Changes a U.S. House bill makes to the federal program known as FoodShare in Wisconsin would increase costs for the state, the state Department of Health Services (DHS) reports. (Getty Images Creative)

Food and nutrition cuts in the reconciliation bill that passed the U.S. House early Thursday would cost Wisconsin taxpayers at least $314 million if they are signed into law, a state health official said Thursday.

A requirement for the state to pick up some of the costs of the federal Supplemental Nutrition Assistance Program benefits, a provision penalizing the state for errors in distributing benefits, expanded work requirements for recipients and the elimination of a nutrition education program will all contribute to that cost, said Bill Hanna, Medicaid director at the Department of Health Services (DHS) in a briefing for reporters Thursday afternoon.

The SNAP program is known as FoodShare in Wisconsin and administered by DHS.

SNAP currently includes a work requirement for adults ages 18 to 54 without children to receive benefits. The legislation would raise the upper age to 65 and add the requirement to adults with children who are 7 or older.

Wisconsin has an employment and training program to help FoodShare recipients meet the existing work requirement. With the increase in people who would have to meet the requirement, “We estimate that would cost another $44 million a year,” Hanna said.

Currently the federal government funds 100% of the food benefits under SNAP. The new bill requires states to pick up a portion of the cost, which is tied to a state’s error rate, Hanna said. Errors include the payment of more benefits than a person qualifies for or the payment of fewer benefits than they qualify for.

“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,” Hanna said.

Wisconsin’s error rate is low enough to require the state to submit only a 5% match for SNAP funds under the House Republican proposal, he said. But another change — which would allow zero tolerance even for errors that in the past have not counted against state programs — would boost the state’s required match to 15%.

DHS estimates based on the proposed new requirements the state would have to pay about $207 million a year in benefit costs, he said. If the state is able to reduce its error rate to qualify for the 5% match, it would still need to pay $69 million a year.

A higher state share of administrative costs in the bill would add $51 million to the state’s costs for SNAP, Hanna said.

The state would also lose the $12 million it receives for SNAP-Ed, a program that provides education to SNAP participants on healthier food choices.

U.S. Rep. Derrick Van Orden tours Gilbertson's Dairy in Dunn County. (Henry Redman | Wisconsin Examiner)

When he was campaigning for Congress in western Wisconsin, Republican U.S. Rep. Derrick Van Orden talked about growing up “in abject rural poverty,” raised by a single mom who relied on food stamps. As a result, he has said, he would never go along with cuts to food assistance. 

“He sat down in my office when he first got elected and promised me he wouldn’t ever vote against SNAP because he grew up on it, supposedly,” Democratic U.S. Rep. Mark Pocan said in a phone interview as he was on his way home to Wisconsin from Washington this week.

But as Henry Redman reported, Van Orden voted for the Republican budget blueprint, which proposes more than $200 billion in cuts to the Supplemental Nutrition Assistance Program (SNAP) in order to make room for tax cuts for the very wealthy.

Still, after that vote, Van Orden issued a public statement warning against reckless cuts to SNAP that place “disproportionate burdens on rural states, where food insecurity is often more widespread,” and saying it is unfair to build a budget “on the backs of some of our most vulnerable populations, including hungry children. Period.”

Van Orden sits on the House Agriculture Committee, which was tasked with drawing up a specific plan to cut $230 billion from food assistance to pay for tax cuts. Van Orden reportedly balked at a cost-sharing plan that shifted 25% of the cost of the program to states, saying it was unfair to Wisconsin.

But then, on Wednesday night, Van Orden voted yes as the committee passed an unprecedented cut in federal funding for SNAP on a 29-25 vote.

Van Orden took credit for the plan, which ties cuts to state error rates in determining eligibility and benefit amounts for food assistance. According to WisPolitics, he declared at a House Ag Committee markup that “states are going to have to accept the fact that if they are not administering this program efficiently, that they’re going to have to pay a portion of the program that is equitable, and it makes sense and it is scaled.” 

But states, including Wisconsin, don’t have money to make up the gap as the federal government, for the first time ever, withdraws hundreds of millions of dollars for nutrition assistance. Instead, they will reduce coverage, kick people off the program and hunger will increase. The ripple effects include a loss of about $30 billion for farmers who supply food for the program, Democrats on the Ag Committee report, and damage to the broader economy, since every $1 in SNAP benefits generates about $1.50 in economic activity. Grocery stores, food manufacturers rural communities will be hit particularly hard. 

Wisconsin will start out with a bill for 5% of the costs of the program in Fiscal Year 2028, according to a bill explanation from the Agriculture Committee. But as error rates vary, that number shifts sharply upward — to 15% when the error rate goes from the current 5% to 6%, to 20% if we exceed an 8% error rate, and so on.  

And there are other cuts in the bill, Sen. Amy Klobuchar (D-Minnesota) points out, including stricter eligibility limits, work requirements that cannot be waived in times of economic hardship and high unemployment, and reductions in benefits that come from eliminating deductions for utility costs. 

More than 900,000 children, adults, and seniors count on Wisconsin’s SNAP program, known as FoodShare, according to an analysis of state health department data by Kids Forward. The same analysis found that covering the costs of just 10% of SNAP benefits would cost Wisconsin $136 million. 

Alaska and Texas have higher error rates than Wisconsin, and so they — and their hungry kids — are stuck with the biggest cuts. Even if you accept that that is somehow just, the people who are going to pay for this bill in all the states, including ours, are, as Van Orden himself put it, “the most vulnerable populations, including hungry children. Period.”

“He says one thing and does another,” Pocan says of Van Orden’s flip-flopping on SNAP. “He’s gone totally Washington.”

That’s too bad for the people left behind in rural Wisconsin, who will take the brunt of these unnecessary cuts.