By Blake Jackson
Proposed changes to the Supplemental Nutrition Assistance Program (SNAP), also known as FoodShare in Wisconsin, could cost the state over $314 million each year. A report by the Wisconsin Department of Health Services (DHS) outlines the financial and social impact of the changes introduced in a federal reconciliation bill.
SNAP currently helps nearly 700,000 residents in Wisconsin afford groceries. However, the bill would introduce stricter work requirements, financial penalties for payment errors, and cutbacks on nutrition education.
DHS analysis shows that the biggest financial burden—about $207 million annually—would come from a new requirement for states to match federal SNAP payments based on their payment error rate. Even though Wisconsin’s error rate was only 4.41% in 2024, one of the lowest in the country, the state would still be penalized.
“Errors can be both overpayments and underpayments to families, and when errors are identified, we correct them, meaning if there was an overpayment to a member that is recouped on future benefits, or if there's an underpayment, we fix that and back pay those payments. So there is already a mechanism to collect errors and overpayments,” said Bill Hannah, the Wisconsin Medicaid Director.
In addition, new work rules would require about 88,000 more people to submit proof of employment. This includes expanding the work reporting age from 54 to 64 and increasing paperwork for parents of school-aged children, even those with disabilities. These changes would add around $44 million in administrative costs.
DHS says these changes would increase the burden on both state and county workers, who would spend more time helping residents navigate new requirements.
Despite the criticism, Republican Congressman Tom Tiffany supported the reforms, calling them “common sense” and aimed at ensuring aid goes to the truly needy.
If enacted, these changes could significantly affect both state budgets and low-income families who rely on food assistance.
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Categories: Wisconsin, Business