HB1661

SECTION 1. The legislature finds that many low-income households struggle to purchase food due to Hawaii's high cost of living and food prices. The supplemental nutrition assistance program (SNAP), formerly known as the food stamp program, is crucial to providing necessary food assistance to some of Hawaii's most economically disadvantaged residents.

The legislature further finds that households with incomes above two hundred per cent of the federal poverty level, as established by the United States Department of Agriculture, are ineligible for SNAP benefits, yet these households are still unable to achieve self-sufficiency. As highlighted by the 2023 ALICE (Asset Limited, Income Constrained, Employed) report, a family of four earning an income of $69,000 per year is ineligible for SNAP benefits but needs an income of over $100,000 per year to meet its basic needs, including housing and food. If the family earned just $1,000 less per year, or $68,000, it would be eligible to receive more than $9,000 in SNAP benefits.

The legislature further finds that the two hundred per cent poverty level eligibility cutoff for SNAP assistance creates an extreme benefits cliff in which an additional $1 per month earned by a household can result in thousands of dollars' worth of lost benefits each year. In addition, the SNAP benefits cliff disincentivizes individuals from reaching their greatest earning potential. Many families just below the SNAP income eligibility threshold decline pay increases because the financial benefit of pursuing economic opportunities does not exceed the potential cost of losing SNAP food assistance.

The legislature additionally finds that SNAP is the most effective anti-hunger initiative in the country. In Hawaii, the program supports over one hundred thirty thousand individuals, bringing more than $630,000,000 into the State's economy each year. Raising the SNAP benefits ceiling to three hundred per cent of the federal poverty level will help economically vulnerable households meet their basic needs without sacrificing their financial security. This can be done by appropriating state funding to cover the cost of SNAP benefits for families who do not qualify for federal assistance, with households who currently quality for federal benefits continuing to receive federal aid.

Accordingly, the purpose of this Act is to provide supplemental nutrition assistance program benefits for individuals and households whose monthly income is equal to or less than three hundred per cent of the federal poverty level.

SECTION 2. Chapter 346, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§346- Supplemental Nutrition Assistance Program; eligibility. (a) Any individual or household whose monthly income is equal to or less than three hundred per cent of the federal poverty level and who meets all other criteria for the supplemental nutrition assistance program established by the United States Department of Agriculture shall be eligible for supplemental nutrition assistance program benefits.

(b) Funds appropriated for the purposes of this section may be used to subsidize the cost of providing supplemental nutrition assistance program benefits for individuals and households whose monthly income is equal to or less than three hundred per cent of the federal poverty level; provided that these funds shall only be used to subsidize benefits for a qualifying individual or household whose benefits are not subsidized by federal funding.

(c) All supplemental nutrition assistance shall be calculated using the federal supplemental nutrition assistance benefit formula established by the United States Department of Agriculture."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $50,000,000 or so much thereof as may be necessary for fiscal year 2024-2025 to provide supplemental nutrition assistance program benefits for households whose monthly income is equal to or less than three hundred per cent of the federal poverty level.

The sum appropriated shall be expended by the department of human services for the purposes of this Act.

SECTION 4. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No. , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. In addition, the appropriation contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $ or per cent. The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. The reasons for exceeding the general fund expenditure ceiling are that:

(1) The appropriation made in this Act is necessary to serve the public interest; and

(2) The appropriation made in this Act meets the needs addressed by this Act.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1661
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII