Exploring State Options in SNAP

Benefits Fraud and Improper PaymentsHouse Subcommittee on Nutrition, Foreign Agriculture · September 9, 2025 · 119th Congress
The House Agriculture Subcommittee on Nutrition, Foreign Agriculture held its first hearing of the 119th Congress to examine state options and flexibilities in administering SNAP, including broad-based categorical eligibility, standard utility allowances, and county-administered structures. Begins at ▶ 0:25:19
Transcript
Highlights

Title

State cost-sharing and administrative flexibilities under new SNAP law

Purpose

The House Agriculture Subcommittee on Nutrition, Foreign Agriculture held its first hearing of the 119th Congress to examine state options and flexibilities in administering SNAP, including broad-based categorical eligibility, standard utility allowances, and county-administered structures. The hearing came weeks after passage of the reconciliation law (HR1, "One Big Beautiful Bill Act"), which raises state administrative cost shares and imposes new benefit cost-sharing penalties tied to payment error rates, and testimony focused heavily on how those changes could strain state and county budgets. Begins at▶ 0:25:19

Who spoke

• Chairman Brad Finstad (R-MN)▶ 0:25:19: Defended HR1's SNAP reforms as restoring accountability for a program with a $10 billion annual error rate▶ 0:26:10; noted federal thresholds aren't binding law in 44 states▶ 0:29:00; later pressed witnesses on technology/AI barriers▶ 0:56:39 and fraud tools▶ 0:58:31.

• Ranking Member Jahana Hayes (D-CT)▶ 0:30:01: Said the law raises administrative cost share from 50% to 75%▶ 1:03:08 and cited nearly $6 million stolen from 12,000+ Connecticut households via EBT skimming▶ 1:04:07; touted her SNAP Administrator Retention Act▶ 1:06:42.

• Ranking Member Angie Craig (D-MN)▶ 0:34:45: Said the budget cut food assistance by $186 billion▶ 0:35:14 and warned added red tape plus fewer staff will drive error rates up▶ 0:36:35.

• Ms. Chloe Green, APHSA▶ 0:40:48: Explained SNAP's federal income/asset framework and how BBCE raises the gross income threshold to 200% of poverty▶ 0:43:48; later confirmed states unable to cover cost shares "would not be able to operate a SNAP program"▶ 1:55:34.

• Mrs. Joy Bivens, Franklin County, Ohio▶ 0:46:09: Said Franklin County serves 183,000+ SNAP recipients▶ 0:46:31 and would need an added $7.5 million annually under the reduced federal match▶ 0:47:19; described EBT theft victims with no recourse for reimbursement▶ 1:04:34.

• Ms. Korin Schmidt, Wyoming DFS▶ 0:51:28: Said Wyoming's error rate has stayed below 6% since 2015 despite just 12 QC/fraud staff▶ 0:53:27; said front-end fraud detection prevented nearly $1 million in fraudulent benefits over two years▶ 0:55:05.

• Rep. Tracey Mann (R-KS)▶ 1:08:36: Asked how BBCE's TANF-benefit link works in practice▶ 0:09:51 and how AI investment would be evaluated for effectiveness▶ 1:12:23.

• Rep. Angie Craig (D-MN), second round▶ 1:13:39: Pressed on the "wealth transfer" framing of HR1 and cost shifts to counties▶ 1:14:39; noted Ohio had received little USDA technical support▶ 1:18:38.

• Rep. Jim McGovern (D-MA)▶ 1:23:32: Criticized holding the hearing after the cuts were already law▶ 1:23:58; contrasted Massachusetts categorical eligibility ($30,000 cutoff) with Mississippi's ($20,000)▶ 1:25:41; noted Wyoming spends $100/person on SNAP administration, the most in the nation▶ 1:26:41.

• Rep. Frank Lucas (R-OK)▶ 1:28:46: Asked Schmidt about lessons from Wyoming's on-demand interview waiver pilot▶ 1:29:13.

• Rep. Alma Adams (D-NC)▶ 1:33:34: Asked what happens if a state can't afford its new cost share▶ 1:34:23; raised biennial budget cycle conflicts▶ 1:35:23.

• Rep. Mary Miller (R-IL)▶ 1:38:41: Cited $21 million stolen from Illinois SNAP since 2022 and Illinois's high error rate▶ 1:39:39; pressed Schmidt on ID verification to block ineligible enrollees▶ 1:40:04.

• Rep. Andrea Salinas (D-OR)▶ 1:44:14: Said Oregon faces $75 million in new admin costs and up to $250 million more in benefit costs if error-rate targets are missed▶ 1:45:38; noted Oregon used penalty reinvestment to cut its error rate▶ 1:47:23.

• Rep. Tim Moore (R-NC)▶ 1:49:16: Had Bivens confirm HR1 does not require states to push costs to counties▶ 1:50:15; noted 41 states impose no county cost share▶ 1:51:10.

• Rep. Jill Tokuda (D-HI)▶ 1:54:32: Asked Green to confirm a state failing to meet cost share could end its SNAP program entirely▶ 1:55:34; cited Hawaii food insecurity data▶ 1:59:22.

• Rep. Derrick Van Orden (R-WI)▶ 1:59:56: Compared Ohio's $97/case admin cost to Wisconsin's $38.52▶ 2:01:44 and questioned Wisconsin's $43.2 million "automated" data-processing and employment/training spending▶ 2:03:25.

• Rep. Shomari Figures (D-AL)▶ 2:05:54: Had all three witnesses confirm states failing cost-share requirements could eliminate SNAP for everyone, including children, disabled people, and veterans▶ 2:08:03; cited Alabama's $172 million exposure at an 8.5% error rate▶ 1:09:42.

• Rep. Tony Wied (R-WI)▶ 2:11:24: Noted Wisconsin's reported $4.6 billion budget surplus▶ 2:12:17; asked how states choose which flexibilities to adopt▶ 2:13:09.

• Rep. Salud Carbajal (D-CA)▶ 2:16:27: Asked about county fiscal strain from the administrative cost shift, citing California's 34% share of SNAP recipients under county administration▶ 2:16:54; asked whether HR1 addresses EBT fraud▶ 2:21:29.

• Rep. Mark Barrett (R-IN)▶ 2:21:41: Asked Schmidt to detail Wyoming's front-end eligibility grant ($750,000 from USDA FNS)▶ 2:22:25 and asked Green about AI/technology barriers▶ 2:24:55.

• Rep. Jonathan Jackson (D-IL)▶ 2:26:55: Argued HR1's work requirements conflict with Illinois's law barring children under 14 from being left home alone▶ 2:27:45; cited $1 billion added state cost from the 25% match cut for 1.9 million eligible Illinoisans▶ 2:29:08.

• Rep. Emilia Sykes (D-OH)▶ 2:32:50: Pressed Bivens on the $7.5 million Franklin County shortfall and what services (child care, workforce training) would be cut▶ 2:35:11.

Key moments

• Chair Finstad said HR1 stops states from waiving work requirements without qualifying economic conditions, noting 40% of able-bodied adults without children on SNAP lived under such waivers pre-HR1▶ 0:26:10.

• Green, Bivens, and Schmidt all confirmed, under repeated direct questioning from Reps. Tokuda and Figures, that states unable to cover new benefit cost-sharing requirements would be unable to operate a SNAP program at all, cutting off all recipients including children, disabled people, and veterans▶ 1:55:34▶ 2:08:03.

• Bivens said the federal administrative match drops from 50% to 25% starting FY27, requiring roughly $7.5 million in additional annual Franklin County spending▶ 0:47:19.

• Van Orden and Bivens sparred over Ohio's reported $97-per-case administrative cost versus Wisconsin's $38.52, with Hayes later entering a USDA report putting Ohio's actual figure at $33.31 per case▶ 2:01:44▶ 2:10:49.

• McGovern contrasted red-state and blue-state hunger outcomes, saying Texas, Arkansas, Mississippi, and Oklahoma have the worst hunger rates while Massachusetts, California, and Pennsylvania have among the lowest▶ 1:24:27.

• Salinas cited Oregon's estimate of $75 million in new annual administrative costs, potentially compounded by up to $250 million in benefit costs if error-rate targets are missed▶ 1:45:38.

• Schmidt said Wyoming's front-end eligibility fraud-detection program, funded by a $750,000 USDA grant, prevented nearly $1 million in fraudulent benefit issuance over roughly two years▶ 2:22:52▶ 0:55:05.

• Miller cited more than $21 million stolen from Illinois SNAP recipients since 2022 via EBT fraud▶ 1:39:39.

• Moore had Bivens confirm on the record that HR1 does not require states to pass SNAP costs to counties, and cited data showing 41 states impose no county-level cost share▶ 1:50:15▶ 1:51:10.

• Jackson argued HR1's expanded work requirements conflict with Illinois state law barring parents from leaving children under 14 home alone, creating a "catch-22" for single parents▶ 2:27:45.

Metadata

CommitteeHouse Subcommittee on Nutrition, Foreign Agriculture
Chamber / CongressHouse · 119th Congress
DateSeptember 9, 2025
TypeHearing
Witnesses
Ms. Chloe Green — Manager, Food and Nutrition Services, American Public Human Services Association
Ms. Korin Schmidt — Director, Wyoming Department of Family Services
Mrs. Joy Bivens — Deputy County Administrator, Health and Human Services, Franklin County, Ohio
Videoyoutube
Transcript393 caption blocks · 22,695 words · 2:44:09 runtime
EventCongress.gov 118572