Published July 11, 2025

The far-reaching consequences of President Trump’s newly enacted Budget Reconciliation Bill (H.R. 1) —passed by Republicans in Congress and signed by President Trump on July 4, 2025 — will be felt in every corner of the country. Although the fallout will be local, the design is federal. This is not accidental; it is a deliberate strategy to make essential programs like the Supplemental Nutrition Assistance Program (SNAP) more expensive and politically unsustainable at the state level. By forcing states to shoulder greater expenses and administer these cuts, Republican federal lawmakers deflect responsibility for weakening the nation’s most effective anti-hunger program. Despite strong opposition from Senate and House Democrats — joined by governors, advocates, and constituents — Republicans advanced a bill that prioritizes tax breaks for the wealthy while gutting support for families with low incomes and placing new costs on states. 

SNAP is the first line of defense against hunger and economic hardship. It helps more than 42 million Americans afford food and reduces poverty, especially during downturns and disasters. Its positive impact is particularly significant in areas with high poverty and food insecurity rates — including rural counties, small towns, and low-income urban neighborhoods. SNAP supports older adults, people with disabilities, working parents, and part-time workers who are unable to meet strict work-hour thresholds due to caregiving responsibilities, lack of child care, or limited job opportunities. 

Yet, the new law slashes benefits, expands harsh time limits and work requirements, and eliminates longstanding eligibility for groups, including refugees, asylees, and other legally present immigrants with humanitarian protections. These changes will increase hunger, push more families into deep poverty, and shift costs onto already strained state budgets. 

Increases in Administrative Costs, Section 10106 

Effective Date: Beginning in Fiscal Year 2027, (October 1, 2026)   

Historically, there has been a federal and state partnership with SNAP agencies responsible for 50 percent of the costs of administering SNAP, and the federal government reimbursing 50 percent of state administrative costs.  

Beginning in FY 2027, the federal government will reduce its share of SNAP administrative costs from 50 percent to 25 percent, requiring states to shoulder the remaining 75 percent. This significant cost shift will strain already tight state budgets, reduce the ability of agencies to manage the program effectively, and likely result in service delays and staffing reductions.  

Further, in ten states — California, Colorado, Minnesota, New Jersey, New York, North Carolina, North Dakota, Ohio, Virginia, and Wisconsin — county governments administer SNAP, covering 34.3 percent of all participants (14.6 million individuals).  

Counties in these states collectively invest an estimated $1.7 billion annually in local funding for SNAP administration. In New York, North Carolina, and New Jersey, counties must cover the full 50 percent non-federal match. In California, Colorado, Minnesota, Ohio, Virginia, and Wisconsin, the state shares this obligation with counties. Only North Dakota fully funds the non-federal match at the state level. 

Historical Change in SNAP Cost-Sharing 10105 

Effective Date: Beginning in Fiscal Year 2028, (October 1 2027)   

One of the most harmful changes in the bill is the shift in SNAP’s funding structure, requiring states — for the first time — to pay a portion of food benefit costs, not just administrative expenses. This breaks the long-standing model in which the federal government covered 100 percent of SNAP food benefits. Starting in FY 2028, state contributions will be tied to their payment error rates — a metric that is often unstable and misleading. Based on FY 2024 data, 44 states would face new financial burdens under this change. See further analysis here.  

The bill requires states to contribute to the benefit cost based on their SNAP payment error rate: 

  • Error rate below 6 percent: 0 percent match. This 0 percent match, however, is not a guarantee; most states have previously approached or exceeded the 6 percent threshold, meaning even a slight increase in error rates could trigger new financial obligations.  
  • 6 percent–8 percent error rate: 5 percent match.  
  • 8 percent–10 percent error rate: 10 percent match.  
  • Over 10 percent error rate: 15 percent match.   

These rates will be based on the most recent available data, meaning FY 2026 data will dictate FY 2028 cost-sharing, barring one exemption explained below. Many states currently on the margin could easily fall into higher-cost brackets over time, especially as administrative costs rise and federal support wanes.  

If a state’s SNAP payment error rate in fiscal year 2025, when multiplied by 1.5, is 20 percent or higher, the state may delay the start of cost-sharing until fiscal year 2029. Likewise, if the state meets this threshold in fiscal year 2026, it may delay implementation until fiscal year 2030. However, this delay is a one-time option; states can only take advantage of it once, based on either FY 2025 or FY 2026 data, not both. This provision perversely incentivizes states to maintain higher error rates to postpone their cost-share obligations.   

In FY 2028, based on FY 2024 data, impacted states could include Alaska, Florida, Georgia, Maryland, Massachusetts, New Jersey, New Mexico, New York, Oregon, and the District of Columbia.   

Expanded Time Limits, i.e., Work Requirements 10102 

Effective Date: Effective upon bill passage, however, USDA has to issue guidance to the states on how to administer these changes.   

In 1996, Congress established a three-month time limit on SNAP benefits for certain adults through the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). The rule restricts adults ages 18 to 49 to just three months of SNAP benefits in a three-year period unless they meet strict work requirements or qualify for an exemption. These time limits were suspended nationwide during the Great Recession and the COVID-19 pandemic due to widespread hardship. Historically, the time limit has never applied to parents or caregivers of children, nor adults over age 49. 

In 2023, the Fiscal Responsibility Act (FRA) expanded the time limit to include adults ages 50 to 54 and introduced exemptions for veterans, individuals experiencing homelessness, and former foster youth under age 24. These changes were set to sunset on October 1, 2030. 

Trump’s and Republicans’ newly passed legislation goes much further, expanding time limits for a significantly broader group, including: 

  • adults up to age 65 
  • parents, grandparents, or caregivers of children ages 14 or older 
  • veterans 
  • adults experiencing homelessness, including homeless families with children 14 or older 
  • former foster youth 
  • some Native American adults (with limited exemptions) 

This expansion dramatically increases the number of people at risk of losing SNAP for failing to meet a 20-hour-per-week paid work requirement, even if they are already serving as unpaid caregivers or face structural employment barriers. Losing food assistance does not reduce a household’s need for food; it simply increases hardship.  

Research consistently shows that time limits do not increase employment. Instead, they often lead to benefit loss among eligible individuals due to complex paperwork, inflexible rules, and administrative burdens. 

Since the 1996 PRWORA, time limits have contributed to rising rates of deep poverty among childless adults, demonstrating that these policies penalize rather than empower. The consequences will be particularly severe in rural areas, where poverty rates are already high, especially among part-time workers. In 2023, rural part-time workers were more likely than their urban counterparts to be among the working poor — often due to caregiving responsibilities, not economic conditions. At the same time, access to child care continues to decline: Between 2017 and 2022, rural areas saw a steady drop in private child care providers, especially in small cities and rural-adjacent communities. Without accessible child care, meeting work requirements becomes even harder, putting rural families at greater risk of losing essential food support. 

Restrictions on Noncitizen Eligibility 10108 

Effective Date: Effective upon bill passage, however, USDA has to issue guidance to the states on how to administer these changes   

Most low-income, legally present immigrants have long been eligible for federal SNAP benefits. However, the 1996 Welfare Reform Law restricted eligibility to “qualified” immigrants — those who are Lawful Permanent Residents (LPRs) or have specific humanitarian protections. This includes refugees, individuals granted asylum, immigrant survivors of domestic violence (VAWA petitioners), victims of labor or sex trafficking, and certain Cuban or Haitian nationals with protected statuses. Under federal law, many LPRs, parolees, and VAWA petitioners must wait five years before becoming eligible for SNAP. The 2002 Farm Bill provided limited exemptions, allowing LPR children and severely disabled LPR adults to bypass the five-year waiting period. 

Undocumented immigrants have never been eligible for SNAP, nor have those with Temporary Protected Status (TPS), Deferred Action, or other non-qualified statuses. 

Under the Trump administration and Republicans’ recent bill, SNAP eligibility is now restricted even further. Effective immediately, immigrants are barred from receiving SNAP unless they are Lawful Permanent Residents, certain Cuban or Haitian entrants, or citizens of the Compact of Free Association (COFA) nations. Documented immigrants who had long been recognized as “qualified” for federal benefits — including refugees, asylees, and trafficking survivors — have lost their eligibility. 

This change represents a stark and unprecedented departure from America’s long-standing, bipartisan commitment to supporting individuals fleeing violence, persecution, and human trafficking. 

Thrifty Food Plan (TFP) Limits  10101 

Effective Date: Effective upon bill passage 

In the 2018 Farm Bill, Congress directed the U.S. Department of Agriculture (USDA) to re-evaluate the Thrifty Food Plan (TFP), which serves as the basis for determining SNAP benefit levels. In 2021, USDA completed the first comprehensive update to the TFP in nearly 50 years, aligning it with current nutrition science, food prices, and the realities of modern food preparation. As a result, average SNAP benefits increased by approximately $1.40 per person per day, still only coming to about $6 a day for individuals. 

However, under the new Trump policy, the TFP can now only be re-evaluated once every five years and must remain cost-neutral. This means future updates cannot result in increased benefit levels, even if food prices rise significantly. These limitations will make it harder for SNAP to keep pace with inflation and real food costs, gradually eroding families’ purchasing power and increasing food insecurity for millions of participants. 

Narrows State Option to Calculate Utilities 10103 

Effective Date: Effective upon bill passage, however, USDA has to issue guidance to the states on how to administer these changes   

Previously, federal SNAP law allowed certain utility costs to be factored into benefit calculations using a standardized method known as the Standard Utility Allowance (SUA). Many states use an existing option to simplify this process by automatically granting the SUA to households that receive fuel assistance through the Low-Income Home Energy Assistance Program (LIHEAP). 

However, effective immediately upon passage of the new law, receiving a LIHEAP fuel assistance payment no longer automatically qualifies a household for a higher SUA — unless the household includes an older adult or a person with disability. This change excludes many low-wage families from utility-related deductions in the SNAP formula, even if they face high energy costs. The impact will be particularly severe in areas with high living expenses or extreme weather, where utility burdens are already disproportionately heavy. 

Narrows State Option to Calculate Utilities 10104 

Effective Date: Effective upon bill passage, however, USDA has to issue guidance to the states on how to administer these changes   

In 2024, following a thorough regulatory review and robust public input, the U.S. Department of Agriculture (USDA) updated SNAP rules to allow internet expenses to be included in the Standard Utility Allowance (SUA). This change recognized the essential role of internet access in modern life — particularly for households with low income seeking employment, attending school, or participating in job training programs. However, the newly enacted law reverses this regulatory improvement. It prohibits states from including internet costs in the SUA, despite growing evidence that digital access is a basic necessity for economic mobility and household stability. 

Defunds SNAP Nutrition Education 10107 

Effective Date: Fiscal Year 2026 (October  1, 2025) 

Eliminates funding for the Nutrition Education and obesity prevention grant program SNAP-Ed.