Human Services, Dept. of - As introduced, requires the department to apply for federal grants and other federal funds available to the state through the federal summer electronic benefits transfer (SEBT) for children program during any year in which the program is offered, for the purpose of providing nutrition assistance through SEBT during the summer months for each eligible child. - Amends TCA Title 49 and Title 71.

114th Regular Session (2025-2026) Introduced by Paul Bailey

The bill requires DHS to apply for and accept federal SEBT SUN Bucks funds to provide summer nutrition assistance to eligible children when the program is offered.

Placed on Senate Finance, Ways, and Means Committee calendar for 4/20/2026

#dept.of #humanservices

Purpose and Intent

The bill requires the Tennessee Department of Human Services (DHS) to pursue and, if approved, accept federal grants and other federal funds available through the Summer Electronic Benefits Transfer for Children (SEBT or “SUN Bucks”) program.

The goal is to provide nutrition assistance to eligible children during the summer months when school is not in session, ensuring continued access to food.

Key Provisions

New statutory requirement: In any year the SEBT for children program is offered, DHS must:

Apply for federal SEBT funding.
Accept federal grants and other federal funds for the purpose of providing summer nutrition assistance to each eligible child.

Coverage scope: Applies to the SEBT program established under 42 U.S.C. § 1762 (SUN Bucks).

Effective date: The act takes effect upon becoming law.

Who/What is Affected

Government programs:

Department of Human Services (DHS) would administer and coordinate SEBT/SUN Bucks funds for summer nutrition.
Department of Education (DOE) would be involved in administering SUN Bucks benefits to students if relevant contracts are needed for coordination.

Beneficiaries:

Eligible children eligible for SEBT SUN Bucks benefits during summer months (when school is out).

Administrative/Contractual Partners:

DHS would potentially contract with outside vendors for program support, technical automation, customer engagement, contact center operations, and appeals processes.
DOE would participate under contract to assist with managing and coordinating SUN Bucks responsibilities.

Financial and Fiscal Implications

State expenditures (General Fund):

Estimated increase: $7,932,000 in FY26-27 and each subsequent year.
Requires 23 additional positions (e.g., program manager, admin law judges, attorneys, and legal support staff).
Net state-expenditure impact may be offset by previously incurred state funding for a 2025 grocery assistance program ($3,000,000 one-time) if SUN Bucks participation replaces those expenditures.

Federal expenditures:

Estimated increase: $91,932,000 in FY26-27 and subsequent years (fully federally funded with certain administrative costs shared 50/50).

Program scale (assumed):

SUN Bucks program is estimated to be about $84,000,000 annually, with federal funding covering the majority of benefits and half of certain administrative costs.

Administrative and contract costs:

Additional DHS and DOE administrative and contract costs are broken out (e.g., data analysis, project management, customer engagement, appeals processing, EBT vendor costs, and system automation).
Total new expenditures to be shared 50/50 between state and federal funds for many line items.

Timeline and Procedural Aspects

Legislative status: Reported and moving through Senate Finance, Ways, and Means as of April 2026; companion bill in House (HB 1835) mirrors SB 1911.

Implementation: If enacted, DHS would implement SEBT-based summer nutrition funding in years when SEBT is offered, aligning with SUN Bucks program availability.

Notable Details

The proposal acknowledges a prior 2025 state-funded grocery assistance program as a one-time alternative when SEBT participation was not in place.

The bill’s fiscal analysis includes explicit staffing and contracting costs, and outlines the expected split of costs between state and federal funds.

The act aligns with federal SEBT requirements and Tennessee’s existing SUN Bucks framework, aiming to ensure ongoing summer nutrition access for eligible children.

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