The Supplemental Nutrition Assistance Program (SNAP) is undergoing a drastic restructuring of its funding model — one that will reduce federal support and require states to shoulder a larger share of the bill.Historically, the federal government and states have evenly split the food aid program's operational costs, such as paying for state workers and training staff.But starting on Thursday, states will need to cover 75% of that tab while federal funding shrinks by half.By the federal government's own calculations, the new rule will lead to a $16.9 billion reduction in federal spending for SNAP over the next five years, or $3.4 billion annually.The Food Research & Action Center, an anti-hunger advocacy group, estimates that states would need to shore up anywhere between $3 million and $670 million to fully offset the loss in federal funding for administrative costs.
California, New York, Pennsylvania, Texas and Michigan are expected to be especially hard hit.Over the past year, states have been rebalancing their budgets to account for the new costs.But they will likely need to tighten their belts even further as more funding changes are on the horizon.Currently, food benefits are covered entirely by federal dollars.
But starting in October 2027, states may have to pay for a portion of the food aid if their error rate — a measure of overpayments and underpayments to SNAP recipients — is at or above 6%.The Center on Budget and Policy Priorities, a left-leaning think tank, estimates that nearly half of states could each pay $100 million or more if they do not lower their error rates.California and New York could each be on the hook for over $1 billion if they are unable to do so, according to the think tank.In a report published last year, the Georgetown Center on Poverty and Inequality estimated that these changes together will force states to spend two to three times more to keep the food assistance program running.These mounting costs will put states in...