A message from Director Liesl Wendt: 2026 Legislative Session wrap-up

The 2026 session of the Oregon Legislative Assembly has concluded, and I want to take a moment to share the outcomes with you. In this 35-day short session, legislators worked through a packed agenda that included adjusting the state's 2025-27 budget and addressing a host of pressing policy priorities. For the Oregon Department of Human Services (ODHS), there were two major issues at stake: Securing funding to implement sweeping new requirements under U.S. House Resolution 1 (HR 1) and navigating a statewide budget shortfall that requires reductions across all Oregon agencies.

I'm pleased to report that we are emerging from the session in a relatively strong position, equipped with the resources we need to comply with HR 1 and avoiding the need for layoffs despite modest reductions to our budget.

House Bill 5204: Funding for HR 1 implementation and more

HR 1 makes far-reaching changes to the Supplemental Nutrition Assistance Program (SNAP) and Medicaid, mandating more frequent eligibility checks, creating new eligibility restrictions, and significantly increasing the state's cost-sharing obligations. Our top priority heading into the 2026 session was to secure the funding and positions we need to absorb these changes and minimize harm to the people we serve. Lawmakers understood the urgency and, as part of their statewide budget bill (House Bill 5204), approved $111 million General Fund and 392 positions to begin HR 1 implementation. The dollars will cover:

• More eligibility staff along with technology upgrades to handle increased SNAP screening and verification requirements while improving accuracy.

• Staffing and other resources to handle verifications and exemptions related to new Medicaid work requirements.

• Higher SNAP administrative costs that HR 1 requires states to take on.

• Updating SNAP EBT cards using smart chip technology - a much-needed security improvement that will help protect Oregonians' essential food benefits. While improving EBT card security is not required as part of HR 1 implementation, HR 1 raises the urgency for completing these upgrades now-before the state's required administrative cost share jumps in October 2026.

In addition to HR 1 implementation resources, House Bill 5204 includes $2 million General Fund for grants to refugee resettlement agencies and culturally specific community organizations. The grants will allow these organizations to provide financial assistance, case management, outreach, and navigation services to lawfully present immigrants and refugees affected by HR 1 eligibility changes. While the grant funding cannot fully offset the loss of SNAP and Medicaid benefits, it does provide critical transitional support as families work to gain lawful permanent resident status and re-establish eligibility.

Budget reduction: What it means for staff

House Bill 5204 also identifies reductions for state agencies as part of Oregon's broader effort to address a statewide budget shortfall. At ODHS and across other agencies, these reductions are drawn primarily from job vacancy savings and a hiring pause - tools that allow lawmakers to balance the budget without cutting services or eliminating positions. ODHS' reductions amount to $34.5 million General Fund. The good news is that these reductions do not include any layoffs, and no one at ODHS will lose their job as a result of the session's budget changes.

A word of thanks and a look ahead

Securing the resources needed to implement HR 1 required sustained, coordinated effort, and we are deeply grateful to everyone who made that success possible. Governor Kotek's partnership and leadership were instrumental throughout the process, as her office helped make the case for Oregon families at every stage of the session. We also extend our sincere appreciation to legislators - especially the members of the Joint Ways and Means Committee - who took the time to understand the stakes for Oregonians and entrusted ODHS with the resources needed to meet this moment. Finally, we are thankful for the dedication of ODHS staff and for the collaboration of our community partners, whose engagement ensured lawmakers had the information they needed to address the real impacts on the people we serve.

I'll be candid: The work ahead is significant. HR 1 implementation alone will require us to stand up new systems, hire and onboard hundreds of staff, and maintain quality and accuracy for hundreds of thousands of people in Oregon - all while managing the real constraints of a tighter budget landscape. We are fortunate that our legislative partners have entrusted us with the resources we need to rise to the challenge, and I have every confidence that our staff is up to the task.

With gratitude,

Liesl M. Wendt
ODHS Director