State is scrambling to fix SNAP food program following $11M fine for errors

Gov. Josh Green’s administration has submitted House Bill 1099 for the $5.46 million emergency appropriation so the state can pursue a “reinvestment option” to resolve the penalty.

A new Department of Human Services computer system called Benefits Eligibility Solution is being developed to replace its current system, which is nearly 40 years old. The $68 million project is scheduled to launch statewide in fall 2026, according to the department.

“Under the terms of the reinvestment option, if the reinvestment results in the payment error rate falling under and remaining below the national average, which is currently 11.68 percent, the State will not be required to pay the remaining 50 percent of the penalty,” DHS Director Ryan Yamane said in written testimony.

About 83,000 Hawaiʻi households receive SNAP benefits totaling more than $60 million per month, according to research published last year by the University of Hawaiʻi Economic Research Organization.

The administration’s request for emergency funding is backed by the Hawaiʻi Appleseed Center for Law and Economic Justice, which pointed out that an estimated 14,000 additional Hawaiʻi families are expected to join the SNAP rolls later this year following a change in state eligibility requirements.

The House Finance Committee gave preliminary approval to HB 1099 on Monday, and the Senate Ways and Means Committee is scheduled to take up a nearly identical request in Senate Bill 1418 on Thursday.