- The Interim Third-Party Manager was seeking the data in order to determine the possibility of offering a reduced utility bill to those on the federal welfare program.
Late last week, the U.S. Fifth Circuit of Appeals denied JXN Water access to federal SNAP recipient data, a blow to its efforts to provide lower rates to Jackson’s poorest residents.
The court reversed and remanded an earlier decision by U.S. District Judge Henry Wingate that ordered Mississippi and the federal government to hand over SNAP data to JXN Water’s , Ted Henifin.
“The mere appointment of a federal receiver- even if the individual or entity is considered an officer of the court – does not grant federal power to the receiver,” the Fifth Circuit decided in its 21-page ruling. “That is, to the extent that the ITMP does act as an agent of a federal assistance program by contributing to the improvement of Jackson’s water systems with federal funds stemming from grants, the particular action for which it requests SNAP data-rate setting is unequivocally non-federal.”
JXN Water argued it needed the list of beneficiaries to see which residents of Jackson are eligible for a $30 reduction on their monthly bill. The utility also argued that, as it is receiving approximately $788 million in federal funds to upgrade the city’s water system, it is entitled to the information.
Last year, JXN Water’s rate structure included a $40 meter surcharge. To offset the economic hardship that would cause many of Jackson’s poorest residents, Henifin provided the discount by using SNAP data. The Mississippi Department of Human Services and the U.S. Department of Agriculture denied the request, leading JXN Water to take legal action.
DHS argued it could lose federal funding if it handed over the SNAP information. According to the Federal Reserve Bank of St. Louis, about 450,000 Mississippian receive SNAP benefits as of December 2024.
State and federal attorneys argued that the JXN Water does not have a right to the data, only elected city officials. The Fifth Circuit agreed, stating Henifin’s job “stems directly from the municipal code, and all rate setting ultimately must be authorized by the mayor in accordance with that code.”
The Fifth Circuit also agreed that the 1982 Food Stamp Amendment “authorized the disclosure of food stamp data [only] to those connected with the administration and enforcement of ‘federal assistance programs or federally assisted [s]tate programs…’”
In response, JXN Water issued a press release, stating, it is disappointed by the Fifth Circuit’s decision.
“The decision blocks JXN Water’s access to SNAP data — data that would have allowed automatic classification of eligible customers to the SNAP Customer Classification providing water bill relief to residents living on the margins,” JXN Water’s statement read.
The utility said access to the data would have allowed them to “proactively” reach out to financially struggling households.
“This decision is a hurdle, but it does not change our commitment,” JXN Water stated. “We remain steadfast in finding new paths to identify and appropriately classify customers eligible for relief under the JXN Water SNAP Customer Classification to ensure affordability and protect access to water for the most vulnerable members of our community.”
Relations between JXN Water and Jackson leaders were further strained Friday when a massive sinkhole developed on Denver Street. Initially, Jackson said it was JXN Water’s responsibility, but the company said it is responsible for lines while Jackson is responsible for maintenance, including drainage.
On Monday, the city said it may be able to repair the seven-foot-deep hole by early May. On Saturday, orange and white barrels, a common sight around Jackson, were blocking the sinkhole. Discarded tires, cans and a single shoe were inside the hole, which also had areas of stagnant water.
