Receive update on the impacts of H.R. 1, the One Big Beautiful Bill Act, on Yolo County Health and Human Services Agency Operations and to CalFresh Administration for fiscal year 2026-27. (No general fund impact) (Morales) (Est. Staff Presentation: 10 min)

Receive update on the impacts of H.R. 1, the One Big Beautiful Bill Act, on Yolo County Health and Human Services Agency Operations and to CalFresh Administration for fiscal year 2026-27. This item is informational only. No action is requested at this time.

The Yolo County Health and Human Services Agency (HHSA) is providing an update to the Board of Supervisors on the expected impacts of HR 1 on CalFresh administrative funding. HR 1 shifts a larger share of CalFresh, known nationally as the Supplement Nutrition Assistance Program (SNAP), administrative costs from the federal government to states, and consequently to counties. These changes will go into effect beginning October 2026.

The purpose of this report is to share projected cost increases, outline potential budget impacts under several administrative funding scenarios, and provide information on HHSA’s early planning to prepare for these changes.

SNAP is the nation’s largest nutrition program, serving approximately 13% of the county’s population. While benefits are fully federally funded, the cost to administer the program in California is shared across federal, state, and county governments. Currently, California counties cover 15 percent of CalFresh administrative costs. Starting in October 2026, the county’s share will increase to 22.5 percent— a 7.5 percent increase.

Given CalFresh’s importance as a safety-net program for thousands of Yolo County residents, these changes will not only have operational and fiscal implications for HHSA and the County, it can also lead to devastating impacts on program access and food security.

Overview of Administrative Cost Shifts Under HR 1
HR 1 significantly alters how CalFresh administrative costs are shared across governments. To help the Board understand the range of potential impacts, HHSA developed three budget scenarios. These scenarios are planning tools only and are not recommendations or final budget decisions.

CalFresh Administrative Funding Scenarios (HR 1 Impact)

Scenario A – Maximize CalFresh Administrative Allocation
Under this option, Yolo County would fully maximize the CalFresh administrative funds anticipated to be available to the County. Total administrative funding would increase to $16,767,183 dollars, with the County responsible for the new 22.5 percent share. The County contribution under this scenario would be $3,772,616 which is a $1,855,427 increase from the current year contribution. This represents the highest possible level of investment in CalFresh administration under the new funding structure.

Scenario B – Fund CalFresh at the Adopted FY 2025–26 Budget Level
Scenario B applies the new 22.5 percent county share to the existing FY 2025–26 adopted CalFresh administrative budget of $12,754,730. This option maintains current administrative capacity while absorbing the increased County cost required. The County share under this scenario would be $2,869,814 which is a $952,625 increase from the current year contribution. This represents a middle-range investment aligned with current service levels.

Scenario C – Maintain the Current County Dollar Contribution
Scenario C holds the County contribution at its current approximate dollar amount rather than increasing it to be in line with the new 22.5 percent share. Under HR 1, this approach would require reducing the total CalFresh administrative budget. The County share would remain at $1,917,189, resulting in an overall administrative budget of $8,520,840, a reduction of $4,233,890 from the current year’s budget. This would not support current caseload or operational demands.

Impact of Budget Reduction
A reduction to the CalFresh administrative budget would inevitably lead to declining service levels and reduced access for the community. The program currently relies on 73 allocated FTEs (65 after applying typical salary savings) to maintain Monday through Friday office hours from 8am to 4pm across four Service Center locations, along with full Call Center coverage during the same hours. Reducing the overall budget while HHSA works to implement other HR 1 policies will also have implications for how effective the agency can be in mitigating additional harm to program participants. 

A budget reduction of the scale described in Scenario C would require cutting administrative capacity by roughly one-third, potentially leading to a reduction of approximately 8,400 individuals served and significantly impacting the County’s ability to process applications, respond to community needs, and maintain program compliance.


CalFresh Data By City/Rural Population

County Welfare Directors Association
California State Association of Counties
California Department of Social Services