Senator Elizabeth Warren has warned that states are about to face an “existential crisis” as a major shift in how the federal government funds the Supplemental Nutrition Assistance Program (SNAP) takes effect. The Massachusetts Democrat wrote on X on Wednesday that states should not be forced to choose between funding SNAP and other services. Her warning refers to an imminent reduction in the federal government's contribution toward administering SNAP, from 50 percent of administrative costs to 25 percent.
"States are about to face an 'existential crisis' as the federal government slashes its share of SNAP funding from 50% to 25%," Warren wrote. "Families shouldn't have to choose between food and rent. States shouldn't have to choose between SNAP and schools.
Congress must reverse these cuts." That change is only the first of two major SNAP funding changes contained in President Donald Trump's One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025. Beginning next year, most states could also be required, for the first time, to pay a portion of the food benefits themselves, potentially moving billions of dollars in annual spending from Washington onto state budgets. The changes form part of much broader reductions to federal SNAP spending.
The nonpartisan Congressional Budget Office (CBO) projects that provisions in the 2025 reconciliation law, including recently expanded work requirements, benefit changes and the new state funding requirements, will reduce federal SNAP spending by some $211 billion through 2035. Newsweek reached out to the U.S. Department of Agriculture (USDA) and Warren for comment via email.
Until now, the federal government has paid 100 percent of SNAP food benefits, while states and Washington have split most program administration costs 50-50. But the OBBBA changes both arrangements. Starting October 1, 2026, the beginning of fiscal year 2027, the federal government will pay just 25 percent of most state SNAP administrative expenses, leaving states responsible for 75 percent.
The USDA estimates the change will shift about $16.9 billion in administrative spending to states between FY2027 and FY2031, or about $3.4 billion a year on average. Then, generally beginning October 1, 2027, states will have to contribute toward SNAP benefits themselves if their payment error rate, which is the percentage of benefit dollars improperly overpaid or underpaid, is at least 6 percent. States below six percent will pay nothing toward benefits.
Extract — continue reading at the source.
