One, you're feeding him WAY too much. Two meals a day are more than adequate. Breakfast and once more around 6:00 or so in evening. My dogs run 65-70 pounds. They get dry food in the morning. If they don't eat it (usually don't in the hot months) that same dry food gets mixed with a half can of wet food at night. If they DO eat breakfast, they get slightly less food mixed with the 1/2 can of wet food for dinner. You don't want to feed very late in the evening. Just like humans, all those calories will not get burned off and they'll only go toward making fat. I follow the same basic feeding with puppies, only with less food - obviously. :-)
Yes, changing foods can cause digestive problems. Changing flavors within a particular brand like Pedigree or Iams or whatever, shouldn't cause troubles.
Is your puppy throwing up food or is the vomit primarily liquid? That is a clue your vet will need to know about. Generally speaking, if a dog barfs up food it's not a big deal. Usually related to over-eating or just something that isn't agreeing with their tummies. Throwing up on an empty stomach can indicate something more serious is going on.
I can't imagine what all has gone wrong with this puppy in 8 months to generate that amount of vet bills. Either something is seriously wrong or you have a vet that is overcharging. The hernia must be dealt with, but not if your puppy has a serious illness brewing. You need to tell your vet about the vomiting before surgery.
Plain boiled rice is usually what is recommended when a dog has an upset stomach. It is very bland and often kept down when other more flavorsome foods would cause trouble.
I have no experience of umbilical hernia, but it is possible that causes him to be nauseated and vomit. Have you asked the vet about this? Surely they won't mind an enquiry over the phone? If he has to stay on boiled rice and water for a few days until his operation he'll be ok. However I'd check with the vet if the symptoms could be those of some kind of blockage in the digestive tract, in which case he may need to be operated on sooner.
Also to help financially in the future it might be a good idea to take out dog insurance. That way it's only a small payment each month for peace of mind.