Human services supplemental debated amid federal deferral fears; committee adds limited relief but rejects immediate repeal of nursing-home surcharge

Senator Hoffman presented the omnibus human services supplemental (Senate File 44-76) and said the committee must respond to a federal deferral of roughly $91 million that threatens continuity of care for vulnerable recipients. He emphasized the need to protect services for persons with disabilities and other high-need groups and described the deferral as a serious issue requiring both immediate and longer-term attention.

Members interrogated fiscal staff about the nature of the federal action (deferment vs. withhold) and whether the department had submitted required materials to CMS. Senator Hoffman and fiscal staff noted federal timing and technical questions remain and that some proposed state actions could be contingent on CMS approvals.

Senator Pratt offered A40 to repeal a recently enacted increase in the nursing-home resident surcharge (the so-called "granny tax") and urged the committee to act now to reduce costs for residents facing steep rate increases. Nonpartisan fiscal staff estimated undoing the surcharge through its October 2026 phase-out in HR1 would likely cost on the order of $10 million from enactment to the October expiration, and staff said additional fiscal detail would be required to book a number for the floor. Several senators said they preferred to resolve the mechanics and offsets before changing revenue sources in a finance bill; Senator Pratt requested a roll call and A40 failed 5-7. Supporters urged one-time or targeted relief, while opponents noted pending CMS approvals and other urgent human services needs.

After further debate the committee recommended SF 44-76 as amended and moved it to the floor with staff instructed to prepare technical and conforming changes. Sponsors said conference or floor work will continue to refine offsets and any future relief measures for nursing homes.

The committee recorded the roll call on A40 and discussed other fiscal trade-offs; the human-services package passed out of committee but several members asked for follow-up on CMS timing and precise fiscal offsets before floor action.