States Face Higher SNAP Costs as Enrollment Falls by More Than 5 Million Under New Requirements
SNAP enrollment has fallen by more than 5 million people since new requirements were signed into law last year, USA TODAY reported, while states began paying 75% of administrative costs on Oct. 1 and face benefit cost-sharing penalties starting in October 2027.
States are absorbing new costs and tougher rules for the Supplemental Nutrition Assistance Program while enrollment in the food aid program has dropped sharply, according to USA TODAY.
SNAP participation has fallen by more than 5 million people since President Donald Trump signed the GOP tax and spending bill in July last year, including seniors and families with children, according to U.S. Department of Agriculture figures cited by USA TODAY. In Arizona, participation has dropped by more than half, to about 421,000 people in June, according to an analysis by the Food Research and Action Center cited by USA TODAY.
States pay more, starting now
On Oct. 1, states began paying 75% of SNAP administrative costs, up from an even split with the federal government that had lasted for decades, according to USA TODAY. A larger change arrives in October 2027, when states will for the first time help pay for benefits themselves: states with payment error rates above 6% will cover a share of benefit costs, rising to 15% for states above 10%.
With a national error rate of 10.62%, more than 30 states are expected to face penalties, and the Food Research and Action Center estimates the combined changes will shift $13.8 billion in costs from the federal government to states, according to USA TODAY. Massachusetts officials said the state must find an additional $53 million a year for administration and could owe $392 million under the penalty structure, while Vermont put its added administrative cost at $10 million, USA TODAY reported.
Pressure for a delay
State officials told USA TODAY their budgets are already stretched and they are lobbying Congress for relief. A Farm Bill awaiting a full Senate vote included a one-year delay in the state cost requirement, though it would raise the maximum state share to 20%, according to USA TODAY; Republicans favor a one-year extension and Democrats a two-year extension.
The White House has defended the changes as a way to restore work requirements and make the program sustainable, according to USA TODAY. The Congressional Budget Office has warned that some states could leave SNAP because of the new financial burden, and officials in Alabama and Arizona have raised that possibility, USA TODAY reported.
Reporting based on coverage by USA TODAY.
