LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 10, 2025 TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB379 by Middleton (Relating to prohibiting the purchase of certain food and drink items under the supplemental nutrition assistance program.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB379, As Introduced: a negative impact of ($764,750) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026($764,750)2027$02028$02029$02030$0All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFederal Funds5552026($764,750)($778,470)2027$0$02028$0$02029$0$02030$0$0 Fiscal AnalysisThe bill would amend the Human Resources Code to prohibit the purchase of various items under the Supplemental Nutrition Assistance Program (SNAP). Items listed include energy drinks, sweetened/carbonated beverages, and various snack foods that do not require further preparation. The bill describes specific exemptions, such as milk-based products or those recommended for a client's use by a health professional. The bill directs the affected state agency to seek any necessary federal waivers to implement the restrictions as changes to eligible purchases are subject to federal approval. The bill would take effect Sept. 1, 2025. The Texas Health and Human Services Commission (HHSC) expects to incur one-time costs in Fiscal Year 2026 for communicating the changes to clients and retailers who accept EBT (Electronic Benefit Transfer) cards for SNAP purchases. The estimate for FY 2026 is $1,543,220 in All Funds.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 10, 2025
TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB379 by Middleton (Relating to prohibiting the purchase of certain food and drink items under the supplemental nutrition assistance program.), As Introduced
TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB379 by Middleton (Relating to prohibiting the purchase of certain food and drink items under the supplemental nutrition assistance program.), As Introduced
Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB379 by Middleton (Relating to prohibiting the purchase of certain food and drink items under the supplemental nutrition assistance program.), As Introduced
SB379 by Middleton (Relating to prohibiting the purchase of certain food and drink items under the supplemental nutrition assistance program.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB379, As Introduced: a negative impact of ($764,750) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for SB379, As Introduced: a negative impact of ($764,750) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
2026 ($764,750)
2027 $0
2028 $0
2029 $0
2030 $0
All Funds, Five-Year Impact:
2026 ($764,750) ($778,470)
2027 $0 $0
2028 $0 $0
2029 $0 $0
2030 $0 $0
Fiscal Analysis
The bill would amend the Human Resources Code to prohibit the purchase of various items under the Supplemental Nutrition Assistance Program (SNAP). Items listed include energy drinks, sweetened/carbonated beverages, and various snack foods that do not require further preparation. The bill describes specific exemptions, such as milk-based products or those recommended for a client's use by a health professional. The bill directs the affected state agency to seek any necessary federal waivers to implement the restrictions as changes to eligible purchases are subject to federal approval. The bill would take effect Sept. 1, 2025. The Texas Health and Human Services Commission (HHSC) expects to incur one-time costs in Fiscal Year 2026 for communicating the changes to clients and retailers who accept EBT (Electronic Benefit Transfer) cards for SNAP purchases. The estimate for FY 2026 is $1,543,220 in All Funds.
The Texas Health and Human Services Commission (HHSC) expects to incur one-time costs in Fiscal Year 2026 for communicating the changes to clients and retailers who accept EBT (Electronic Benefit Transfer) cards for SNAP purchases. The estimate for FY 2026 is $1,543,220 in All Funds.
Methodology
The agency estimates costs related to sending notifications to SNAP EBT cardholders and to vendors who accept EBT cards to notify them of the changes in eligible purchases (mailing, communication and outreach). The agency estimates a General Revenue cost of $764,750 and a Federal Funds cost of $778,470 for an All Funds cost of $1,543,220 in FY 2026.
Technology
No technology impact is anticipated as a result of implementing this bill.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 529 Health and Human Services Commission
529 Health and Human Services Commission
LBB Staff: b > td > JMc, NPe, ER, NT, CMA
JMc, NPe, ER, NT, CMA