---
title: "2.25.26 Senate DHS Budget Hearing: part 1"
description: Senate DHS Budget Hearing examined childcare fraud prevention, budget growth, federal policy impacts on SNAP and Medicaid, workforce shortages, and long-term fiscal sustainability with insights from Secretary Arkoosh.
---

[DT's Budget Blog ](https://support.thedtfirm.com/dts-budget-blog)

# [2.25.26 Senate DHS Budget Hearing: part 1](https://support.thedtfirm.com/dts-budget-blog/2.25.26-senate-dhs-budget-hearing-part-1)

 Written by [The DT Firm](https://support.thedtfirm.com/dts-budget-blog/author/the-dt-firm) | Mar 2, 2026 1:43:45 PM

**Pennsylvania Department of Human Services Budget Hearing Overview**

**Total DHS Budget:** $67.2 billion (All Funds)  
**State Funds:** $21.9 billion

The Senate convened to examine the Department of Human Services’ proposed budget and policy direction, with testimony led by DHS Secretary Valerie Arkoosh and senior leadership. The hearing covered program integrity, federal funding impacts, enrollment changes, Medicaid reforms, workforce shortages, and long-term fiscal sustainability.

Below is a comprehensive issue-by-issue summary of the discussion, including legislative questions and agency responses.

**1. Childcare Oversight and Fraud Prevention**

**Legislative Concern**

The Chairman opened with questions about national headlines regarding childcare fraud, specifically referencing issues in Minnesota. He asked how Pennsylvania’s oversight differs and what protections are in place to prevent fraud.

**DHS Response**

Secretary Arkoosh emphasized several key differences between Pennsylvania and Minnesota:

**Key Policy Clarification**

Federal rules allow removal from the ChildCare Works program if a child accumulates **40 days of non-attendance**, as prescribed by federal guidance

** **

**Takeaway:** DHS defended Pennsylvania’s childcare system as tightly regulated, data-driven, and structurally resistant to the types of fraud seen in other states.

**2. Budget Growth and Cost Drivers**

**Legislative Concern**

The Chairman questioned the department’s projected growth rate (approximately 1% annually in planning years), noting that historically the DHS state fund budget has increased by roughly $900 million per year over 12 years. He raised concerns that projecting only $200 million annually in growth may underestimate future spending by as much as $7 billion over planning years.

**DHS Response**

Key budget drivers discussed:

**DHS Explanation for Conservative Projections**

DHS argued that:

**Legislative Concern:** Lawmakers expressed unease that underestimating growth could lead to large future budget gaps.

**3. Federal SNAP and Medicaid Policy Changes**

A substantial portion of the hearing focused on federal policy changes and their impact on Pennsylvania.

**SNAP Work Requirement Changes**

Secretary Arkoosh reported:

DHS emphasized that many individuals losing SNAP benefits may still be eligible but fail to meet new reporting requirements.

**4. Medicaid Expansion and Continuous Eligibility Requirements**

**Upcoming Changes (Effective January 2027)**

The Medicaid expansion population currently includes approximately **767,000 individuals**

Under new federal rules, this population must:

**DHS Modernization Efforts**

To prepare, DHS is implementing:

DHS noted that other states that implemented work requirements saw benefit losses primarily due to **reporting barriers, not eligibility failures**.

**Broader Coverage Impacts**

Secretary Arkoosh testified that:

**Takeaway:** DHS anticipates increased uninsured and food insecurity rates, even as administrative burdens increase.

**5. Section 1115 Waiver**

The Chairman confirmed that DHS will not implement any 1115 waiver components without legislative approval.

Secretary Arkoosh affirmed that commitment, noting the waiver is included in the Governor’s budget proposal for legislative consideration

**6. Workforce Development & GrowPA**

Discussion shifted to workforce shortages and the GrowPA program.

**Legislative Highlights:**

**DHS Workforce Priorities:**

DHS acknowledged significant workforce shortages, particularly in behavioral health and rural healthcare systems.

**7. Department Performance Updates (Past Year)**

At Senator Haywood’s request, Secretary Arkoosh provided major updates:

**Overall Themes from the Hearing**

**1. Federal Uncertainty is the Dominant Budget Risk**

Nearly every fiscal discussion referenced federal cost shifts, eligibility changes, or funding volatility.

**2. Work Requirements and Administrative Burden Are Major Concerns**

DHS emphasized that reporting complexity—not lack of eligibility—often drives benefit loss.

**3. Long-Term Budget Growth Remains a Legislative Flashpoint**

Lawmakers expressed skepticism about projecting 1% growth when historical increases have been far higher.

**4. Workforce Capacity is a Structural Challenge**

From nursing to social work to rural providers, workforce shortages remain central to DHS operations.

[View full post](https://support.thedtfirm.com/dts-budget-blog/2.25.26-senate-dhs-budget-hearing-part-1)

```json
{
  "@context" : "http://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "The DT Firm"
  },
  "dateModified" : "2026-03-02T13:43:55.359Z",
  "datePublished" : "2026-03-02T13:43:45Z",
  "headline" : "2.25.26 Senate DHS Budget Hearing: part 1",
  "image" : {
    "@type" : "ImageObject",
    "height" : 225,
    "url" : "https://48572702.fs1.hubspotusercontent-na1.net/hubfs/48572702/DHS%20Logo.png",
    "width" : 225
  },
  "mainEntityOfPage" : "https://support.thedtfirm.com/dts-budget-blog/2.25.26-senate-dhs-budget-hearing-part-1",
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "height" : 60,
      "url" : "/hs/hsstatic/content_shared_assets/static-1.4092/img/default-amp-logo.png",
      "width" : 60
    },
    "name" : "DT's Budget Blog"
  }
}
```