SF2422: Public Assistance Reform (Senate Version)

Requires use of the federal Systematic Alien Verification for Entitlements (SAVE) system to verify immigration/citizenship for all public assistance applicants. It sets the SNAP income threshold at 160% FPL, mandates inclusion of all household members’ income/resources (even ineligible members), and restricts SNAP eligibility to citizens, nationals, and certain lawfully present aliens. For Medicaid and the Iowa Health and Wellness Plan, the bill shortens retroactive eligibility (pending federal approval) and establishes new annual reporting requirements. It also mandates cost neutrality analysis for all Medicaid waivers or amendments expanding coverage, requiring legislative approval if not cost neutral. Effective immediately upon enactment, with some provisions contingent on federal waiver approval.

Key Points & Impacts

• Mandates verification of immigration/citizenship status for public assistance applicants using the SAVE online service.

• Sets SNAP gross income threshold at 160% of the federal poverty level and requires counting all household members’ income/resources, including those ineligible for SNAP.

• Restricts SNAP eligibility to U.S. citizens, nationals, certain lawful permanent residents, Cuban/Haitian entrants, and certain compact residents; others are ineligible.

• Requires notification to USDA if immigration/citizenship status of any SNAP household member cannot be verified.

• All Medicaid benefits must be delivered via managed care, except for those exempt as of July 1, 2026.

• Shortens Medicaid retroactive eligibility to two months (from three), and Iowa Health and Wellness Plan retroactive eligibility to one month (from three), contingent on federal approval.

• Establishes annual reporting by HHS on retroactive eligibility impacts and fiscal effects, with reports made publicly available.

• Mandates cost neutrality analysis for all Medicaid waivers/plan amendments expanding coverage; non-cost-neutral proposals require legislative approval.