DHSS outlines FY27 capital, technology needs to implement HR1 and modernize facilities

Kristen Link Young, Secretary of the Department of Health and Social Services, briefed the committee on DHSS's FY27 capital request and recent project completions. She noted the new public health laboratory in Smyrna (a BSL-3 facility) and ongoing projects such as the Delaware Hospital for the Chronically Ill (expected substantial completion in 2027 and resident moves in early 2028).

The department's FY27 governor's recommended package totaled about $31.8 million and included $4.75 million for basic maintenance and restoration, $5.75 million for minor capital improvements and $4 million for roof replacements. On the technology side, the GRB includes roughly $9.3 million for eight projects: most notably, work to implement federal HR1 changes to SNAP and Medicaid eligibility (including a $2.1 million connection to a federal SNAP accuracy clearinghouse and $800,000 for Medicaid eligibility changes) and $5 million to improve the ASSIST product (matched by federal funds).

Secretary Young said those investments are necessary to comply with HR1, to reduce the departmental change-request backlog and to modernize client-facing tools (including SmartCom notices and a migration of the ASSIST portal to more secure, modern infrastructure). She told the committee DHSS will shift one previously requested $900,000 behavioral-health payment modernization cost back into MCI because the vendor agreed to complete that deliverable within the existing contract.

Why it matters: HR1 changes increase states' administrative responsibilities for SNAP and Medicaid and reduce federal matching rates for some SNAP administrative costs. DHSS warned the committee that these tech investments are both compliance-related and intended to limit the number of Delawareans who might lose benefits because of system or process failures.

Secretary Young invited committee members to ask detailed questions about technology governance, customer-facing improvements such as direct document upload and how DHSS is building internal capacity to evaluate vendor AI proposals and other new tools.