SB 13-SUMMER EBT BENEFITS FOR CHILDREN  3:32:46 PM CHAIR TOBIN announced the consideration of SENATE BILL NO. 13 "An Act relating to the summer electronic benefits transfer program for children." 3:33:03 PM SENATOR FORREST DUNBAR, District J, Alaska State Legislature, Juneau, Alaska, sponsor of SB 13 paraphrased the following statement: [Original punctuation provided.] SPONSOR STATEMENT SB 13: SUMMER EBT BENEFITS FOR CHILDREN Version N February 5, 2025 "An Act relating to the summer electronic benefits transfer program for children." When the school year comes to an end each summer, children from low-income households lose access to the consistent and reliable school meals that they rely on. The Summer Electronic Benefits Transfer (Summer EBT) for children program is a federal program that was designed in order address summer hunger throughout the country by providing $40 per summer month per child in low-income families to be used for food assistance. Beyond simply ensuring that Alaskan children have access to food, an analysis by the USDA looking at SNAP benefits shows that every dollar that is spent during an economic downturn on SNAP actually generates between $1.50 and $1.80 in local economic activity. For our state, that would be an expected economic impact between $10,440,000 and $12,528,000 from Summer EBT benefits for the summer of 2025. This program would go especially far in serving urban Alaskans. Last year, the State of Alaska declined to participate in the federal Summer EBT program, leaving the estimated 58,000 children who would be eligible to receive these benefits without this option. USDA evaluations have shown that Summer EBT decreased the number of kids with very low food security by one- third; increased whole grain, dairy, fruit, and vegetable consumption; and decreased sugar-sweetened beverage consumption. To help assure that at-risk children have food on the table, the Department of Education should take the opportunity to apply for the federal funds that are available for the Summer EBT program. Through SB 13, we can provide hunger relief for children from food insecure families across the state and ensure the health and well-being of the young people of Alaska. CHAIR DUNBAR emphasized that SB 13 proposes using federal funds, when they are available, to feed students. It does not propose using state funds. 3:35:54 PM CHAIR TOBIN chose to skip the short sectional analysis of SB 13. 3:36:32 PM GAVIN NORTHEY, Manager, Child Nutrition Programs, Department of Education and Early Development (DEED), Juneau, Alaska, paraphrased the analysis of SB 13 fiscal note OMB component 1955, dated March 4, 2025: [Original punctuation provided.] The Summer Electronic Benefits Transfer (EBT) program, established under the federal Consolidated Appropriations Act, 2023, provides crucial benefits to Alaskan families and communities. While its implementation would bring significant financial assistance, it imposes a substantial administrative burden on the Department. For the summer of 2024, the program could have delivered between $156 and $240 per eligible child, benefiting an estimated 53,000 to 58,000 children in Alaska. These figures, derived from data from DEED and the Food Research Action Center, translate to a potential total benefit of up to $10.5 million statewide. The benefit structure mirrors the Supplemental Nutrition Assistance Program (SNAP), ensuring higher benefits for children in remote rural communities where grocery prices are significantly higher. 3:37:42 PM MR. NORTHEY continued paraphrasing the sectional analysis of SB 13: [Original punctuation provided.] The total benefit amount of $10,472.0 will be fully funded by the USDA. Staffing Needs $413.2 The program requires four full-time positions to ensure compliance and effective administration: Program Coordinator I: Responsible for overseeing the program, including training, contract management, verification, and reviews. Education Associate II: Focused on eligibility determination and maintenance of contracts, including EBT card management. Education Associate I (2 positions): Primarily responsible for eligibility processing and potential support for card-related issues. One-Time Costs $491.0 Regulations Development: $6.0 Office Supplies and Equipment for New Staff: $20.0 Contracted EBT and Eligibility Platform Development: $465.0 Ongoing Administrative Costs $1.8M annually Federal assistance will provide a 50 percent match for ongoing administrative expenses, leaving $902.7 to be funded by nonfederal sources. Key costs include: Travel: $15.0 for federal compliance training for staff and training for grantees. Department Administrative Support: $70.4 Contracts and Maintenance: $1,096.3 for EBT card management and eligibility platform maintenance, as well as postage. Participant Communication Commodities: $210.5 The Summer EBT program represents a significant opportunity to address food insecurity for children across Alaska, particularly in remote areas. However, implementing and maintaining the program comes with considerable administrative and financial challenges. To sustain the program, additional non-federal funding of $902.7 annually will be required to match federal assistance and ensure compliance with program requirements MR. NORTHEY stated that cities in Alaska are defined into three categories: Urban, Rural I, and Rural II. The category Rule II receives the highest benefit level. He said in the first year the state could expect $296,000. The coordinator position is a Range 13. The Education Associate II position is a Range 15, with a fiscal impact of $106,200. He said the two Education Associate I positions are Range 13, with a total fiscal impact of $190,500. He provided a breakdown on the costs for items such as travel, training, and contracting. 3:41:31 PM MR. NORTHEY said the total fiscal impact for 2026 is $12,768,400; the federal government would provide $11,620,200 and $1,148,200 from the general fund match. From FY27 onward the expected impact is $12,277,400; the federal government would provide $11,374,700 and $902,700. 3:42:24 PM SENATOR CRONK asked what will happen to the positions and the UGF match of nearly $1 million if no federal funds are available. 3:42:48 PM SENATOR DUNBAR stated that the fiscal note was received late the previous day and had not yet been discussed with the department. He expressed concern that the administrative costs appeared high and expressed his intent to work with the department to reduce the amount. He noted internal debate over whether the Department of Health (DOH), Division of Children and Family Services (DCFS), or Department of Education and Early Development (DEED) should administer the funds. He recognized the state's existing Electronic Benefit Transfer (EBT) infrastructure and expressed hope that the summer program could piggyback on existing infrastructure to reduce costs. He added that SB 13 might require an amendment since it currently assigns responsibility to DCFS instead of DEED. SENATOR DUNBAR acknowledged the possibility of layoffs if the federal government discontinues the program, noting similar funding uncertainties affecting Medicaid, education, and rural internet. He emphasized that these federal funds have been available to states for years and expressed hope they will continue, citing the program's success in other states. He mentioned that invited testifiers could speak about the program's impact. He reiterated his concerns about the fiscal note. 3:44:38 PM SENATOR KIEHL stated that the narrative in the fiscal note did not align with the figures presented. He suggested asking the department to provide a breakdown clarifying what expenses fall into each category and which are eligible for matching funds. He expressed interest in the bill, noting the appeal of providing over $10 million in food for needy children. However, he questioned the department's cost estimate and emphasized the need for further analysis. CHAIR TOBIN expressed significant concerns about the fiscal note and requested a more detailed and thorough explanation. She questioned why the contributions of tribal partners, who also support Electronic Benefit Transfer (EBT) programs in the state, were not reflected in the fiscal note. She said the bill appears to focus on adopting regulation and is curious why an entire division is propped up instead of trying to work within the existing structure. 3:46:30 PM SENATOR BJORKMAN said he is unsure why additional investigation to support the program is needed. He asked how many students would benefit from the program who are not already in families receiving Supplemental Nutrition Assistance Program (SNAP) benefits. He questioned the need for additional employees to manage what appears to be a simple increase in benefits for students who already qualify for free and reduced lunch. He asked for the difference in the number of households receiving free and reduced lunch compared to those receiving SNAP benefits. 3:47:52 PM SENATOR DUNBAR shared from personal experience that he received reduced-price lunches as a child while his parents did not receive Supplemental Nutrition Assistance Program (SNAP) benefits. He suggested some families may not qualify for both or another possibility was the program could function as an increase to an existing benefit during a different month. He deferred the question. 3:48:19 PM SENATOR TOBIN stated that she also received free and reduced lunch, but her family did not participate in SNAP benefits. 3:48:29 PM CHAIR TOBIN announced invited testimony on SB 13. 3:48:34 PM SENATOR DUNBAR thanked the members of the committee for their comments regarding the fiscal note. 3:49:03 PM RACHEL LORD, Advocacy and Policy Director, Alaska Food Policy Council, Homer, Alaska, testified by invitation on SB 13. She stated that the Alaska Food Policy Council is a nonpartisan statewide organization focused on strengthening Alaska's food systems through cross-sector collaboration. She emphasized that Summer Electronic Benefit Transfer (EBT) is an effective tool in reducing childhood food insecurity, which affects one in six Alaskan children. She supported the program for its dual impact: relieving pressure on overburdened food banks and injecting funds into local food systems, including grocery stores, farmers markets, and agricultural businesses. MS. LORD noted that her own children qualified for free and reduced lunch but not Supplemental Nutrition Assistance Program (SNAP) benefits, highlighting a gap the program could address. She emphasized the need for serious consideration of program administration, including interdepartmental coordination between the Department of Health, Division of Public Assistance, and the Department of Education and Early Development (DEED) Child Nutrition Program. She stated that improved staffing and coordination should be a legislative and administrative priority, and pointed to the governor's proposed budget, which includes additional eligibility technicians. 3:51:54 PM MS. LORD explained that families already receiving SNAP benefits could have summer EBT funds added to existing cards, and flexibility exists with the U.S. Department of Agriculture's Food and Nutrition Service (USDA FNS) regarding program implementation. She stressed that understanding the difference between students eligible for free and reduced lunch and those not enrolled in SNAP is crucial for planning. With proper staffing and coordination, she believes Alaska can successfully manage the program and capture significant economic and social benefits that outweigh the state's 50 percent administrative cost share. MS. LORD responded to Senator Cronk's concern about federal uncertainty, stating that the application deadline to enroll in Summer EBT is typically January 1 or February 1, meaning that even after the bill passes, implementation would be delayed until the following year. She added that the bill appears to require state participation only when funding is available, allowing for ample preparation time. 3:54:19 PM KELSEY BOON, Senior Child Policy Analyst, Food Research Action Center, Washington, District of Columbia, testified by invitation on SB 13. She stated that the Food Research and Action Center is a national nonprofit focused on ending hunger and undernutrition through improved public policy. She highlighted the organization's long-term work on federal child nutrition programs and its recent collaboration with states and anti-hunger advocates to implement the Summer Electronic Benefit Transfer (EBT) program. She stressed that childhood hunger leads to negative health outcomes, making programs like Summer EBT essential. MS. BOON reported that in 2024, 37 states, Washington, D.C., two tribal organizations, and all five U.S. territories participated in Summer EBT, providing $2.5 billion in benefits to over 21 million children. She explained that traditional summer meal programs face access challenges due to transportation and site limitations, which Summer EBT helps address by providing grocery benefits directly to families. MS. BOON stated that approximately 58,000 Alaskan children could qualify for Summer EBT, which would bring in $7 million in benefits and create an estimated $12.5 million in economic impact. She clarified that SNAP eligibility requires family income below 130 percent of the federal poverty level, while free and reduced-price meal eligibility extends up to 185 percentmeaning many children qualify for Summer EBT without receiving SNAP. She urged support for SB 13 to close the summer nutrition gap and invest in the well-being of Alaska's children. 3:57:40 PM JEN GRIFFIS, Vice President, Policy and Advocacy, Alaska Childrens Trust, Homer, Alaska, testified by invitation on SB 13. She stated that as the statewide lead organization focused on preventing child abuse and neglect, Alaska Children's Trust (ACT) supports policies that help families access the resources they need to thrive. She said Alaska's participation in the federal Summer Electronic Benefit Transfer (EBT) program would strengthen families by improving children's health, education, and overall family economic well-being. MS. GRIFFIS cited Kids Count data from the Annie E. Casey Foundation indicating that nearly 20 percent of Alaskan children live in food-insecure homes. She noted that while many of these children receive free or reduced-price lunches during the school year, those supports often do not extend into summer. She said Summer EBT could provide nutrition assistance to approximately 58,000 children, helping them return to school nourished and ready to learn. MS. GRIFFIS emphasized that the program would support healthy child development by improving access to nutritious food and would also reduce financial stress on families. She concluded that SB 13 would positively impact the health, education, and economic stability of families throughout Alaska. 3:59:41 PM CHAIR TOBIN opened public testimony on SB 13. 4:00:08 PM ALAN BUDAHL, Executive Director, Lutheran Social Services of Alaska, Anchorage, Alaska, testified in support of SB 13. He said he operates one of the largest food pantries in the state. He expressed strong support for SB 13, which would establish the Summer Electronic Benefit Transfer (EBT) program to help families and school-age children access food when schools are closed. He noted that summer is the busiest time for their pantry due to increased food insecurity caused by the absence of school-provided meals. He emphasized that SB 13 offers a sustainable solution by providing direct support to families, reducing reliance on emergency food assistance, and helping children remain healthy and prepared for the next school year. 4:02:31 PM VANESSA THOMPSON, Board President, Helping Hands Food Bank, Tok, Alaska, testified in support of SB 13 on behalf of the board and clients of Helping Hands Food Bank. She stated that the food bank serves an average of 90 families each month, including 40 families with one or more school-aged children, and highlighted the gap left when school meals are unavailable. She noted that while younger children may qualify for the Women, Infants, and Children (WIC) program, there are no alternatives that replace school meal nutrition for older children. She emphasized that implementing the Summer Electronic Benefit Transfer (EBT) program at the Tok School would help keep children nourished and engaged during the summer months. 4:03:59 PM CHAIR TOBIN closed public testimony on SB 13. 4:04:11 PM SENATOR DUNBAR thanked the committee for hearing SB 13 and acknowledged concerns raised about the fiscal note. He stated his intention to work with the department and reach out to committee members, particularly Senator Kiel of the Finance Committee, where the bill is headed next. He encouraged collaboration on any needed changes and emphasized that testimony had shown the bill would help children across Alaska. He noted that while $40 per student is not a complete solution, it would make a meaningful difference in addressing child hunger. 4:05:12 PM CHAIR TOBIN held SB 13 in committee.