SPRINGFIELD – The recent suspension of federally funded food assistance for needy Americans as well as upcoming rule changes in Medicaid are presenting difficult challenges for state policymakers.
“Over the past several years, here in Illinois, we’ve passed balanced budgets that include rainy-day funds and contingency funds to help us get through emergencies,” State Rep. Anna Moeller told Capitol News Illinois during a podcast interview this week. “But certainly, we don’t have the resources at the state level — no state has the resources — to fully make up for the lack of federal participation in these programs.”
Moeller, D-Elgin, chairs the House budget committee that oversees funding for health and human services. That panel held an informational hearing during the recent fall veto session to update members on changes happening in the federal government and how they affect state agencies and policymakers in Illinois.
Many of the programs overseen by the state involve partnerships with the federal government, Moeller said. The Supplemental Nutrition Assistance Program, or SNAP, the program formerly known as “food stamps,” is fully funded by the federal government but administered by states. Medicaid, the public health insurance program for low-income families, elderly and disabled individuals, is jointly funded by the state and administered by the state.
Moeller spoke to CNI on Wednesday, Nov. 5, in the midst of an ongoing budget stalemate in Congress that has resulted in a partial shutdown of the federal government that began Oct. 1. That shutdown prompted the Trump administration to partially suspend distribution of SNAP benefits nationwide beginning Nov. 1.
On Thursday, Nov. 6, a federal judge in Rhode Island ordered the administration to fully fund its monthly SNAP payments to states, but the administration quickly appealed that decision. Meanwhile, the Illinois Department of Human Services said Friday it planned to distribute partial benefits to SNAP recipients, although many recipients might receive their benefits a few days late.
In Illinois, about 1.8 million people rely on SNAP benefits, Moeller said. She noted that to help fill some of the anticipated gap, Gov. JB Pritzker issued an executive order Oct. 30 directing $20 million to support food banks around the state.
“It’s not going to be enough to be able to meet all of the needs that are out there for people who rely on SNAP to meet their food needs for the month,” Moeller said. “But it’s something that we can do immediately to help shore up the demand that’s going to be out there.”
Moeller said state policymakers are also preparing for major changes in Medicaid that could result in some people being disenrolled from that program.
Under a sweeping domestic policy bill known as H.R. 1, or the “One Big Beautiful Bill Act,” many Medicaid beneficiaries will have to meet new work requirements starting in 2027. The requirement applies to people who qualify for Medicaid under the expanded eligibility provisions of the Affordable Care Act.
Moeller said most of the people who fall into that category already are employed, but officials fear many could lose their coverage anyway just for failing to document their compliance with the rule.
“So our Department of Healthcare and Family Services, the agency that oversees Medicaid, is already developing plans and processes, procedures to make sure that people are not falling off the program unnecessarily,” Moeller said, “using technology, using lessons that we learned from the COVID-19 pandemic, to make sure that we’re getting out to all of the people who are currently enrolled in Medicaid to make this an easier process for them.”
The full interview is available on the Capitol Cast podcast and on the Capitol News Illinois YouTube channel. Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.