US SNAP Funding Changes Shift 75% of Admin Costs to States

WASHINGTON: US states must cover 75% of Supplemental Nutrition Assistance Program (SNAP) administrative costs from Thursday, up from 50%, as funding changes reduce federal support. Previously, Washington and states split operational expenses equally, including staff pay and training. Now, the federal contribution falls by half. However, the federal government continues to fund food benefits in full. A separate change begins in October 2027, when states may have to contribute if their payment error rate reaches 6%. SNAP benefits are rising slightly, but new cost-sharing requirements for states could strain budgets and threaten future access. https://t.co/bQ2ypGWjTo — USA TODAY (@USATODAY) September 27, 2026 That rate measures overpayments and underpayments to recipients. Federal estimates put the reduction in SNAP spending at $16.9 billion over five years. Meanwhile, the Food Research & Action Centre estimates that individual states need between $3 million and $670 million to replace lost administrative funding. Read: One Big Beautiful Bill Act Winners Emerge After Year One The anti-hunger advocacy group identifies California, New York, Pennsylvania, Texas and Michigan as particularly exposed. Looking at the later benefit-sharing rules, the Centre on Budget and Policy Priorities estimates that nearly half of states could each face costs of at least $100 million. Hundreds of thousands of immigrants with legal status are at risk of losing government health coverage starting Oct. 1, state data shows, signaling that the impact of Medicaid changes in President Trump's legislation may be greater than expected. https://t.co/pJXOHkHSDh — The Washington Post (@washingtonpost) September 30, 2026 California and New York could each owe more than $1 billion unless they lower their error rates. Katie Bergh, a senior policy analyst at the think tank, warned that states might seek new revenue. Other programs or restrict access. Some could also 'withdraw from the program entirely', she said. President Donald Trump's One Big Beautiful Bill Act, enacted in July 2025, introduced the changes. Read: Wall Street Dips as Tesla Falls Amid Trump-Musk Feud Over Tax Bill While the White House maintains that the law preserves and strengthens food assistance, Bergh argues that the previous funding model protected access in poorer states. The US Department of Agriculture, which administers SNAP, had not responded to a request for comment.