How Reconciliation (H.R.1) Shifts SNAP Costs to States

H.R. 1, the final reconciliation package signed into law on July 4, 2025, makes sweeping cuts to SNAP. It does this in large part by shifting an unprecedented share of its costs to the states.

States will be forced to pay 75 percent of administrative costs, up from the current 50 percent, starting in FY 2027.

And, for the first time ever, many states will be forced to pay for a share of SNAP benefit costs. While states with the lowest payment error rates would not have to contribute to benefit costs, as many as 36 states and territories will have to pay between 5-15% of benefit costs starting October 1, 2027 (FY 2028) based on the recently announced FY 2025 SNAP Payment Error Rates.

This resource outlines the projected impact by state, using FY 2025 SNAP payment error rates, FY 2023 administrative costs and FY 2025 benefit totals to demonstrate the potential increase in cost burden in FY 2028. For FY 2028 only, states may use either their FY 2025 or FY 2026 payment error rate to determine their annual benefit cost share, so the number in the chart represents a maximum. The actual state responsibility in FY 2028 will also depend on SNAP benefit levels at that time and participation throughout the fiscal year.

This resource also includes several graphics depicting state SNAP FY 2025 Payment Error Rates and maximum FY 2028 benefit cost share percentage.  

Note: This is a No Kid Hungry-branded version of this resource. For a Share Our Strength-branded version, see: https://bestpractices.nokidhungry.org/index.php/resource/reconciliation-provisions-shifting-snap-costs-states. 

For a full summary of SNAP provision in the final reconciliation bill, see https://bestpractices.nokidhungry.org/resource/summary-changes-snap-reconciliation-hr1.