Gov. Evers, Evers Administration Lead Coalition Urging Court to Reject Last-Ditch Trump Administration Effort to Yank Newly Restored SNAP Payments

MADISON — Gov. Tony Evers and the Evers Administration led a coalition of states and governors in filing a new letter before the 1st U.S. Circuit Court of Appeals asking the court to reject the Trump Administration’s last-ditch effort to yank SNAP payments from states across the country, including from nearly 700,000 Wisconsinites who only yesterday were paid their November payments after the program previously ran out of funding November 1. In a filing late last night, Gov. Evers, along with a delegation of governors and states, urged the court to enforce a directive requiring the Trump Administration to ensure federal resources are available to pay November SNAP payments for Wisconsin and other states across the country, as required by a recent court order.

“The Trump Administration is actively trying to prevent Wisconsin from being able to rely on readily available federal resources to support full November FoodShare payments for nearly 700,000 Wisconsinites, including 270,000 kids. It’s unconscionable,” said Gov. Evers. “The Trump Administration was ordered to use available federal resources to make this happen so millions of folks across our state and country can access basic food and groceries. But the Trump Administration has consistently refused to produce resources for full or even partial payments to ensure kids, families, and seniors in Wisconsin have food to eat today. There’s no excuse for the fact that the Trump Administration has refused for weeks to do what they know they can, which is to use available federal resources to feed hungry kids and families, even as they’ve repeatedly told states and the courts they’re working to do so. The court must hold them accountable.”

The new filing notes that the Trump Administration moved for a stay of the District of Rhode Island’s temporary restraining orders on Friday, November 7—the next day after having filed a motion for appeal and Wisconsin had already processed and provided payments to its FoodShare recipients. But then, hours later, the Trump Administration yesterday, on November 7, notified states, including Wisconsin, that it was implementing full SNAP benefits for November, and would “complete the processes necessary to make funds available,” assuring both the courts and the states that it was working in earnest to do so. Consequently, “many States began submitting files to their vendors for full November benefits.”

Hours after sending the letter affirming to states that they were working to implement full SNAP benefits, which several states relied upon in moving to begin processing full payments as Wisconsin did, the Trump Administration then appealed to the U.S. Supreme Court requesting an emergency stay, which was ultimately granted.

“The States have experienced the significant confusion the federal government has created around the payment of SNAP benefits—first agreeing to provide partial benefits, then filing a motion to stay in the First Circuit, then informing states that it would provide full benefits, and then filing a motion to stay in the Supreme Court,” the filing states.

On Wednesday, hours after a federal court directed the Trump Administration to use readily available federal resources to make full November SNAP payments to states—and after the Trump Administration filed a notice of appeal to the 1st Circuit Court of Appeals but long before the Trump Administration filed a request to put the federal court’s directive on hold—Wisconsin became likely the first if not the only state in the country to have its SNAP files uploaded by the 10 p.m. deadline by which FoodShare benefits for the next business day are typically processed. Nearly 700,000 Wisconsinites woke up the next morning with full November FoodShare benefits activated on their QUEST cards, ready and available to be used for local food and grocery purchases.

There are two parts to processing SNAP payments for Wisconsin FoodShare: the first part involves making EBT credit available to FoodShare members; the second part involves permitting payment, essentially like a reimbursement, to retailers who accept EBT credit.

The Wisconsin Department of Health Services (DHS) is responsible for part one, which is determining which households are entitled to SNAP benefits and the benefit level for each household. This beneficiary information is then transferred by DHS in the form of electronic benefit issuance files to FIS, a third-party vendor. FIS then, on behalf of DHS and USDA, uses the information in the benefit files to authorize and load the approved SNAP benefits on eligible recipients’ EBT cards. DHS completed its portion of the process on Wednesday night.

FIS and the federal government are responsible for part two of the FoodShare payment process. On a daily basis, FIS settles with food retailers and third-party processors that provide groceries to SNAP recipients, paying them an equal amount to the SNAP benefit purchase transactions recorded during the day.

To ensure retailers who accept EBT credits receive payment for accepting EBT credit, FIS sends the same benefits issuance information it uses to load EBT cards to a USDA system to confirm the U.S. Treasury has sufficient funds to cover the total amount of the benefit files. If that transaction is approved, the USDA’s system increases Wisconsin’s “Letter of Credit.” After FIS settles the daily amounts credited to food retailers and third-party processors, FIS then initiates a transaction that verifies that Wisconsin’s Letter of Credit is sufficient to cover the amount of the credit. If the Letter of Credit is verified, then food retailers and third-party processors receive payment for the EBT credits. This is how food retailers receive payment for SNAP benefit purchases every day.

However, on the morning of November 7, after nearly 700,000 Wisconsinites already had their benefits restored based on an active federal court’s directive—that the Trump administration at this point had not yet even asked to be stayed—the U.S. Treasury denied the transaction to authorize payment of full benefits in Wisconsin. Because the U.S. Treasury did not approve the increase as it normally would, Wisconsin is now at risk of having insufficient SNAP funds to reimburse local food stores and retailers for FoodShare members.

“At this time, Wisconsin has less than two days of cash remaining on the LOC based on current SNAP recipient spending. Wisconsin had a balance of about $19.5 million as of 10:00 p.m. on November 7. The daily spend from 12:01 a.m. through 10:00 p.m. on November 7 was approximately $9.9 million. Without immediate action, Wisconsin DHS will likely exceed its [Line of Credit] on Monday, November 10,” the filing states. Although the federal government rejected the state’s initial request for credit, the USDA has been consistent that it will make funds available for at least the partial payment, and ultimately the USDA is legally liable for the full amount that was uploaded to the cards this week. Based on what the state knows today, Wisconsin does not expect any immediate impacts for FoodShare members while the state continues to work to secure funds owed from the federal government.

“A stay of the district court’s temporary restraining orders would introduce even more chaos to an already chaotic series of events caused by the federal defendants. The States have received no communications from USDA regarding resolution of full benefits that have now been disbursed or are in the process of disbursement by the States’ vendors,” the filing concludes. “A stay of the district court’s temporary restraining orders would risk catastrophic operational disruptions for the States, with a consequent cascade of harms for their residents.”

A copy of the new 1st Circuit filing is available here.

NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.