Working Families Protection Act
The Working Families Protection Act is designed to protect working families, small businesses, rural communities, veterans, and first responders from the negative impacts of federal Medicaid and SNAP reductions. The Act establishes state-funded healthcare and food security programs to ensure vulnerable populations maintain essential services. Funding mechanisms include surcharges on healthcare insurers, tax incentives for small businesses, and targeted state investments in local food production and healthcare support.
Key Provisions
State Emergency Medicaid Fund. Establishes a state-funded Medicaid program for individuals who lose coverage due to federal cuts. Covers pregnant women, children, veterans, first responders, and rural residents earning below eligibility thresholds. Funded by: A 0.5% surcharge on health insurers, state budget allocations, and employer contributions.
Working Families Grocery Tax Relief Program. Provides a $1,200 refundable tax credit or monthly direct payments to households losing SNAP benefits. Automatic enrollment for families previously receiving SNAP.
First Responder & Veteran Food Security Fund. Provides state-funded food assistance for veterans and first responders affected by SNAP cuts. Administered in coordination with local food banks and service organizations.
Small Business Healthcare Relief Act. Grants 100% tax credits for small businesses (under 50 employees) covering at least 30% of employee health premiums. Creates a state-run insurance pool to help small businesses provide affordable healthcare.
Farmers & Families Food Purchase Program. Allocates $25 million annually to purchase local farm products for distribution to food banks, schools, and senior meal programs. Prioritizes small farms, veterans, and historically disadvantaged farmers.
Medicaid Work Incentive Program. Allows individuals losing Medicaid to buy in at subsidized rates based on income. Employer incentives for covering part of Medicaid buy-in premiums.
Protecting Pregnant Women & Children Act. Expands state Medicaid coverage for pregnant women (up to 300% of FPL) and children. Provides $5,000 maternity care grants to low-income mothers denied abortion access due to state laws.
Crime Prevention & Food Security Program. Expands food assistance for families with incarcerated or recently released individuals to prevent hunger-driven crimes.
Church & Charity Food Assistance Matching Program. Dollar-for-dollar state matching grants for church-run food pantries and charitable food programs.
Transparency & Accountability. Requires annual reporting on program reach, economic impacts, and potential expansion needs. Act will be reviewed after five years to assess effectiveness and continuation.
Model Language
Section 1. Short Title. This Act may be cited as the “Working Families Protection Act.”
Section 2. State Emergency Medicaid Fund.
(a) Establishment. A State Emergency Medicaid Fund (“Fund”) is established to provide healthcare coverage for individuals who lose Medicaid eligibility due to federal policy changes. The Fund shall be administered by the Department of Public Health, in consultation with the State Medicaid Agency.
(b) Eligibility. The following individuals shall be eligible for coverage under the Fund:
(1) Pregnant women and children under 18 whose household income does not exceed 300% of the federal poverty level (FPL);
(2) Veterans and first responders, including law enforcement, firefighters, and emergency medical personnel;
(3) Individuals residing in rural counties with fewer than 50,000 residents who have lost Medicaid eligibility;
(4) Small business employees ineligible for employer-sponsored healthcare but earning below 250% of FPL.
(c) Funding Mechanism. The Fund shall be financed through:
(1) A 0.5% surcharge on health insurance companies operating in the state that previously benefited from Medicaid reimbursements;
(2) An annual state budget allocation, subject to review by the General Assembly;
(3) Voluntary employer contributions, which may qualify for state tax credits under Section 5.
Section 3. Working Families Grocery Tax Relief Program.
(a) Tax Credit for Working Families. A refundable tax credit of up to $1,200 annually per household shall be provided to individuals who lose eligibility for federal SNAP benefits due to income limitations imposed by federal policy changes.
(b) Direct Payment Option. Eligible individuals may elect to receive monthly direct cash assistance payments in lieu of an annual tax credit.
(c) Automatic Enrollment. Households that previously qualified for SNAP benefits shall be automatically enrolled in the program unless they opt out.
(d) Funding Source. The program shall be financed through general state revenues and may include a public-private partnership model encouraging food retailers to provide matching discounts.
Section 4. First Responder & Veteran Food Security Fund.
(a) Creation of the Fund. A First Responder & Veteran Food Security Fund is established to supplement food assistance for veterans and active-duty first responders, including police officers, firefighters, and emergency medical personnel.
(b) Supplemental Food Assistance. The Fund shall provide state-funded food assistance benefits equivalent to federal SNAP benefits for eligible first responders and veterans.
(c) Program Administration. The Department of Veterans Affairs and the State Emergency Management Agency shall oversee disbursements, in collaboration with local food banks and service organizations.
Section 5. Small Business Healthcare Relief Act.
(a) Employer Tax Credits. Employers with fewer than 50 employees may claim a 100% tax credit for contributions toward employee healthcare coverage if:
(1) The employee earns less than 250% of FPL; and
(2) The employer contributes at least 30% of the employee’s premium costs.
(b) State Insurance Pool Participation. The Department of Labor shall establish a low-cost insurance pool for small businesses, with the state subsidizing participation for eligible employees.
Section 6. Farmers & Families Food Purchase Program.
(a) Program Creation. A state-run Farmers & Families Food Purchase Program is established to:
(1) Purchase locally grown produce, dairy, and meat from small and mid-sized farms;
(2) Distribute purchased food to food banks, K-12 schools, and senior meal programs.
(b) Funding Allocation. The Department of Agriculture shall allocate up to $25 million annually for direct food purchases from state-based farmers.
(c) Priority Consideration. Priority shall be given to small farms with less than 500 acres and farms owned by veterans, women, or historically disadvantaged farmers.
Section 7. Medicaid Work Incentive Program.
(a) Establishment of Buy-In Program. The state shall establish a Medicaid buy-in program allowing individuals who lose Medicaid due to income increases to purchase state-sponsored coverage at subsidized rates.
(b) Sliding-Scale Premiums. Enrollees shall contribute to coverage costs based on tiered income brackets, not to exceed 8% of total household income.
(c) Employer Incentives. Employers covering at least 30% of Medicaid buy-in premiums shall be eligible for tax credits under Section 5.
Section 8. Protecting Pregnant Women & Children Act.
(a) Expansion of Maternal & Child Healthcare Coverage. The state Medicaid program shall extend coverage to:
(1) Pregnant women earning up to 300% of FPL;
(2) Children in households that previously qualified for Medicaid or CHIP.
(b) State-Funded Maternity Care Grants. The state shall provide maternity care grants of up to $5,000 to low-income mothers denied abortion access due to state restrictions.
Section 9. Crime Prevention & Food Security Program.
(a) Food Assistance for At-Risk Families. The Department of Corrections shall partner with the Department of Human Services to provide food assistance to families with:
(1) A parent currently incarcerated; or
(2) An individual recently released from state correctional facilities.
(b) Rationale. This section aims to reduce recidivism and prevent hunger-driven crimes by ensuring stable food access for at-risk families.
Section 10. Church & Charity Food Assistance Matching Program.
(a) State Matching Grants. The state shall provide dollar-for-dollar matching grants to church-run food pantries and faith-based charitable organizations offering food assistance.
(b) Religious Organization Participation. Organizations receiving state funds must:
(1) Serve individuals regardless of religious affiliation; and
(2) Provide transparent financial reporting of all state-assisted expenditures.
Section 11. Transparency & Accountability.
(a) Annual Reporting. The Department of Human Services shall submit an annual public report detailing:
(1) The number of residents receiving assistance under each section;
(2) The economic impact of reduced Medicaid and SNAP availability;
(3) Recommendations for additional state action if federal cuts deepen.
(b) Sunset Provision. The provisions of this Act shall remain in effect until a comprehensive review by the General Assembly, no later than five years after enactment.
Section 12. Effective Date. This Act shall take effect immediately upon passage, with full program implementation within six months.