How Much SNAP Benefits Cuts Could Cost Your State: 'Existential Crisis'
Summary
The federal government will reduce funding for the Supplemental Nutrition Assistance Program (SNAP), cutting its share of administrative costs from 50% to 25% starting in fiscal year 2027. Additionally, beginning in 2027, states may have to pay a portion of SNAP food benefits themselves if their error rates in payments are high, shifting billions of dollars in costs from the federal government to state budgets.Key Facts
- The federal government has traditionally paid 100% of SNAP food benefits and 50% of administrative costs.
- Starting October 1, 2026, the federal share for administrative costs will drop to 25%, with states paying 75%.
- This shift will move an estimated $16.9 billion in administrative expenses to states between 2027 and 2031.
- Beginning October 1, 2027, states with payment error rates above 6% must pay part of SNAP food benefits.
- States with higher error rates pay more: 5% for 6-7.99%, 10% for 8-9.99%, and 15% for 10% or more error rates.
- In FY 2028, about 35 states and one U.S. territory may owe around $9 billion combined due to this change.
- Senator Elizabeth Warren warned states might face tough budget choices due to these funding cuts.
- A Senate proposal could delay the benefit cost-sharing rule by one year, but it had not passed as of late August.
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