State lawmakers are confronting the possibility of new major costs tied to SNAP benefits.This comes as new federal requirements under the One Big Beautiful Bill Act are shifting administrative costs to states.The move forces Alabama to cover roughly 39-million-dollars.Beginning next year, the state could also face up to 200-million-dollars in addition expenses tied to payment error rates.
Officials warn failing to fund the mandate could lead to cuts or a withdrawal from SNAP.Around 750-thousand state residents rely on the program.The issue is expected to be a major focus as state leaders are set to discuss the budget. States went into 2026 major decisions to make in 2026 about the social safety net and taxes in the aftermath of a sweeping law President Donald Trump signed last year. The federal government is shifting more responsibilities to states over the next few years, and states must prepare for greater costs in the Medicaid health care and SNAP food aid programs. They also must decide whether to offset upcoming federal funding cuts with state tax dollars. And they must weigh whether to cut state taxes on tips, overtime wages and other items to remain in line with Trump's big bill.
Though most states still have ample rainy day funds, the extra burdens are coming as many states face their tightest budgets since the early days of the coronavirus pandemic.
“There’s a big storm coming for state budgets — the radar is clear — and it’s going to hit almost every state,” said Tim Storey, CEO of the National Conference of State Legislatures. “It’s going to mean some hard choices.”
In most states, those determinations will begin in January, when legislatures convene and governors lay out their agendas. The Supplemental Nutrition Assistance Program, which is used by 42 million Americans to help buy groceries, is going to become more expensive for states to run and harder for some people to qualify for assistance.
Currently, the federal government picks up the full cost of benefits — around $94 billion in the fiscal year that ended in September 2024 — and splits the administrative costs with the states, which run the program. The federal share of administrative costs for 2024 was about $6 billion.
Starting Oct. 1, states will have to pay three-fourths of the cost to run the program. And starting in late 2027, some states that make errors in more than 6% of payments — often for paying a household more than it's supposed to get after its income rises — will have to start paying some of the costs of benefits.
California already has allocated $84 million to try to reduce SNAP errors, plus additional money to help counties implement other new requirements. The shift in administrative costs could come to around $50 million a year in Florida, said Sky Beard, the Florida director for No Kid Hungry. Paying for some SNAP benefits, if the state is forced to, could be in the neighborhood of $1 billion a year. She said that’s a reason lawmakers have a lot of questions about the details of error rates.
