The Supplemental Nutrition Assistance Program (SNAP) is set to undergo significant financial changes, prompting states to reassess their budget allocations. These modifications will see a reduction in federal funding, compelling states to shoulder a larger financial burden.
Previously, the costs of running SNAP, such as staffing and training, were equally divided between the federal government and the states. Starting this Thursday, however, the states will need to cover 75% of these expenses, as federal contributions will decrease by 50%.
According to the federal government’s projections, this shift will save $16.9 billion in federal funds over five years, translating to an annual reduction of $3.4 billion.
The Food Research & Action Center estimates that states will need to find additional funds, ranging from $3 million to $670 million, to compensate for the diminished federal support. This financial shift is anticipated to hit states like California, New York, Pennsylvania, Texas, and Michigan the hardest.
In response, states have been adjusting their budgets over the past year, but further belt-tightening may be necessary as more changes loom. Currently, federal funds entirely cover food benefits. However, from October 2027, states with error rates—indicative of overpayments and underpayments—at 6% or above may need to contribute financially to these benefits.
The Center on Budget and Policy Priorities, a policy think tank, predicts that almost half of the states could incur costs of $100 million or more unless they reduce their error rates. For states like California and New York, this could mean a financial responsibility exceeding $1 billion each.
The Georgetown Center on Poverty and Inequality reported last year that these impending alterations could triple the expenses required to maintain the program’s current operations.
As Katie Bergh, a senior policy analyst from the Center on Budget and Policy Priorities, notes, states may need to identify new revenue sources, reallocate funds from other programs, or impose stricter access to SNAP. “And we may see some states decide that they need to withdraw from the program entirely,” Bergh adds.
These changes in funding were initiated by the One Big Beautiful Bill Act, signed into law by President Trump in July 2025. The White House justifies the Act by stating it aims to preserve and enhance the SNAP program, describing it as “so bloated that it is leaving fewer resources for those who truly need help.”
Bergh argues that the earlier funding model played a vital role. “That essentially ensured that eligible families who were seeking benefits could get them even if they lived in a state that had much higher rates of poverty or a smaller tax base,” she explains.
Requests for comments from the Agriculture Department, which oversees SNAP, remain unanswered.
The One Big Beautiful Bill Act also brought about major reforms, including tougher work requirements and the cessation of food aid eligibility for certain noncitizens. Since the commencement of Trump’s second term, SNAP beneficiaries have decreased from 42 million to 36 million, a decline largely observed post-legislation.
Copyright 2026 NPR
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