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Safety Net Advocates Bracing for Big Cuts in Medicaid, Food Stamps

This story was originally published by the Institute for Public Service Reporting Memphis.

When Ashlie Bell-Seibers hears about congressional plans to slash Medicaid spending, she thinks about children she knows in Tennessee.

Children like Asher, 12, who sees 17 specialists and who is able to live and be cared for at home because she receives special coverage through TennCare, the state’s Medicaid program.

Then there’s Claire, age 10, who was born with a rare genetic condition that required life-saving open-heart surgery covered by TennCare.

And Aundrea, 8, one of three children in her family with hearing loss, Her growing body requires new and expensive hearing aids covered by TennCare.

Trip, who died at age 2, and whose chemotherapy treatments were covered by TennCare.

“He would have suffered more and died sooner without those treatments,” said Bell-Seibers, who works to support children and youth with special healthcare needs as director of Family Voices of Tennessee at the Tennessee Disability Coalition in Nashville.

Bell-Seibers and other safety net advocates are bracing for severe cuts in federal programs that provide food and health care to millions of lower-income adults and children in Tennessee.

Republican congressional leaders are looking for $2.5 trillion in budget cuts to pay for tax cuts for wealthier individuals and corporations, among other priorities of the incoming Trump administration.

Two of the largest targets seem to be Medicaid (called TennCare here) and SNAP (formerly called food stamps).

“These are massive cuts, bigger than anything we’ve ever encountered,” Gordon Bonnyman, staff attorney and co-founder of the Tennessee Justice Center (TJC) in Nashville, told dozens of safety net advocates in a zoom meeting last week. “They’re going to happen very fast and they’re going to hurt a lot of people.”

Bonnyman said the massive budget cuts will be “camouflaged” in the arcane congressional budget reconciliation process, which is “filibuster-proof,” requiring the approval of a simple majority of members of Congress.

“There are infinite and complex ways for Congress to cut safety net programs without calling them cuts,” Bonnyman said. “Any significant cuts will hurt people.”

Some programs already have been cut.

Four days before Christmas, Congress declined to extend a program that allowed states to replace stolen SNAP benefits with federal funds.

SNAP benefits are delivered on cards with magnetic stripes (and not more secure microchips) that are vulnerable to skimming. States have replaced more than $150 million in stolen benefits since January 2023. More than 11,000 Tennessee families have had their benefits stolen.

“Punishing Tennessee families who are the unwitting victims of crime is exactly the sort of government inefficiency that Donald Trump and his team vowed to root out,” said Signe Anderson, TJC’s senior director of nutrition services.

Punishing Tennessee families who are the unwitting victims of crime is exactly the sort of government inefficiency that Donald Trump and his team vowed to root out.

Signe Anderson, Tennessee Justice Center’s senior director of nutrition services.

The TJC and other advocates filed a lawsuit in federal court Tuesday to hold Tennessee’s Department of Human Services “accountable for its persistent failure to determine eligibility for SNAP benefits on time, in violation of federal law, resulting in significant harm to low-income households.”

Last summer, a federal judge in Nashville found that the state unlawfully terminated Medicaid coverage for tens of thousands of poor families and violated their rights. “Poor, disabled, and otherwise disadvantaged Tennesseans should not require luck, perseverance, and zealous lawyering to receive healthcare benefits they are entitled to under the law,” U.S. Dist. Judge Waverly D. Crenshaw wrote.

Meanwhile, advocates also are working to persuade Gov. Bill Lee to reverse his decision to forfeit federal funds for a program that provides free summer meals for up to 700,000 Tennessee children.

The Summer EBT program provides eligible families who have school-age children with a debit card preloaded with $40 a month per child. The card can only be used to buy food in June, July and August.

In a statement from Lee’s office, the governor said the Summer EBT program is a “pandemic-era” program that is “mostly duplicative.” He blamed “administrative cost burdens” as the reason he chose “not to renew our participation.”

But Congress made the program permanent in 2023. Tennessee received $78 million in federal funds for summer EBT last year and spent $5.7 million administering the program. Lee rejected $1.1 million in federal funds that could have been used to offset state costs this summer.

In a letter to Lee last week, U.S. Rep. Steve Cohen (D-Memphis), asked the governor to opt back into the Summer EBT program by the Feb. 15 deadline.

“Feeding our children is not just a matter of public policy,” Cohen wrote. “It is a moral imperative. Well-nourished children are better able to learn, grow, and lead healthy, well-adjusted lives.”

Summer EBT is a nutrition program run by the U.S. Department of Agriculture, which also runs the much larger Supplemental Nutrition Assistance Program, or SNAP, formerly known as food stamps.

SNAP costs the federal government about $110 billion a year. It’s one of the federal government’s largest entitlement programs, and one of the largest targets for budget cuts.

“It is also the most effective anti-hunger program in the U.S.,” Anderson said.

In Tennessee last year, SNAP benefits — which average $180 a month per household — helped about 820,000 residents, or about 12 percent of the state’s population.

Seventy-one percent are families with children. Thirty-five percent are seniors or disabled adults. Thirty-seven percent are working adults.

Medicaid, one of the largest non-military programs in the federal budget, seems to be the most vulnerable target for massive budget cuts in Washington.

Medicaid is a joint federal-state program that covers acute and long-term health care for groups of people with low income, primarily families with dependent children, elderly people (65 or older), and nonelderly people with disabilities.

One in five Tennesseans rely on Medicaid (TennCare) for healthcare and for protection from medical bankruptcy. That includes half of the state’s children, nearly two-thirds of the state’s nursing home residents, and half of pregnant mothers.

TennCare is the principal source of funding for rural healthcare, including drug and mental health treatment and prevention.

“We need to keep reminding lawmakers what these programs do for not just us, but what they do for the success of all Americans. Before these programs get cut, the time to remind lawmakers is right now,” said Jeff Strand, director of public policy for the Tennessee Disability Coalition.

The federal government spends more than $600 billion on Medicaid each year. States add another $200 billion.

Tennessee spends about $1.4 billion on TennCare, an amount exceeded only by K-12 public education.

Republican congressional leaders are looking at several options for reducing Medicaid’s overall cost.

• Imposing a “per capita cap”, a limit on total funding per enrollee, on federal Medicaid funding. Each state would be assigned its own initial per capita cap based on the state’s current or historical spending. That amount would be set to increase each year, but at a rate below the growth in per capita health care spending. Thus, the cuts would increase over time.

• Turning Medicaid into a block grant program. States would receive a fixed dollar amount each year that wouldn’t adjust for changes in enrollment. Currently, federal funding automatically increases as enrollment or costs increase at the state level. The Congressional Budget Office estimates the caps would cut federal spending by between $450 billion and $900 billion over nine years.

• Reducing “provider taxes” states can impose on hospitals, nursing homes and other health care providers as well as on Medicaid managed care plans. States use the taxes to offset their own costs for administering Medicaid programs. Restricting those taxes would force states to cut Medicaid enrollments and programs.

“These proposals would dramatically change Medicaid’s funding structure, deeply cut federal funding, and shift costs and financial risks to states,” the nonpartisan Center for Budget and Policy Priorities reported last week. “Faced with large and growing reductions in federal funding, states would cut eligibility and benefits, leaving millions of people without health coverage and access to needed care.”

“These proposals would dramatically change Medicaid’s funding structure, deeply cut federal funding, and shift costs and financial risks to states,” the nonpartisan Center for Budget and Policy Priorities reported last week. “Faced with large and growing reductions in federal funding, states would cut eligibility and benefits, leaving millions of people without health coverage and access to needed care.”

Safety net cuts could be especially damaging in Tennessee, where Medicaid is one of several social safety-net programs that the state doesn’t fully fund.

As the Institute for Public Service Reporting showed last year, those extra funds could have reduced the state’s child poverty rate by more than a third and the overall poverty rate by more than a quarter. That translates to about 90,000 fewer children under age 18 living in poverty in Tennessee.

In Nashville, Bell-Seibers wonders how many more children and adults she knows will lose access to health care in the coming months and years.

She also thinks about her own childhood battle with pediatric cancer and where she might be today without TennCare.

“TennCare saved my life,” she said. “TennCare allowed me to grow up and become a first-generation college student. TennCare allowed me to break the cycle of poverty in my family.”

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Tennesseans Seeking Food Aid Stuck in Months-Long Backlogs

Jasmine Bryant was caught by surprise at the grocery store in September, when a state-issued debit card to buy food for her three kids was rejected at the checkout counter.

Her SNAP benefits — formerly referred to as food stamps — had been cut off without notice, despite no change in the circumstances that allow her family of four to access the nutritional help. 

Bryant made multiple calls to the Tennessee Department of Human Services helpline, where hold times stretch to four hours and hang-ups are a frequent occurrence. An online application system was often down. And at a nearby local Knoxville benefits office, where many of the electronic kiosks were out of order and in-person windows were closed, there were hours-long waits, rude staff and security guards, and few answers. 

It would be another three months before the Bryant family was restored to the program that allows the single mom to buy fresh fruits, vegetables and protein for her active, sports-playing kids — ages 13, 11 and 8. 

“I did everything I could to make sure the kids didn’t know what was going on,” said Bryant, 35. “But they noticed. They’re used to me cooking home-cooked meals and fresh food that you can’t really get from food banks. It made me feel like a failure.” Jasmine Bryant, 35, lost access to state food benefits for three months due to backlogs at the Tennessee Department of Human Services.

The family’s benefits, Bryant would learn, had been cut off in error. 

As the holiday season approaches, thousands of Tennessee families who qualify for food assistance have been cut off from food benefits they rely on; families recently out of a job or falling on hard times haven’t been able to successfully access first-time aid. 

State officials blame the rollout of a new computer system in June and an ongoing staffing shortage.

“This year, the Tennessee Department of Human Services experienced its largest technology transition since 1992,” Danielle Cotton, department spokesperson, said. “As we transition from the old system to the new one, there has been a temporary increase in our processing times that we are actively working to mitigate.”

Advocates for Tennessee children and families question why the computer rollout was so poorly launched and note frustrations for families are compounded by widespread reports of mistreatment by state employees. 

“It’s really hard. The reason why people are turning to SNAP is because they’re having a hard time feeding themselves or their families. It’s a lifeline,”  said Signe Anderson, senior director of nutrition advocacy for the Tennessee Justice Center.

Anderson said last week that the problems identified months ago haven’t gotten any better for families, who have turned to community organizations like hers for assistance. Applicants have reported chaos inside DHS offices, she said:  Senior citizens have waited in lines of 150 or more that stretch outside offices into the cold; security guards, at times, have called police about applicants who expressed frustrations; state employees have refused to use translations services for non-English speaking individuals. 

“DHS calls individuals applying for SNAP their ‘customers,’ but we’ve seen none of the respect and dignity in treating people here,” Anderson said. 

Cotton said the agency is also working to recruit and retain staff, offering accelerated training to new hires who work on the SNAP program.  Cotton did not immediately respond to a request last week for vacancy numbers in its SNAP program.

Six months after the the agency installed the new computer system, thousands of low-income Tennesseans remain in limbo. As of November 30, there were 48,690 SNAP applications pending, according to DHS.

Approximately 40 percent of the applications have been stuck in the system for more than a month, despite a federal rules that require states to process applications within 30 days. Cotton noted that not all pending applications are from people who will ultimately qualify for SNAP: one in five applications are denied, she said.

The backlog in processing applications spiked in June, when the state replaced and modernized computer systems. By July, more than 73,000 individuals — mostly children — lost access to food benefits in a single month, a notable drop in a program that sees routine fluctuations in the numbers of individuals receiving benefits. 

The department also changed its once-yearly benefits review of people currently receiving SNAP to once every six months, adding further stressors to the system, Anderson said. 

In many cases, families that applied for the benefit without getting an answer simply reapplied, adding to the volume of cases for agency review. Between June and November, more than 40 percent of applications were duplicates, according to DHS.

For those like Bryant, who already have SNAP that are now subject to a new six-month review, upwards of 500 people have been waiting more than a month to get their benefits reviewed, agency data shows.

“If it hadn’t been for two food banks and people in my community looking out for me, I don’t know what I would have done,” said Bryant.  

Bryant is also enrolled in the Temporary Assistance for Needy Families program, taking required workforce training classes — a chance at a future career that would be lost should she take a job now.

“I’m doing everything I can to try and make a better way,” she said. “DHS has always been bad, but never this bad. I know the staff has to feel overwhelmed, but I don’t understand why they had to make this so hard.”

Tennessee Lookout is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Tennessee Lookout maintains editorial independence. Contact Editor Holly McCall for questions: info@tennesseelookout.com. Follow Tennessee Lookout on Facebook and Twitter.

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Report: Shelby County Should Be Focus of TANF Fund Surplus

Beacon Center of Tenessee

Governor Lee

Shelby County should be the spending focus for the state’s massive $571 million surplus of unused federal funds aimed to help low-income families, according to the organization that discovered the surplus.

Two weeks ago, the Beacon Center of Tennessee, the Nashville-based, free-market think tank issued a report called “Poverty to Prosperity: Reforming Tennessee’s Public Assistance Programs.” The report found that Tennessee spends only a fraction of the federal funds it gets to fund Temporary Aid to Needy Families (TANF) programs here.

One of those programs in Tennessee, called Families First, gives temporary financial assistance to eligible families with children in the form of a cash benefit, as well as employment and job search opportunities, according to the Beacon report. The TANF funding also helps fund TennCare, the state’s Medicaid program.
[pdf-1]
Shelby County represents the largest caseload size of TANF (23.3 percent), TennCare (17 percent), and the Supplemental Nutrition Assistance Program (SNAP) at 22 percent, according to Beacon.

”Tennessee should invest in pilot projects focused on poverty in Shelby County and opportunities to provide more supportive wrap around services for working age adults that need childcare, transportation, education, and employment training services,” reads the report. “Successfully partnering with families in Shelby County to tip the scale in their favor to move from poverty to prosperity would have the single greatest economic impact for the state’s systems of support.” [pullquote-1]
In a letter Wednesday, Memphis Rep. Steve Cohen demanded answers from Tennessee Governor Bill Lee Wednesday on the state’s $571 million surplus of federal funds for needy families. 

Cohen said Tennessee only spent $20 million of its $190 million federal allocation last year, leaving $170 million unspent on TANF programs last year. In all, the unused TANF funds totaled more than $732 million, according to Beacon. Cohen said his $571 million figure included only funds that weren’t yet obligated.

Initially, Lee adminstration officials defended the surplus, saying they’d need the extra funds for another economic downturn. After weeks of backlash over the surplus discovery, Lee said in budget hearings Monday that his office is working on a plan use more of the funding.

For starters, Lee said the Tennessee Department of Humans Services, which administers the TANF funds, will spend about an additional $70 million this year to nonprofit organizations.

But the assurance was apparently not enough for Cohen.

“When 15.3 percent of Tennesseans are living in poverty, it is inexcusable for the state to withhold millions of federal dollars allocated to help this exact population,” Cohen said in a statement. “At best, this has resulted in Tennessee’s gross mismanagement of federal dollars; at worst, Tennessee has deliberately chosen not to assist needy families.”
[pdf-2]
Beacon’s report concluded that Tennessee should take the additional TANF funding and for the Families First program, “focus on creating innovative transition services that reward working parents for each move up the economic ladder toward stability and prosperity like transportation and childcare supplements for families who are working.”

As for TennCare, Beacon said Tennessee should use some additional TANF funding to ”take a deep dive into its caseload” and ”promote more access to care for its enrollees.”

For both programs and SNAP, Beacon suggested “Shelby County should be the main area of focus.” Beacon Center of Tenessee

Beacon Center of Tenessee

Beacon Center of Tenessee

Beacon Center of Tenessee