Monumental SNAP changes shift significant costs on to state
Along with increased costs to the state, federal spending on SNAP will decrease by about $186 billion over the next 10 years
Monumental changes to SNAP are ahead as portions of the “One Big Beautiful Bill,” signed into law on July 4, come into effect over the next couple of years.
The nonpartisan Congressional Budget Office estimates the legislation will reduce federal spending on SNAP by approximately $186 billion over the next 10 years. The CBO estimates that new rules will also reduce overall SNAP participation by about 2.4 million people per month. Nationwide, approximately 42 million people use SNAP.
Other changes include new work requirements and eligibility restrictions, some of which are already in effect.
As of Nov. 1, more SNAP recipients are subject to work requirements and time limits. Federal law now mandates that recipients will be limited to three months of benefits in a three-year period unless they meet work requirements. Those requirements include working, volunteering or participating in training or education programs for at least 20 hours a week and reporting that work requirements are being met.
Recipients who are 18-64 years old, do not live with a dependent and/or child under age 14 and do not have a mental or physical condition preventing them from working will have to follow those new work rules. Previously, the age range was 18-54 years, and any dependent and/or child had to be 18 or younger.
There will be an estimated $135 million per year in cost shifts and lost federal funds for Minnesota. In Minnesota, approximately 440,000 people each month receive SNAP benefits. Approximately 36% of recipients are children, 20% are adults with children, 18% are seniors and 14% are adults with a disability.
The state is also expected to pay for a portion of its SNAP benefits in relation to its payment error rate. Currently, the federal government pays for the entirety of SNAP. Those rates are as follows:
Payment error below 6%: 0% matching funds
Payment error rate 6%-7.99%: 5% matching funds
Payment error rate 8%-9.99%: 10% matching funds
Payment error rate 10% or higher: 15% matching
This goes into effect Oct. 1, 2027, and based on 2024 data, the state would not need to pay 10% matching funds, or about $86 million. The state is currently working to lower the error rate.
The state’s administrative costs will also increase effective Oct. 1, 2026, as the federal reimbursement rate that states receive for administering SNAP drops from 50% to 25%. That amounts to an estimated loss of about $39 million annually in federal reimbursements to administer SNAP.
For up-to-date information on SNAP, visit the Minnesota Department of Children, Youth, and Families website.