Why States Need Flexibility, Not More Red Tape
Overview
The One Big Beautiful Bill Act (OBBA) marks a pivotal shift in how America delivers essential safety net programs. Under the new legislation, the administration of SNAP and Medicaid will now be left to states and counties, placing unprecedented responsibility on largely unprepared localities. With a 50% slash in federal SNAP funding, stricter integrity standards,and semi-annual rather than annual redeterminations, the stakes couldn't be higher. As CAMI’s Chairman Stan Soloway outlines in a recent GovExec article, this isn't just a policy pivot; it's a high-wire act for states already grappling with outdated systems, workforce gaps, and fiscal pressures. At CAMI, we wholeheartedly agree: success hinges on federal agencies and Congress providing relief from the arcane, parochial rules that stifle local flexibility and innovation.
This isn't about undermining federal oversight—far from it. It's about empowering states to deliver faster, fairer benefits using modern tools and talent. Antiquated federal mandates, from rigid data silos to inflexible procurement processes, have long constrained progress, leaving billions in unclaimed aid on the table and fueling improper payments that erode trust. The good news? By entertaining outside expertise, private-sector partnerships, and technologies like AI, we can transform these challenges into opportunities for efficiency and equity. States aren't asking for a blank check; they're seeking the guardrails to innovate responsibly, ensuring every eligible family gets the support they deserve without waste or delay.
The Straitjacket of Federal Constraints
Public servants at the state and county levels are the unsung heroes of our safety net, processing applications, verifying eligibility, and connecting families to nutrition and health care amid rising caseloads. Yet, as Stan Stoloway highlights, they're hamstrung by federal rules that prioritize uniformity over utility—arcane requirements born in a pre-digital era that now breed inefficiency and error. Consider the stark realities: one in five eligible Americans skips SNAP due to clunky tech, forfeiting $30 billion annually, while $63 billion in improper Medicaid and Medicare payments in 2024 stem from fragmented data and conflicting mandates. Workforce vacancies hover at 15-30%, exacerbated by budget crunches and burnout from paperwork overload.
These aren't isolated failures; they're symptoms of a system where federal parochialism—siloed databases, one-size-fits-all reporting, and prohibitions on agile hiring—leaves little room for local ingenuity. States like those piloting streamlined eligibility portals have cut processing times by weeks, boosting enrollment and satisfaction. But too often, federal vetoes on such experiments, citing "compliance risks," keep promising reforms in limbo. The OBBA's demands amplify this tension: without relief, counties could face a cascade of penalties, coverage gaps, and public backlash. Soloway's call for flexibility isn't radical, it's essential. By easing these constraints, Congress and agencies can unlock a wave of state-led progress, turning a potential crisis into a model for resilient governance.
Blending Workforces and Tech: A Recipe for Streamlined Success
Relief alone won't suffice; it must come with actionable enablers. To do this, we must begin to embrace the benefits of integrating outside employees, cutting-edge technology, private-sector expertise to fortify state workforces and ensure operational stability and success. Whether through targeted consulting gigs or rotational embeds from tech firms, States shouldn't be barred from bringing in external help for surge capacity. The private sector brings a fresh perspective to entrenched problems like automating fraud detection or optimizing call centers without displacing career staff. Imagine counties borrowing data scientists for six-month stints to build AI-driven eligibility tools. Such tools could flag duplicates across SNAP and Medicaid where 85% of child enrollees overlap, and sve millions in redundant checks. Federal waivers for such "blended workforce" pilots, tied to clear metrics like timeliness and accuracy, could demonstrate quick wins, paving the way for broader adoption.
If deployed thoughtfully and with human oversight to guard against bias, AI can slash improper payments by half, as seen in early federal pilots. Soloway also notes the key role that a national data clearinghouses could plan. Namely, these federally led but state-executed hubs would integrate WIC, TANF, and beyond, enforcing OBBA's anti-duplication mandates without micromanaging local workflows. This blended approach rewards results over rigidity. Incentives like bonus funding for high performers—echoing Reps. Buddy Carter and Don Davis's anti-delay bill—would spur competition and collaboration, ensuring innovations scale nationally.
Forging a Bipartisan Bridge to Better Outcomes
Regardless of one’s political affiliation, the points made by Stan effectively transcend party lines. Fiscal stewardship, effective administration, and the prevention of fraud are principles most can get behind, Democrat or Republican.
While Congress can legislate the guardrails, mandating annual reporting on key outcomes without drowning states in audits, federal agencies ultimately hold the keys through guidance, waivers, and investments in shared infrastructure.
By granting relief from outdated rules and greenlighting external expertise and AI, we honor the frontline grit of state and county teams while equipping them for tomorrow. Early adopters, from integrated data platforms to AI-augmented verification, are already proving the payoff: reduced waste, higher enrollment, and restored public faith. The tools are ready. Now it's time to turn the key.