By Noah Zahn
Wyoming Tribune Eagle
Via- Wyoming News Exchange

CHEYENNE — The Wyoming Department of Family Services is asking for $11.5 million more from legislators to support existing core services or to create new programs in response to federal cuts as a result of the One Big Beautiful Bill Act, which shifted more funding responsibility to the state.

The Wyoming Legislature’s Joint Appropriations Committee met Friday with Wyoming DFS to review the agency’s full $346.2 million budget request for the 2027-28 biennium, in addition to the additional $11.5 million.

In a press release following the meeting, Gov. Mark Gordon wrote, “In Wyoming, families come first.”

SNAP faces financial challenges

The most significant portion of the new financial request centered on mandatory increases in state funding required to continue the Supplemental Nutrition Assistance Program, required by the OBBBA.

DFS Director Korin Schmidt said her first priority is nearly $6 million in state general funds to cover an increased state match for SNAP administrative costs. Federal contributions for administration are dropping from 50% to 25%, meaning the state share must increase from 50% to 75% beginning Oct. 1, 2026, to ensure the state remains eligible to administer the program.

DFS highlighted that Wyoming currently ranks fifth in the nation for its low SNAP payment error rate of 5.12%. If the state’s error rate were to rise above 6%, DFS would face paying 5% to 15% of the federal food benefit costs, resulting in an estimated additional $3.1 million per year in state costs for food benefits alone.

Schmidt noted that maintaining the program’s integrity has become precarious due to lack of federal guidance and recent service interruptions.

“We have been put in a really difficult position to manage this work in a way that we’ve traditionally managed it because of the significant changes,” she said.

A related change resulting from the OBBBA is the elimination of the federal SNAP Education program funding, leading DFS to request $3.5 million state general funds to continue the program.

SNAP-Ed funds the University of Wyoming Cent$ible Nutrition program, which offers classes focused on budgeting and making healthy nutritional choices throughout the state.

“In our state, we have taken a very conservative approach to SNAP administration,” Schmidt said before presenting the request for SNAP-Ed funds. “We do not apply for a lot of the extra expansive options and waivers. The waivers that we have are related to making some of our administrative burden a little less.”

Co-Chairman Rep. John Bear, R-Gillette, questioned the program’s efficiency, noting the cost of the education when compared to the value of the food benefits received by participants. Schmidt countered that the program provides essential, lifelong skills.

“The food benefit that we purchase feeds a child. … The education, though, can be generational,” she said. “… If we’re going to really think seriously about restricting foods because of health, then we need to give people a chance to develop healthy behaviors,” she said.

Schmidt also introduced a new program called SUN Bucks that aims to provide nutrition support during the summer months for children —  an estimated 32,000 in Wyoming — who qualify for free or reduced-price lunch.

Though it would be new to Wyoming, the program is an optional federal and state partnership that 37 states already participate in. For the 2027-28 biennium, Wyoming DFS requested a total of $3.5 million for this program, with $1.77 requested in state general funds and $1.77 million in federal funds, which includes a $1.6 million onetime startup request.

The food funds for the program are 100% federally funded, and the administrative costs are split evenly between the state and the federal government.

The program is different from the summer food sites administered by the Department of Education, as children do not have to travel to a centralized site to receive food; the benefits are provided on an EBT card for grocery purchases.

Schmidt said five counties do not participate in the food sites program, and it could overlap with SUN Bucks participants, which deterred some lawmakers.

“I know in my community, (the summer food sites) are working well the way it is. It’ll be tough for me to vote for this,” said Sen. Dan Laursen, R-Powell. “I am just confused. I just hear all the fantastic news of how it’s working in my community with one location.”

Vulnerable populations

The department’s requests for increased direct service funding included $975,280 for the Independent Living Program, which would expand support for former foster youth. 

Schmidt explained that youth aging out of foster care face significantly increased risks of unemployment and homelessness.

When asked by co-Chairman Sen. Tim Salazar, R-Riverton, about the consequences of cutting this funding, Schmidt relied on a moral obligation from the state.

“If we are going to remove children from their homes, if we’re going to say that their parents can’t take care of them and we raise them in a system, I believe we have an obligation to those older youth, just as we do to our own children, to help them transition successfully into adulthood,” she replied.

The additional funds would serve approximately 323 youth between ages 14 and 20 who were previously eligible but unserved by the existing federal allocation.

The department also addressed Adult Protective Services, requesting $1.6 million for emergency housing, safety net services and guardianship support for vulnerable adults. Schmidt noted that as Wyoming ages, the existing biennial state appropriation of $80,000 is no longer sufficient to cover emergencies like providing temporary housing or managing complex legal guardianships for clients.

Schmidt said Wyoming is among the many states that currently intercepts federal benefits intended for children in foster care, such as survivor benefits, to offset the state’s costs of care, a practice the federal Administration for Children and Families recently directed governors to end. 

She stated that DFS is investigating compliance and believes the estimated $200,000-per-year loss, which it currently intercepts, is manageable.

Bear asked Schmidt about how DFS draws the line between “bad parenting” and legal neglect amid high reporting rates from schools. Schmidt said that reports from educators rarely lead to actionable cases, and it is often a difficult balance to determine when the government should intervene or remain uninvolved.

“We do not want to intervene in such a way that we bring in the heavy hand of government,” Schmidt said.

In his news release, Gordon wrote in support of Wyoming families as DFS is requesting $11.5 million more than he approved in his initial proposed budget.

“When working mothers and fathers are unable to meet the family’s wholesome nutritional needs, despite working sometimes three jobs, we have to acknowledge the problem,” Gordon wrote.

The release further stated that Gordon “urges continued support for programs that help families stretch their food budgets, improve financial stability and connect with community-based resources.”

The JAC meeting Friday concluded two consecutive weeks of lawmakers hearing budget proposals from state departments ahead of the 2026 budget session which begins Feb. 9. The final two weeks of JAC meetings are scheduled to begin Jan. 5.

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