States consider withdrawing from SNAP due to federal fines set to kick in
New federal legislation will require 35 states to collectively pay approximately $9 billion starting in late 2027 if they fail to reduce payment errors in their Supplemental Nutrition Assistance Program (SNAP).
New federal legislation will require 35 states to collectively pay approximately $9 billion starting in late 2027 if they fail to reduce payment errors in their Supplemental Nutrition Assistance Program (SNAP).
Under the changes, states with SNAP payment error rates exceeding 6 percent will be responsible for 5 to 15 percent of benefit costs, a new requirement as states previously only shared administrative costs.
An analysis indicates that states like California and New York could face bills of $1.9billion and $1.15 billion, respectively, leading 11 percent of states to consider withdrawing from the federal food aid program.
The administration argues these changes are necessary to curb waste, citing $10.1 billion in improper payments last fiscal year, while critics contend they will push vulnerable individuals off the program.
Since the "One Big, Beautiful Bill" was signed in summer 2025, SNAP enrollment has already decreased by over 4 million people, with critics arguing the reforms disproportionately affect children, low-wage workers, seniors, and people with disabilities.
