In the order, Stitt argued that federally established programs, like Medicaid and the Supplemental Nutrition Assistance Program (SNAP), aren't working. He said they've increased in cost, disincentivized work and "handcuffed" states like Oklahoma that "desire to administer the programs in more innovative ways."
Stitt's administration measures compassion by the number of people who have become self-reliant through work, he said, "rather than the number of individuals who are added to the welfare rolls and thus dependent on government assistance."
Stitt is requiring departments to conduct a review of the federal programs they administer, with the goals of identifying and addressing disincentives to work, cracking down on fraud and errors, and seeking waivers that "reduce bureaucratic overhead."
But advocates worry these efforts don't fully address the needs of people relying on food and medical assistance.
"I'm an anti-hunger organization," said Chris Bernard, president and CEO of anti-hunger advocacy group Hunger Free Oklahoma. "[In] my ideal world, absolutely nobody needs federal benefits because they all make enough money to pay for their own food and housing and everything else. That's not the reality we live in."
What's in the order?
The agencies targeted in the executive order include the Oklahoma Department of Human Services, Health Care Authority, State Department of Health and Employment Security Commission. It addresses SNAP, Medicaid, Temporary Assistance for Needy Families (TANF) and Women, Infants and Children (WIC).
The departments have three months to audit administrative error rates, fraud protocols and disincentives to work, like benefit cliffs — sudden decreases in public benefits that can occur with a small increase in earnings. They have also been directed to audit eligibility requirements to ensure they "remain accurate, evidence based and consistent with state statutes."
Those findings will be compiled into "The Oklahoma Welfare to Work Report" and submitted to the governor and legislative leaders.
Agencies are to work with existing programs to direct adults to jobs, training and education. The order also requires agencies to identify opportunities to work with nonprofits, the Office of Faith-Based and Community Initiatives and the Be a Neighbor Initiative to boost upward mobility and reduce the number of people relying on programs in the long term.
"The government isn't a jobs program, and it can't solve all societal issues," Stitt said in a press release. "Many of the needs Oklahomans face can be met by the local church, non-profits, and neighbors. I encourage the Oklahoma faith-based and non-profit community to join with the Office of Faith Based Initiatives to help meet the needs of Oklahomans."
State agencies will also use systems to verify identifications and match data with other agencies.
Agencies will also have about four months to identify and apply for waivers to allow for state-based administration with reduced federal management.
Stitt, for example, mentions a strategy he has long advocated for: converting federal spending programs into block grants. This is where federal funds are transferred to state or local governments to be used for a broadly defined function.
In the past, Stitt has called for FEMA funds to be offered as block grants, and in 2020, Oklahoma was the first state to submit a waiver seeking permission to enact block grants in Medicaid.
An initial implementation plan covering the actions agencies are taking in line with this order must be sent to the governor and lawmakers in about six months. Progress will be presented annually on or before Jan.1.
A spokesperson for the Health Care Authority, which administers Oklahoma Medicaid, said the agency is evaluating the order and its next steps. A spokesperson from the State Department of Health, which administers WIC, said traditional benefit cliff concerns are minimal.
Because the U.S. Department of Agriculture has minimal involvement in Oklahoma's operations, the agency doesn't expect to require federal waivers to make reasonable policy changes. It will review eligibility requirements to ensure compliance.
SNAP and TANF are administered through Oklahoma Human Services. A spokesperson said the agency appreciates the focus on these programs, and the executive order aligns with strategies already happening at the department. Officials will work closely with the governor and other agencies.
How policy, advocacy groups are responding
Assistance programs already have accountability measures in place on the federal level and collect data.
For instance, Oklahoma Medicaid's 2022 PERM error rate, which determines the accuracy of processing claims and determining eligibility, was 1.95%. The state's most recent SNAP error rate – which are under and over payment made to participants, not fraud – is 10.87%, according to the USDA.
Carly Putnam, policy director at the Oklahoma Policy Institute, a nonpartisan thinktank, said she doesn't think audits will identify new information.
"Governors frequently tell state agencies that they should be doing a new thing to combat fraud or a new thing to find efficiencies," Putnam said. "But the fundamental problem is that on the state side we have cut so much from the very basic (administration) that we need to be able to run these programs – there's not more efficiencies to find."
Fraud, she said, is rare. When it does happen, it's often by agencies or companies acting as middlemen rather than program participants.
Hundreds of thousands of Oklahomans participate in these programs, and many of those who are considered "able-bodied" work. Even with assistance, Putnam said, basic survival is hard.
"Oklahomans aren't choosing to live this way because it's easier or better than having a job or because someone hasn't created the perfect job board that will allow them to get the job," Putnam said. "They're living this way because they fundamentally don't have other choices."
Bernard with Hunger Free Oklahoma said SNAP participation is a reflection of people's economic conditions.
Addressing wages is a key solution, he said, but "...You are always going to have a population of people who work and still don't earn enough, and so are going to need access to these programs."
The impacts of block granting low-income programs
According to research from the Center on Budget and Policy Priorities, funding for programs structured as block grants tends to significantly shrink over time. Since 2000, overall funding for the 15 block grant programs created before then fell by 41% after adjusting for inflation and population growth.
TANF, for example, has seen a decline in the amount of basic assistance it provides because states have used their flexibility to shift funding to other places. For every 100 families living in poverty in Oklahoma from 2022 to 2023, only five received TANF cash assistance. That's compared to 20 out of 100 nationally.
"Especially in states like Oklahoma, where the budget tends to be so tight year over year, it just becomes another pot of money that can be used for other things," Putnam said.
Bernard said flexibility can be accomplished without block granting by using certain waivers.
The benefit of programs like Medicaid and SNAP, Putnam said, is that they wax and wane based on need, whereas a block grant is set.
"Converting to a block grant – having a set amount of money that does not stretch to accommodate need – would dramatically limit responsiveness for these programs," Putnam said.
What's next?
Bernard said his organization supports some of the executive order's goals, such as increasing transparency and addressing benefit cliffs. But he said some of the solutions are concerning.
Nonprofits and religious organizations are key, he said, but the government needs to play a significant role, especially in funding. For Bernard, success requires a more nuanced and long-term approach.
"To act like the whole thing will be solved in 180 days, I think is not super accurate," Bernard said. "Any plan that's created that quickly without input from tons of different stakeholders is not going to be a holistic plan in the first place."
Putnam said it would be helpful to allocate money to computer systems, ensuring communication between different benefits programs. She also added the Oklahoma Policy Institute is in favor of targeted tax credits aimed at low-income families to address benefit cliffs.
"It would mean that more cash would be going to families who need it and will spend it in their communities," Putnam said. "And there's a lot of research showing that they will spend on needs and on their children."
