WASHINGTON — State governments across the United States are beginning contingency budget planning as new federal cost-sharing requirements for the Supplemental Nutrition Assistance Program (SNAP) approach, according to state officials, legislative organizations and policy groups monitoring implementation of the changes.
The planning effort follows federal legislation enacted in 2025 that alters the long-standing financing structure of SNAP, the nation’s largest food-assistance program. Under the changes, states will assume a larger share of administrative costs beginning in fiscal year 2027, while some states could also be required to contribute toward benefit costs starting in fiscal year 2028, depending on their payment error rates, according to the National Conference of State Legislatures and other organizations tracking the law’s implementation.
For decades, the federal government funded all SNAP benefits while sharing administrative expenses with states. The new law shifts additional responsibilities to state governments, prompting budget offices and human services agencies to review spending plans, staffing needs and technology investments ahead of the implementation deadlines.
“Education is absolutely going to be needed—and quickly, given the time frame,” Lauren Kallins, senior legislative director for state-federal affairs at the National Conference of State Legislatures, said in comments cited by The Pew Charitable Trusts.
According to The Pew Charitable Trusts, state lawmakers entering 2026 legislative sessions are confronting questions about how to finance the additional obligations while balancing other budget priorities. The organization reported that human services agencies, food banks and local governments have raised concerns about the potential fiscal impact of the changes.
Supporters of the federal changes have argued that linking some state costs to payment error rates will encourage improved program administration and accountability. Congressional supporters of the revisions have said the measures are intended to strengthen oversight and reduce improper payments within the program.
State officials and governors’ organizations, however, have urged federal policymakers to consider adjustments to the implementation schedule. In a January statement, the National Governors Association and several state and local government groups warned that the changes could significantly increase state expenditures if no relief is provided.
The National Conference of State Legislatures said the law increases states’ share of SNAP administrative costs beginning in fiscal year 2027 and introduces a state benefit-cost contribution system tied to payment error rates starting in fiscal year 2028.
State legislatures are expected to continue reviewing reserve funds, supplemental appropriations and administrative reforms during upcoming budget cycles. Details of individual state contingency plans vary, and in several states budget discussions remain ongoing, according to legislative and policy organizations tracking the implementation process.
