A big change is coming to SNAP, the food assistance program that helps millions of families buy groceries. A new law called the One Big Beautiful Bill Act will make states pay for part of SNAP food benefits for the first time ever. This rule starts in October 2027 and could shift billions of dollars in costs to state budgets.
Before now, the federal government always paid 100% of SNAP food benefits, while states only helped with administrative costs. But that will soon change, and many governors say their states can’t afford it.
Under this new law, states will have to pay between 5% and 15% of SNAP benefits, depending on how many mistakes they make when calculating payments. These mistakes are called payment error rates, and they happen when states accidentally send too much or too little money to families.
Here’s how the new cost-sharing system works:
- Error rate below 6%: No state match required. Only 8 states like Utah, Vermont, and Nebraska would qualify.
- Error rate 6–8%: States pay 5% of benefit costs.
- Error rate 8–10%: States pay 10%.
- Error rate above 10%: States must cover 15% of costs.
That means 44 states could face new costs right away based on 2024 data. Even if a state later improves its error rate, it will still have to pay if it had higher errors in the past.
Experts say this could force states to cut eligibility, raise taxes, or reduce other public services. Many worry this rule is designed to make SNAP harder to run and less stable.
Another major problem is that starting in 2027, states will also have to pay 75% of SNAP’s administrative costs, up from the current 50%. This means less federal help and more strain on already tight budgets.
States with high error rates will face the most pressure. For example, California, New York, and Florida could end up paying billions each year. There’s even a special rule—called the Alaska carve-out—that lets some states delay payments if their error rate is very high, but only for a short time.
Payment errors are not the same as fraud. These are often caused by outdated computer systems, staff shortages, and policy changes. During COVID-19, the USDA paused normal reviews, and when it restarted them, many states saw spikes in errors.
States already have to fix these problems by sending Corrective Action Plans to the USDA. These plans must explain every mistake and show how the state will fix it. Now, with new financial penalties added, it will be even harder for states to recover.
Many governors have warned that these rules could lead to program cuts or even states pulling out of SNAP altogether. Texas has already said it will end its Summer EBT Program in 2027 because of fears about the new SNAP funding rules. This move will leave thousands of kids without extra food help during the summer.
Policy experts say this law could be a way to slowly dismantle SNAP by shifting blame and costs to states. If states struggle and cut back, fewer families will get help, and food insecurity will rise.
This change comes as other SNAP policies are also making headlines. For example, SNAP benefits will stay frozen until 2027, meaning no increases for families for several years. At the same time, 12 states plan to ban junk food purchases with SNAP by 2026, another controversial move linked to this same federal bill.
You can also read about other SNAP program changes in 2025 under the One Big Beautiful Bill Act, which outlines many of these cost and eligibility updates.
Even though this SNAP law doesn’t affect other programs like WIC benefits during a government shutdown, many experts warn that the same budget stress could spill over into programs that help moms and kids.
This new policy marks one of the biggest shifts in the 60-year history of SNAP. Supporters say it could encourage better program management. But critics warn it’s a “perfect storm” that could weaken state systems and reduce access to food for families who need it most.
As 2028 approaches, states are scrambling to figure out how they’ll pay their share—or how they can avoid joining the long list of states struggling under this new rule.
