Federal Reforms to the Supplemental Nutrition Assistance Program (SNAP): What Counties Should Know

Counties, regardless of size, location or resources, are deeply committed to promoting the health and well-being of residents. Each day, counties deliver essential services that support vulnerable individuals and families, serving as a vital partner in the federal, state and local human services delivery system. County responsibilities vary by program and may include contributing administrative funding, determining eligibility, delivering services or contracting with providers, managing program funds, meeting Maintenance of Effort (MOE) and nonfederal share requirements, collecting data, enrolling participants and more.

On February 25, NACo joined a bipartisan coalition of national organizations representing states, counties and cities in sending a letter to congressional leadership expressing concern over proposed changes to SNAP, TANF and SSBG. The letter followed recent budget reconciliation proposals that would enact significant cuts to these programs.  

On May 21, NACo sent a letter to congressional leadership expressing concern over the proposed changes regarding SNAP to shift benefit and administrative costs through to counties and states.

This FAQ expands on these letters, outlining the potential impact of the cuts and cost shifts to SNAP being proposed on counties and providing steps county leaders can take to advocate for preserving funding for this critical program.

Counties and the Supplemental Nutrition Assistance Program 

As the largest federal nutrition program reaching nearly 42 million households, SNAP is a foundational part of the social safety net and has a significant impact on combating hunger and poverty in low-income households, particularly in rural communities. Counties are responsible for administering the program in ten states, California, Colorado, Minnesota, New Jersey, New York, North Carolina, North Dakota, Ohio, Virginia and Wisconsin. These states represent approximately 34 percent of total participants, or 14.6 million people. 

In Minnesota, North Carolina and New Jersey, counties must meet the entire 50 percent non-federal match requirement for SNAP administrative funds, while in California, Colorado, New York, Ohio, Virginia and Wisconsin, the counties share this financial obligation with the state. Only in North Dakota does the state entirely fund this requirement. 

One Big Beautiful Bill Act (H.R. 1) Analysis

H.R. 1 passed by the U.S. House of Representatives on May 22, proposes reducing federal funding for SNAP by nearly $300 billion through FY 2034. Key highlights can be found below:

Benefit Cost Shift and Payment Error Rate

Since the program’s establishment in 1964, the federal government has fully funded SNAP benefits. H.R. 1 proposes that states pay a minimum of five percent of SNAP benefits starting in FY 2028, with their share increasing up to 25 percent based on the state's payment error rate. In addition to mandating that states pay a portion of SNAP benefits based on their payment error rate, the legislation also proposes eliminating the tolerance threshold for payment errors from $57 to $0, meaning that states and counties will face an unreasonable accuracy burden, and we can expect for state payment error rates to increase.

This proposal raises major concerns for counties with the potential of states passing penalties to county governments, even when local offices are fulfilling their obligations to track and monitor recipients and benefit payments.

Administrative Cost Shift

Currently, the federal government covers approximately 50 percent of the administrative costs for SNAP. H.R. 1 proposes reducing the federal contribution to 25 percent and increasing the state and local governments' share to 75 percent. We estimate that this cost shift could increase administrative costs for counties by approximately $865 million annually.

Work Requirements

Under current law, Able-Bodied Adults Without Dependents (ABAWDs) must work at least 20 hours a week or participate in qualifying programs to be eligible for SNAP benefits and are limited to receiving SNAP benefits up to three months for failure to comply with these requirements. H.R. 1 expands the definition of ABAWDs to include adults aged 18 to 64 (an increase from the current range of 18 to 54) and parents with children ages 7 to 18. Furthermore, the legislation reduces the flexibility for states to waive ABAWD work requirements in areas with high unemployment or limited job opportunities, even if local economic conditions warrant flexibility. Under the expanded definition and less flexibility for waivers, more people will be subject to work requirements, increasing the administrative burden on counties. 

Budget Resolutions

U.S. Senate

On February 21, the Senate passed its budget resolution (S. Con. Res. 7), which instructs the Senate Agriculture Committee to reduce spending by at least $1 billion over 10 years.

U.S. House of Representatives 

On February 25, the House passed its budget resolution (H. Con. Res. 14), which instructs the House Agriculture Committee to reduce spending by at least $230 billion over 10 years.

Reconciliation Bills

U.S. House of Representatives

On May 22, the U.S. House of Representatives voted to pass their version of reconciliation legislation, the One Big Beautiful Bill Act (H.R. 1), by a vote of 215-214. The bill included nearly $300 billion in cuts to SNAP through benefit and administrative cost shifts, expanded work requirements, and more.  

U.S. Senate

As of June 11, we are still waiting on final text from the Senate Agriculture Committee, which oversees SNAP, and the U.S. Senate has reported that they intend to pass their version of H.R. 1 by July 4.

What are the next steps?

H.R. 1 now heads to the U.S. Senate, where changes will likely be made to the bill to ensure it can pass the chamber. The U.S. House will then have to consider and pass any changes made in the U.S. Senate. As of June 11, we are still awaiting final bill text from the Senate Agriculture Committee, which will provide details on changes to SNAP that the Senate is proposing. Additionally, as of June 11, the U.S. Senate intends to pass its version of H.R. 1 by July 4.

Counties should continue to advocate for county priorities to be included in the final budget reconciliation bill.