by Mia Maldonado, Oregon Capital Chronicle
January 13, 2026
The Oregon Department of Human Services says it needs $114.6 million from the state’s general fund to fill gaps in its 2025-27 budget because of cuts and other changes to federal food assistance.
The long-awaited funding request comes after Oregon lawmakers in 2025 set a two-year budget days before President Donald Trump signed a major tax and spending law in July that drastically changed the Supplemental Nutrition Assistance Program, or SNAP, by adding work requirements, limiting benefits for noncitizens, creating more eligibility checks for people enrolled in the program and increasing the administrative cost burden for states.
The timing left lawmakers scrambling to respond to unforeseen budget changes affecting the one in six Oregonians who rely on SNAP.
The department’s funding request has support from Gov. Tina Kotek, who on Tuesday reflected on the results of her 60-day food emergency during the government shutdown that left thousands of Oregonians without access to their SNAP benefits. She directed $5 million to Oregon’s statewide food bank network and $1 million to the nine federally recognized tribes in Oregon. The state received a $6 million match from Oregon Disaster Funders Network.
“We acted quickly to help get emergency food to families, restore SNAP benefits as soon as the courts allowed, and support the community organizations that step up every day to feed people,” Kotek said in a statement. “That leadership saved lives — and it sets the standard for how Oregon will continue to respond.”
Despite the state’s quick response to the disruption of benefits, Oregonians are already seeing the impacts of the new federal law.
“We have households who saw reduced benefits because of changes in utility cost calculations, legal asylees and certain refugee populations lost SNAP eligibility entirely and work requirements expanded from six counties to all 36 counties across the state — increasing verification compliance demands on both clients and the state,” said Nate Singer, the agency’s eligibility program director.
Singer, alongside other Oregon Department of Human Services staff, gave lawmakers a breakdown of what federal SNAP changes may cost Oregon ahead of the 2026 legislative short session.
Agency says work requirements will increase staff demand
The agency is requesting $13.8 million to address the work requirement changes under the law.
The federal law tightens restrictions on who qualifies for exemptions from the SNAP work requirements. For example, it removed exemptions for former foster youth, unhoused individuals and veterans and adults ages 50 to 65. It also narrowed benefits for noncitizens.
The requested amount would support IT system upgrades, outreach and staff resources to manage an increased workload for staff who process applications and determine household benefit levels.
Oregon now has to split SNAP benefit costs with feds
The agency is requesting $39 million for the 2025-27 budget cycle to invest in improving the state’s SNAP payment error rate.
SNAP benefits previously were 100% federally funded, but the new law requires any state with a SNAP payment error rate above 6% to pay between 5% and 15% of benefit costs beginning October 2027. Oregon’s error rate in 2024 was 14%, and it’s mostly because of people not reporting their incomes on time and receiving either too much or too little in benefits, Singer said.
The agency has consulted with states with low error rates and experts to make a plan to lower its own and minimize its financial liability, Oregon Department of Human Services Deputy Director Dana Hittle told lawmakers.
“The resulting plan focuses on the operational basics, such as call center performance management of teams, improving training for staff and communications to clients, as well as integration of artificial intelligence and other technology solutions to streamline and improve processes,” Hittle said.
It would need an estimated $450 million in the 2027-29 budget if the state’s error rate doesn’t improve.
Administrative cost sharing
The agency is requesting $54 million to cover the increase in SNAP administrative costs the state must pay from 50% to 75% beginning October 2026. This amount is meant to cover the change in the 2025-27 budget cycle.
The agency is requesting $142 million for the 2027-29 budget cycle.
“This means a significant increase in general fund obligations just to maintain core operations for us,” Singer said. “These are your eligibility, workers that process and do hearings, call centers, customer supports, our vendor contracts, system maintenance — all these areas shift the cost from the federal government to the states significantly
Investing in SNAP card security
To address increasing reports in electronic benefit transfer SNAP cards, the state will seek $7.1 million from the general fund to support transitioning SNAP cards to chip-enabled cards to strengthen security against skimming and fraud.
There’s been more than 10,600 instances of validated theft of benefits worth $4.1 million since 2023, according to the agency.
“At its core, this budget request is about helping Oregonians meet their basic needs, food on the table and access to health care and services,” Hittle said.
YOU MAKE OUR WORK POSSIBLE.
Oregon Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Oregon Capital Chronicle maintains editorial independence. Contact Editor Julia Shumway for questions: [email protected].