Dozens of states could be hit with millions of dollars in new costs to keep food assistance flowing to lower-income residents after new U.S. Department of Agriculture (USDA) data revealed which states may benefit — and which could face major financial pressure — under a new federal law targeting payment errors in the Supplemental Nutrition Assistance Program (SNAP).
The legislation, signed by President Donald Trump, requires states with high SNAP payment error rates to eventually cover a share of benefits themselves. The cost-sharing rule, set to begin in October 2027, is designed to hold states accountable for administrative mistakes while generating federal savings to help offset new tax cuts.