House approves historic public assistance reform bill aimed at moving Kentuckians from welfare to work

FRANKFORT, Ky. (March 17, 2022) – Members of the House voted today to approve HB 7, legislation that retools Kentucky’s public assistance programs to emphasize work, ensure eligibility, and target fraud and misuse. The measure, HB 7, is sponsored by House Speaker Pro Tem David Meade and Speaker David Osborne and is the first step in modernizing the state’s approach to help Kentuckians transition from welfare to work.

“These public assistance programs were created to act as safety nets to help Kentuckians when they need it most. Today they represent billions of dollars in government spending but provide little measurable success in helping people regain independence. We owe it to the people of this state – particularly those who need assistance – to ensure that our focus is on getting able-bodied people into the workforce and off public assistance,” Meade said. “These ideas are not new and they are not designed to deprive those in need of benefits. In fact, they are the result of several years of stakeholder input, analysis, and public discussions.”

HB 7 would require the Cabinet for Health and Family Services (CHFS) to seek a waiver to implement a work-related activity requirement in SNAP households without a child under the age of 18. The work-related activity requirement has existed for years but was temporarily halted due to the Covid pandemic. The measure also extends an existing SNAP community engagement requirement to Medicaid recipients.

The bill creates a SNAP transitional benefit aimed at ensuring families transitioning off benefits continue to receive food assistance and calls upon the Education and Workforce Development Cabinet to develop a job placement assistance program for Medicaid recipients.

“One of the most promising aspects of this bill is a mandate that the state look into leveraging the Child Care Assistance Program to better serve parents entering the workforce,” Meade added. “We know that a lack of access to quality child care is one of the leading barriers to work, but we’ve heard nothing from the administration about how we can use existing resources to better serve this need.”

Meade was also quick to point out what the bill does not do. For example, nothing in the measure applies to foster care, kinship, fictive kin, or relative placement payments. The measure also makes no changes to eligibility requirements for the Supplemental Nutrition Assistance Program (SNAP).

“HB 7 doesn’t make a single change to SNAP eligibility requirements, nor does it take benefits away from our most vulnerable. The only way someone would lose their benefits is if they break the law or are an able-bodied adult who chooses not to work,” Meade said. “Public assistance is supposed to be a safety net, but these programs have evolved to become a hindrance to the very people they are supposed to help.”

The provisions of HB 7 include language that makes the following changes:

 Emphasizes and Values Work:

• Requires the Cabinet for Health and Family Services (CHFS) to pursue a waiver in order to establish a work-related activity requirement in SNAP households without a child under the age of 18.
• Requires the CHFS to implement a community engagement requirement in Medicaid households without a child under the age of 18.
• Extends an existing SNAP community engagement requirement to Medicaid. This would require CHFS to implement a community engagement program for beneficiaries without a child under the age of 18.
• Establishes a SNAP transitional benefit alternative to ensure families transitioning off benefits continue to receive food assistance.
• Requires the Education and Workforce Development Cabinet to develop a job placement assistance program for Medicaid recipients and a website to allow private employers to post job openings.
• Directs CHFS to analyze TANF/KTAP expenditures to identify any unobligated funds and use them to fund job placement assistance.

 Ensures Eligibility:

• Requires the state to stop paying benefits to those who do not meet all requirements to qualify for public assistance.
• Holds hospitals accountable for their role in determining eligibility when screening for public assistance. Hospitals began screening all patients for Medicaid eligibility after the Affordable Care Act passed in 2010. Historically, only children and pregnant women were eligible for coverage before their application was fully processed.
• Requires CHFS to coordinate with the Department of Corrections Victim Information and Notification Everyday (VINE) network to identify beneficiaries who are incarcerated or released.

Targets Fraud and Misuse:

• Places SNAP and Medicaid benefits on one EBT card.
• Allows the state to eliminate eligibility for all public assistance programs for individuals found to be trafficking in EBT cards. Custodial parents who lose benefits could reassign them to another person to protect those benefits for the child.
• Codifies federal prohibitions on the use of cash benefits to purchase alcoholic beverages, tobacco products, or vaping products; goods or services at a casino or adult entertainment establishment; and services from tattoo or body piercing facilities.
• Makes anyone who owes child support ineligible for public assistance benefits until the balance of support is paid.

 Explores Options to Expand Access to Quality Child Care for Working Parents and Health Care:

• Requires CHFS to report to the Public Assistance Oversight Committee regarding possible changes to the Child Care Assistance Program aimed at increasing eligibility and streamlining copayments.
• Establishes the Benefits Cliff Task Force to investigate barriers to employment.

While public assistance costs are skyrocketing and more than a third of our population is on some form of Medicaid, Kentucky has one of the lowest workforce participation rates in our nation and almost 45% of those who could be working are not despite the fact there are more than 150,000 available jobs.

“We can’t spend our way out of poverty and into prosperity, so we must be intentional with the resources we have and the programs we offer. If they are not working, we must fix them. Maintaining the status quo is nothing short of failing the people these programs were created to help. HB 7 brings us closer to helping people reach their potential,” Osborne added.

To read the entire text of HB 7 and track its progress, visit legislature.ky.gov.