Federal Officials Threaten To Cut Millions in Funding to Texas Amid Delays in Benefits
Texas has just been warned by federal officials that its delays in administering SNAP benefits and medical coverage could cost the state millions in funding.
After being found “out of compliance” with SNAP benefits and Medicare, federal agencies have had to step in to ensure that residents have access to necessary services.
Persistent Delays Have Caught the Attention of the Biden Administration
Due to ongoing delays in administering Medicaid and Supplemental Nutrition Assistant Program (SNAP) benefits, the Biden administration has sent several letters to Texas officials. They have officially been warned that the state is putting its relationship with federal agencies in jeopardy by failing to adequately supply residents with services.
Democratic Representative Lloyd Doggett revealed the ongoing issue this week.
What Funding Will Be Pulled?
Several federal groups have agreed to pull funding from Texas if the situation is not rectified. The U.S. Department of Agriculture (USDA) and the Center for Medicaid and CHIP Services (CMS) have all said the state could lose millions in funding.
The SNAP program accounts for roughly 65% of USDA nutrition assistance spending annually. SNAP is a necessary program that provides food security and stimulates economic growth. The use of it should benefit both residents and states.
Governor Greg Abbott Being Blamed for Backlog
Lloyd Doggett has blamed Texas Governor Greg Abbott for the delay in assistance coverage.
In response to the letters sent by the Biden administration, he said, “The indifference of Governor Abbott has left millions of vulnerable families without access to a family physician or the ability to put food on the table.” With more than 65% of Americans struggling with inflation, social benefits are more necessary than ever to provide families with healthy meals.
Any Loss of Federal Funding Should Be Pointed to State Leadership
Doggett believed the idea of Greg Abbott’s inaction to provide for the residents of Texas. “While belated actions from USDA and CMS are much needed, Texans will continue to suffer until we have competent state leadership that prioritizes those most in need. Any loss of federal funding, even administrative funds, would be a direct result of the Abbott HHSC’s failures,” he said of the matter.
Abbott remains popular with his constituents in his state overall. However, the massive cuts to SNAP benefits could have a negative effect on his approval rating.
Snap Benefits Are Out of Compliance in the State
Texas has been issued a warning because it is currently lacking in its Application Processing Timelines (APT), which currently sit at only 67.3%. This rate measures how fast families become approved for SNAP benefits.
The USDA guidelines show that the state needs 95% of applications to be processed within 30 days. There are also instances of expedited cases that can be approved even faster.
Texas Has Been Working To Eliminate the Backlog
Despite the accusations of not meeting USDA standards, Texas has been working this year to reduce the backlog. In 2024, the state reduced outstanding SNAP applications from 160,000 to 90,000.
However, federal officials are still unhappy with the number of residents waiting to be approved and the need for timeliness to be accelerated.
The State Stands To Lose Millions in Snap Funding
The federal administration has now threatened to pull $8.3 million in SNAP funding to the state if the problems aren’t fixed.
Pulling millions in funding would mean that even more residents would go without access to healthy food and groceries.
The State Has Also Been Blamed for Failing To Meet Medicaid Coverage
In addition to failing to administer SNAP benefits, the state has also been accused of low APT rates for Medicaid coverage.
More than 2.1 million Texas residents lost Medicaid coverage after the COVID-19 pandemic rules shifted for eligibility checks. Many lost coverage due to outdated personal information and clerical reasons.
Medicaid Is Not Being Reinstated Fast Enough
Many Texans are finding it difficult to have their benefits reinstated.
A letter sent from CMS says that states “generally must determine eligibility within 90 days for applicants who apply for Medicaid on the basis of a disability, and 45 days for all other Medicaid and CHIP (Children’s Health Insurance Program) applicants.” Texas is far behind on these numbers and failing to catch up.
Inadequate Resources To Deal with Medicaid Applications
The system is currently understaffed and unable to handle the flood of new applications, many of which are from residents who need their medical benefits reinstated.
After federal coronavirus policies ended, the HHSC was required to reconsider millions of applications, resulting in a review of federal officials.
Congress Has Bipartisan Support of SNAP Benefits
Aside from the Texas Republican’s delay in providing SNAP and Medicaid benefits to residents, the programs generally have bipartisan support in Congress.
The support reflects the fast changes in inflation and food change around the country. Currently, more programs and benefits are needed to end food insecurity nationwide.