Thursday, October 1, 2026·Focal News

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SNAP cost shift puts new budget pressure on states starting Oct. 1

States will begin paying 75% of SNAP’s administrative costs as federal support is cut in half, a change projected to reduce federal spending by $16.9 billion over five years. A second shift, potentially requiring states to help pay for food benefits, is scheduled for October 2027.

SNAP cost shift puts new budget pressure on states starting Oct. 1
States face a larger bill for administering the Supplemental Nutrition Assistance Program beginning Oct. 1, as a federal funding change shifts more of the cost of running the food aid program onto state budgets. The federal government and states have historically split SNAP administrative expenses — including staff salaries and training — evenly. Under the new arrangement, states will pay 75% of those costs, while federal support falls by half. The U.S. Department of Agriculture administers the program with state agencies. The federal government estimates the change will reduce federal SNAP spending by $16.9 billion over five years, or about $3.4 billion annually. The Food Research & Action Center estimates states would need to find between $3 million and $670 million each to replace the lost administrative funding. California, New York, Pennsylvania, Texas and Michigan are expected to face especially large costs. The shift stems from the One Big Beautiful Bill Act, signed by President Donald Trump in July 2025. The White House has said the law preserves and strengthens SNAP, arguing the program had become too costly. The Agriculture Department had not responded to a request for comment as of the report’s publication. The administrative change is one part of a broader restructuring. Starting in October 2027, states may also have to pay part of the cost of food benefits if their SNAP error rate — which tracks overpayments and underpayments — is at least 6%. The Center on Budget and Policy Priorities estimates nearly half of states could owe $100 million or more if they do not reduce their error rates. California and New York could each face bills exceeding $1 billion, the think tank estimates. Katie Bergh, a senior policy analyst at the center, said the growing costs could lead states to seek new revenue, cut other programs or further limit SNAP access. Some states, she warned, might consider leaving the program altogether. Bergh said the former funding structure helped ensure eligible families could receive benefits regardless of whether they lived in a state with high poverty or a smaller tax base. The law also tightened work requirements and ended SNAP eligibility for a small group of noncitizens who had previously qualified. The number of people receiving benefits fell from 42 million when Trump’s second term began to 36 million in June, with most of the decline occurring after the law was signed. The new cost responsibilities could put states with limited budgets under added pressure, while creating a risk that administrative cuts or tighter eligibility decisions could make food assistance harder to access.

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