SNAP cost-sharing jeopardizes food assistance program

Yahoo

a day ago

Indiana could be on the hook for as much as $360 million a year in SNAP costs. (Getty Images)
Most people are talking about work requirements for federal assistance like Medicaid and the Supplemental Nutrition Assistance Program (SNAP). But it's another provision that could have a much bigger impact.
More than 600,000 Hoosiers received $1.44 billion in financial assistance to buy food in fiscal year 2024, mostly families with children who can't make ends meet. That cost-sharing language for the federal program threatens to break Indiana's budget or take out the program altogether.
A key provision in the federal reconciliation bill that passed the U.S. House and now is being vetted in the Senate would require states to have skin in the game for SNAP. Right now, the benefits are 100% covered by the federal government with the state picking up half of the administrative costs.
But the proposal would require some states to cover as much as 25% of the benefits cost starting in 2028, depending on each state's error rate. States with the highest error rates would pay more as a 'state quality control incentive' to crack down on fraud and abuse.
The seven states with error rates below 6% would only need to cover 5% of the tab under the current version of the bill. But Indiana's 10.5% error rate puts it into the highest tier for a match rate — even though it falls below the national average rate of 11.68%.
That means Indiana could be on the hook for as much as $360 million a year.
Coming off a budget session where state lawmakers had to cut higher education funding, child care aid and economic development programs, any new fiscal obligation will be a burden. But $360 million would be near impossible.
The Congressional Budget Office estimated the cost-sharing component will save the federal government a little under $100 billion.
'CBO expects that some states would maintain current benefits and eligibility and others would modify benefits or eligibility or possibly leave the program altogether because of the increased costs,' the analysis found.
Gov. Mike Braun's administration didn't provide a comment on the possible ramifications.
It's important to remember the hungry Hoosiers at the heart of this debate. Despite the error rate — which includes underpayments as well as overpayments — most are desperate families in need of additional assistance to put food on the table.
USDA research from fiscal year 2023 showed Indiana is among the lowest states in the percent of population receiving SNAP – between 8 and 10%. In comparison, six states and Washington D.C. were above 16% and all of Indiana's neighbors rank higher.
To be eligible, you must have a monthly net income of less than $1,255 for a family of one; $1,704 for a couple and $2,600 for a family of four. That means if you live alone and make over $300 a week you are ineligible for SNAP.
The amount you receive depends on your income but the average monthly payment per participant in April 2025 was $196. That is down slightly from April 2024.
Indiana's enrollment went up during the pandemic when additional emergency aid was available. But generally, it has been stable and ranks about mid-pack nationally. For instance, in April 2025 281,112 households or 588,184 individuals. Those numbers are a few percentage points lower than April 2024 and slightly down from Fiscal Year 2023.
Other changes being considered nationally include imposing work requirements on those receiving benefits. And some states, like Indiana, will ban using the benefits on candy and pop. I generally don't have a problem with those proposals.
But the cost-sharing provision will undoubtedly take food from hungry adults and children, and I hope the U.S. Senate re-evaluates the pain it could cause.
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