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Agency Recommendation Summaries

Department of Social and Health Services - Economic Services Administration

  Average Annual FTEs Near General Fund State Other Funds Total Funds
  (Dollars in Thousands)
Current Budget 3,938.4 1,472,591 1,921,885 3,394,476
2025-27 Maintenance Level 3,934.4 1,495,341 1,869,563 3,364,904
Difference from 2025-27 Original (4.0) 22,750 (52,322) (29,572)
% Change from 2025-27 Original (0.1%) 1.5% (2.7%) (0.9%)

2026 Policy Other Changes

ACES Contractor Services 0.0 11,292 8,748 20,040
Administrative Reduction 0.0 (961) 0 (961)
Asset Verification System M&O 0.0 716 265 981
Federal Shutdown- Food Security 0.0 2,150 0 2,150
IE&E - CMS Rules 0.0 47 (47) 0
ORIA Support Services 2.5 25,000 0 25,000
Report Self-Employed Workers to DCS 0.80 85 166 251
SNAP & FAP Work Requirement Changes 93.2 13,910 12,859 26,769
SNAP Benefit Match 0.80 693 560 1,253
SNAP Natl. Accuracy Clearing House 1.7 818 818 1,636
SNAP Quality Control Staffing 3.8 688 370 1,058
Summer EBT 0.0 2,138 2,137 4,275
Supports for Unaccompanied Children 0.50 500 0 500
Wage Verification 0.0 2,071 1,542 3,613
Work Requirement IT Project 0.0 3,278 5,752 9,030
WorkFirst Contracted Services 0.0 (917) (4,691) (5,608)
WorkFirst Fund Shift 0.0 (14,000) 14,000 0
2026 Policy Other Changes Total 103.3 47,508 42,479 89,987
Total Policy Changes 103.3 47,508 42,479 89,987
2026 Policy Level 4,037.7 1,542,849 1,912,042 3,454,891
Difference from 2025-27 Original 99.3 70,258 (9,843) 60,415
% Change from 2025-27 Original 2.5% 4.8% (0.5%) 1.8%

Policy Changes

ACES Contractor Services

Funding is provided to increase Automated Client Eligibility System contractor support for a 12-month period to increase the agency's capacity to implement critical system enhancements, including but not limited to, changes made to the Supplemental Nutrition Assistance Program through the passage of H.R.1 (P.L. 119-25). (General Fund - Federal, General Fund - State)

Administrative Reduction

Funding is reduced to reflect a reduction in administrative services. (General Fund - State)

Asset Verification System M&O

Funding is provided for the ongoing maintenance and operation costs of the fully automated Asset Verification System, specifically for the data exchange. (General Fund - Federal, General Fund - State)

Federal Shutdown- Food Security

Due to delays in the distribution of November 2025 food benefits to SNAP and Food Assistance Program (FAP) recipients caused by the federal government shutdown, the Economic Services Administration (ESA) transferred funds from the FAP program to Washington's Department of Agricultural to assist with the increased demand at local hunger relief organizations. Funding is provided to reimburse ESA for the transferred funds. (General Fund - State)

IE&E - CMS Rules

Funding for the IT project to align eligibility rules with the Centers for Medicare and Medicaid Services' regulations is reduced in fiscal year 2026 and increased in fiscal year 2027 to align with expected expenditures. (General Fund - Cash, General Fund - Local CRC Oregon, General Fund - State, other funds)

ORIA Support Services

One-time funding is provided in fiscal year 2027 to the Office of Refugee and Immigrant Assistance to continue offering expanded support services for individuals newly arriving to the United States who do not qualify for federal refugee resettlement program services. Supports include, but are not limited to, housing, immigration-related legal services, case management, and navigation assistance. (General Fund - State)

Report Self-Employed Workers to DCS

Funding is provided for system enhancements and staff necessary to establish a reporting requirement to the Division of Child Support for anyone who hires contractors or subcontractors that they pay $600 or more within a given year. Current law requires employers to report new hires to the Division of Child Support, but not when they hire a contractor or subcontractor. With this information, the Division of Child Support will have greater opportunities to collect child support for children. As currently drafted, this policy, Reporting Self-Employed Workers to the Division of Child Support (HB 1297), would become effective January 1, 2027. (General Fund - Family Support/Child Welfare, General Fund - State)

SNAP & FAP Work Requirement Changes

H.R.1 (P.L. 119-25) makes changes to the work requirements associated with SNAP. The changes expand who must participate in work requirements and limit who qualifies for an exemption. To accommodate the increased number of adults subject to work requirements, funding is provided for the temporary staffing needed to monitor and track work participation before IT system enhancements can be implemented, as well as the ongoing staff needed for increased workload after the IT enhancements. Funding is also provided to expand the Basic Food Employment and Training program to serve more participants statewide. Because the state's FAP mirrors the federal SNAP program, the work requirement changes also apply to FAP recipients. (Employment Services Administrative - State, General Fund - Federal, General Fund - State)

SNAP Benefit Match

H.R.1 (P.L. 119-25) requires states to cover a percentage of Supplemental Nutrition Assistance Program (SNAP) benefits dependent upon a state's SNAP payment error rate. SNAP benefits have previously been 100% federally funded. Funding is provided that assumes a 5% GFS match on the total SNAP benefit payment beginning Oct. 1, 2027. Funding is also provided for necessary IT system enhancements. (General Fund - Federal, General Fund - State)

SNAP Natl. Accuracy Clearing House

Funding is provided to the Economic Services Administration to implement a federally mandated interstate data matching system for SNAP by October 2026. The funding covers IT enhancements and staffing. (General Fund - Federal, General Fund - State)

SNAP Quality Control Staffing

Funding is provided for six additional quality control staff to address more complex Supplemental Nutrition Assistance Program (SNAP) case reviews due to changes made in H.R.1 (P.L. 119-25) and to build a performance system team that leverages expertise across integrity and eligibility programs to focus on reducing Washington's SNAP payment error rate. (General Fund - Federal, General Fund - State)

Summer EBT

Funding is provided to cover the third-party vendor costs to administer the Summer Electronic Benefit Transfer program through March 2028. Within existing resources, the Economic Services Administration will complete a competitive request for proposal process for future third-party vendor options. (General Fund - Federal, General Fund - State)

Supports for Unaccompanied Children

One-time funding is provided for supports for unaccompanied immigrant children and their sponsors in fiscal year 2027. (General Fund - State)

Wage Verification

Funding is provided in fiscal year 2026 for increased service fees and usage associated with Work Number (formerly TALX), which is an online Equifax database used to verify employment and salary information for cash and food benefit eligibility. Federal expenditure authority is also provided to match a grant that covers the costs associated with piloting TRUV, an alternative work verification platform. (General Fund - Federal, General Fund - Medicaid Federal, General Fund - State, other funds)

Work Requirement IT Project

Funding is provided for IT enhancements necessary to create a work requirement verification hub. (General Fund - Federal, General Fund - State)

WorkFirst Contracted Services

Funding for WorkFirst contracted services is reduced by 10%. This reduction applies to WorkFirst services offered by the Department of Commerce, Employment Security Department, State Board for Community and Technical Colleges, and Department of Children, Youth, and Families. (General Fund - Federal Dedicated, General Fund - State, General Fund - Temporary Assist for Needy Families)

WorkFirst Fund Shift

Savings are achieved in General Fund-State by using funds from the Administrative Contingency Account-State for WorkFirst services in the 2025-27 biennium. (Administrative Contingency Account - State, General Fund - State)