State Responses to H.R. 1: Exploring Budgets and Legislation for Public Benefits Delivery [Dataset + Analysis]
This dataset and analysis provide an overview of how states are using budgets and legislation to respond to H.R. 1.
Purpose
Our previous research at the Beeck Center for Social Impact + Innovation focused on how state agencies were beginning to adapt their eligibility and enrollment systems to comply with H.R. 1, the One Big Beautiful Bill Act, changes to the Supplemental Nutrition Assistance Program (SNAP) and Medicaid policies after the bill’s passage in 2025. This dataset and analysis provide an update on states’ efforts by sharing how they are using budgets and legislation to respond to H.R. 1.
Overview of Dataset
The dataset includes state budget requests from the whole of government and specific agencies (such as Health and Human Services), state-authored analysis, Rural Health Transformation Program awards, and legislative actions. Some states have more documents publicly available than others. As of publication of the dataset, some states and territories have passed their budgets for fiscal year (FY) 2026-2027, while others are still deliberating their budgets.
Criteria for Inclusion
| Include | Reject |
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Documents tracking H.R. 1–related changes to state benefits administration processes, including:
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The Centers for Medicare & Medicaid Services (CMS) released new guidance on implementing H.R. 1’s new Medicaid work requirements on June 1, 2026 through an interim final rule (IFR). Many states allocated funds to implement Medicaid work requirements without full details on what is required for their compliance.
H.R. 1 Analysis and State Budgets for FY26-27
Last updated: June 29, 2026
Note: states may have published new since the last update of the dataset.
Examples of Questions to Answer with the Dataset
We provide the dataset to encourage the ecosystem to explore and ask questions about state responses to H.R. 1. Questions that can be answered from the dataset include:
- How are states using funding requests, budgets, and legislative action to respond to H.R. 1 changes in public benefits delivery?
- How do different policy tools shape the scope and speed of state responses?
- How are states changing their administrative and benefits costs introduced by H.R. 1?
- What distinguishes states that pursue short-term fiscal fixes versus long-term budget adjustments?
- How are states signaling potential impacts to residents, including the loss of coverage?
Example Analysis: How will the budgets and policies passed by state legislatures shape state agencies’ responses to H.R. 1?
States with Significant Funding Responses
Some states’ passed budgets or budget proposals provide significant funding and staffing to ensure the states comply with H.R. 1 SNAP and Medicaid requirements. However, these states differ in how specific their budgets detail the allocation of H.R. 1 funding and staffing. This suggests these state agencies may have varying levels of flexibility in their responses.
Minnesota
Several states have biennium budgets passed in 2025 that cover funding through 2027; however, they can be updated with supplements and plans throughout the biennium. Released on April 1, 2026, Minnesota Governor Tim Walz’s FY 2026-2027 supplemental budget proposals for the Minnesota Department of Children, Youth, and Families (DCYF), which operates Minnesota’s SNAP program, and the Minnesota Department of Human Services (MN DHS), which operates Minnesota’s Medicaid program, propose more than $235 million and 64 full-time employees (FTEs) in FYs 2027-2029 to ensure Minnesota’s compliance with H.R. 1 requirements. The budget proposals are very specific in how these resources should be allocated, which suggests Minnesota’s departments may have less flexibility in the actions they take to comply with H.R. 1.
For instance, the governor’s DCYF budget proposal aims to lower Minnesota’s SNAP payment error rate (PER) by:
- Allocating funding and staffing to conduct real-time case reviews prior to approval of SNAP benefits,
- Training county and tribal staff on policies that dictate Minnesota’s SNAP PER,
- Purchasing a “consolidated policy and systems manual and IT tool that will enable an AI chatbot feature for eligibility workers,”
- Investing in SNAP income verification services, and
- Creating a secure application portal.
In response to H.R. 1’s creation of Medicaid work requirements, the governor allocates funding and staffing to both implement the requirements in Minnesota’s Medicaid eligibility system and address the predicted consequences of adding these requirements. This governor’s proposal for the enactment of work requirements includes two FTEs to implement and oversee the requirements, one FTE to train and maintain systems instructions, five FTEs to process Medicaid eligibility determinations, and $1 million annually for data sharing agreements to verify work requirements beginning in FY 2027. Additionally, the governor proposes 15 FTEs on Minnesota’s State Medical Review Team to handle an anticipated increase in those seeking disability determinations.
Maine
Like Minnesota’s proposed supplemental budget, Maine’s passed budget for FY 2026-2027 allocates significant funding and staffing to reduce Maine’s SNAP PER. However, Maine’s budget is less specific in the types of initiatives it allocates these funds and staff for, which suggests Maine’s Department of Health and Human Services (ME DHHS) may have flexibility in how it chooses to address Maine’s SNAP PER. The budget allocates about $4.7 million for 40 eligibility specialists and four “family independence unit supervisors,” as well as all other related costs needed to improve Maine’s SNAP PER. The only more specific SNAP PER-related allocation it makes is about $1.5 million for heating assistance benefits for SNAP participants, which would allow these participants to qualify for Standard Utility Allowances (SUAs), simplifying eligibility calculations and likely reducing caseworker calculation mistakes.
Maine takes a similar approach to its funding and staffing allocations for implementing Medicaid work requirements. Its budget allocates $5 million for 46 FTEs and other costs to implement Medicaid work requirements. While it specifies the types of positions for which that funding should be used, it otherwise does not specify how Maine should implement work requirements, giving ME DHHS flexibility in how it does so.
States with Limited Funding Response
Some states are allocating no or limited funding for complying with some of H.R. 1’s requirements.
Indiana
While a budget analysis by the Indiana Family and Social Services Administration (FSSA) outlines the potential penalties Indiana may face if it does not reduce its SNAP PER, Indiana has included the increased cost, but has limited budgeted funding to improve its SNAP PER as of this publication, which suggests the FSSA may be constricted in its ability to improve the PER. Further, Indiana ended its use of broad-based categorical eligibility for SNAP, a move the Center for Budget and Policy priorities suggests can increase Indiana’s PER by increasing the possibility for mistakes in verifying applicants’ assets.
Alabama
Alabama’s FY 2027 budget includes a provision that specifies that a quarter of the amount of Alabama’s General Fund allocated to its Department of Human Resources (AL DHR) will not be released until AL DHR lowers Alabama’s SNAP PER to at or below 6% by the end of FY 2026 (September 30, 2026), or develops a plan to reduce the amount of SNAP benefits it administers to cover the cost of the penalty resulting from not lowering its PER. The budget does not include additional investments to support AL DHR in lowering the PER, which suggests it may have to reallocate its resources accordingly. SNAP PER is measured through a random case sampling provided by states to the U.S. Department of Agriculture where cases are verified, and many states experience a delay in knowing their current PER. As the at-risk funds cover all of AL DHR’s programs—not just SNAP—this suggests that the loss will impact AL DHR’s other programs, including TANF/family assistance, child support, child care services, adult protective services, and child welfare.
Michigan
As of this analysis, Michigan’s House and Senate were still debating the state’s FY 2027 budget. Michigan’s Governor, Gretchen Whitmer, proposed $2 million for Michigan’s Department of Technology, Management and Budget (DTMB) to create a platform to share data across state agencies to help Michigan’s Department of Health and Human Services (MI DHHS) comply with H.R. 1’s requirements for Medicaid and SNAP. Michigan’s House budget proposal includes similar requirements for MI DHHS to use data sharing to ensure the state is not issuing SNAP benefits to individuals who fall outside of eligibility. The proposal requires MI DHHS to regularly review data on SNAP enrollees from several state and federal agencies, including the Michigan Lottery, the Michigan Department of Labor and Economic Opportunity, the United States Postal Service, the Michigan Department of Treasury, the Michigan Department of Corrections, and the Social Security Administration. However, unlike the governor’s proposal, the House proposal does not allocate funding to facilitate data sharing between MI DHHS and other agencies. If the House’s data sharing requirements are enacted into law without additional funding to implement them, MI DHHS or DTMB may have to reallocate resources to comply.
Get in Touch
Please get in touch with the Digital Government Network at digitalgovernmentnetwork@georgetown.edu with any questions or ideas on how to use this dataset.
