States Could Stop SNAP Benefits If Republican Bill Becomes Reality

Newsweek

a day ago

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States could stop offering SNAP benefits if the One Big Beautiful Bill Act becomes reality and they are shouldered with more of the cost of the food stamp program.
"Shifting responsibility for funding SNAP onto states would upend state budgets," Darcy Milburn, the director of Social Security and health care policy at the Arc of the United States, told Newsweek.
"SNAP is an optional program for states, so state governments may decide to address this fiscal challenge by reducing SNAP benefits, restricting eligibility, or even opting out of SNAP entirely,"
Why It Matters
More than 40 million Americans rely on SNAP, which provides monthly benefits to for low- and no-income households to help pay for groceries.
What To Know
As it stands, states pay for half of the administrative costs of running the food assistance program, while the U.S. Department of Agriculture (USDA) pays the other half. The USDA also covers the entire cost of benefits.
But this could soon change: under the Republican-led budget bill, which is currently being considered in the Senate, states could be made to pay for a portion of SNAP benefits in order to reduce federal spending.
The House-approved version of the bill mandates that states will need to pay up to 25 percent of the cost of benefits, dependent on individual state payment error rates, starting in 2028. Those with higher error rates—more than 10 percent—would pay the most.
If the funding cannot be found, it could lead to states ending their participation in the food stamp program.
"Because SNAP is an optional program for states, these deep federal funding cuts may result in some states opting to end SNAP entirely if they are unable to come up with the state funds required to fill the hole left by deep federal cuts," the Center for Budget and Policy Priorities (CBPP) reported in May.
Numerous states have warned that the cost of the program could be catastrophic for state budgets if the plans go ahead. Michigan Governor Gretchen Whitmer has warned the state could face footing a $900-million bill, while Rhode Island could end up paying $85 million to make up the gap.
In late May, the Wisconsin Department of Health Services said the state would lose some $314 million in food assistance if President Donald Trump's bill comes to pass. So far, no state has said they plan to drop out of the program if the bill passes.
Stock image of a woman shopping for groceries.
Stock image of a woman shopping for groceries.
GETTY
"States are not in a position to absorb these substantial additional costs," the CBPP warned. "In fiscal year 2024, tax revenue fell in 40 states after adjusting for inflation, and many states are projecting budget shortfalls in the short and long term."
According to a report by Politico, senators on the Agriculture Committee are seeking to reduce the percentage of benefits being paid for by states with the highest error payment rates to 15 percent, down from 25.
What People Are Saying
A USDA spokesperson told Newsweek: "As set by Congress in law, SNAP is at the request of the state agency. Regardless of this reconciliation exercise, states have the option whether to participate."
Darcy Milburn, speaking to Newsweek: "During times of economic uncertainty, we need SNAP more than ever. Any cuts to SNAP funding would make it even harder for people with disabilities and their families to access the food they need to live healthy lives. We urge Congress to reject proposals for any cuts to SNAP, and to work on a bipartisan basis to strengthen and protect this critical program."
Jennifer Greenfield, associate professor at University of Denver who specializes in the intersection of health and wealth disparities, previously told Newsweek: "The proposed federal 'savings' are not savings at all—it's a shift of the costs to our already cash-strapped states and families. The net result will be to increase hunger and financial instability among households with children, older adults, people with disabilities, and veterans—while also sending tens of thousands of people into unemployment."
President Donald Trump has not commented directly on the SNAP provisions included in the bill, but has urged lawmakers to pass it.
"It's time for our friends in the United States Senate to get to work, and send this Bill to my desk AS SOON AS POSSIBLE!" he wrote on Truth Social.
What's Next
The Senate is expected to revise several parts of the legislation before holding a final vote.