ODHS Director's Messages

2026 Oregon legislative session wraps up

Message from Liesl Wendt, ODHS Director
March 12, 2026

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 our agency, there were two major issues at stake: Securing funding to implement sweeping new requirements under the federal 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 (see pg. 41), 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.*
  

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 re-establish their eligibility.

Budget reduction

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; our workforce remains intact and ready to keep serving Oregon’s diverse communities.

A word of thanks and a look ahead

Securing resources for HR 1 implementation required sustained, coordinated effort — and community partners were essential to our success. Your engagement helped ensure that legislators understood what was at stake for Oregonians, and we are deeply grateful for your advocacy and collaboration throughout this process.

I want to be candid about what lies ahead: the work is significant. HR 1 implementation will require us to stand up new systems, bring on hundreds of new staff, and maintain quality and accuracy for hundreds of thousands of people in Oregon — all within a tighter budget landscape. While the legislature has entrusted us with resources to meet the moment, we know that ODHS cannot do this alone. Community partnerships have long been central to how we deliver services — but in the period ahead, our partnerships will be more important than ever in serving and supporting Oregonians.

I encourage you to stay in touch with us as we integrate the 2026 budget changes and begin building our budget request for the next biennium. Visit our Community Engagement page to learn about opportunities or to contact our Community Engagement team directly.

Thank you for your partnership and your commitment to the Oregonians we collectively serve.

*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.

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