The Legislative Budget Board (LBB) estimates that SB 379 will have a negative fiscal impact of $764,750 on the Texas General Revenue Fund during the 2026 fiscal year. Additionally, the federal government is expected to cover $778,470 in costs, leading to a total expenditure of $1,543,220 in All Funds for that year. These costs are one-time expenses associated with implementing the bill’s provisions.

The primary fiscal burden stems from the need to notify SNAP recipients and retailers about the new restrictions on food purchases. The Texas Health and Human Services Commission (HHSC) will need to distribute communications, update EBT (Electronic Benefits Transfer) systems, and conduct outreach efforts to ensure compliance. The bill also requires Texas to seek federal waivers, as SNAP regulations are primarily governed by federal law. These waivers could introduce additional administrative expenses, though they are not quantified in the fiscal note.

There are no anticipated costs beyond the 2026 fiscal year, meaning the state will not require ongoing funding to maintain the restrictions. Additionally, no significant fiscal impact on local governments is expected. However, the bill does not project potential economic effects on businesses that sell restricted products, which could see a decline in revenue from SNAP recipients.

SB 379 is a responsible and necessary step to improve the nutritional quality of food purchased through the Supplemental Nutrition Assistance Program (SNAP). By prohibiting the use of SNAP benefits for energy drinks, sweetened beverages, carbonated drinks, candy, chips, and cookies, the bill ensures that taxpayer-funded assistance is used for more nutritious food options. Given the state's obesity epidemic and rising healthcare costs, this bill represents a proactive approach to public health and fiscal responsibility.

From a cost-saving perspective, this legislation has the potential to reduce long-term taxpayer burdens. SNAP recipients who adopt healthier eating habits are less likely to develop diet-related illnesses such as diabetes, hypertension, and heart disease, which often lead to costly medical interventions funded by taxpayer-supported programs such as Medicaid. Preventative health measures—like ensuring SNAP dollars support healthier food choices—could lead to fewer emergency room visits and chronic disease treatments, ultimately reducing state healthcare expenditures.

Although the bill includes a one-time implementation cost of $1,543,220 in 2026, there are no anticipated long-term costs. In fact, the potential long-term savings in healthcare spending could far outweigh this initial expenditure. Studies have shown that reducing access to high-calorie, low-nutrient foods leads to improved health outcomes and lower public health costs over time.

By ensuring that taxpayer dollars support nutrition rather than subsidizing unhealthy eating habits, SB 379 is a fiscally responsible and health-conscious measure. Given its alignment with public health objectives and its potential long-term cost savings, Texas Policy Research strongly recommends that lawmakers vote YES on SB 379.

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