Indy Hunger Network Slams FSSA Over Returning $310M to State Fund

INDIANAPOLIS — The Indy Hunger Network is criticizing the state over spending decisions after revealing that Indiana’s Family and Social Services Administration (FSSA) returned more than $310 million in unused state appropriations to the general fund for fiscal year 2026. The news comes as advocates say thousands of Hoosier families continue to struggle with food insecurity and rising living costs.

In 2024, more than 600,000 Indiana children received summer food assistance through the federal SUN Bucks program. However, state officials declined to participate in subsequent years, citing administrative costs and maintaining that an improving economy rendered the program unnecessary.

Advocates argue that returning hundreds of millions in state appropriations undermines claims that the state lacked funds to support the program.

“Back in 2024, more than 600,000 Hoosier children received SUNBucks benefits, providing millions in grocery assistance for families when school is out,” said Mark Lynch, Director of Advocacy at the Indy Hunger Network. “Since 2024, Indiana’s refusal to participate in SUNBucks paired with the current economic conditions of Indiana’s affordability crisis, Hoosiers are in catastrophe mode when it comes to feeding their families.”

Lynch questioned the administration’s rationale for withholding support, asking, “Who’s paying for the choices made by Indiana’s Family and Social Services Administration? Sadly, for Indiana, the answer is Hoosier kids and families.”

Beyond direct support for families, anti-hunger advocates emphasize the economic ripple effects of opting out. According to an analysis by the U.S. Department of Agriculture (USDA), every dollar spent on Supplemental Nutrition Assistance Program (SNAP) benefits generates between $1.50 and $1.80 in local economic activity during economic downturns.

Based on participation estimates, the Indy Hunger Network calculates that SUN Bucks would have delivered between $105 million and $126 million in economic impact, benefiting more than 5,000 Hoosier grocery stores, retailers, and farmers’ markets that accept SNAP.

With state funds redirected back to the general fund, advocates continue to urge state leaders and the Braun administration to prioritize child nutrition programs to relieve the pressure on struggling households and local food pantries.