Bill > SB1418

This bill makes an emergency appropriation of $5,467,164 to the Department of Human Services (DHS) to address a penalty assessed by the United States Department of Agriculture Food and Nutrition Service for high payment error rates in the Supplemental Nutrition Assistance Program (SNAP). During the COVID-19 pandemic, DHS was granted waivers that allowed flexible benefit processing, but after the pandemic, the state experienced increased payment errors due to changing requirements and staffing challenges. In June 2024, DHS was assessed a penalty of $10,934,327 for having SNAP payment error rates above the national average for two consecutive federal fiscal years. Instead of paying the full penalty, the federal agency offered an option to reinvest 50% of the penalty into program improvements. The bill's funding will support the development of a new eligibility system designed to automate tasks and reduce worker errors, with the goal of lowering the payment error rate below the current national average of 11.68%. If successful, the state will not be required to pay the remaining 50% of the penalty. The bill acknowledges that the general fund expenditure ceiling for fiscal year 2024-2025 will be exceeded but argues that the appropriation is necessary to serve the public interest and address critical program needs.