DOJ opposes release of SNAP information to Jackson third-party manager

JACKSON, Miss. (WLBT) - In what appears to be the first time since he took over Jackson’s water system, Interim Third-Party Manager Ted Henifin appears to be at odds with a federal agency.

This week, the U.S. Department of Justice filed a motion opposing Henifin’s request seeking the District Court’s help in obtaining information on SNAP benefits.

SNAP is the Supplemental Nutrition Assistance Program. Individuals participating in the program are eligible for a reduced meter availability charge under a new rate structure proposed by the third-party.

However, in a motion filed on Wednesday, attorneys for the Justice Department said federal law prevents the information from being released except in narrow circumstances.

“Even under discovery standards, a blanket, large-scale release of SNAP information would fall outside the scope of allowable discovery and needlessly intrude on the privacy of SNAP recipients, who have not consented to disclosure and who might not even be JXN Water account holders or bill payers,” attorneys write.

“Even more problematic is that a blanket release of SNAP recipients could include individuals residing in group homes, shelters for battered women and children, residents of homeless shelters, and residents of drug/alcohol treatment facilities - some of the most vulnerable households participating in SNAP.”

The agency also refuted Henifin’s claims that the ITPM is a “substantive and legal equivalent of a ‘federal assistance program,’” and that state statute didn’t prevent the release of the information during judicial proceedings.

“Although the ITPM’s authority arises from an order of a federal court, the ITPM is not carrying out a federal (or federally-assisted) state program, but rather the city of Jackson’s duties,” the DOJ wrote. “Assuming city functions under a federal order does not transform the functions into a federal (or federally-assisted state) program.”

[READ: ‘A complete sea change’: Henifin marks one-year anniversary as third-party manager]

Henifin filed a motion for relief earlier this month seeking the court to compel the Mississippi Department of Human Services to release SNAP information by February 29. The motion did not say whether MDHS refused to release it.

He told the court there are about 39,000 SNAP-eligible people in the city of Jackson, and that he can’t apply a reduced water rate if he doesn’t know who they are.

“JXN Water must immediately identify... SNAP-eligible ratepayers, so they can be assigned to the new SNAP rate class,” he wrote. “The only practical way to timely implement that rate classification is to cross-compare the SNAP-recipient list... with JXN Water’s ratepayer list.”

DOJ didn’t argue the motives of the third-party manager but said federal law does not make exceptions for releasing the information even in JXN Water’s case.

“SNAP recipients in Jackson are not litigants in the Safe Drinking Water Act case or the Clean Water Act case,” the federal government wrote. “Unlike litigants seeking confidential information to further their claim, defense, or a judgment, the SNAP recipients here have not consented to disclosure of any kind, much less to a third party.”

Henifin was appointed third-party manager over Jackson’s water system in 2022 as part of the DOJ and Environmental Protection Agency’s Safe Drinking Water case against Jackson. The following year, he was appointed ITPM over the city’s sewer system in the Clean Water case.

The third-party leader introduced JXN Water’s new rate structure back in November. Under the structure, residential customers who receive SNAP would only be charged a monthly $10 meter availability fee. Customers who are not SNAP-eligible would pay the full amount, which starts at $40 a month.

DOJ tells Judge Wingate that had Henifin consulted the federal government before filing the motion, it could have been able to work with him on potential alternatives to obtain the information he needed, and still is willing to.

Those options include adding in each bill ways for customers to provide their consent to MDHS to release their SNAP information to JXN Water. Another is providing SNAP recipients with vouchers or digital codes they can use when paying their bills.

“These options are lawful and narrowly tailored to ensure that only consenting account holders will have their private... information disclosed to the ITPM,” the feds wrote. “Given the substantial benefit to SNAP recipients - a monthly 75 percent discount... the United States is confident that the ITPM will be able to incentivize eligible account holders to sign up.”

SNAP information aside, Byram officials are questioning how the new rate structure will impact some of their residents.

Byram Mayor Richard White and Public Works Director Bill Miley appeared before the Public Service Commission recently to discuss their concerns.

The two say that state law currently allows for municipal systems to charge up to two times the set rate for water for customers who live in a one-mile radius outside the city limits.

White is concerned whether JXN Water will continue to charge those residents in that area a higher rate even under the new billing structure.

“That is the big deal to me. It’s always been my big deal because these people, some of these people’s water bills were $150 a month and there wasn’t but one couple living there,” he said. “It could [take] them up to $300 a month.”

A Mississippi Supreme Court decision from 1976 interprets state statute as giving municipalities the ability to charge customers in the one-mile radius outside the city limits up to two times as much as customers in the city limits for water service.

For customers living beyond that one mile, rates are subject to the Public Service Commission.

It’s unclear how the statute or Supreme Court decision would apply to the third-party manager.

The stipulated order gives the third-party the authority to raise rates, as long as the rates are “appropriate to meet the requirements” of that order.

Before doing so, he must consult with the mayor and the mayor’s staff, and the mayor must take the request to the city council. If the council votes down the proposal, and 365 days have passed since the last increase, the third party can implement the new rates within 30 days of giving notice to the mayor, public works director, city council, and general public.

For customers located more than a mile outside the Jackson city limits, the ITPM has the authority to present rate increases to the PSC. However, the order is not clear on whether the PSC has to approve them.

Officials with JXN Water were not immediately available for comment.

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