Indiana could be on the hook for as much as $360 million a year in SNAP costs. Photo from Getty Images.

By Niki Kelly
Indiana Capital Chronicle

INDIANAPOLIS — Republicans on Indiana’s State Budget Committee rejected an effort to direct state surplus funding to low-income Hoosiers and food banks as federal SNAP benefits expire next month amid a federal shutdown.

Rep. Greg Porter, D-Indianapolis, urged Indiana leaders to step up, arguing that hundreds of thousands of Hoosiers are at risk of losing the food aid they receive through SNAP, the Supplemental Nutrition Assistance Program.

More than 571,000 Hoosiers were receiving SNAP benefits in September, the latest data available, according to the Indiana Family and Social Services Administration.

SNAP benefits are provided on an electronic benefit card that is used like a debit card and accepted at most grocery stores. The benefit is 100% federally funded and administrative costs are split 50% with states – for now.

“We just have to have the will to do it,” Porter said during the committee’s regularly scheduled meeting. “We just (want to) take care of people that live next door to us and in our communities.”

Porter’s motion was symbolic in nature: calling on the governor and the State Board of Finance to take “concrete action” under their authority and provide funding to SNAP recipients and food banks.

Porter said state officials have moved money around for emergencies in the past. He noted the current state budget includes a $300 million contingency fund for three agencies, including the Family and Social Services Administration.

State Budget Director Chad Ranney said that money is for agencies that might have a shortfall in the budget’s second year because of state funding cuts.

Ranney said the Braun administration could take action on its own, without a statement from the State Budget Committee. But a transfer for SNAP would be complicated, he cautioned.

That’s because the money never flows to the state – instead going from the federal government to a third-party provider that loads it onto the EBT cards.

Indiana’s SNAP benefits cost about $112 million a month.

Rep. Ed Delaney, D-Indianapolis, said it would be easier to send additional support to food banks, which will immediately face an increase in demand from hungry Hoosiers.

Sen. Fady Qaddoura, D-Indianapolis, observed that state coffers are running ahead of tax projections. First quarter results show an additional $270 million in revenue has flowed to the state over what was expected.

“It’s just that, unfortunately, Washington, D.C., they’re not getting their acts together, and people will be hungry in the state of Indiana,” Qaddoura said. “I think the responsible thing for us to do as legislators and as a committee is truly to work with the governor’s office and be sure that at least for the upcoming month, hopefully, until they reopen the federal government, that no one in our state goes hungry.”

Sen. Ryan Mishler, R-Mishawaka, said the administration appears to have options but the issue is too complicated to add to the committee’s agenda. Republicans voted 3-2 against the move.

The FSSA said current balances on EBT cards remain available for use. Hoosiers in need of support are encouraged to call 211 to learn about local resources and services available.

“The surest way to protect Hoosiers from a disruption in their SNAP benefits is for Senate Democrats to quickly pass the Clean Continuing Resolution,” FSSA Secretary Mitch Roob said in a statement. “Until then, families across Indiana are left in limbo – their ability to put food on the table tied up in political gridlock.”

Indiana will likely be on the hook for more SNAP costs in the future under changes from Pres. Donald Trump’s administration.

States will pay a percentage of benefit costs depending on their error rates starting October 2027, and they’ll have to pony up for 75% of the administrative costs beginning October 2026. Those changes could cost Indiana up to $264 million more annually, according to FSSA estimates.