Bill
SB 1840
Arizona SNAP/TANF bill tightens eligibility, boosts fraud monitoring, creates a SNAP Fund, requires quarterly reports, and imposes a 2026-27 TANF drug test with 1-year ineligibilit
Date introduced: 2026
Jurisdiction: Arizona; Title: 2026-2027; human services
Purpose of the bill
- The bill makes broad changes to the administration and oversight of the Supplemental Nutrition Assistance Program (SNAP) and related welfare programs, adds new funding mechanisms and reporting requirements, tightens eligibility and fraud controls, and introduces drug-testing for TANF (Temporary Assistance for Needy Families) cash benefits recipients during fiscal year 2026-2027. It aims to improve program integrity, reduce improper payments, and formalize data-sharing and monitoring processes.
Key provisions
1) SNAP funding and eligibility (new and amended sections)
- 46-232 Supplemental Nutrition Assistance Program Fund
- Establishes a SNAP Fund consisting of monies collected by the Department of Economic Security (DES) from federal deposits (under 7 CFR Parts 271-285).
- DES administers the Fund; monies are continuously appropriated.
- All federal SNAP monies (including federal administrative and benefit shares) must be deposited into the Fund before expenditure.
46-233 SNAP; categorical eligibility; gross income limit
46-234 SNAP; eligibility evaluations; public posting; definitions
46-235 (see below) Payment error rate; quarterly reports; auditor general
2) SNAP payment error rate reductions and oversight (new 46-235)
- Target to reduce SNAP payment error rate to not more than 3% by December 30, 2030 (based on USDA measurements).
- From FY 2026-2027 onward, DES must submit quarterly reports to the Legislature within 30 days after quarter-end detailing:
- Monthly progress toward reducing the payment error rate
- Strategies and barriers to reducing the rate
- If annual interim targets or final target are not met:
- DES must submit a corrective action plan within 60 days, including analysis and timelines.
- DES must pay 50% of any Federal liabilities arising from excess payment errors; the remaining liabilities to be paid from the State General Fund.
- Implement the corrective plan; failure to comply could reduce the department’s administrative funding by 10% until resolved.
- Auditor General special audit due by November 15, 2027 to determine factors contributing to the payment error rate and provide recommendations; DES must implement recommendations within 12 months unless waived by Joint Legislative Audit Committee. Status reports may be requested.
- If the department corrects the payment error rate ahead of schedule, the Legislature may allocate additional funding for program improvements.
3) Repeal timing
- Section 46-235 (as added) is repealed on or after December 31, 2032.
4) Electronic Benefit Transfer (EBT) card controls and out-of-state spending (46-297.01; amended)
- Replacement card procedures:
- After two replacement card requests within 12 months, a recipient is informed that another request will trigger a fraud investigation.
- Third replacement or later: an interview is scheduled to determine fraud before issuing a new card (federal waivers may be needed).
- Fraud triggers for multiple replacements:
- A third replacement within 12 months (and later) may require an interview to determine fraud; a fourth replacement also requires an interview.
- Out-of-state spending controls:
- If a recipient uses more than 10% of their EBT balance on out-of-state purchases within six months, an interview may be scheduled to determine fraud.
- Monthly data monitoring of out-of-state EBT activity:
- DES will identify individuals with purchases exclusively outside the state over a 90-day period; contact within 30 days to establish residency. If the person does not reside in the state, termination of benefits (including SNAP) within 30 days of contact; within 15 days after termination, refer the case to the U.S. Attorney for the District of Arizona.
5) TANF drug-testing requirements (new 46-235D)
- During fiscal year 2026-2027, DES shall screen and test each adult TANF cash benefits recipient who has reasonable cause to believe uses illegal controlled substances.
- A positive test for non-prescribed controlled substances results in ineligibility for TANF benefits for one year.
Effective dates and administration
- The bill proposes new sections and amendments to the Arizona Revised Statutes with the intent to take effect according to its provisions (some provisions reference fiscal year 2026-2027 and longer timelines).
- Section 2 provides for delayed repeal of 46-235, with repeal occurring after December 31, 2032.
Who and what is affected
- Arizona Department of Economic Security (DES): new fund creation, eligibility monitoring, data-sharing requirements, reporting duties, and adjustments to administrative funding tied to performance.
- SNAP recipients (Arizona residents): potential tighter eligibility scrutiny, data matching, and public reporting of program integrity metrics.
- Department of Health Services (DHS) and other state agencies: data-sharing and verification for SNAP eligibility.
- TANF recipients: potential one-year ineligibility for those who test positive for non-prescribed controlled substances (during 2026-2027).
- Individuals with EBT cards: enhanced verification of card usage, fraud investigations for recurring replacement requests, and potential termination for out-of-state residency without authorization.
Key procedural/timeline aspects
- Quarterly DES reporting to the Legislature starting in FY 2026-2027.
- Annual target for SNAP payment error rates by 2030; corrective actions if targets are not met.
- Special Auditor General audit due by November 15, 2027.
- Repeal timeline for 46-235: December 31, 2032.
- Fraud investigations and residency determinations tied to EBT usage evaluated monthly to quarterly.
Overall impact
- The bill strengthens SNAP program integrity through expanded data matching, increased monitoring of eligibility, and public reporting of fraud metrics.
- It imposes stricter controls on EBT card usage and out-of-state transactions and adds a temporary drug-testing requirement for TANF cash assistance recipients.
- It creates new funding and accountability mechanisms to reduce payment errors and achieve compliance with federal standards.
Compiled from official sources — confirm details with the bill’s official record.
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