee members examined LD2122, a bill intended to reduce Supplemental Nutrition Assistance Program (SNAP) eligibility errors, support outreach and community-based enrollment assistance, and create a contingency fund to maintain benefits if federal funding is interrupted.
The bill would require the Department of Health and Human Services to operate an electronic system to reduce eligibility-determination errors, create a department-run grant program to provide matching funds for community-based SNAP outreach (proposed $750,000 per year), authorize a contingency fund for benefit continuity capped at $87 million with a proposed $87 million appropriation in the draft, and provide ongoing funding for a coordinator position (about $96,400 per year) to manage outreach and error-reduction efforts.
Proponents said federal changes (HR1) will shift administrative-match rates and increase state exposure to payment-error penalties — testimony cited Maine’s most recent payment error rate at 10.26%, above the 6% threshold that triggers state cost-sharing under HR1. The department said it supports outreach but advised that the coordinator role would be preferable as a state position rather than a contractor and that technology and staffing changes are underway to reduce error rates.
Committee discussion also addressed program design details: who supplies matching funds for outreach contracts, whether grants should fund community partners directly or the state should hire coordinators, and the mechanics of the contingency fund. One community witness who previously contracted on SNAP outreach explained that nonprofit partners traditionally provided a 50% match to draw down federal outreach funds; under HR1 the federal match will drop to 25% and nonprofits would face a much larger local share unless state support is provided.
The committee voted (voice and recorded tallies in committee) to pass the bill as amended; the motion passed with recorded support in committee.
